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FE D E R A L R E S E R V E 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, D ecem ber 16, 1965 365-DAY TREASURY BILLS Dated December 31, 1965 $1,000,000,000 Maturing December 31, 1966 To All Banking Institutions and Others Concerned in the Eleventh Federal Reserve District: Your attention is invited to the following statement giving details of a new issue of Treasury bills: T he T reasury D epartm ent, b y 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 D ecem ber 31, 1965, in th e am ount of $1,002,951,000, to be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter provided. T he bills of this series will be dated D ecem ber 31, 1965, and will m ature D ecem ber 31, 1966, when th e face am ount will be payable w ithout interest. T h ey will be issued in bearer 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 value ). T enders will b e received a t Federal R eserve B anks and B ranches u p to th e closing hour, one-thirty p.m., E astern S tandard Tim e, T hursday, D ecem ber 23, 1965. T enders will not be received a t th e T reasury D epartm ent, W ashington. E ach tender 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 not more th an th ree decimals, e.g., 99.925. Fractions m ay not be used. (N otw ithstanding th e fact th a t these bills will run for 365 days, th e discount rate will be com puted on a bank discount basis of 360 days, as is currently the practice on all issues of T reasury bills.) I t is urged th a t tenders be m ade on th e p rinted form s and forwarded in th e special envelopes which will be supplied by Federal 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 customers are set forth in such tenders. O thers th an banking institutions w ill not be perm itted to subm it tenders except for th eir own account. T enders will be received w ithout deposit from incorporated banks and tru st companies and from responsible and recognized dealers in investm ent securities. T enders from others m ust be accom panied by p aym ent of 2 percent 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 company. Im m ediately after th e closing hour, tenders w ill be opened a t th e F ederal R eserve Banks and Branches, following w hich public announcem ent will be m ade by th e T reasury D ep artm en t of th e am ount and price range of accepted bids. Those sub m itting tenders will be advised of the acceptance or rejection thereof. T h e Secretary of th e T reasury 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 b e final. S ubject to these reservations, noncom petitive tenders for $200,000 or less w ithout stated price from any one bidder will b e accepted in full a t the average price (in th ree decim als) of accepted com petitive bids. S ettlem ent for accepted tenders in accordance w ith the bids m ust be m ade or com pleted a t th e Federal R eserve B ank on D ecem ber 31, 1965, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing D ecem ber 31, 1965. Cash and exchange tenders will receive equal treatm ent. Cash adjustm ents will be m ade for differences betw een th e p a r value of m aturing bills accepted in exchange and the issue price of new bills. T h e income derived from T reasury bills, w hether in terest or gain from th e sale or other disposition of th e bills, does n o t have any exem ption, as such, and loss from th e sale or other disposition of T reasu ry bills does n o t 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 other excise taxes, w hether Federal 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 State, or any of th e possessions of th e U nited States, or b y any local taxing authority. F or purposes of taxation th e am ount of discount a t which 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 Revenue Code of 1954 th e am ount of discount a t which bills issued hereunder are sold is not considered to accrue until such bills are sold, redeem ed or otherwise disposed of, and such bills are excluded from consideration as capital 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 retu rn only th e difference betw een th e price paid for such bills, w hether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption a t m atu rity during th e taxable year for w hich th e retu rn is m ade, as ordinary gain or loss. T reasury D ep artm en t C ircular No. 418 (cu rren t revision) and this 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 F ederal R eserve B ank or Branch. Payment for this issue of Treasury bills must be m ade or completed at this bank or appropriate branch in cash or other immediately availab le funds on December 31, 1965, or in a like face amount of Treasury bills maturing Decem ber 31, 1965. Payment for this issue of bills CANNOT be made by credit to Treasury Tax and Loan Accounts. In accordance with the above announcement, tenders w ill be received at this bank and its branches at El Paso, Houston and San Antonio, up to twelve-thirty p.m., Central Standard Time, Thursday, December 23, 1965. Tenders m ay not be entered by telephone. Yours very truly, Watrous H. Irons President (S ee reverse for tender 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 December 31,1965 Maturing December 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 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) o f accepted competitive bids. COMPETITIVE TENDERS I Prices should be ex pressed on the basis of 100, with not more than three decimal places, e. g., 99.925. Fractions must not be used. _@ _ -@ - J®=TENDERS 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. Denominations Desired Namber o f Pleeee METHOD OF PAYMENT □ Payment to be made by............... ............ Maturity Value .<§> $ 1,000 $__. _@ $ 5,000 $__. _@ $ 10,000 _@ $ 50,000 $ 100,000 (Name o f Bank) □ By charge to our reserve account on payment date. □ By draft enclosed (Effectual delivery of enclosed draft shall be on latest day which will permit presentment in order to obtain irrevocably collected funds on payment date). $ ._ „ . □ By maturing bills held by................................................ $ 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 □ (Authorized official signature and title) (For the account of, if tender is fo r another subscriber) Ship to____________ _________ _______ (Address) IMPORTANT 1. No tender for less than $1,000 will be considered and each tender must be for an amount in multiples of $1,000 (maturity value). 2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent of the United States, with notation on the envelope reading “ TENDER FOR TREASURY BILLS” . Since envelopes received with this legend will not be opened until after the closing time specifiedin the public announcement, communications relating to other matters should not be enclosed. Envelopes for submittingtenders may be requested from this bank or appropriate branch. 3. Any qualified or conditional tender will be rejected. 4. If a corporation makes the tender, the form should be signed by an officer of the corporation authorized to make the tender and the signing of the form by an officer o f the corporation will be construed as a representation by him that he has been so authorized. If the tender is made by a partnership it should be signed by a member of the firm, who should sign in the form “ ...................... ,............., a copartnership, by.......................... , a member of the firm” . 5. Tenders from those other than incorporated banks and trust companies or responsible and recognized dealers in invest ment securities will be disregarded, unless accompanied by a deposit of 2 percent of the total amount (maturity value) of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty of full payment by an incorporated bank or trust company. 6. If the language of this form is changed in any respect, which, in the opinion of the Secretary of the Treasury, is material, the tender may be disregarded. (See reverse for announcement)
@FedFRASER