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FE D E R A L R E S ER V E BANK O F NEW YO RK Fiscal Agent of the United States r Circular No. 5 9 0 6 "1 L November 30, 1966 J Offering of $800,000,000 of 192-Day Tax Anticipation Treasury Bills, Additional Amount Dated October 18, 1966, Due June 22, 1967, To Be Issued December 12, 1966 To All Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: The following statement was made public today by the Treasury Department: The Treasury Department announced today the sale of $800 million of tax anticipation bills maturing in June 1967. The bills are in addition to the $2 billion of June tax bills already outstanding. The bills will be auctioned on Tuesday, December 6, for payment on Monday, December 12. Payment will be required in immediately available funds; payment through crediting of Treasury T ax and Loan Accounts will not be accepted. The bills mature on June 22, 1967, but may be used at face value in payment of Federal taxes due on June 15, 1967. The Treasury indicated that after this sale of tax bills it contemplates no further open market borrowing to raise new cash during the balance of this calendar year. Following is the text of the public notice offering the bills referred to in the above statement: T h e T reasu ry Departm ent, by this public notice, invites tenders for $800,000,000, or thereabouts, of 192-day T reasury bills (to m aturity d ate), to be issued D ecem ber 12, 1966, on a discount basis under competitive and noncom petitive bidding as hereinafter provided. T h e bills of this series will be d esig nated T a x Anticipation Series and represent an additional am ount o f bills dated O ctob er 18, 1966, to mature June 22, 1967, originally issued in the am ount of $2,006,632,000. T h e additional and original bills will be freely interchangeable. T h e y will be accepted at face value in paym ent of incom e taxes due on June 15, 1967, and to the extent they are not presented for this purpose the face am ount of these bills will be payable without interest at maturity. T ax p a yers desiring to apply these bills in paym ent of June 15, 1967 incom e taxes have the privilege of surrendering them to any Federal Reserve Bank or Branch or to the Office of the T reasurer of the U nited States, W a sh in g to n , not m ore than fifteen days before June 15, 1967, and receiving receipts therefor show ing the face am ount of the bills so surrendered. T h ese receipts m ay be submitted in lieu of the bills on or before June 15, 1967, to the D istrict D irector of Internal Revenue for the D istrict in w hich such taxes are payable. T h e bills will be issued in bearer form only, and in denominations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity valu e). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Standard time, T u esday, D ecem ber 6, 1966. T en ders will not be received at the T reasury Departm ent, W a sh in g to n . Each tender m ust be for an even multiple of $1,000, and in the case of competitive tenders the price offered m ust be expressed on the basis of 100, with not m ore than three decimals, e.g., 99.925. Fractions m ay 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 R eserve Banks or Branches on application therefor. Banking institutions generally m ay submit tenders for account of custom ers provided the nam es of the custom ers are set forth in such tenders. O thers than banking institutions will not be permitted to submit tenders except for their ow n account. T enders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investm ent securities. T enders from others m ust be accom panied b y paym ent o f 2 percent o f the face am ount of T reasury bills applied for, unless the tenders are accom panied by an express guaranty of paym ent by an incorporated bank or trust com pany. Im m ediately after the closing hour, tenders w ill be opened at the Federal Reserve Banks and Branches, follow in g w hich public announcem ent w ill be m ade by the T reasu ry D ep artm ent of the am ount and price range of accepted bids. T h o se sub m itting tenders will be advised of the acceptance or rejection thereof. T h e Secretary of the T reasury 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. S ubject to these reservations, noncom petitive tenders for $200,000 or less w ithout stated price from any one bidder w ill be accepted in full at the average price (in three decim als) of accepted co m petitive bids. P aym ent of accepted tenders at the prices offered m ust be made or com pleted at the Federal R eserve Bank in cash or other im m ediately available funds on D ecem ber 12, 1966. T h e incom e derived from T reasury bills, whether interest or gain from the sale or other disposition of the bills, does not have any exem ption, as such, and loss from the sale or other disposition of T reasu ry bills does not have any special treat m ent, as such, under the Internal Revenue Code of 1954. T h e bills are subject to estate, inheritance, gift or other excise taxes, w hether Federal or State, but are exem pt from all taxa tion now or hereafter im posed on the principal or interest thereof by any State, or any of the possessions of the U nited States, or by any local taxing authority. F or purposes of taxation the am ount of discount at w hich T reasu ry bills are originally sold by the U nited States is considered to be interest. U nd er Sections 4 5 4 (b ) and 1221(5) of the Internal Revenue Code of 1954 the am ount of discount at w hich bills issued hereunder are sold is not considered to accrue until such bills are sold, redeemed or otherw ise disposed of, and such bills are excluded from consideration as capital assets. A cco rd in gly , the ow ner o f T reasury bills (other than life insurance co m panies) issued hereunder need include in his incom e tax return only the difference betw een the price paid for such bills, whether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption at m aturity during the taxable year for w hich the return is made, as ordinary gain or loss. T reasu ry D epartm ent Circular N o . 418 (current revision) and this notice prescribe the term s of the T reasury bills and govern the conditions of their issue. Copies o f the circular m ay be obtained from any Federal R eserve Bank or Branch. This Bank will receive tenders up to 1 :30 p.m., Eastern Standard time, Tuesday, December 6, 1966, at the Securities Department of its Head Office and at its Buffalo Branch. Please use the form on the reverse side of this circular to submit a tender, and return it in the enclosed blue envelope marked “ Tender for Treasury Bills__T ax Anticipation Series.” Tenders may be submitted by telegraph, subject to written confirmation; they may not be sub mitted by telephone. Payment for the Treasury bills cannot be made by credit through the Treasury Tax and Loan Account. Settlement for accepted tenders must be made in cash or other immediately available funds on Decem ber 12 1966. A lfred H a y e s , President. ( over) No................ . TENDER FOR 192-DAY TREASURY BILLS TO BE D E SIG N A TE D “ T A X A N T IC IP A T IO N SERIES” A D D IT IO N A L ISSUE Dated October 18, 1966, Due June 22, 1967, To Be Issued December 12, 1966 To F ed era l R eserve B an k o f N ew Dated at Y ork , Fiscal Agent of the United States. 1966 IMPORTANT— Payment may not be made by credit to Treasury Tax and Loan Account. Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and provisions of the public notice issued by the Treasury Department and printed on the reverse side of this the undersigned hereby offers to purchase the above described Treasury bills in the amount indicated and agrees to make payment therefor at your Bank on or before the issue date at the price indicated C O M P E T IT IV E TE N D E R f D° not & . in both Competitive and ~j Noncompetitive tenders on one form $ ............................................................ (maturity value), or any lesser amount that may be awarded. P rice : .....................................per 100. (Price must be expressed with not more than three decimal places, for example, 99.925) to the tender, below, below : N O N C O M P E T IT IV E TENDER I $ ............................................................ (maturity value). (N ot to exceed $200,000 for one bidder through all sources) A t the average price of accepted competitive bids. Subject to allotment, please issue, deliver, and accept payment for the bills as indicated below: Denomination Pieces $ M aturity value 1,000 5,000 10,000 50,000 □ 1. Deliver over the counter to the undersigned Payment will be made as follow s: □ 2. Ship to the undersigned □ By charge to our reserve account D 3. H old in safekeeping (fo r ac count of member bank on ly )* □ B y cash or check in immediately available funds □ 4. Allotment attached) □ 5. Special instructions: transfer (see list 100,000 500,000 1,000,000 (N o changes in delivery instructions m il be accepted) Total (Payment cannot be made through Treasury Tax and Loan Account) * I f this item is checked, the undersigned certifies that the allotted bills will be owned solely by the undersigned. N a m e of subscriber (Please print) Insert this tender in blue en v elop e m arked T ender for Treasury Bills— Tax A nticipation Series” r B y ................................... By (O fficial signature(s) required) T itle .............................. Title ............ A dd ress (B an k s subm itting tenders for custom er account m ust indicate name on line below , or attach a list) (N a m e of customer) IN S T R U C T IO N S : 1. N o tender for less than $1,000 w ill be considered, and each tender m ust be for an even multiple of $1,000 (m aturity valu e). 2. O th ers than banking institutions w ill not be perm itted to subm it tenders except for their ow n account. Banks subm itting tenders for custom er account m ay consolidate competitive tenders at the same price and m ay consolidate non competitive tenders, provided a list is attached show ing the name of each bidder, the am ount bid for his account, and m ethod of paym ent! F orm s for this purpose will be furnished on request. 3. I f the person m akin g the tender is a corporation, the tender should be signed by an officer of the corporation authorized to make the tender, and the signing of the tender 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 m em ber of the firm, w ho should sign in the form “ ......................................................................................................... a copartnership, by ...................................................................................................................... . a m em ber o f the firm .” 4. T en d ers will be received w ithout deposit from incorporated banks and trust 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 reasu ry bills applied for, unless the tenders are accom panied by an express guaranty of paym ent by an incorporated bank or trust com pany. 5. If the language of this tender is changed in any respect, which, in the opinion o f the Secretary o f the Treasury, is material, the tender m ay be disregarded. F ederal R eserve B a n k of New Y ork NOTICE OF ALLOTMENT OF U NITED STATES OF A M E R IC A T R E A S U R Y BILLS T A X A N T IC IP A T IO N SERIES Y ou r □ competitive □ noncompetitive tender fo r— U N ITE D S T A T E S OF A M E R IC A 1 9 2 -D A Y T R E A S U R Y BILLS— T A X A N T IC IP A T IO N SERIES A D D IT IO N A L A M O U N T , SERIES D A T E D O C TO B E R 18, 1 9 66 , D UE JUNE 22, 1967 (T O BE ISSUED DECEM BER 12, 1 9 6 6 ) has been accepted at the price o f (per 100), in the amount o f— $ (maturity value) Settlement therefor must be made in cash or other immediately available funds at the Federal Reserve Bank of New Y ork on or before the issue date. I f settlement is to be made by check on a bank other than the Federal Reserve Bank o f New York, such check should be received by us in time for collection on that d a te; otherwise forfeiture of the prescribed deposit may be declared by the Secretary o f the Treasury. D elivery o f the Treasury bills will be made in accordance with instructions submitted with your tender, and your reserve account will be charged on the issue date if you so indicated. I f you did not submit such instructions, or if additional instructions are required, a Letter of Instructions form is enclosed; please complete the letter in triplicate and return it prom ptly to this Bank. F e d e ra l R eserve B an k o f N ew Y ork Fiscal A gent o f the United States Checked by (This letter of instructions, accompanied by attached duplicate and triplicate copies, should be filled in and returned to Federal Reserve Bank of New York) LETTER OF INSTRUCTIONS To F e d e r a l R e s e r v e B a n k o f N e w Y Fiscal Agent of the United States, Federal Reserve P. 0. Station, New York, N. Y. 10045 ork , Attention: Government Bond Division— 2nd Floor Dated at .................................................... ................................................................... 1966 jr On our □ competitive □ noncompetitive tender for— U N ITED S T A T E S OF A M E R IC A 1 9 2 -D A Y T R E A S U R Y BILLS— T A X A N T IC IP A T IO N SERIES A D D IT IO N A L A M O U N T , SERIES D A T E D O C TO B E R 18, 1966, DUE JUNE 22, 1967 (T O BE ISSUED DECEM BER 12, 1 9 6 6 ) accepted at the price of (per 100), in the amount of— $ (maturity value) Please issue and make delivery of the bills as instructed below: Denomination Pieces $ Maturity Value P lease Do N ot U se T h is S pa c e 1,000 5,000 10,000 50,000 100,000 500,000 1,000,000 Total— □ 1. Deliver over the counter to the undersigned □ 2. Ship to the undersigned □ 3. Hold in safekeeping (for account of member bank only)* □ 4. Allotment transfer (see list attached) □ 5. Special instructions: (No changes in delivery instructions will he accepted) Payment will be made as follows: □ By charge to our reserve account □ By cash or check in immediately available funds (Payment cannot be made through Treasury Tax and Loan Account) If this item is checked, the undersigned certifies that the allotted bills will be owned solely by the undersigned. This letter of instructions must be signed officially in the space provided and re turned immediately to Submitted by (Please print) By ................. .• • • • ..’ By ............ (Authorized signature(s) required) Federal Reserve Bank of New York, T i t le ......................................................................... Title Fiscal Agent of the United States. A d d re s s................................................................................................ (Spaces below are for the use o f Federal Reserve Bank o f New Y o rk ) Government Bond Division Safekeeping Division Security Custody Department PAY M E N T RECEIVED signed: Taken from vault ......................................... D E LIV E R AG AIN ST PAY M E N T Counted ............................................................ OF $ .................................................... signed: Checked ............................................................ DELIVE RY RECEIPT Received from Federal Reserve Bank o f New York, Fiscal Agent o f the United States, the above described Treasury bills allotted in the amount indicated above. Subscriber Date By (D UPLICATE FOR USE OF F E D E R A L R ESERVE BAN K OF N E W YOR K) DELIVERY TICKET— SAFEKEEPING DIVISION To F e d e r a l R e s e r v e B a n k o f N e w Y Fiscal A gen t o f the United States, Federal Reserve P. 0 . Station, New York, N. Y . 10045 ork, A tten tion: Government Bond Division— 2nd F loor Dated at .1966 On our □ com petitive □ noncompetitive tender fo r— U N ITE D S T A T E S OF A M E R IC A 1 9 2 -D A Y T R E A S U R Y BILLS— T A X A N T IC IP A T IO N SERIES A D D IT IO N A L A M O U N T , SERIES D A T E D O C T O B E R 18, 19 66, D UE JUNE 22 , 1967 (T O BE ISSUED DECEM BER 12, 1 9 6 6 ) accepted at the price o f (per 100), in the amount o f— $ (m aturity value) Please issue and make delivery o f the bills as instructed b e lo w : Pieces Denomination $ M aturity Value P l e a s e D o N ot U se T h is S pace 1,000 5,000 10,000 50,000 100,000 500,000 1,000,000 Total— □ □ □ □ □ 1. Deliver over the counter to the undersigned 2. Ship to the undersigned 3. H old in safekeeping (fo r account of member bank o n ly )* 4. Allotm ent transfer (see list attached) 5. Special instructions: (N o changes in delivery instructions will be accepted ) Paym ent will be made as fo llo w s : □ □ B y charge to our reserve account B y cash or check in immediately available funds (P aym en t cannot be made through Treasury Tax and Loan A ccou n t) If this item is checked, the undersigned certifies that the allotted bills will be owned solely by the undersigned. This letter of instructions must be signed officially in the space provided and re turned immediately to Federal Reserve Bank of New York, Submitted by (Please print) bj ............ Title ............... B y ................. (Authorized signature(s) required) .......................... Title ................ Fiscal A gent of the United States. A d d r e s s ............................................................................................................. (Spaces below are for the use o f Federal Reserve Bank o f New York) Government Bond Division Safekeeping Division Security Custody Department P A Y M E N T R E C E IV E D signed : Taken from vault ............................................... D E L I V E R A G A IN S T P A Y M E N T Counted ..................................................................... Checked ..................................................................... O F •$ ........................................................... sign ed: D E L I V E R Y R E C E IP T Received from Federal Reserve Bank o f New York, Fiscal Agent o f the United States, the above described Treasury bills allotted in the amount indicated above. j j a te ...................................... Subscriber............................................................................................... B y ...................................................................................................... (TRIPLICATE FOR USE OF F E D E R A L R ESERVE BAN K OF N E W YORK) RELOCATION OFFICE— OUT To F e d e r a l R e s e r v e B a n k o f N e w Y Fiscal A gent of the United States, Federal Reserve P. 0 . Station, New Y ork, N. Y . 10045 ork , A ttention: Government Bond Division— 2nd F loor Dated at ......................................................... ................................................................... 1966 On our □ competitive □ noncompetitive tender fo r— U N ITED S T A T E S OF A M E R IC A 1 9 2 -D A Y T R E A SU R Y BILLS— T A X A N T IC IP A T IO N SERIES A D D IT IO N A L A M O U N T , SERIES D A T E D O C TO B ER 18, 1966, DUE JUNE 22, 1967 (T O BE ISSUED DECEMBER 12, 1 9 6 6 ) accepted at the price of (per 100), in the amount of( maturity value) Please issue and make delivery o f the bills as instructed b elow : Denomination Pieces $ Maturity Value P lease D o N ot U se T h is S pace 1,000 5,000 10,000 50,000 100,000 500,000 1,000,000 Total— □ □ □ □ □ 1. Deliver over the counter to the undersigned 2. Ship to the undersigned 3. H old in safekeeping (fo r account of member bank on ly )* 4. Allotm ent transfer (see list attached) 5. Special instructions: (N o changes in delivery instructions will be accepted) Payment will be made as fo llo w s : □ □ B y charge to our reserve account By cash or check in immediately available funds (Paym ent cannot be made through Treasury Tax and Loan A ccou n t) If this item is checked, the undersigned certifies that the allotted bills will be owned solely by the undersigned. This letter of instructions must be signed officially in the space provided and re turned immediately to Federal Reserve Bank of New York, Submitted b y ............................. (Please print) By Title ......................................................., ................................................ B y ............. (Authorized signature(s) required) ................................................................................... Title Fisea.1 Agent of the United States. A d d r e s s ............................................................................................................. (Spaces below are for the use of Federal Reserve Bank o f New Y ork ) Government Bond Division Safekeeping Division Security Custody Department P A Y M E N T R E C E IV E D Taken from vault ............................................... signed : D E L I V E R A G A IN S T P A Y M E N T O F $ ........................................................... signed: D E L I V E R Y R E C E IP T Received from Federal Reserve Bank o f New York, Fiscal Agent o f the United States, the above described Treasury bills allotted in the amount indicated above. Date. Subscriber. B y- 5 PENDING DELIVERY TICKET FOR GOVERNMENT BOND DIVISION Y ou r □ competitive □ noncompetitive tender fo r — U N ITE D S T A T E S OF A M E R IC A 1 9 2 -D A Y T R E A S U R Y BILLS— T A X A N T IC IP A T IO N SERIES A D D IT IO N A L A M O U N T , SERIES D A T E D O C T O B E R 18, 1 9 66 , D UE JUNE 22, 1967 (T O BE ISSUED DECEM BER 12, 1 9 6 6 ) (per 100), in the amount of- which has been accepted at the price of $ PRINCIPAL M ASTER M A T U R IT Y V A L U E PRINCIPAL DISPOSITION □ Over the Counter □ Safekeeping □ Ship □ □ SPLIT D ISPO SITIO N M ETHOD OF PAY M E N T □ Reserve Account □ Check or Cash □ Delivery Teller Treasury Tax & Loan □ Foreign Oper. Allotment Transfer □ Form 12 Div. ALLOTMENT NOTICE FOR SECURITIES DEPARTMENT □ com petitive □ noncompetitive U N ITE D S T A T E S OF A M E R IC A 1 9 2 -D A Y T R E A S U R Y BILLS— T A X A N T IC IP A T IO N SERIES A D D IT IO N A L A M O U N T , SERIES D A T E D O C TO B E R 18, 1 9 66 , DUE JUNE 22, 1967 (T O BE ISSUED DECEM BER 12, 1 9 6 6 ) $ 6 R E LO C A TIO N OFFICE— IN □ competitive Q noncompetitive U N ITE D S T A T E S OF A M E R IC A 1 9 2 -D A Y T R E A S U R Y BILLS— T A X A N T IC IP A T IO N SERIES A D D IT IO N A L A M O U N T , SERIES D A T E D O C T O B E R 18, 1 9 66 , D UE JUNE 22, 1967 (T O BE ISSUED DECEM BER 12, 1 9 6 6 )
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