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FEDERAL
OF

RESERVE
NEW

BANK

YORK

Fiscal Agent of the United States
rCircular No. 2 6 4 8
L
July 7, 1943
J

REGULATIONS GOVERNING THE PAYMENT THROUGH DEPOSITARY BANKS OF
FUNDS WITHHELD AS TAXES IN ACCORDANCE WITH THE PROVISIONS
OF THE CURRENT TAX PAYMENT ACT OF 1943
To all Banks and Trust Companies in the
Second Federal Reserve District:

W e enclose herewith the f o l l o w i n g d o c u m e n t s :
(1) Treasury Department Press Release dated June 28, 1943, describing the arrangement whereby
certain banks may qualify as depositaries to receive from employers funds withheld under the
Current Tax Payment Act of 1943.
(2) One copy of Treasury Department Circular No. 714, dated June 25, 1943, entitled "Regulations Governing the Payment through Depositary Banks of Funds Withheld as Taxes in Accordance
with the Provisions of the Current Tax Payment Act of 1943".
(3) Two copies of Form No. 411a, entitled "Resolution Authorizing Execution of ApplicationAgreement, Depositary for Withheld Taxes".
(4) Two copies of Form No. 411, entitled "Application-Agreement Depositary for Withheld
Taxes".
(5) One copy of Treasury Department Circular No. 660, First Supplement, pertaining to a
special issue of bonds of the United States, designated 2 Percent Depositary Bonds, Second Series.
1.

Banks

Designated

to Act as Depositaries

for Withheld

Taxes.

S e c t i o n 5 o f T r e a s u r y D e p a r t m e n t C i r c u l a r N o . 714 p r o v i d e s that all i n c o r p o r a t e d , i n s u r e d
banks a r e d e s i g n a t e d as d e p o s i t a r i e s and financial agents of the G o v e r n m e n t f o r receiving f r o m
e m p l o y e r s and other p e r s o n s f u n d s withheld as taxes p u r s u a n t t o the C u r r e n t T a x P a y m e n t
A c t o f 1 9 4 3 ; p r o v i d e d , that n o insured bank shall p e r f o r m any o f the acts c o v e r e d b y such
d e s i g n a t i o n until i t has qualified so to act in the manner p r e s c r i b e d in such regulations. B a n k ing institutions which have h e r e t o f o r e been d e s i g n a t e d as d e p o s i t a r i e s and financial agents o f
the G o v e r n m e n t f o r the p e r f o r m a n c e o f certain classes o f fiscal duties will be required to q u a l i f y
u n d e r the t e r m s o f Circular N o . 714 in o r d e r t o act as D e p o s i t a r i e s f o r W i t h h e l d T a x e s .
2. Procedure

for Qualification

of Designated

Banks

as Depositaries

for Withheld

Taxes.

A n y d e s i g n a t e d bank in the S e c o n d F e d e r a l K e s e r v e District d e s i r i n g t o q u a l i f y a s a
" D e p o s i t a r y f o r W i t h h e l d T a x e s " u n d e r the t e r m s o f T r e a s u r y D e p a r t m e n t C i r c u l a r N o . 714,
m u s t d o the f o l l o w i n g :
(a) A resolution must be passed by its Board of Directors authorizing the execution of an application
and agreement of the bank to act as a "Depositary for Withheld Taxes." This resolution must be
in the prescribed form (Treasury Form 411a). The Board of Directors, in its resolution, may
elect to limit authority to execute the application and agreement to specified classes of officers of
the bank rather than to have all the classes indicated in Treasury Form 411a authorized.
(b) An officer of the bank, authorized in the resolution, must execute in its behalf an application and
agreement for the bank to act as a "Depositary for Withheld Taxes." This application and agreement must be in the prescribed form (Treasury Form 411). The application-agreement (Form
411) must be attested by another officer of the bank and the seal of the bank must be affixed.
(c) One duly executed copy of the application-agreement (Form 411) together with one duly certified
copy of the resolution (Form 411a) must be submitted to the head office of the Federal Reserve
Bank of New York, 33 Liberty Street, New York, N. Y. The second copy of each of these forms
may be retained by the applying bank for its files.
T h e p r o c e d u r e outlined a b o v e should be f o l l o w e d w h e r e v e r p r a c t i c a b l e ; but in a n y case in
which a b a n k d e s i r e s to q u a l i f y p r o m p t l y but is unable to c o m p l y w i t h the regulations r e q u i r i n g
a resolution o f its b o a r d o f d i r e c t o r s , because its d i r e c t o r s ' m e e t i n g s are not held until the close




(OVER)

of the month, the application-agreement (Form 411) will be accepted if it is executed by an
officer of the bank specifically authorized to execute such agreement by a duly authorized committee of the board of directors or if it is executed by an officer of the bank who has general
authority to act in behalf of the bank. Such officer should, in each case, be of the class indicated
in Form 411a. All such agreements which are accepted without supporting board resolution
must be ratified by the board of directors at its next meeting and a certified copy of the ratifying resolution (Form 411a with appropriate modifications) must be sent to the Federal Reserve
Bank immediately and in any event not later than ten days after such meeting.
No bank may act as a Depositary for Withheld Taxes under the terms of Treasury Department Circular No. 714 until it receives from the Federal Reserve Bank written notice of
approval of such application.
In the case of an applicant bank which has one or more branches, the resolution and
application-agreement with respect to the parent bank will be construed as covering its branch
or branches.
3. Procedure

of Depositaries

for Withheld

Taxes.

Each bank that qualifies as a Depositary for Withheld Taxes shall open and maintain
on its books a special account entitled "Federal Reserve Bank of New York, Fiscal Agent of
the United States—Withheld Taxes". To this special account shall be credited all withheld
taxes received by the depositary from employers. The depositary shall issue to each employer
for each such payment of withheld taxes received by the depositary from such employer a
"Depositary Receipt for Withheld T a x e s " (Form No. 410) as provided in section 7 of Treasury Department Circular No. 714.
When deposits in such special account reach a balance of $5,000 the entire balance in such
account must be remitted, not later than the following business day, to the Federal Reserve
Bank for credit to the account of the Treasurer of the United States. Such remittances, however, are not required to be made more frequently than once each day. The entire balance in
the special account on the last business day in each month, regardless of the size of the balance,
must be remitted to the Federal Reserve Bank not later than the following business day. More
information relating to the procedure to be followed in connection with the operation of such
special account will be found in section 7 of Treasury Department Circular No. 714; and
detailed instructions regarding the procedure to be followed will be transmitted by the Federal
Reserve Bank to all banks that qualify as Depositaries for Withheld Taxes.
A supply of depositary receipts (Form No. 410) and remittance forms will be sent to each
depositary bank with the notice of approval of its application, and additional supplies of such
forms will be furnished upon request.
4. Provision

for Offsetting Costs of Depositaries

for Withheld

Taxes.

For the purpose of offsetting additional costs incurred by depositaries in receiving and
accounting for deposits of withheld taxes, two alternative methods are provided by which a
depositary may purchase 2 Percent Depositary Bonds, Second Series, issued pursuant to
Treasury Department Circular No. 660, First Supplement. Under one method the depositary
will be permitted to purchase such bonds with its own funds, and under the other method such
bonds may be purchased with certain funds placed with the depositary to the credit of the
Treasurer of the United States. Detailed provisions relating to these methods are contained in
section 8 of Treasury Department Circular No. 714, and the amount of 2% depositary bonds
which a depositary will be permitted to purchase under either alternative is shown in the
schedule attached to such circular (Exhibit C).
Further information and additional copies of this circular and of the enclosures will be
furnished upon request.




ALLAN

SPROUL,

President.

F E D E R A L RESERVE BANK OF NEW

YORK

Fiscal Agent of the United States

TREASURY

DEPARTMENT

Washington
FOR RELEASE, MORNING
Monday, June 28, 1943.
6-26-43

NEWSPAPERS,

Press Service
No. 37-21

Secretary Morgenthau announced today that regulations are being prepared under which all banks
insured by the Federal Deposit Insurance Corporation may qualify as Government depositaries to
receive withheld taxes.
The regulations are being issued under the Current Tax Payment Act of 1943, approved June 9,
1943. Under the arrangement, withheld taxes will be available to the Treasury on a current basis,
before employers' quarterly tax returns are made to collectors of internal revenue.
Information released by the Commissioner of Internal Revenue in Circular W T . copies of which
may be obtained from collectors of internal revenue, is to the effect that on or before the last day of
the month following the close of each quarter, every employer will be required to make a tax return
to the collector of his district, covering the aggregate amount of taxes withheld during that quarter.
It will be the duty of every employer who withholds more than $100 during the month to pay,
within 10 days after the close of each month, to a depositary authorized by the Secretary of the
Treasury to receive such payments, all funds withheld as taxes during that month ; except that amounts
withheld during the last month of a quarter may, at the election of the employer, be remitted directly
to the collector with the employer's tax return.
In making payment to the collector of the amount due as shown on the tax return, the employer
must attach thereto receipts, in the form approved by the Secretary of the Treasury, issued by the
authorized depositary evidencing payments made to such depositary of funds withheld as taxes.
The employer who withholds $100 or less during the month may elect either to remit the amount
withheld to the collector with his quarterly tax return or to pay it monthly to an authorized depositary.
All incorporated banks which are insured by the Federal Deposit Insurance Corporation will be
designated by the Secretary of the Treasury to receive funds withheld as taxes, and any such banks
may qualify to act under the designation. Qualification will be accomplished, through the Federal
Reserve banks, upon the execution of an application and agreement.
Arrangements will be made whereby depositaries will be enabled to offset expenses incurred in
acting under their designations. Such arrangements will be similar in principle to those employed with
respect to existing Government depositaries and financial agents.
Each bank which qualifies will accept from employers deposits of funds withheld as taxes, for
account of the Federal Reserve bank of its district as fiscal agent of the United States. Remittance of
the entire balance will be made to the Federal Reserve bank for account of the Treasurer of the United
States, when the balance equals or exceeds $5,000. Such remittances, however, will not be made more
frequently than daily and at the end of each month the entire balance will be remitted. All remittances
will be in funds immediately available at the Federal Reserve bank point.
At the time of receiving a deposit of withheld taxes, the depositary will issue to the employer a
receipt therefor in the form prescribed by the Secretary of the Treasury. The receipts will be prepared
in triplicate. The original is to be retained by the employer until filed with his quarterly return. The
first copy will be sent to the Federal Reserve bank with the depositary's remittance, and the second
copy will be retained as the depositary's record of the transaction.
All matters in connection with the establishment and administration of this system will be handled
through the Federal Reserve banks as fiscal agents of the United States. Regulations, instructions,
application forms, etc., will be made available as soon as possible. After the regulations are in effect
the Federal Reserve banks will notify all banks in their districts as to the banks which qualify thereunder as depositaries for withheld taxes.




REGULATIONS

GOVERNING THE PAYMENT

THROUGH

DEPOSITARY

BANKS OF

TAXES IN A C C O R D A N C E W I T H THE PROVISIONS O F THE CURRENT T A X

1943

Department Circular No. 714
Fiscal Service—Bureau of Accounts
Division of Deposits

FUNDS W I T H H E L D

PAYMENT ACT OF

AS

1943

TREASURY
DEPARTMENT
OFFICE OF THE SECRETARY

Washington, June 25,19US.

1. Pursuant to Section 10 of the Act of June 11, 1942 (56 Stat. 356) and Section 1631 of the
Internal Revenue Code, as added by the Current Tax Payment Act of 1943 (Public Law 68, approved
June 9, 1943), the following regulations governing the payment through depositary banks of funds
withheld as taxes are hereby prescribed:
2. Instructions of Commissioner of Internal Revenue Relative to Payment of Taxes.

The Commissioner of Internal Revenue has issued Circular WT, dated June 1943,1 with reference to the collection of income tax at source on wages, in which employer's duties under the provisions of the Current Tax Payment Act of 1943 are explained. The circular contains, in part, the
following information:
"19.

P A Y M E N T OF T A X

It will be the duty of every employer who withheld more than $100 during the month to
pay, within 10 days after the close of each calendar month, to a depositary and financial agent
authorized by the Secretary of the Treasury to receive deposits of withheld taxes, pursuant to
Section 1631 of the Internal Revenue Code as added by the Current Tax Payment Act of 1943,
all funds withheld as taxes during that calendar month. (All banks insured by the Federal
Deposit Insurance Corporation are eligible to qualify as depositaries and financial agents.) On
or before the last day of the month following the close of each quarter of each calendar year,
every employer shall make a return on Form W - l to the collector of his district, covering the
aggregate amount of taxes withheld during that quarter, and attach to such return, as payment
for the taxes shown thereon, receipts in the form approved by the Secretary of the Treasury,
issued by the authorized depositary and financial agent evidencing the payment of funds withheld as taxes; Provided, however, That for taxes withheld during the last month of the quarter
the employer may, at his election, in lieu of this method of payment, include with his return direct
remittance to the collector for the amount of the taxes withheld during such last month of the
quarter. The employer may obtain from his local bank the names and locations of the nearby
depositaries and financial agents authorized to receive deposits of withheld taxes. A list of the
depositaries and financial agents will be furnished each bank by the Federal Reserve Bank of the
District."
3. Authority to Use Insured Banks as Depositaries of Public Money.

Section 10 of the Act approved June 11, 1942 (U. S. C., 1940 ed., Sup. II, Title 12, Sec. 265),
provides in part as follows:
"All insured banks designated for that purpose by the Secretary of the Treasury shall be
depositaries of public money of the United States * * * and the Secretary is hereby authorized to deposit public money in such depositaries, under such regulations as may be prescribed
by the Secretary; and they may also be employed as financial agents of the Government; and
they shall perform all such reasonable duties, as depositaries of public money and financial
agents of the Government as may be required of them * * * ."
4. Authority to Use Government Depositaries in Connection With Payment of Taxes.

Section 1631 of the Internal Revenue Code as added by the Current Tax Payment Act of 1943
provides as follows:
"The Secretary may authorize incorporated banks or trust companies which are depositaries or financial agents of the United States to receive any taxes under this chapter in such manner, at such times, and under such conditions as he may prescribe; and he shall prescribe the
manner, times and conditions under which the receipt of such taxes by such depositaries and
financial agents is to be treated as payment of such taxes to the collectors."




16—357G4-1

2
5. Designation of Government Depositaries in Connection With Payment of Taxes.

All incorporated insured banks, within the meaning of Section 10 of the Act of June 11, 1942,
referred to in Section 3 of this circular, are hereby designated, subject to the provisions of this circular, as depositaries and financial agents of the Government for receiving from employers or other
persons, hereinafter referred to as employers, funds withheld as taxes pursuant to the Current Tax
Payment Act of 1943; Provided, That no insured bank shall perform any of the acts covered by this
designation until it has qualified so to act in the manner herein prescribed.
Banking institutions which have heretofore been designated as depositaries and financial agents
of the Government for the performance of certain classes of fiscal duties will be required to qualify
under the terms of this circular in order to act as Depositaries for Withheld Taxes.
Incorporated banks or trust companies located in the territories and insular possessions of the
United States, which are not insured banks within the meaning of Section 10 of the Act approved
June 11, 1942, but which are otherwise eligible for designation as depositaries or financial agents
of the United States, may be specifically designated by the Secretary of the Treasury under other
applicable statutes governing depositaries outside of the continental United States, to act as depositaries for withheld taxes upon qualification substantially in accordance with the provisions of Section
6 hereof. Applications for such designation should be transmitted to the Federal Reserve Bank of
the district through which clearances and settlements for the account of the Treasurer of the United
States are customarily made.
6. Qualification of Government Depositaries in Connection With Payment of Taxes.

Any designated bank which desires to qualify, under the terms of this circular, for receiving
from employers funds withheld as taxes pursuant to the Current Tax Payment Act of 1943, should
apply for qualification through the Federal Reserve Bank of the district in which the insured bank is
located. Such application shall be made on Application-Agreement, Depositary for Withheld Taxes
(Form No. 411) shown as Exhibit A of this circular. Copies of this form and instructions regarding
the application may be obtained from the Federal Reserve Bank. No designated bank which has
made application for qualification shall act as a Government depositary and financial agent under the
terms of this circular until it receives from the Federal Reserve Bank notice of approval of the application. Upon receipt of such notice each designated bank is hereby authorized to receive funds withheld as taxes pursuant to Section 1622 of the Internal Revenue Code, as added by the Current Tax
Payment Act of 1943. Depositaries and financial agents qualified pursuant to the terms of this circular will be known as "Depositaries for Withheld Taxes" and will hereinafter be referred to as
depositaries.
7. Accounts, Forms, and Procedure of Depositaries for Withheld Taxes.

Each depositary shall open and maintain on its books a special account entitled "Withheld Taxes"
in the name of the Federal Reserve Bank of the district in which the depositary is located, as fiscal
agent of the United States. Such Federal Reserve Bank will hereinafter be referred to as the Federal Reserve Bank. To this special account on the books of the depositary shall be credited all withheld taxes received by the depositary from employers.
Deposits in the special account will be permitted to accumulate until a balance of $5,000 is
reached, at which time the depositary must remit, not later than the following business day, the
entire balance to the Federal Reserve Bank for credit to the account of the Treasurer of the United
States. Remittances to the Federal Reserve Bank, however, are not required to be made more frequently than once each day. The entire balance in the special account on the last business day in each
month, regardless of the size of the balance, must be remitted to the Federal Reserve Bank not later
than the following business day. Each remittance to the Federal Reserve Bank must be accompanied
by the first carbon copies of the depositary receipts for withheld taxes, issued by the depositary as
hereinafter provided, with regard to the funds constituting the remittance. % When a remittance to
the Federal Reserve Bank is made, it is essential that the accompanying depositary receipts be in the
exact aggregate amount of such remittance and that they relate exclusively to the withheld taxes
thus remitted. All remittances must be made in funds immediately available at the Federal Reserve
Bank point.
The depositaries will receive through the Federal Reserve Banks more detailed information regarding the procedure to be followed in connection with the remittance of, and accounting for, withheld taxes received by the depositaries under the provisions of this circular.
The depositary shall issue to each employer for each payment of withheld taxes received by the
depositary from such employer a Depositary Receipt for Withheld Taxes (Form No. 410), hereinafter referred to as the depositary receipt. The prescribed form of depositary receipt is shown as




16— 35704-1

3
Exhibit B of this circular. All depositary receipts issued must be in this form and no other. Each
depositary receipt will be executed by the depositary in triplicate and disposition of the original and
copies shall be made by the depositary as follows:
Original.—Delivered to the employer to evidence the payment of withheld taxes to the
depositary;
First copy.—Forwarded to the Federal Reserve Bank at the time the funds represented by the
receipt are remitted to the Federal Reserve Bank;
Second copy.—Retained by the depositary, as its record of the payment of the withheld taxes by
the employer to the depositary.
Supplies of the printed form of depositary receipt will be furnished to, or procured by, each depositary, and will be controlled, under instructions issued through the Federal Reserve Bank.
The depositary will not be required to accept from employers, as payment of withheld taxes,
funds which are not immediately available to the depositary at the time of such payment. TreasuryNotes, Tax Series, or other public debt securities of the United States, will not be accepted by depositaries from employers as payment of withheld taxes under this circular. Each depositary receipt
will be dated as of the day the funds are credited in the special account "Withheld Taxes" in the
name of the Federal Reserve Bank as fiscal agent o f the United States.
The original and Federal Reserve Bank copy of each depositary receipt must be signed by a duly
authorized officer or employee acting on behalf of the depositary. This signature may be in any one
of the following forms: (1) a manual signature of a duly authorized officer or employee followed by
the title of such officer or employee; (2) a rubber stamp impression containing the name of the depositary supported by the manual initial of the receipting officer or employee and followed by his
title; (3) a facsimile or rubber stamp impression signature of a duly authorized officer over his official
title, supported by the manual initial of such officer or the employee receiving the deposit; or (4) a
facsimile or rubber stamp impression signature of a duly authorized employee over his official title,
supported by the manual initial of such employee. All initials or manual signatures should be in ink.
In the event the original of a depositary receipt is lost, stolen, or destroyed before it is forwarded to a collector of internal revenue, the employer concerned will be issued a duplicate receipt
upon proper application and the submission of required evidence to the Federal Reserve Bank of the
district in which the depositary which issued the original receipt is located. Such issuance of duplicate receipts will be governed by requirements and procedure to be prescribed by the Secretary of
the Treasury.
8. Provision for Offsetting Costs of Depositaries for Withheld Taxes.

For the purpose of offsetting additional costs incurred by depositaries in receiving from employers payments of withheld taxes and remitting the funds thus collected to Federal Reserve Banks as
required herein, two alternative methods are provided by which a depositary may purchase 2 percent depositary bonds issued pursuant to Department Circular No. 660, First Supplement.
Under one method, the depositary will be permitted to purchase 2 percent depositary bonds with
its own funds. Such bonds will be issued in the name of the Federal Reserve Bank as fiscal agent of
the United States in trust for the depositary, and will be required to be held by such Federal Reserve
Bank in safekeeping while the depositary is qualified for receiving payments of withheld taxes.
Under the other method, the Treasury will agree to place with the depositary a balance to the
credit of the Treasurer of the United States, provided that such balance will be used by the depositary for the purchase of an equal amount of 2 percent depositary bonds. Such bonds will be issued
in the name of the Federal Reserve Bank as fiscal agent of the United States, in trust for the
depositary, and will be held as collateral security for such deposit balance.
The amount of 2 percent depositary bonds which the depositary will be permitted to purchase
under either of the alternative methods will be in proportion to the business transacted under this
circular, as set forth in the attached schedule of 2 percent depositary bond allotments and Treasury
balances (Exhibit C).
In case an insured bank qualifies as a depositary for withheld taxes on or before July 31, 1943,
its initial 2 percent depositary bond allotment or Treasury balance under the method elected by the
depositary will be calculated on the basis of the business transacted under this circular by the depositary during the month of August 1943. The same general rule will be applied in the case of insured
banks qualifying during each month after July 1943. For example, in the case of an insured bank
qualifying as a depositary during the month of August 1943, the initial 2 percent depositary bond
allotment or Treasury balance will be based upon the business such depositary transacts under this
circular during the month of September 1943.
i6~.357r.4-1




4
Appropriate adjustments in 2 percent depositary bond allotments or Treasury balances will be
considered periodically on the basis of fluctuations in the business transacted after the initial allotments or Treasury balances are established. The first of such adjustments will be made at the close
of the 3-month period of operations of a depositary after its initial allotment or Treasury balance is
established. Thereafter, appropriate adjustments will be made at the close of each 6-month period
ending on June 30 and December 31. The adjustments will be considered on the basis of the average
business transacted monthly during the period under review, in relation to the schedule of 2 percent
depositary bond allotments and Treasury balances then in effect. A depositary will be permitted to
change from one alternative method to the other on the adjustment dates of June 30 and December 31.
Matters concerning the allotment of 2 percent depositary bonds under the terms of this circular
will be handled by the Treasury Department through the Federal Reserve Banks.
9. Termination of the Qualification of a Depositary for Withheld Taxes.

The Secretary of the Treasury, upon notification through the Federal Reserve Banks, may terminate at any time the qualification of any depositary for withheld taxes. Likewise, any depositary
for withheld taxes may terminate its qualification upon 30 days' notice to the Secretary of the Treasury, through the Federal Reserve Bank. Upon termination of the qualification of a depositary the
amount of 2 percent depositary bonds purchased by it pursuant to these regulations will be redeemed
on not less than 30 days' or more than 60 days' notice by the Secretary of the Treasury.
10. Treatment by Collectors of Internal Revenue of Withheld Taxes Received by Depositaries.

The receipt of withheld taxes by depositaries shall be treated as payment of such taxes to collectors of internal revenue upon the filing of the return for the withheld taxes and the presentation
therewith to such collectors of properly executed depositary receipts. Collectors of internal revenue
will promptly deposit all such depositary receipts as internal revenue collections with the Federal
Reserve Bank of the district in which the collector's head office is located. Each such deposit shall
be accompanied by an appropriate certificate of deposit which shall not include any other class of
remittances.
In any case in which a depositary receipt is received by a Federal Reserve Bank and it is determined that the employer failed to pay to the depositary the amount stated therein, the Federal Reserve Banks may return such item to the collector of internal revenue, under procedure prescribed
by the Secretary of the Treasury.
11. Functions of Federal Reserve Banks Regarding Withheld Taxes.

In accordance with instructions from the Secretary of the Treasury, the Federal Reserve Banks,
as fiscal agents of the United States, will perform the following functions:
The Federal. Reserve Banks will receive from depositaries remittances of withheld taxes and
from collectors of internal revenue depositary receipts for appropriate credit and clearance in the
account of the Treasurer of the United States.
The Federal Reserve Banks will maintain such records and perform such other functions as
may be necessary for the purpose o f : (a) determining that the required copies of depositary receipts are received from the depositaries in support of all remittances by such depositaries of withheld taxes; and (b) properly balancing or matching the depositary receipts deposited by the collectors of internal revenue with the corresponding copies of the depositary receipts received from the
depositaries, in order to prove or reconcile credits allowed employers by the collectors of internal
revenue with the depositaries' remittances of withheld taxes.
The Federal Reserve Banks will perform such additional functions relating to withheld taxes,
including the rendition of reports, as may be required by the Secretary of the Treasury.
The Federal Reserve Banks are authorized to utilize the facilities of their branches in performing the functions required under this circular.
12. Amendment of Regulations.

The Secretary of the Treasury may withdraw or amend at any time or from time to time any or
all provisions of this circular.




H E N R Y M O R G E N T H A U , Jr.,

Secretary of the Treasury.

U. S . GOVERNMENT PRINTING OFFICE

10—357G4-1

5

F o r m No. i l l
TREASURY DEPARTMENT
FISCAL

EXHIBIT
Pa<lC,

SERVICE

Bureau of Accounts

J

A
1

APPLICATION-AGREEMENT DEPOSITARY FOR WITHHELD TAXES*
The undersigned, a Designated Depositary and Financial Agent of the Government for receiving from employers
payments of funds withheld as taxes, hereby makes application to qualify pursuant to the provisions of section 6 of
United States Treasury Department Circular No. 714, dated June 25,1943, for the receipt of such payments and agrees
as follows:
1. The undersigned in the performance of its duties as a "Depositary for Withheld Taxes," as that term is defined
in section 6 of United States Treasury Department Circular No. 714, dated June 25, 1943, will comply with all the
requirements of that circular and any amendments or supplements thereof and instructions issued pursuant thereto,
and will hold all funds received by it in its capacity as such Depositary in trust for the United States.
2. Any 2 percent depositary bonds purchased by the undersigned with any depositary balance placed by the Treasury with it to the credit of the Treasurer of the United States pursuant to the provisions of section 8 of United States
Treasury Department Circular No. 714, dated June 25, 1943, will be held as collateral security for such deposit balance
and, in the event of the failure of the undersigned to pay, when due, the whole or any part of the funds deposited with
the undersigned pursuant to the provisions of that section, or in the event of the insolvency of the undersigned, or in
the event the undersigned shall be closed for business by law or by proper corporate action, or in the event that a
receiver, or conservator, or liquidator, or any other officer shall be appointed for the purpose of terminating the
business of the undersigned, the Secretary of the Treasury, without prior notice or demand, may forthwith require
such 2 percent depositary bonds to be presented for redemption and apply the proceeds of such redemption, after deducting all necessary expenses thereof, to the payment of the funds deposited with the undersigned pursuant to the
provisions of section 8 of United States Treasury Department Circular No. 714, dated June 25, 1943, any surplus
remaining from the proceeds of the redemption of such bonds, after payment in full has been made, to be paid to the
undersigned.
3. The provisions of this agreement may be supplemented, amended or modified at any time subsequent hereto by
agreement in writing between the undersigned and the Secretary of the Treasury, as provided in the attached resolution of its board of directors.
I N WITNESS WHEREOF, the undersigned has caused the signature of its officer below-named and its corporate seal
duly attested to be affixed hereto this
day of
, 19
, intending to be legally bound hereby.
(Name of bank)

By
[SEAL]

Attest:

(Signature and title of officer executing agreement)
(Signature and title)

•The execution of this Application-Agreement must be authorized by resolution of the Board of Directors of the designated Depositary, a certified copy of which on Form 411-A must accompany this Application-Agreement.
F o r m No. 411-A
TREASURY DEPARTMENT
FISCAI,

EXHIBIT A

SEHVICE

Pnrie
1

Bureau of Accounts

9

*

RESOLUTION AUTHORIZING EXECUTION OF APPLICATION-AGREEMENT, DEPOSITARY FOR
WITHHELD TAXES
T H I S IS TO CERTIFY, That at a meeting of the Board of Directors of
held on
—
19
, the following resolution was duly adopted:
1. "RESOLVED, That the president, or any vice president, or cashier, or any assistant cashier, or treasurer, or any
assistant treasurer of this bank is hereby authorized to execute on behalf of this bank the 'Application-Agreement,
Depositary for Withheld Taxes,' Treasury Department Form No. 411, such execution to be under seal and with the
attestation of an officer of this bank, other than an officer executing the Agreement.
2. "RESOLVED FURTHER, That any of such officers of this bank is authorized to execute in similar form on behalf
of this bank such agreements to supplement, amend, or modify the terms of such 'Application-Agreement, Depositary
for Withheld Taxes,' as may from time to time be requested or approved by the Secretary of the Treasury.
3. "RESOLVED FURTHER, That any of such officers of this bank is hereby authorized to take any action on behalf
of this bank which may be required in connection with the performance of its duties as a 'Depositary for Withheld
Taxes' as that term is defined in section 6 of United States Treasury Department Circular No. 714, dated June 25,1943.
4 . "RESOLVED FURTHER, That with respect to any 2 percent Depositary Bonds the purchase of which is permitted
pursuant to the provisions of section 8 of United States Treasury Department Circular No. 714, dated June 25, 1943,
any of such officers of this bank is hereby authorized to subscribe for such bonds, or request redemption thereof, for
account of this bank, pursuant to the provisions of United States Treasury Department Circular No. 660, First Supplement, or any amendment thereof.
5. "RESOLVED FURTHER, That the Federal Reserve Bank of
,
as fiscal agent of the United States, as trustee, be and is hereby authorized to assign and transfer such 2 percent
Depositaiy Bonds to the Secretary of the Treasury for redemption for account of this bank upon demand of either this
bank or the Secretary of the Treasury."
[SEAL]
•The officer certifying this resolution nhall have such authority.




(Name and title of certifying officer*)
10—35764-1

TREASURTD*PARTMENT

DEPOSITARY RECEIPT FOR W I T H H E L D

FISCAL SERVICE
Bureau of Accounts

To:

Sec. 1631, Internal Revenue Code as Added
the Current Tax Payment Act of 1943

TAXES

SERIAL

by

COLLECTOR OF INTERNAL REVENUE:

B

"

A

'

No.

FR1 -123456 A

(INSERT")""

N O

T H I S IS TO CERTIFY that the employer named b e l o w has made payment to this authorized depositary for account of the Federal Reserve
Bank of
as fiscal agent of the United States, in special account "Withheld Taxes," pursuant to the provisions of Treasury Department
Circular N o . 714 as f o l l o w s :

Dollars

too

Form

I

TREASURY I

COLLE
THIS I
Bank of
Circular N o .

By
(Signature of authorized employee of depositary)
Important
notice to employer.—This
reccipt m u s t not be altered in any respect and m u s t a c c o m p a n y your Return of I n c o m e Tax Withheld on Wages (Form
W - l ) to the Collector of Internal Revenue. It will be accepted by the Collector for appropriate credit against the a m o u n t due as s h o w n on such tax return.
T h e employer should request the depositary to m a k e o u t all receipts in the s a m e n a m e that the employer will use in filing his return ( F o r m W - l ) . A record
of the c o m p l e t e serial n u m b e r shown in the upper r i g h t - h a n d corner of this reccipt should be kept by the employer. T h i s Serial n u m b e r m u s t be q u o t e d in
a n y correspondence which m i g h t be necessary concerning this p a y m e n t .
&
opo
ig—35089-1

( N a m e and address of employer)

Form 1
TREASURY I

( D a t e of p a y m e n t )

FISCAI.
Bureau o:

( N a m e and location of depositary)

BY

COLLE

T H I S I<
Bank of
Circular N o .

( D a t e of p a y m e n t )

( N a m e and location of depositary)

To:

To:

(Signature of authorized employee of depositary)
IMPORTANT
NOTICE
TO DEPOSITARY.—
This firsf copy must be forwarded to the Federal Reserve Bank of
at the time remittance covering this
deposit of withheld taxes is made to the Federal reserve bank from the account "Withheld T a x e s . " This copy of depositary receipt will not be accepted
by Collector of Internal Revenue.
&
OPO
16-35089-1

100

. UULIUM

( D a t e of payment)

( N a m e and address of employer)

^mr
IMPORTANT

DOLLARS

( N a m e and address of employer)

FISCAL
Bureau o

NOTICE

withheld taxes.

TO

DEPOSITARY.—This

( N a m e and location of depositary)

By

(Signature of authorized employee of depositary)

second copy must be retained by the depositary as its permanent record of this payment by the employer of

This copy of depositary receipt will not be accepted by Collector of Internal Revenue.




Cents

(Actual Size 3 Via" x 8")

-ft

aPO

ia—3««8»-l

3
M
S
O
cn

H
>
W

EXHIBIT C

Page 1

E I.
The following table indicates the amount of 2 Percent Depositary Bonds
which a Depositary for Withheld Taxes will be permitted to purchase with its own
funds under the provisions of the second paragraph of section 8 of Treasury Department Circular No. 714, based upon two factors in combination; viz.: the total

amount of remittances to the Federal Reserve banks in relation to the total
number of depositary receipts representing such remittances. Both the amount
of remittances and number of depositary receipts should be averaged monthly for
the period under review.

T O T A L N U M B E R OF D E P O S I T A R Y R E C E I P T S (Monthly Average)
TOTAL REMITTANCES
( M o n t h l y Average)

76

to

100

101
to
150

151
to
200

201

to

250

251
to
300

301
to
400

401
to
500

501
to
750

751
to
1,000

2 PERCENT DEPOSITARY BONDS TO BE PURCHASED WITH DEPOSITARY'S OWN FUNDS
$1 to $5,000
$5,001 to $10,000
$10,001 to $25,000
$25,001 to $50,000
$50,001 to $100,000
$100,001 to $200,000
$200,001 to $300,000
$300,001 to $500,000
$500,001 to $750,000
$750,001 to $1,000,000 _
$1,000,001 to $1,250,000
$1,250,001 to $1,500,000
$1,500,001 to $2,000,000
$2,000,001 to $2,500,000
$2,500,001 to $3,000,000
$3,000,001 to $3,500,000
$3,500,001 to $4,000,000
$4,000,001 to $5,000,000.
NOTE:

$4 , 000 $4, 000
6, 000
6 , 000
8, 000
8 000
12, 000
11 000
22, 000
21 000
32, 000
31 000
42, 000
41 000
52, 000
51 000
62, 000
61 000
72, 000
71 000
82, 000
81 000
92, 000
91 000
101 000 102, 000
111 000 112, 000
121 000 ] 22, 000
131 000 132, 000
141 000 142, 000
161 000 162, 000

$4, 000
$7, 000
6, 000
9, 000
8, 000
11, 000
13, 000
16, 000
23, 000
26, 000
33, 000
36, 000
43, 000
46, 000
53, 000
56, 000
63, 000
66, 000
73, 000
76, 000
83, 000
86, 000
93, 000
96, 000
103, 000 106, 000
113, 000 116, 000
123, 000 126, 000
133, 000 136, 000
143, 000 146, 000
163, 000 166, 000

$11, 000 $13, 000
13, 000
15, 000
15. 000
17, 000
20, 000
22, 000
30, 000
32, 000
40, 000
42, 000
50, 000
52, 000
60, 000
62, 000
70, 000
72, 000
80, 000
82/000
90, 000
92, 000
100, 000 102, 000
110, 000 112, 000
120, 000 122, 000
130, 000 132, 000
140, 000 142, 000
150, 000 152, 000
170, 000 172, 000

1. For monthly remittances in excess of $5,000,000 per month, allotments of
2 Percent Depositary Bonds will be made at the rate of $10,000 for each $500,000
of remittances or fraction thereof.




$19, 000
21. 000
23, 000
28, 000
38, 000
48, 000
58, 000
68, 000
78, 000
8S, 000
98, 000
108, 000
118, 000
128, 000
138, 000
148, 000
158, 000
178, 000

$27, 000
29, 000
31, 000
36, 000
46, 000
56, 000
66, 000
76, 000
86, 000
96, 000
106, 000
116, 000
126, 000
136, 000
146, 000
156, 000
166, 000
186, 000

$35, 000
37, 000
39, 000
44, 000
54, 000
64, 000
74, 000
84, 000
94, 000
104, 000
114, 000
124, 000
134, 000
144, 000
154, 000
164, 000
174, 000
194, 000

$43, 000
45, 000
47, 000
52, 000
62, 000
72, 000
82, 000
92, 000
102, 000
112, 000
122, 000
132, 000
142, 000
152, 000
162, 000
172, 000
182, 000
202, 000

$ 51, 000
53, 000
55. 000
60, 000
70, 000
80, 000
90, 000
100, 000
110, 000
120, 000
130. 000
140, 000
150, 000
160, 000
170, 000
180, 000
190. 000
210, 000

$65, 000
67, 000
69, 000
74, 000
84, 000
94, 000
104, 000
114, 000
124, 000
134, 000
144, 000
154, 000
164, 000
174, 000
184, 000
194, 000
204, 000
224, 000

$91, 000 $127, 000
129, 000
93, 000
131, 000
95, 000
136, 000
100. 000
146, 000
110, 000
156, 000
120, 000
166, 000
130. 000
110, 000 176, 000
186. G O
O
150, 000
196, 000
160, 000
206, 000
170, 000
216, 000
180, 000
226, 000
190, 000
236, 000
200, 000
246, 000
210, 000
256. 000
220, 000
266, 000
230, 000
286, 000
250, 000

2. For depositary receipts issued in excess of 1,000 per month, allotments of
2 Percent Depositary Bonds will be made at the rate of $2,000 for eacli 15 receipts
or fraction thereof.
•
10—35704-1

EXHIBIT C

Page 2

TABLE

The following table Indicates the amount of the balance which the Treasury
will place with a Depositary for Withheld Taxes, to be invested in 2 percent
Depositary Bonds, under the provisions of the third paragraph of section 8 of
Treasury Department Circular No. 714, based upon two factors in combination;

II.

viz.: the total amount of remittances to the Federal Reserve Banks in relation to
the total number of depositary receipts representing such remittances. Both the
amount of remittances and number of depositary receipts should be averaged
monthly for the period under review.

T O T A L N U M B E R OF D E P O S I T A R Y R E C E I P T S (Monthly Average)
76
to
100

TOTAL REMITTANCES
(Monthly Average)

101
to
150

151
to
200

201
to
250

251
to
300

301
to
400

401
to
500

501
to
750

751
to
1,000

TREASURY BALANCES (To be invested in 2 Percent Depositary Bonds)
$1 to $5,000.
$5,001 to $10,000
$10,001 to $25,000
$25,001 to $50,000
$50,001 to $100,000
$100,001 to $200,000
$200,001 to $300,000
$300,001 to $500,000
$500,001 to $750,000
$750,001 to $1,000,000
$1,000,001 to $1,250,000
$1,250,001 to $1,500,000
$1,500,001 to $2,000,000
$2,000,001 to $2,500,000_
$2,500,001 to $3,000,000
$3,000,001 to $3,500,000
$3,500,001 to $4,000,000
$4,000,001 to $5,000,000
NOTE*

$2, 000
3, 000
4, 000
5, 500
10, 500
15, 500
20, 500
25, 500
30, 500
35, 500
40, 500
45, 500
50, 500
55, 500
60, 500
65, 500
70, 500
80, 500

$2, 000
3, 000
4, 000
6, 000
11, 000
16, 000

21, 000
26, 000
31, 000
36, 000
41, 000
46, 000
51, 000
56, 000
61, 000
66, 000
71, 000
81, 000

$2, 000
3, 000
4, 000
6, 500
11, 500
16, 500
21, 500
26,500
31, 500
36, 500
41, 500
46, 500
51, 500
56, 500
61, 500
66, 500
71, 500
81, 500

$3, 500
4, 500
5, 500
8, 000

13, 000
18, 000

23, 000

28, 000

33, 000
38, 000
43, 000
48, 000
53, 000
58, 000
63, 000
68, 000
73, 000
83, 000

$5, 500
6, 500
7, 500
10, 000
15, 000
20, 000
25, 000
30, 000
35, 000
40, 000
45, 000
50, 000
55, 000
60, 000
65, 000
70, 000
75, 000
85, 000

1 For monthlv remittances In exoess of $5,000,000 per month, allotments of
Treasury balances invested in 2 percent Depositary Bonds will be made at the
rate of $5,000 for each $500,000 of remittances or fraction thereof.




$6, 500
7, 500
8, 500
11, 000
16, 000

21, 000
26, 000
31, 000
36. 000
4i; 000
46, 000
51, 000
56, 000
61, 000
66, 000
71, 000
76, 000
86, 000

$9, 500 $13, 500 $17, 500 $21, 500 $25, 500 $32, 500
26, 500 33, 500
22, 500
14, 500
18, 500
10, 500
34, 500
23, 500
27, 500
19, 500
15, 500
11, 500
37, 000
30, 000
26, 000
18, 000
22, 000
14, 000
42, 000
35, 000
19, 000
23, 000
31, 000
27, 000
47, 000
40, 000
24, 000
28, 000
36, 000
32, 000
52, 000
45, 000
29, 000
33, 000
41, 000
37, 000
57, 000
50, 000
34, 000
38, 000
46, 000
42, 000
62, 000
55, 000
39, 000
43, 000
51, 000
47, 000
67, 000
60, 000
44, 000
48, 000
56, 000
52, 000
72, 000
65, 000
49, 000 53, 000
61. 000
57. 000
77, 000
70, 000
54, 000 58, 000
66, 000
62, 000
82, 000
75, 000
59, 000 63, 000
71, 000
67, 000
87, 000
80, 000
68, 000
64, 000
76, 000
72, 000
92, 000
85, 000
73, 000
69, 000
81, 000
77, 000
97, 000
90, 000
78, 000
74, 000
86, 000
82, 000
95, 000 102, 000
79, 000 83, 000
91, 000
87, 000
89, 000
93, 000
97, 000 101, 000 105, 000 112, 000

500
500
500
000
000
000
000
000
000
000
000

$45, 500
46, 500
47, 500
50, 000
55, 000
60, 000
65, 000
70, 000
75, 000
80, 000
85, 000
90, 000
95, 000
100, 000
105, 000

$63,
64,
65,
68,
73,
78,
83,
88,
93,
98,
103,

115, 000
125, 000

133, 000
143, 000

110, 000

108, 000

113, 000
118, 000

123, 000
128, 000

2. For Depositary Receipts issued in excess of 1,000 per month, allotments
of Treasury balances invested in 2 percent Depositary Bonds will be made at the
rate of $1,000 for each 15 receipts or fraction thereof.
10-35074-1

Form No. 411-A.
Treasury Department
Fiscal Service
Bureau of Accounts
RESOLUTION AUTHORIZING EXECUTION OF
APPLICATION - AGREEMENT, DEPOSITARY FOR WITHHELD TAXES

19

THIS IS TO CERTIFY, That at a meeting of the Board of Directors of
held on
, the following resolution was duly adopted:

X . "RESOLVED, That the President, or any Vice President, or Cashier,
or any Assistant Cashier, or Treasurer, or any Assistant Treasurer of this
bank is hereby authorized to execute on behalf of this bank the 'ApplicationAgreement, Depositary for Withheld Taxes', Treasury Department Form No. -411,
such execution to be under seal and with the attestation of an officer of
this bank, other than an officer executing the Agreement.
2. "RESOLVED FURTHER, That any of such officers of this bank is authorized to execute in similar f o m on behalf of this bank such agreements to
supplement, amend, or modify the terms of such Application - Agreement,
Depositary for i'/ithheld Taxes', as may from time to time be requested or
approved by the Secretary of the Treasury.
3. "RESOLVED FURTHER, That any of such officers of this bank is hereby
authorized to take any action on behalf of this bank which may be required
in connection with the performance of its duties as a 'Depositary for Withheld Taxes' as that tern is defined in section 6 of United States Treasury
Department Circular No. 714, dated June 25, 1943*
4. "RESOLVED FURTHER, That with respect to any two percent Depositary
Bonds the purchase of which is pemitted pursuant to the provisions of section 8 of United States Treasury Department Circular No. 714, dated June 25,
1943 any of such officers of this bank is hereby authorized to subscribe
for such bonds, or request redemption thereof, for account of this bank,
pursuant to the provisions of United States Treasury Department Circular
No. 660, First Supplement, or any amendment thereof,
5.

"RESOLVED FURTHER, That the Federal Reserve 3ank of
, as fiscal agent of the United States, as
trustee, be and is hereby authorized to assigi and transfer such two percent
Depositary Bonds to the Secretary of the Treasury for redemption for account
of this bank upon demand of either this bank or the Secretary of the Treasury."

(SEAL)
(•Jdfaae and Title of Certifying Officer)

* The officer certifying this resolution shall have such authority.




Form N o . 411
Treasury Department
Fiscal Service
Bureau of Accounts

APPLICATION - AGREEMENT
DEPOSITARY FOR WITHHELD TAXES *

The undersigned, a Designated Depositary arai Financial Agent of the
Government for receiving from employers payments of funds withheld as taxes,
hereby makes application to qualify pursuant to the provisions of section 6
of United States Treasury Department Circular No. 714, dated June 25, 1943,
for the receipt of such payments and agrees as follows:
1* The undersigned in the performance of its duties as a "Depositary
for Withheld Taxes", as that term is defined in section 6 of United States
Treasury Department Circular No. 714, dated June 25, 1943, will comply with
all the requirements of that Circular and any amendments or supplements
thereof and instructions issued pursuant thereto, and will hold all funds received by it in its capacity as such Depositary in trust for the United States.
2* Any two percent depositary bonds purchased by the undersigned with
any depositary balance placed by the Treasury with it to the credit of the
Treasurer of the United States pursuant to the provisions of section £ of
United States Treasury Department Circular No. 714, dated June 25, 1943, will
be held as collateral security for such deposit balance and, in the event of
the failure of the undersigned to pay, when due, the whole or any part of the
funds deposited with the undersigned pursuant to the provisions of that section, or in the event of the insolvency of the undersigned, or in the event
the undersigned shall be closed for business by law or by proper corporate
action, or in the event that a receiver, or conservator, or liquidator, or
any other officer shall be appointed for the purpose of terminating the business of the undersigned, the Secretary of the Treasury, without prior notice or
demand nay forthwith require such, two percent depositary bonds to be presented
for redemption and apply the proceeds of such redemption, after deducting all
necessary expenses thereof, to the payment of the funds deposited with the
undersigned pursuant to the provisions of section 8 of United States Treasury
Department Circular No. 714, dated June 25, 1943, any surplus remaining from
the proceeds of the redemption of such bonds, after payment in full has been
made, to be paid to the undersigned*
3* The provisions of this agreement may be supplemented, amended or
modified at any time subsequent hereto by agreement in writing between the
undersigned and the Secretary of the Treasury, as provided in the attached
resolution of its Board of Directors.
IN WITNESS WHEREOF, the undersigned has caused the signature of its
officer below-named and its corporate seal duly attested to be affixed hereto
this
day of
, 19 , intending to be legally
bound hereby.

By
(Signature and Title of Officer Executing
Agreement)
Attest:
(Signature and Title)

* The execution of this Application-Agreement must be authorized by resolution of the Board of Directors of the designated Depositary, a certified
copy of which on Form 411-A must accompany this Application-Agreement.




UNITED STATES OF AMERICA
2 PERCENT DEPOSITARY

BONDS

SECOND SERIES

/

1943
Department Circular N o . 660
First Supplement

TREASURY DEPARTMENT,
OFFICE OF THE SECRETARY,

Washington, June 29,1943.

Fiscal Service
Bureau of the Public Debt

I. OFFERING OF BONDS

-

1. The Secretary of the Treasury, pursuant to the authority of the Second Liberty Bond Act,
as amended, gives notice of an additional special issue of bonds of the United States, designated 2
Percent Depositary Bonds, Second Series. These bonds may be subscribed for at par only by depositaries for withheld taxes qualified under Department Circular No. 714, dated June 25, 1943. The
amounts of the allotments and adjustments thereof will be made on the bases specified in that circular. Two Percent Depositary Bonds, Second Series, will be issued and redeemed, and interest thereon,
when due, will be paid by Federal Reserve Banks, as fiscal agents of the United States acting for the
Secretary of the Treasury.
II. DESCRIPTION OF BONDS

1. The bonds of this issue will be dated July 1, 1943. They will bear interest at the rate of 2
percent per annum, payable on a semiannual basis on January 1 and July 1 in each year until the
principal amount becomes payable. Each bond will be issued as of, and will bear interest from, the
date payment therefor is received, and will mature twelve years from such date, but may be redeemed at the option of the United States or the depositary for withheld taxes, in whole or in part,
at par and accrued interest at any time, upon not less than 30 nor more than 60 days' notice in writing given by either party to the other. From the date of redemption designated in any such notice,
interest on the bond or bonds or any part thereof to be redeemed shall cease, and the unredeemed
portion, if any, shall be reissued bearing the same issue date as the bond surrendered. Any such
notice of redemption given by a depositary for withheld taxes shall be addressed to the Federal
Reserve Bank of the district.
2. The income derived from the bonds shall be subject to all Federal taxes now or hereafter
imposed. The bonds shall be subject to estate, inheritance, gift or other excise taxes, whether
Federal or State, but shall be exempt from all taxation 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.
3. The bonds will not be acceptable for any purposes except those provided for in Department
Circular No. 714. They will be issued only in the name of the Federal Reserve Bank of the district
in which the depositary for withheld taxes is located as fiscal agent of the United States in trust for
such depositary and will not be transferable. They will be subject to the general regulations of the
Treasury Department with respect to United States bonds, so far as applicable.
III. GENERAL PROVISIONS

1. The Secretary of the Treasury may, at any time, or from time to time, prescribe supplemental
or amendatory rules and regulations with respect to this issue of bonds, and he may terminate the
issue at any time without notice.
2. Federal Reserve Banks, as fiscal agents of the United States, are authorized to perform all
necessary acts herein, in accordance with such instructions as from time to time may be given by
the Secretary of the Treasury, or by his direction.
D. W . BELL,

Acting Secretary of the Treasury.
(Filed with the Division of the Federal Register, July 1,1943)
O. S. GOVERNMENT PRINTING OFFICE




10—85751-1

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