﻿THE PRESENT	33

to deposits of government funds in qualified de-
positaries.11

The provisions of the enabling act were supple-
mented by administrative action. The Federal Re-
serve Banks “ as holders of the liquid cash resources
of the nation ” were not to absorb such certificates as
direct investments, as in the case of the preceding
issue, but to act as distributors in placing the cer-
tificates among the member banks and trust com-
panies in their respective districts. To the end of
“ relieving the money market from the strain of
heavy loan subscription payments,” member banks
and financial institutions generally were authorized
and urged to employ certificates in payment of
Liberty Loan subscriptions made by them directly
or in remitting the funds for subscriptions made
through them as agents. Finally, the Secretary of
the Treasury announced that “ in the financial oper-
ations in which the Government is about to engage it
will be his purpose to adjust receipts and disburse-
ments in such a way that as far as possible money
paid in will be promptly returned to the market.”12

Between April 25 and June 8 the Treasury
issued four series of certificates of indebtedness at
fortnightly intervals. The first two series bore
three per cent, interest; the others, three and a
quarter. The nominal amount of each series was
$200,000,000; but over-subscription of the first
issue led to actual allotment of $268,205,000, after
which the amount offered in each issue was not ex-
ceeded in allotment. The maturities were sixty

11	See p. 126, below.

12	Federal Reserve Bulletin, May, 1917, p. 342.