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WAR BORROWING

the loan, to acquire “ as and when offered ” Treas-
ury certificates of indebtedness “ to as large an
amount as practicable and at least equal to 50 per
cent, of the payments which they will have to make
from time to time on account of subscriptions, and
that they utilize such certificates of indebtedness in
making payment.” To encourage banks to make at
least 50 per cent, of their payments in certificates
of indebtedness, the Treasury announced that gov-
ernment deposits would thereafter be readjusted
with respect to those using more or less certificates
than this percentage, so as to remain in proportion
with the amount of non-credit items actually used,
provided that the amount of such deposits should
not in any event exceed the cash and certificates
used.

Beyond this, banks and trust companies duly
qualified as depositaries having payments to make
on account of subscriptions for $100,000 or more
bonds might make payment upon such subscriptions
on June 28, 1917, as to any amount not paid in cer-
tificates of indebtedness “ by credit on their books
to the account of the Treasurer of the United
States.” The amounts so credited were to be al-
lowed two per cent, interest by the depositaries sub-
ject to withdrawal from time to time when and as
required. The Treasury further announced that
the limitation of the payment by credit plan to in-
stitutions subscribing $100,000 or more was made
necessary by the brief time prior to July 2, 1917,
for passing upon depositary qualifications, but
added that as soon thereafter as practicable the pro-
ceeds of the loan would be redeposited with qualified