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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)