190 
WAR BORROWING 
certificate issues in anticipation of the Third Liberty 
Loan matured, cannot be as satisfactorily traced 
from the data available. The first period of the span 
includes the installment payments of the Third Lib 
erty Loan, while the second period overlaps the re 
sumption of certificate borrowing in anticipation of 
the Fourth Liberty Loan. If, in order to eliminate 
the first complication, the first two issues be omitted 
and the redemption period be narrowed to May 28 
-July 18 we still have to do with the facts that 
within this period three issues of Third Liberty 
Loan certificates to the nominal amount of $1,612,- 
085,500 matured, and two issues of Fourth Liberty 
Loan certificates to the nominal amount of $1,599,- 
084,500 were emitted, making a net reduction of 
$13,001,000. In addition six issues of tax-antici 
pation certificates to the nominal amount of $1,624,- 
403,500 matured on June 25, 1918. 
Within the seven weeks the loans and investments 
of the banks underwent the following changes: 
May 31 July 19 
Number of reporting banks 689 718 
Net demand deposits on which re 
serve is computed 19,025,495,000 $8,919,235,000 
Government deposits 909,312,000 602,803,000 
United States Certificates of in 
debtedness owned 1,041,878,000 527,461,000 
Loans secured by U. S. bonds and 
certificates 512,962,000 473,616,000 
Other loans and investments 10,004,162,000 10,535,197,000 
Redemption and distribution of certificates are 
here reflected in a decline of the banks’ holdings of 
certificates of $514,417,000 and a reduction of gov 
ernment deposits of $306,509,000. No part of the