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FEDERAL RESERVE BANK OF DALLAS FISCAL. A G E N T O F T H E U N ITE D S T A T E S Dallas, Texas, April 24, 1964 359-DAY TREASURY BILLS Dated May 6, 1964 $1,000,000,000 Maturing April 30, 1965 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 $1,000,000,000, or thereabouts, of 359-day Treasury bills, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be dated M ay 6, 1964, and will mature April 30, 1965, when the face amount will be payable without interest. They 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 (maturity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Daylight Saving time, Thursday, April 30, 1964. 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 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 forms 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 of 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 of the face amount of Treas ury 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, 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 o f 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 reservations, noncompetitive tenders for $200,000 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 M ay 6, 1964. 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 by any local taxing authority. For 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 ) 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 in 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 (current revision) 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. 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 a.m., Central Standard time, Thursday, April 30, 1964. Tenders may not be entered by telephone. Yours very truly, Watrous H. Irons President This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) TENDER FO R TREASURY BILLS 359 DAYS Dated May 6, 1964 Maturing April 30, 1965 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The____________________________________ Branch El Paso 79999 Houston 77001 ----------------------------------------- San Antonio 78206 (Date) Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and to the provisions of the public announcement, as shown on reverse side, as 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. $ ______________________ @ ___________ $ _____________________ COMPETITIVE TENDERS I ^ $ ______________________ @ ___________ $ _____________________ 4 $ ---------------------------------- @ ------------------$ --------------------------------- Prices should be expressed on the basis of 100, with not more than three decimal places, e* 99.925. Fractions must not ^ use(J t e n d e r s m a y n o t b e e n t e r e d b y t e l e p h o n e , t e n d e r s b y w ir e , if r e c e iv e d b e f o r e t h e CLOSING HOUR, A RE ACCEPTABLE. These bills CANNOT be paid for by credit in Treasury Tax and Loan Accounts. METHOD OF PAYM E N T Denominations Desired Number o f Pieces Maturity Value @ $ @ $ @ $ 1,000 ¥— 5,000 $ . 10,000 $... @ $ 50,000 @ $ 100,000 @ ¥ 500,000 □ (Name of Bank) $ ..... $ ..... $ . . Payment to be made by___ . □ 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). @ $1 ,000,000 ¥ ■ (Subscriber's full name or corporate title) Delivery Instructions: □ Hold in Custody Account— Member banks for own account only (Address) By------------------------------------------------------(Authorized official signature and title) □ Pledge to Secure Treasury Tax and Loan Account (F or the account of, if tender is fo r another subscriber) □ Ship to____________________________ (Address) IMPORTANT 1. No tender for less than $1,000 will be considered and each tender must be fo r an amount in multiples o f $1,000 (maturity value). 2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent o f the United States, with notation on the envelope reading “ TENDER FOR TREASU RY 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 fo r submitting tenders may be requested from this bank or appropriate branch. 3. A ny qualified or conditional tender will be rejected. 4. I f a corporation makes the tender the form should be signed by an officer o f the corporation authorized to make the tender and the signing o f the form by an officer o f the corporation will be construed as a representation by him that he has been so authorized. I f the tender is made by a partnership it should be signed by a member o f the firm, who should sign in the form “ ........................................................ , a copartnership, by.............................................................................. . a member o f 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 o f 2 percent o f the total amount (maturity value) o f the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty o f full payment by an incorporated bank or trust company. 6. I f the language o f this form is changed in any respect, which, in the opinion o f the Secretary o f the Treasury, is material, 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 a.m., Central Standard time, Thursday, April 30, 1964.
@FedFRASER