﻿74

WAR BORROWING

ously employed thereafter to keep the Treasury in
funds for war expenditure, by issue in anticipa-
tion of the proceeds of funded loans and extraordi-
nary taxes. In short, the war has been largely
financed by resort to short-term borrowings, peri-
odically liquidated from the proceeds of long-term
loans and to a less extent from the proceeds of war
taxes.

Assuming that certificates of indebtedness are a
valid device for effecting the initial borrowing inci-
dent to war financing, it remains to inquire whether
the larger and continuous use to which the certifi-
cates have been put has been justified by direct fiscal
result. In succeeding chapters examination will be
made of the collateral results which have attended
such use, in relation to the business world and to
general well being.

With respect to the direct part played by cer-
tificates of indebtedness in our war financing, the
course of Treasury operations from the period just
before our entry into the war up to the present time
may be distinguished into thirteen periods, as fol-
lows :

Period Date	Treasury Operations

1917

1.	March sx-April 21.........certificate issue in anticipation

of 1917 income taxes

2.	April 25-June 8...........certificate issues in anticipation

of First Liberty Loan

3.	June 15-June 30...........First Liberty Loan

4.	June 30-August 9..........reliance on net proceeds of

First Liberty Loan

5- August 9-October 24.......certificate issues in anticipation

of Second Liberty Loan