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F E D E R A L R E S E R V E BAN K O F D A LLA S F IS C A L A S E N T O F TH E U N ITE D S T A T E S D allas, Texas, January S, 1961 TREASURY BILLS — SPECIAL SERIES 365 DAYS Dated January 15, 1961 $1,500,000,000 Maturing January 15, 1962 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 Departm ent, by this public notice, invites tenders for $ 1,500,000,000, or thereabouts, o f 365-day Treasury bills, for cash and in exchange for Treasury bills maturing January 15, 1961, in the amount o f $1,503,740,000, to be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter provided. The bills o f this series w ill be dated January 15, 1961, and w ill mature January 15, 1962, when the face amount w ill be payable without interest. T hey w ill be issued in bearer form only, and in denominations o f $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (m aturity value.) “ Tenders w ill be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty o’clock p.m ., Eastern Standard tim e, W ednesday, January 11, 1961. Tenders w ill not be received at the Treasury Departm ent, W ashington. Each tender must be for an even m ultiple o f $1,000, and in the case o f com petitive tenders the price offered must be ex pressed on the basis o f 100, with not more than three decimals, e.g., 99.925. Fractions may not be used. (N otwithstanding the fact that these bills w ill run for 365 days, the discount rate w ill be com puted on a bank discount basis o f 360 days, as is cur rently the practice on all issues o f Treasury b ills.) It is urged that tenders be made on tire printed form s and forwarded in the special envelopes which w ill be supplied by Federal Reserve Banks or Branches on application therefor. “ Others than banking institutions w ill not b e perm itted to subm it tenders except for their own account. Tenders w ill be received without deposit horn incorporated banks and trust com panies and from responsible and recognised dealers in invest ment securities. Tenders from others must be accom panied b y paym ent o f 2 percent o f the face am ount o f Treasury bills ap plied for, unless the tenders are accom panied by an express guaranty o f paym ent by an incorporated bank or trust com pany. “ A ll 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 o f any bills o f this issue, until after one-thirty o’clock p.m ., Eastern Standard tim e, W ednesday, January 11, 1961. “Im m ediately after the closing hour, tenders w ill be opened at the Federal Reserve Banks and Brandies, follow ing which public announcement w ill be made by the Treasury Departm ent o f the amount and price range o f accepted bids. Those sub m itting tenders w ill be advised o f the acceptance or rejection thereof. T he Secretary o f 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, noncom petitive tenders for $400,000 or less without stated price from any one bidder w ill b e accepted in fu ll at the average price (in three decim als) o f accepted com petitive bids. Settlem ent for accepted tenders in accordance with the bids must be made or com pleted at the Federal Reserve Bank on January 16, 1961, in cash or other im m ediately available funds or in a like face amount o f Treasury bills maturing January 15, 1961. Cash and exchange tenders w ill receive equal treatm ent. Cash adjustments w ill be made for differences between the per value o f maturing bills accepted in exchange and the issue price o f the new bills. “T h e incom e derived from Treasury bills, whether interest or gain from the sale or other disposition o f the bills, does not have any exem ption, as such, and loss from the sale or other disposition o f Treasury bills does not have any special treatment, as such, under the Internal Revenue Code o f 1954. T he bills are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but are exem pt from all taxation now or hereafter im posed on the principal or interest thereof by any State, or any o f the possessions o f the U nited States, or by any lo a d taxing authority. For purposes o f taxation the amount o f discount at which Treasury bills are originally sold by the U nited States is considered to be interest. Under Sections 454 (b ) and 1221 (5 ) o f the Internal Revenue Code o f 1954 the amount o f discount at which bills issued hereunder are sold is not considered to accrue until such bills are sold, redeem ed or otherwise disposed of, and such bills are excluded from consideration as capital assets. A ccordingly, the owner o f Treasury bills (oth er than life insurance com panies) issued hereunder need include in his incom e 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 redem ption at m aturity during the taxable year for which the return is made, as ordinary gain or loss. “Treasury Departm ent Circular N o. 418, R evised, and this notice, prescribe the term s o f the Treasury bills and govern the conditions o f 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 January 16, 1961, or in a like face amount of Treasury bills maturing January 15, 1961. 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 one-thirty o’clock p.m.. Eastern Standard time, Wednesday, January 11, 1961. 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-thirty o'clock, p.m., Central Standard time, Wednesday, January 11, 1961. 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) TENDER FOR TREASURY BILLS SPECIAL SERIES 365 DAYS Dated January 15, 1961 Maturing January 15, 1962 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(3) $ ........ $ ...„ ................ pressed on the basis of 100, with not more than COMPETITIVE TENDERS $.................. ..................@ ........ ....... $ .................... three decimal places, e. g., 99.925. Fractions $ .................. ..................@ ........ ....... $ .................... must not be used. liggp TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IP RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. S 1 Denominations Desired Number o f Pieces METHOD OF PAYMENT Maturity Value □ By maturing bills held by-------------------- $ 1,000 $ 5,000 $ .... % 10,000 $ .... $ 100,000 -@ $ 500,000 - @ $1 ,000,000 $ .... -@ □ 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 o f any bills of this issue, until after one-thirty o’clock p.m., Eastern Standard time, Wednesday, Jan uary 11, 1961.________________________________________________________ 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 fo r 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 o f 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 o f 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 twelvethirty o’clock, p.m., Central Standard time, Wednesday, January 11, 1961.
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