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WAR BORROWING

with the issue of November 30, 1917. Response
to the offering, although slower than in the case of
the first issue, was hearty. The subscription books
remained open for some weeks, overlapping the
certificate offering of January 22 in anticipation of
the Third Liberty Loan, and the total allotment
was $491,822,500. The Treasury offered further
series of tax anticipation certificates on February
15, March 15, April 15, May 15, all due on June
25, 1918. The arrangement thus took practically
the form of continuous “ over the counter ” sale
of certificates to prospective taxpayers, with a max-
imum of one month’s accrued interest.

The efforts of the Treasury and the activities of
the Federal Reserve Banks were but moderately
successful in securing a large absorption of the
tax anticipation certificates after the issues of No-
vember 30, 1917 and January 2, 1918. Of the
issue of May 15, 1918, the considerable sum of
$183,767,000 was taken; but a substantial part of
this was in immediate preparation for the payment
of the income and excess profits taxes become due
on June 15, 1918. None of the other three issues
approximated this amount. The total volume of
tax anticipation certificates issued was $1,624,403,-
500, as compared with an actual yield of the 1918
income and excess profits taxes in the fiscal year
ended June 30, 1918, of $2,839,083,585.

(E)	Early in January, 1918, it had become ap-
parent that receipts from tax anticipation certifi-
cates of indebtedness would be insufficient to meet
the Treasury’s requirements and that early recourse