THE PRESENT 
59 
ticipation issues. The remaining twenty-three is 
sues of an aggregate amount of $10,860,603,500 
were emitted in anticipation successively of the pro 
ceeds of the First, Second, Third and Fourth Lib 
erty Loans. 
Such anticipatory borrowings have formed a 
large proportion of the nominal amounts of the 
Liberty Loans. The volume of certificates out 
standing at the several dates upon which the first 
installment on account of bond subscriptions became 
payable, and the ratio of such volume to the amount 
of the corresponding loan have been approximately 
as follows: 
Ratio of 
Liberty Date of 1st Amount Certificates Certificates 
Loan Installment of Loan Issued to Loan 
First June 28, ’17 $2,000,000,000 $ 868,205,000 434 
Second Nov. 15, ’17 3,808,766,150 2,320,493,000 60.9 
Third May 4, T8 4,170,019,650 2,612,085,500 62.6 
Fourth Oct. 19, T8 6,989,047,000 4,665,320,000 66.7 
In other words, the Liberty Loans have been to 
an increasing extent required to discharge short 
term indebtedness contracted by certificate borrow 
ing in anticipation of the flotations. 
The certificates have been taken and held in the 
main by the financial institutions of the country — 
national banks, state banks and trust companies. 37 
The Federal Reserve Banks, with whom was placed 
37 An investigation made by the Savings Bank Section of the 
American Bankers’ Association showed that out of 405 such 
institutions in the six New England States 167 savings banks 
having 60 per cent, of the total assets of such banks had in 
vested 3.2 per cent, of their resources in certificates of indebt 
edness. In the five Eastern States, out of 196 such institutions 
101 savings banks having more than 60 per cent, of the total