Full text of Federal Reserve Bank of New York Circulars : 5163. Offering of $1,800,000,000 of 182-Day Tax Anticipation Treasury Bills

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FEDE R AL R E S E R V E BANK O F N E W YORK
Fiscal Agent of the United States
rCircular No. 5 1 6 3 *1
L March 13, 1962
J

Offering of $1,800,000,000 of 182-Day Tax Anticipation Treasury Bills
Dated March 23, 1962

Maturing September 21, 1962

To A ll Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal Reserve District:

Following is the text of a notice issued by the Treasury Department, released for publication today:
The Treasury Department, by this public notice, invites
tenders for $1,800,000,000, or thereabouts, of 182-day Treasury
bills, for cash and in exchange for Treasury T ax Anticipation
Series bills maturing March 23, 1962 in the amount of
$3,502,886,000. The bills will be issued on a discount basis under
competitive and noncompetitive bidding as hereinafter provided.
The bills o f this series will be designated T ax Anticipation
Series, they will be dated March 23, 1962, and they will mature
September 21, 1962. They will be accepted at face value in pay
ment o f income and profits taxes due on September 15, 1962,
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
September 15, 1962, incom e and profits 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, W ashington,
not m ore than fifteen days before September 15, 1962, 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 September 15, 1962, 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 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
Standard time, Tuesday, March 20, 1962. Tenders will not be
received at the Treasury Department, W ashington. Each
tender must be for an even multiple of $1,000, and 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. 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 incor
porated 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 of the
face amount o f 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, follow ing 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 o f 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 reservations, 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 com
petitive bids. Settlement for accepted tenders in accordance
with the bids must be made or completed at the Federal
Reserve Bank on March 23, 1962, in cash or other immediately
available funds or in a like face amount o f T ax Anticipation
Series bills maturing on March 23, 1962. Cash and exchange
tenders will receive equal treatment. Cash adjustments will be
made for differences between the par value of maturing bills
accepted in exchange and the issue price of the new bills.
The incom e 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 of 1954. The
bills are subject to estate, inheritance, gift or other excise
taxes, whether Federal or State, but are exempt from all taxa
tion now or hereafter im posed on the principal or interest
thereof by any State, or any o f 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 o f 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. A ccordingly,
the owner of Treasury bills (other than life insurance com
panies) issued hereunder need include in his incom e 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.

This Bank will receive tenders up to 1 :30 p.m., Eastern Standard time, Tuesday, March 20, 1962, 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. Payment j or the Treasury bills cannot be made by credit through the Treasury Tax and Loan
Account. Settlement must be made in cash or other immediately available fiends or in Tax Anticipation Series bills
maturing March 23, 1962.
A lfred

H ayes,

President.
Payment by credit through Treasury Tax and Loan Account will not be permitted.

( over)

No.
TENDER FOR 182-DAY TREASURY BILLS
TO BE DESIGNATED “ T A X ANTICIPATION SERIES”

Dated March 23, 1962

Maturing September 21, 1962

To F ederal R eserve B a n k of N e w Y o r k ,
Fiscal Agent of the United States.

Dated at ....................................................
.......................................................... , 1962

IMPORTANT— Payment may not be made by credit to Treasury Tax and Loan Account.

Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and to the
provisions of the public notice issued by the Treasury Department and printed on the reverse side of this tender,
the undersigned 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

[

Do not fill in both Competitive and
Noncompetitive tenders on one form

$ ...................................................... (maturity value),
or any lesser amount that may be awarded.
P r i c e :.................................. per 100.
(Price must be expressed with not more than three
decimal places, for example, 99.925)

NONCOMPETITIVE TENDER

$ ...................................................... (maturity value).
(N ot to exceed $400,000 for one bidder through all sources)

At the average price of accepted competitive bids.

Subject to allotment, please issue, deliver, and accept payment for the bills as indicated below:
Pieces

Denomination
$

Maturity value

□

1,000
5,000

□
□

10,000

□

50,000

□

1. Deliver over the counter to the
undersigned
2. Ship to the undersigned
3. Hold in safekeeping (fo r ac
count o f member bank only)
4. Allotment transfer (see list
attached)
5. Special instructions:

Payment will be made as follow s:
□

By charge to our reserve account

□

By cash or check in immediately
available funds

By surrender of $ .............................
(maturity value) of maturing
T ax Anticipation Series bills.
Pay cash adjustment, if any—

100,000

□

By check

500,000

□

By credit to our reserve account

1,000,000

(N o chanaes in delivery instructions
will be accepted)

Total

(Payment cannot be made through
Treasury Tax a)\d Loan Account)

The undersigned (if a bank or trust company) hereby certifies that the Treasury bills which you are hereby
instructed to dispose of in the manner indicated in item 3 above are owned solely by the undersigned.
Name of subscriber
(Please print)

Insert this tender
in blue envelope
marked “ Tender for
Treasury Bills— Tax
Anticipation Series”

............................. By ..............

By
Title

(Official

signature (s)

required)

...................................................................... . Title

Address

.....................................................................................................................................................

(Banking institutions submitting tenders for customer account must list customers’ names on lines below or on an attached rider)
(Name of customer)

(Name of customer)

IN S T R U C T IO N S :
1. N o tender for less than $1,000 will be considered, and each tender must be for an even multiple of $1,000
(maturity value).
2. Others than banking institutions will not be permitted to submit tenders except for their own account. Banking
institutions submitting tenders for customer account may consolidate competitive tenders at the same price and may consolidate
noncompetitive tenders, provided a list is attached showing the name of each bidder, the amount bid for his account, and
method of payment. Forms for this purpose will be furnished upon request.
3. I f the person making the tender is a corporation, the tender should be signed by an officer of the corporation
authorized to make the tender, and the signing of the tender 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 of the firm, who should sign in the form “ ........................................................... ........................................> a copartnership, by
............................................................................................................. a member of the firm.”
4. 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 of the face
amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty o f payment by an incor
porated bank or trust company.
5. If the language of this tender is changed in any respect, which, in the opinion of the Secretary o f the Treasury, is
material, the tender may be disregarded.

Federal Reserve Bank of New York
Securities Department (9th Floor)
33 Liberty Street
TENDER FOR TREASURY BILLS
T A X ANTICIPATION SERIES
fD O N O T USE T H IS E N V E L O P E F O R O T H E R P U R PO SE S)

New York 45, N. Y.

F eder al R eserve B a n k

New Y

ork

NOTICE OF ALLOTMENT
OF UNITED STATES OF AMERICA TREASURY BILLS
TA X ANTICIPATION SERIES

March 21, 1962.

Your □ competitive □

noncompetitive tender for—

UNITED STATES OF AMERICA 182-DAY TREASURY BILLS— T A X ANTICIPATION SERIES
DATED MARCH 23, 1962, DUE SEPTEMBER 21, 1962

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 or in a like
face amount of tax anticipation Treasury bills maturing March 23, 1962, at the Federal Reserve
Bank of New York on or before March 23, 1962. 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 March 23, 1962; 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.
Delivery of the Treasury bills will be made in accordance with instructions submitted
with your tender, and your reserve account will be charged on March 23, 1962 if you so indicated.
If you did not submit such instructions, a Letter of Instructions form is enclosed; please com
plete the letter in duplicate and return it promptly to this Bank.

F ed eral R eserve B a n k of N e w

Y ork

Fiscal Agent of the United States

Checked by

(This letter of instructions, accompanied by attached duplicate copy,
should be filled in and returned to Federal Reserve Bank of New York)

LETTER OF INSTRUCTIONS
To

F e d e r a l R eserve B a n k o f N ew Y o rk ,

Fiscal Agent of the United States,
Federal Reserve P. 0. Station,
New York 45, N. Y.

Attention: Government Bond Division— 2nd Floor
Dated at .............
.1962

On our □

competitive □

noncompetitive tender for—

UNITED STATES OF AMERICA 182-DAY TREASURY BILLS— T A X ANTICIPATION SERIES
DATED MARCH 23, 1962, DUE SEPTEMBER 21, 1962

accepted at the price of

(per 100), in the amount of—
$

(maturity value)

Please issue and make delivery of the bills as instructed below:
Pieces

Denomination

Maturity Value

P lease D o N

U s e T h is S p ace

1,000
5,000
10,000
50,000
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 o f member bank
only)
□ 4. Allotment transfer (see list attached)
□ 5. Special instructions:

Payment will be made as follows:
□ By charge to our reserve account
□ By cash or other immediately available funds
□ By surrender of $ .......................... (maturity value)
of maturing tax anticipation Treasury bills. Pay
cash adjustment, if any—
□ By check
□ By credit to our reserve account

(No changes in delivery instructions will be accepted)

(Payment cannot be made through Treasury Tax and
Loan Account)

The undersigned (if a bank or trust company) hereby certifies that the Treasury bills which you are hereby instructed to
dispose of in the manner indicated in item numbered 3 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 b y ...........................
(Please print)

........................................................ ............

(Authorized signatured) required)

Title ..........................................

.....................

Title ................

Fiscal Agent o f the United States.
A d d re ss.................................................................................................
(Spaces below are for the use of the Federal Reserve Bank of New York)
Safekeeping Division

Government Bond Division
Payment received . . . .
Deliver against payment of $

.................................................

DELIVE RY RECEIPT
Received from Federal Eeserve Bank o f New York, Fiscal Agent o f the United States, the above described securities allotted in the amount
indicated above.

http://fraser.stlouisfed.org/
Date
Subscriber
Federal Reserve Bank of St. Louis

(D U PLICATE FO R USE OF FE D E R A L RESERVE BAN K OF N EW Y O R K )

LETTER OF INSTRUCTIONS
T o F eder al R eserve B a n k of N e w Y
F is c a l A g e n t o f the U n ite d States,
F e d e r a l R eserve P . 0 . S ta tio n ,

ork,

New York 45, N. Y.

Attention: Government Bond Division— 2nd Floor
Dated at .............
.1962

On our □

competitive □

noncompetitive tender for—

UNITED STATES OF AMERICA 182-DAY TREASURY BILLS— T A X ANTICIPATION SERIES
DATED MARCH 23, 1962, DUE SEPTEMBER 21, 1962

accepted at the price of

(per 100), in the amount of—

(maturity value)

Please issue and make delivery of the bills as instructed below:
Pieces

Denomination

Maturity Value

P lease D o N

U s e T h is S p a c e

1,000
5,000
10,000
50,000
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. Allotment transfer (see list attached)
□ 5. Special instructions:

(No changes in delivery instructions will be accepted)

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
(Authorized signature(s) required)

Title ....................................................................
.....................

Title .................

Fiscal Agent o f the United States.
A d d re ss................................................................................................. .
(Spaces below are for the use of the Federal Reserve Bank of New York)
Safekeeping Division

Government Bond Division
Payment received ...................

Checked..

Deliver against payment of $.

Delivered.
DELIVERY RECEIPT

Received from Fedoral Reserve Bank of New York, Fiscal Agent o f the United States, the above described securities allotted in the amount
indicated
above.

http://fraser.stlouisfed.org/
Date...............................
Federal
Reserve Bank of St., Louis Subscriber..............................................................

Bv .

PENDING DELIVERY TICKET FOR GOVERNMENT BOND DIVISION

Your □

competitive □

noncompetitive tender for—

UNITED STATES OF AMERICA 182-DAY TREASURY BILLS— T A X ANTICIPATION SERIES
DATED MARCH 23, 1962, DUE SEPTEMBER 21, 1962

(per 100), in the amount of—

which has been accepted at the price of

PRINCIPAL

MASTER
MATURITY VALUE

PRINCIPAL

DISPOSITION

□

Over the Counter

Safekeeping

□

Ship

Treasury Tax & Loan

Allotment Transfer

SPLIT DISPOSITION

METHOD OF PAYMENT

□

Reserve Account

□

Check or Cash

□

Delivery Teller

□

Foreign Oper. Div.

□

Form 12

ALLOTMENT NOTICE FOR SECURITIES DEPARTMENT

□ competitive □

noncompetitive

UNITED STATES OF AMERICA 182-DAY TREASURY BILLS— T A X ANTICIPATION SERIES
DATED MARCH 23, 1962, DUE SEPTEMBER 21, 1962

ALLOTMENT NOTICE FOR SECURITY FILES

□

competitive □

noncompetitive

UNITED STATES OF AMERICA 182-DAY TREASURY BILLS— T A X ANTICIPATION SERIES
DATED MARCH 23, 1962, DUE SEPTEMBER 21, 1962

Full text of Federal Reserve Bank of New York Circulars : 5163. Offering of $1,800,000,000 of 182-Day Tax Anticipation Treasury Bills

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