﻿THE PRESENT

59

ticipation issues. The remaining twenty-three is-
sues of an aggregate amount of $10,860,603,500
were emitted in anticipation successively of the pro-
ceeds of the First, Second, Third and Fourth Lib-
erty Loans.

Such anticipatory borrowings have formed a
large proportion of the nominal amounts of the
Liberty Loans. The volume of certificates out-
standing at the several dates upon which the first
installment on account of bond subscriptions became
payable, and the ratio of such volume to the amount
of the corresponding loan have been approximately
as follows:

Ratio of

Liberty Date of 1st Amount Certificates Certificates
Loan Installment of Loan	Issued to Loan

First	June	28,	’17	$2,000,000,000 $ 868,205,000	434

Second	Nov.	15,	’17	3,808,766,150	2,320,493,000	60.9

Third	May	4,	T8	4,170,019,650	2,612,085,500	62.6

Fourth	Oct.	19,	T8	6,989,047,000	4,665,320,000	66.7

In other words, the Liberty Loans have been to
an increasing extent required to discharge short-
term indebtedness contracted by certificate borrow-
ing in anticipation of the flotations.

The certificates have been taken and held in the
main by the financial institutions of the country —
national banks, state banks and trust companies.37
The Federal Reserve Banks, with whom was placed

37 An investigation made by the Savings Bank Section of the
American Bankers’ Association showed that out of 405 such
institutions in the six New England States 167 savings banks
having 60 per cent, of the total assets of such banks had in-
vested 3.2 per cent, of their resources in certificates of indebt-
edness. In the five Eastern States, out of 196 such institutions
101 savings banks having more than 60 per cent, of the total