The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BANK OF 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 Dallas, Texas, February 16, 1966 365-DAY TREASURY BILLS Dated February 28, 1966 $1,000,000,000 Maturing February 28, 1967 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 hills: The Treasury Department, 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 February 28, 1966, in the amount o f $1,000,705,000, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be dated February 28, 1966, and will mature February 28, 1967, 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 (matu rity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Standard Time, Wednesday, February 23, 1966. 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 that 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 permitted to submit tenders except for their own account. Tenders will be received without deposit from incorporated banks and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by payment o f 2 percent o f 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 Department of the amount and price range of accepted bids. Those sub mitting tenders will be advised o f 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. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on February 28, 1966, in cash or other immediately available funds or in a like face amount of Treasury bills maturing February 28, 1966. 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 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. The 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 maturity during the taxable year for which the return is made, as ordinary gain or loss. Treasury Department Circular No. 418 (current revision) and this notice, prescribe the terms of the Treasury bills and govern the conditions of their issue. Copies o f the circular may be obtained from any Federal Reserve Bank or Branch. Payment for this issue of Treasury bills must be made or completed at this bank or appropriate branch in cash or other immediately availab le funds on February 28, 1966, or in a like face amount of Treasury bills maturing February 28, 1966. 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, W ednesday, February 23, 1966. Tenders may not be entered by telephone. Yours very truly, Watrous H. Irons President (See 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 ADDITION TO TREASURY BILLS 365 DAYS D a t e d F e b r u a r y 28, 196 6 M a t u r in g F e b r u a r y 2 8 , 1 9 6 7 T o : F e d e r a l R e s e r v e B a n k , S ta tio n K , D a lla s , T e x a s 7 5 2 2 2 or — The B ran ch El Paso 79999 Houston 77001 San Antonio 78206 _____________________________ (Date) P u r s u a n t t o t h e p r o v is io n s o f T r e a s u r y D e p a r t m e n t C ir c u la r N o . 4 1 8 (c u r r e n t r e v is io n ) a n d t o th e p r o v is io n s o f t h e p u b lic a n n o u n c e m e n t, a s s h o w n o n th e r e v e r s e s id e , a s is s u e d b y t h e T r e a s u r y D e p a r t m e n t, t h e u n d e r s ig n e d o ff e r s t o p u r c h a s e T r e a s u r y b ills in t h e a m o u n t s h o w n b e lo w , a n d a g r e e s t o p a y f o r th e a m o u n t a llo tte d , o n o r b e f o r e t h e is s u e d a te , b y t h e m e t h o d a n d a t th e r a t e in d ic a te d . N O N C O M P E T IT IV E TENDER $ __________________________________ JN O T T O E X C E E D $ 2 0 0 ,0 0 0 Noncompetitive tenders for $200,000 or less from any one bidder, without stated price, will be accepted in full at the average price (in three decimals) o f accepted competitive bids. / t C O M P E T IT IV E T E N D E R S / --------------------------------------------------- \ J \ S______________________ (a) _________$_____________________ » <K P L. $ ---------------------------------- @ ------------- $ -------------------------------- Prices should be expressed on the basis o f 100, with not more than th ree d ecim al places, e. g., 99.925. Fractions must not be used. E X T E N D E R S M A Y NOT BE ENTERED BY TELEPHONE. TENDERS BY W IRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. These bills CANNOT be paid fo r by credit in Treasury Tax and Loan Accounts. Denominations Desired Number of Pieces METHOD OF PAYMENT Maturity Value □ Payment to be made by.......................................................... @ $ 1 ,0 0 0 $ __________ @ $ 5 ,0 0 0 $_________________ ---------------- @ $ 1 0 ,0 0 0 $ ------------------------ten n on OU,UUU <p--------------------------- (n) <R ----------------$ @ $ __________ @ @ -....... (Name o f Bank) ^ _ . . . . , □ By charge to our reserve account on payment date. |-] g y ^raft enclosed (Effectual delivery o f enclosed draft shall beon latest day which will permit presentment in order to obtain irrevocably collected funds on payment 1 0 0 ,0 0 0 $ $ date)- 5 0 0 ,0 0 0 _$_________________ D By matUrinS bU1S heW by..................................................... $ 1 ,0 0 0 ,0 0 0 _$_________________ D e liv e r y I n s t r u c t io n s : ( S u t a « i i ^ i u i i ^ o ; c o r p ^ t n i i ) ............. □ H o ld in C u s t o d y A c c o u n t — M e m b e r b a n k s f o r o w n a c c o u n t o n ly □ P le d g e t o s e c u r e T r e a s u r y T a x a n d Loan A ccou n t ________________________________________________________________ (Address) By | —| S h ip t o TAuthori^dofficiai'signature »nd~titie7 __ _______ (For the account of, if tender is for another subscriber) ----------------------------------------------------------------------------------------------------- (Address) IM PORTANT 1. No tender fo r less than $1,000 will be considered and each tender must be fo r an amount in multiples o f $1,000 (maturity value). 2. Tenders should he 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 TREASU RY BILLS” . Since envelopes received with this legend will not be opened until after the closing time specified in the public announcement, communications relating to other matters should not be enclosed. Envelopes for submitting tenders may be requested from this bank or appropriate branch. 3. Any qualified or conditional tender will be rejected. 4. I f a corporation makes the tender, the form should be signed by an officer o f the corporation authorized to make the tender and the signing o f the form by an officer o f the corporation will be construed as a representation by him that he has been so authorized. I f the tender is made by a partnership it should be signed by a member o f the firm, who should sign in the form ................................................. , a copartnership, by..............................................................................., a member o f 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 o f 2 percent o f the total amount (maturity value) o f the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty o f full payment by an incorporated bank or trust company. 6. I f the language o f this form is changed in any respect, which, in the opinion o f the Secretary o f the Treasury, is material, the tender may be disregarded. (See reverse fo r announcement)
@FedFRASER