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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 ED S T A T E S D a lla s, T e x a s, A p ril 6 , 1 9 6 0 S P E C IA L SERIES 365 T R E A S U R Y BILLS DAYS $ 2 ,00 0 ,000,000 D a t e d A p r il 1 5 , 1 9 6 0 M a tu r in g A p ril 1 5 , 1 9 6 1 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 h e T rea su ry D e p a r tm e n t, b y th is p u b lic n o tice, in v ite s ten d ers for $ 2 ,0 0 0 ,0 0 0 ,0 0 0 , or th erea b o u ts, o f 3 6 5 -d a y T rea su ry b ills, for ca sh an d in e x ch a n g e for T rea su ry b ills m a tu rin g A p r il 15, 1960, in th e a m o u n t o f $ 2 ,0 0 3 ,3 1 4 ,0 0 0 , t o b e issu ed on a d isco u n t b a sis u n d er c o m p e titiv e and n o n c o m p e titiv e b id d in g as h erein a fter p ro v id ed . T h e b ills o f th is series w ill b e d a ted A p ril 15, 1 960, an d w ill m atu re A p r il 15, 1961, w h en th e fa c e a m o u n t w ill b e p a y a b le w ith o u t in te r e st. T h e y w ill b e issu ed in bearer fo rm o n ly , an d in d en o m in a tio n s o f $ 1 ,0 0 0 , $ 5 ,0 0 0 , $ 1 0 ,0 0 0 , $ 1 0 0 ,0 0 0 , $ 5 0 0 ,0 0 0 an d $ 1 ,0 0 0 ,0 0 0 (m a tu r ity v a lu e ) . “T e n d e r s w ill b e re c e iv e d a t F e d e r a l R e se r v e B a n k s and B ra n ch es u p to th e clo sin g hour, o n e-th irty o ’clo c k p .m ., B a ste r n S ta n d a rd tim e , T u e sd a y , A p ril 12, 1960. T e n d e r s w i l l b e r e c e iv e d a t t h e F e d e r a l R e s e r v e B a n k s o f P h i l a d e l p h i a a n d C h ic a g o a n d a t t h e B a l t im o r e B r a n c h o f t h e F e d e r a l R e s e rv e B a n k o f R ic h m o n d o n l y r e s p e c t iv e d is tr ic ts , e x c e p t in th o s e c a s e s w h e r e b id d e r s lo c a t e d fro m b id d e rs w hose p r in c i p a l p la c e s o f b u s in e s s in o t h e r a r e a s c u s t o m a r il y e n t e r t h e i r t e n d e r s t h r o u g h a re lo c a t e d in t h e ir P h i l a d e l p h i a , C h ic a g o T en d ers w ill n o t b e r e c e iv e d a t th e T rea su ry D e p a r tm e n t, W a sh in g to n . E a c h te n d e r m u st b e for an e v e n m u ltip le o f $ 1 ,0 0 0 , an d in th e ca se o f c o m p e titiv e ten d ers th e p ric e offered m u st lae ex p ressed on th e b asis o f 100, w ith n o t m ore th a n th ree d ecim a ls, e.g., 9 9 .9 2 5 . F ra ctio n s m a y n o t b e u sed . (N o tw ith s ta n d in g th e fa c t th a t th e s e b ills w ill ru n for 3 6 5 d ays, th e d isco u n t rate w ill b e co m p u ted on a b a n k d isco u n t b a sis o f 3 6 0 d ays, as is cu rren tly th e p ra ctice on a ll issu es o f T rea su ry b ills .) I t is u rged th a t ten d ers b e m a d e on th e p r in ted form s an d forw ard ed in th e s p e c ia l e n v e lo p e s w h ich w ill b e su p p lie d b y F ed era l R e se r v e B a n k s or B ra n ch es on a p p lic a tio n th erefor. o r B a l t im o r e . “O th ers th a n b a n k in g in s titu tio n s w ill n o t b e p e r m itte d to s u b m it ten d ers e x c e p t for th e ir ow n a cco u n t. T e n d e r s w ill b e re c e iv e d w ith o u t d e p o sit fro m in corp orated b an k s an d tru st c o m p a n ie s an d fro m r esp o n sib le an d reco g n ized d ea lers in in v e s t m e n t secu rities. T e n d e r s from o th ers m u st b e acco m p a n ied b y p asm ien t o f 2 p e r c e n t o f th e fa c e a m o u n t o f T rea su ry b ills ap p lie d for, u n less th e ten d ers are acco m p a n ied b y an ex p ress g u a ra n ty o f p a y m e n t b y an in corp orated b an k or tr u st co m p a n y . “A ll b id d ers are req u ired to agree n o t to p u rch a se or to sell, or to m ak e a n y a g reem en ts w ith resp e c t t o th e p u rch a se or sa le or o th er d isp o sitio n o f a n y b ills o f th is issu e, u n til a fter o n e -th ir ty o ’clo ck p .m .. E a ste r n S tan d ard tim e , T u e sd a y , A p ril 12, 1 960. “Im m e d ia te ly a fte r th e c lo sin g hour, ten d ers w ill b e o p en ed a t th e F ed era l R e se r v e B a n k s an d B ran ch es, fo llo w in g w h ich p u b lic a n n o u n cem en t w ill b e m a d e b y th e T rea su ry D e p a r tm e n t o f th e a m o u n t an d p ric e ran ge o f a c c e p te d b id s. T h o s e su b m ittin g ten d ers w ill b e a d v ise d o f th e a c c e p ta n c e or re je c tio n th ereo f. T h e S ecreta ry o f th e T rea su ry e x p r e ssly reserv es th e rig h t to a c c e p t or re je c t a n y or a ll ten d ers, in w h o le or in p art, and h is a ctio n in a n y su ch r e sp e c t sh a ll b e final. S u b je c t to th e s e reserv a tio n s, n o n c o m p e titiv e ten d ers fo r $ 4 0 0 ,0 0 0 or le ss w ith o u t sta te d p ric e fro m a n y o n e b id d er w ill b e a c c e p te d in fu ll a t th e a v era g e p rice ( in th ree d e c im a ls ) o f a ccep ted c o m p e titiv e b id s. S e ttle m e n t for a c cep ted ten d ers in accord an ce w ith th e b id s m u st b e m a d e or c o m p le te d a t th e F e d e r a l R e se r v e B a n k on A p ril 15, 1960, in cash or oth er im m e d ia te ly a v a ila b le fu n d s or in a lik e fa c e a m o u n t o f T rea su ry b ills m atu rin g A p r il 15, 1960. C ash and ex ch a n g e ten d ers w ill r e c e iv e eq u a l trea tm en t. C ash a d ju stm en ts w ill b e m a d e for d ifferen ces b e tw e e n th e par v a lu e o f m atu rin g b ills a c cep ted in ex ch a n g e an d th e issu e p rice o f th e n ew b ills. “T h e in co m e d eriv ed from T rea su ry b ills, w h e th er in te r e st or gain fro m th e s a le or o th er d isp o sitio n o f th e b ills , d o es n o t h a v e a n y ex em p tio n , as su ch , an d lo ss fro m th e sa le or o th er d isp o sitio n o f T rea su ry b ills d o es n o t h a v e a n y sp e c ia l trea tm en t, as su ch , u n d er th e In tern a l R e v e n u e C od e o f 19 5 4 . T h e b ills are su b je c t to e sta te , in h erita n ce, g ift or o th er e x c ise ta x es, w h eth er F e d e r a l or S ta te , b u t are e x e m p t fro m a ll ta x a tio n n o w or h erea fter im p o sed on th e p rin cip a l or in te r e st th e r e o f b y a n y S ta te , or a n y o f th e p o ssessio n s o f th e U n ite d S ta te s, or b y a n y lo c a l ta x in g a u th o rity . F o r p u rp o ses o f ta x a tio n th e a m o u n t o f d isco u n t a t w h ich T rea su ry b ills are o rig in a lly so ld b y th e U n ite d S ta te s is co n sid ered to b e in terest. U n d er S e c tio n s 4 5 4 ( b ) an d 1221 ( 5 ) o f th e In tern a l R e v e n u e C ode o f 195 4 th e am o u n t o f d isc o u n t a t w h ich b ills issu ed h ereu n d er are sold is n o t con sid ered to a ccru e u n til su ch b ills are sold , r ed eem ed or oth erw ise d isp o sed of, an d su ch b ills are e x clu d e d fro m co n sid era tio n as ca p ita l a sse ts. A cco rd in g ly , th e ow ner o f T rea su ry b ills (o th e r th a n life in su ran ce c o m p a n ie s) issu ed h ereu n d er n e e d in clu d e in h is in co m e ta x retiurn o n ly th e d ifferen ce b e tw e e n th e p ric e p a id for su ch b ills, w h e th er on o rigin al issu e or on su b seq u en t p u rch ase, an d th e a m o u n t a c tu a lly r e c e iv e d eith e r u p o n sa le or red em p tio n a t m a tu rity d u rin g th e ta x a b le y ea r for w h ich th e retu rn is m a d e, as o rd in ary g a in or loss. “T rea su ry D e p a r tm e n t C ircular N o . 4 1 8 , R e v is e d , an d th is n o tic e , p rescrib e th e term s o f th e T rea su ry b ills a n d g o v ern th e c o n d itio n s o f th eir issu e. C o p ies o f th e circu lar m a y b e o b ta in e d fro m a n y F e d e r a l R e se r v e B a n k or B ra n ch .” T h e sp e c ia l p ro v isio n , to lim it a n y ten d ers re c e iv e d b y th e F ed era l R e se r v e B a n k s o f P h ila d e lp h ia and C hicago and b y th e B a ltim o re B ra n ch o f th e F ed era l R e se r v e B a n k o f R ich m o n d , to b id d ers w h o se p rin cip a l p la ce s o f b u sin ess are lo c a ted in su ch d istric ts (e x c e p t th a t b id d ers lo c a ted in o th er areas w h o se b id s are c u sto m a r ily en tered th rou gh th e s e b an k s m a y do s o ) , w ill a p p ly o n ly to ten d ers for th is issu e an d is n ecessa ry b eca u se th e s e b an k s w ill b e c lo se d on A p ril 15, 1960, th e issu e d a te o f th e b ills. P a y m e n t for a c cep ted ten d ers a t th e s e t h r e e p o in ts m a y b e m a d e in regu lar cou rse on M o n d a y , A p ril 18. 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 April 15, 1960, or in a like face amount of Treasury bills maturing April 15, 1960. Payment for this issue of bills CANNOT be made by credit to Treasury Tax and Loan Account. Please note the required agreement not to purchase or sell this security prior to 1:30 o’clock p.m.. Eastern Standard time, Tuesday, April 12, 1960. In accordance with the above announcement, tenders will be received at this bank and its branches at E Paso, l Houston and San Antonio, up to twelve-thirty o’clock p.m.. Central Standard time, Tuesday, April 12, 1960. Tenders may not be entered by telephone. Yours very truly. Watrous H. Irons P resident This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) TENDER FOR TREASURY BILLS SPECIAL SERIES 365 Days Dated AprU 15, 1960 Maturing April 15, 1961 To: Federal Reserve Bank, Station E, Dallas, Texas or The....................................................................................... Branch El Paso Houston ---------------------------------------- San Antonio (Date) Pursuant to the provisions of 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. NONCOMPETITIVE TENDER ....... ..........................NOT TO EXCEED $400,000 Noncompetitive tenders for $400,000 or less without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids. Prices should be ex$ pressed on the basis of 100, with not more than COMPETITIVE TENDERS @ $ three decimal places, e. g., 99.925. Fractions $ .... .. . . ... $ . @ must not be used. TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. S Denominations Desired N um ber of P ie c M METHOD OF PAYMENT M a tu rity V alue □ 1,000 $_. 5,000 $... ------ @ (Name of Bank) □ 100,000 ---------- @ 500,000 ---------- @ $ 1,000,000 $ By charge to our reserve account on payment date. □ 10,000 $ _ .....------ @ Payment to be made by.......... .......... ...... 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 issue, until after one-thirty o'clock p.m.. Eastern Standard Time, Tuesday, April 12, 1960. ___________________ Delivery Instructions: □ Hold in Custody Account—Member banks for own account only ( S u b s e r i b u r 'f l f u l l n a m a o r o o r p o m t u t i t l u ) (A d d re ss) By ( A u t h o r i z e d o f f ic ia l s i s r u a t u r e a n d t i t l e ) □ □ Pledge to Secure Treasury Tax and Loan Account Ship to___________________ ______ (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 s u b s c rib e r) (A d d re ss) 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 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 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 the Secretary of the Treasury, is material, the tender may be disregarded. Tenders will be received at this bank and its branches at E Paso, Houston and San Antonio, up to twelvel thirty o’clock p.m.. Central Standard time, Tuesday, April 12, 1960.
