8o 
WAR BORROWING 
among the certificates tendered in payment of the 
first installment was the entire issue maturing June 
30, 1917, there would have remained outstanding 
some $300,000,000 certificates retained by the banks 
or their customers as investments instead of being 
tendered in payment of bond subscriptions. To 
this extent the over-payment resulted in swelling 
the Treasury balance at the expense of leaving a cor 
responding amount of the certificates of indebted 
ness unliquidated. The significance of payment by 
credit, as distinct from cash or certificate payment, 
has to do with the general question of credit ex 
pansion consequent upon the certificate issues and 
will be examined in another connection. 3 
The fiscal results of the Loan flotation appeared 
in an abrupt increase of the Treasury balance from 
$299,830,457 on June 29 to $1,064,086,250 on June 
30. Of this latter amount $305,743,526 was in the 
form of government deposits with the Federal 
Reserve Banks, and $714,841,218 with member 
banks qualified as special depositaries — this in turn 
being distinguished as $560,662,218 on account of 
Loan proceeds and $154,179,000 on account of cer 
tificates. Moreover the flotation had made possible 
by redemption at maturity and by acceptance in pay 
ment of the Loan installment the discharge of $626,- 
196,844 certificates of indebtedness, reducing the 
amount then outstanding to some $260,000,000. 
The issue of the “ daily statement ” of the Treas 
ury was suspended on June 29, 1917, and not again 
renewed until July 23, 1917, on which date the 
statement for June 30, 1917, was first made public. 
3 Page 129, below.