130

WAR  BORROWING

the  loan,  to  acquire  “  as  and  when  offered  ”  Treasury ­
  certificates  of  indebtedness  “  to  as  large  an
amount  as  practicable  and  at  least  equal  to  50  per
cent,  of  the  payments  which  they  will  have  to  make
from  time  to  time  on  account  of  subscriptions,  and
that  they  utilize  such  certificates  of  indebtedness  in
making  payment.”  To  encourage  banks  to  make  at
least  50  per  cent,  of  their  payments  in  certificates
of  indebtedness,  the  Treasury  announced  that  government ­
  deposits  would  thereafter  be  readjusted
with  respect  to  those  using  more  or  less  certificates
than  this  percentage,  so  as  to  remain  in  proportion
with  the  amount  of  non-credit  items  actually  used,
provided  that  the  amount  of  such  deposits  should
not  in  any  event  exceed  the  cash  and  certificates
used.
Beyond  this,  banks  and  trust  companies  duly
qualified  as  depositaries  having  payments  to  make
on  account  of  subscriptions  for  $100,000  or  more
bonds  might  make  payment  upon  such  subscriptions
on  June  28,  1917,  as  to  any  amount  not  paid  in  certificates ­
  of  indebtedness  “  by  credit  on  their  books
to  the  account  of  the  Treasurer  of  the  United
States.”  The  amounts  so  credited  were  to  be  allowed ­
  two  per  cent,  interest  by  the  depositaries  subject ­
  to  withdrawal  from  time  to  time  when  and  as
required.  The  Treasury  further  announced  that
the  limitation  of  the  payment  by  credit  plan  to  institutions ­
  subscribing  $100,000  or  more  was  made
necessary  by  the  brief  time  prior  to  July  2,  1917,
for  passing  upon  depositary  qualifications,  but
added  that  as  soon  thereafter  as  practicable  the  proceeds ­
  of  the  loan  would  be  redeposited  with  qualified