﻿THE TREASURY

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This gap makes it impossible to follow in detail the
operations of the Treasury in the weeks immediately
following the Loan flotation. The consolidated
statement for the interval (July 2— July 23)
shows, however, that during this period there was
advanced to the Allies $375,000,000 and expended
in ordinary disbursements $157,149,769.

By July 24, 1917, the Treasury balance stood at
$494,394,365. of which $158,296,453 was in the
Federal Reserve Banks and $320,264,871 in the
special depositaries on account of Loan receipts.
Three installments on account of the First Liberty
Loan remained unpaid, nominally to the amount of
$541,000,000; but of this only 20 per cent, was due
on July 30, 30 per cent, being payable on August
15, and 30 per cent, on August 30. Revenue from
taxation, even with the important schedules of the
war tax act then in operation, offered no adequate
relief. The 1917 income tax payments were largely
completed by June 22, and the total ordinary re-
ceipts of the Treasury were actually less in July
and August than in the months immediately follow-
ing the declaration of war. On the other hand, a
definite obligation lay immediately ahead in the
maturity on July 30 of the outstanding parts of the
certificate issues of May 25 and June 8, and be-
tween July 24 and August 14 the Treasury disbursed
$265,648,579 for this purpose.

The graver problems of the Treasury had to do
with the huge financial requirements of the Allies
and with our own swiftly mounting expenditures
for national defense. Of the two demands, the
Allies’ loans were the larger absolutely — beginning