78 
WAR BORROWING 
By this time, however, the Treasury’s plans for 
successive issues of certificates had definitely ma 
tured. At fortnightly intervals — May 10, May 
25, June 8 — issues of $200,000,000 each were al 
lotted. Of the $600,000,000 thus realized, no less 
than $560,000,000 was advanced to the Allies to 
June 29, 1917, leaving as the Treasury balance on 
that date $299,830,457, with $417,748,467 (June 
9) and $149,682,891 (May 21) as the high and 
low points intervening. The funds derived from 
certificate borrowing were carried as a government 
deposit with the Federal Reserve Banks up to May 
25, after which time the proceeds of certificate is 
sues were redeposited with subscribing banks quali 
fied as special depositaries and were remitted to the 
Federal Reserve Banks for disbursement as required 
for public expenditure. 
Subscription lists to the First Liberty Loan closed 
on June 16, with an aggregate subscription of $3,- 
035,226,850 and an actual allotment of $2,000,000,- 
000. In the light of the Treasury’s prospective re 
quirements and the clear alternative of early resort 
to further certificate borrowing, it is incomprehen 
sible that no part of the oversubscription should 
have been accepted. A preliminary payment of two 
per cent, was due on June 15 and a further install 
ment of 18 per cent, on June 28, making the amount 
certainly available on that date $400,000,000. As 
a matter of fact there was heavy over-payment of 
the installment, the receipts on account of the Loan 
up to June 30 totalling $1,458,400,000 or 73 per cent, 
of the principal. The over-payment was not limited 
to any particular section. In the New York dis