﻿THE PRESENT

47

at large was characterized by the Treasury as “ dis-
tinctly disappointing.” Only two districts, New
York and Kansas City, exceeded their allotment,
and but one other, Minneapolis, equaled its quota.
The entire issue of $500,000,000 was eventually
subscribed, but this result was only made possible
by the twelfth hour action of the larger banks in
financial centers, notably New York, in taking more
than their respective quotas.25

In preparation for the succeeding issue of Feb-
ruary 22, the Treasury redoubled its efforts. The
distribution of quotas of the several Federal Re-
serve Districts was modified; possible misapprehen-
sion as to the extent of each bank’s expected par-
ticipation was clarified; the minimum denomination
of the certificates was reduced from $1,000 to $500
and the interest rate of the certificates was increased
to four and one half per cent. — with the assurance
that there would be no further increase in connec-
tion with certificate issues in anticipation of the
Third Liberty Loan. A telegram was sent by the
Treasury to every bank and trust company which
had not responded to the offering of February 8,
and this solicitation was followed up through the
organization of the Federal Reserve Banks, with
the intention that “ the number of subscribers for
this coming issue shall be again doubled, and ap-
proximately every bank and trust company in the
United States shall be upon the roll.” The Treas-
ury announcement of the offering of the issue
concluded with the appeal; “ This is a patriotic
duty which is set for the banks and trust companies

25	Federal Reserve Bulletin, March, 1918, pp. 153-4, 162.