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F ed er a l R eser ve Ba n k





Circular No. 67-80
April 19, 1967


To All Banking Institutions and Others Concerned
in the Eleventh Federal Reserve District:

Your attention is invited to the following statement giving details of two issues of Treasury bills:
T h e T reasury D epartm ent, by th is public notice, invites tenders for tw o series of T reasury bills to th e aggregate am ount
of $1,400,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing A pril 30, 1967, in th e am ount of
$1,401,513,000, as follows:
275-DAY B IL L S (to m atu rity d a te ) to be issued M ay 1, 1967, in th e am ount of $500,000,000, or th ere­
abouts, representing an additional am ount of bills dated Jan u ary 31, 1967, and to m ature Jan u ary 31, 1968,
originally issued in th e am ount of $900,967,000, th e additional and original bills to be freely interchangeable.
366-DAY B IL L S for $900,000,000, or thereabouts, to be dated A pril 30, 1967, and to m ature A pril 30, 1968.
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 aturity th e ir face am ount will be payable w ithout interest. T hey w ill 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 alu e).
T enders will be received a t F ederal R eserve B anks and B ranches up to th e closing hour, o n e-thirty p.m ., E astern
Standard T im e, T uesday, A pril 25, 1967. T enders will not be received a t th e T reasury D epartm ent, W ashington.
E ach tender m ust be for an even m ultiple of $1,000, and in the case of com petitive tenders th e price offered m ust be expressed
on the basis of 100, w ith not more th an th ree decim als, e.g., 99.925. Fractions m ay n o t be used. (N otw ithstanding th e fact th a t
th e one-year bills will run for 366-days, th e discount rate w ill be com puted on a bank discount basis of 360-days, as is currently
th e practice on all issues of T reasury bills.) It is urged th a t tenders be m ade on th e p rinted form s and forw arded in th e special
envelopes which will be supplied by F ederal R eserve B anks or B ranches on application therefor.
B anking in stitutions generally m ay subm it tenders for account of custom ers provided th e nam es of th e custom ers are
set forth in such tenders. O thers than banking institutions will not be p erm itted to subm it tenders except for th e ir own account.
T enders will be received w ithout deposit from incorporated banks and tru st com panies and from responsible and recognized
dealers in investm ent securities. T enders from others m ust be accom panied by paym ent of 2 percent of the face am ount of
T reasury bills applied for, unless th e tenders are accom panied by an express guaranty of paym ent by an incorporated bank or
tru st com pany.
Im m ediately a fte r th e closing hour, tenders will be opened a t th e F ederal R eserve B anks and B ranches, following w hich
public announcem ent will be m ade by th e T reasury D ep artm en t of th e am ount and price range of accepted bids. Those
subm itting tenders w ill be advised of th e acceptance or rejection thereof. T h e Secretary of th e T reasury expressly reserves th e
rig h t to accept or reject any or all tenders, in whole or in p art, and his action in any such respect shall be final. S ubject to
these reservations, noncom petitive tenders for each issue for $200,000 or less w ithout stated price from any one bidder will be
accepted in full a t th e average price (in th ree decim als) of accepted com petitive bids for th e respective issues. S ettlem ent for
accepted tenders in accordance w ith th e bids m ust be m ade or com pleted a t th e F ederal R eserve B ank on M ay 1, 1967, in
cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing A pril 30, 1967. Cash and
exchange tenders will receive equal treatm en t. Cash adjustm ents will be m ade for differences betw een th e p ar value of m aturing
b ills accepted in exchange and th e issue price of th e new bills.
T h e incom e derived from T reasury bills, w hether in terest or gain from th e sale or other disposition of th e bills, does not
have any exem ption, as such, and loss from th e sale or other disposition of T reasury bills does n ot have any special treatm ent,
as such, under the In tern al R evenue Code of 1954. T h e bills are subject to estate, inheritance, gift or other excise taxes, w hether
F ederal or S tate, b u t are exem pt from all taxation now or h ereafter im posed on th e principal or in terest thereof by any S tate,
or any of th e possessions of th e U nited States, or by any local taxing authority. F or purposes of taxation th e am ount of discount
a t which T reasury bills are originally sold by th e U nited S tates is considered to be interest. U nder Sections 454 (b ) and 1221 (5 )
of th e Internal R evenue Code of 1954 th e am ount of discount a t w hich bills issued hereunder are sold is n ot considered to
accrue until such bills are sold, redeem ed or otherw ise disposed of, and such bills are excluded from consideration as capital
assets. A ccordingly, th e owner of T reasury bills (o th er th an life insurance com panies) issued hereunder need include in his
incom e tax retu rn only th e difference betw een th e price paid for such bills, w hether on original issue or on subsequent purchase,
and the am ount actually received eith er upon sale or redem ption a t m atu rity during th e taxable year for w hich th e retu rn is
m ade, as ordinary gain or loss.
T reasury D ep artm en t C ircular No. 418 (cu rren t revision) and th is notice, prescribe th e tw in s of th e T reasury bills and
govern th e conditions of th e ir issue. Copies of th e circular m ay be obtained from any F ederal R eserve B ank or B ranch.

In accordance with the above announcement, tenders will be received at this bank and its branches at El Paso,
Houston and San Antonio, up to twelve-thirty p.m.. Central Standard Time, Tuesday, April 25, 1967. Tenders may
not be entered by telephone.

Yours very truly,
Watrous H. Irons
(See reverse side for tender form)

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


Dated April 30, 1967

Maturing April 30, 1968

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The____________________________ Branch
£1 Paso 79999

Houston 77001


San Antonio 78206

(D ata)

Pursuant to the provisions of Treasury Departm ent 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 a t the rate indicated.

NONCOMPETITIVE TENDER $______________________________ NOT TO EXCEED

$ 2 0 0 ,0 0 0

Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average
price (in three decimals) of accepted competitive bids.
Prices should be expressed on the basis of
@ --------------$-----------------------------------

COMPETITIVE TENDERS < $________________ ^
@________ $_____________________
I $__________________@ __________ $______________________

n.ot *?0T? ^
tJP0’ de ci m a l plac es ,
e. g., 99.925. Fractions
must not be used.

Denominations Desired
Number of

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

Maturity Value

(a) $
@ $

5,000 $.

(fib $

10,000 $.

(a) $


1,000 $.

50,000 $.


B y m a tu rin g bills
held b y ______________________
P a y m e n t to b e m ad e by.


C h a rg e o u r re s e rv e a c co u n t on p a y m e n t
d a te
| | D r a f t enclosed (E ffec tu a l d elivery o f enclosed


(5) $


(5) $ 500,000 $.

draft shall be on latest day which will permit present­
ment in order to obtain irrevocably collected funds on
payment date)

@ $1,000,000 $.
D eliv ery In s tru c tio n s :

(Subscriber’s full name or corporate title)

H old in C u sto d y A ccount— M em ber
b a n k s fo r ow n a c co u n t only



P led g e to secu re T re a s u ry T a x an d

g y ______________________________________


S h ip to ____________________________

L oan

A ccou n t

(Authorized official signature and title)


(For the account of, if tender is for another subscriber)

1. No tender for less than $1,000 will be considered and each tender m ust be fo r 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 m atters should not be enclosed. Envelopes for subm itting tenders may be obtained from this bank
or appropriate branch.
3. 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 tru st companies or responsible and recognized dealers in invest­
ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (m aturity 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 tru st company.
6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury is
m aterial, the tender may be disregarded.

( e r v r ef ra n u c m n )
S e ees o n o n e e t

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