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FED ER A L RESERVE BANK O F DALLAS F I S C 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, October 5, 1966 TREASURY CASH FINANCING To A ll Banking Institutions an d Others Concerned in the Eleventh Federal Reserve District: There is quoted below a press statement issued today by the Treasury Department in regard to current financing: Sales of $ 3 .5 Billion of Tax A nticipation Bills The Treasury announced today the forthcoming auction of $3.5 billion of Tax Anticipation bills to meet seasonal cash needs. The sale includes $1.5 billion of tax bills maturing in April 1967 (in addition to the $1 billion of this issue already out standing) and $2 billion of tax bills to mature in June 1967. The bills will be sold at auction on October 11, 1966, for payment on October 18, 1966. Banks may make payment for the bills by crediting of Treasury Tax and Loan Accounts. The April tax bills, which mature April 21, 1967, may be used at face value in payment of taxes due April 15, 1967. The June tax bills mature June 22, 1967, and may be used at face value in payment of taxes due June 15, 1967. Official announcements and tender forms for the two new series of Tax Anticipation bills are enclosed, and additional copies will be furnished upon request. Tenders should be forwarded in distinctively marked envelopes to reach this bank or appropriate branch before the closing time, eleven-thirty a.m., Central Standard Time, Tuesday, October 11, 1966. 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 April 15,1967 TENDER FOR ADDITION TO TREASURY BILLS 185 DAYS Dated August 26, 1966 Maturing April 21, 1967 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 the reverse side, as issued by the Treasury Depart ment, 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 $300,000 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) o f accepted competitive bids. $- 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. s _@ _ -@ - $ COMPETITIVE TENDERS ) $ -@ - (E X T E N D E R S M A Y NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, A RE ACCEPTABLE. Denominations Desired N um ber of Pieces M aturity Value ? 1,000 ?■ 5,000 $. ? 10,000 ?. <> ? a 50,000 $. $ @ - — — METHOD OF PAYM ENT □ By charge to our Treasury Tax and Loan Account. @ ? □ Payment to be made by................................................... (Name o f Bank) □ By charge to our reserve account on payment date. □ By draft enclosed (effectual delivery o f enclosed draft shall be on latest day which will permit presentment in order to obtain irrevocably collected funds on payment date). 100,000 ?■ < > ? 500,000 $. 3 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 o f any bills of this additional issue at a specific rate or price, until after one-thirty p.m., Eastern Daylight Saving Time, Tuesday, October 11, 1966. <> $1,000,000 ?. 3 Delivery Instructions: □ (S ubscriber’s fu ll name or corporate title) Hold in Custody Account— Member banks for own account only □ By. Pledge to secure Treasury Tax and Loan Account □ (Addreaa) Ship to____________________________ (A uthorized official signature and title) (F or the account o f, i f tender is fo r another subscriber) (A ddress) IM PORTANT 1. No tender fo r less than $1,000 will be considered and each tender must be fo r an amount in multiples o f $1,000 (maturity value). 2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent o f the United States, with notation on the envelope reading “ TENDER FOR TREASU RY 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 fo r submitting tenders may be requested from this bank or appropriate branch. 3. Any qualified or conditional tender will be rejected. 4. I f 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 o f the form by an officer of the corporation will he construed as a representation by him that he has been so authorized. I f the tender is made by a partnership it should be signed by a member o f 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 o f 2 percent o f the total amount (maturity value) of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty o f full payment by an incorporated bank or trust company. 6. I f the language o f this form is changed in any respect, which, in the opinion o f the Secretary o f the Treasury, is material, the tender may be disregarded. (See reverse for announcement) FED ER AL RESERVE BANK OF DALLAS F I S C 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, October 5, 1966 TREASURY BILLS — TAX ANTICIPATION SERIES 185 DAYS TO MATURITY Dated August 26, 1966 $ 1,500,000,000 Maturing April 21, 1967 A cceptable a t face valu e in p aym en t of income taxes due A pril 15, 1967 To A ll Banking Institutions an d Others Concerned in the Eleventh Federal Reserve District: Y our attention is invited to the fo llo w in g statem ent giving details of a n ew issue o f Treasury bills: The Treasury Department, by this public notice, invites tenders for $1,500,000,000, or thereabouts, o f 185-day Treasury bills (to maturity date), to be issued October 18, 1966, on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be designated Tax Anticipation Series and represent an additional amount of bills dated August 26, 1966, to mature April 21, 1967, originally issued in the amount of $1,003,265,000. The additional and original bills will be freely interchangeable. They will be accepted at face value in payment of income taxes due on April 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 April 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 April 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 April 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 (maturity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Daylight Saving Time, Tuesday, October 11, 1966. 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 o f competitive tenders the price offered must be expressed on the basis o f 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 Treasury 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 additional issue at a specific rate or price, until after one-thirty p.m., Eastern Day light Saving Tim e, Tuesday, October 11, 1966. 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 $300,000 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 October 18, 1966, provided, how ever, any qualified depositary will be permitted to make payment by credit in its Treasury tax and loan account for 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. Paym ent for this issue of Treasury bills must be m ad e or com pleted a t this b ank or ap prop riate branch in cash or other im m ed iately a v a ila b le funds on October 18, 19 6 6 , provided, how ever, an y qualified depositary w ill be perm itted to m ake p aym en t by credit in its Treasury Tax an d Loan Account for the issue price o f Treasury bills allotted to it for itself an d its customers (up to the am o u nt for which it shall be qualified in excess of existing deposits). Please note the required agreem en t not to purchase or sell this a d d itio n a l issue a t a specific rate or price prior to on e-th irty p.m ., Eastern D aylight Saving Tim e, Tuesday, O ctober 11, 1966. In accordance w ith the above announcem ent, tenders w ill be received a t this b a n k and its branches a t El Paso, Houston an d Sun A ntonio, up to eleven -th irty a .m ., Central Standard Time, Tuesday, October 11, 1966. Tenders m ay not be entered by telephone. Yours very truly, W atrous H. Irons President This issue of Treasury bills will be accepted at face value in payment of income taxes due on June 15,1967 TENDER FOR TREASURY BILLS T A X ANTICIPATION SERIES 247 D AYS 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 (Date) San Antonio 78206 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 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) o f accepted competitive bids. COMPETITIVE TENDERS ( fn) S $ . .. . . . ---------------------------------. . . 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. $ $ ________ ___ ^ T E N D E R S M AY NOT BE ENTERED BY TELEPHONE. TENDERS BY W IRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. Denominations Desired Num ber of Pieces METHOD OF PAYM ENT M aturity Value (a) ? (a) $ (a) $ 'a) $ 1,000 5,000 10,000 50,000 100,000 □ By charge to our Treasury Tax and Loan Account $ $ $ $ $ □ Payment to be made by. .............................................. (Name o f Bank) □ By charge to our reserve account on payment date. □ By draft enclosed (effectual delivery o f enclosed draft shall be on latest day which will permit presentment in order to obtain irrevocably collected funds on payment date). $ $ 500,000 ? (a) $1:000,000 $ , (a) W e 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 o f any bills o f this issue at a specific rate or price, until after one-thirty p.m., Eastern Daylight Saving Time, Tuesday, October 11, 1966. " ' Delivery Instructions: (Subscriber's fu ll nam e or corporate title) □ Hold in Custody Account — Member banks for own account only (A d d r e s s ) By- □ Pledge to Secure Treasury Tax and Loan Account (A uthorized official signature and title) □ Ship to_____________________________ (F o r the account o f, if tender is f o r another subscriber) (A ddress) IM PORTANT 1. No tender for less than $1,000 will be considered and each tender must be fo r an amount in multiples o f $1,000 (maturity value). 2. Tenders should be forwarded in an envelope clearly addressed to this bank or appropriate branch as Fiscal Agent o f the United States, with notation on the envelope reading “ TENDER FOR TREASU RY 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 fo r submitting tenders may be requested from this bank or appropriate branch. 3. Any qualified or conditional tender will be rejected. 4. I f 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 o f the form by an officer o f the corporation will be construed as a representation by him that he has been so authorized. I f 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 o f 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 o f 2 percent o f the total amount (maturity value) of the Treasury bills applied for, or unless the tenders are accompanied by an express guaranty o f full payment by an incorporated bank or trust company. 6. I f the language of this form is changed in any respect, which, in the opinion o f the Secretary o f the Treasury, is material, the tender may be disregarded. (See reverse for announcement) FED ER AL RESERVE BANK O F DALLAS F IS C 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, October 5, 1966 TREASURY BILLS — TAX ANTICIPATION SERIES 247 DAYS TO MATURITY Dated October 18,1966 $2,000,000,000 Maturing June 22,1967 A cceptable a t face v alu e in p aym en t of income taxes due June 15, 1 967 To A ll Banking Institutions an d Others Concerned in the Eleventh Federal Reserve District: Your attention is invited to the fo llo w in g statem ent g iving details o f a n e w issue o f Treasury bills: The Treasury Department, by this public notice, invites tenders for $2,000,000,000, or thereabouts, of 247-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 October 18, 1966, and they will mature June 22, 1967. They will be accepted at face value in payment of income taxes due on June IS, 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 receiv ing 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 (maturity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m., Eastern Daylight Saving Time, Tuesday, October 11, 1966. 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 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 Daylight Sav ing Time, Tuesday, October 11, 1966. 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 $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 October 18, 1966, provided, how ever, any qualified depositary will be permitted to make payment by credit in its Treasury tax and loan account for 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. Paym ent for this issue o f Treasury bills must be m ad e or com pleted a t this b an k or ap p ro p riate branch in cash or other im m ed iately a v a ila b le funds on October 18, 1966, provided, how ever, an y qualified depositary w ill be per m itted to m ake p aym en t by credit in its Treasury Tax and Loan Account for Treasury bills allo tted to it fo r itself an d its customers (up to the am ount for which it shall be q ualified in excess of existing deposits). Please note the required a g reem en t not to purchase or sell this issue a t a specific rate or price prior to o ne-thirty p.m ., Eastern D aylig h t Saving Time, Tuesday, October 11, 1966. In accordance w ith the ab ove announcem ent, tenders w ill be received a t this b a n k an d its branches a t El Paso, Houston and San A ntonio, up to eleven -th irty a.m ., Central Standard Time, Tuesday, October 11, 1966. Tenders m ay not be entered by telephone. Yours very truly, W atrous H. Irons President
@FedFRASER