74 
WAR BORROWING 
ously employed thereafter to keep the Treasury in 
funds for war expenditure, by issue in anticipa 
tion of the proceeds of funded loans and extraordi 
nary taxes. In short, the war has been largely 
financed by resort to short-term borrowings, peri 
odically liquidated from the proceeds of long-term 
loans and to a less extent from the proceeds of war 
taxes. 
Assuming that certificates of indebtedness are a 
valid device for effecting the initial borrowing inci 
dent to war financing, it remains to inquire whether 
the larger and continuous use to which the certifi 
cates have been put has been justified by direct fiscal 
result. In succeeding chapters examination will be 
made of the collateral results which have attended 
such use, in relation to the business world and to 
general well being. 
With respect to the direct part played by cer 
tificates of indebtedness in our war financing, the 
course of Treasury operations from the period just 
before our entry into the war up to the present time 
may be distinguished into thirteen periods, as fol 
lows : 
Period Date Treasury Operations 
1917 
1. March sx-April 21 certificate issue in anticipation 
of 1917 income taxes 
2. April 25-June 8 certificate issues in anticipation 
of First Liberty Loan 
3. June 15-June 30 First Liberty Loan 
4. June 30-August 9 reliance on net proceeds of 
First Liberty Loan 
5- August 9-October 24 certificate issues in anticipation 
of Second Liberty Loan