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FEDERAL RESERVE BANK OF N E W YORK Fiscal Agent of the United States f Circular No. 5 7 2 1 "I U November 12, 1965 J Offering of $2,500,000,000 of 210-Day Tax Anticipation Treasury Bills, Additional Amount Dated October 11, 1965, Due June 22, 1966, To Be Issued November 24, 1965 T o A ll Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal R eserv e D istrict: The following statement was made public today by the Treasury Department: In accordance with earlier plans, the Treasury announced today that it will shortly borrow $2.5 billion in cash through tax anticipation bills that will mature June 22, 1966. This issue will be sold by competitive bidding on W ednesday, November 17, and payment is scheduled for the following Wednesday, November 24. Commercial banks may make full payment for bills allotted them for themselves or customers by credit to Treasury T ax and Loan Accounts. This financing is expected to provide for the remaining cash needs of the Treasury for calendar 1965. Following is the text of the official notice, offering the tax anticipation bills referred to above: The Treasury Department, by this public notice, invites tenders for $2,500,000,000, or thereabouts, of 210-day Treasury bills (to maturity date), to be issued November 24, 1965, on a discount basis under competitive and noncompetitive bidding as hereinafter provided. The bills of this series will be desig nated Tax Anticipation Series and represent an additional amount of bills dated October 11, 1965, to mature June 22, 1966, originally issued in the amount of $1,002,548,000. The additional and original bills will be freely interchangeable. They will be accepted at face value in payment of income taxes due on June 15, 1966, 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 June 15, 1966, income 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, Washington, not more than fifteen days before June 15, 1966, 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 June 15, 1966, 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 p.m., Eastern Standard time, Wednesday, November 17, 1965. 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 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 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 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 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 of this additional issue at a specific rate or price, until after one-thirty p.m., Standard time, Wednesday, November 17, 1965. Eastern 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 Department of the amount and price range of accepted bids. Those sub mitting tenders will be advised of 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. Payment of accepted tenders at the prices offered must be made or completed at the Federal Reserve Bank in cash or other immediately available funds on November 24, 1965, provided, however, any qualified depositary will be per mitted to 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 when so notified by the Federal Reserve Bank of its District. 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 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. 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 N o. 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, Wednesday, November 17 1965 at th,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 Treasurv l!ilk _T Antic.pation Series.” Tenders may be submitted by telegraph, subject to written confirmation; they may not be snh* mitted by telephone. Settlement for accepted tenders must be made in cash or other immediately available funds on November 24 1965, except that any qualified depositary may make payment by credit in its Treasury Tax and I nan Account for Treasury bills allotted to it for itself and its customers up to any amount for which it shall be n m liS in excess of existing deposits. 4 11UCU A lfred H ayes, President. ( over) N o ............................. TENDER FOR 210-DAY TREASURY BILLS TO BE DESIGNATED “TAX ANTICIPATION SERIES” ADDITIONAL ISSUE Dated October 11, 1965, Due June 22, 1966, To Be Issued November 24, 1965 To F e d e r a l R e s e r v e B a n k of N ew Y ork, Fiscal Agent of the United States. Dated at ........................................................ ..............................................................., 1965 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 inviting tenders for the above-described Treasury bills, the undersigned hereby offers to purchase such 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 [ ^ Z n Z ^ e t J e r s Z j $ ............................................................ (maturity value), or any lesser amount that may be awarded. P rice:.....................................Per 100. (P r ic e must be expressed with not m ore than three decimal places, fo r exam ple, 99.925) NONCOMPETITIVE TENDER $ ............................................................ (maturity value). (N o t to ex ceed $400,000 fo r one bidder through all sou rces) At the average price of accepted competitive bids. Subject to allotment, payment for these bills will be made at your Bank on November 24, 1965, 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 h ereb y agree n ot to b u y or to sell, or to m ake an y a greem en ts w ith resp ect to the purchase or sale or oth er disposition of any bills o f this issue at a specific rate or price, until after on e-th irty p .m ., E astern Standard tim e, W e d n e sd a y , N o v e m b e r 1 7 , 19 65 . Name of subscriber............................................................... Insert this tender in blue envelope marked “Tender for Treasury Bills— Tax Anticipation Series” (Please print) B y .............................................................................. . B y ................ (Official signature(s) required) Title ........................................................................... Address Title ............ ....... .................. (Banks submitting tenders for customer account must indicate name on line below, or attach a list) (Name o£ customer) (Name of customer) (N ote. 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. 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. 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 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 “ .................................................................................................. j 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 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. 5. If the language of this tender is changed in any respect, which, in the opinion of the Secretary of the Treasury, is material, the tender may be disregarded. F ederal R eserve B a n k of New Y 1 ork NOTICE OF ALLOTMENT OF UNITED STATES OF AMERICA TREASURY BILLS T A X ANTICIPATION SERIES November 18, 1965. Your □ competitive □ noncompetitive tender for— U N ITE D S T A T E S OF A M E R IC A 2 1 0 -D A Y T R E A S U R Y BILLS— T A X A N T IC IP A T IO N SERIES A D D IT IO N A L A M O U N T , SERIES D A T E D O C T O B E R 11, 19 65, DUE JUNE 22, 1966 (T O BE ISSUED N O V E M B E R 24 , 1 9 S 5 ) 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 November 24, 1965. However, a qualified deposi tary may make settlement by credit to its Treasury Tax and Loan Account, provided the advice of deposit attached to the enclosed letter-of-instructions form is executed and returned immedi ately. If settlement is to be made by check on a bank other than the Federal Reserve Bank of New York, such checks should be received by us in time for collection on November 24, 1965 ; 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 tota l a m ou n t of Treasury bills of this issue awarded to you, and return the letter immediately to our Government Bond Division. F ederal R eserve B a n k of New Y ork Fiscal Agent of the United States Checked by PENDING DELIVERY TICKET FOR GOVERNMENT BOND DIVISION □ competitive □ noncompetitive U N ITE D S T A T E S OF A M E R IC A 2 1 0 -D A Y T R E A S U R Y BILLS— T A X A N T IC IP A T IO N SERIES A D D IT IO N A L A M O U N T , SERIES D A T E D O C T O B E R 11, 1 9 6 5 , DUE JUNE 22 , 1966 (T O BE ISSUED N O VE M B ER 24, 1 9 6 5 ) price of $ PU R C H ASE PRICE MASTER M A T U R IT Y V A L U E P U R C H ASE PRICE DISPOSITION □ AMOUNT M ETH O D OF P A Y M E N T Over the Counter Q Safekeeping □ Ship □ Treasury Tax & Loan Q Allotment Transfer □ Check or Cash □ Reserve Account □ Treas. T. & L. Acc. □ Delivery Teller □ Foreign Oper. Div. [ j Form 12 2 ALLOTMENT NOTICE FOR SECURITIES DEPARTMENT □ competitive □ noncompetitive U N ITE D S T A T E S OF A M E R IC A 2 1 0 -D A Y T R E A S U R Y BILLS— T A X A N T IC IP A T IO N SERIES A D D IT IO N A L A M O U N T , SERIES D A T E D O C T O B E R 11, 1 9 65 , D UE JUNE 22 , 19 66 (T O BE ISSUED N O VE M B ER 24 , 1 9 6 5 ) price of ALLOTMENT NOTICE FOR SECURITY FILES □ competitive □ noncompetitive U N ITE D S T A T E S OF A M E R IC A 2 1 0 -D A Y T R E A S U R Y BILLS— T A X A N T IC IP A T IO N SERIES A D D IT IO N A L A M O U N T , SERIES D A T E D O C T O B E R 11, 1 9 65 , D UE JUNE 22 , 19 66 (T O BE ISSUED N O V E M B E R 24 , 1 9 6 5 ) price of
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