WAR  BORROWING

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from  $50,000,000  on  April  24,  to  $918,205,000  on
June  9;  remained  fixed  at  $918,205,000  from  June
9,  to  June  29,  and  declined  from  June  29,  until  completely ­
  redeemed  by  July  30.  In  the  second  cycle,
resort  was  had  again  to  certificates  on  August  9.
The  amount  issued  rose  uninterruptedly  from  $300,-000,000
  to  $2,320,493,000  on  October  24;  remained
fixed  at  that  amount  from  October  24  to  November
15,  and  declined  with  maturity  and  redemption  of
issues  from  November  15  to  December  15.  In  the
third  cycle,  the  volume  of  certificates  rose  from
$400,000,000  on  January  22,  1918,  to  $3,012,085,-500
  on  April  22,  1918;  remained  constant  from
April  23  to  May  9,  1918,  at  $2,612,085,500;  and  declined ­
  thereafter  until  complete  maturity  on  July  18,
1918,  overlapping  the  resumption  of  certificate  borrowing ­
  in  anticipation  of  the  Fourth  Liberty  Loan.
In  the  fourth  cycle,  certificate  borrowing  began  on
June  25,  1918,  with  an  issue  of  $839,646,500  and
continued  with  fortnightly  issues  until  October  1,
1918,  at  which  time  there  had  been  emitted  $4,659,-820,000
  with  maturities  extending  up  to  January  30,
1919.  There  were  no  emissions  immediately  before
nor  during  the  flotation  of  the  Fourth  Liberty  Loan
in  October,  1918,  after  which  followed  the  usual
funding  and  redemption.
The  volume  of  government  deposits  in  the  banks
and  trust  companies  designated  as  special  depositaries ­
  and  in  the  Federal  Reserve  Banks  reflects  the
course  of  certificate  borrowing,  with  the  modification
at  intervals  due  to  Liberty  Loan  and  income  and
excess  profits  tax  payments  and  to  the  progressive
increase  of  withdrawals  for  public  expenditure  and