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WAR BORROWING

prescribe. The reserve requirements of the na-
tional banks and the Federal Reserve System were
as before made inapplicable to government deposits
in designated depositaries.23

The administrative regulations subsequently is-
sued24 followed in the main the procedure used in
connection with the First Liberty Loan. Application
for government deposits was to be made by any in-
corporated bank or trust company in the United
States to the Federal Reserve Bank of the district,
and such applicant bank upon the recommendation
of the Federal Reserve Bank might be designated by
the Secretary of the Treasury as an approved de-
positary. In fixing the maximum amount of de-
posits sought, the applicant bank “ should be guided
by the amount of the payments which it expects to
have to make, for itself and its customers, on ac-
count of allotments of such bonds and certificates ”
as well as by any statutory limitations upon the
amount of deposits receivable by any one depositary.
In making application, only the maximum amount
of the desired deposit was required to be set forth
and not the further particulars as to the amount of
the prospective subscription and the amount and
composition of the first installment payment — as
required in the First Liberty Loan. As collateral
security for such deposits, eight classes of securities
were enumerated somewhat broader in scope but
subject to approval and valuation by the several

23	Section 8.

24	Department Circular of October 6, 1917 (in “Report of
Comptroller of the Currency, 1917.” Exhibit I).