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WAR BORROWING

date the payment on bond subscriptions was due at
Federal Reserve Banks. This did not apply to
payment for bonds for advance delivery, as to which
payment by credit was permitted. On the other
hand “ to reduce the float as far as practicable,”
any qualified depositary might make payment by
credit of amounts which its correspondent banks
or trust companies would otherwise pay by check
upon the depositary, and this might be done whether
the depositary and the correspondent were located
in the same District or, after telegraphic advice and
ample notice, in different Districts.

On May 29, 1918, the foregoing provisions were
extended in so far as applicable, to the deposit with
qualified banks of money arising from the payment
of 1918 income and excess profits taxes. Such
payments might not be made by credit; but in lieu
thereof the Treasury announced that receipts would
be deposited “ as nearly as may be,— simultane-
ously with the payment of checks drawn upon
such depositaries, respectively, in payment of such
taxes,” and “ as nearly as may be proportionately,
having regard to the following three determining
factors ”; (1) the actual withdrawals for tax pay-
ments from the respective depositaries, (2) the vol-
ume of tax anticipation certificates sold to and
through such depositaries, and (3) the amount for
which such depositaries respectively should be quali-
fied in excess of existing deposits.27

The certificate borrowing in anticipation of the
Fourth Liberty Loan was carried out in conformity

27	Treasury Department Circular No. 92, amended as of May
29, 1918.