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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 Dallas, Texas, June 21,1957 SPECIAL OFFERING TAX ANTICIPATION SERIES—TREASURY BILLS 264 DAYS To Be Dated July 3, 1957 $3,000,(M )0,000 Maturing March 24, 1958 Acceptable at Face Value in Payment of Income and Profits Taxes due on March 15, 1958. 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 $3,000,000,000, or thereabouts, of 2W-day Treasury bills, to be issued on a discount basis under competitive and non-competitive bidding as hereinafter provided. The bills of this series will be designated Tax Anticipation Series, they will be dated July 3, 1957, and they will mature March 24, 1958. They will be accepted at face value in payment of income and profits taxes due on March 15, 1958, 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, 1958, 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, 1958, and receiving receipts tiberefor showing the face amount of the bills so surrendered. These receipts may be submitted in lieu of the bills on or before March 15, 1958, 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 denominations of $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (matur ity 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, Wednesday, June 26, 1957. Tenders will not be received at the Treasu^ 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 tile 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 investment 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 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 submitting 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, non-competitive tenders for $400,000 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 July 3, 1957, provided, however, any qualified depositary will be permitted to make payment by credit in its Treasury Tax and Loan Account for Treasui^ 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. ‘“nie 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 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 t^ation now or hereafter imposed on the principal or interest thereof by any State, or any of the posses sions 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 here under 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. Accorffingly, 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 wWch 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 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 made or completed at this bank or appropriate branch in cash or other immediately available funds on July 3, 1957, provided, however, any qualified depositary will be permitted to make payment by credit in its Treasury Tax and Loan Account for the amount of Treasury bills allotted to it for itself and its customers (up to the amount for which it shall be qualified in excess of existing deposits). In accordance with the above announcement, tenders will be received at this bank and its branches at El Paso, Houston and San Antonio, up to eleven-thirty o’clock a.m., Wednesday, June 26, 1957, Central Standard Time. Tenders may not be entered by telephone. 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) T h is issu e o f T reasury B ills w ill be accepted a t fa ce value in paym ent o f incom e and profits ta x es due on March 1 5 ,1 9 5 8 . TENDER FOR TREASURY BILLS TAX ANTICIPATION SERIES D ated July 3, 1957 264 D ays To: F ederal R eserve B ank, S tation E , D allas, T exas or T he__________________________________________________ B El Paso Houston San Antonio M aturing March 2 4 ,1 9 5 8 r a n c h ___________ __________________ _ (Date) P ursuant to th e provisions o f T reasury D epartm ent Circular No. 418, R evised, and to th e provisions o f th e public announcem ent, as show n on reverse side, as issued by th e T reasury D epartm ent, th e under signed offers to purchase T reasury bills in th e am ount show n below, and agrees to pay fo r th e am ount allotted, on or b efore th e issu e date, b y th e m ethod and a t th e rate indicated. NO N-C O M PETlTlV E T E N D E R $ .................................................................... NOT TO EX C E E D $400,000 Non-Competitive tenders for $400,000 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. ( j 5 R Prices should be exI ^ ^ pressed on the basis of COMPETITIVE T E N D E R S / ft @ ft with not more than \ ^ V - — three decimal places, f « ^ .ft 99.925. Fractions ^ ^ .p ■ must not be used. TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. P aym ent for th is issu e o f bills can be m ade by credit to Treasury T ax and Loan Accounts. METHOD OP PAYMENT Pieces Maturity Value ^ --------------@ _________ @ ------------- @ ________ @ _ ------------- @ @ $ $ -I i— ti i 1,000 $---------------------5,000 $_______________ $ 10,000 ^ 100,000 . $ 500,000 ft1 nnn non $---------------------$ ______________ a. $---------------------ft $i,UUU,UUU ^---------------------- □ □ Hold in Custody Account—^Member banks for own account only Pledge to Secure Treasury Tax and Loan Account Ship to________________________ i i ^ B y drftlt 6nclOS6Q (collectible by date of issue) Q P aym en t to be m ade b y ....... ...................... nAA <» s Name of Bank) .............................. ^ charge to our reserve account D P aym en t to be made b y charge to our Treasury T ax and Loan Account Special “Advice of Credit” form for execution be mailed with allotment notice^ Delivery Instructions: □ j (Subscriber’s full name or corporate title) (A d i^M s) By. (Authorized official signature and title) (For the account of, if tender is for another subscribe) (Address) IMPORTANT 1. No tender for less than $1,000 wiU 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 tiie 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. 3. Any qualified or conditional tender will be rejected. 4. If a corporation makes the tender the form should be signed by an ofl& of the corporation authorized to make the cer tender and the signing of the form by an oflBcer 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. 6. If the language of this form is changed in any respect, which, in the opinion of Hie Secretary of the Treasury, is material, the tender may be disregarded.