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Circular No. 67-45
M arch 1, 1967

To All Banking Institutions a n d Others Concerned
in th e Eleventh Federal Reserve District:
Your attention is invited to the fo llo w in g sta te m e n t giving details of tw o is sues of Treasury bills:
T h e T reasury D epartm ent, by this public notice, invites tenders for two series of T reasury bills to the aggregate am ount
of $2,300,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing M arch 9, 1967, in the am ount of
$2,305,029,000, as follows:
91-DAY B IL L S (to m aturity d ate) to be issued M arch 9, 1967, in the am ount of $1,300,000,000, or th e re­
abouts, representing an additional am ount of bills dated Decem ber 8, 1966, and to m ature June 8, 1967,
originally issued in the am ount of $1,000,599,000, the additional and original bills to be freely interchangeable.
182-DAY B IL L S for $1,000,000,000, or thereabouts to be dated M arch 9, 1967, and to m ature Septem ber 7,
T h e bills of both series will be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter
provided, and a t m atu rity th eir face am ount will be payable w ithout interest. T hey will be issued in bearer form only, and in
denom inations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m atu rity v alue).
T enders will be received a t Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., E astern
S tandard Tim e, Monday, M arch 6, 1967. Tenders will not be received a t the T reasury D epartm ent, W ashington. E ach
ten d er m ust be for an even m ultiple of $1,000, and in the case of com petitive tenders the price offered m ust be expressed on
th e basis of 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. I t is urged th a t tenders be made
on th e printed forms and forwarded in the special envelopes which will be supplied by Federal R eserve Banks or Branches
on application therefor.
B anking institutions generally m ay subm it tenders for account of customers provided the names of th e customers are
set forth in such tenders. Others than banking institutions will not be perm itted to subm it tenders except for their own account.
T enders will be received w ithout deposit from incorporated banks and tru st companies and from responsible and recognized
dealers in investm ent securities. T enders from others m ust be accompanied by paym ent of 2 percent of the face am ount of
T reasury bills applied for, unless the tenders are accompanied by an express guaranty of paym ent by an incorporated bank or
tru st company.
Im m ediately after the closing hour, tenders will be opened a t the Federal Reserve Banks and Branches, following which
public announcem ent will be m ade by the T reasury D epartm ent of the am ount and price range of accepted bids. Those
subm itting tenders will be advised of the acceptance or rejection thereof. T he Secretary of the T reasury expressly reserves the
right to accept or reject any or all tenders, in whole or in part, and his action in any such respect shall be final. Subject to
these reservations, noncom petitive tenders for each issue for $200,000 or less w ithout stated price from any one bidder wiil be
accepted in full a t the average price (in three decimals) of accepted com petitive bids for the respective issues. Settlem ent for
accepted tenders in accordance w ith th e bids m ust be m ade or completed a t the F ederal Reserve B ank on M arch 9, 1967, in
cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing M arch 9, 1967. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between th e p ar value of m atur­
ing bills accepted in exchange and th e issue price of th e new bills.
T he income derived from T reasury bills, w hether interest or gain from th e sale or other disposition of th e bills, does not
have any exemption, as such, and loss from the sale or other disposition of T reasury bills does not have any special treatm ent,
as such, under the Internal R evenue Code of 1954. T he bills are subject to estate, inheritance, gift or other excise taxes, w hether
Federal or State, b u t are exem pt from all taxation now or hereafter imposed on the principal or interest thereof by any State,
or any of th e possessions of the U nited States, or by any local taxing authority. For purposes of taxation the am ount of discount
at which T reasury bills are originally sold by the U nited States is considered to be interest. U nder Sections 454 (b ) and
1221 (5 ) of th e Internal Revenue Code of 1954 the am ount of discount a t which bills issued hereunder are sold is not con­
sidered to accrue until such bills are sold, redeem ed or otherwise disposed of, and such bills are excluded from consideration as
capital assets. Accordingly, the owner of T reasury bills (other than life insurance com panies) issued hereunder need include
in his income tax retu rn only the difference between th e price paid for such bills, w hether on original issue or on subsequent
purchase, and the am ount actually received either upon sale or redem ption a t m aturity during th e taxable year for which the
retu rn is made, as ordinary gain or loss.
T reasury D ep artm en t Circular No. 418 (cu rrent revision) and this notice, prescribe the terms of th e T reasury bills and
govern th e conditions of th eir issue. Copies of th e circular may be obtained from any Federal Reserve B ank or Branch.

In accord ance with the a b o v e a n n o u n c em en t, tenders will b e received at this b an k a n d its branches at El Paso,
Houston a n d San Antonio, up to twelve-thirty p.m., Central Standard Time, M o n d a y , March 6, 1967. Tenders m ay
not b e entered by t e le p h o n e .
Yours very truly,
Watrous H. Irons

Amount, R ange and A pproxim ate Yield of Accepted Tenders
182-Day Bills
91-Day Bills
D ue August 31, 1967
D ue Ju n e 1, 1967
T otal Applied F or--------________________$2,284,638,000
$1,304,520,000________________________________ T otal Accepted________________$1,004,783,000
P rice
98.858____________ 4.518% _________________________ H igh97.715___________ 4.520%
98.85 2____________ 4.542% _________________________ Xow__
-97.706___________ 4.538%
98.85 3____________ 4.538% ( 1 ) ____________________ Average____________________ 97.708____________ 4.534% (1 )
( 1 ) These ra te s a re on a b an k discount basis. T h e equ iv alent coupon issue yields are 4 .6 5 % for th e 91-day bills, a n d 4 .7 0 % for
th e 182-day bills.

(S ee reverse side for tender form)

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (


Dated December 8,1966

M aturing June 8, 1967

To: Federal Reserve Bank, Station K, Dallas, Texas
or —
The_---------------------------------------------- Branch
El Paso 79999

Houston 77001


San Antonio 78206

(D ate)

Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and the provisions of the
public announcement issued by the Treasury Department, the undersigned offers to purchase Treasury bills in the amount
shown below, and agrees to pay for the amount allotted, on or before the issue date, by the method and at the rate indicated.

NONCOMPETITIVE TENDER $_____________________________ NOT TO EXCEED $200,000
Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average
price (in three decimals) of accepted competitive bids.
Prices should be ex­
pressed on the basis of

COMPETITIVE TENDERS /<! _______________ @________$______________________ t h S e ^ d e d m a T J l a ^ s

$ ...



e. g., 99.925. Fractions
must not be used.

$ ............ -

Denominations Desired
N u m b er of

Payment for this issue of bills cannot be made
by credit to Treasury Tax and Loan Account.

M a tu rity V alu e

________ @ $

1,000 $_________________

______ @ $

5,000 $______________


@ $
@ $

10,000 $
50,000 $______________


By maturing bills
held by_
Paym ent to be made by.

@ $ 100,000 $______________


Charge our reserve account on paym ent


D raft enclosed


o 0 0 ,0 0 0 $




q»-| o a q

( E f f e c t u a l d e liv e r y o f enclosed
d r a f t sh all be on la te st day w hich will p e rm it p re s e n tm e n t in o rd e r to o b ta in irrevocably collected fu n d s on
p a y m e n t date)


Delivery Instructions:

Pledge to secure Treasury Tax and


Ship to_________________________

(S u b scriber’s fu ll n am e o r co rp o rate title)

Hold in Custody Account—Member
banks for own account only
L oan

(A ddress)

g y ___________________________________

A cC O U nt

(A uthorized official s ig n a tu re and title)

(F o r th e a cco u nt of, if te n d e r is fo r a n o th e r su bscriber)

(A ddress)


1. No tender for less than $1,000 will be considered and each tender must be for an amount in multiples of $1,000 (m aturity
2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent of the
United States, with notation on the envelope reading “TENDER FOR TREASURY BILLS”. Since envelopes received
with this legend will not be opened until after the closing time specified in the public announcement, communications
relating to other matters should not be enclosed. Envelopes for submitting tenders may be obtained from this bank
or appropriate branch.
8. Any qualified or conditional tender will be rejected.
4. If a corporation makes the tender, the form should be signed by an officer of the corporation authorized to make the
tender and the signing of the form by an officer of the corporation will be construed as a representation by him that he
has been so_ authorized. If the tender is made by a partnership it should be signed by a member of the firm, who
should sign in the form “............................................................ a copartnership, by................................................................................
a member of the firm”.
5. Tenders from those other than incorporated banks and trust companies or responsible and recognized dealers in in vest­
ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity value)
of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment by an
incorporated bank or trust company.
6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury is
material, the tender may be disregarded.
(See reverse for announcement)

Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102