﻿40

WAR BORROWING

profits and war profits taxes,— all of this with the
qualification that any interest from certificate hold-
ings not in excess of $5000 should be exempt from
the latter group of taxes.

The short-term borrowing of the Treasury was
resumed under this authorization and in conformity
with its terms. Three additional series of certifi-
cates were issued, somewhat less regular in interval
and less uniform in nominal amount than the pre-
ceding issues. Of these the first — offered the day
after the Loan act had become law — was for
$400,000,000, dated September 26, and payable De-
cember 15, on which date the third installment of
the bond subscription payments became due. The
other two issues were emitted a month later in quick
succession — October 18 to mature November 22,
and October 24 to mature December 15, respec-
tively. Instead of being limited to a specified
amount, the issue of October 18 was offered “ to an
amount of not less than $300,000,000 ” and there
was actually allotted $385,197,000. The issue of Oc-
tober 24 was offered without limitation of any kind,
and the amount actually placed in the five days in
which subscriptions were received reached the large
sum of $685,296,000 — obviating the necessity of
further1 temporary borrowing before the proceeds
of the Second Liberty Loan became available.

It thus appears that in the three and one-half
months intervening between the approximate ex-
haustion of the proceeds of the First Liberty Loan
early in August up to the first availability of funds
from the Second Liberty Loan in mid-November
the extraordinary requirements of the Treasury