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FEDERAL RESERVE BANK O F DALLAS 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 D allas, Texas, Jan u ary 19, 1965 365-DAY TREASURY BILLS Dated Jan u ary 31, 1965 $1,000,000,000 M aturing Jan u ary 31, 1966 To All Banking Institutions a n d Others Concerned in the Eleventh Federal Reserve District: Your attention is invited to the following statem ent giving details of a new issue of Treasury bills: T h e T reasu ry D epartm ent, by th is public notice, invites ten d ers for $1,000,000,000, or thereabouts, of 365-day T reasury bills, for cash and in exchange for T reasury bills m aturing Jan u ary 31, 1965, in th e am ount of $1,000,393,000, to be issued on a discount basis under com petitive and noncom petitive bidding as h ereinafter provided. T h e bills of th is series w ill be dated Jan u ary 31, 1965, and w ill m ature Ja n u a ry 31, 1966, when th e face am ount w ill be payable w ithout interest. T hey w ill be issued in b earer form only, and in denom inations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m atu rity v alu e). T enders w ill b e received a t F ederal R eserve B anks and B ranches up to th e closing hour, one-thirty p.m ., E astern S tandard tim e, T uesday, Jan u ary 26, 1965. T enders will not be received a t th e T reasury D epartm ent, W ashington. E ach tend er m ust be for an even m ultiple of $1,000, and in th e case of com petitive tenders th e price offered m ust be expressed on th e basis of 100, w ith n o t m ore th a n th ree decim als, e.g., 99.925. Fractions m ay n o t be used. (N otw ithstanding th e fact th a t these bills w ill ru n for 365 days, th e discount ra te w ill be com puted on a bank discount basis of 360 days, as is cu rren tly th e practice on all issues of T reasury bills.) I t is urged th a t ten d ers be m ade on th e p rinted form s and forw arded in th e special envelopes which w ill be supplied by F ederal R eserve B anks or B ranches on application therefor. B anking institutions generally m ay subm it tenders for account of custom ers provided th e nam es of th e custom ers are set forth in such tenders. O thers th a n banking institutions w ill no t be p erm itted to subm it tenders except for th e ir own account. T enders w ill be received w ithout deposit from incorporated banks and tru st com panies and from responsible and recognized dealers in investm ent securities. T enders from others m ust be accom panied by paym en t of 2 p ercent of th e face am ount of T reas u ry bills applied for, unless th e ten d ers are accom panied by an express guaranty of paym ent by an incorporated ban k or tru st com pany. Im m ediately a fter th e closing hour, tend ers will be opened a t th e F ederal R eserve B anks and Branches, following w hich public announcem ent w ill be m ade by th e T reasu ry D ep artm en t of th e am ount and price range of accepted bids. T hose sub m ittin g tenders will be advised of th e acceptance or rejection thereof. T h e S ecretary of th e T reasu ry expressly reserves th e rig h t to accept or reject any or all tenders, in whole or in p art, 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 bid d er w ill b e accepted in full a t th e average price (in th ree decim als) of accepted com petitive bids. S ettlem en t for accepted ten ders in accordance w ith th e bids m ust be m ade or com pleted a t th e F ederal R eserve B ank on F ebruary 1, 1965, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing Jan u ary 31, 1965. Cash and exchange tenders w ill receive equal treatm en t. Cash adjustm ents will be m ade for differences betw een th e p ar value of m aturing bills accepted in exchange and th e issue price of th e new bills. T h e income derived from T reasu ry bills, w hether interest or gain from th e sale or o ther disposition of th e bills, does n ot have any exem ption, as such, and loss from th e sale or other disposition of T reasury bills does not have any special tre a t m ent, as such, under th e In tern al R evenue Code of 1954. T h e bills are subject to estate, inheritance, g ift or o ther excise taxes, w hether F ed eral or S tate, b u t are exem pt from all taxation now or hereafter im posed on th e principal or in terest thereof by any S tate, or any of th e possessions of th e U nited S tates, or by any local taxing authority. F o r purposes of taxation th e am ount of discount a t which T reasury bills are originally sold by th e U nited S tates is considered to be interest. U nder Sections 454 (b ) and 1221 (5 ) of th e In tern al R evenue Code of 1954 th e am ount of discount a t w hich bills issued hereunder are sold is not considered to accrue u n til such bills are sold, redeem ed or otherw ise disposed of, and such bills are excluded from consideration as cap ital assets. Accordingly, th e owner of T reasu ry bills (o th er th an life insurance com panies) issued hereunder need include in his incom e tax retu rn only th e difference betw een th e price p aid for such bills, w hether on original issue or on subsequent purchase, and the am ount actually received eith er upon sale or redem ption a t m atu rity during th e tax ab le year fo r which th e retu rn is m ade, as ordinary gain or loss. T reasu ry D ep artm en t C ircular No. 418 (cu rren t revision) and th is notice, prescribe th e term s of th e T reasu ry bills and govern th e conditions of th e ir issue. Copies of th e circular m ay be obtained from any F ed eral R eserve B ank or B ranch. Payment for this issue of Treasury bills must be m ade or completed a t this bank or appropriate branch in cash or other immediately available funds on February l r 1965, or in a like face am ount of Treasury bills maturing January 31, 1965. Payment for this issue of bills CANNOT be m ade by credit to Treasury Tax an d Loan Accounts. In accordance with the above announcem ent, tenders will be received a t this bank an d its branches a t El Paso, Houston and San Antonio, up to twelve-thirty p.m., Central Standard time, Tuesday, January 26, 1965. Tenders may not be entered by telephone. Yours very truly, W atrous H. Irons President (S ee reverse for tend er form ) This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) TENDER FOR TREASURY BILLS 365 DAYS Dated January 31, 1965 Maturing January 31, 1966 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 Prices should be ex pressed on the basis of 100, with not more than th r e e decim al p la c e s, e. g., 99.925. Fractions must not be used. $-------------- @ ------ $-------$______________ @ ______ $________ $______ I___ @ ____ $______ JggPTEN D ERS MAY NOT BE E N T E R E D BY T E L EPH O N E . T EN D ER S BY W IR E . IF RECEIV ED B EFO RE TH E CLOSING HOUR, A RE ACCEPTABLE. These bills CANNOT be paid for by credit in Treasury Tax and Loan Accounts. METHOD OF PAYMENT Denominations Desired Number of Pieces -------------@ $ 1,000 $--------------------- -------------@ $ -------------@ $ 5,000 $____________________ 10,000 $-------------- -------@ $ 50,000 $ ---- -------------@ $ 100,000 $____________________ $ 500,000 $ -------------@ □ Maturity Value (Name of Bank) □ □ shall be on la te st day which will p erm it presentm ent in order to obtain irrevocably collected funds on paym ent d ate). □□ By m atu rin g bills held by. -------------@ $1,000,000 $ Delivery Instructions: (Subscriber’s full name or corporate title) □ Hold in Custody Account—Member banks for own account only □ Pledge to Secure Treasury Tax and Loan Account □ Ship to (Address) By. (Authorised official signature and title) (For the account of, if tender is for another subscriber) ______ __ ___ ____________ (Address) IMPORTANT 1. No tender fo r less th a n value). 1,000 will be considered and each ten d er m ust be fo r an am ount in m ultiples of $1,000 (m atu rity 2. Tenders should be forw arded in an envelope clearly addressed to th is bank o r ap p ro p riate branch as Fiscal A gent of th e U nited S tates, w ith notation on the envelope reading “TEN D ER FOR TREA SU R Y BILLS”. Since envelopes received w ith this legend will not be opened until a fte r th e closing tim e specified in th e public announcem ent, com munications relatin g to other m a tte rs should not be enclosed. Envelopes fo r subm itting ten d ers m ay be requested fro m th is bank or appropriate branch. 3. A ny qualified or conditional tender will be rejected. 4. If a corporation m akes th e tender the form should be signed by an officer of th e corporation authorized to m ake the tender and the signing of the form by an officer of th e corporation will be construed as a rep resen tatio n by him th a t he has been so authorized. I f the tender is m ade by a p artn ersh ip it should be signed by a m em ber of th e firm, who should sign in th e form “ ... — ............ , a copartnership, by.....................— ..... , a m em ber of th e firm ”. 5. T enders from those other th a n incorporated banks and tru s t companies or responsible and recognized dealers in invest m ent securities will be disregarded, unless accompanied by a deposit of 2 percent of th e to tal am ount (m atu rity value) of th e T reasury bills applied fo r, o r unless th e tenders are accompanied by an express g u a ra n ty of fu ll paym ent by an incorporated bank or tr u s t company. 6. I f the language of th is form is changed in any respect, which, in th e opinion of th e S ecretary of th e T reasu ry , is m aterial, th e ten d er m ay be disregarded. (See reverse for announcem ent)
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