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FEDERAL RESERVE BANK OF DALLAS FISCAL AGENT OF THE UNITED STATES Dallas, Texas, November 1, 1962 TREASURY OFFERS $1,000,000,000 STRIP O F W EEKLY BILLS Ten series maturing weekly from January 17, 1963 to March 21, 1963. 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 strip of weekly Treasury bills: The Treasury Department, by this public notice, invites tenders for additional amounts o f ten series of Treasury bills to an aggregate amount of $1,000,000,000, or thereabouts, for cash. The additional bills will be issued November 15, 1962, will be in the amounts, and will be in addition to the bills originally issued and maturing, as follows: Amount of Additional Issuo $100,000,000 100,000,000 100,000,000 100,000,000 100,000,000 100,000,000 100,000,000 100,000,000 100,000,000 100,000,000 Original Issue Dates 1962 July 19 July 26 August 2 August 9 August 16 August 23 August 30 September 6 September 13 September 20 Maturity Dates 1963 Days from Nov. 15, 1962 to Maturity Amount Outstanding (in millions) January 17 January 24 January 31 February 7 February 14 February 21 February 28 March 7 March 14 March 21 63 70 77 84 91 98 105 112 119 126 $2,000 2,003 2,001 700 704 700 700 700 701 700 $1,000,000,000 The additional and original bills will be freely interchangeable. Each tender submitted must be in the amount of $10,000, or an even multiple thereof, and the amount tendered will be applied to each of the above series ef bills on the basis of the ratio of each series to the total of all series. (F or example, an accepted tender for $50,000 will be applied $5,000 to the issue with original date o f July 19, 1962, and $5,000 to each of the additional weekly issues through the issue with original date of September 20, 1962.) The bills offered hereunder will be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided, and at maturity their face amount will be payable without interest. They 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, Wednesday, November 7, 1962. Tenders will not be received at the Treasury Department, Washington. In the case of competitive tenders the price offered must be expressed on the basis of 100, with not more than three decimals, e.g., 99.925 Fractions may not be used. A single price must be submitted for each unit of $ 10,000, or even multiple thereof. A unit represents $1,000 face amount o f each issue o f bills offered hereunder, as previously described. 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 and Branches on application therefor. Banking institutions generally may submit tenders for account of customers provided the names o f 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 o f the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty o f payment by an incorporated bank or trust company. 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 o f the amount and price range o f accepted bids. Those submitting tenders will be advised o f the acceptance or rejection thereof. The 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. Noncompetitive tenders for $100,000 or less (in even multiples o f $10,000) without stated price from any one bidder will be accepted in full at the average price (in three decimals) o f accepted competitive bids, provided, however, that if the total o f noncompetitive tenders exceeds $200,000,000, the Secretary of the Treasury reserves the right to allot less than the amount applied for on a straight percentage basis with adjustments where necessary to the next higher multiple of $10,000. Settlement for accepted tenders in accordance with the bids must be made or completed at the Federal Reserve Bank or Branch in cash or other immediately available funds on November 15, 1962. The income derived from Treasury bills, whether interest or gain from the sale or other disposition o f 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 o f 1954. T he 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 o f the United States, or by any local taxing authority. For purposes of taxation the amount o f discount at which Treasury bills are originally sold by the United 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, 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. Purchasers of a strip of the bills offered hereunder should, for tax purposes, take such bills on to their books on the basis of their purchase price prorated to each o f the ten outstanding issues using as a basis for proration the closing market prices for each of the issues on November 15, 1962. (Federal Reserve Banks will have available a list o f these market prices, based on the mean between the bid and asked quotations furnished by the Federal Reserve Bank o f New Y ork.) Treasury Department Circular No. 418, Revised, and this notice, prescribe the terms of the Treasury bills and govern the conditions o f their issue. Copies o f the circular may be obtained fom any Federal Reserve Bank or Branch. Payment for these Treasury bills must be made or completed at this bank or appropriate branch in cash or other immediately available funds on November 15, 1962. 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, Wednesday, November 7 , 1962. 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 Addition of $100,000,000 to each series of outstanding Treasury bills maturing weekly from January 17, 1963 to March 21, 1963 T o: Federal Reserve Bank, Station K, Dallas 2, Texas or The........... ...... ........................................................... Branch El Paso Houston ................................... (Date) San Antonio Pursuant to the provisions o f Treasury Department Circular No. 418, Revised, and to the provisions o f 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 $100,000 (In multiples of $10,000 for each subscriber) Noncompetitive tenders for $100,000 or less (in even multiples of $10,000) without stated price from any one bidder will be accepted in full at the average price (in three decimals) of accepted competitive bids, provided, however, that if the total of noncompetitive tenders exceeds $200,000,000, the Secretary of the Treasury reserves the right to allot less than the amount applied for on a straight percentage basis with adjustments where necessary to the next higher multiple of $10,000. Prices should he ex pressed on the basis of 100, with not more than three decim al places, e. g., 99.925. Fractions must not be used. COMPETITIVE TENDERS -$ (in multiples of $10,000 for each subscriber) -? -@ - A single price must be submitted for each unit o f $10,000 or even multiple thereof. 8^ = MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. METHOD OF PAYMENT These bills cannot be paid for by credit in Treasury Tax and Loan Accounts. □ Payment to be made by.. □ 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). (Name of Bank) Delivery Instructions: Treasury Bills allotted will be delivered in convenient denominations. Describe by issue, if more than one of the following methods of delivery is desired. □ 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.......................................................................— (Authorised official signature and title) (F or the account of, if tender is fo r another subscriber) (Addre*») IMPORTANT 1. No tender for less than $10,000 will be considered and each tender must be for an amount in multiples of $10,000 (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. I f 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 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 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 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, Wednesday, November 7, 1962.
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