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FED ER A L R ESER V E BAN K O F D A LLA S FISCA L AGENT O F THE UNITED STATES Dallas, Texas, January 23, 1964 360-DAY TREASURY BILLS Dated February 6, 1964 $ 1,000,000,000 Maturing January 31, 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: T h e Treasury Departm ent, by this public notice, invites tenders for $1,000,000,000, or thereabouts, o f 360-day Treasury bills, to be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter provided. T he bills o f this series w ill be dated February 6, 1964, and w ill mature January 31, 1965, when the face amount w ill be payable without interest. They w ill be issued in bearer form only, and in denominations o f $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity valu e). Tenders w ill be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m ., Eastern Standard tim e, Thursday, January 30, 1964. Tenders w ill not be received at the Treasury Departm ent, W ashington. Each tender must be for an even m ultiple o f $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 more than three decim als, 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 w ill be supplied by Federal Reserve Banks or Branches on application therefor. Banking institutions generally m ay subm it tenders for account o f customers provided the names o f the custom ers are set forth in such tenders. Others than banking institutions w ill not be perm itted to subm it tenders except for their own account. Tenders w ill be received without deposit from incorporated banks and trust com panies and from responsible and recognized dealers in investm ent securities. Tenders from others must b e accom panied by paym ent o f 2 percent o f the face am ount o f Treas ury bills applied for, unless the tenders are accom panied by an express guaranty o f 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 ing which public announcement w ill be made by the Treasury Departm ent o f the amount and price range o f accepted bids. Those sub m itting tenders w ill be advised o f the acceptance or rejection thereof. T h e 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, noncom petitive tenders for $200,000 or less without stated price from any one bidder w ill be accepted in fu ll at the average price (in three decim als) o f accepted com petitive bids. Paym ent o f accepted tenders at the prices offered must be made or com pleted at the Federal Reserve Bank in cash or other im m ediately available funds on February 6, 1964. The incom e derived from Treasury bills, whether interest or gain from the sale or other disposition o f the bills, does not have any exem ption, 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. T he 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 im posed on the principal or interest thereof by any State, or any o f the possessions o f the United States, or by any local taxing authority. F or purposes o f taxation the amount o f 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 amount o f discount at which bills issued hereunder are sold is not considered to accrue until such bills are sold, redeem ed 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 redem ption at m aturity during the taxable year for which the return is made, as ordinary gain or loss. Treasury Departm ent Circular No. 418 (current revision) and this notice, prescribe the terms o f the Treasury bills and govern the conditions o f their issue. Copies o f 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 twelve-thirty p.m., Central Standard time, Thursday, January 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 360 DAYS Maturing January 31, 1965 Dated February 6, 1964 T o: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The______________________________________ Branch El Paso 79999 Houston 77001 —.— —-----------------------— ------- San Antonio 78206 (Date) Pursuant to the provisions o f Treasury Department Circular No. 418 (current revision) and to the provisions o f 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 $200,000 or less from any one bidder, without stated price, will be accepted in full at the average price (in three decimals) o f accepted competitive bids. Prices should be ex$ ................. — COMPETITIVE TENDERS ..........@ - - - - - ..... % .................... \ 100, with not more than - ..... * .................... * ................. .................. @ e. g., 99.925. Fractions $ .................. ..................® — ..... * .................... flCgP TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY W IRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. These bills CANNOT be paid for by credit in Treasury Tax and Loan Accounts. Number of Pieces METHOD OF PAYMENT Denominations Desired M aturity Value @ $ 1,000 @ ? 5,000 $ 10,000 $ 50,000 ~ @ □ Payment to be made by........................... (Name of Bank) □ By charge to our reserve account on payment date. □ By draft enclosed (effectual delivery o f enclosed draft shall be on latest day which will permit presentment in order to obtain irrevocably collected funds on payment date). ? 100,000 $ 500,000 $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 (For the account of* if tender is fo r another subscriber) □ Ship to___________________________ (Address) IMPORTANT 1. No tender fo r 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 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 may be requested 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 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. If the tender is made by a partnership it should be signed by a member of the firm, who should sign in the form “ ................... ................................., copartnership, by.......... ......... ..... ................................. ............., a member o f the firm” . a 6. 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. If 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 twelvethirty p.m., Central Standard time, Thursday, January 30, 1964.
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