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FEDERAL RESERVE BANK OF DALLAS FISCAL AQENT OF THE UNITED STATES D a lla s, T ex a s, Septem ber 2 0 , 1962 To All Banking Institutions and Others Concerned in the Eleventh Federal Reserve District: T h ere is qu oted below a press statem en t issued to d a y b y the T reasu ry D epartm en t in regard to current fin an cin g: Treasury Offers $3 Billion in March Tax Bills A s th e first step in m eetin g its fou rth quarter cash needs, the T rea s ury announced th e offering o f $ 3 billion in 170-d a y T a x A n ticipation bills. T h e bills, w hich are to be dated O ctober 3 , 1 9 6 2 , and m ature on M a rch 2 2 , 19 6 3 , w ill be accepted a t face valu e in p aym en t o f incom e taxes due on M a rch 1 5 ,1 9 6 3 . T h e b ills w ill be auctioned on W ed n esd ay, Septem ber 2 6 . T h e paym en t date is W ed n esd a y , O ctober 3 . A n y qu ali fied depositary w ill be perm itted to m ake paym en t b y cred it in its T reasu ry T a x and L oan A ccount. T en d ers fo r the T a x A n ticipation T rea su ry b ills w ill be received a t th is bank and a t its branches at Ell P aso, H ou ston and San A n ton io, up to eleven -th irty a m , C entral Standard tim e, W ed n esd a y , Septem ber 2 6 . O fficial form s for this offering are enclosed. Y o u rs v ery truly, W atrou s H . Iron s P resident 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 AGENT O F THE UNITED STATES Dallas, Texas, September 20, 1962 TREASURY BILLS — TAX ANTICIPATION SERIES 170 DAYS Dated October 3, 1962 $3,000,000,000 Maturing March 22, 1963 Acceptable at face value in payment of income and profits taxes due March 15, 1963 To ail 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 $3,000,000,000, or thereabouts, o f 170-day Treas ury 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 3, 1962, and they will mature March 22, 1963. They will be accepted at face value in payment o f income and profits taxes due on March 15, 1963, and to the extent they are not presented for this purpose the face amount o f these bills will be payable without interest at maturity. Taxpayers desiring to apply these bills in payment of March 15, 1963, income and profits taxes have the privilege of surrendering them to any Federal Reserve Bank or Branch or to the Office of the Treasurer o f the United States, Washington, not more than fifteen days before March 15, 1963, and receiving receipts therefor showing the face amount o f the bills so surrendered. These re ceipts may be submitted in lieu o f the bills on or before March 15, 1963, to the District Director o f Internal Revenue for the District in which such taxes are payable. The bills will be issued in bearer form only, and in denominations o f $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, Wednesday, September 26, 1962. Tenders will not be received at the Treasury Department, Washington. Each tender must be for an even multiple o f $1,000, and in the case o f 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. 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 o f 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 o f 2 percent o f the face amount o f 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 o f any bills o f this issue, until after one-thirty p.m., Eastern Daylight Saving time, Wednesday, September 26, 1962. “ 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 3, 1962, provided however, 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 o f 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 treat ment, as such, under the Internal Revenue Code o f 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 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 ) of the Internal Revenue Code of 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 o f 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 o f their issue. Copies o f 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 October 3, 1962, provided, however, any qualified depositary will be per mitted 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 the amount for which it shall be qualified in excess of existing deposits). Please note the required agreement not to purchase or sell this security prior to one-thirty p.m., Eastern Daylight Saving time, Wednesday, September 26, 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 eleven-thirty a.m., Central Standard time, Wednesday, September 26, 1962. Tenders may not be entered by telephone. Yours very truly, Watrous H. Irons President This issue of Treasury Bills will be accepted at face value in payment of income and profits taxes due on March 15, 1963 TENDER FOR TREASURY BILLS TA X ANTICIPATION SERIES 170 DAYS Dated October 3, 1962 Maturing March 22, 1963 To: or Federal Reserve Bank, Station K, Dallas 2, Texas The......................._............................................ ............Branch E l Paso Houston ________________ San Antonio (D ate) 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 without stated price from any one bidder will be accepted in full at the average price (in three decimals) o f accepted competitive bids. i COMPETITIVE TENDERS ( I a ............ $....................... ...... $.............................. < > $............................... @ ..............$........ ......... ....................... @ ........... $— .................... Prices should be ex pressed on the basis of 100, with not more than three decim al p laces, e. g., 99.925. Fractions must not be used. Egr* TENDERS MAY NOT BE ENTERED BY TELEPHONE. TENDERS BY WIRE, IF RECEIVED BEFORE THE CLOSING HOUR, ARE ACCEPTABLE. These bills MAY be paid for by credit in Treasury Tax and Loan Accounts. Number of Piecoa Denominations Desired METHOD OF PAYMENT Maturity Value @ $ @ $ □ By charge to our Treasury Tax and Loan Account. 1,000 $ 5,000 $. 10,000 ?- @ $ M $ □ Payment to be made by. (Name of Bank) 50,000 $ □ By charge to our reserve account on payment date. @ $ 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 disposition of any bills of this isBue, until after one-thirty p.m., Eastern Daylight Saving time, Wednesday, Septem ber 26, 1962. Delivery Instructions: (Snbasribar*! full nazn« or corporat« title) □ Hold in Custody Account— Member banks for own account only (Addrou) ^ □ Pledge to Secure Treasury Tax and Loan Account (Authorised official ilarnatura and title) (For the account of, If tender la for another aubscriber) □ Ship t o .............................................. .. (Addreaa) IM PORTANT 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 “ TE N D E R 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 m atters should not be enclosed. Envelopes for submitting tenders may be requested from this bank or appropriate branch. 3. A ny 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 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 fu ll payment by an incorporated bank or trust company. 6. I f the language of t.hfa 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 eleventhirty a.m., Central Standard time, Wednesday, September 26, 1962.