﻿IOO

WAR BORROWING

going, in the nature of periodic but progressive in-
crease. Reduced to graphic form, it represents the
appearance of a series of irregular mounting
plateaus — the high point of each of which has been
less than the low point of the one next succeeding.
The stages have corresponded with the four cycles
of our financing — the central incident of each of
which, it will be remembered, has been a loan flota-
tion. As long as payment in full or over-payment
of installments of bond subscriptions is permitted
a swollen balance is perhaps inevitable during and
immediately after the period of flotation. The op-
portunity for close adjustment of borrowings to re-
quirements presents itself during the first stage in
the cycle — the period of certificate borrowing.
But even here the phenomenon of a mounting bal-
ance in our war financing has been pronounced.
From April 25 to June 8, 1917 — the first period of
certificate borrowing — the average daily balance
was $179,579,613 with $135,099,128 on April 25,
as the low (omitting May 5-9) and $263,888,100 on
May 12 as the high point. From August 9 to
October 24, 1917 — the second period of certificate
borrowing — the average daily balance was $453,-
748,384, with $285,283,572 on October 17, as the
low and $656,349,914 on October 18 as the high
point. From January 3 to April 22, 1918 — the
third period of certificate borrowing — the average
daily balance was $926,391,004, with $653,449,458
on January 15 as the low and $1,196,811,694 on
March 5, 1918, as the high point. From June 25 to
August 31, 1918, the fourth period of certificate
borrowing up to the date at which the policy of the