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FEDERAL RESERVE BANK OF DALLAS
F I S C A L A G E N T O F T H E U N IT E D S T A T E S

D allas, T ex a s, F e b ru a ry 2 6 ,1 9 5 1

IM P O R T A N T N O T IC E R E L A T IN G TO D E P O S IT S IN T R E A S U R Y T A X
A N D L O A N A C C O U N T S O F S P E C IA L D E P O S IT A R IE S

To all Banking Institutions in the
Eleventh Federal Reserve D istrict:

T h e S e creta ry o f th e T rea su ry has announced th at, in o rd e r to avoid an undue strain
in th e m on ey m a rk et th a t m ig h t resu lt fr o m im m ediate w ith draw al o f fu n d s fr o m th e
b an k in g sy stem on a ccou n t o f large q u a rterly installm en t p aym ents o f co rp o ra tio n incom e
taxes and excess profits taxes, Special D ep osita ries o f P u b lic M on eys w ill be p erm itted to
a ccep t f o r d ep osit in th eir T rea su ry T a x and L oan A cco u n ts fu n d s n ot to exceed the a g g r e ­
ga te a m ou nt o f ch eck s o f $10,000 or o v e r th a t are d raw n on such d ep ositaries b y co rp o ra ­
tions w h en rem ittin g th ese ta xes to collectors o f internal revenue. T h is p rov ision will be
e ffectiv e w ith resp ect to th e ta x p aym en t ch eck s receiv ed b y co llectors d u rin g th e period
fr o m M arch 5, 1951 to M arch 31, 1951. T h e S e cre ta ry o f th e T re a s u ry has also announced
th a t fu tu r e ta x p aym en ts m a y fr o m tim e to tim e be handled in a sim ilar m anner.
T h ere is enclosed f o r y o u r in form a tio n a co p y o f th e Second A m en d m en t to T reasu ry
D ep artm en t C ircu lar N o. 92 (R e v is e d ), dated F e b ru a ry 12, 1951, rela tin g to deposits in
th e T rea su ry T a x and L oa n A ccou n ts o f Special D ep osita ries. D u rin g th e period fro m
M arch 5, 1951 to M arch 31, 1951, (1 ) co llectors o f internal reven ue will d ep osit d irectly
w ith th e several F ed eral R eserv e B anks ch eck s o f $10,000 o r o v e r rep resen tin g q u a rterly
installm en t p aym en ts o f co rp ora tion incom e ta xes and excess p rofits ta xes, (2 ) F ederal
R eserv e B anks w ill p rep are d aily a “ Special D r a ft F o r C red it in T re a su ry T a x and Loan
A c c o u n t” (F o rm 453, a pp earin g as E x h ib it C in T re a su ry D ep artm en t C ircu lar N o. 92—
R ev ised ) in an am ou nt n ot to exceed th e a g g re g a te a m ou nt o f su ch ch eck s d raw n on each
Special D ep osita ry , and (3 ) in a ccord a n ce w ith th e con d ition s p rescrib ed in th e Second
A m en d m en t and set fo r th on th e fa c e o f the Special D r a ft, Special D ep osita ries m a y e x e r­
cise th eir op tion to a ccep t f o r d ep osit in th eir T re a su ry T a x and L oan A cco u n ts fu n d s in an
am ou nt equal to th e am ou n t o f th e Special D ra ft.
I f a d ep osita ry d esires to e x ercise its op tion o f d ep ositin g the a m ou nt o f the Special
D r a ft in its T rea su ry T a x and L oa n A cco u n t, th e origin al o f the d ra ft should be signed,
dated, en dorsed, and fo rw a rd e d to th is bank o r a pp rop riate branch th ro u g h reg u la r ch eck
collection channels. M em ber banks or n on m em ber clea rin g banks m a y fo rw a rd such d ra fts
in th eir cash letters to th is ban k or a pp rop riate branch , or if th ey p re fe r to a corresp on d ­
en t m em b er bank. N on m em ber banks should fo rw a rd the d ra fts th ro u g h th eir corre sp o n d ­
ent banks w h ich are m em b ers o f th e F ederal R eserve S ystem . A ll su ch d ra fts tran sm itted
th rou g h a corresp on d en t ban k sh ould be re strictiv e ly en dorsed b y th e d ep osita ry on the
rev erse th e re o f in fa v o r o f th e corresp on d en t bank. Such corresp on d en t banks should

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endorse and date th e special d ra fts fo rw a rd e d to th e m and p resen t th em th ro u g h reg u la r
ch eck collection channels to th is ban k o r b ra n ch on w h ich th e d ra fts are draw n. It is essen­
tial th a t th e d ra fts b e receiv ed b e fo r e exp ira tion o f th e n u m ber o f b u siness d ays sh ow n
on th e fa c e o f each d ra ft. T h e d uplicate co p y o f each d ra ft should be retain ed b y the
d ep osita ry as eviden ce o f th e d ep osit in its T re a s u ry T a x and L oan A cco u n t. I f a T reasu ry
T a x and L oa n d ep osita ry does n o t d esire to e x e rcise its op tion o f d e p o sitin g th e am ou nt
o f th e d r a ft in its T rea su ry T a x and L oan A cco u n t, th e d ra ft m a y b e d estroyed .
T h e T rea su ry D ep artm en t, in th e in terest o f e con om y and efficien cy in this op eration
has a u th orized a d op tion o f th is p roced u re w ith re sp e ct to ch eck s in th e am ou n t o f $10,000
or over on ly, inasm u ch as it is estim ated th a t su ch ch eck s rep resen t a p p ro x im a te ly n in ety
p ercen t o f th e dollar am ou n t o f th ese ta x p aym en ts w h ile co m p risin g on ly a p p rox im a tely
ten p ercen t o f th e tota l volu m e. Calls f o r w ith draw als o f balances in T re a su ry T a x and
Loan A cco u n ts w ill b e m ade again st deposits a risin g fr o m th is sou rce b e fo r e a n y w ith ­
draw als a re m ade w ith resp ect to o th e r fu n d s in th ese accou n ts.
T h is ban k will b e glad to fu rn ish any addition al in fo rm a tio n in this con n ection th a t
m a y b e desired.
Y o u rs v e ry tru ly,
R . R . G IL B E R T
P resid en t

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