THE PRESENT 6 7 installments of the Four Liberty Loans in the fol- lowing proportions First Second Third Fourth [per centum] Part of Loan paid on first in- stallment 73 73 77 86 44 Composition of first install- ment payment: Certificates 38 17 26 29 Credit 27 53 47 49 Cash 35 30 27 22 A small use of cash and certificates and a heavy use of credit in payment of bond subscriptions have thus marked the successive Liberty Loan flotations. As to cash, payments have been made by interior banks by drafts upon the reserve banks, and by the reserve banks by drafts upon their reserve balances with Federal Reserve Banks — this resulting in turn in a heavy demand for discounts from member- banks and through them from non-member banks, for the restoration of depleted reserves. As to credit, the banks have followed the pro cedure elsewhere described — creating in the spe cial depositaries new or additional government de posits to the extent that payments have been made in this manner. Over and above the two limita tions operative in the case of credit payments for certificates,— extent of qualification as government depositaries and capacity of banking resources to meet subsequent withdrawals of government de posits — a third limitation has figured in the re strictions framed and to a limited extent imposed by 44 Total payments to December 19, 1918.