﻿190

WAR BORROWING

certificate issues in anticipation of the Third Liberty
Loan matured, cannot be as satisfactorily traced
from the data available. The first period of the span
includes the installment payments of the Third Lib-
erty Loan, while the second period overlaps the re-
sumption of certificate borrowing in anticipation of
the Fourth Liberty Loan. If, in order to eliminate
the first complication, the first two issues be omitted
and the redemption period be narrowed to May 28
-July 18 we still have to do with the facts that
within this period three issues of Third Liberty
Loan certificates to the nominal amount of $1,612,-
085,500 matured, and two issues of Fourth Liberty
Loan certificates to the nominal amount of $1,599,-
084,500 were emitted, making a net reduction of
$13,001,000. In addition six issues of tax-antici-
pation certificates to the nominal amount of $1,624,-
403,500 matured on June 25, 1918.

Within the seven weeks the loans and investments
of the banks underwent the following changes:

May 31	July 19

Number of reporting banks........	689	718

Net demand deposits on which re-
serve is computed............... 19,025,495,000	$8,919,235,000

Government deposits ................ 909,312,000	602,803,000

United States Certificates of in-
debtedness owned ................ 1,041,878,000	527,461,000

Loans secured by U. S. bonds and

certificates .................... 512,962,000	473,616,000

Other loans and investments...... 10,004,162,000	10,535,197,000

Redemption and distribution of certificates are
here reflected in a decline of the banks’ holdings of
certificates of $514,417,000 and a reduction of gov-
ernment deposits of $306,509,000. No part of the