THE PRESENT 
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subscription on June 28, 1917, as to any amounts 
not paid in Treasury certificates of indebtedness “ by 
credit on their books to the account of the Treasurer 
of the United States.” This procedure had been 
foreshadowed in the mode of payment used by the 
Federal Reserve Banks for the ante-bellum certifi 
cate issue of March 31, and had been actually em 
ployed with results of the utmost significance in con 
nection with the overpayment of the installment of 
June 28, 1917, on account of the First Liberty Loan. 
The device of permissive payment “ by credit ” 
was apparently extended by administrative toler 
ance of the Treasury, to settlement for certificates 
of indebtedness acquired by or through incorpor 
ated banks and trust companies after August 28, 
1917 — that is, with respect to the issue of August 
29, 1917, and succeeding issues. Thenceforth 
qualified depositaries were permitted to make pay 
ment “ by credit ” for certificates allotted to them 
for themselves and their customers up to the amount 
for which each had qualified. Subscribing banks 
not fully qualified as depositaries were required to 
make payment for certificates by cash and current 
exchange; but in such instances the Treasury un 
dertook to re-deposit unexpended proceeds in pro 
portion to subscriptions, as promptly as depositary 
qualification was completed. 
This modification in procedure — invested with 
possibilities and indeed attended with results both 
fiscal and economic of very great importance — was 
effected without public discussion and, it may be 
ventured, without public comprehension. The 
Treasury announcement as to the issue of August