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F E D E R A L R E S E R V E BANK O F D A LLA S F IS 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, M ay 21, 1964 363-DAY TREASURY BILLS Dated June 2, 1964 $ 1,000,000,000 Maturing May 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 Department, b y this public notice, invites tenders for $1,000,000,000, or thereabouts, of 363-day Treasury bills, to be issued on a discount basis under com petitive and noncompetitive bidding as hereinafter provided. T h e bills o f this series w ill be dated June 2, 1964, and w ill mature M a y 31, 1965, when the face amount w ill be payable without interest. T h e y w ill 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 va lu e). Tenders w ill be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern D aylight Saving time, Wednesday, M a y 27, 1964. Tenders w ill not be received at the Treasury Department, Washington. 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 decimals, e.g., 99.925. Fractions may not be used. (Notwithstanding the fact that these bills w ill run for 363 days, the discount rate w ill be computed on a bank discount basis o f 360 days, as is currently the practice on all issues o f Treasury bills.) I t is urged that tenders be made on the printed forms and forwarded in the special envelopes which w ill be supplied by Federal R eserve Banks or Branches on application therefor. Banking institutions generally m ay submit tenders fo r account of customers provided the names o f the customers are set forth in such tenders. Others than banking institutions w ill not be perm itted to submit tenders except for their own account. Tenders w ill 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 amount o f Treas ury bills applied for, unless the tenders are accompanied b y an express guaranty o f payment b y an incorporated bank or trust company. Im m ediately after the closing hour, tenders w ill be opened at the Federal R eserve Banks and Branches, follow ing which public announcement w ill be made by the Treasury Department o f the amount and price range of 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 full 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 completed at the Federal R eserve Bank in cash or other im m ediately available funds on June 2, 1964. T h e income 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. T h e bills are subject to estate, inheritance, g ift or other excise taxes, whether Federal or State, but are exem pt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions o f the United States, or by any local taxing authority. For purposes of taxation the amount o f discount at which Treasury bills are originally sold b y 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, redeemed or otherwise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, the owner o f Treasury bills (other than life insurance com panies) 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 Departm ent Circular N o. 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 R eserve 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, Wednesday, May 27, 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 FOR TREASURY BILLS 363 DAYS Dated June 2, 1964 Maturing May 31, 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. / i COMPETITIVE TENDERS/ ■ —- 1 " 1■ \ I f $____________________ @ ________ $____________________ $____________________ @ _________$____________________ $------------------------------- @ ------------- $------------------------------- Prices should be expressed on the basis of 100' with not more than three decimal places, e. gn 99.925. Fractions must not be used. E XTE N D E R S MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. These bills CANNOT be paid for by credit in Treasury Tax and Loan Accounts. METHOD OF PAYMENT Denominations Desired Number o f Pieces Maturity Value $ $ $ □ Payment to be made by...... 1,000 $ 5,000 ? 10,000 (Name o f Bank) □ By charge to our reserve account on payment date. $- $ 50,000 ?$ 100,000 $$ 500,000 $. □ 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 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 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 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 percent of the total amount (maturity value) of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment by an incorporated bank or trust company. 6. If the language of this form is changed in any respect, which, in the opinion of 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, Wednesday, May 27, 1964.