THE  PRICE  LEVEL

189

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  reserve ­
  is  computed  $9,117,565,000  $9,521,346,000
Government  deposits  1,211,992,000  693,650,000
United  States  certificates  of  indebtedness ­
  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  deposits, ­
  the  volume  of  demand  deposits  subject  to  reserve ­
  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  “  dispersed ­
  ”  and  to  have  reappeared  in  the  increased
volume  of  commercial  deposits  and  money  in  circulation. ­

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