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F ederal Reserve B ank





Circular No. 67-179
Septem ber 13, 1967

To All Banking Institutions a n d Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the fo llo w in g sta te m e n t giving d etails of t w o issu es 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 th e aggregate am ount
of $2,400,000,000, or thereabouts, for cash and in exchange for T reasury bills m aturing Septem ber 21, 1967, in the am ount of
$2,300,149,000, as follows:
91-DAY B IL L S (to m aturity date) to be issued Septem ber 21, 1967, in the am ount of $1,400,000,000, or there­
abouts, representing an additional am ount of bills dated Ju n e 22, 1967, and to m ature Decem ber 21, 1967,
originally issued in the am ount of $1,000,050,000, 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 Septem ber 21, 1967, and to m ature M arch 21, 1968.
T he 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 their face am ount will be payable w ithout interest. They 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 value).
Tenders will be received a t Federal Reserve Banks and Branches u p to the closing hour, one-thirty p.m., E astern
D aylight Saving Tim e, Monday, Septem ber 18, 1967. T enders will not be received a t th e Treasury D epartm ent, Washington. E ach
tender must be for an even m ultiple of $1,000, and in the case of com petitive tenders the price offered must be expressed on
th e basis of 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. It is urged th a t tenders be made
on the printed forms and forwarded in th e special envelopes which will be supplied by F ederal Reserve Banks or Branches
on application therefor.
Banking institutions generally may subm it tenders for account of customers provided the names of th e customers are
set forth in such tenders. O thers than banking institutions will not be perm itted to subm it tenders except for their own account.
T enders will be received without deposit from incorporated banks and tru st companies and from responsible and recognized
dealers in investm ent securities. Tenders from others m ust be accompanied by paym ent of 2 percent of the face am ount of
T reasury bills applied for, unless th e tenders are accompanied by an express guaranty of paym ent by an incorporated bank or
tru st company.
Im m ediately after th e closing hour, tenders will be opened a t th e Federal Reserve Banks and Branches, following which
public announcem ent will be made 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 th e acceptance or rejection thereof. T h e Secretary of th e 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 will be
accepted in full at the average price (in three decim als) of accepted com petitive bids for th e respective issues. S ettlem ent for
accepted tenders in accordance w ith the bids m ust be m ade or com pleted a t the Federal Reserve B ank on Septem ber 21, 1967, in
cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing Septem ber 21, 1967. Cash and
exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences between th e par value of m atur­
ing bills accepted in exchange and the issue price of th e new bills.
T he income derived from T reasury bills, whether interest or gain from th e sale or other disposition of the bills, does not
have any exemption, as such, and loss from the sale or other disposition of Treasury bills does not have any special treatm ent,
as such, under the Internal Revenue Code of 1954. T h e bills are subject to estate, inheritance, gift or other excise taxes, whether
Federal or State, but are exem pt from all taxation now or hereafter imposed on th e principal or interest thereof by any State,
or any of the possessions of the U nited States, or by any local taxing authority. For purposes of taxation th e 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 the Internal Revenue Code of 1954 th e am ount of discount at 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 the 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
return is made, as ordinary gain or loss.
Treasury D epartm ent Circular No. 418 (cu rren t revision) and this notice, prescribe th e term s of the T reasury bills and
govern, the conditions of their issue. Copies of th e circular may be obtained from any F ederal R eserve B ank or Branch.

In acc o rd a n c e with the a b o y e an n o u n c em en t, fenders will b e received at this b a n k a n d its branches at El Paso,
Houston an d San Antonio up to twelve-thirty p.m., Central Daylight Saving Time, M on d a y, S eptem ber 18, 1967. Tenders
may not b e entered by t e le p h o n e .
Yours very truly,
Watrous H. Irons
Amount, R ange and Approxim ate Y ield of Accepted Tenders
91-Day Bills
182-Day Bills
D ue D ecem ber 14, 1967
D ue M arch 14, 1968
T otal Applied F o r_______________________________ $1,792,995,000
$1,400,021,000------------------------------------------------- T otal A ccepted_________________________________$1,000,073,000
Y ield
.4.328% -------------------------------------- H igh______________________97.510___________ 4.925%
4.387% _________________________ l o w _______
97.490___________ 4.965%
4.360% ( 1 ) ------------------------------ A verage____________________ 97.497___________ 4.951% (1 )
( 1 ) These rates are on a bank discount basis. The equivalent coupon issue yields are 4 .48% for the 91-day bills, and 5.16% for
the 182-day bills.

(See reverse side for tender form)

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


M aturing March 21,1968

Dated September 21,1967
T o: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The_______________________________ Branch
E l Paso 79999

H ouston 77001

(D ate)

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.


_NOT TO E X C E E D $200,000

Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full a t the average
price (in three decimals) of accepted competitive bids.
Prices should be ex1$---------------------------- @ ---------------- $---------------------------------------- pressed on the basis of
COMPETITIVE TENDERS <$----------------------- @-------------$



- .....


- ..................

- ................- ................................

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

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

D enominations D esired
Number of

M aturity Value

(fib $
(a) $

5,000 $-

<a $

10,000 $

. (a) $


1,000 $

50,000 $



@ $ 100,000 $
_ (fib $ 500,000 $


By m aturing bills
held by__________ ________________
Paym ent to be made by___________
Charge our reserve account on paym ent
D raft enclosed (E f f e c t u a l d e liv e r y o f e n c lo se d
draft shall be on latest day which will permit present­
m ent in order to obtain irrevocably collected funds on
paym ent date)

(a) $1 ,000,000 $

Delivery Instructions:
□ Hold in Custody Account—Member
banks for own account only

Pledge to secure Treasury Tax and
Loan Account

(Subscriber’s full name or corporate title)



Ship to---------------------------------------

(Authorized official signature and title)

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


1. No tender for less than $1,000 will be considered and each tender must be for an amount in multiples of $1,000 (maturity
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 specifi_ed_ 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.
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 th e
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 member of the firm”.
5. Tenders from those other than incorporated hanks and trust 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 (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 fo r announcem ent)

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