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FEDERAL RESERVE BANK OF DALLAS F ISC A L. A G E N T O F T H E U N IT E D S T A T E S Dallas, Texas, January 2, 1964 TREASURY CASH FINANCING To All Banking Institutions and Others Concerned in the Eleventh Federal Reserve District: There is quoted below a press statement issued by the Treasury Department today in regard to current financing: Th e Treasury’s offering of June tax anticipation bills at this time w ill replace the $2.5 billion of one-year bills maturing on January 15. Th e Treasury is deferring a decision on additional financing in January to permit a further appraisal of its cash position and the flow of tax receipts, which have recently been somewhat more favorable than had been expected. Further details on January borrowing plans, which may include an offering outside the bill area, w ill be made known as soon as possible. Tender forms for the 159-day tax anticipation Treasury Bills, dated January 15, 1964, and due June 22, 1964, accompany this announcement. Tenders w ill be received at this bank and its branches at E l Paso, Houston and San Antonio up to twelve-thirty p.m., Central Standard time, Thursday, January 9, 1964. 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) FEDERAL RESERVE BANK OF DALLAS FISCAL. A G E N T O F T H E U N IT E D ST A T E S D allas, Texas, January 2, 1964 TREASURY BILLS — TAX ANTICIPATION SERIES 159 DAYS TO MATURITY D ated J a n u a ry 15f 1964 $ 2 ,5 0 0 ,0 0 0 ,0 0 0 M aturing Ju n e 22, 1964 A cc ep ta b le a t f a c e v a lu e in p a y m e n t o f incom e t a x e s d u e June 1 5 ,1 9 6 4 . To All Banking Institutions a n d Other Concerned in the Eleventh Federal Reserve District: Your attention is invited to the fo llo w in g state m e n t g ivin g d etails o f a n e w issu e of Treasury bills: T h e Treasury D epartm ent, by this public notice, invites tenders for $2,500,000,000, or thereabouts, of 159-day Treasury bills, to be issued 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, th e y w ill be dated January 15, 1964, and th ey w ill mature June 22, 1964. T h ey will be accepted at face value in paym ent of incom e taxes due on June 15, 1964, and to th e extent th ey are not pre sented for this purpose the face am ount of these bills w ill be payable without interest at m aturity. Taxpayers desiring to apply these bills in paym ent of June 15, 1964, incom e taxes have the privilege of surrendering them to any Federal 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, 1964, and receiving receipts therefor showing the face amount of the bills so surrendered. T hese receipts m ay be subm itted in lieu of the bills on or before June 15, 1964, to the D istrict Director of Internal R evenue for the D istrict in which such taxes are payable. T he 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 b e received at Federal R eserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Standard tim e, Thursday, January 9, 1964. Tenders w ill not be received at the Treasury D epartm ent, W ashington. Each tender m ust be for an even m ultiple of $1,000, and in th e case of com petitive tenders the price offered m ust be expressed on the basis of 100, with not more 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 forms and forwarded in the special envelopes which will 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 the customers are set forth in such tenders. Others than banking institutions w ill not be perm itted to subm it tenders except for their own account. Tenders 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 the face am ount of Treas ury bills applied for, unless the tenders are accom panied b y an express guaranty of paym ent by an incorporated bank or trust com pany. 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 will be advised of the acceptance or rejection thereof. T he Secretary of the Treasury expressly reserves the 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 $400,000 or less w ithout stated price from any one bidder w ill be accepted in full at the average price (in three decim als) of accepted com petitive bids. P aym en t o f accepted tenders at the prices offered m ust be made or com pleted at the Federal R eserve B ank in cash or other im m ed iately available funds on January 15, 1964. T h e 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 pt from all taxation now or hereafter im posed on the principal or interest thereof by any State, or any of the possessions of the U n ited States, or by any local taxing authority. For purposes of taxation the am ount of discount at which Treasury bills are originally sold by the U n ited States is considered to be interest. Under Sections 45 4 ( b ) and 1221 ( 5 ) of the Internal R evenue Code of 1954 the am ount 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. 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 the 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 bills and govern the conditions of their issue. Copies of the circular m ay be obtained from any Federal R eserve Bank or Branch. P aym ent for this issue o f Treasury bills must b e m a d e or co m p leted a t this b a n k or appropriate branch in cash or other im m e d ia te ly a v a il a b le fun ds on January 15, 19 64. In a cc o rd an c e with the a b o v e a n n o u n c em en t, tenders will b e received at this b ank a n d its branches at El Paso, Houston a n d San Antonio, up to twelve-thirty p.m., Central Standard time, Thursday, January 9, 1964. Tenders m ay not b e entered by t e le p h o n e . Yours very truly, Watrous H. Irons President This issue of Treasury Bills will be accepted at face value in payment of income taxes due on June 15,1964 TENDER FOR TREASURY BILLS TAX ANTICIPATION SERIES 159 DAYS TO MATURITY Dated January 15, 1964 Maturing June 22, 1964 To: Federal Reserve Bank, Station K, Dallas, Texas 75222 or — The------------------------------------------------------- Branch 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 TENDERS $______________ NOT TO EXCEED $400,000 Noncompetitive tenders for $400,000 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 )f 1 » ~ * v .............................. -....... (£?)-................. $ ......................................... _ . ▼ ........................................ @ .................* .......................................... Prices should be expressed on the basis of 100’ with not more than th ree d ecim al places, e. g., 99.925. Fractions must not be used. TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. These bills CANNOT be paid for by credit in Treasury Tax and Loan Accounts. Number of Pieces Denominations Desired METHOD OF PAYMENT M aturity Value ....(a $ 1,000 — <a> $ 5,000 $ .<8> $ 10,000 ..(2) $ 50,000 _ □ □ Payment to be made by. □ 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). $1:,000,000 (S u b sc rib e r’s fu ll n a m e o r c o rp o ra te title ) Delivery Instructions: Hold in Custody Account—Member banks for own account only □ Pledge to Secure Treasury Tax and Loan Account □ Ship to u -n (Name of Bank) ....(job $ 500,000 $ . □ j. By maturing bills held by .............................. $ 100,000 .. .(fi b t-> (A ddress) B y -. (A u thorized official s ig n a tu re a n d title ) (F o r th e a cc o u n t of, if te n d e r is fo r a n o th e r su b scrib er) (A dd ress) 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 b e received at this b an k a n d its branches at El Paso, Houston a n d San Antonio, up to t w e lv e thirty p.m., Central Standard Time, Thursday, January 9, 1964.
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