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F E D E R A L R E S E R V E BANK OF NEW YORK Fiscal Agent of the United States [ Circular N o. 5 4 3 3 "1 December 23, 1963 J Offering of $1,000,000,000 of Special 363-Day Treasury Bills Dated January 3, 1964 Maturing December 31, 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 for release today: The Treasury Department, by this public notice, invites tenders for $1,000,000,000, or thereabouts, of 363-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 dated January 3, 1964, and will mature D ecem ber 31, 1964, when the face amount will be payable with out interest. T h ey w ill 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, M onday, Decem ber 30, 1963. Tenders will not be received at the Treasury Department, W ashington. Each tender must be for an even multiple o f $1,000, and in the case o f 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. (N otwithstanding the fact that these bills will run for 363 days, the discount rate will be computed on a bank discount basis o f 360 days, as is currently the practice on all issues of Treasury bills.) It is urged that tenders be made on the printed form s and forwarded in the special envelopes which will be supplied by Federal Reserve Banks or Branches on application therefor. mitting tenders will be advised of the acceptance or rejection thereof. T he 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, noncom petitive tenders for $200,000 or less without stated price from any one bidder will be accepted in full at the average price (in three decimals) o f accepted com petitive bids. Payment o f 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 January 3, 1964. 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. 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 o f Treasury bills does not have any special treat ment, as such, under the Internal Revenue Code o f 1954. The bills are subject to estate, inheritance, gift or other excise taxes, whether Federal or State, but are exem pt from all taxa tion now or hereafter im posed 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 o f 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 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. A ccordingly, the owner o f 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. 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 o f accepted bids. T h ose sub Treasury Departm ent Circular N o. 418 (current revision) and this notice, prescribe the terms of the Treasury bills and govern the conditions o f 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 Standard time, Monday, December 30, 1963, 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 itin the enclosed yellow envelope marked “Tender for Special Treasury Bills.” Tenders may be submitted by telegraph, subject to written confirmation; they may not be submitted by telephone. Payment for 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 funds. A lfred Hayes, President. ( over) IMPORTANT— The discount rate on the bills of this issue will be computed on a bank discount basis of 36 0 d a y s , as iscurrently the practice on all issues of Treasury bills. No.............................. TENDER FOR SPECIAL 363-DAY TREASURY BILLS Dated January 3, 1964 Maturing December 31, 1964 To of N ew Y ork, Dated at ................... Fiscal Agent of the United States. ..................... t 1963 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 thistender, 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 January 3, 1964 at the price indicated below: F ederal R eserve B a n k COMPETITIVE TENDER [ not filU n both Competitive and 1 L Noncompetitive tenders on one form J $.................... (maturity value), or any lesser amount that may be awarded. Price:............ per 100. (P rice must be expressed with not more than three decimal places, for example, 99.925) NONCOMPETITIVE TENDER $................. . (maturity value). (N ot to exceed $200,000 for one bidder through a ll sources) At the average price ofaccepted 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 0 50,000 □ 1. Deliver over the counter to the undersigned 2. Ship to the undersigned 3. Hold in safekeeping (for 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 100,000 500,000 1,000,000 (N o changes in delivery instruction will be accepted) Total (Payment cannot be made through Treasury Tax and Loan Account) * Ifthisitem ischecked, the undersigned certifiesthat the allotted bills will be owned solely by the undersigned Name of subscriber (Please print) In sert th is ten d er By ............................ in y e llo w m a rk ed S p e c ia l en v e lo p e “ T en d er T rea su ry fo r Title ........................ By (Official signature(s) required) ................... T i t l e .............. B ills” Address (Banks submitting tenders for customer account must indicate name on line below, or attach a list) (Name of customer) I N 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 o f $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 o f payment. Form s 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 o f the corporation authorized to make the tender, and the signing o f 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, w ho should sign in the form “ ........................................................................................... . a copartnership, by ......................................................................................................... a m em ber 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 of 2 percent of the face amount o f Treasury bills applied for, unless the tenders are accompanied by an express guaranty of payment by an incorporated bank or trust company. 5. If the language of this tender is changed in any respect, which, in the opinion o f the Secretary o f the Treasury, is material, the tender may be disregarded. ENV 7 4 A Federal Reserve Bank of New York Securities Department (9th Floor) 33 Liberty Street TENDER FOR SPECIAL TREASURY b il l s (D O N O T U SE T H IS E N V E L O P E F O R O T H E R PU R P O SE S ) http://fraser.stlouisfed.org/ ENV 7 4 A - 1 5 M - 9 - 6 3 Federal Reserve Bank of St. Louis New York, N. Y. 10045
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