68 
WAR BORROWING 
the Treasury as to the relative amount permitted 
of such credit payment. 
Both as to the total subscription payments and, 
more important, as to the aggregate volume of cer 
tificates at the time outstanding, certificates of in 
debtedness have been used to a relatively minor ex 
tent in the banks’ payments for bond subscriptions. 
In the flotation of the First Liberty Loan, 64 per 
cent, of the then outstanding and available certifi 
cates was employed in the payments made on the 
first installment date; in the Second Liberty Loan 
only 20 per cent, was so tendered, in the Third Lib 
erty Loan 32 per cent, was used, and in the Fourth 
Liberty Loan some 37 per cent. 45 : 
Loan Certificates 
anticipation used in first 
Certificates installment Per 
Liberty Loan outstanding payment Centum 
First $ 868,205,000 $554,500,000 64 
Second 2,320,495,000 469,000,000 20 
Third 2,612,085,500 823,332,600 32 
Fourth 4,659,820,000 1.738,960,950 37 
Reasonable allowance made for certificates held 
by subscribing banks in excess of their subscrip 
tions, for certificates bought by individuals, cor 
porations and non-subscribing banks for investment 
purposes, and for certificates used in later install 
ment payments — it still appears true that in effect 
ing settlement for Liberty Loan subscriptions the 
banks of the country elected and were permitted to 
make large use of payment by credit and to retain a 
substantial amount of their certificates as short- 
46 To December 19, 1918.