﻿THE PRICE LEVEL

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emitted $4,659,820,000 certificates of anticipation of
the Fourth Liberty Loan and during which there
were liquidated the outstanding parts of two issues
in anticipation of the Third Liberty Loan of the
original nominal aggregate of $1,069,053,000. The
deposits and investments of the “ member banks in
leading cities ” at the corresponding dates were as
follows:

June 28	October 4

Number of reporting banks........	705	749

Net demand deposits on which re-
serve is computed ............... $9,117,565,000 $9,521,346,000

Government deposits ............. 1,211,992,000	693,650,000

United States certificates of in-
debtedness ...................... 621,868,000.1,746,135,000

Loans secured by U. S. bonds and

certificates .................. 498,830,000	493,164,000

All other loans and investments. 10,539,986,000 10,521,821,000

Of the certificates issued by the Treasury within
these three months, the banks retained out of their
allotments $1,124,267,000. This investment was
unaccompanied by any reduction of commercial de-
posits, the volume of demand deposits subject to re-
serve requirements actually increasing $403,781,000.
Nor were such additional deposits loan-created, the
banks’ loans and other investments showing a slight
reduction. A substantial amount of the certificate
borrowings, as well as of the earlier government
deposits, would seem again to have been “ dis-
persed ” and to have reappeared in the increased
volume of commercial deposits and money in cir-
culation.

The effects of the redemption period, extending
from April 22 to July 18, 1918, within which the six