View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

F ederal

reserve

Bank

Dallas

of

FISCAL AGENT OF THE UNITED STATES

DALLAS, TEXAS

75222
Circular No. 67-48
March 1, 1967

TREASURY BILLS — TAX ANTICIPATION SERIES
101 DAYS TO MATURITY
Dated October 18, 1966

$2,700,000,000

M a t u r in g

June 22, 1967

Acceptable at face value in paym ent of income taxes due June 15, 1967
To All Banking Institutions and Others Concerned
in the Eleventh Federal Reserve District:
Your attention is invited to the following statement giving details of an issue of Treasury bills:
The Treasury Department, by this public notice, invites tenders for $2,700,000,000, or thereabouts, of 101-day Treasury
bills (to m aturity date), to be issued March 13, 1967, on a discount basis under competitive and noncompetitive bidding as
hereinafter provided. T he bills of this series will be designated Tax Anticipation Series and represent an additional amount
of bills dated October 18, 1966, to mature June 22, 1967, originally issued in the amount of $2,006,632,000, (an additional
$800,885,000 was issued December 12, 1966). The additional and original bills will be freely interchangeable. They will be
accepted at face value in payment of income taxes due on June 15, 1967, 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, 1967, income 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, 1967, 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, 1967, 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, $50,000, $100,000, $500,000 and $1,000,000
(m aturity value).
Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern
Standard Time, Tuesday, March 7, 1967. 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. I t 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 cutomers 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 recognized
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 this issue at a specific rate or price, until after one-thirty p.m., Eastern Standard
Time, Tuesday, March 7, 1967.
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 D epartment 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 $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 March 13, 1967, provided, how­
ever, any qualified depositary will be perm itted to make payment by credit in its Treasury tax and loan account for 50 percent
of the amount of 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 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 m aturity during the taxable year for which the return is
made, as ordinary gain or loss.
Treasury Departm ent 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.

Payment for this issue of Treasury bills must be m ade or completed at this bank or appropriate branch in cash or
other immediately available funds on March 13, 1967, provided, however, any qualified depositary will be permitted to
m ake paym ent by credit in its Treasury Tax and Loan Account for 50 percent of 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 a b ov e announcement, tenders will be received at this bank and its branches at El Paso,
Houston and San Antonio, up to twelve-thirty p.m., Central Standard Time, Tuesday, March 7, 1967. Tenders my 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)

This issue of Treasury bills will be accepted at face value in payment of income taxes due on June 15,1967

TENDER FOR ADDITION TO TREASURY BILLS
TAX ANTICIPATION SERIES
101 DAYS TO MATURITY
Dated October 18,1966

Maturing June 22,1967

To: Federal Reserve Bank, Station K, Dallas, Texas 75222
or —
The____________ ________________________Branch
El Paso 79999

Houston 77001

San Antonio 78206

(D ate)

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.
NONCOMPETITIVE TENDER $____________________________ NOT TO EXCEED $400,000
Noncom petitive tenders for $400,000 or less from any one bidder, w ithout stated price, will be accepted in
full a t the average price (in th ree decim als) of accepted com petitive bids.

COMPETITIVE TENDERS

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.

-- ------ @ ---------

(E X T E N D E R S MAY NOT BE E N TE R E D BY T E L EPH O N E . T E N D E R S BY W IR E, IF RECEIV ED BEFO RE TH E
CLOSING HOUR, A RE ACCEPTABLE.

Denominations Desired
N u m b er of
Pieces

METHOD O F PAY M EN T

M a tu rity V alue

(5) $
(a) $

1,000 $
5,000 $

(5) $
(a) $

10,000 $
50,000 $

□

By charge to our T reasu ry T ax and Loan Account
(L im ite d to 50% of a m o u n t allotted to d e p o sitary b a n k a n d its
cu sto m ers)

□

P aym ent to be m ade by.

□

By charge to our reserve account on paym ent date.

□

By d ra ft enclosed (effectual delivery of enclosed d ra ft
shall be on la test day which will perm it presentm ent in
ord er to obtain irrevocably collected funds on paym ent
d ate).

(N am e of Bank)

- <> $ 100,000 $
a
(a) $ 500,000 $
. (5) $1 ,000,000 $

W e certify th a t we, as well as our custom ers, if any, listed
hereon have agreed not to purchase or to sell, o r to make any
agreem ents with respect to the purchase or sale or oth er disposi­
tion of any bills of th is issue a t a specific ra te or price, until
a f te r o n e - th ir ty p.m., E a s te r n S ta n d a rd T im e, T u esd a y .
M arch 7, 1967.

Delivery Instructions:
□

(S u b sc rib e r’s fu ll n a m e o r c o rp o ra te title )

Hold in Custody Account — Member
banks for own account only

(A ddress)

By-

□

Pledge to Secure Treasury Tax and
Loan Account

□

Ship to ___ ________________________

(A u th o rized official s ig n a tu re an d title )

(F o r th e acco u n t of. if te n d e r is fo r a n o th e r su b scrib er)
(A ddress)

IMPORTANT
1. No ten d er fo r less th a n $1,000 will be considered and each ten d er m ust be fo r an am ount in m ultiples of $1,000 (m atu rity
value).
2. Tenders should be forw arded in an envelope clearly addressed to th is bank o r ap p ro p riate branch as Fiscal A gent of the
U nited S tates, w ith notation on th e envelope read ing “TEN D ER FOR TREA SU RY BILLS”. Since envelopes received
w ith th is legend will not be opened until a fte r th e closing tim e specified in th e public announcem ent, com m unications
relatin g to oth er m a tte rs should not be enclosed. Envelopes fo r subm itting ten d ers may be requested from this bank or
ap p ro p riate branch.
3. A ny qualified or conditional ten d er will be rejected.
4. If a corporation m akes th e tend er th e form should be signed by an officer of th e corporation authorized to m ake the
tend er and th e signing of th e form by an officer of the corporation will be construed as a represen tatio n by him th a t he
has been so authorized. If th e ten der is made by a p artn ersh ip it should be signed by a m em ber of th e firm, who
should sign in th e form “.......................................................... , a copartnership, by.................................................................................. ,
a m em ber of th e firm ".
6. Tenders from those o th er th a n incorporated banks and tru s t com panies or responsible and recognized dealers in invest­
m ent securities will be disregarded, unless accompanied by a deposit of 2 percent of th e to tal am ount (m atu rity
value) of th e T reasu ry bills applied fo r, or unless th e tenders are accompanied by an express g u aran ty of full paym ent
by an incorporated bank or tr u s t company.
6. If th e language of th is form is changed in any respect, which, in the opinion of th e S ecretary of th e T reasury, is m aterial,
th e tend er m ay be disregarded.
(See reverse for announcement)