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FEDERAL RESERVE BANK O F NEW YORK Fiscal Agent of the .United States rC ircu la r N o. 5 0 5 8 1 July 1 3 , 1 9 6 1 J L Offering of $3,500,000,000 of 240-Day Tax Anticipation Treasury Bills Dated July 26, 1961 Maturing March 23, 1962 T o A ll In corporated Banks and T rust Companies, and O thers Concerned, in the S econd F ederal 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 r y D e p a r tm e n t , b y th is p u b lic n o t ic e , in v ite s t e n d e r s f o r $3 ,500 ,000 ,000 , o r t h e r e a b o u ts , o f 2 4 0 -d a y T r e a s u r y b ills , t o b e is s u e d o n a. d is c o u n t b a s is u n d e r c o m p e t it iv e a n d n o n c o m p e t it iv e b id d in g a s h e r e in a fte r p r o v id e d . T h e b ills o f th is s e r ie s w ill b e d e s ig n a t e d T a x A n t ic ip a t io n S e r ie s , t h e y w ill b e d a t e d J u ly 26, 1961, a n d t h e y w ill m a tu r e M a r c h 23, 1962. T h e y w ill b e a c c e p t e d at fa c e v a lu e in p a y m e n t o f in c o m e a n d p r o fits ta x e s d u e o n M a r c h 15, 1962, a n d t o th e e x te n t t h e y a r e n o t p r e s e n t e d fo r th is p u r p o s e th e fa c e a m o u n t o f th e se b ills w ill b e p a y a b le w it h o u t in te r e s t a t m a tu r ity . T a x p a y e r s d e s ir in g t o a p p ly t h e s e b ills in p a y m e n t o f M a r c h 15, 1962, in c o m e a n d p r o fits t a x e s h a v e th e p r iv ile g e o f s u r r e n d e r in g th em t o a n y F e d e r a l R e s e r v e B a n k o r B r a n c h o r t o th e O ffic e o f th e T r e a s u r e r o f th e U n it e d S ta te s , W a s h in g t o n , n o t m o r e th an fifte e n d a y s b e f o r e M a r c h 15, 1962, a n d r e c e iv in g r e c e ip t s t h e r e fo r s h o w i n g th e fa c e a m o u n t o f th e b ills s o s u rr e n d e r e d . T h e s e r e c e ip t s m a y b e s u b m it t e d in lie u o f th e b ills o n o r b e f o r e M a r c h 15, 1962, to th e D is t r ic t D i r e c t o r o f I n t e r n a l R e v e n u e f o r th e D is t r ic t in w h ic h s u c h ta x e s are p a y a b le . T h e b ills w ill b e is s u e d in b e a r e r fo r m o n ly , a n d in d e n o m in a t io n s o f $1,000, $5,000, $1 0,00 0, $1 00,0 00, $5 00,000 a n d $1,000 ,000 (m a t u r ity v a lu e ) . T e n d e r s w ill b e r e c e iv e d a t F e d e r a l R e s e r v e B a n k s a n d B r a n c h e s u p t o th e c lo s in g h o u r , o n e - t h ir t y o ’ c l o c k p .m ., E a s t e r n D a y lig h t S a v in g tim e , T h u r s d a y , J u ly 20, 1961. T e n d e r s w ill n o t b e r e c e iv e d a t th e T r e a s u r y D e p a r tm e n t , W a s h in g t o n . E a c h t e n d e r m u s t b e fo r an e v e n m u lt ip le o f $1,000, a n d in th e c a s e o f c o m p e t it iv e t e n d e r s th e p r ic e o ff e r e d m u s t b e e x p r e s s e d o n th e b a s is o f 100, w it h n o t m o r e th a n th r e e d e c im a ls , e.g ., 99.925. F r a c t io n s m a y n o t b e u s e d . I t is u r g e d t h a t t e n d e r s b e m a d e o n th e p r in te d f o r m s a n d fo r w a r d e d in th e s p e c ia l e n v e lo p e s w h ic h w ill b e s u p p lie d b y F e d e r a l R e s e r v e B a n k s o r B r a n c h e s o n a p p lic a t io n t h e r e fo r . O t h e r s th a n b a n k in g in s titu tio n s w ill n o t b e p e r m itt e d to s u b m it t e n d e r s e x c e p t f o r th e ir o w n a c c o u n t . T e n d e r s w ill b e r e c e iv e d w it h o u t d e p o s it f r o m in c o r p o r a t e d b a n k s a n d tru st c o m p a n ie s a n d fr o m r e s p o n s ib le a n d r e c o g n iz e d d e a le r s in in v e s t m e n t s e c u r itie s . T e n d e r s f r o m o t h e r s m u s t b e a c c o m p a n ie d b y p a y m e n t o f 2 p e r c e n t o f th e fa c e a m o u n t o f T r e a s u r y b ills a p p lie d f o r , u n le s s t h e . te n d e r s a re a c c o m p a n ie d b y an e x p r e s s g u a r a n t y o f p a y m e n t b y a n in c o r p o r a t e d b a n k o r tru s t com pan y. A l l b id d e r s a r e r e q u ir e d t o a g r e e n o t t o p u r c h a s e o r t o sell, o r t o m a k e a n y a g r e e m e n ts w ith r e s p e c t t o th e p u r c h a s e o r sale o r o t h e r d is p o s itio n o f a n y b ills o f th is issu e , u n til a fte r o n e - t h ir t y o ’ c l o c k p .m ., E a s t e r n D a y lig h t S a v in g tim e , T h u r s d a y , J u ly 20, 1961. I m m e d ia t e ly a fte r th e c lo s in g h o u r , t e n d e r s w ill b e o p e n e d a t th e F e d e r a l R e s e r v e B a n k s a n d B r a n c h e s , f o l l o w i n g w h ic h p u b lic a n n o u n c e m e n t w ill b e m a d e b y th e T r e a s u r y D e p a r tm e n t o f th e a m o u n t a n d p r ic e r a n g e o f a c c e p t e d b id s . T h o s e s u b m itt in g te n d e r s w ill b e a d v is e d o f th e a c c e p t a n c e o r r e je c t io n t h e r e o f. T h e S e c r e t a r y o f th e T r e a s u r y e x p r e s s ly r e s e r v e s th e r ig h t t o a c c e p t o r r e je c t a n y o r a ll t e n d e r s , in w h o le o r in p a rt, a n d h is a c t io n in a n y s u c h r e s p e c t s h a ll b e fin a l. S u b je c t t o th e se r e s e r v a tio n s , n o n c o m p e t it iv e t e n d e r s f o r $ 5 0 0 ,0 0 0 o r less w it h o u t s t a t e d p r ic e fr o m a n y o n e b id d e r w ill b e a c c e p t e d in fu ll a t th e a v e r a g e p r ic e (in t h r e e d e c im a ls ) o f a c c e p t e d c o m p e titiv e b id s. P a y m e n t o f a c c e p t e d t e n d e r s at t h e p r ic e s o ff e r e d m u s t b e m a d e o r c o m p le t e d a t th e F e d e r a l R e s e r v e B a n k in c a s h o r o t h e r im m e d ia t e ly a v a ila b le fu n d s o n J u ly 26, 1961, p r o v id e d , h o w e v e r , a n y q u a lifie d d e p o s it a r y w ill b e p e r m itt e d t o m a k e p a y m e n t b y c r e d it in its T r e a s u r y T a x a n d L o a n A c c o u n t f o r T r e a s u r y b ills a llo t te d t o it f o r it s e lf a n d its c u s t o m e r s up t o a n y a m o u n t f o r w h ic h it s h a ll b e q u a lifie d in e x c e s s o f e x is t in g d e p o s it s w h e n s o n o t ifie d b y th e F e d e r a l R e s e r v e B a n k o f its D is t r ic t . T h e in c o m e d e r iv e d fr o m T r e a s u r y b ills , w h e t h e r in te r e s t o r g a in f r o m th e sa le o r o t h e r d is p o s it io n o f th e b ills , d o e s n o t h a v e a n y e x e m p t io n , a s s u ch , a n d l o s s f r o m t h e s a le o r o t h e r d is p o s itio n o f T r e a s u r y b ills d o e s n o t h a v e a n y s p e c ia l t re a t m e n t, a s s u ch , u n d e r th e I n te r n a l R e v e n u e C o d e o f 1954. T h e b ills are s u b je c t to e s ta te , in h e rita n ce , g ift o r o t h e r e x c is e ta x e s, w h e th e r F e d e r a l o r S ta te , b u t a r e e x e m p t f r o m a ll t a x a t io n n o w o r h e r e a fte r im p o s e d o n th e p r in c ip a l o r in te r e s t t h e r e o f b y a n y S ta te , o r a n y o f th e p o s s e s s io n s o f th e U n ite d S ta te s , o r b y a n y l o c a l t a x in g a u th o r it y . F o r p u r p o s e s o f t a x a t io n th e a m o u n t o f d is c o u n t a t w h ic h T r e a s u r y b ills are o r ig in a lly s o ld b y th e U n it e d S ta te s is c o n s id e r e d t o b e in te re st. U n d e r S e c t io n s 4 5 4 ( b ) a n d 1 2 2 1 (5 ) o f th e I n t e r n a l R e v e n u e C o d e o f 1954 th e a m o u n t o f d is c o u n t a t w h ic h b ills is s u e d h e r e u n d e r a r e s o ld is n o t c o n s id e r e d t o a c c r u e u n til s u c h b ills a r e s o ld , r e d e e m e d o r o t h e r w is e d is p o s e d o f , a n d s u c h b ills a r e e x c lu d e d f r o m c o n s id e r a t io n a s ca p ita l a s s e ts . A c c o r d i n g l y , th e o w n e r o f T r e a s u r y b ills (o t h e r th a n life in s u r a n c e c o m p a n ie s ) is s u e d h e r e u n d e r n e e d in c lu d e in h is in c o m e t a x r e tu rn o n l y th e d iffe r e n c e b e t w e e n th e p r ic e p a id f o r s u c h b ills, w h e t h e r o n o r ig in a l issu e o r o n s u b s e q u e n t p u r c h a s e , a n d th e a m o u n t a c t u a lly r e c e iv e d e ith e r u p o n sa le o r r e d e m p t io n at m a tu r ity d u r in g th e t a x a b le y e a r f o r w h ic h th e r e tu r n is m a d e , a s o r d in a r y g a in o r lo s s . T r e a s u r y D e p a r t m e n t C ir cu la r N o . 418, R e v is e d , a n d this n o t ic e , p r e s c r ib e th e t e r m s o f th e T r e a s u r y b ills a n d g o v e r n t h e c o n d it io n s o f th e ir issu e . C o p ie s o f t h e c ir c u la r m a y b e o b t a in e d fr o m a n y F e d e r a l R e s e r v e B a n k o r B r a n c h . This Bank will receive tenders up to 1:30 p.m., Eastern Daylight Saving time, Thursday, July 20, 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 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 a y e s , President. ( over ) No.............................. TEN D ER F O R 240-D A Y T R E A S U R Y BILLS TO BE DESIGNATED “ TAX ANTICIPATION SERIES” Dated July 26, 1961 To Maturing March 23, 1962 Dated at ............................................................ F ed era l R eserve B a n k o f N ew Y o rk , ................................................................... t 1961 Fiscal Agent of the United States. Pursuant to the provisions of Treasury Department Circular N o. 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 I not both Com petitive and N on com petitive tenders on one form $ ......... .................................................... (maturity value), or any lesser amount that may be awarded. 1 NONCOMPETITIVE TENDER I $ .............................................................. . ( maturity value ). (N o t to ex ceed $500,000 fo r one bidder through all sou rces) Price: ......................... , ...........per 100. (P r ic e must be exp ressed with not m ore than three decimal places, fo r exam ple, 99.925) A t the average price of accepted competitive bids. Subject to allotment, payment for these bills will be made at your Bank on July 26, 1961, by cash or other immediately available funds, or (in the case of a qualified depositary) by credit in Treasury T ax and Loan Account, 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 o f this issue, until after one-thirty o’clock p.m., Eastern Daylight Saving time, Thursday, July 20, 1961. Nam e o f subscriber ............................................................................ Insert this tender in blue envelope marked “ Tender for Treasury Bills— Tax A nticipation Series’ (P le a s e p r in t) By ................................................................................. . B y ............... (O ffic ia l T itle sig n a tu re ( s ) re q u ire d ) ................. ............................................................ Title A ddress ................................................................................................................. (Banks submitting tenders fo r customer account must indicate name on line below, or attach a list) (Name of customer) (N o te . Successful bidders will receive a letter o f instructions form with their allotment notice to instruct us as to the disposition of, and method o f payment fo r, 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 fo r an even multiple o f $1,000 (m aturity value). 2. Others than banking institutions will not be permitted to submit tenders except for their ow n account. Banks submitting tenders for customer account may consolidate competitive tenders at the same price and may consolidate noncompetitive 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 for 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 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 o f the firm, w ho should sign in the form “ ..................................................... .............................................. , a copartnership, by ............... . ................................. ........................................................ . a member o f the firm.” 4. Tenders w ill be received without deposit from 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 o f 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 pa ym en t b y an in corp ora ted bank o r trust com p a n y . 5. I f. the language o f this tender is changed in any respect, which, in the opinion o f the Treasury, is material, the tender m ay be disregarded. Secretary o f the 1 F ederal R eserve B ank op New Y ork NOTICE OF ALLOTMENT OF U N IT E D STA TE S O F A M E R IC A T R E A S U R Y BILLS T A X A N T IC IP A T IO N SERIES July 21, 1961. Your □ competitive □ noncompetitive tender for— U N IT E D S T A T E S O F A M E R IC A 2 4 0 - D A Y T R E A S U R Y B IL L S— T A X A N T IC IP A T IO N S E R IE S D A T E D JU L Y 2 6 , 1 9 6 1 , D U E M A R C H 2 3 , 1 9 6 2 has been accepted at the price of (per 1 0 0 ), in the amount of— $ (maturity value) Settlement therefor must be made in cash or other immediately available funds at the Federal Reserve Bank o f New York on or before July 26, 1961. However, a qualified deposi tary may make settlement by credit to its Treasury Tax and Loan Account, provided the advice of deposit on the enclosed letter of instructions form is executed and returned immediately. I f 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 July 26, 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 o f 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 e d e ra l R eserve B a n k o f N ew Y o rk Fiscal Agent of the United States Checked by / PENDING DELIVERY TICKET FOR GOVERNMENT BOND DIVISION □ competitive □ 2 noncompetitive U N IT E D S T A T E S O F A M E R IC A 2 4 0 - D A Y T R E A S U R Y B IL LS— T A X A N T IC IP A T IO N S E R IE S D A T E D JU L Y 2 6 , 1 9 6 1 , D U E M A R C H 2 3 , 1 9 6 2 price of P R IN C IP A L MASTER M A T U R IT Y V A L U E P R IN C IP A L DISPOSITION S P L IT D IS P O S IT IO N M ETH O D O F PA YM ENT □ Over the Counter □ □ Safekeeping □ Reserve Account □ Check or Cash □ Delivery Teller Treas. T. & L. Acc. □ Ship □ Treasury Tax & Loan □ Foreign Oper. Div. □ Allotment Transfer □ Form 12 ALLOTMENT NOTICE FOR SECURTIES DEPARTMENT □ competitive Q noncompetitive U N IT E D S T A T E S O F A M E R IC A 2 4 0 - D A Y T R E A S U R Y B IL L S — T A X A N T IC IP A T I O N S E R IE S D A T E D JU L Y 2 6 , 1 9 6 1 , D U E M A R C H 2 3 , 1 9 6 2 price of $ 3 ALLOTMENT NOTICE FOR SECURITY FILES •* >J □ competitive Q noncompetitive U N IT E D S T A T E S O F A M E R IC A 2 4 0 - D A Y T R E A S U R Y B IL L S — T A X A N T I C I P A T IO N S E R IE S D A T E D JU L Y 2 6 , 1 9 6 1 , D U E M A R C H 2 3 , 1 9 6 2 price of $ kT cn 1j t^er. of instructions, accompanied by attached duplicate copy, should be hlled in for the to ta l am ount of Treasury bills of this issue awarded, and returned to Federal Reserve Bank of New York) LETTER OF INSTRUCTIONS To F ederal R e serve B a n k op New Y ork, Fiscal Agent of the United States, Federal Reserve P. 0 . Station, New York 45, N. Y . Attention: Government Bond Division— 2nd Floor Dated a t .......................................................... .....................................................................1961 On our competitive and noncompetitive tenders for— UNITED ST ATES OF AM ERICA 240-D A Y TREASURY BILLS— T A X AN TICIPATION SERIES D ATED JULY 26, 1961, DUE MARCH 23, 1962 accepted in the aggregate amount of— $ (maturity value) Please issue and make delivery of the bills as instructed below: P ie c e s D e n o m in a tio n $ M a t u r it y V a lu e P lease D o N U se T h is S pace ot 1,000 5,000 10,000 100,000 500,000 1,000,000 • Totals— □ □ □ □ □ 1. Deliver over the counter to the undersigned 2. Ship to the undersigned 3. Hold in safekeeping (for account of member bank only) 4. Hold as collateral for Treasury Tax and Loan Account 5. Special instructions: Payment will be made as follows: □ By charge to our reserve account □ By cash or other immediately available funds □ By credit to Treasury Tax and Loan Account on our books as indicated on the attached Advice of Deposit (N o changes in delivery instructions will be accepted) The undersigned ( i f a bank or trust com pany) hereby certifies that the Treasury bills which you are hereby instructed to dispose o f in the manner indicated in item numbered 3 or 4 above are owned solely by the undersigned. This letter of instructions must be signed officially in the space provided and returned immediately to Federal Reserve Bank of New York, Submitted by (Please print) ........................., By ............. T it le By ....................... (Authorized signature(s) required) ....................................................................................... T it le F i s c a l A g e n t o f t h e U n it e d S ta te s. A d d r e s s ....................................................................................................................... (Spaces below are for the use o f the Federal Reserve Bank o f New Y ork) S a fe k e e p in g D iv is io n Government Bond Division Payment received ................................................................................................................................................ Checked.. Deliver against payment o f $ ............................................................................................................................ Delivered. D E L IV E R Y R E C E IP T Jiocoived f r o m F e d e r a l R e s e r v e B a n k o f New Y o r k , F i s c a l A g e n t o f th e U n it e d S ta te s , th e a b o v e d e s c r ib e d s e cu ritie s a llo t t e d in th e a m o u n t indicated a b o v e . V i ......... .................................. Subscriber...................................................................................... B y ............................................................................. If payment is to be made by credit to Treasury Tax and Loan Account, an advice of the deposit should be furnished this Bank on the form below. Advice of Deposit in Treasury Tax and Loan Account To Federal Reserve Bank of New York Government Bond Division W e will deposit on July 26, 1961, $ (purchase price) to the credit of the Federal Reserve Bank of New York, Fiscal Agent of the United States, in the Treasury Tax and Loan Account, to be held subject to withdrawal on demand in payment for $ ' (maturity value) 240-day Tax Anticipation Treasury bills dated July 26, 1961, due March 23, 1962. (Name of depositary) Address (C ity and State) (DUPLICATE FOR USE OF FEDERAL RESERVE BANK OF NEW YORK) LETTER OF INSTRUCTIONS To F e d e r a l R e s e r v e B a n k o f N e w Y o r k , Fiscal Agent of the United States, Federal Reserve P. 0 . Station, New York 45, N . Y . Attention: Government Bond Division— 2nd Floor Dated a t ............................................................. ........................................................................ 1961 On our competitive and noncompetitive tenders for— UNITED S T A T E S OF A M E R IC A 2 4 0 -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 JULY 26, 1961, DUE M ARCH 23, 1962 accepted in the aggregate amount of— $ (maturity value) Please issue and make delivery o f the bills as instructed below: P ie c e s D e n o m in a t io n $ M a t u r it y V a lu e P lease D o N ot U se T h is S pace 1,000 5,000 10,000 100,000 500,000 1,000,000 Totals— Payment will be made as follows: □ □ 1. Deliver over the counter to the undersigned 2. Ship to the undersigned □ 3. Hold in safekeeping (for account of member bank only) □ □ 4. 5. Hold as collateral for Treasury Tax and Loan Account Special instructions: □ By charge to our reserve account □ B y cash or other immediately available funds □ By credit to Treasury Tax and Loan Account on our books as indicated on the attached Advice of Deposit (N o changes in delivery instructions will he accepted) The undersigned ( i f a bank or trust com pa n y) hereby certifies that the Treasury bills which you are h ereby instructed to dispose o f in the manner indicated in item num bered 3 or 4 above are ow ned solely by the undersigned. This letter of instructions must be signed officially in the space provided and returned immediately to Federal Reserve Bank of New York, Submitted by By .............. (Please print) By (Authorized signature(s) required) T itle .......................................................................... ...................... Title .................. F isca l A g e n t o f the United States. A d d r e s s ......................................................................................................... . (S p a ces below are fo r the use o f the Federal R eserve Bank o f New Y o rk ) S afekeeping D ivision Government B ond Division Payment received ........................................................................................................................................... Checked. . D eliver against paym ent o f $ ................................................................................................................................. D elivered. D E L IV E R Y R E C E IP T R eceived from Federal Reserve Bank o f N ew York, Fiscal A gen t o f the United States, the above described securities allotted in the amount indicated above. Date.for FRASER Digitized Subscriber. By. Federal Reserve Bank of New York Securities Department (9th Floor) 33 Liberty Street TENDER FOR TREASURY BILLS TAX ANTICIPATION SERIES X D O N O T U SE T H I S E N V E L O P E F O R O T H B R P U R P O S K S ) New York 45, N. Y.
@FedFRASER