﻿56

WAR BORROWING

tion of the first two issues and the increased re-
turns from war savings certificates and from in-
come and excess profits taxes, but added: 35 “ This,
however, is only a minimum amount and those in-
stitutions which have made arrangements to sub-
scribe their share on the basis of an offering of
$750,000,000 will be free to do so.” In addition to
the specific reasons set forth it is probable that the
reduction was in a measure due to the modified
policy of the Treasury with respect to its working
balance, noticeable after mid-August.

(G)	On August 16, 1918, the Secretary of the
Treasury, in accordance with the announced pro-
gram, offered for subscription at par and accrued
interest, the “ tax series of 1919 ” certificates of in-
debtedness. The issue was dated August 20, 1918,
bore interest at the rate of four per cent, and ma-
tured July 15, 1919. To avoid the necessity of suc-
cessive issues or the inconvenient accumulation of
accrued interest, provision was made for the bi-
monthly payment of interest. In all other technical
particulars the issue corresponded with the 1918
tax anticipation series. The offering was made
without limit of amount; but the Treasury reserved
as usual the right to reject any subscription and
to allot less than the amount of certificates applied
for and to close the subscription at any time with-
out notice. As fiscal agents of the United States,
Federal Reserve Banks were to receive subscriptions
and to make allotment in full in the order of the re-
ceipt of applications until further notice. As be-
35 Federal Reserve Bulletin, August, 1918, p. 699.