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  Liberty ­
  Loan,  while  the  second  period  overlaps  the  resumption ­
  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-anticipation ­
  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  reserve ­
  is  computed  19,025,495,000  $8,919,235,000
Government  deposits  909,312,000  602,803,000
United  States  Certificates  of  indebtedness ­
  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  government ­
  deposits  of  $306,509,000.  No  part  of  the