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FEDERAL RESERVE BANK O F DALLAS FISCAL AGKNT O F THE UNITED STATES Dallas, Texas, Septem ber 16, 1965 365-DAY TREASURY BILLS Dated September 3 0 ,1 9 6 5 $1,000,000,000 M aturing September 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: The Treasury D epartment, 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 September 30, 1965, in the amount of $3,202,999,000, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be dated September 30, 1965, and will mature September 30, 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 atu rity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Daylight Saving Time, Friday, September 24, 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 that 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 subm it 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 paym ent 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 D epartm ent of the amount and price range of accepted bids. Those sub m itting 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 September 30, 1965, in cash or other immediately available funds or in a like face amount of Treasury bills maturing September 30, 1965. Cash and exchange tenders will receive equal treatm ent. 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, b u t 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 U nited 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 a t 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 and 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 av ailab le funds on September 30, 1965, or in a like face am ount of Treasury bills maturing Septem ber 30, 1965. Paym ent for this issue of bills CANNOT be m ad e by credit to Treasury Tax an d Loan Accounts. In accordance with the ab ove announcem ent, tenders will be received a t this bank an d its branches a t El Paso, Houston an d San Antonio, up to eleven-thirty a.m., Central Standard Time, Friday, September 24, 1965. Tenders may not be entered by telephone. Yours very truly, W atrous H. Irons President (See 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 September 30,1965 Maturing September 30,1966 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The-----------------------------------B r a n c h E l P aso 79999 H ouston 77001 ____________________________________ S an 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 tend ers fo r $200,000 o r less from any one bidder, w ithout sta te d price, w ill be accepted in fu ll a t th e averag e price (in th ree decim als) of accepted com petitive bids. P rices should be ex pressed on th e basis of 100, w ith not m ore th a n t h r e e d ecim al p la c e s , e. g., 99.925. F ractio ns m ust not be used. COMPETITIVE TENDERS 1 $ 1 $ - ..................... - E X T E N D E R S MAY NOT BE E N TE R E D BY TE L EPH O N E . TEN D ERS BY W IRE, IF REC EIV ED BEFO RE TH E CLOSING HOUR, A RE ACCEPTA BLE. These bills CANNOT be paid fo r by credit in T reasury 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 $_ $ 10,000 $. $ 50,000 $. □ 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 presentm ent in order to obtain irrevocably collected funds on paym ent d ate). □ By m atu rin g bills held by. (N am e of B ank) $ 100,000 $. .<§> $ 500,000 $_ .@ $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 □ Ship to (Authorized official signature and title) (For the account of, if tender is for another subscriber) ______________ - -— (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 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 no tation on th e envelope read in g “TE N D E R FO R TREA SU R Y BILLS” . Since envelopes received w ith th is legend w ill 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 re la tin g to o th er m a tte rs should n ot be enclosed. Envelopes fo r su bm itting ten d ers m ay be requested from th is bank or ap p ro p riate branch. 3. A ny qualified or conditional ten d 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 of th e 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 tation 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 ersh ip it should be signed by a m em ber o f th e firm , who should sign in th e form “................................................-........... , a copartnership, by.................................................................................. t a m em ber of th e firm ”. 5. T enders from those other th a n incorporated banks and tru s t com panies o r responsible and recognized dealers in invest 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 tend ers are accom panied by an express g u ara n ty o f fu ll paym ent by an incorporated bank o r tr u s t com pany. 6. If th e language of 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 ten d er m ay be disregarded. (S ee reverse for announcem ent)
@FedFRASER