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Dallas, Texas, November 17,1958


To all Banking Institutions and Others Concerned
in the Eleventh Federal Reserve District:
The Treasury Department has announced that the procedure customarily in effect during
periods of heavy tax payments with respect to the special handling of large payments of corporation
income taxes and excess profits taxes, will be effective for the December 1958 tax collections. This
arrangement will be applicable only to the extent of 50% of the amount of tax payments of $10,000
or over.
During the period from December 1, 1958 through January 5, 1959, (1) Directors of Internal
Revenue will make special deposits with the Federal Reserve banks of checks representing tax
remittances of $10,000 or over covering payments of corporation income taxes and excess profits
taxes, (2) Federal Reserve banks will prepare daily a “Special Draft for Credit in Treasury Tax
and Loan Account” in an amount not to exceed 50% of the aggregate amount of such checks drawn
on each Special Depositary, and (3) in accordance with conditions set forth on the face of the special
draft, Special Depositaries may exercise their option to accept for deposit in their Treasury Tax
and Loan Accounts funds in an amount equal to the amount of the special draft.
The Treasury Department has indicated that it may be necessary to either increase or decrease
the percentage amount of such checks for credit in the Treasury Tax and Loan Account from time
to time during the period, if such action is required to prevent undue fluctuations in the amount
of the balances in the accounts of the Treasurer of the United States with Federal Reserve banks.
No distinction will be made between these special credits and other credits to Treasury Tax
and Loan Accounts. Calls for withdrawals of balances in Treasury Tax and Loan Accounts will be
made as required by the needs of the Treasury.
This bank will be pleased to furnish any additional information in this connection that may
be desired.
Yours very truly,
Watrous H. Irons

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