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FEDERAL R E SE R V E BANK OF N E W YORK Fiscal Agent of the United States rCircular No. 5 5 2 3 “! L July 23, 1964 J Offering of $1,000,000,000 of Special 361-Day Treasury Bills Dated August 4, 1964 Maturing July 31, 1965 To All Incorporated Bunks and Trust Companies, and Others Concerned, in the Second Federal Reserve District: Following is the text of a notice issued by the Treasury Department for release today: T he T reasu ry D epartm ent, by this public notice, invites tenders for $1,000,000,000, or thereabouts, of 361-day Treasury bills, to be issued on a discount basis under competitive and noncom petitive bidding as hereinafter provided. T h e bills of this series will be dated A u g u st 4, 1964, and will mature July 31, 1965, when the face am ount will be payable without interest. T h e y will be issued in bearer form only, and in denom inations of $1,000, $5,000, $10,000, $50,000, $100,000, $500,000 and $1,000,000 (m aturity value). Tenders will be received at Federal Reserve Banks and Branches up to the closing hour, one-thirty p.m ., Eastern D ayligh t Saving time, T h ursd ay, July 30, 1964. T enders will not be received at the T reasury D epartm ent, W a sh in g to n . Each tender m ust be for an even multiple of $1,000, and in the case of com petitive tenders the price offered m ust be expressed on the basis of 100, with not m ore than three decimals, e.g., 99.925. Fractions m ay not be used. (N otw ith stan din g the fact that these bills will run for 361 days, the discount rate will be computed on a bank discount basis of 360 days, as is currently the practice on all issues of T reasury 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. m itting tenders will be advised of the acceptance or rejection thereof. T h e Secretary of the T reasury 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, 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 decim als) of accepted co m petitive bids. P aym ent of accepted tenders at the prices offered m ust be m ade or com pleted at the Federal Reserve Bank in cash or other im m ediately available funds on A u g u st 4, 1964. B anking institutions generally m ay submit tenders for account of custom ers provided the nam es o f the custom ers are set forth in such tenders. O th ers than banking institutions will not be permitted to submit tenders except for their own account. T en ders will be received without deposit from incor porated banks and trust companies and from responsible and recognized dealers in investm ent securities. T enders from others m ust be accom panied by paym ent of 2 percent of the face am ount of T reasury bills applied for, unless the tenders are accom panied by an express guaranty of paym ent by an incorporated bank or trust com pany. T h e incom e derived from T reasury bills, w hether interest or gain from the sale or other disposition of the bills, does not have any exem ption, as such, and loss from the sale or other disposition of T reasury bills does not have any special treat ment, as such, under the Internal R evenue Code of 1954. T h e 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 U nited States, or by any local taxing authority. F or purposes of taxation the am ount of discount at w hich T reasury bills are originally sold by the U nited States is considered to be interest. U nder Sections 4 5 4 (b ) and 1 22 1 (5 ) of the Internal Revenue Code of 1954 the am ount of discount at w hich bills issued hereunder are sold is not considered to accrue until such bills are sold, redeemed or otherw ise disposed of, and such bills are excluded from consideration as capital assets. A cco rd in gly , the ow ner of T reasury bills (other than life insurance co m 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 am ount actually received either upon sale or redem ption at m aturity during the taxable year for w hich the return is made, as ordinary gain or loss. Im m ediately after the closing hour, tenders will be opened at the Federal Reserve B anks and Branches, follow in g which public announcem ent will be made by the T reasury Departm ent of the am ount and price range of accepted bids. T h ose sub T reasury D epartm ent Circular N o . 418 (current revision) and this notice, prescribe the term s of the T reasu ry bills and govern the conditions of their issue. Copies of the circular m ay be obtained from any Federal R eserve Bank or Branch. This Bank will receive tenders up to 1 :30 p.m., Eastern Daylight Saving time, Thursday, July 30, 1964, 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 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 jor 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. 19 14 A lfred H ayes, President. ( over) FI FTI ETH A N N I V E R S A R Y 19 6 4 IM PORTANT— The discount rate on the bills of this issue will be computed on a bank discount basis of 360 days, as is currently the practice on all issues of Treasury bills. No............................ TENDER FOR SPECIAL 361-DAY TREASURY BILLS Dated August 4, 1964 To F e d e ra l R eserve B ank o f N ew Maturing July 31, 1965 Dated at .................................................... ..........................................................., 1964 Y ork, Fiscal Agent of the United States. Pursuant to the provisions of Treasury Department Circular No. 418 (current revision) and provisions of the public notice issued by the Treasury Department and printed on the reverse side of this the undersigned hereby offers to purchase the above described Treasury bills in the amount indicated and agrees to make payment therefor at your Bank on or before August 4, 1964 at the price indicated COMPETITIVE TENDER [ NONCOMPETITIVE TENDER not fill. in both Competitive and 1 Noncompetttive tenders on one form $ ........................................................ (maturity value), or any lesser amount that may be awarded. P r ic e :.................................. per 100. (Price must be expressed zmth not more than three decimal plates, for example, 99.925) to the tender, below, below: $ ................................................ ........(maturity value). (Not to exceed $200,000 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. 3. Ship to the undersigned H old in safekeeping (fo r ac count o f member bank on ly )* □ 4. Allotment attached) □ 5. Special instructions: transfer (see Payment will be made as follow s: □ By charge to our reserve account □ By cash or check in immediately available funds list 100,000 500,000 1,000,000 (No changes in delivery instructions will be accepted) Total (Payment cannot be made through Treasury Tax and Loan Account) * If this item is checked, the undersigned certifies that the allotted bills will be owned solely by the undersigned. N am e of subscriber .................................................................................. (Please print) Insert this tender in yellow envelope marked ‘’Tender for Special Treasury Bills’ By .. By (Official si'gnature(s) required) Title ..................... Title ............ A d d ress (B an k s subm itting tenders for custom er account m ust indicate name on line below , or attach a list) (N am e of custom er) 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 (m atu rity valu e). 2. O th ers than banking institutions w ill not be permitted to submit tenders except for their ow n account. Banks subm itting tenders for custom er account m ay consolidate com petitive tenders at the same price and m ay consolidate non com petitive tenders, provided a list is attached show ing the name of each bidder, the am ount bid for his account, and m eth od o f paym ent. F orm s for this purpose will be furnished on request. 3. I f the person m aking the tender is a corporation, the tender should be signed by an officer of the corporation authorized to m ake 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 m em ber of the firm, w ho should sign in the form “ ......................................................................................................... a copartnership, by ...................................................................................................................... . a m em ber of the firm .” 4. T en ders will be received w ithout deposit from incorporated banks and trust com panies and from responsible and recognized dealers in investm ent securities. T enders from others m ust be accom panied by paym ent of 2 percent of the f a c e am ount o f T reasu ry bills applied for, unless the tenders are accom panied by an express guaranty of paym ent by an incorporated bank or trust com pany. 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 m aterial, the tender m ay be disregarded.
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