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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, October 6, 1960 TREASURY BILL OFFERINGS 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 will issue $1^2 billion of 1-year (3 6 4 -d a y ) Treasury bills, for cash or in exchange for the $2 billion of Treasury bills which mature on October 17, 1960. The new bills will be sold on an auction basis, and tenders for such bills will be received on October 11, 1960. Payment for these bills cannot be made by credit in Treasury T ax and Loan accounts. “Full details regarding the offering of the bills to be issued on October 17, 1960, and to mature on October 16, 1961, are being released at this time. “In addition, the Treasury will borrow $3 V 2 billion to cover its anticipated cash requirements during the remainder of the calendar year, including $500 million to cover the reduction in the October 17, 1960, bills. These funds will be obtained from the issuance of: $3V2 billion, or thereabouts, of 244-day Treasury Bills, Tax Anticipation Series, to be dated October 21, 1960, and to mature June 22, 1961. “These Tax Anticipation bills will be acceptable at par in payment of income and profits taxes due June 15, 1961. T hey may be paid for by credit in Treasury T ax and Loan accounts. Tenders for the bills, which will be sold on an auction basis, will be received on October 18, 1960. Full details regarding the offering of this issue of Tax Anticipation bills will be released next week.” Tenders for the one-year Special Series Treasury bills will be received at this bank and at its branches at El Paso, Houston and San Antonio, up to twelve o’clock, noon, Central Standard time, Tuesday, October 11. Official forms for this offering are enclosed. Tender forms for the T ax Anticipation Treasury bills to be dated October 21, 1960, will be mailed next week. 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 FISCAL AGENT OF THE UNITED STATES Dallas, Texas, October 6, 1960 TREASURY BILLS — SPECIAL SERIES 364 DAYS Dated October 17, 1960 $1,500,000,000 Maturing October 16, 1961 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 $1,500,000,000, or thereabouts, of 364-day Treasury bills, for cash and in exchange for Treasury bills maturing October 17, 1960, in the amount of $2,006,582,000, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be dated Oc tober 17, 1960, and will mature October 16, 1961, when the face amount will be payable without interest. They will be issued in bearer form only and in denominations $1000, $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, two o’clock p.m., Eastern Daylight Saving time, Tuesday, October 11, 1960. 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 ex pressed 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 364 days, the discount rate will be computed on a bank discount basis of 360 days, as is cur rently 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. “ 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 o f the face amount of Treasury bills ap plied 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 issue, until after two o’clock p.m., Eastern Daylight Saving time, Tuesday, October 11, 1960. “ 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 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 $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. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank on October 17, 1960, in cash or other immediately available funds or in a like face amount of Treasury bills maturing October 17, 1960. 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 the 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 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 o f 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, Revised, 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 available funds on October 17, 1960, or in a like face amount of Treasury bills maturing October 17, 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 two oclock p.m., Eastern Daylight Saving time, Tuesday, October 11, 1960. 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 twelve o’clock noon Central Standard time, Tuesday, October 11, 1960. Tenders may not be entered by telephone. Yours very truly, Watrous H. Irons President TENDER FOR TREASURY BILLS SPECIAL SERIES 364 Days Dated October 17, 1960 Maturing October 16, 1961 To: Federal Reserve Bank, Station K, 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 i ? ........................... @ ..........? pressed on the basis of 100, with not more than COMPETITIVE TENDERS / $.... @ .............. $ three decimal places, e. g., 99.925. Fractions S................................ @ .,..........$ not be used. . must TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR. ARE ACCEPTABLE. METHOD OF PAYMENT Denominations Desired I Number of Pieces Maturity Value $ @ $ 1,000 $5,000 1- 10,000 $$ 100,000 $@ $ 500,000 $- □ By maturing bills held by-------------------□ Payment to be made by. (Name of Bank) $ $1 ,000,000 $- □ 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). We certify that we, as well as 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 or other disposition of any bills of this issue, until after two o’clock p.m., Eastern Daylight Saving time, Tuesday, October 11, 1960. ___________________________________________________________ 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 ........................... (Authorized 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 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 incoporated 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 El Paso, Houston and San Antonio, up to twelve o’clock noon, Central Standard time, Tuesday, October 11, 1960. F E D E R A L R E S E R V E BAN K O F D A LLA S 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, October 11, 1960 TREASURY BILLS — TAX ANTICIPATION SERIES 244 DAYS Dated October 21, 1960 $3,500,000,000 Maturing June 22, 1961 Acceptable at face value in payment of income and profits taxes due June 15, 1961. 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 $3,500,000,000, or thereabouts, of 244-day Treas ury bills, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be designated Tax Anticipation Series, they will be dated October 21, 1960, and they will mature June 22, 1961. They will be accepted at face value in payment of income and profits taxes due on June 15, 1961, 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 June 15, 1961, 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 June 15, 1961, and receiving receipts therefor showing the face amount of the bills so surrendered. These receipts may be submitted in lieu of the bills on or before June 15, 1961, 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 (maturity value). “ Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, two o’clock p.m., Eastern Daylight Saving time, Tuesday, October 18, 1960. 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. “ 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 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 this issue until after two o’clock p.m., Eastern Daylight Saving time, Tuesday, October 18, 1960. “ 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 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 $500,000 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 October 21, 1960, provided, however, any qualified depository 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 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 o f discount at which Treasury bills are originally sold by the United States is considered to be interest. Under Sections 454 (b ) and 1221 (5 ) o f 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, 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 October 21, 1960, 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). Please note the required agreement not to purchase or sell this security prior to two o’clock p.m., Eastern Daylight Saving time, Tuesday, October 18, 1960. 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 twelve o’clock noon, Centra! Standard time, Tuesday, October 18, 1960. 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 June 15, 1961. TENDER FOR TREASURY BILLS TAX ANTICIPATION SERIES 244 DAYS Dated October 21, 1960 Maturing June 22, 1961 To: Federal Reserve Bank, Station K, 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 $500,000 Noncompetitive tenders for $500,000 or less without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids. Prices should be ex$.................. ..................@ ...... ......$- .........-..... pressed on the basis of ( 100, with not more than COMPETITIVE TENDERS / $ ................ ............... @ ....... ....... $ ...... ........ three decimal places, e. g., 99.925. Fractions $ ................ ..................@ ...... ....... $............. must not be used. r S P TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THF CLOSING HOUR, ARE ACCEPTABLE. METHOD OF PAYMENT Denominations Desired Number of Pieces Maturity Value ---<§> $ 1,000 $ 5,000 $ □ By charge to our Treasury Tax and Loan account. □ By maturing bills held by------- 10,000 $ 100,000 $ 500,000 $1 ,000,000 Delivery Instructions: □ Hold in Custody Account—Member banks for own account only □ 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). We certify that we, as well as 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 or other disposition of any bills of this issue, until after two o’clock p.m., Eastern Daylight Saving time, Tuesday, October 18, 1960. _________________________________________________ _ (Subscriber’s full name or corporate title) (A ddress) By..................................................................................... (Authorized official signature and title) □ Pledge to Secure Treasury Tax and Loan ACCOUnt □ Ship to (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 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 El Paso, Houston and San Antonio, up to twelve o’clock noon, Central Standard time, Tuesday, October 18, 1960.
