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FEDERAL RESERVE BANK OF DALLAS
rtK C A I. AGENT OP THE UNITED STATES

Dallas, Texas, July 1,1953

PRELIM INARY ANNOUNCEMENT
CASH OFFERING OF T A X ANTICIPATION
CERTIFICATES OF INDEBTEDNESS

To All Banking Institutions and Others Concerned
in the Eleventh Federal Reserve D istrict:

There is quoted below a press statement issued today by the Treasury
Department in regard to a new cash offering:
“ Secretary of the Treasury Humphrey announced today that on
Monday, July 6, the Treasury will offer for cash subscription $51^
to $6 billion Tax Anticipation Certificates o f Indebtedness dated
July 15, 1953, maturing March 22, 1954, and receivable at par plus
accrued interest to maturity in payment of income taxes due on
March 15, 1954. The new certificates may be paid for by credit in
Treasury Tax and Loan accounts.
“ The interest rate and other details of the offering will be an­
nounced later this week.
“ This offering is intended to take care of the Treasury’s cash
needs for the first quarter 6f the new fiscal year. Under present
methods of collecting corporate income taxes, about 70 percent of
the corporate tax payments this year were made in the JanuaryJune period, and only 30 percent will be received in the July-Deeember period. Thus, the Treasury has to borrow substantial amounts
in the current half year, which can be repaid out of tax payments
next March and June. For the same reason, substantial amounts of
corporate funds will be available this half year for investment in
this security. The present issue of Tax Anticipation Certificates is
being sold in lieu of Tax Anticipation bills due next March.”
The official circular and subscription forms for the cash offering will
be mailed to reach all banking institutions on or before Monday, July 6,
the date the books open.
Yours very truly,
R. R. GILBERT

President

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)


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