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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 E D ST A T E S D allas, Texas, January 6, 1965 TREASURY BILLS — TAX A NTICIPA TIO N SERIES ( A d d iti o n a l Issue) 1 5 5 DAYS TO MATURITY Dated November 24, 1964 $1,750,000,000 M aturing June 22, 1965 Acceptable a t face value in paym ent of income taxes due June 15, 1965. To All Banking Institutions an d Others Concerned in the Eleventh Federal Reserve District: Your attention is invited to the following statem ent giving details of a new issue of Treasury bills: T h e Treasury D epartm ent, by th is public notice, invites tenders for $1,750,000,000, or thereabouts, of 155-day Treasury bills (to m aturity d a te ), to be issued January 18, 1965, on a discount basis under com petitive and noncom petitive bidding as hereinafter provided. T h e bills of this series w ill be designated T ax A nticipation Series and represent an additional am ount of bills dated N ovem ber 24, 1964, to m ature Jun e 22, 1965, originally issued in th e am ount o f $1,504,489,000. T he additional and original bills w ill be freely interchangeable. T h ey w ill be accepted at face value in paym ent of incom e taxes due on Jun e 15, 1965, and to the extent th ey are not presented for this purpose the face am ount of these bills w ill be payable w ithout interest at m aturity. Taxpayers desiring to apply these bills in paym ent of June 15, 1965, incom e taxes have the privilege of surrendering th em to any F ederal R eserve Bank or Branch or to the Office of the Treasurer of the U n ited States, W ashington, not more than fifteen days before June 15, 1965, and receiving receipts therefor showing the face am ount of th e bills so sur rendered. T h ese receipts m ay be subm itted in lieu of the bills on or before June 15, 1965, to the D istrict Director of Internal R evenue for th e D istrict in which such taxes are payable. T h e bills w ill be issued in bearer form only, and in denom inations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity v a lu e ). T enders w ill be received at Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Standard tim e, Tuesday, January 12, 1965. Tenders w ill not be received at the Treasury D epartm ent, W ashington. Each tender m ust be for an even m ultiple o f $1,000, and in th e case o f com petitive tenders th e price offered m ust b e ex pressed on the basis o f 100, w ith not m ore than three decim als, e.g., 99.925. Fractions m ay not be used. It is urged that tenders be m ade on the printed form s and forwarded in th e special envelop es which w ill be supplied by Federal R eserve Banks or Branches on application therefor. B anking institutions generally m ay subm it tenders for account of custom ers provided the nam es of th e custom ers are se t forth in such tenders. O thers than banking institutions w ill not be perm itted to subm it tenders except for their own account. T enders w ill be received w ithout deposit from incorporated banks and trust com panies and from responsible and recognized dealers in investm ent securities. Tenders from others m ust be accom panied by paym ent of 2 percent of th e face am ount of T reas ury bills applied for, unless th e tenders are accom panied by an express guaranty of paym ent b y an incorporated bank or trust com pany. All bidders are required to agree not to purchase or to sell, or to make any agreem ents w ith respect to the purchase orsale or other disposition of any bills o f this additional issue at a specific rate or price, until after one-thirty p.m., Eastern Standard tim e, Tuesday, January 12, 1965. Im m ediately after the closing hour, tenders w ill be opened at the Federal R eserve Banks and Branches, follow ing which public announcem ent w ill be m ade by the Treasury D epartm ent of the am ount and price range of accepted bids. T hose sub m itting tenders w ill be advised of the acceptance or rejection thereof. T h e Secretary of the Treasury expressly reserves th e right to accept or reject any or all tenders, in w hole or in part, and his action in any such respect shall be final. Subject to these reser vations, noncom petitive tenders for $300,000 or less w ithout stated price from any one bidder w ill be accepted in full at the average price (in three d ecim als) of accepted com petitive bids. P aym en t of accepted tenders at th e prices offered m ust be m ade or com pleted at the Federal R eserve Bank in cash or other im m ediately available funds on January 18, 1965, provided, however, any qualified depositary w ill be perm itted to m ake paym ent by credit in its Treasury tax and loan account for not more than 50 percent of the am ount of Treasury bills allotted to it for itself and its custom ers up to any am ount for which it shall be qualified in excess of existing deposits when so notified by th e Federal R eserve B ank of its D istrict. T he incom e derived from Treasury bills, whether interest or gain from the sale or other disposition of the bills, does not have any exem ption, as such, and loss from the sale or other disposition of Treasury bills does not have any special treatm ent, as such, under the Internal R evenue Code of 1954. T h e bills are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but are exem p t from all taxation now or hereafter im posed on the principal or interest thereof b y any State, or any of the possessions of the U nited States, or b y any local taxing authority. For purposes of taxation the am ount of discount at which Treasury bills are originally sold by th e U n ited States is considered to be interest. Under Sections 454 (b ) and 1221 ( 5 ) of the Internal R evenue Code of 1954 the am ount of discount at which bills issued hereunder are sold is not considered to accrue until such bills are sold, redeem ed or otherw ise disposed of, and such bills are excluded from consideration as capital assets. Accordingly, the owner of Treasury bills (other than life insurance com panies) issued hereunder need include in his incom e tax return only the difference betw een the price paid for such bills, whether on original issue or on subsequent purchase, and the am ount actually received either upon sale or redem ption at m aturity during the taxable year for which th e return is made, as ordinary gain or loss. Treasury D epartm ent Circular No. 418 (current revision) and this notice, prescribe the term s of the Treasury b ills and govern the conditions of their issue. Copies of the circular may be obtained from any Federal R eserve Bank or Branch. Payment for this issue of Treasury bills must be m ad e or completed a t this bank or appropriate branch in cash or other immediately available funds on January 18, 1965, provided, however, any qualified depositary will be per mitted to m ake paym ent by credit in its Treasury Tax and Loan Account for not more than 50 percent of the issue price of Treasury bills allotted to it for itself an d its customers (up to the am ount for which it shall be qualified in excess of existing deposits). Please note the required agreem ent not to purchase or sell this additional issue a t a specific rate or price prior to one-thirty p.m., Eastern Standard time, Tuesday, Jan uary 12, 1965. In accordance with the above announcement, tenders will be received at this bank an d its branches at El Paso, Houston an d San Antonio, up to twelve-thirty p.m., Central Standard time, Tuesday, Jan uary 12, 1965. 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) This issue of Treasury Bills will be accepted at face value in payment of income taxes due on June 15,1965 TENDER FOR ADDITIONAL ISSUE OF TREASURY BILLS TAX ANTICIPATION SERIES 155 DAYS TO MATURITY Dated November 24, 1964 Maturing June 22, 1965 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — Branch The_____________ El Paso 79999 Houston 77001 San Antonio 78206 (Date) 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 a t the rate indicated. ..NOT TO EXCEED $300,000 NONCOMPETITIVE TENDER $. Noncompetitive tenders for $300,000 or less from any one bidder, without stated price, 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 decim al places, e. g., 99.925. Fractions $ $______ _______ must not be used. — fi^ T E N D E R S MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired Number of Pieces METHOD OF PAYMENT □ Maturity Value (3) (a) (5) (5) (5) (5) (S) $ 1,000 $ 5,000 $ 10,000 $ 50,000 $ 100,000 $ 500,000 $1,000,000 $--------------------$--------------------$--------------------- □ By charge to our Treasury Tax and Loan Account (Limited to 60% of amount allotted to depositary bank and its customers) 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 disposi tion of any bills of this additional issue at a specific rate or price, until after one-thirty p.m., Eastern Standard time. Tuesday, January 12, 1965. Delivery Instructions: □ (Subscriber's full name or corporate title) Hold in Custody Account — Member banks for own account only □ Pledge to Secure Treasury Tax and Loan Account □ Ship to ________ (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 percent 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 ban k a n d its branches at El Paso, Houston an d San Antonio, up to twelvethirty p.m., Central Standard time, Tuesday, January 12, 1965.