﻿92

WAR BORROWING

rowing. Total ordinary disbursements for June
were notably greater than for May — $1,263,914,-
905 as compared with $1,068,203,026; but advances
to the Allies were less almost by the same amount —
$242,700,000 as compared with $424,000,000.*1
There was, however, seeming reluctance on the part
of the Treasury to tolerate any considerable re-
duction in its net balance or indeed to modify the
policy of progressive increase, and preparations
were made for further anticipatory borrowing —
thus terminating the third cycle of the Treasury’s
operations.

IV

On June 12, 1918, announcement was made by
the Treasury of the program of fortnightly cer-
tificate borrowing in anticipation of the Fourth
Liberty Loan. On June 25, with the net balance
standing at $1,531,894,060 the first of such issues
was allotted to the amount of $839,646,500. In
the succeeding three months, six additional issues
were emitted to an aggregate amount (including
the issue of June 25) of $4,659,820,000. In ad-
dition, a series of certificates in anticipation of 1919
income and excess profits taxes were placed on con-
tinuing sale on August 20, and an appreciable
amount allotted up to October 1, 1918.

These operations were attended by the same strik-
ing results noted in connection with the certificate
borrowing in anticipation of the earlier Liberty

11	“ Monthly Summary of Foreign Commerce of the United
States,” August, 1918, p. 95.