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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, Ju n e 17, 1965 365-DAY TREASURY BILLS Dated June 30, 1965 $1,000,000,000 M aturing June 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 reasu ry D ep artm en t, by th is 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 Ju n e 30, 1965, in th e am ount of $1,001,222,000, to be issued on a discount basis u nder com petitive and noncom petitive bidding as herein after provided. T h e bills of th is series w ill b e dated Ju n e 30, 1965, and w ill m ature Ju n e 30, 1966, w hen th e face am ount w ill be payable w ithout interest. T hey 'will be issued in bearer form only, and in denom inations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 an d $1,000,000 (m atu rity v alu e). T enders w ill b e received a t F ed eral R eserve B anks and B ranches u p to th e closing hour, on e-thirty p.m ., E astern D aylight Saving T im e, T hursday, Ju n e 24, 1965. T enders w ill not be received a t th e T reasury D ep artm en t, 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 u st b e expressed on th e basis of 100, w ith n o t m ore th a n th re e decim als, e.g., 99.925. F ractions m ay not b e used. (N otw ithstanding th e fa c t th a t these bills w ill ru n fo r 365 days, th e discount ra te w ill b e com puted on a b ank discount basis of 360 days, as is cu rren tly th e practice on all issues of T reasu ry b ills.) I t is urged th a t ten d ers b e m ade on th e p rin ted form s and forw arded in th e special envelopes w hich w ill b e supplied b y F ed eral R eserve B anks o r B ranches on application therefor. B anking institutions generally m ay su b m it tend ers fo r account of custom ers provided th e nam es of th e custom ers are set fo rth in such tenders. O thers th a n banking institution s w ill no t b e p erm itted to su b m it ten d ers except fo r th e ir own account. T enders w ill b e received w ithout deposit from incorporate d banks and tru st com panies and from responsible and recognized dealers in investm ent securities. T enders from others m u st b e 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 b y an express guaranty of paym ent by an incorporated ban k o r tru st com pany. Im m ediately a fte r th e closing hour, ten ders w ill b e opened a t th e F ed eral R eserve B anks an d B ranches, following which public announcem ent w ill b e m ade b y th e T reasury D epartm en t of th e am ount and p rice range of accepted bids. T hose sub m itting ten ders w ill b e advised of th e acceptance o r rejection thereof. T h e S ecretary o f th e T reasu ry expressly reserves th e rig h t to accept or reject any o r all tenders, in w hole or in p a rt, and his action in any such respect shall b e final- S ubject to these reservations, noncom petitive ten d ers fo r $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 tend ers 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 Ju n e 30, 1965, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing Ju n e 30, 1965. Cash and exchange tenders w ill receive equal treatm en t. Cash adjustm ents w ill 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 incom e derived from T reasu ry bills, w hether in terest or gain from th e sale or o ther disposition o f th e bills, does n o t have any exem ption, as such, and loss from th e sale o r o th er disposition of T reasu ry bills does no t have any special tre a t m ent, as such, u n d er th e In tern al R evenue Code of 1954. T h e bills are su b ject to estate, inheritance, g ift o r o th er excise taxes, w hether F ed eral or S tate, b u t are exem pt from all tax atio n now or h e reafter im posed on th e princip al o r in terest th ereo f by any S tate, or an y of th e possessions of th e U nited S tates, o r by any local taxing authority. F o r purposes of taxation th e am ount of discount a t w hich T reasury bills are originally sold b y 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 ow ner of T reasu ry bills (o th er th an life insurance com panies) issued hereunder need include in h is incom e ta x re tu rn only th e difference betw een th e p rice p aid fo r 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 taxab le y ear for which th e retu rn is m ade, as ordinary gain or loss. T reasu ry D ep artm ent C ircular No. 418 (c u rre n 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 o r B ranch. Paym ent for this issue of Treasury bills must b e m ad e or completed a t this ban k or ap p ro p riate branch m cash or other immediately availab le funds on June 30, 1965, or in a like face am ount of Treasury bills maturing June 30, 1965. Paym ent for this issue of bills CANNOT be m ad e by credit to Treasury Tax a n d Loan Accounts. In accordance with the ab ove announcem ent, tenders will be received a t this b an k a n d its branches a t El Paso, Houston an d San Antonio, up to eleven-thirty a.m., Central Standard Time, Thursday, June 24, 1965. Tenders m ay 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 June 30, 1965 Maturing June 30, 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 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 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. Prices should be ex pressed on the basis of 100, with not more than th r e e decimal p la c es, e. g., 99.925. Fractions must not be used. COMPETITIVE TENDERS EX TEND ERS 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 of Piacea Maturity Value (5> $ <5> $ (job $ <a> $ 1,000 $ 5,000 $— □ Payment to be made by......................................................... □ B y charge to our reserve account on pay m en t d ate. □ By d ra ft enclosed (E ffectual delivery of enclosed d ra ft shall be on la te s t day w hich w ill p erm it p resen tm ent in order to obtain irrevocably collected fu n as on paym ent d a te ). □ By m atu rin g bills held by. (N am e of B ank) 10,000 ? 50,000 $ <® $ 100,000 $— <® $ 500,000 ? <® $l;,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) IMPORTANT 1. No te n d er fo r less th a n $1,000 w ill be considered and each ten d er m ust be fo r a n 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 b an k o r ap p ro p riate branch as F iscal A gent o f th e U nited S tates, w ith no tatio n on th e envelope read in g “TEN D ER FOR TREA SU R Y B ILLS”. Since envelopes received w ith th is legend will n o t 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 o t be enclosed. Envelopes fo r subm itting tend ers m ay be requested from th is bank or ap p ro p riate branch. 3. A ny qualified o r conditional ten d er w ill be rejected. 4. I f a corporation m akes th e ten d er th e fo rm should be signed by an officer of th e corporation authorized to m ake th e ten d er and th e signing o f th e 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 th e ten d er is m ade by a p artn e rsh ip it should be signed by a m em ber of th e firm , who should sign in th e fo rm “............................................................., a copartnership, by.................................................................................. , a m em ber of th e firm ”. 5. T enders fro m those o th er th a n incorporated banks and tr u s t com panies o r responsible and recognized dealers in in vest m ent securities will be disregarded, unless accom panied by a deposit of 2 percent of th e to ta l am ount (m atu rity value) of th e T reasu ry bills applied fo r, o r unless th e ten d ers 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 lan gu ag e o f th is form is changed in any respect, w hich, in th e opinion of th e S ecretary of th e T reasu ry , is m aterial, th e te n d er m ay be disregarded. (S ee reverse for announcem ent)
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