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F ederal reserve Ba n k of Dallas FISCA L AGENT O F TH E UNITED STATES DALLAS, TEXAS 75222 Circular No. 69-285 November 17,1969 OFFERING TREASURY BILL — TAX ANTICIPATION SERIES To All B a n k in g Institutions a n d O th e r s C o n c e r n e d in t h e E le v en th F e d e r a l R e serv e District: Y our a t te n t io n is in v ite d to t h e fo llo w in g s t a t e m e n t g iv in g d e t a il s o f a n iss u e o f T re a s u ry bills: The Treasury Department, by this public notice, invites tenders for two series of Treasury bills to the aggregate amount of $2,500,000,000, or thereabouts, as follows: 147-day bills (to maturity date) to be issued November 26, 1969, in the amount of $1,000,000,000, or thereabouts, repre senting an additional amount of bills dated October 14, 1969, and to mature April 22, 1970, originally issued in the amount of $2,006,704,000, the additional and original bills to be freely interchangeable. The bills will be accepted at face value in payment of income taxes due on April 15, 1970. 208-day bills (to maturity date) to be issued November 26, 1969, in the amount of $1,500,000,000, or thereabouts, repre senting an additional amount of bills dated October 29, 1969, and to mature June 22, 1970, originally issued in the amount of $3,004,380,000, the additional and original bills to be freely interchangeable. The bills will be accepted at face value in pay ment of income taxes due on June 15, 1970. T he bills of both series will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided and at maturity, to the extent they are not presented in payment of income taxes, their 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 (maturity value). Taxpayers desiring to apply these bills in payment of income taxes may submit the bills to a Federal Reserve Bank or Branch or to the Office of the Treasurer of the United States, Washington, not more than fifteen days before the appropriate income tax payment date. In the case of bills submitted in payment of income taxes of a corporation they shall be accompanied by a duly completed Form 503 and the office receiving these items will effect the deposit on the date the taxes are due. In the case of bills submitted in payment of income taxes of all other taxpayers, the office receiving the bills will issue receipts there for, the original of which the taxpayer shall submit on or before the date the taxes are due to the District Director of Internal Revenue for the District in which such taxes are payable. Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Standard Time, Friday, November 21, 1969. 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. 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 recognised dealers in investment securities. Tenders from others must be accompanied by payment 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. 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 the issue for which they are bidding at a specific rate or price, until after one-thirty p.m., Eastern Standard Time, Friday, November 21, 1969. 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 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 reter* vations, noncompetitive tenders for $200,000 or less for the 147-day bills and $200,000 or less for the 208-day bills, 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 November 26, 1969. Any qualified depositary will be permitted to make settlem ent by credit in its Treasury Tax and Loan account for Treasury bills allotted to it for itself and its customers. The income derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, doe* not have any exemption, as such, and loss from the sale or other disposition of Treasury bills does not have any special treatment, 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 of the circular may be obtained from any Federal Reserve Bank or Branch. In a c c o r d a n c e w ith th e a b o v e a n n o u n c e m e n t , t e n d e r s w ill b e r e c e iv e d a t this b a n k a n d its b r a n c h e s a t El P a so , H o u sto n a n d S an A n to n io , u p to f w e lv e -th irty p.m ., C entra! S t a n d a r d Time, Friday, N o v e m b e r 21, 1969. T e n d e rs m a y not b e en tered by teleph one. Yours very truly, P. E. Coldwell President (Seer v r e s d f rtender form) ees ie o This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) This issue of Treasury bills will be accepted at face value in payment of income taxes due on June 15,1970 TENDER FOR ADDITION TO TREASURY BILLS T A X A N T I C I P A T I O N SERIES Dated October 29, 1969 208 D A Y S T O M A T U R I T Y Maturing June 22, 1970 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 reverse side, as issued by the Treasury Department, 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. __________________________ N O T T O E X C E E D $200,000 NONCOMPETITIVE T E N D E R 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) of accepted competitive bids. COMPETITIVE T E N D E R S f (n ) ? $ , Prices should be ex pressed on the basis of 100, with not more than three decim al places, e. g., 99.925. Fractions must not be used. % @ % N0 J BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. ... Denomination Desired Number of Pieces METHOD OF PAYMENT Matnrltj T i U n (5) $ <> $ a o <> 2 <> 3 <> 2 (3) 1,000 5,000 $ 10,000 $ 50,000 $ 100,000 $ 500,000 $1 ,000,000 □ By charge to our Treasury Tax and Loan Account □ Payment to be made by................................................ □ By charge to our reserve account on payment date. □ ? $ $ ? s. 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). (Name of Bank) $. $ We certify that we, as well aa our customers, if any, listed hereon have agreed not to purchase or to sell, or to make any agreements with respect to the purchase or sale of other disposi tion of any bills of this issue at a specific rate or price, until after one-thirty p.n„ Eastern Standard lim e, Friday, Novembei 21, 1969. ' Delivery Instructions: ----------------------------------(S u b sc rib e r’s fu ll nam e o r c o rp o ra te title ) □ Hold in Custody Account — Member banks for own account only (drs) Ades □ Pledge . to Secure Treasury Tax and T , Loan Account | By | S h i p t O _________________ _____ -______ _________________________ (A u th o rized official s ig n a tu re a n d title ) (F o r th e a c c o u n t o f, if te n d e r is f o r a n o th e r su b sc rib e r) (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 OFFERING”. 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. 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 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)