View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

FED ERAL RE SE R V E BANK
O F NEW YORK
F iscal A g en t o f the U nited States
rC ircu lar N o. 3 8 8 9 1
A ugust 26, 1952 J

L

DEPOSITS O F SEPTEMBER TAX COLLECTIONS IN TREASURY TAX AND LOAN ACCOUNTS

To All Banks and Trust Companies in the
Second Federal Reserve D istrict:

The Secretary o f the Treasury has announced that Collectors o f Internal Revenue have
been instructed to deposit with Federal Reserve Banks, during the period September 1 through
October 3, 1952, all remittances (except savings notes) o f $10,000 or more submitted in pay­
ment of individual or corporate income taxes, excess profits taxes, interest, or penalties,
including deficiencies and payments of estimated taxes. These instructions will enable banks
qualified as Special Depositaries o f 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
arising from September tax payments or from other funds accumulated in the Tax and Loan
Accounts, basing its decision on the Departm ent’s financing needs and the condition of the
money market at the time.
W e will prepare daily a special form of cash letter, with an attached certificate, for the
September tax collections. Until further notice, the amount shown in the certificate will be
fo r 100 per cent o f the amount of those checks eligible fo r credit to Treasury Tax and Loan
Accounts. Special depositaries, wishing to accept funds equal to the amount o f the cash letter
for deposit in their Treasury Tax and Loan Accounts, should execute and return the certificate
attached to the cash letter, in accordance with the instructions contained in the letter.
Your attention is directed to our Circular No. 3857, May 26, 1952, in which we printed a
letter of Secretary Snyder stating that the Treasury does not look with favor upon efforts by
qualified depositaries to encourage their customers to redeem Treasury Savings notes, deposit
the proceeds, and pay their taxes by checks drawn on the proceeds.
In keeping with this view o f the Treasury Department, we will not include in the amount
o f the certificate attached to the special cash letter those tax checks o f $10,000 or more drawn
against proceeds o f matured or unmatured Treasury Savings notes redeemed on or about
September 15, 1952.
Additional copies o f this circular will be furnished upon request.




A l l a n S prou l,

President.

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