# INTRODUCTION: Source and Availability of the Balance in the Account of the U.S. Treasury

The Department of the Treasury's (Treasury's) operating cash is
maintained in accounts with the Federal Reserve banks (FRBs) and
branches, as well as in tax and loan accounts in other financial
institutions. Major information sources include FRBs, Treasury Regional
Financial Centers, Internal Revenue Service Centers, Bureau of the
Public Debt, and various electronic systems. As the FRB accounts are
depleted, funds are called in (withdrawn) from thousands of tax and loan
accounts at financial institutions throughout the country.

Under authority of Public Law 95-147 (codified at 31 United States Code
323), Treasury implemented a program on November 2, 1978, to invest a
portion of its operating cash in obligations of depositaries maintaining
tax and loan accounts. Under the Treasury tax and loan (TT&L) investment
program, depositary financial institutions select the manner in which
they will participate. Financial institutions wishing to retain funds
deposited into their tax and loan accounts in interest-bearing
obligations can participate. The program permits Treasury to collect
funds through financial institutions and to leave the funds in TT&L
depositaries and in the financial communities in which they arise until
Treasury needs the funds for its operations. In this way, Treasury is
able to neutralize the effect of its fluctuating operations on TT&L
financial institution reserves and on the economy. Likewise, those
institutions wishing to remit the funds to the Treasury account at FRBs
do so as collector depositaries.

Deposits to tax and loan accounts occur as customers of financial
institutions deposit tax payments that the financial institutions use to
purchase Government securities. In most cases, this involves a transfer
of funds from a customer's account to the tax and loan account in the
same financial institution. Also, Treasury can direct the FRBs to invest
excess funds in tax and loan accounts directly from the Treasury account
at the FRBs.

###  {#section .unnumbered}

### TABLE UST-1.---Elements of Change in Federal Reserve and Tax and Loan Note Account Balances ^1^

\[In millions of dollars. Source: Financial Management Service\]

  --------------- ------------- ------ --------- --------------- ------------ -- -- ------------- ----------- ---------- ------- ---- ----------- -- ------------- --
                  Credits and                                                                                                                                      
                  withdrawals                                                                                                                                      

                  Federal                                                                                                                                          
                  Reserve                                                                                                                                          
                  accounts                                                                                                                                         

                  Credits ^2^                                                                                 Tax and                                              
                                                                                                              loan note                                            
                                                                                                              accounts                                             

  Fiscal year or  Received                       Received                           Withdrawals                          Taxes                       Withdrawals   
  month           directly\                      through                            ^3\                                  ^4\                         (transfers to 
                  (1)                            remittance                         ^(3)                                 ^(4)                        Federal       
                                                 option tax and                                                                                      Reserve       
                                                 loan                                                                                                accounts)\    
                                                 depositaries\                                                                                       (5)           
                                                 (2)                                                                                                               

                                                                                                                                                                   

  2004            7,094,904            469,641                   7,565,782                        1,168,663                           1,166,036                    

  2005            7,485,532            468,563                   7,955,702                        1,339,363                           1,338,425                    

  2006            7,839,784            501,945                   8,340,659                        1,478,945                           1,463,568                    

  2007            8,455,356            528,724                   8,983,992                        1,571,322                           1,548,300                    

  2008            9,947,954            530,425                   10,151,438                       1,602,823                           1,633,393                    

                                                                                                                                                                   

  2007 - Dec      680,387              59,953                    728,889                          199,675                             162,694                      

  2008 - Jan      746,426              44,251                    801,024                          128,702                             105,059                      

  Feb             863,418              37,176                    901,942                          120,623                             178,518                      

  Mar             770,080              45,335                    814,287                          152,098                             118,114                      

  Apr             940,794              53,189                    994,580                          154,020                             58,854                       

  May             898,793              37,593                    936,721                          108,037                             234,507                      

  June            822,259              49,684                    871,584                          156,942                             117,886                      

  July            785,812              40,315                    825,849                          111,929                             103,966                      

  Aug             781,045              36,826                    818,446                          102,232                             156,341                      

  Sept            1,248,995            48,868                    970,065                          152,727                             115,790                      

  Oct             1,513,643            40,509                    1,283,783                        108,703                             135,722                      

  Nov             801,868              35,649                    939,874                          101,651                             111,797                      

  Dec             799,185              55,150                    989,379                          161,413                             162,177                      

                                                                                                                                                                   

  See footnotes                                                                                                                                                    
  at end of                                                                                                                                                        
  table.                                                                                                                                                           
  --------------- ------------- ------ --------- --------------- ------------ -- -- ------------- ----------- ---------- ------- ---- ----------- -- ------------- --

### TABLE UST-1.---Elements of Change in Federal Reserve and Tax and Loan Note Account Balances, con. ^1^

\[In millions of dollars. Source: Financial Management Service\]

<table>
<colgroup>
<col style="width: 17%" />
<col style="width: 1%" />
<col style="width: 9%" />
<col style="width: 0%" />
<col style="width: 10%" />
<col style="width: 0%" />
<col style="width: 9%" />
<col style="width: 4%" />
<col style="width: 5%" />
<col style="width: 10%" />
<col style="width: 10%" />
<col style="width: 0%" />
<col style="width: 9%" />
<col style="width: 10%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="2"></td>
<td colspan="12">Balances</td>
</tr>
<tr class="even">
<td colspan="4"></td>
<td colspan="2"></td>
<td colspan="8">During period</td>
</tr>
<tr class="odd">
<td></td>
<td colspan="4">End of period</td>
<td colspan="4">High</td>
<td colspan="2">Low</td>
<td colspan="3">Average</td>
</tr>
<tr class="even">
<td>Fiscal year or month</td>
<td colspan="2">Federal<br />
Reserve<br />
(6)</td>
<td colspan="2">Tax and loan<br />
note accounts<br />
(7)</td>
<td colspan="2">Federal<br />
Reserve<br />
(8)</td>
<td colspan="2">Tax and loan<br />
note accounts<br />
(9)</td>
<td><p>Federal Reserve</p>
<p>(10)</p></td>
<td><p>Tax and loan<br />
note accounts</p>
<p>(11)</p></td>
<td colspan="2"><p>Federal<br />
Reserve</p>
<p>(12)</p></td>
<td><p>Tax and loan<br />
note accounts</p>
<p>(13)</p></td>
</tr>
<tr class="odd">
<td></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td colspan="2"></td>
<td></td>
</tr>
<tr class="even">
<td>2004</td>
<td colspan="2">5,987</td>
<td colspan="2">30,362</td>
<td colspan="2">7,900</td>
<td colspan="2">51,834</td>
<td>1,592</td>
<td colspan="2">19</td>
<td>5,341</td>
<td>14,464</td>
</tr>
<tr class="odd">
<td>2005</td>
<td colspan="2">4,381</td>
<td colspan="2">31,300</td>
<td colspan="2">9,849</td>
<td colspan="2">78,251</td>
<td>3,159</td>
<td colspan="2">30</td>
<td>5,025</td>
<td>19,819</td>
</tr>
<tr class="even">
<td>2006</td>
<td colspan="2">5,451</td>
<td colspan="2">46,676</td>
<td colspan="2">7,507</td>
<td colspan="2">93,784</td>
<td>2,637</td>
<td colspan="2">78</td>
<td>5,019</td>
<td>20,614</td>
</tr>
<tr class="odd">
<td>2007</td>
<td colspan="2">5,539</td>
<td colspan="2">69,698</td>
<td colspan="2">29,504</td>
<td colspan="2">98,264</td>
<td>3,239</td>
<td colspan="2">75</td>
<td>5,216</td>
<td>23,961</td>
</tr>
<tr class="even">
<td>2008</td>
<td colspan="2">32,988</td>
<td colspan="2">39,129</td>
<td colspan="2">32,988</td>
<td colspan="2">135,752</td>
<td>2,973</td>
<td colspan="2">-</td>
<td>5,181</td>
<td>17,751</td>
</tr>
<tr class="odd">
<td></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td>2007 - Dec</td>
<td colspan="2">16,120</td>
<td colspan="2">40,855</td>
<td colspan="2">16,120</td>
<td colspan="2">60,329</td>
<td>3,924</td>
<td colspan="2">671</td>
<td>5,867</td>
<td>24,354</td>
</tr>
<tr class="odd">
<td>2008 - Jan</td>
<td colspan="2">5,773</td>
<td colspan="2">64,498</td>
<td colspan="2">16,120</td>
<td colspan="2">64,498</td>
<td>4,262</td>
<td colspan="2">2,734</td>
<td>5,525</td>
<td>19,670</td>
</tr>
<tr class="even">
<td>Feb</td>
<td colspan="2">4,424</td>
<td colspan="2">6,603</td>
<td colspan="2">6,052</td>
<td colspan="2">50,127</td>
<td>2,992</td>
<td colspan="2">94</td>
<td>4,830</td>
<td>13,358</td>
</tr>
<tr class="odd">
<td>Mar</td>
<td colspan="2">5,552</td>
<td colspan="2">40,587</td>
<td colspan="2">6,590</td>
<td colspan="2">40,587</td>
<td>4,346</td>
<td colspan="2">6,603</td>
<td>5,150</td>
<td>17,731</td>
</tr>
<tr class="even">
<td>Apr</td>
<td colspan="2">4,955</td>
<td colspan="2">135,752</td>
<td colspan="2">7,417</td>
<td colspan="2">135,752</td>
<td>3,437</td>
<td colspan="2">-</td>
<td>5,328</td>
<td>26,304</td>
</tr>
<tr class="odd">
<td>May</td>
<td colspan="2">4,620</td>
<td colspan="2">9,282</td>
<td colspan="2">6,342</td>
<td colspan="2">98,302</td>
<td>2,973</td>
<td colspan="2">-</td>
<td>4,766</td>
<td>32,453</td>
</tr>
<tr class="even">
<td>June</td>
<td colspan="2">4,978</td>
<td colspan="2">48,338</td>
<td colspan="2">7,413</td>
<td colspan="2">48,338</td>
<td>4,167</td>
<td colspan="2">124</td>
<td>5,020</td>
<td>16,190</td>
</tr>
<tr class="odd">
<td>July</td>
<td colspan="2">5,256</td>
<td colspan="2">56,300</td>
<td colspan="2">6,720</td>
<td colspan="2">56,300</td>
<td>4,024</td>
<td colspan="2">241</td>
<td>5,070</td>
<td>9,714</td>
</tr>
<tr class="even">
<td>Aug</td>
<td colspan="2">4,681</td>
<td colspan="2">2,192</td>
<td colspan="2">5,658</td>
<td colspan="2">25,373</td>
<td>4,275</td>
<td colspan="2">830</td>
<td>4,806</td>
<td>7,745</td>
</tr>
<tr class="odd">
<td>Sept</td>
<td colspan="2">32,988</td>
<td colspan="2">39,129</td>
<td colspan="2">32,988</td>
<td colspan="2">39,129</td>
<td>3,899</td>
<td colspan="2">1,177</td>
<td>5,757</td>
<td>16,359</td>
</tr>
<tr class="even">
<td>Oct</td>
<td colspan="2">43,998</td>
<td colspan="2">12,109</td>
<td colspan="2">136,672</td>
<td colspan="2">79,897</td>
<td>3,987</td>
<td colspan="2">8,172</td>
<td>33,898</td>
<td>24,884</td>
</tr>
<tr class="odd">
<td>Nov</td>
<td colspan="2">66,385</td>
<td colspan="2">1,964</td>
<td colspan="2">91,193</td>
<td colspan="2">12,109</td>
<td>17,355</td>
<td colspan="2">1,722</td>
<td>55,834</td>
<td>5,209</td>
</tr>
<tr class="even">
<td>Dec</td>
<td colspan="2">106,123</td>
<td colspan="2">1,199</td>
<td colspan="2">132,738</td>
<td colspan="2">2,181</td>
<td>41,646</td>
<td colspan="2">1,199</td>
<td>90,197</td>
<td>1,912</td>
</tr>
<tr class="odd">
<td></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td></td>
<td colspan="2"></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td></td>
<td></td>
<td colspan="2"></td>
<td></td>
</tr>
<tr class="odd">
<td colspan="8"><p><sup>1</sup> This report does not include
Supplementary Financing Program balances.</p>
<p><sup>2</sup> Represents transfers from tax and loan note accounts,
proceeds from sales of securities other than Government account series,
and taxes.</p>
<p><sup>3</sup> Represents checks paid, wire transfer payments,
drawdowns on letters of credit, redemptions of securities other than
Government account series, and investment (transfer) of excess funds out
of this account to the tax and loan note accounts.</p>
<p><sup>4</sup> Taxes eligible for credit consist of those deposited by
taxpayers in the tax and loan depositaries</p></td>
<td colspan="6">as follows: withheld income taxes beginning March 1948;
taxes on employers and employees under the Federal Insurance
Contributions Act beginning January 1950 and under the Railroad
Retirement Tax Act beginning July 1951; a number of excise taxes
beginning July 1953; estimated corporation income taxes beginning April
1967; all corporation income taxes due on or after March 15, 1968;
Federal Unemployment Tax Act taxes beginning April 1970; and individual
estimated income taxes beginning October 1988.</td>
</tr>
</tbody>
</table>