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FEDERAL RESERVE BANK OF NEW YORK
Fiscal Agent of the United States
r Circular No. 5 4 1 2 "1
L November 4, 1963 -I

O FFER ING OF TW O SERIES OF TR E A SU R Y BILLS
$1,300,000,000 of 91-Day Bills, Additional Amount, Series Dated August 15, 1963, Due February 13,1964
(To Be Issued November 14, 1963)
$800,000,000 of 182-Day Bills, Dated November 14, 1963, Due May 14, 1964
To A ll Incorporated Banks and Trust Companies, and Others
Concerned, in the Second Federal Reserve District:

Following isthe text of a notice issued by the Treasury Department, released for publication today at 4 p.m.,
Eastern Standard time:
The Treasury Department, by this public notice, invites
tenders for two series of Treasury bills to the aggregate
amount of $2,100,000,000, or thereabouts, for cash and in ex­
change for Treasury bills maturing November 14, 1963, in the
amount o f $2,101,512,000, as follows:
91-day bills (to maturity date) to be issued November 14,
1963, in the amount of $1,300,000,000, or thereabouts,
representing an additional amount of bills dated
August 15, 1963, and to mature February 13, 1964, origi­
nally issued in the amount o f $800,116,000 (an additional
$100,092,000 was issued October 28, 1963), the additional
and original bills to be freely interchangeable.
182-day bills, for $800,000,000, or thereabouts, to be dated
November 14, 1963, and to mature May 14, 1964.
The bills of both series will be issued on a discount basis
under competitive and noncompetitive bidding as hereinafter
provided, and at maturity their face amount will be payable
without interest. They 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, Friday, November 8, 1963. Tenders will not be
received at the Treasury Department, Washington. Each tender
must be for an even multiple of $1,000, and in the case of com­
petitive 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 sup­
plied by Federal Reserve Banks or Branches on application
therefor.
Banking institutions generally may submit tenders for ac­
count 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 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
incorporated bank or trust company.
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 Depart­
ment of the amount and price range of accepted bids. Those

submitting tenders will be advised of the acceptance or rejec­
tion 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 $200,000 or
less for the additional bills dated August 15, 1963 (91 days re­
maining until maturity date on February 13, 1964) and non­
competitive tenders for $100,000 or less for the 182-day bills
without stated price from any one bidder will be accepted in
full at the average price (in three decimals) of accepted com­
petitive bids for the respective issues. Settlement for accepted
tenders in accordance with the bids must be made or com­
pleted at the Federal Reserve Bank on November 14, 1963,
in cash or other immediately available funds or in a like face
amount o f Treasury bills maturing November 14, 1963. 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 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 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 o f taxa­
tion 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 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 of Treasury bills (other than life insurance com­
panies) 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 of their issue. Copies of the circular may
be obtained from any Federal Reserve Bank or Branch.

This Bank will receive tenders for both series up to 1:30 p.m., Eastern Standard time, Friday, November 8,
1963, at the Securities Department of its Head Office and at its Buffalo Branch. Tender forms for the
respective series are enclosed. Please use the appropriate forms to submit tenders and return them in an envelope
marked “Tender for Treasury Bills.” Tenders may be submitted by telegraph, subject to written confirmation;
they may not be submitted by telephone. Payment for the Treasury hills cannot he made hy credit through the
Treasury Tax and Loan Account. Settlement must he made in cash or other immediately available funds or in
maturing Treasury bills.

This circular was printed before the results of the bidding for Treasury bills to be issued November 7, 1963,
were available; those results will be announced after release by the Treasury Department.




A

lfred

H

ayes,

President.

Closing date for receipt of tenders is Friday, November 8.