The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
F E D E R A L R E S E R V E BAN K O F NEW YORK Fiscal A g en t o f the U nited States r Circular N o. 3 5 7 5 "I L A ugust 8, 19S0 J DEPOSIT OF FEDERAL TAXES WITH DEPOSITARY BANKS AND FEDERAL RESERVE BANKS Discontinuance of Special Draft for Credit in Treasury Tax and Loan Account To all Banks and Trust Companies in the Second Federal Reserve D istrict: The Secretary of the Treasury has announced the discontinuance, effective September 1, 1950, o f Special Drafts for credit in Treasury Tax and Loan Accounts covering Federal taxes deposited by employers directly with Federal Reserve Banks. This action has been taken in the interest o f economy and efficiency in operations. W e enclose amendments, dated July 20, 1950, to Treasury Depart ment Circulars No. 92 (Revised) and No. 848, which revoke the pro visions in these circulars relating to Special Drafts for credit in Treasury Tax and Loan Accounts. W e also enclose a copy of our Operating Circular No. 18, Revised September 1, 1950, reflecting these amendments. Additional copies o f this circular and o f the enclosures will be furnished upon request. A llan S proul, President. SPECIAL DEPOSITS OF PUBLIC MONEYS UNDER THE ACT OF CONGRESS APPROVED SEPTEMBER 24, 1917, AS AMENDED (SECOND LIBERTY BOND ACT, AS AMENDED) 1950 Departm ent C ircular N o. 92 (Revised) F irst Amendment TREASURY DEPARTMENT, O f f ic e F iscal Service Bureau o f A ccounts of th e Secretary, Washington, July 20, 1950. To Federal Reserve Banks and other incorporated banks and trust companies in the United States (including the District of Columbia), the Territories o f Alaska and Hawaii, Puerto Rico, the Virgin Islands, and the Panama Canal Zone: Department Circular No. 92 (Revised), dated November 10,1949, is hereby amended, effec tive September 1, 1950, as follows: By deleting subparagraph 13(c), under the section entitled “ Deposits in Treasury Tax and Loan Account” ; By deleting paragraph 17, under the section entitled “ How Deposits Are To Be Made” ; By deleting the heading and the succeeding paragraphs 18 through 22, comprising the entire section entitled “ Special Draft for Credit in Treasury Tax and Loan Account” ; By deleting Exhibit C entitled “ Special Draft for Credit in Treasury Tax and Loan Account” ; And by renumbering paragraphs 23 and 24, under the section entitled “ Withdrawal o f Deposits,” to read 17 and 18, respectively. (S ig n e d ) JO H N W . S N Y D E R , Secretary of the Treasury. U. S. GOVERNMENT PRINTING OFFICE 16--- 6 2 1 4 3 - 1 REGULATIONS GOVERNING THE DEPOSIT WITH FEDERAL RESERVE BANKS AND DEPOSITARY BANKS OF EMPLOYER AND EMPLOYEE TAXES UNDER THE FEDERAL INSURANCE CONTRIBUTIONS ACT AND OF INCOME TAX WITHHELD ON WAGES UNDER SECTION 1622 OF THE INTERNAL REVENUE CODE (Applicable to Wages Paid on or after January 1,1950) 1950 Departm ent C ircular N o. 848 F irst A m endm ent TREASURY DEPARTMENT, O f f ic e F iscal S ervice Bureau o f A ccoun ts of th e Secretary, Washington, July 20, 1950. To Federal Reserve Banks, incorporated banks and trust companies, and others concerned: Department Circular No. 848, dated November 10, 1949, is hereby amended, effective September 1, 1950, by deleting subparagraph E, under section 10 entitled “ Functions to be Per formed by Federal Reserve Banks,” and by substituting in lieu thereof the following: “ ( E) Perform the necessary functions to provide for crediting deposits of Federal taxes in Treasury Tax and Loan Accounts of depositary banks, with respect to deposits of such taxes made by employers with banks acting in their capacity as Depositaries for Federal Taxes.” (Signed) JOHN W. SNYDER, Secretary of the Treasury. U. S. GOVERNMENT PRINTING OFFICE 1*5--- 6 2 1 4 4 -* DEFENSE LOAN POLICY A n A n n o u n c e m e n t A d o p t e d J o i nt l y by N a t i o n a l and State S u p e r v i s o r s o f B a nk s and O t h e r L e n d i n g Instituti ons T h e President o f the U n ite d States in his message to the C on g re s s on July 19, 1950, poin ted out that as a further im portant s a fe g u a rd against inflation w e shall need to restrain credit expansion, and that if we are to be successful there must be sensible and restrained action by businessmen, laborers, farm ers, and consum ers. T h e need f o r the exercise o f restraint is all-embracing. It applies alike to gov ern m en ta l agencies, national and State, as well as to private institutions and individuals. A cc o rd in g ly , the B o a r d o f G o v e r n o r s o f the F ed era l R eserve System, the C o m p t r o l le r o f the Currency, the Federal D e p o s it Insurance C o r p o r a t i o n , the H o m e L o a n Bank B oa r d , and the N ation al A sso cia tion o f Supervisors o f State Banks urge that banks and all oth e r institutions en ga ged in extending credit exercise special care in their lending and investment activities. T h e banks and o th e r lending institutions o f the country have d em onstrated by their loyal response at critical p eriods in the past that they will stand united with their G overnm ent in the situation that n ow confronts us. Officials o f associations o f lending institutions have called upon banks and o th e r financial institutions to decline to make loans to business or consumers which might be used f o r speculative purposes o r otherw ise interfere with defense requirements. T h e su pervisory authorities s tron gly join in this request. A ll officials o f the supervisory agencies will be g lad to c o n f e r with the officers o f banks and oth er financial institutions, to counsel with them regardin g this p r o g r a m o f credit restraint. A s poin ted out by President T r u m a n , an a bn orm ally high civilian demand f o r g o o d s a lo n g with an increased need f o r military materials is creating a stron g upw ard pressure on prices. A continuation o f the rapid g r o w th o f credit resulting f r o m con su m er d em an d f o r houses and oth er g o o d s and specu lative accumulation o f inventories by business w ou ld add to inflationary pres sures anci seriously handicap the necessary expansion o f military p rod u ction . T h e r e f o r e , lenders should carefully analyze all loan applications and avoid m aking loans which w ou ld have these adverse effects. August 4, 1950. B oard of G overnors of t h e F ederal R eserve System C om ptroller of t h e C u r re n cy F ederal D eposit I n s u r a n c e C orporation H ome L o an B a n k B oard N a t io n a l A ssociation of S upervisors of Sta te B a n k s
@FedFRASER