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WAR BORROWING

The total resources of the 25,180 national banks,
state banks and trust companies reporting to the
Comptroller of the Currency aggregated on June
20, 1917, $30,850,527,556. So that the allocation
of one per cent, weekly for the purchase of cer-
tificates of indebtedness would realize, conserva-
tively, the Treasury’s program.23

On February 6, 1918, the Treasury offered
through the Federal Reserve Banks the first of such
issues — $500,000,000 certificates of indebtedness
to mature on May 9, 1918, and bearing four per
cent, interest from February 8, 1918. In con-
nection with this offer the Secretary of the Treas-
ury addressed a telegram to all banks and trust com-
panies, inviting each as a matter of patriotic duty,
to set aside each week approximately one per cent,
of its gross receipts and place that amount at the
disposal of the government by investing it in cer-
tificates of indebtedness as might from time to time
be offered. With fortnightly issues, it would fol-
low “ if each bank will do its share that as a maxi-
mum 10 per cent, of the gross resources of the
banks, or approximately $3,000,000,000, will be
raised between now and the next Liberty Loan,
provided that it is necessary to call upon the banks
to that extent.” 24

The appeal for such “ a co-operative effort of the
banks ” was effective to the extent that the number
of subscribers to the issue of February 8 was double
the number to the preceding issue of January 22.
But in amount, the subscriptions from the country

23	“ Report of Comptroller of Currency,” 1917, p. 108.

24	Federal Reserve Bulletin, March, 1918, p. i6x.