﻿THE PRESENT

6 7

installments of the Four Liberty Loans in				the fol-
lowing proportions				
	First	Second Third		Fourth
	[per centum]			
Part of Loan paid on first in-				
stallment 			 73	73	77	86 44
Composition of first	install-			
ment payment: Certificates 			 38	17	26	29
Credit 			 27	53	47	49
Cash 			35	30	27	22
A small use of cash and certificates and				a heavy

use of credit in payment of bond subscriptions have
thus marked the successive Liberty Loan flotations.
As to cash, payments have been made by interior
banks by drafts upon the reserve banks, and by the
reserve banks by drafts upon their reserve balances
with Federal Reserve Banks — this resulting in turn
in a heavy demand for discounts from member-
banks and through them from non-member banks,
for the restoration of depleted reserves.

As to credit, the banks have followed the pro-
cedure elsewhere described — creating in the spe-
cial depositaries new or additional government de-
posits to the extent that payments have been made
in this manner. Over and above the two limita-
tions operative in the case of credit payments for
certificates,— extent of qualification as government
depositaries and capacity of banking resources to
meet subsequent withdrawals of government de-
posits — a third limitation has figured in the re-
strictions framed and to a limited extent imposed by

44 Total payments to December 19, 1918.