134

WAR  BORROWING

prescribe.  The  reserve  requirements  of  the  national ­
  banks  and  the  Federal  Reserve  System  were
as  before  made  inapplicable  to  government  deposits
in  designated  depositaries. 23
The  administrative  regulations  subsequently  issued ­
 24  followed  in  the  main  the  procedure  used  in
connection  with  the  First  Liberty  Loan.  Application
for  government  deposits  was  to  be  made  by  any  incorporated ­
  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  depositary. ­
  In  fixing  the  maximum  amount  of  deposits ­
  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  account ­
  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).