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FEDERAL RESERVE BANK OF DALLAS F IS C A L A G E N T O F TH E U N ITE D ST A T E S Dallas, Texas, November 10, 1964 TREASURY BILLS — TAX ANTICIPATION SERIES 210 DAYS TO MATURITY Dated November 24, 1964 $1,500,000,000 Maturing June 22, 1965 Acceptable at face value in payment of income taxes due June 15, 1965. 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 210-day Treasury 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 November 24, 1964, and they will mature June 22, 1965. They will be accepted at face value in payment of income taxes due on June 15, 1965, and to the extent they are not pre sented 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, 1965, 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, 1965, 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, 1965, 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 (maturity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Standard time, Tuesday, November 17, 1964. 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. 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. Banking institutions generally may submit tenders for account of customers provided the names of the customers 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, November 17, 1964. 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 $200,000 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 November 24, 1964, provided, however, any qualified depositary will be permitted to make payment by credit in its Treasury tax and loan account for not more than 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 maturity during the taxable year for which the return is made, as ordinary gain or loss. Treasury Department 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 made or completed at this bank or appropriate branch in cash or other immediately available funds on November 24, 1964, provided, however, any qualified depositary will be per mitted to make payment 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 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 additional issue at a specific rate or price prior to one-thirty p.m., Eastern Standard time, Tuesday, November 17, 1964. 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 p.m., Central Standard time, Tuesday, November 17, 1964. 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 TREASURY BILLS TAX ANTICIPATION SERIES 210 DAYS TO MATURITY Dated November 24, 1964 Maturing June 22, 1965 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The--------------------------------------------------------Banch 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 at the rate indicated. NONCOMPETITIVE TENDER $____________________________ NOT TO EXCEED $200,000 Noncompetitive tenders for $200,000 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. ( $--------------- -$ @ COMPETITIVE TENDERS / \ $ $ @ $ Ex t e n d e r s m a y n o t be e n t e r e d b y CLOSING HOUR, ARE ACCEPTABLE. t e l e p h o n e , t e n d e r s b y w ir e , if r e c e iv e d b e f o r e t h e METHOD OF PAYMENT □ By charge to our Treasury Tax and Loan Account Denominations Desired Number of Pieces ----------- @ $ -----------@ % ----------- @ $ ------------ @ $ (Limited to 50% o f amount allotted to depositary bank and its customers) Maturity Value 1,000 $ . 5,000 $_ __ 10,000 $— - Prices should be ex pressed on the basis of 100, with not more than three decimal nieces. e. g., 99.925. Fractions -------------must not be used. □ Payment to be made by. (Name of Bank) . □ By charge to our reserve account on payment date. 50,000 ? ------------ @ $ 100,000 $____ ________ @ $ 500,000 $ -------- @ $1,000,000 $ □ 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 issue at a specific rate or price, until after one-thirty p.m., Eastern Standard time, Tuesday, November 17, 1964. Delivery Instructions: (Subscriber’s full name or corporate title) □ Hold in Custody Account— Member banks for own account only (Address) By------------------------------------------------------ □ Pledge to Secure Treasury Tax and Loan Account (Authorized official signature and title) (F or the account of, if tender is fo r another subscriber) □ Ship to____________________________ (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 bank and its branches at El Paso, Houston and San Antonio, up to twelvethirty p.m., Central Standard time, Tuesday, November 17, 1964.
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