THE  PAST

5

tify  the  amplest  financial  provision—is  a  proper
time  to  review  our  borrowing  policy  and  to  study  its
effects,  fiscal,  economic  and  social.
A  notable  feature  of  the  present  war  financing  of
the  United  States  has  been  the  large  part  played  by
Treasury  certificates  of  indebtedness.  In  outright
volume  the  gross  amount  of  such  certificates  thus
far  [November  i,  1918]  issued  has  been  greater  than
the  principal  sum  of  the  first  three  Liberty  Loans
and  will  soon  exceed  that  of  the  first  four.  Emitted
in  short  maturities,  the  actual  amount  of  certificates
at  any  time  outstanding  —  now  authorized  to  a  maximum ­
  of  $8,000,000,000  —  has,  with  a  single  brief
exception  (July  30-August  9,  1917)  been  considerable ­
  since  our  first  entry  into  the  war,  and  since
August,  1917,  has  never  been  less,  at  the  close  of
any  month,  than  $1,250,000,000,  rising  as  high  as
$3)936,339,500  (April  30,  1918),  with  an  amount
nominally  outstanding  on  September  30,  1918,  of
$4,ioo,ooo,ooo. 3  The  Treasury  has  made  use  of
such  certificates  to  anticipate  the  yield  of  war  loans
and  war  taxes  for  national  defense  and  for  Allies’
credits,  and  has  prepared  for  continued  reliance
upon  the  same  expedient.  Finally  the  certificates
have  been  deemed  capable  of  exerting  important
influence  upon  the  money  market  and  upon  the  price
3  Monthly  “  Financial  Statement  of  the  United  States  Government,” ­
  formerly  issued  as  “  Statement  of  the  Public  Debt  ”
(Division  of  Bookkeeping  and  Warrants,  Treasury  Department). ­
  No  statements  were  issued  for  July,  August,  September ­
  and  October,  1917,  and  for  these  months,  as  well  as  for
September,  1918,  the  nominal  aggregates  of  the  outstanding
issues  have  here  been  used.