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F ederal




Da l la s



Circular No. 67-103
May 17, 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 reasu ry D ep artm en t, b y th is public notice, invites ten d ers 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 M ay 31, 1967, in th e am ount of
$1,401,990,000, as follows:
274-DAY B IL L S (to m a tu rity d a te ) to b e issued M ay 31, 1967, in th e am ount of $500,000,000, or th ere­
abouts, representing an additional am ount of bills dated F eb ru ary 28, 1967, and to m atu re F eb ru ary 29, 1968,
originally issued in th e am ount of $901,029,000, th e additional and original bills to b e freely interchangeable.
366-DAY B IL L S for $900,000,000, or thereabouts, to be d ated M ay 31, 1967, and to m ature M ay 31, 1968.
T h e bills of b o th series w ill b e issued on a discount basis u nder com petitive and noncom petitive bidding as hereinafter
provided, and a t m a tu rity th e ir face am ount w ill b e payable w ithout in terest. T h ey w ill b e issued in b earer 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 w ill b e received a t F ed eral R eserve B anks and B ranches u p to th e closing hour, one-thirty p.m ., E astern
D aylight Saving T im e, W ednesday, M ay 24, 1967. T enders will n ot b e received a t th e T reasury D epartm ent, W ashington.
E ach ten d er m ust b e fo r an even m ultip le of $1,000, and in th e case of com petitive tenders th e price offered m ust be expressed
on th e basis of 100, w ith n o t m ore th a n th re e decim als, e.g.» 99.925. F ractions m ay n o t b e used. (N otw ithstanding th e fact th a t
th e one-year bills w ill ru n fo r 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.) I t is urged th a t ten d ers b e m ade on th e p rin ted form s and forw arded in th e special
envelopes w hich w ill be supplied by F ed eral R eserve B anks or B ranches on application therefor.
B anking in stitu tio n s generally m ay subm it ten d ers for account of custom ers provided th e nam es of th e custom ers are
set fo rth in such tenders. O thers th a n banking institu tio n s w ill n ot b e p erm itted to subm it tenders except fo r th e ir own account.
T enders w ill b e received w ithout deposit from incorporated banks and tru st com panies and from responsible an d recognized
dealers in investm ent securities. T enders from others m u st b e accom panied by paym ent of 2 p ercen t of th e 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, ten d ers w ill b e opened a t th e F ed eral R eserve B anks and B ranches, follow ing which
public announcem ent w ill be m ade by th e T reasu ry D ep artm en t of th e am ount and price range of accepted bids. T hose
subm itting tenders w ill b e advised of th e acceptance or rejection thereof. T h e Secretary of th e T reasu ry expressly reserves th e
rig h t to accept or rejec t any or all tenders, in whole or in p a rt, and his action in any such respect shall b e final. S ubject to
these reservations, noncom petitive tenders for each issue fo r $200,000 or less w ithout stated price from any one b idder w ill be
accepted in full a t th e average price (in th re e decim als) of accepted com petitive bids fo r th e respective issues. S ettlem ent for
accepted tenders in accordance w ith th e bids m ust b e m ade or com pleted a t th e F ed eral R eserve B ank on M ay 31, 1967, in
cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing M ay 31, 1967. Cash and
exchange tenders w ill receive equal treatm en t. Cash adjustm ents w ill b e m ade for differences betw een th e p a r value of m aturing
bills accepted in exchange and th e issue price of th e new bills.
T h e incom e derived from T reasu ry 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 Bale o r o ther disposition of T reasury bills does n o t have any special treatm en t,
as such, under th e In tern a l R evenue Code of 1954. T h e b ills are subject to estate, inheritance, g ift or oth er excise taxes, w hether
F ederal or S tate, b u t are exem pt from all taxation now o r h ereafter im posed on th e p rincipal o r in terest th ereof by any S tate,
or any of th e possessions of th e U n ited S tates, or by any local taxing authority. F o r purposes of taxation th e am ount of discount
a t w hich T reasury b ills are originally sold by th e U n ited S tates is considered to b e in terest. U nder Sections 454 (b ) and 1221 (5 )
of th e In tern al R evenue Code of 1954 th e am ount of discount a t w hich bills issued hereunder are sold is n o t considered to
accrue u n til such b ills 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 reasu ry bills (o th er th a n life insurance com panies) issued hereunder need include in his
incom e tax re tu rn only th e difference betw een th e p rice paid for such bills, w hether on original issue o r on subsequent purchase,
and th e am ount actually received eith e r upon sale o r 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 N o. 418 (c u rren t revision) and th is notice, prescribe th e term s of th e T reasu ry bills and
govern th e conditions of th e ir issue. C opies of th e circu lar m ay b e obtained from any F ederal R eserve B ank o r 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 Daylight Saving Time, Wednesday, May 24, 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 May 31,1967

Maturing May 31,1968

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
El Paso 79999

Houston 77001


San Antonio 78206


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 exP
I v ---------------------------- @ ---------------* ---------------------------------- pressed on the basis of

— .......




IpO, with not more than

three decimal places,

/ $ __________________ @ _________ $______________________
e. g., 99.926. Fractions
must not be used.
Denominations Desired
Number of

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

Maturity Value

<> $

1,000 $.
5,000 $-

<> $
(5) $ 10,000
<> $ 50,000
<> $ 100,000
? 500,000
.< $1:,000,000





Delivery Instructions:
□ Hold in Custody Account—Member
banks for own account only
□ Pledge to secure Treasury Tax and
Loan Account
□ Ship to-----------------------------------


By maturing bills
held by__________________________
Payment to be made by.
Charge our reserve account on payment
D raft enclosed (E ffe c tu a l d eliv ery o f en closed
draft shall be on latest day which w ill permit present­
ment in order to obtain irrevocably collected funds on
payment date)

(Subscriber’s full name or corporate title)


(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 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 A gent 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 afte r 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 th a t 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
m ent 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 paym ent 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 )
Se ees o n o n e e t

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