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FE D E R A L R E SE R V E BANK OF NEW YORK Fiscal A g en t o f the U nited States rCircular No. 3 9 9 2 " 1 L July 1, 1953 J T R E A S U R Y FINANCING T o all Banking In stitution s, and O thers Concerned, in th e Second F edera l B eserve D is tr ic t: The follow in g statement was made public tod a y : Secretary o f the Treasury H um phrey announced today that on M onday, J u ly 6, the Treasury will offer fo r cash subscription $ 5 % to $6 billion Tax A nticipation certificates o f indebtedness dated J u ly 15, 1953, m aturing March 22, 1954, and receivable at par plus accrued interest to maturity in paym ent o f income taxes due on March 15, 1954. The new certificates may be paid fo r by credit in Treasury Tax and Loan Accounts. The interest rate and other details o f the offering will be announced later this week. This offering is intended to take care o f the Treasury’s cash needs for the first quarter o f the new fiscal year. U nder present methods o f collect ing corporate income taxes, about 70 percent o f the corporate tax payments this year were made in the January-June period, and on ly 30 percent will be received in the July-Decem ber period. Thus, the Treasury has to borrow substantial amounts in the current h alf year, which can be repaid out o f tax payments next March and June. F o r the same reason, substantial amounts o f corporate funds w ill be available this h alf year fo r investment in this security. The present issue o f Tax A nticipation certificates is being sold in lieu o f T ax A nticipation bills due next March. A llan S proul, P resident.
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