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F E D ER A L R ESER V E BANK O F NEW YORK Fiscal Agent of the United States r Circular No. 5 2 2 8 ' L September 20, 1962 , Offering of $3,000,000,000 of 170-Day Tax Anticipation Treasury Bills Dated October 3, 1962 Maturing March 22, 1963 To All Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: / • The following statement was made public today by the Treasury Department: As the first step in meeting its fourth-quarter cash needs, the Treasury announced the offering of $3 billion in 170-day tax anticipation bills. The bills, which are to be dated O ctober 3, 1962 and mature on March 22, 1963, will be accepted at face value in payment of incom e taxes due on March 15, 1963. The bills will be auctioned on W ednesday, September 26. The payment date is W ednesday, O ctober 3. A ny qualified depositary will be permitted to make payment by credit in its Treasury T ax and Loan Account. Following is the public notice of the offering: The Treasury Department, by this public notice, invites tenders for $3,000,000,000, or thereabouts, of 170-day Treasury bills, to be issued on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be designated T ax Anticipation Series, they will be dated O ctober 3, 1962, and they will mature March 22, 1963. They will be accepted at face value in payment of 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 desir ing to apply these bills in payment of March 15, 1963, income and profits taxes have the privilege o f surrendering them to any Federal Reserve Bank or Branch or to the Office of the Treasurer of the United States, W ashington, not more than fifteen days before March 15, 1963, 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 March 15, 1963, 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 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 o ’clock p.m., East ern D aylight Saving time, W ednesday, September 26, 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 o f 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 of customers provided the names of 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 o f 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. A ll 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 of any bills o f this issue, until after one-thirty p.m., Eastern Daylight Saving time, W ednesday, September 26, 1962. 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 o f the Treasury expressly reserves the right to accept or reject any or all tenders, in w hole 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. Payment of accepted tenders at the prices offered must be made or com pleted at the Federal Reserve Bank in cash or other immediately available funds on O ctober 3, 1962, provided, however, any qualified depositary will be permitted to make payment by credit in its Treasury T a x and Loan A ccount for Treasury bills allotted to it for itself and its cus tomers up to any amount for which it shall be qualified in excess of existing deposits when so notified by the Federal Reserve Bank of its District. The incom e 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 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 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 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 of 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 o f the Treasury bills and govern the conditions of their issue. Copies o f the circular may be obtained from any Federal Reserve Bank or Branch. This Bank will receive tenders up to 1 :30 p.m., Eastern Daylight Saving time, Wednesday, September 26, 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. 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 ayes, President. ( over) No................................ TENDER FOR 170-DAY TREASURY BILLS TO BE DESIGNATED “TAX A N TICIPATIO N SERIES” Dated October 3, 1962 Maturing March 22, 1963 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 , Dated at .................................................. Fiscal Agent of the United States. ........................................................ , 1962 Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and to the provi sions 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: COM PETITIVE TENDER [I Noncompetitive notfiJl both Competitive and "1 tenders on one form I .in $ .................................................... (maturity value), or any lesser amount that may be awarded. P r ic 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 fo r one bidder through all sources) At the average price of accepted competitive bids. Subject to allotment, payment for these bills will be made at your Bank on October 3, 1962, by cash or other immediately available funds, or (in the case of a qualified depositary) by credit in Treasury Tax 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 of this issue, until after one-thirty o’clock p.m., Eastern Daylight Saving time, Wednesday, September 26, 1962. Name of subscriber ......................................................................... Insert this tender in blue envelope marked “ Tender for Treasury Bills— Tax A nticipation Series” (Please print) By ............................................................................ By ................ (Official signature(s) required) Title ........................................................................ Title Address (Banks submitting tenders for customer account must indicate name on line below, or attach a list) (Name of customer) (Note. Successful bidders will receive a letter of instructions form with their allotment notice to instruct us as to the disposition of, and method of payment for, the bills allotted to them.) IN S T R U C T IO N S : 1. No 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. Banks submitting tenders for customer account may consolidate competitive tenders at the same price and may consolidate non competitive 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 on request. 3. If 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 o f 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 o f 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 of 2 percent of the face amount of Treasury bills applied for, unless the tenders are accompanied by an express guaranty of 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 (DO NOT USE THIS ENVELOPE FOR OTHER PURPOSE*) vrpw Ynrk 4? ’ F ed eral R eserve B a n k of N ew 1 Y ork NOTICE OF ALLOTMENT OF UNITED STATES OF A M ERIC A TREASURY BILLS TAX ANTICIPATION SERIES September 27, 1962. Your □ competitive □ noncompetitive tender for— UNITED STATES OF AMERICA 170-D A Y TREASURY BILLS— T A X ANTICIPATION SERIES DATED OCTOBER 3, 1962, DUE MARCH 22, 1963 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 October 3, 1962. 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 October 3, 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. 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 2 □ competitive □ noncompetitive UNITED STATES OF AMERICA 170-D A Y TREASURY BILLS— T A X ANTICIPATION SERIES DATED OCTOBER 3, 1962, DUE MARCH 22, 1963 price of PRINCIPAL MASTER MATURITY VALUE PRINCIPAL DISPOSITION SPLIT DISPOSITION METHOD OF PAYMENT □ Over the Counter □ Treas. T. & L. Acc. □ Safekeeping □ Reserve Account □ Check or Cash □ Ship □ Delivery Teller □ Treasury Tax & Loan □ Foreign Oper. Div. □ Allotment Transfer □ Form 12 • •• ALLOTMENT NOTICE FOR SECURITIES DEPARTMENT □ competitive □ noncompetitive UNITED STATES OF AMERICA 170-D A Y TREASURY BILLS— T A X ANTICIPATION SERIES DATED OCTOBER 3, 1962, DUE MARCH 22, 1963 price of $ 3 ALLOTMENT NOTICE FOR SECURITY FILES □ competitive □ noncompetitive UNITED STATES OF AMERICA 170-D A Y TREASURY BILLS— T A X ANTICIPATION SERIES DATED OCTOBER 3, 1962, DUE MARCH 22, 1963 price of (This letter of instructions, accompanied by attached duplicate copy, should be filled in for the total amount of Treasury bills of this issue awarded, and returned to Federal Reserve Bank of New York) LETTER OF INSTRUCTIONS To F ederal R eserve B ank of N ew 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 at .................................................... ............................................................. 1962 On our competitive and noncompetitive tenders for— UNITED STATES OF AMERICA 170-D AY TREASURY BILLS— T A X ANTICIPATION SERIES DATED OCTOBER 3, 1962, DUE MARCH 22, 1963 accepted in the aggregate amount of(maturity value) $ Please issue and make delivery of the bills as instructed below: Pieces Denomination $ P l e a s e Do N o t U s e T h i s S p a c e Maturity Value 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. Hold as collateral for Treasurj^ 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 (No changes in delivery instructions mill be accepted) * I f this item is ch e c k e d , the u n d ersig n ed certifies that the a llo tte d b ills are o w n e d s o le ly b y the u n d ersig n ed . 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. Address ................................................................................................. (S p a c e s b e lo w are f o r the use o f the F ed era l R e s e rv e Bank o f N ew Y o r k ) Government Bond Division Safekeeping Division Payment received ..................... Checked . Deliver against payment of $ Delivered D ELIVERY RECEIPT Received from Federal Reserve Bank of New York, Fiscal Agent o f the United States, the above described securities allotted in the amount indicated above. Date. Subscriber. By. ^ 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 We will deposit on October 3, 1962, $ (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) 170-day Tax Anticipation Treasury bills dated October 3, 1962, due March 22, 1963. (Name of depositary) Address (C ity and State) (D U PLICATE FOR USE OF FE D E R A L RESERVE BANK OF NEW YO RK ) 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 at ............................................................. 1962 On our competitive and noncompetitive tenders for— UNITED STATES OF AMERICA 170-D A Y TREASURY BILLS— T A X ANTICIPATION SERIES DATED OCTOBER 3, 1962, DUE MARCH 22, 1963 accepted in the aggregate amount of— $ (maturity value) Please issue and make delivery of the bills as instructed below: P ieces Denomination $ P l e a s e Do N o t U s e T h i s S p a c e Maturity Value 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. 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 (No changes in delivery instructions will be accepted) * I f this item is ch e c k e d , the u n d ersig n ed certifies that the a llo tte d b ills a re o w n e d s o le ly b y the u n d e rsig n e d . 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 signatured) required) Title ............ Title Fiscal Agent o f the United States. Address (S p a c e s b e lo w are f o r the use o f the F ed era l R e serv e Bank o f N ew Y o r k ) Government Bond Division Safekeeping Division Payment received .................................................................................................................................... Deliver against payment of $ ....................................... D ELIVERY RECEIPT Received from Federal 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/ D ate Reserve Bank of St. Louis Subscriber Federal By
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