View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

M VKttY <Jf T H t fiH k M L

ciiraAN*
" n tfilS R B F E D E R A L

RESERVE

BANK

OF

ST.

LO U IS '

< S'

F IS 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 epa r tm en t o f D e p o s it a r ie s
fo r W it h h e ld T a x e s

A ugust 25, 1943.

To A ll D epositaries fo r W ithh eld T axes in the
E ighth F ederal R eserve D istrict:

Reference is made to Section 8 of Treasury D epartm ent Circular No. 714, concerning the methods
for offsetting costs incurred by depositaries for withheld taxes in perform ing their functions under this cir­
cular.
1. U nder the provisions of D epartm ent Circular No. 714, a depositary is perm itted to select one of
two alternative m ethods to purchase 2 Percent Depositary Bonds, Second Series. It will be observed from
the tables com prising Exhibit C of the Circular, that a depositary electing to purchase bonds w ith its own
funds will be perm itted to purchase twice the am ount that it would be allowed to purchase if it elected to
take the T reasury balance. The circular also provides that the initial allotm ent of 2 Percent D epositary
Bonds to which a depositary is entitled will be calculated on the basis of the business transacted by the de­
positary during the first full m onth of operations after the month in which it becom es qualified as a deposi­
tary for w ithheld taxes. However, each depositary will be given the privilege of deciding w hether the initial
determ ination is to be based upon the business transacted by the depositary during the m onth in which it was
qualified, or upon the business transacted during the m onth immediately following. For instance, some depos­
itaries which w ere qualified early in A ugust 1943 will have transacted substantially a full m onth’s business
and hence m ight prefer to have their initial allotm ent of 2 Percent D epositary Bonds, Second Series, based
upon the business transacted during th at month in order to have the bonds issued after the close of A ugust
rather than the close of September. A fter the initial allotm ent has been made, adjustm ents will be calcu­
lated on the basis of business transacted during the periods indicated in Section 8 of the circular.
2. In determ ining the am ounts of the allotm ents of 2 Percent D epositary Bonds, Second Series, to
which depositaries are initially entitled, the Federal Reserve Bank or Branch shall have until the 10th of the
m onth after the close of the m onth under review to make such determ ination w ith respect to all deposita­
ries in its district whose cases are up for consideration. The com putation of the depositaries’ m onthly trans­
actions, upon which such determ ination is to be based, will be governed by the dates th at the depositaries’
rem ittances of w ithheld taxes are received by the Federal Reserve Bank or Branch. Each depositary should
make its final rem ittance of w ithheld taxes during the month to be used as the period for the initial deter­
m ination in ample time for such rem ittance to be received by the Federal Reserve Bank or Branch before the
close of that m onth. It is of particular im portance th at this be done in the case of a depositary which may
not receive paym ents of w ithheld taxes aggregating $5,000 or more in its first m onth of operations and
hence, under the circular, w'ould not be required to rem it such paym ents to the Federal Reserve Bank or
Branch until the first business day of the succeeding month.



3. Each depositary m ust furnish the appropriate Federal Reserve Bank or Branch with a subscription
for the 2 percent Depositary Bonds, Second Series, which it m ight be entitled to purchase under the term s
of D epartm ent Circular No. 714. Such subscription is to be made on T reasury Form Xo. 418 attached hereto.
This form provides for the election of the method of paym ent to be used by the depositary for purchase
of the bonds. T h e subscription on form No. 418 should, if possible, be subm itted to the Federal Reserve
Bank or Branch before the close of the m onth to be used as the period for the determ ination of the initial
allotm ent of bonds which the depositary is entitled to purchase. The subscription and specified method of
paym ent will rem ain in effect as long as the depositary is qualified as a depositary for withheld taxes unless
the depositary, in the interim , subm its a new subscription on form No. 418 indicating election of a different
method of paym ent. H owever, change in the election of the method of paying for the bonds is perm itted by
the circular only on the adjustm ent dates of December 31 and June 30 of each year.
4. If the depositary elects in its subscription on Form 418 to take a Treasury balance, such balance
w ill be placed w ith the depositary on the 10th of the m onth following the close of the m onth under review
for the com putation of the balance. W hen T reasury balances are placed w ith depositaries, concurrently 2
P ercent D epositary Bonds, Second Series, in am ounts equal to such balances will be issued by the Federal
Reserve Bank or Branch and each depositary concerned will be advised of the am ount of the deposit liability
w’hich should be established on its books. T he deposit liability is to be carried in an account entitled,
“ Federal Reserve Bank o f ...................................... . Fiscal Agent of the United States, for account of the T reas­
urer of the U nited S tates - Tim e D eposit.” T he bonds will be issued in the name of the Federal Reserve
Bank or Branch as Fiscal A gent of the United States, in tru st for the depositary, and such bonds will be held
as collateral security for the deposit balance. A t the close of each month, a statem ent should be subm itted
to the Federal Reserve Bank or Branch confirming the am ount of the deposit balance then standing to the
credit of the T reasurer of the U nited States in the aforementioned account on the depositary’s books.
5. If a depositary elects to purchase the 2 Percent Depositary Bonds, Second Series, w ith its own
funds, it will be advised by the Federal Reserve Bank or Branch of the am ount of the bonds to which it is
entitled and rem ittance should be made by the 10th of the month. T he bonds will be issued in the name of
the Federal Reserve Bank or Branch, as Fiscal A gent of the U nited States, in tru st for the depositary, and
will be held in safekeeping by the Federal Reserve Bank or Branch as required by D epartm ent Circular No.
714. An appropriate safekeeping receipt will be sent to the depositary.




Form No. 4IS
TREASURY D EPA RTM EN T
F iscal S ervice
B ureau of Accounts

SUBSCRIPTION FOR 2 PERCENT DEPOSITARY BONDS, SECOND SERIES

*

(Datti)

TO FED ERA L RESERVE BANK OF:

Fiscal Agent of the United States
Pursuant to the provisions of Resolution Authorizing Execution of Application-Agreement, Depositary for
Withheld Taxes (Treasury Form 411-A), the undersigned depositary subscribes and agrees to make payment for
2 Percent Depositary Bonds, Second Series, which may be allotted from time to time for purchase by the depositary
under the provisions of Section 8 of Treasury Department Circular No. 714. For determining the amount of such
bonds which the undersigned depositary may 1*■ initially or periodically entitled to purchase, and for effecting pay­
ment for the bonds allotted for purchase, the method indicated below is selected: (A)
2 PERCENT DEPOSITARY BONDS, SECOND SERIES,
TO BE PURCHASED WITH THE DEPOSITARY’S OWN FUNDS

□
□

The Federal Reserve Bank or Branch as Fiscal Agent of the United States shall compute the allotment of
2 Percent Depositary Bonds, Second Series, on the basis of Table I incorporated in Treasury Department
Circular No. 714 as Exhibit C,(B) and the Federal Reserve Bank or Branch is authorized to effcct payment
for the bonds thus allotted by charging the
.. ..............................................(C)
account of this depositary.
The Federal Reserve Bank or Branch as Fiscal Agent of the United States shall compute the allotment of
2 Percent Depositary Bonds, Second Series, on the basis of Table I incorporated in Treasury Departm ent
Circular Xo. 714 as Exhibit C,(B) and this depositary will make payment for the bonds thus allotted by
remittance of the purchase price upon advice from the Federal Reserve Bank or Branch as to the amount
of the approved allotment.
BALANCE TO THE CREDIT OF THE TREASURER OF THE UNITED STATES TO BE
PLACED WITH THE DEPOSITARY TO BE USED FOR THE PURCHASE OF AN EQUAL
AMOUNT OF 2 PERCENT DEPOSITARY BONDS, SECOND SERIES

□

A balance to the credit of the “ Federal Reserve Bank or Branch, Fiscal Agent of the United States, for
account of the Treasurer of the United States—Time Deposit” shall be deposited with this depositary.
The amount of such balance will be computed by the Federal Reserve Bank or Branch as Fiscal Agent
of the United States on the basis of Table II incorporated in Treasury Department Circular No. 714 as
Exhibit C.(B) The Federal Reserve Bank or Branch is authorized, in lieu of remitting the amount of such
authorized balance to this depositary or crediting the account of this depositary for the amount thereof,
to apply such amount to the purchase of an equal amount of 2 Percent Depositary Bonds, Second Series,
for account of this depositary.

The initial allotment of 2 Percent Depositary Bonds, Second Series, is to be computed by the Federal Reserve
Bank or Branch, as Fiscal Agent of the United States, on the basis of the transactions of this depositary for the
month of___
. It is agreed that payment for all 2 Percent Depositary Bonds, Second Series,
purchased by the undersigned depositary shall be made on the tenth day following the end of the m onth referred
to above, and that such bonds shall be issued as of such date, or as of such later date as payment for the bonds
is received by the Federal Reserve Bank or Branch for credit in the general account of the Treasurer of the United
States. All ‘2 Percent Depositary Bonds purchased on subsequent adjustment dates as provided in Treasury Cir­
cular No. 714, as amended, shall be handled in like manner.
This subscription for 2 Percent Depositary Bonds, Second Series, and selected method of allotment and pay­
ment thereof shall remain in effect as long as the undersigned depositary is qualified as a depositary for withheld
taxes unless new form of subscription in substitution thereof is submitted to the Federal Reserve Bank or Branch
in time to l>e effective on the regular adjustm ent dates of December 31 and June 30 prescribed by Treasury D epart­
ment Circular No. 714.
(Name and Location of Depositary)

B y : ................................................................................................................
(Name and Title) (D)
(A)
(B)

One of the three alternative methods shown should be selected by placing a check in the appropriate square.
Allotments of depositary bonds will be computed by the Federal Reserve Bank or Branch on the basis of the amount of
remittances received by the Federal Reserve Bank or Branch and number of items related to such remittances.
(C) Insert name of account, for example "Reserve" account.
(D) The officer subscribing on behalf of the depositary shall be one designated in the Resolution (Bonn 4U-A) mentioned above.