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FE D E RA L RE SE R V E BANK
O F NEW YORK
F iscal A g e n t o f the U nited States
r Circular N o. 3 8 5 7 1
M ay 26, 1952
J

L

PAYMENT OF JUNE TAXES

Use of Tax Anticipation Bills
Deposits in Treasury Tax and Loan Accounts

To all Treasury Tax and Loan Depositaries, and Others
Concerned, in the Second Federal Reserve D istrict:

A t the request o f the Treasury Department, we transmit a copy of a letter dated May
20, 1952, from the Secretary o f the Treasury, outlining procedures to be followed in mak­
ing payment o f June 1952 taxes with Treasury Bills, Tax Anticipation Series, maturing
June 15, 1952.
The Treasury has informed us that it w ill instruct Collectors o f Internal Revenue to
deposit with Federal Reserve Banks, during the period June 2 through July 3, 1952, all checks
o f $10,000 or more submitted in payment o f individual or corporate income taxes, excess
profits taxes, interest, or penalties, including deficiencies and payments o f estimated taxes.
These instructions will enable banks qualified as Special Depositaries of Public Moneys to
receive these remittances fo r deposit in their Treasury Tax and Loan Accounts.
The Treasury will decide from time to time whether to make withdrawals from funds aris­
ing from June tax payments or from other funds accumulated in the Tax and Loan Accounts,
basing its decision on the Department’s financing needs and the condition of the money
market at the time.
W e will prepare daily a special form o f cash letter, with an attached certificate form, for
the June tax collections. Until further notice, the amount shown in the certificate will be
for 100 per cent o f the amount o f those checks eligible for credit to Treasury Tax and Loan
Accounts. Special depositaries, wishing to accept funds equal to the amount of the cash letter
fo r deposit in their Treasury Tax and Loan Accounts, should execute and return the certifi­
cate attached to the cash letter, in accordance with the instructions contained in the letter.
For reasons explained by the Secretary in his letter, the amount o f the certificate attached
to the special cash letter will not include those checks of $10,000 or more drawn on funds




that arose from .the redemption of the Tax Anticipation Series Treasury bills or unmatured
Treasury Savings notes. However, in computing the amount to be deposited in Treasury Tax
and Loan Accounts, we will include in the certificate attached to the special cash letter those
checks o f a depositary presenting Treasury Bills, Tax Anticipation Series, due June 15, 1952,
fo r cash redemption fo r its own account, if the depositary certifies that—
(1) The bills were acquired by purchase prior to May 24, 1952 and were held continu­
ously until date of maturity, or
(2) They were acquired on and after May 24, and payment o f the purchase price
was not credited in a custom er’s deposit account on its books.
Requests to apply the. Tax Anticipation bills to the payment o f taxes should be made
on Form T X 3. A request by a bank or trust company to redeem Tax Anticipation bills, matur­
ing June 15, 1952, should be made on Form G. B. 553. Copies o f both form s are enclosed.
Additional copies o f this circular and of the enclosed form s will be furnished upon request.




A

llan

S

proul,

President.

4

THE

SECRETARY

OF

THE

TREASURY

W ASHIN GTO N

M ay 20, 1952

To Treasury T ax and Loan Depositaries,
and Others Concerned:

Treasury Bills, T a x A n ticipation Series, dated N ovem ber 27, 1951, m aturing June 15, 1952, are
outstanding in the amount o f $1,248,825,000. These Treasury bills are acceptable in payment o f Federal
incom e taxes due on their maturity date, and were issued to enable taxpayers to invest their accum u­
lated tax reserves in an interest-bearing security w hich will be received in payment o f Federal incom e taxes.
In order to facilitate the use o f Treasury Bills, T a x A nticipation Series, by taxpayers in payment o f
their incom e taxes, the Treasury has authorized Federal R eserve Banks and Branches, as fiscal agents of
the U nited States, to accept such securities on o r before their m aturity date, from o r for account o f Federal
taxpayers, and to issue receipts to Collectors o f Internal Revenue that such Treasury bills are held for
the purpose o f applying the proceeds o f redemption to the payment o f incom e taxes o f the taxpayer named
in the receipts.
T w o copies o f each receipt will be delivered to the taxpayer concerned, w h o will attach one copy
to his incom e tax return filed with the C ollector o f Internal Revenue. C ollectors o f Internal Revenue
have been instructed (A & C M im eograph, Coll. N o. 6709, Supp. 2, dated Decem ber 27, 1 9 5 1 ) to accept
tax returns to w hich are attached copies o f receipts addressed to them by Federal R eserve Banks and
Branches that T reasu ry bills due June 15, 1952 are being held fo r application o f the proceeds o f redem p­
tion to the paym ent o f incom e taxes o f the taxpayer nam ed in the receipt.
T h e Treasury does not look with favor upon efforts by banks w hich are special depositaries for
T reasury tax and loan accounts to encourage their custom ers to sell to them their Treasury Bills, T a x
A nticipation Series, m aturing June 15, 1952, and to accept paym ent fo r the Treasury bills by a deposit
credit in their checking accounts, or to present T reasu ry Savings notes for cash redem ption, w ith the
proceeds being deposited in their checking accounts, and to pay their taxes by checks drawn on the tax­
payers’ accounts with the banks.

Depositaries follow in g this practice apparently d o so in expectation

that under arrangements w hich have been in effect fo r quarterly tax payments since M arch, 1951, they
m ay obtain a deposit in their T reasu ry tax and loan accounts for an am ount equal to the taxpayers’
checks ( fo r checks over $ 10,000 in am ou nt) drawn on their accounts with the banks, and in regular
course they can present the Treasury bills to the T reasu ry for cash redem ption at maturity.
These practices by depositaries will increase the am ount o f such bills o r Savings notes presented fo r
cash redemption in advance o f the availability o f T reasu ry receipts from the incom e tax instalment due on
June 15, 1952, and will make it m ore difficult for the Treasury and the Federal R eserve System to handle
the large incom e tax collections during June in a m anner that will maintain stability in the m oney market.
A ccord in gly, the Treasury will follow the same procedure as was adopted in connection with the
M arch 15, 1952 incom e ta x instalment. Depositaries having T reasu ry tax and loan accounts are advised
that to the extent they present Treasury bills m aturing June 15, 1952 fo r cash redem ption for their ow n
account o r for the account o f their custom ers, o r if taxpayers present their bills or Treasury Savings




notes fo r cash redem ption, and use the proceeds o f redem ption through deposit w ith and withdrawal
from depositaries by checks in paym ent o f their June 15, 1952 incom e taxes, an equal am ount o f incom e
tax checks o f $ 10,000 and over drawn on such banks in payment o f incom e taxes due June 15, 1952 will
be withheld from deposit in their ta x and loan accounts.
H ow ever, if a depositary presenting T reasu ry Bills, T a x A nticipation Series, due June 15, 1952,
fo r cash redem ption fo r its ow n account, can certify that they were acquired by purchase p rior to M ay 24,
1952, and w ere held continuously until date o f m aturity, o r that they were acquired on and after M ay
24th, and paym ent o f the purchase price was not credited in a custom er's deposit account on its books,
such bills will n ot be included in arriving at the am ount o f incom e tax checks o f $ 10,000 and over to be
withheld from deposit in their tax and loan accounts.




V e ry truly yours,
J

o h n

W . Sn

yd er

S ecreta ry o f the T reasury

G.B. SS3

(S U B M IT W I T H D U P L I C A T E W H I T E C O P Y )

REQUEST B Y A BANK OR TRUST COMPANY FOR REDEMPTION OF TREASURY BILLS,
T A X ANTICIPATION SERIES, DUE JUNE 15, 1952

Date........................................................................... , 1952
F ederal R eserve B a n k of N e w Y o rk ,

Fiscal Agent of the United States,
Federal Reserve P. 0 . Station,
New York 45, N. Y .
Attention: Government Bond Department— 2nd Floor
The undersigned herewith presents and surrenders for redemption
TREASUR Y BILLS, T A X AN TICIP ATIO N SERIES
Dated November 27, 1951

Due June 15, 1952

1. For own account (certification below applies)............................................................................................

$........................................

2. For own account— acquired on and after May 24, 1952 and payment of purchase price credited
on our books in the deposit accounts of the customers shown on the reverse side of this form

$........................... .*
...........

3. For our customers as shown on reverse side of this fo r m ................................................................ .

$........................................

Total amount............................

$........................................

Description of Bills Surrendered
Denomination

Pieces

Face amount

List serial numbers
( I f space is not sufficient, use back o f form .)

$

1,0 00
5,0 00
1 0 ,000
1 0 0,00 0
5 0 0,00 0
1,0 00,00 0

%

Total
C A U T IO N

C E R T IF IC A T E

As a protection to the sender,
shipments of bills by mail should
be registered and insured.

The undersigned hereby certifies that the bills presented, as indi­
cated in item 1 above, are presented for cash redemption for its
own account and were acquired by purchase prior to May 24,
1952 and were held continuously until date of maturity or that
they were acquired on and after May 24 and payment of the
purchase price was not credited in a customer’s deposit account
on our books.

PAYM ENT INSTRUCTIONS
□

By check

^

By credit to reserve account

(N a m e )

(For use of Federal Reserve Bank of New York)

Received

--------------------------(Street Address)

Securities verified
and recorded
--------------------------(City, Zone No., and State)

Payment prepared Payment checked -




By.
(Official Signature and Title Required)

List of customers to which items 2 and 3 on the reverse side apply
Am ount

Name and address o f custom er
(P lea se print or use typew riter)

Total




D E N O M IN A T IO N S A N D S E R I A L N U M B E R S O F B O N D S S U R R E N D E R E D

G.B. 553

(DUPLICATE COPY FOR USE OF FEDERAL RESERVE BAN K OF NEW YORK)

REQUEST BY A BANK OR TRUST COMPANY FOR REDEMPTION OF TREASURY BILLS,
T A X ANTICIPATION SERIES, DUE JUNE 15, 1952

Date........................................................................... , 1952
F ederal R eserve B a n k op N e w Y o r k ,

Fiscal Agent of the United States,
Federal Reserve P. 0 . Station,
New York 45, N. Y .
Attention: Government Bond Department— 2nd Floor
The undersigned herewith presents and surrenders for redemption
TREASUR Y BILLS, T A X AN TICIP A TIO N SERIES
Dated November 27, 1951

Due June 15, 1952

1. For own account (certification below applies)............................................................................................

$........................................

2. For own account— acquired on and after May 24, 1952 and payment of purchase price credited
on our books in the deposit accounts of the customers shown on the reverse side of this form

$........................................

3. For our customers as shown on reverse side of this fo r m .........................................................................

$........................................

Total amount............................

$........................................

Description of Bills Surrendered
Pieces

Denomination

$

Face amount

List serial numbers
(If space is not sufficient, use back of form.)

1,000
5,000
10,000
100,000
500,000
1,000,000
Total
C A U T IO N

CERTIFICATE

As a protection to the sender,
shipments of bills by mail should
be registered and insured.

The undersigned hereby certifies that the bills presented, as indi­
cated in item 1 above, are presented for cash redemption for its
own account and were acquired by purchase prior to May 24,
1952 and were held continuously until date of maturity or that
they were acquired on and after May 24 and payment of the
purchase price was not credited in a customer’s deposit account
on our books.

P AYM ENT INSTRUCTIONS
| By check
]

By credit to reserve account

(F o r use o f Federal R eserve Bank o f N ew Y o r k )
Received

(Name)

----------------------------(Street Address)

Securities verified
and r e c o r d e d ----------------------------(City, Zone No., and State)
Paym ent p r e p a re d ----------------------------Paym ent checked




-----------------------------

By...................................................................................................................
(Official Signature and Title Required)

List o f custom ers to w h ich item s 2 and 3 on the reverse side app ly
Am ount

Name and address o f custom er
(P lea se print or use typew riter)

Total




D E N O M IN A T IO N S A N D S E R I A L N U M B E R S O F B O N D S S U R R E N D E R E D

(S U B M IT W IT H D U P L IC A T E W H IT E C O P Y )
TX3

REQUEST TO APPLY TREASURY BILLS, TA X ANTICIPATION SERIES,
DUE JUNE 15, 1952, TO PAYMENT OF INCOME TAXES
Date........................................................................... , 1952
F ederal R eserve B a n k

o f

N e w

Y ork,

Fiscal Agent of the United States,
Federal Reserve P. 0 . Station,
New York 45, N. Y .
Attention: Government Bond Department— 2nd Floor
The undersigned herewith presents and surrenders the following described TREASUR Y BILLS, T A X A N T IC IP A ­
TION SER IES, dated November 27, 1951, due June 15, 1952, in payment of Federal income taxes due on June 15, 1952:

Pieces

$

List serial numbers
(If space is not sufficient, use back of form.)

Face amount

Denomination

1,000
5,000
10,000
100,000
500,000
1,000,000
Total
PAYM EN T INSTRUCTIONS

Credit the total face amount of the bills described above on June
15, 1952 to the Collector of Internal Revenue at.............................

CAU TIO N

As a protection to the sender, ship­
ments of bearer securities by mail
should be registered and insured.

(S t r e e t A d d r e s s )

(C it y , P .O . N o ., a n d S ta te )

for account of taxpayer indicated below.

Name of taxpayer......................................................................................................................................................
(Print same name that appears on tax return)

Address of taxpayer.................................................................................................................................................
(Street Address)

(City, P.O. No., and State)

Signature of taxpayer...............................................................................................................................................
(Not required when application is submitted on behalf of the taxpayer by an agent.)

Request submitted by..............................................................................................................................................
(Name of Agent)

(Street Address)

(City, P.O. No., and State)

By................................................................................................................................
(Official signature required)

(Title)

(Space below for use o f Federal Reserve Bank o f New Y o rk )

Received




Securities verified and recorded

Receipt prepared

Receipt verified

(D U P L IC A T E C O P Y F O R U SE O F F E D E R A L R E S E R V E B A N K
OF N E W YO R K )
TX3

REQUEST TO APPLY TREASURY BILLS, TA X ANTICIPATION SERIES,
DUE JUNE 15, 1952, TO PAYMENT OF INCOME TAXES
Date........................................................................... , 1952
F ederal R eserve B a n k

o f

N e w

Y ork,

Fiscal Agent of the United States,
Federal Reserve P. O. Station,
New York 45, N. Y .
Attention: Government Bond Department— 2nd Floor
The undersigned herewith presents and surrenders the following described TREASUR Y BILLS, T A X A N TIC IP A ­
TION SERIES, dated November 27, 1951, due June 15, 1952, in payment of Federal income taxes due on June 15, 1952:

Pieces

Face amount

Denomination

$

List serial numbers
(If space is not sufficient, use back of form.)

1,000
5,000
10,000
100,000
500,000
1,000,000
T o ta l

P AYM EN T INSTRUCTIONS
Credit the total face amount of the bills described above on June
15, 1952 to the Collector of Internal Revenue at.............................

C A U T IO N

As a protection to the sender, ship­
ments of bearer securities by mail
should be registered and insured.

(S tr e e t A d d r e s s )

(C it y , P .O . N o ., and S ta te )

for account of taxpayer indicated below.

Name of taxpayer......................................................................................................................................................
(P r in t sam e nam e that appears on ta x r e tu r n )

Address of taxpayer.................................................................................................................................................
(S t r e e t A d d r e s s )

( C it y , P .O . N o ., a n d S ta te )

Signature of taxpayer...............................................................................................................................................
( N o t re q u ire d w hen ap p lication is subm itted o n b e h a lf o f the ta x p a y e r b y an a g e n t.)

Request submitted by..............................................................................................................................................
(N a m e o f A g e n t )

(S tr e e t A d d r e s s )

(C ity , P .O . N o ., and S ta te )

By................................................................................................................................
(O fficia l sign atu re r e q u ir e d )

(T it le )

( S p a c e b e lo w f o r u se o f F e d e ra l R e s e r v e B ank o f N ew Y o r k )

Received




Securities verified and recorded

Receipt prepared

Receipt verified


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102