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WAR BORROWING

approximately, $2,787,000,000 — constituting 73
per cent, of the total issue, as compared with 72.9
per cent, in the case of the First Liberty Loan.

The composition of the payment was as follows5 :

Cash ..............................$ 841,000,000

Credit .......................... 1,477,000,000

Certificates ...................... 469,000,000

Total .......................$2,787,000,000

The striking fact in the payment was the rela-
tively small use of certificates and the correspond-
ingly large use of credit. This was not apparently
in consequence of any formal administrative re-
straint. Subscribers were permitted to make pay-
ment on November 15, 1917, in certificates of any
maturity; whereas, for the later installments of
December 15, 1917, and January 15, 1918, only the
maturities of the corresponding dates were eligible.

The minor role played by certificates becomes even
more evident if the composition of the first install-
ment payments in the case of the two Liberty Loans

be compared:	First Loan	Second
	(per centum)	
Certificates 			 38	17
Cash 			30
Credit 			5'3
	100	100

It thus appears that the relative parts of the two
modes of payment underwent inverse change, the
percentage of credit payment doubling and that of
certificate payment being cut in half. The extent to

5	Federal Reserve Bulletin, December, 1917, p. 919.