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FEDERAL RESERVE BANK O F NEW YORK Fiscal Agent of the United States r Circular N o. 5 0 1 3 1 L M arch 23, 1961 J Offering of $1,500,000,000 of 172-Day Tax Anticipation Treasury Bills Dated April 3, 1961 Maturing September 22, 1961 T o A ll In corporated Banks and Trust Companies, and O thers Concerned, in the Second Federal R eserv e D istrict: Following is the text of a notice issued by the Treasury Department, released for publication today: T h e T r e a s u ry D ep a rtm en t, b y this p u b lic n otice, invites ten ders fo r $1,500,000,000, or th ereabouts, o f 172-day T rea su ry bills, to be issued o n a d iscou n t basis under com p etitive and n o n co m p e titiv e b id d in g as h ereinafter p rov id ed . T h e bills o f this series w ill be d e sign a ted T a x A n ticip a tion Series, th ey w ill be dated A p ril 3, 1961, and th ey w ill m ature S ep tem ber 22, 1961. T h e y w ill be a cce p te d at face value in p a ym en t o f in com e and profits ta xes due o n S ep tem ber 15, 1961, and to the extent they are n o t presen ted fo r this pu rpose the face a m ou n t o f these bills w ill be p a ya b le w ith o u t in terest at m aturity. T a x p a y e rs desir in g t o a p p ly these bills in pa ym en t o f S ep tem ber 15, 1961, in co m e and profits taxes have the privilege o f surren d erin g them to an y F ed era l R e se rv e B ank o r B ran ch o r to the O ffice o f the T rea su rer o f the U n ited States, W a sh in g ton , n ot m o re than fifteen days b e fo r e S ep tem ber 15, 1961, and receiv in g receipts th e re fo r s h o w in g the fa ce a m ou n t o f the bills s o surrendered. T h e s e re ceip ts m a y b e subm itted in lieu o f the bills on o r b efore S ep tem ber 15, 1961, t o the D is trict D ire cto r o f In tern a l R even u e fo r the D is trict in w h ich such ta xes are p a ya b le. T h e bills w ill be issued in b ea rer fo rm o n ly , and in den om in a tion s o f $1,000, $5,000, $10,000, $100,000, $500,000 and $1,000,000 (m atu rity va lu e). T e n d e rs w ill be receiv ed at F ed eral R eserve B anks and B ra n ch es up to the clo s in g hour, on e-th irty o ’ c lo ck p.m ., E a st ern S tandard tim e, T u e sd a y , M a rch 28, 1961. T e n d e rs w ill n o t be re ce iv e d at the T rea su ry D epa rtm en t, W a s h in g to n . E a ch ten der m u st be fo r an even m u ltiple o f $1,000, and in the case o f co m p etitive ten ders the p rice offered m u st be exp ressed on the basis o f 100, w ith n ot m o re than three decim als, e.g., 99.925. F ra ctio n s m a y n o t be used. I t is u rg ed that tenders be m a d e o n th e printed fo rm s and forw a rd ed in the special en v e lo p e s w h ich w ill be supplied b y F ed eral R e serv e B anks or B ra n ch es o n a pp lica tion th erefor. O th ers than b a n k in g in stitu tions w ill n ot be perm itted to subm it tenders e x ce p t fo r their o w n a ccou n t. T e n d e rs w ill be receiv ed w ith ou t dep osit fr o m in corp ora ted banks and trust com p a n ies and from resp on sib le and re co g n iz e d dealers in in vestm ent securities. T e n d e rs fr o m oth ers m u st be a c c o m panied b y p a y m e n t o f 2 p ercen t o f the fa ce a m ou n t o f T re a su ry bills applied fo r, unless the tenders are a ccom p a n ied b y an exp re ss gu a ra n ty o f p a ym en t b y an in corp ora ted bank o r trust co m p a n y . A ll b id d ers are requ ired to agree n ot to pu rch ase o r to sell, or to m ake a n y a greem ents w ith resp ect to the pu rch ase or sale o r o th e r d isp osition o f a n y bills o f this issue, until after o n e -th irty o ’ c lo c k p.m ., E astern S tandard tim e, T u esda y, M a rch 28, 1961. Im m ed ia tely a fter the clo s in g h ou r, ten ders w ill be o p e n e d at the F ed era l R eserve B an ks and B ra n ch es, fo llo w in g w h ich pu blic an n ou n cem en t w ill be m ade b y the T r e a s u ry D epa rtm en t o f the a m ou n t and p rice ran ge o f a ccep ted b ids. T h o s e su b m itting ten ders w ill be advised o f th e a ccep ta n ce o r reje ctio n th ereof. T h e S ecreta ry o f the T r e a s u ry e x p re s sly reserves the righ t to a ccep t o r re je ct any o r all ten ders, in w h ole o r in part, and his a ction in a n y such resp ect shall be final. S u b je ct to these reserva tion s, n on com p etitive ten ders fo r $300,000 o r less w ith ou t stated p rice fro m a n y o n e b idd er w ill be a cce p te d in full at the a vera ge p rice (in three d ecim a ls) o f a cce p te d co m petitive bids. P a ym en t o f a ccep ted ten ders at the prices o ffe re d m u st be m ade or com p leted at the F ed era l R es e rv e B ank in cash o r oth er im m ediately available fu n ds o n A p ril 3, 1961, p rov id ed , h ow ev er, a n y qualified d ep osita ry w ill be perm itted to m ake p a ym en t b y cred it in its T r e a s u ry T a x a n d L o a n A c c o u n t f o r n ot m o re than 50 p ercen t o f the a m ou n t o f T r e a s u ry bills a llotted to it fo r itself and its cu stom ers up t o any a m ou n t fo r w h ich it shall be qualified in e x ce s s o f e xistin g d ep osits w h en so n otified b y the F ed era l R e serv e B ank o f its D istrict. T h e in com e derived fro m T rea su ry bills, w h eth er interest o r gain fr o m the sale o r oth er d isp osition o f the bills, d o e s n ot have any ex em p tion , as such, and loss fr o m the sale o r oth er d isp osition o f T rea su ry bills d oes n ot have a n y special treat m ent, as such, u nder the Internal R even u e C od e o f 1954. T h e bills are su b ject t o estate, inheritance, g ift o r oth er excise taxes, w hether F ed eral o r State, but are e x e m p t fr o m a ll ta x a tion n o w o r hereafter im p osed o n the principal o r interest th ereof b y any State, or a n y o f the p ossession s o f the U n ited States, o r b y a n y lo ca l ta x in g a u th ority. F o r p u rp o se s o f taxation the a m ou n t o f discou n t at w h ich T r e a s u ry bills are origin a lly sold b y the U n ited States is co n sid e re d t o be interest. U n d er S ection s 4 5 4 (b ) and 1221(5) o f th e In tern a l R even u e C od e o f 1954 the a m ou n t o f d iscou n t at w h ich bills issued hereunder are sold is n ot con sid ered to a ccru e u ntil su ch bills are sold, red eem ed o r oth erw ise disp osed o f , and su ch bills are exclu d ed fr o m con sid era tion as capital assets. A c c o r d in g ly , the ow n er o f T rea su ry bills (o th e r than life in su rance c o m pa n ies) issued hereun der need in clu d e in his in co m e ta x return on ly the differen ce betw een the p rice pa id fo r su ch bills, w hether o n origin al issue o r on subsequen t pu rch ase, and the a m ou n t actu a lly receiv ed either u pon sale o r red em p tio n at m aturity d u rin g th e taxable yea r fo r w h ich th e return is m ade, as ord in a ry gain o r loss. T rea su ry D ep a rtm en t C ircu lar N o . 418, R ev ised , and this n otice, p rescrib e th e term s o f th e T rea su ry bills and govern the con d ition s o f their issue. C opies o f the circu la r m a y be ob ta in ed fr o m any F ed era l R e serv e B a n k o r B ranch. This Bank will receive tenders up to 1 :30 p.m., Eastern Standard time, Tuesday, March 28, 1961, at the Securities Department of its Head Office and at its Buffalo Branch. Please use the form on the reverse side of this circular to submit a tender, and return it in the enclosed blue envelope marked “ Tender for Treasury Bills— Tax Anticipation Series.” Tenders may be submitted by telegraph, subject to written confirmation; they may not be sub mitted by telephone. Settlement for accepted tenders must be made in cash or other immediately available funds, except that any qualified depositary may 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. A lfred H ay e s , President. (ovm) No.................................. TE N D E R FOR 172-DAY TR EA SU R Y BILLS TO BE DESIGNATED “TA X ANTICIPATION SERIES” Dated April 3, 1961 To F ed era l R eserve B a n k o f Maturing September 22, 1961 N ew Dated at ................................................... .......................................................... 1961 Y ork , Fiscal Agent of the United States. Pursuant to the provisions of Treasury Department Circular No. 418, Revised, and to the provisions of the public notice issued by the Treasury Department and printed on the reverse side of this tender, the under signed hereby offers to purchase the above described Treasury bills in the amount indicated below, and agrees to make payment therefor at your Bank on or before the issue date at the price indicated below: COMPETITIVE TENDER f D ° n o t fil1 *Mboth Com petitive and 1 j_ N on com petitive tenders on one form J $ ...................................................... (maturity value), or any lesser amount that may be awarded. Price: ................................. per 100. (P r ic e must be exp ressed zvith not m ore than three decimal places, f o r exam ple, 99.925) NONCOMPETITIVE TENDER $ ................................... ............... .. (maturity value). (N o t to ex ceed $300,000 f o r one bidder through all sou rces) At the average price of accepted competitive bids. Subject to allotment, payment for these bills will be made at your Bank on April 3, 1961, by cash or other immediately available funds, or (in the case of a qualified depositary) by credit in Treasury Tax and Loan Account of not more than 50 percent of the amount of bills allotted and the remainder in cash or other immediately available funds. W e hereby agree not to buy or to sell, or to make any agreements with respect to the purchase or sale or other disposition of any bills of this issue, until after one-thirty o’clock p.m., Eastern Standard time, Tuesday, March 28,1961. Nam e o f subscriber ................... ...................................................................................................................... Insert this tender in blue envelope marked “ Tender for Treasury Bills— _Tax Anticipation Series’*_ (P lease print) B y .................................................................................. B y ............... .. (O fficial signature(s) required) T itle .............................................................................. T itle .............. Address ............................................................................................................ (B anks submitting tenders for customer account must indicate name on line below , or attach a list) (N am e o f custom er) (Address) ( N o t e . Successful bidders w ill receive a letter o f instructions fo r m with their allotment notice to instruct us as to the disposition o f , and method o f payment for, the bills allotted to them.) IN S T R U C T IO N S : 1. N o tender fo r less than $1,000 w ill be considered, and each tender must be for an even multiple o f $1,000 (m aturity va lu e). 2. Others than banking institutions w ill not be permitted to submit tenders except fo r their ow n account. Banks submitting tenders fo r customer account m ay consolidate com petitive tenders at the same price and may consolidate noncom petitive tenders, provided a list is attached show ing the name o f each bidder, the amount bid fo r his account, and method o f payment. Form s fo r this purpose w ill be furnished on request. 3. I f the person making the tender is a corporation, the tender should be signed by an officer o f the corporation authorized to make the tender, and the signing o f the tender b y an officer o f the corporation w ill 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 b y a member o f the firm, w h o should sign in the form “ ..................................................................................... .................. a copartnership, by ..................................................................................................................... . a member o f the firm .” 4. Tenders w ill be received without deposit fro m incorporated banks and trust companies and from respon sible and recognized dealers in investment securities. Tenders from others must be accom panied b y payment of 2 percent o f the face amount o f Treasury bills applied for, unless the tenders are accom panied b y an express guaranty o f payment b y an incorporated bank or trust company. 5. I f the language o f this tender is changed Treasury, is material, the tender m ay be disregarded. in any respect, which, in the opinion o f the Secretary o f the 1 F ederal R eserve B a n k of N e w Y ork NOTICE OF ALLOTMENT OF UNITED STATES OF AMERICA TREASURY BILLS T A X ANTICIPATION SERIES March 29, 1961. Your Q competitive □ noncompetitive tender for— U N ITED S T A T E S O F A M E R IC A 1 7 2 -D A Y T R E A S U R Y BILLS— T A X A N T IC IP A T IO N SERIES D A T E D A P R IL 3 , 1 9 6 1 , D U E SEPTEM BER 2 2 , 19 6 1 has been accepted at the price of (per 100), in the amount of— $ (maturity value) Settlement therefor must be made in cash or other immediately available funds at the Federal Reserve Bank of New York on or before April 3, 1961. However, a qualified depositary may make settlement by credit to its Treasury Tax and Loan Account of not more than 50 percent of the amount payable, rounded to the next higher $1,000, provided the advice of deposit attached to the enclosed letter of instructions form is executed and returned immedi ately. If settlement is to be made by check on a bank other than the Federal Reserve Bank of New York, such check should be received by us in time for collection on April 3, 1961, otherwise it will be necessary for the bidder to pay for the securities allotted at the accepted price, plus interest to the date of collection at the equivalent rate of discount. On the enclosed letter of instructions form, please fill in instructions as to payment and dis position for the total amount of Treasury bills of this issue awarded to you, and return the letter immediately to our Government Bond Division. F ed era l R eserve B an k o f N ew Y ork , Fiscal Agent of the United States. Checked by............................................. PENDING DELIVERY TICK ET FOR GOVERNMENT BOND DIVISION □ competitive □ 2 noncompetitive UN ITE D S T A T E S O F A M E R IC A 1 7 2 -D A Y T R E A S U R Y BILLS— T A X A N T IC IP A T IO N SERIES D A T E D A P R IL 3 , 1 9 6 1 , D U E SEPTEM BER 2 2 , 1961 price of $ P U R C H A S E PRIC E MASTER M A T U R IT Y V A L U E P U R C H A S E PRIC E METHOD OF PAYMENT DISPOSITION AM OUNT Check or Cash Over the Counter Safekeeping Reserve Account Ship Treas. T. & L. Acc. Treasury Tax & Loan Allotment Transfer Delivery Teller Foreign Oper. Dhr. Form 12 ALLOTMENT NOTICE FOR SECURITIES DEPARTMENT □ competitive □ noncompetitive UNITED S T A T E S O F A M E R IC A 1 7 2 -D A Y T R E A S U R Y BILLS— T A X A N T IC IP A T IO N SERIES D A T E D A P R IL 3 , 1 9 6 1 , D U E SEPTEM BER 2 2 , 1961 price of $ 3 ALLOTMENT NOTICE FOR SECURITY FILES □ competitive □ noncompetitive UN ITED S T A T E S O F A M E R IC A 1 7 2 -D A Y T R E A S U R Y BILLS— T A X A N T IC IP A T IO N SERIES D A T E D A P R IL 3 , 1 9 6 1 , D U E SEPTEM BER 2 2 , 1961 price of Federal Reserve Bank of New York Securities Department ( 9 th Floor) 33 Liberty Street TENDER FOR TREASURY BILLS T A X A N T IC IP A T IO N SERIES (D O N O T USE T H I8 ENVELOPE FOR OTHER PUKPOSE8) New York 45, N. Y.
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