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FEDERAL RESERVE BANK
O F N E W YORK
Fiscal A g e n t of the United States
rCircular No. 2 7 3 6
L December 15, 1943 J

R E G U L A T I O N S G O V E R N I N G T H E P A Y M E N T T H R O U G H D E P O S I T A R Y B A N K S OF
FUNDS W I T H H E L D AS T A X E S IN A C C O R D A N C E W I T H T H E PROVISIONS
OF T H E C U R R E N T T A X P A Y M E N T A C T OF 1943

Second Amendment to Treasury Department Circular No. 714
To all Banking Institutions in the Second Federal Reserve
Qualified to Act as Depositaries for Withheld
Taxes:

District

There is enclosed herewith the Second Amendment to Treasury Department Circular
No. 714, "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".
The amendment affects the seventh paragraph of Section^ and the fifth and sixth paragraphs
of Section 8 of the Circular.
The seventh paragraph of Section
as amended, has the effect of authorizing the
signing or initialing of depositary receipts in pencil; however, signatures or initials in ink are
preferable.
The fifth paragraph of Section 8, as amended, modifies the basis upon which initial
allotments of 2 Percent Depositary bonds will be made.
The sixth paragraph of Section 8, as amended, modifies the provisions concerning
the periodical adjustment of allotments of 2 Percent Depositary bonds. The first such
adjustment will be made as of January 1, 1944, on the basis of the average monthly business
transacted during the calendar months from the close of the period used for the establishment
of the initial allotment to November 30, 1943. Thereafter, appropriate adjustments will be
made as of July 1 and January 1 on the basis of the average monthly business transacted
during the periods from December 1 to May 31, and from June 1 to November 30, respectively.
A basis is also provided for the adjustment of the allotment of any depositary receiving its
initial allotment during such a six-month period.
The text of the amendment should be consulted in any case involving its application.
In accordance with instructions received from the Treasury Department, each Depositary
in the Second Federal Reserve District which has previously filed a subscription on Treasury
Form No. 418 for 2 Percent Depositary Bonds, Second Series, is hereby requested to submit an
amended subscription on Form No. 418 (Revised), 2 copies of which are herewith enclosed.
Each Depositary should indicate on the Form the method by which it elects to make payment
for such Bonds; and may elect to make payment by any of the alternative methods therein
described, irrespective of the method by which it has heretofore elected to make payment.
In order to make possible adjustments of allotments as of January 1,1944, it is requested
that one copy of Form 418 (Revised) be submitted promptly by each Depositary to the head office
of the Federal Reserve Bank of New York, Federal Reserve P. 0 . Station, New York 7, N. Y.




ALLAN

SPEOUL,

President.

REGULATIONS GOVERNING THE PAYMENT THROUGH DEPOSITARY
BANKS OF FUNDS WIT3IHELD AS TAXES IN ACCORDANCE WITH
THE PROVISIONS OF THE CURRENT TAX PAYMENT ACT OF 19*4-3
1943

Dep».rtment Circular No. 714
Second Amendment
Fiscal Service
Bureau of Accounts
Division of Deposits

TREASURY DEPARTMENT
OFFICE OF THE SECRETARY
W a s h i n g t o n , D. C .
N o v e m b e r 3 0 , I9I+3

Treasury Department Circular No. 714 dated June 25, 19u3»
hereby further amended as follows

as

amended, is

Delete the sixth paragraph of Section 7 and insert in lieu thereof the
following paragraph:
"Hie original and Federal Reserve Bank copy of each depositary
receipt must be signed by an officer or employee duly authorized by
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 official title; ( 3 ) & 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
I.
signature of a duly authorized employee over his official title, supported by the manual initial of such employee. It is preferable that
initials or manual signatures be in ink; however, if made by pencil
they will be acceptable.n
Delete the fifth paragraph of Section 8 and insert in lieu thereof the
following paragraph:
"The initial allotment to a depositary for withheld taxes under
either of the two alternative methods will be calculated on the basis
of the business transacted under this circular by the depositary during the calendar month immediately succeeding that in which the
depositary was qualified. However, if specifically requested by a
depositary, the initial allotment may be made on the basis of the
business transacted during the calendar month in which the depositary
was qualified. If more than one full calendar month elapses after a
bank qualifies as a depositary for withheld taxes before it enters a
subscription for the initial allotment, such initial allotment should
be calculated on the basis of the average business transacted monthly
by the depositary during the preceding full calendar months; however,
if the elapsed period is more than six months, the initial allotment
will be calculated on the basis of the average business transacted




-

2

-

monthly during the six full calendar months preceding the request
for the initial allotment. The initial allotment will " e made as
b
of the first day of the second calendar month following the close
of the period which is used as a basis for determining the amount
of such initial allotment. For example, if the business transacted
during the period ending November JO, 1943» is to be used as a
basis for calculating the initial allotment, such initial allotment
will be made as of January 1,
Delete the sixth paragraph of Section 8 and insert in lieu thereof the
following paragraph:
"Appropriate adjustments in allotments will be considered
periodically on the basis of fluctuations in the business transacted after the initial allotments are established. The first of
such adjustments will be made as of January 1, 19UU, on the basis
of the average monthly business transacted during the calendar months
from the close of the period used for the establishment of the
initial allotment to November JO, 1%-J* Thereafter, appropriate
adjustments will be made as of July 1 and January 1 on the basis of
the average monthly business transacted during the periods from
December 1 to May J1 and June 1 to November JO, respectively; provided, however, that in the case of a depositary which received its
initial allotment during such preceding six-month period, the
adjustment will be based on the business transacted from the close
of the period used in establishing the initial allotment to May 31
or November JO, as the case may be."




(Signed) D. W. BELL

Acting Secretary of the Treasury

Form No. 418 (Revised)
T R E A S U R Y

D E P A R T M E N T

FISCAL SERVICE
B U R E A U OF A C C O U N T S

SUBSCRIPTION

FOR 2 PERCENT D E P O S I T A R Y

BONDS, S E C O N D

SERIES

(Date)
T o

FEDERAL

RESERVE

BANK

OF N E W

YORK,

Fiscal Agent of the United States,
Withheld Taxes Division,
Federal Reserve P. O. Station,
N e w Y o r k 7, N. Y.
Pursuant to the provisions of Resolution Authorizing Execution of Application-Agreement, Depositary for
Withheld Taxes (Treasury Form 4 1 1 - A ) , the undersigned depositary subscribes and agrees to make payment for
2 Percent Depositary Bonds, Second Series, which may be allotted from time to time for purchase by the depositary
under the provisions of Section 8 of Treasury Department Circular No. 714, as amended. For determining the
amount of such bonds which the undersigned depositary may be initially or periodically entitled to purchase, and
for effecting payment for the bonds allotted for purchase, the method indicated below 3 is selected:
2 PERCENT DEPOSITARY BONDS, SECOND SERIES,
TO BE PURCHASED WITH THE DEPOSITARY'S OWN FUNDS

The Federal Reserve Bank as fiscal agent of the United States shall compute the allotment of 2 Percent
Depositary Bonds, Second Series, on the basis of Table I attached as exhibit Cb to Treasury Department
Circular No. 714, as amended, and the Federal Reserve Bank is authorized to effect payment for the bonds
thus allotted by charging the reserve or clearing account of this depositary.
The Federal Reserve Bank as fiscal agent of the United States shall compute the allotment of 2 Percent
Depositary Bonds, Second Series, on the basis of Table I attached as Exhibit Cb to Treasury DepartmentCircular No. 714, as amended, and this depositary will make payment for the bonds thus allotted by remittance of the purchase price upon advice from the Federal Reserve Bank as to the amount o f the approved
allotment.
BALANCE TO THE CREDIT OF THE TREASURER OF THE UNITED STATES TO BE
PLACED WITH THE DEPOSITARY TO BE USED FOR THE PURCHASE OF AN EQUAL
AMOUNT OF 2 PERCENT DEPOSITARY BONDS, SECOND SERIES

A balance to the credit of the "Federal Reserve Bank of New York. Fiscal Agent of the United States,
for Account of the Treasurer of the United States — Time Deposit" shall be deposited with this depositary.
The amount of such balance will be computed by the Federal Reserve Bank as Fiscal Agent of the United
States on the basis of Table II attached as Exhibit Cb to Treasury Department Circular No. 714, as amended.
T h e Federal Reserve Bank is authorized, in lieu of remitting the amount of such authorized balance to this
depositary or crediting the account of this depositary for the amount thereof, to apply such amount to the
purchase o f an equal amount of 2 Percent Depositary Bonds, Second Series, for account of this depositary.
The initial allotment of 2 Percent Depositary Bonds, Second Series, is to be computed by the Federal Reserve Bank, as fiscal agent o f the United States, on the basis of the transactions of this depositary through the
month o f
It is agreed that payment f o r all 2 Percent Depositary Bonds, Second Series,
purchased by the undersigned depositary shall be made on the first day of the second month following the end
of the month referred to above, and that such bonds shall be issued as of such date, or as of such later date as
payment for the Bonds is received by the Federal Reserve Bank for credit in the General Account of the Treasurer o f the United States. All 2 Percent Depositary Bonds purchased on subsequent adjustment dates as provided in Treasury Circular No. 714, as amended, shall be handled in like manner.
This subscription f o r 2 Percent Depositary Bonds, Second Series, and selected method of allotment and
payment thereof shall remain in effect as long as the undersigned depositary is qualified as a depositary f o r withheld taxes unless new f o r m of subscription in substitution thereof is submitted to the Federal Reserve Bank in
time to be effective on the regular adjustment dates of January 1 and July 1 prescribed by Treasury Department
Circular No. 714, as amended.
A.B.A. No
(Name and Location of Depositary)

By:

(Name and Title)c

a One of the three alternative methods shown should be selected by placing a check in the appropriate square.
b Allotments of depositary bonds will be computed by the Federal Reserve Bank on the basis of the amount of remittances
received by the Federal Reserve Bank and number of items- related to such remittances.
c T h e officer subscribing on behalf of the depositary shall be one designated in the Resolution ( F o r m 411-A) mentioned above.




Form No. 418 (Revised)
TREASURY DEPARTMENT
FISCAL SERVICE
B U R E A U OF A C C O U N T S

SUBSCRIPTION

FOR 2 PERCENT

DEPOSITARY

BONDS, S E C O N D

SERIES

(Date)
T o

FEDERAL

RESERVE

BANK

OF

NEW

YORK,

Fiscal Agent of the United States,
Withheld Taxes Division,
Federal Reserve P. O. Station,
New York 7, N. Y.
Pursuant to the provisions of Resolution Authorizing Execution of Application-Agreement, Depositary for
Withheld Taxes (Treasury Form 4 1 1 - A ) , the undersigned depositary subscribes and agrees to make payment f o r
2 Percent Depositary Bonds, Second Series, which may be allotted from time to time for purchase by the depositary
under the provisions of Section 8 of Treasury Department Circular No. 714, as amended. For determining the
amount of such bonds which the undersigned depositary may be initially or periodically entitled to purchase, and
for effecting payment for the bonds allotted for purchase, the method indicated below a is selected:
2 PERCENT DEPOSITARY BONDS, SECOND SERIES.
TO BE PURCHASED WITH THE DEPOSITARY'S OWN FUNDS

The Federal Reserve Bank as fiscal agent of the United States shall compute the allotment of 2 Percent
Depositary Bonds, Second Series, on the basis of Table I attached as exhibit C b to Treasury Department
Circular No. 714, as amended, and the Federal Reserve Bank is authorized to effect payment for the bonds
thus allotted by charging the reserve or clearing account of this depositary.
The Federal Reserve Bank as fiscal agent of the United States shall compute the allotment of 2 Percent
Depositary Bonds, Second Series, on the basis of Table I attached as Exhibit Cb to Treasury Department
Circular No. 714, as amended, and this depositary will make payment for the bonds thus allotted by remittance of the purchase price upon advice f r o m the Federal Reserve Bank as to the amount of the approved
allotment.
BALANCE TO THE CREDIT OF THE TREASURER OF THE UNITED STATES TO BE
PLACED WITH THE DEPOSITARY TO BE USED FOR THE PURCHASE OF AN EQUAL
AMOUNT OF 2 PERCENT DEPOSITARY BONDS. SECOND SERIES

A balance to the credit of the "Federal Reserve Bank of New York. Fiscal Agent of the United States,
f o r Account of the Treasurer of the United States — Time Deposit" shall be deposited with this depositary.
The amount of such balance will be computed by the Federal Reserve Bank as Fiscal Agent of the United
States on the basis of Table II attached as Exhibit Cb to Treasury Department Circular No. 714, as amended.
T h e Federal Reserve Bank is authorized, in lieu of remitting the amount of such authorized balance to this
depositary or crediting the account of this depositary for the amount thereof, to apply such amount to the
purchase o f an equal amount of 2 Percent Depositary Bonds, Second Series, for account of this depositary.
The initial allotment of 2 Percent Depositary Bonds, Second Series, is to be computed by the Federal Reserve Bank, as fiscal agent of the United States, on the basis of the transactions of this depositary through the
month of
It is agreed that payment f o r all 2 Percent Depositary Bonds, Second Series,
purchased by the undersigned depositary shall be made on the first day of the second month following the end
of the month referred to above, and that such bonds shall be issued as of such date, or as of such later date as
payment f o r the Bonds is received by the Federal Reserve Bank for credit in the General Account of the Treasurer o f the United States. All 2 Percent Depositary Bonds purchased on subsequent adjustment dates as provided in Treasury Circular N o . 714, as amended, shall be handled in like manner.
This subscription f o r 2 Percent Depositary Bonds, Second Series, and selected method of allotment and
payment thereof shall remain in effect as long as the undersigned depositary is qualified as a depositary f o r withheld taxes unless new form of subscription in substitution thereof is submitted to the Federal Reserve Bank in
time to be effective on the regular adjustment dates of January 1 and July 1 prescribed by Treasury Department
Circular No. 714, as amended.
A.B.A. No
(Name and Location of Depositary)

By:

(Name and Title)c

a One of the three alternative methods shown should be selected by placing a check in the appropriate square.
b Allotments of depositary bonds will be computed by the Federal Reserve Bank on the basis of the amount of remittances
received by the Federal Reserve Bank and number of items related to such remittances.
c The officer subscribing on behalf of the depositary shall be one designated in the Resolution ( F o r m 411-A) mentioned above.




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