The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FE D E R A L R ES ER V E BANK O F NEW YORK Fiscal Agent of the United States I" Circular No. 5 8 1 6 "1 L M ay 23, 1966 J OFFERING OF TWO SERIES OF TREASURY BILLS $1,300,000,000 of 91-Day Bills, Additional Amount, Series Dated March 3, 1966, Due September 1, 1966 (To Be Issued June 2, 1966) $1,000,000,000 of 182-Day Bills, Dated June 2, 1966, Due December 1, 1966 To A ll Incorporated Banks and Trust Companies, and Others Concerned, in the Second Federal R eserve D istrict: Following is the text of a notice issued by the Treasury Department, released for publication today at 4 p.m., Eastern Daylight Saving tim e: T h e T reasury D epartm ent, by this public notice, invites tenders for tw o series of T reasu ry bills to the aggregate am ount of $2,300,000,000, or thereabouts, for cash and in e x change for T reasury bills maturing June 2, 1966, in the am ount of $2,301,540,000, as fo llo w s: 91-day bills (to m aturity date) to be issued June 2, 1966, in the am ount of $1,300,000,000, or thereabouts, representing an additional am ount of bills dated M arch 3, 1966, and to mature Septem ber 1, 1966, originally issued in the am ount of $1,001,471,000, the additional and original bills to be freely interchangeable. 182-day bills, for $1,000,000,000, or thereabouts, to be dated June 2, 1966, and to mature D ecem ber 1, 1966. T h e bills of both series will be issued on a discount basis under com petitive and noncom petitive bidding as hereinafter provided, and at m aturity their 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 R eserve B anks and Branches up to the closing hour, one-thirty p.m ., Eastern D a yligh t S avin g time, Friday, M a y 27, 1966. T en ders will not be received at the T reasu ry D epartm ent, W ash in g ton . Each tender m ust be for an even multiple of $1,000, and in the case of competitive 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. It is urged that tenders be m ade on the printed form s and forwarded in the special envelopes which will be supplied by Federal R eserve Banks or Branches on application therefor. Banking institutions generally m ay submit tenders for account of custom ers, provided the names of the custom ers are set forth in such tenders. O th ers than banking institutions will not be permitted to subm it tenders except for their ow n account. T enders 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 o f 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. Im m ediately after the closing hour, tenders will be opened at the Federal R eserve Banks and Branches, follow ing which public announcem ent will be made by the T reasu ry D e p art ment of the am ount and price range of accepted bids. T h o se subm itting tenders will be advised of the acceptance or rejec tion 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 each issue 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 com petitive bids for the respective issues. Settle ment for accepted tenders in accordance with the bids m ust be made or com pleted at the Federal R eserve Bank on June 2, 1966, in cash or other im m ediately available funds or in a like face am ount of T reasury bills m aturing June 2, 1966. Cash and exchange tenders will receive equal treatment. Cash adjust m ents will be m ade for differences betw een the par value of m aturing bills accepted in exchange and the issue price of the new bills. T h e incom e derived from T reasury bills, whether interest or gain from the sale or other disposition o f 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 m ent, as such, under the Internal Revenue Code o f 1954. T h e bills are subject to estate, inheritance, gift or other excise taxes, w hether 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. 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 2 2 1 (5 ) of the Internal Revenue C ode of 1954, the am ount of discount at which bills issued hereunder are sold is not considered to accrue until such bills are sold, redeem ed or otherwise 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 betw een 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 which the return is m ade, as ordinary gain or loss. Treasury D ep artm ent Circular N o . 418 (current revision) and this notice prescribe the term s of the T reasury bills and govern the conditions o f their issue. Copies of the circular m ay be obtained from any Federal Reserve B ank or Branch. This Bank will receive tenders for both series up to 1 :30 p.m., Eastern Daylight Saving time, Friday, May 27, 1966, 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 bills cannot be made by credit through the Treasury Tax and Loan Account. Settlement must be 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 May 26, 1966, 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 , May 27.
@FedFRASER