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WAR BORROWING

the Treasury as to the relative amount permitted
of such credit payment.

Both as to the total subscription payments and,
more important, as to the aggregate volume of cer-
tificates at the time outstanding, certificates of in-
debtedness have been used to a relatively minor ex-
tent in the banks’ payments for bond subscriptions.
In the flotation of the First Liberty Loan, 64 per
cent, of the then outstanding and available certifi-
cates was employed in the payments made on the
first installment date; in the Second Liberty Loan
only 20 per cent, was so tendered, in the Third Lib-
erty Loan 32 per cent, was used, and in the Fourth
Liberty Loan some 37 per cent.45:

Loan	Certificates

anticipation	used in first

Certificates	installment	Per

Liberty Loan outstanding	payment Centum

First ...........$ 868,205,000	$554,500,000	64

Second .......... 2,320,495,000	469,000,000	20

Third ___________2,612,085,500	823,332,600	32

Fourth .......... 4,659,820,000	1.738,960,950	37

Reasonable allowance made for certificates held
by subscribing banks in excess of their subscrip-
tions, for certificates bought by individuals, cor-
porations and non-subscribing banks for investment
purposes, and for certificates used in later install-
ment payments — it still appears true that in effect-
ing settlement for Liberty Loan subscriptions the
banks of the country elected and were permitted to
make large use of payment by credit and to retain a
substantial amount of their certificates as short-

46 To December 19, 1918.