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WAR BORROWING

Although the foregoing facilities were extended
only to banks subscribing for $100,000 or more, the
Treasury regarded it as “entirely admissible for
banks and trust companies in any region or regions,
by voluntary association among themselves to pool
their subscriptions and payments ” and to designate
one of their number through which subscriptions
should be made, and which should be, as between it-
self and the United States, regarded as the respon-
sible subscriber and depositary. The Treasury re-
stated its intention to in any event deposit funds
with banks subscribing less than $100,000 as soon
after July 2 as practicable, “ as nearly as may be
in proportion to the payments of each in cash and
certificates of indebtedness upon subscriptions to
the Liberty Loan.” Under this authority, 1251
national and 780 state banks and trust companies
made application and were designated as deposi-
taries of public moneys, becoming thereby qualified
to make payment by credit for bonds of the First
Liberty Loan and to receive cash deposits of funds
realized from the sale of bonds.21

Certificate borrowing was resumed in anticipation
of the Second Liberty Loan without change in mode
of payment or manner of deposit, other than that
the number of special depositaries was further in-
creased by 83 national and 72 state banks and trust
companies which subscribed for the certificates of
August 9, 1917. But with the next succeeding issue
(August 28, 1917) payment by credit was generally
extended, as we have seen, by administrative toler-
ance to certificate borrowing and this device con-

81 “ Report of the Secretary of the Treasury, 1917,” p. 25.