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FEDERAL RESERVE BANK OF DALLAS FISCAL. A G E N T O F T H E U N IT E D ST A T E S D allas, Texas, Ju ly 21, 1965 365-DAY TREASURY BILLS Dated July 31, 1965 $1,000,000,000 M aturing July 3 1 ,1 9 6 6 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: The Treasury Departm ent, by this public notice, invites tenders for $1,000,000,000, or thereabouts, of 365-day Treasury bills, for cash and in exchange for Treasury bills maturing July 31, 1965, in the amount of $1,000,462,000, to be issued oh a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be dated July 31, 1965, and will mature July 31, 1966, when the face amount will be payable without interest. They will 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 value). Tenders will be received a t Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Daylight Saving Time, Tuesday, July 27, 1965. Tenders will not be received at the Treasury Department, Washington. Each tender must be for an even multiple of $1,000, and in the case of competitive tenders the price offered must be expressed on the basis of 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. (Notwithstanding the fact th at these bills will run for 365 days, the discount rate will be computed on a bank discount basis of 360 days, as is currently the practice on all issues of Treasury bills.) It is urged th at tenders be made on the printed forms and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. Banking institutions generally may submit tenders for account of customers provided the names of the customers are set forth in such tenders. Others than banking institutions will not be perm itted to submit tenders except for their own account. Tenders will be received without deposit from incorporated banks and tru st companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by paym ent of 2 percent of the face amount of Treas ury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. Immediately after the closing hour, tenders will be opened at the Federal Reserve Banks and Branches, following which public announcement will be made by the Treasury Departm ent of the amount and price range of accepted bids. Those sub mitting tenders will be advised of the acceptance or rejection thereof. The Secretary of 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, noncompetitive tenders for $200,000 or less without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids. Settlem ent for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on August 2, 1965, in cash or other immediately available funds or in a like face amount of Treasury bills maturing July 31, 1965. Cash and exchange tenders will receive equal treatment. Cash adjustments will be made for differences between the par value of maturing bills accepted in exchange and the issue price of the new bills. The income derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, does not have any exemption, as such, and loss from the sale or other disposition of Treasury bills does not have any special treat ment, as such, under the Internal Revenue Code of 1954. T he bills are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but are exempt from all taxation now or hereafter imposed on the principal or interest thereof by any State, or any of the possessions of the United States, or by any local taxing authority. For purposes of taxation the amount of discount at which Treasury bills are originally sold by the United States is considered to be interest. Under Sections 454 (b ) and 1221 (5) of the Internal Revenue Code of 1954 the amount of 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 of Treasury bills (other than life insurance companies) 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 m aturity during the taxable year for which the return is made, as ordinary gain or loss. Treasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the term s of the Treasury bills a"d govern the conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch. Payment for this issue of Treasury bills must be m ad e or completed a t this bank or appropriate branch in cash or other immediately available funds on August 2, 1965, or in a like face am ount of Treasury bills maturing July 31, 1965. Paym ent for this issue of bills CANNOT be m ad e by credit to Treasury Tax and Loan Accounts. In accordance with the ab ove announcem ent, tenders will be received a t this b ank a n d its branches a t El Paso, Houston an d San Antonio, up to eleven-thirty-a.m., Central Standard Time, Tuesday, July 27, 1965. Tenders m ay not be entered by telephone. Yours very truly, Watrous H. Irons President (S ee reverse for te n 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 Maturing July 31,1966 Dated July 31,1965 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The____________________________________Branch E l P aso 79999 H ouston 77001 _____ (D ate) San A ntonio 78206 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 o r less from any one bidder, w ithout sta te d price, will be accepted in fu ll a t th e av erag e price (in th re e decim als) of accepted com petitive bids. P rices should be ex pressed on th e b asis of 100, w ith not m ore th a n th r e e d ec im a l p la c e s , e. g., 99.925. F ractio n s m ost not be used. COMPETITIVE TENDERS -<§>. [E X T E N D E R S MAY NOT BE E N T E R E D BY T E L EPH O N E . TEN D ER S BY W IR E , IF REC EIV ED B EFO RE TH E CLOSING HOUR, A R E A CCEPTA BLE. These bills CANNOT be paid fo r by credit in T reasu ry T ax and Loan Accounts. M ETHOD O F PAYM ENT D enom inations D esired Number of Pieces Matnrity Value <5> $ <a> $ 1,000 $ 5,000 $- . <a> $ 10,000 $50,000 $- □ P aym ent to be m ade by............................................................. (N am e of B ank) <® $ <3> $ 100,000 $<a> $ 500,000 $- □ 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 w ill perm it presentm en t in o rd er to obtain irrevocably collected funds on paym ent d ate). □ By m atu rin g bills held by. <a> $i ,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 w ill be considered an d each ten d er m u st 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 F iscal A gent of the U nited S tates, w ith notatio n on th e envelope read in g “TEN D ER FO R TREA SU RY BILLS” . 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. E nvelopes fo r subm itting ten ders 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 form should he signed by an officer of th e corporation authorized to m ake th e ten d er and th e signing of th e form by an officer of th e corporation will be construed as a representation by him th a t he h as 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 form “............................................................., a copartnership, by........................................................................ , a m em ber of th e firm ”. 5. T enders fro m those other th a n 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 o f 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 tend 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 lang u age of th is form is changed in any respect, w hich, in th e opinion o f th e S ecretary of th e T reasu ry , is m aterial, th e ten d er m ay be disregarded. (S ee reverse for announcem ent)
@FedFRASER