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Fiscal Agent of the United States
]" Circular No. 6 0 8 0 T
L December 22, 1967 J

$1,500,000,000 of 91-Day Bills, Additional Amount, Series Dated October 5, 1967, Due April 4, 1968
(To Be Issued January 4, 1968)
$1,000,000,000 of 183-Day Bills, Dated January 4, 1968, Due July 5, 1968
To A ll Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal Reserve D istrict:

Following is the text of a notice issued by the Treasury Department, released for publication today at 4 p.m.,
Eastern Standard time:
The Treasury Department, by this public notice, invites
tenders for tw o series of Treasury bills to the aggregate amount
of $2,500,000,000, or thereabouts, for cash and in exchange for
Treasury bills maturing January 4, 1968, in the am ount o f
$2,400,723,000, as follow s:
91-day bills (to maturity date) to be issued January 4,
1968, in the amount o f $1,500,000,000, or thereabouts,
representing an additional amount of bills dated O cto­
ber 5, 1967, and to mature April 4, 1968, originally
issued in the amount o f $1,000,305,000, the additional
and original bills to be freely interchangeable.
183-day bills, for $1,000,000,000, or thereabouts, to be
dated January 4, 1968, and to mature July 5, 1968.
T h e bills o f both series w ill be issued on a discount basis
under competitive and noncompetitive bidding as hereinafter
provided, and at maturity their face amount w ill be payable
without interest. T h ey will be issued in bearer form only, and
in denominations o f $1,000, $5,000, $10,000, $50,000, $100,000,
$500,009 and $1,000,000 (maturity value).
Tenders will be received at Federal Reserve Banks and
Branches up to the closing hour, one-thirty p.m., Eastern
Standard time, Friday, Decem ber 29, 1967. Tenders will not be
received at the Treasury Department, W ashington. Each tender
must be for an even multiple of $1,000, and in the case o f com ­
petitive tenders the price offered must be expressed on the
basis o f 100, with not m ore than three decimals, e.g., 99.925.
Fractions may not be used. It is urged that tenders be made
on the printed form s and forwarded in the special envelopes
which will be supplied by Federal Reserve Banks or Branches
on application therefor.
Banking institutions generally may submit tenders for
account o f customers, provided the names of the customers are
set forth in such tenders. Others than banking institutions will
not be permitted to submit tenders except for their own account.
Tenders will be received without deposit from incorporated
banks and trust companies and from responsible and recognized
dealers in investment securities. Tenders from others must be
accompanied by payment o f 2 percent o f the face am ount o f
Treasury bills applied for, unless the tenders are accompanied
by an express guaranty of payment by an incorporated bank or
trust company.
Immediately after the closing hour, tenders will be opened
at the Federal Reserve Banks and Branches, follow in g which

public announcement will be made by the Treasury Departm ent
o f the amount and price range of accepted bids. T h ose sub­
mitting tenders will be advised o f the acceptance or rejection
thereof. The Secretary o f the Treasury expressly reserves the
right to accept or reject any or all tenders, in w hole or in part,
and his action in any such respect shall be final. Subject to
these reservations, noncompetitive tenders for each issue for
$200,000 or less without stated price from any one bidder will
be accepted in full at the average price (in three decim als) o f
accepted competitive bids for the respective issues. Settlement
for accepted tenders in accordance with the bids must be made
or com pleted at the Federal Reserve Bank on January 4, 1968,
in cash or other immediately available funds or in a like face
amount of Treasury bills maturing January 4, 1968. Cash and
exchange tenders will receive equal treatment. Cash adjust­
ments will be made for differences between the par value o f
maturing bills accepted in exchange and the issue price o f the
new bills.
T h e incom e derived from Treasury bills, whether interest
or gain from the sale or other disposition o f the bills, does not
have any exemption, as such, and loss from the sale or other
disposition o f Treasury bills does not have any special treat­
ment, as such, under the Internal Revenue Code o f 1954. The
bills are subject to estate, inheritance, gift or other excise
taxes, whether Federal or State, but are exem pt from all taxa­
tion n ow or hereafter im posed on the principal or interest
thereof by any State, or any o f the possessions of the United
States, or by any local taxing authority. F or purposes o f
taxation the amount of discount at which Treasury bills are
originally sold by the United States is considered to be interest.
Under Sections 454(b) and 1221(5) o f the Internal Revenue
Code o f 1954, the am ount o f discount at which bills issued here­
under are sold is not considered to accrue until such bills are
sold, redeemed or otherwise disposed of, and such bills are
excluded from consideration as capital assets. A ccordingly,
the owner o f Treasury bills (other than life insurance com ­
panies) issued hereunder need include in his incom e tax return
only the difference between the price paid for such bills, whether
on original issue or on subsequent purchase, and the amount
actually received either upon sale or redemption at maturity
during the taxable year for which the return is made, as ordi­
nary gain or loss.
Treasury Department Circular No. 418 (current revision)
and this notice prescribe the terms o f the Treasury bills and
govern the conditions of their issue. Copies of the circular may
be obtained from any Federal Reserve Bank or Branch.

This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Standard time, Friday, December 29, 1967,
at the Securities Department of its Head Office and at its Buffalo Branch. Tender forms for the respective series are
enclosed. Please use the appropriate forms to submit tenders and return them in an envelope marked “Tender for
Treasury Bills.” Tenders may be submitted by telegraph, subject to written confirmation; they may not be submitted
by telephone. Payment for the Treasury bills cannot be made by credit through the Treasury Tax and Loan Account.

Settlement must be made in cash or other immediately available funds or in maturing Treasury bills.
This circular was printed before the results of the bidding for Treasury bills to be issued December 28, 1967 were
available; those results will be announced after release by the Treasury Department.
A lfred H a y e s , President.

IMPORTANT— (1) Closing date for receipt of tenders is Friday, December 29, 1967.
(2) The Treasury bills maturing July 5, 1968 will be 183-day bills.

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