﻿THE PRESENT

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The nominal aggregate of the four issues in an-
ticipation of the First Liberty Loan was $868,205,-
000. This amount remained outstanding until June
30, when the issue of April 25 matured leaving the
nominal amount outstanding $600,000,000. Dur-
ing the succeeding two months, the Treasury’s needs
were supplied by the unexpectedly large overpay-
ment in settlement of the early Liberty Loan sub-
scription installments. On July 30, 1917, the last
of the outstanding certificates matured and were
paid off, leaving the Treasury free from certificate
indebtedness.

(C)	The interval was brief. Ten days later,
on August 9, 1917, short-term borrowing, nominally
in anticipation of a Second Liberty Loan, was re-
sumed. The intention of the Treasury as to the
near future was set forth in detail:

“ It is expected that certificates of indebtedness will be
issued from time to time somewhat in advance of the
immediate requirements of the United States. The pri-
mary object of this is to avoid the financial stress which
would result from the concentration of the payments for
a great bond issue upon a single day (which can not be
avoided wholly by provision for payment by installments
as a great proportion of subscribers prefer to make pay-
ment in full on one day as a matter of convenience.) ”14

Although the avoidance of monetary strain in
connection with the loan flotation was thus em-
phasized as the purpose of the renewed certificate
borrowing, it is probable that the provision of ad-
ditional funds could not in any event have been

14	Treasury statement of August 19, 1917, in Federal Re-
serve Bulletin, September, 1917, p. 664.