﻿THE TREASURY	77

Federal Reserve Banks by an issue of ninety days,
two per cent, certificates of indebtedness.

In the first weeks of our actual participation in
the war, the operations of the Treasury presented
no unusual features. Disbursements — peace and
war — mounted slowly, and the revenue trickling
from war taxation showed signs of appreciable in-
crease. The immediate problem loomed up from
another quarter — credit advances to the Allies.
The First Liberty Loan act had appropriated the
huge sum of $3,000,000,000 nominally “ out of any
money in the Treasury not otherwise appropriated,”
but in reality from out of the proceeds of bonds and
certificates therein authorized to be expended in
so far as necessary in the purchase of the obligations
of foreign governments. The requirements of
Great Britain as to “ dollar credits ” were in par-
ticular urgent, and the necessities of France and
Italy were only a degree less pressing.

On April 21, 1917, the Treasury offered the
initial issue of certificates of indebtedness in an-
ticipation of the First Liberty Loan, and immedi-
ately upon the passage of the Loan act three days
later made allotments to the amount of $268,205,-
000. Of the proceeds $200,000,000 was at once
advanced to the British Government and ten days
later $125,000,000 to the French and Italian Gov-
ernments, practically exhausting the certificate pro-
ceeds. In reflection, the Treasury balance moved
from $83,617,332 on April 24 to $165,791,262 on
May 2, dropping back thereafter to $54,757,198 on
May 9 — the lowest point touched since the begin-
ning of the calendar year.