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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 August 5, 1959 CASH FINANCING To all Banking Institutions and Others Concerned in the Eleventh Federal Reserve District: There is quoted below a press statement issued today by the Treasury Department in regard to current financing: “The Treasury Department plans to raise approximately $1.7 billion of new cash. It w ill raise $700 million through the sale of additional weekly Treasury bills beginning with the bill issue on August 13. An addi tional amount of $ 1 billion w ill be borrowed through the sale at auction of a further amount of the T a x Anticipation Treasury Bills dated July 8, 1959, due March 22, 1960. “The first step will include the issue of an additional $200 million of 91-day bills on August 13. Tenders for the T a x Anticipation Bills w ill be received on August 13 for payment on August 19. “On the basis of present estimates this completes the Treasury’s financing needs for the first quarter of the current fiscal year.” Tenders for the issue of T a x Anticipation Treasury bills w ill be received at this bank and at its branches at E l Paso, Houston and San Antonio, up to eleventhirty o’clock, a.m., Central Standard Tim e, on August 13. Official forms for that purpose will be mailed as soon as possible. However, if the forms are not received in sufficient time to enable the completed tenders to reach this bank or the appropriate branch by the closing time, tenders may be entered by letter or by telegram, subject to confirmation on official tender forms. Yours very truly, Watrous H. Irons President This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) FEDERAL RESERVE BANK OF DALLAS F I S 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, August 7, 1959 ADDITION TO TAX ANTICIPATION SERIES — TREASURY BILLS 216 DAYS TO MATURITY Dated July 8, 1959 $1,000,000,000 Maturing March 22, 1960 Acceptable at face value in payment of income and profits taxes due on March 15, 1960 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: “The Treasury Department, by this public notice, invites tenders for $1,000,000,000, or thereabouts, of 216-day Treasury bills (to maturity date), to be issued August 19, 1959, on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be designated Tax Anticipation Series and represent an additional amount of bills dated July 8, 1959, to mature March 22, 1960, originally issued in the amount of $3,005,203,000. The additional and original bills will be freely interchangeable. They will be accepted at face value in payment of income and profits taxes due on March 15, 1960, and to the extent they are not presented for this purpose the face amount of these bills will be payable without interest at maturity. Taxpayers desiring to apply these bills in payment of March 15, 1960, income and profits taxes have the privilege of surrendering them to any Federal Reserve Bank or Branch or to the Office of the Treasurer of the United States, Washington, not more than fifteen days before March 15, 1960, and receiving receipts therefor showing the face amount o f the bills so surrendered. These receipts may be submitted in lieu o f the bills on or before March 15, 1960, to the District Director of Internal Revenue for the District in which such taxes are payable. The bills will be issued in bearer form only, and in denomi nations o f $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (maturity value). “ Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty o’clock p.m., Eastern Daylight Saving Time, Thursday, August 13, 1959. 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 o f 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. 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. _ “ 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 invest ment securities. Tenders from others must be accompanied by payment of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty o f payment by an incorporated bank or trust company. “ All bidders are required to agree not to purchase or to sell, or to make any agreements with respect to the purchase or sale or other disposition of any bills of this additional issue, until after one-thirty o ’clock p.m., Eastern Daylight Saving Time, Thursday, August 13, 1959. “ 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 o f 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 reser vations, 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. Payment of accepted tenders at the prices offered must be made or completed at the Federal Reserve Bank in cash or other immediately available funds on August 19, 1959, provided, how ever, any qualified depositary will be permitted to make payment by credit in its Treasury tax and loan account for Treasury bills allotted to it for itself and its customers up to any amount for which it shall be qualified in excess of existing deposits when so notified by the Federal Reserve Bank of its District. “ 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 treatnV'nt> 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 ®tate> or any of the possessions of the United States, or by any local taxing authority. For purposes of taxation the amount o f f scount 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 o f 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, Revised, and this notice, prescribe the terms of the Treasury bills and govern conditions of their issue. Copies of the circular may be obtained from any Federal Reserve Bank or Branch.” ot, ^a ^men* *or *his issue of Treasury bills must be made or completed at this bank or appropriate branch in cash or er immediately available funds on August 19 , 1959 , provided, however, any qualified depositary will be permitted to ^oke payment by credit in its Treasury Tax and Loan Account for the amount of Treasury bills allotted to it for itself n its customers (up to the amount for which it shall be qualified in excess of existing deposits). Please note the required agreement not to purchase or sell this security prior to 1:30 o’clock p.m., Eastern Daylight Saving Time, Thursday, August 13, 1959. In accordance with the above announcement, fenders will be received at this bank and its branches at El Paso, Houston and San Antonio, up to eleven-thirty o’clock a.m., Central Standard Time, Thursday, August 13 , 1959 . Tenders may not be entered by telephone. Yours very truly, Watrous H. Irons President This issue of Treasury Bills will be accepted at face value in payment of income and profits taxes due on March 15, 1960. TENDER FOR ADDITION TO TREASURY BILLS TAX ANTICIPATION SERIES 216 Days to Maturity Maturing March 22, 1960 Dated July 8, 1959 To: Federal Reserve Bank, Station K, Dallas, Texas or The___________________________ El Paao Houston Branch San Antonio (Date) Pursuant to the provisions o f Treasury Department Circular No. 418, Revised, and to the provisions of the public announcement, as shown on reverse side, as issued by the Treasury Department, the under signed 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. __________________________NOT TO EXCEED $200,000 NONCOMPETITIVE TENDER $. 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. ( 9 /a « Prices should he ex pressed on the basis o f 100, with not more than COMPETITIVE TENDERS ( (n ) $ $ _ ......... . three decimal p la ce s, g., 99.925. Fractions _ $ _ ------------------ e. - -@ must not be used. arsp TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Payment for this issue of bills can be made by credit to Treasury Tax and Loan Account. Denominations Desired Number of METHOD OF PAYMENT Piecei M aturity Value @ ? @ $ 1,000 ? 5,000 $- 10,000 ?@ $ 100,000 $ @ ? 500,000 ?. .,000,000 $,@ □ By charge to our Treasury Tax and Loan Account. □ Payment to be made by.................................................. (Name of 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). All bidders are required to agree not to purchase or to sell, or to make any agreements with respect to the purchase or sale or other disposition of any bills of this additional issue, until after one-thirty o'clock p.m., Eastern Daylight Saving Time, Thursday, August 13, 1959._____________ Delivery Instructions: □ Hold in Custody Account— Member banks for own account only □ Pledge to Secure Treasury Tax and Loan Account □ Ship to_ (Subscriber’s full name or corporate title) (Address) By.. (Authorised official signature and title) (For the account of, if tender is for another subscriber) (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 o f 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 specified in the public announcement, communications relating to other matters should not be enclosed. Envelopes for submitting tenders are mailed with the announcing circulars. Any qualified or conditional tender will be rejected. 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 of 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 per cent 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. 8. 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. Tenders will be received at this bank and its branches at El Paso, Houston and San Antonio, up to eleventhirty o’clock a.m., Central Standard Time, Thursday, August 13, 1959.
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