﻿62

WAR BORROW UNKjt

In the absorption of the certificates for themselves
and their customers, the banks of the New York
District have taken the leading part and this tend-
ency has continued with the progress of the Treas-
ury’s short-term borrowing. Of the $868,205,000
certificates issued in anticipation of the First Lib-
erty Loan, the banks of the New York District
took $459,962,000 or 53 per cent.; and of the $2,-
320,493,000, issued in anticipation of the Second
Liberty Loan, $1,467,543,000 or 63 per cent, was
so taken. Of the final issue of this series— (11)
$685,296,000 bearing date of October 24, 1917 —
the New York banks took no less than $543,683,000
or 79 per cent., and even of the next succeeding
issue — the first of the series of 19x8 tax antici-
pation issues— (12) $691,872,000 bearing date of
November 30, 1917 — $494,070,500 or 72 per cent,
was so taken. With the systematic efforts of the
Treasury to establish a wider subscription basis for

the results of valuable inquiries, along the lines laid down
above, made by Mr. Frederick H. Curtiss, Chairman of the
Federal Reserve Bank of Boston, as to the absorption of cer-
tificates of indebtedness in the New England District. It ap-
pears that the assumption made in the foregoing computation
that certificates have been taken by the trust companies in the
same proportion as by the national banks does not hold, at
least in this District, with respect to more recent certificate
issues. To the certificates issued in anticipation of the Third
Liberty Loan the national banks in the District subscribed
11.94 per cent, of their total resources, while trust companies
took only 7.13 per cent. To the certificates in anticipation of
the Fourth Liberty Loan the national banks subscribed 15-33
per cent, of their resources and the trust companies only 11.97
per cent. It appears further that of the certificates sold to
banks and trust companies in the District between June 25,
and August 31, 1918, there were retained by such institutions
up to the latter date, approximately 41.9 per cent, of the
amount .taken.