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FEDERAL RESERVE BANK OF DALLAS F I S C A L A G E N T O F T H E U N IT E D S T A T E S Dallas, Texas, June 25, 1959 PRELIMINARY ANNOUNCEMENT CASH FINANCING To all Banking Institutions and Others Concerned in the Eleventh Federal Reserve District: There is quoted below a press statement issued today by the Treasury Department in regard to the current financing: “The Treasury Department is offering for cash subscription: $3,000 million, or thereabouts, of 258-day Treasury Bills, Tax Anticipation Series, to be dated July 8, 1959, and to mature March 22, 1960, and $2,000 million, or thereabouts of 1-year Treasury bills to be dated July 15, 1959, and to mature July 15, 1960. (Issuance of the securities will be dependent upon the availability at time of issue of an adequate debt limitation.) “The current cash financing will cover the major share of Treasury cash financing needs for the first quarter of the fiscal year. TREASURY BILLS, TAX ANTICIPATION SERIES “The $3,000 million of Treasury Bills, Tax Anticipation Series, will be offered on an auction basis on July 1, 1959. These bills will be dated July 8, 1959, and will mature March 22, 1960. They will be acceptable at par in payment of income and profits taxes due March 15, 1960. TREASURY BILLS, 1-YEAR “The $2,000 million of 1-year Treasury bills will be offered on an auction basis on July 8, 1959. Notwithstanding the fact that these bills will run for 366 days, the discount rate will be computed on a bank discount basis of 360 days as is currently the practice on all issues of Treasury bills. The bills will be dated July 15, 1959, and will mature July 15, 1960. This is the third step in the Treasury’s program looking to the eventual establishment of a pattern of 1-year maturities on quarterly dates in January, April, July, and October. GENERAL REQUIREM ENTS “All subscribers to each of the above issues of Treasury bills are required to agree not to purchase or to sell, or to make any agreements with respect to the purchase or sale or other disposition of the Treasury bills for which tenders are submitted under these offerings, until after the closing hours for tenders on July 1 and July 8, respectively. “Full details regarding the offering of Tax Anticipation Treasury Bills will be released for morning newspapers Monday, June 29, and for the one-year Treasury bills on Monday, July 6. “The new issues may be paid for by credit in Treasury Tax and Loan Accounts.” Tenders for the two issues of Treasury bills will be received at this bank and its branches at El Paso, Houston and San Antonio, up to eleven-thirty o’clock, a.m., Central Standard Time, on July 1 and July 8, respectively. Official tender forms for the two issues and Friday, July 3, respectively. However, enable the completed tenders to reach this closing times, tenders may be entered by official tender forms. of Treasury bills will be mailed on Friday, June 26 if the forms are not received in sufficient timeto bank or the appropriate branch by the respective letter or by telegram, subject to confirmation on Yours very truly, Watrous H. Irons P resident This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) FEDERAL RESERVE BANK OF DALLAS F IS C A L A G E N T O F TH E U N ITE D STATES Dallas, Texas, June 26, 1959 TAX ANTICIPATION SERIES — TREASURY BILLS 258 DAYS Dated July 8, 1959 $3,000,000,000 Maturing March 22, 1960 Acceptable at face value in payment of income and profits taxes due on March 15, 1960. To all Banking Institutions and Others Concerned in the Eleventh Federal Reserve District: Your attention is invited to the following statement giving details of a new issue of Treasury bills: “ The Treasury Department, by this public notice, invites tenders for $3,000,000,000, or thereabouts, of 258-day Treas ury bills, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be designated Tax Anticipation Series, they will be dated July 8, 1959, and they will mature March 22, 1960. They will be accepted at face value in payment of income and profits taxes due on March 15, 1960, and to the extent they are not presented for this purpose the face amount of these bills will be payable without interest at maturity. Taxpayers desiring to apply these bills in payment of March 15, 1960, income and profits taxes have the privilege of surrendering them to any Federal Reserve Bank or Branch or to the Office of the Treasurer of the United States, Washington, not more than fifteen days before March 15, 1960, and receiving receipts therefor showing the face amount o f the bills so surrendered. T h ese receipts may be submitted in lieu of the bills on or before March 15, 1960, to the District Director of Internal Revenue for the District in which such taxes are payable. The bills will be issued in bearer form only, and in denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (maturity value). “ Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty o’clock p.m., Eastern Daylight Saving time, Wednesday, July 1, 1959. Tenders will not be received at the Treasury Department, Washington. Each tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. It is urged that tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. “ 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 invest ment securities. Tenders from others must be accompanied by payment o f 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. “All bidders are required to agree not to purchase or to sell, or to make any agreements with respect to the purchase or sale or other disposition of any bills of this issue, until after one-thirty o’clock p.m., Eastern Daylight Saving time, Wednesday, July 1, 1959. “ Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Department of the amount and price range of accepted bids. Those sub mitting tenders will be advised of the acceptance or rejection thereof. The Secretary of the Treasury 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 reser vations, noncompetitive tenders for $400,000 or less without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids. Payment of accepted tenders at the prices offered must be made or completed at the Federal Reserve Bank in cash or other immediately available funds on July 8, 1959, provided, how ever, any qualified depositary will be permitted to make payment by credit in its Treasury tax and loan account for Treasury bills allotted to it for itself and its customers up to any amount for which it shall be qualified in excess of existing deposits when so notified by the Federal Reserve Bank of its District. “The income derived from Treasury bills, whether interest or gain from the 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 treat ment, as such, under the Internal Revenue Code of 1954. The bills are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but are exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the United States, or b y any local taxing authority. For purposes of 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 ) of the Internal Revenue Code of 1954 the amount of discount at which bills issued hereunder 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. Accordingly, the owner of Treasury bills (other than life insurance companies) issued hereunder need include m his income 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 ordinary gain or loss. “Treasury Department Circular No. 418, Revised, and this notice, prescribe the terms of the Treasury bills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch.” Payment for this issue of Treasury bills must be made or completed at this bank or appropriate branch in cash or other immediately available funds on July 8, 1959, provided, however, any qualified depositary will be permitted to inake payment by credit in its Treasury Tax and Loan Account for the amount of Treasury bills allotted to it for itself an d its customers (up to the amount for which it shall be qualified in excess of existing deposits). Please note the required agreement not to purchase or sell this security prior to 1:30 o’clock p.m.. Eastern Daylight Saving Time, Wednesday, July 1, 1951. 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 eleven-thirty o'clock a.m., Central Standard Time, Wednesday, July 1, 1959. Tenders may n ot be entered by telephone. Yours very truly, Watrous H. Irons President This issue of Treasury Bills will be accepted at face value in payment of income and profits taxes due on March 15, 1960. TENDER FOR TREASURY BILLS T A X A N TIC IP A TIO N SERIES Dated July 8, 1959 258 Days Maturing March 22, 1960 To: Federal Reserve Bank, Station K, Dallas, Texas or The-------------------------------------------------------------------- Branch El Paso Houston __________________________ San Antonio (Date) Pursuant to the provisions of Treasury Department Circular No. 418, Revised, and to the provisions o f the public announcement, as shown on reverse side, as issued by the Treasury Department, the under signed 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. N ONCOM PETITIVE T E N D E R $ N O T TO E X C E E D $400,000 Noncompetitive tenders for $400,000 or less without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids. Prices should be ex(a) $_____________ $ „ ( pressed on the basis of 100, with not more than COMPETITIVE T EN D ER S } (a) _________ $__________ $ three decimal places, e. g., 99.925. Fractions ? ---------------- --------------@ _______ $ -----------------must not be used. ( 2 ^ TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Payment for this issue of bills can be made by credit to Treasury Tax and Loan Account. Number of Denominations Desired Pieces ______@ METHOD OF PAYMENT Maturity Value $ 1,000 $______ _____ @ $ 5,000 $_____ _____ @ $ □ By charge to our Treasury Tax and Loan Account. □ Payment to be made by............................................... 10,000 $______ _____ @ $ 100,000 $______ _____ @ $ 500,000 $ _____ @ $1,000,000 .. (Name of Bank) □ By charge to our reserve account on payment date. □ By draft enclosed (effectual delivery of enclosed draft shall be on latest day which will permit presentment in order to obtain irrevocably collected funds on payment date). All bidders are required to agree not to purchase or to sell, or to make any agreements with respect to the purchase or sale or other disposition of any bills of this issue, until after one-thirty o’clock p.m., Eastern Day light Saving time, Wednesday, July 1, 1959. Delivery Instructions: □ □ □ Hold in Custody Account— Member banks for own account only (Subscriber’ s full name or corporate title) (Address) By. Pledge to Secure Treasury Tax and Loan Account (Authorized official signature and title) (For the account of, if tender is for another subscriber) Ship to----------------------------------------------- (Address) IMPORTANT 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 value). 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 matters should not be enclosed. Envelopes for submitting tenders are mailed with the announcing circulars. 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 trust companies or responsible and recognized dealers in invest ’ ment securities will be disregarded, unless accompanied by a deposit of 2 per cent of the total amount (maturity value) of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of fpn payment by an incorporated bank or trust company. y ' 6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury, ia materin1 the tender may be disregarded. • Tenders will be received at this bank and its branches at El Paso, Houston and San Antonio, up to eleventhirty o’clock a.m., Central Standard Time, Wednesday, July 1, 1959.
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