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FEDERAL RESERVE BANK O F DALLAS F IS C A L A O E N T O F T H E U N IT E D S T A T E S D allas, Texas, A pril 19, 1965 365-DAY TREASURY BILLS Dated April 30, 1965 $1,000,000,000 M aturing April 30, 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 reasury D epartm ent, by this public notice, invites tenders for $1,000,000,000, or thereabouts, of 365-day T reasury bills, for cash and in exchange for T reasury bills m aturing A pril 30, 1965, in th e am ount of $1,001,439,000, to b e issued on a discount basis under com petitive and noncom petitive bidding as h ereinafter provided. T h e bills of this series will be dated A pril 30, 1965, and will m ature A pril 30, 1966, when th e face am ount will be payable w ithout interest. T hey will 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 will be received a t Federal R eserve B anks and B ranches up to th e closing hour, one-thirty p.m ., E astern S tandard T im e, F riday, A pril 23, 1965. T enders w ill 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 the basis of 100, w ith n o t m ore th a n th re e decim als, e.g., 99.925. Fractions m ay not be used. (N otw ithstanding th e fact th a t these bills w ill run for 365 days, th e discount ra te will be com puted on a bank discount basis of 360 days, as is curren tly th e practice on all issues of T reasury bills.) I t is urged th a t tenders be m ade on th e p rin ted 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 ten ders for account of custom ers provided th e nam es of th e custom ers are set forth in such tenders. O thers th an banking institutions will 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 ent of 2 p ercent of th e face am ount of T reas ury bills applied for, unless th e tenders are accom panied by an express guaranty of paym ent by an incorporated bank or tru st com pany. Im m ediately a fte r th e closing hour, ten d ers will be opened a t th e F ederal R eserve B anks and Branches, following which public announcem ent w ill be m ade by th e T reasury D epartm ent of th e am ount and price range of accepted bids. T hose sub m itting tenders w ill be advised of th e acceptance or rejection thereof. T h e S ecretary of th e T reasu ry expressly reserves th e right 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 ten d ers 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 tenders 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 A pril 30, 1965, in cash or o th er im m ediately available funds or in a like face am ount of T reasury bills m aturing A pril 30, 1965. Cash and exchange tenders will receive equal treatm en t. Cash adjustm ents w ill b e m ade fo r 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 incom e derived from T reasury bills, w hether in terest or gain from th e sale or o ther disposition of th e bills, does not 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, gift or other excise taxes, w hether F ederal 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 reasu ry 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 which bills issued hereunder are sold is not considered to accrue u n til such bills are sold, redeem ed or otherwise disposed of, and such bills are excluded from consideration as cap ital assets. Accordingly, th e owner of T reasury bills (other th a n life insurance com panies) issued hereunder need include in his incom e tax re tu rn only th e difference betw een th e price paid for such bills, w hether on original issue or on subsequent purchase, and th e am ount actually received eith er upon sale or redem ption a t m atu rity during th e taxable year for 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 reasury bills and govern th e conditions of th e ir issue. Copies of th e circular m ay be obtained from any Federal 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 April 30, 1965, or in a like face am ount of Treasury bills maturing April 30, 1965. Payment for this issue of bills CANNOT be m ad e by credit to Treasury Tax and 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, Friday, April 23, 1965. Tenders may not be entered by telephone. Yours very truly, Watrous H. Irons President (S ee reverse for ten d 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 April 30, 1965 Maturing April 30, 1966 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The------------------------------------------------------ Branch E l P aso 79999 H ouston 77001 _______________________ San A ntonio 78206 (D ate) Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and to the provisions of the public announcement, as shown on the reverse side, as issued by the Treasury Depart ment, 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 N oncom petitive ten d ers fo r $200,000 or less from any one bidder, w ithout stated price, will be accepted in fu ll a t th e average price (in th ree decim als) of accepted com petitive bids. P rices should be ex pressed on the basis of 100, w ith not m ore th an t h r e e d ecim al p la c e s , e. g., 99.925. F ractions m ust not be used. .<§>. COMPETITIVE TENDERS ----- .(§>---- jg l r ’TEN D ERS MAY NOT BE E N TE R E D BY TE L EPH O N E . TEN D ER S BY W IR E , IF REC EIV ED BEFO RE TH E CLOSING HOUR, A RE A CCEPTABLE. These bills CANNOT be paid fo r by credit in T reasu ry T ax and Loan A ccounts. M ETHOD O F PAYM ENT D enom inations D esired Number of Pieces -------------@ $ .... - @ $ _____ ________ @ □ Maturity Value $ 1,000 $5,000 $- (N am e o f B ank) 10,000 $50,000 $- $ ----------- @ $ 100,000 $_____ @ $ 500,000 $. ________ @ P aym ent to be m ade by.................................... ........................ □ By charge to our reserve account on paym ent date. □ By d ra ft enclosed (E ffectual delivery of enclosed d ra ft shall be on la te s t day w hich will perm it p resentm ent in o rd er 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 (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) IM PO RTA N T 1. No ten d er fo r less th a n $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 value). 2. T enders should be forw arded in an envelope clearly addressed to th is bank o r ap p ro p riate branch as Fiscal A g en t of the U nited S tates, w ith n otation on th e envelope read in g “TE N D E R FOR TREA SU R Y BILLS”. Since envelopes received w ith th is legend will not be opened u n til a fte r th e closing tim e specified in th e public announcem ent, com m unications rela tin g to o th er m a tte rs should n ot be enclosed. Envelopes fo r su bm itting ten ders m ay be requested from th is bank or ap p ro p riate branch. -3. Any qualified or conditional tend er w ill be rejected. 4. If a corporation m akes th e ten d er th e form should be signed by an officer o f the corporation authorized to m ake the ten d er and th e signing of th e form by an officer of th e corporation will be construed as a represen tatio n by him th a t he h as been so authorized. If th e ten der is m ade by a p artn e rsh ip i t should be signed by a m em ber of th e firm , who should sign in th e form “............................................................ , a copartnership, by.................................................................................. f a m em ber of th e firm ”. 5. T enders from those o th er th an incorporated banks and tr u s t com panies or responsible and recognized dealers in invest m ent securities will be disregarded, unless accom panied by a deposit of 2 percen t of th e to ta l am ount (m atu rity value) of th e T reasu ry bills applied fo r, or unless the ten ders are accom panied by an express g u ara n ty of fu ll paym ent by an incorporated bank o r tr u s t com pany. 6. I f th e 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, the ten d er m ay be disregarded. (See reverse for announcem ent)
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