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WAR BORROWING

each issue in pursuance of this program, this amount
being estimated as “ roughly to equal two and one-
half per cent, of the gross resources of each bank
and trust company for every period of two weeks
or a total of five per cent, monthly”— as compared
with a total of four per cent, monthly for the Third
Liberty Loan issues.

Announcement33 was also made of the contem-
plated issue “ at a convenient and favorable period
during the summer ” of certificates in anticipation
of the June, 1919, income and excess profits taxes
“ of an amount yet to be determined perhaps $2,-
000,000,000 ” of suitable maturities for tax pay-
ments. To the extent that such tax anticipation
certificates were sold, an equivalent reduction in the
amounts of the fortnightly loan anticipation issues
or of the total number of such offerings might be
expected. All banks were enjoined to “ make ar-
rangements promptly of such a character that no de-
lay will be experienced in the sale and distribution
of Treasury Certificates of both issues,” to the end
that “ no patriotic banker in the United States will
fail to do his full meed of essential service to his
country and to her noble defenders.” 34

The program was carried out without important

33	Text in Commercial and Financial Chronicle, June 22,
1918, p. 2607.

M For the promptness and vigor with which this appeal was
spread see, for example, the letter sent under date of August
26, 1918, to the banks in the State of Utah by the banking
commissioner of that State transmitting resolutions passed by
the Salt Lake Clearing House Association, wherein each
member institution formally agreed to purchase the full al-
lotment of certificates as and when offered (Federal Reserve
Bulletin, October, 1918, pp. 936-7).