THE  PRESENT

35

The  nominal  aggregate  of  the  four  issues  in  anticipation ­
  of  the  First  Liberty  Loan  was  $868,205,-000.
  This  amount  remained  outstanding  until  June
30,  when  the  issue  of  April  25  matured  leaving  the
nominal  amount  outstanding  $600,000,000.  During ­
  the  succeeding  two  months,  the  Treasury’s  needs
were  supplied  by  the  unexpectedly  large  overpayment ­
  in  settlement  of  the  early  Liberty  Loan  subscription ­
  installments.  On  July  30,  1917,  the  last
of  the  outstanding  certificates  matured  and  were
paid  off,  leaving  the  Treasury  free  from  certificate
indebtedness.
(C)  The  interval  was  brief.  Ten  days  later,
on  August  9,  1917,  short-term  borrowing,  nominally
in  anticipation  of  a  Second  Liberty  Loan,  was  resumed. ­
  The  intention  of  the  Treasury  as  to  the
near  future  was  set  forth  in  detail:
“  It  is  expected  that  certificates  of  indebtedness  will  be
issued  from  time  to  time  somewhat  in  advance  of  the
immediate  requirements  of  the  United  States.  The  primary ­
  object  of  this  is  to  avoid  the  financial  stress  which
would  result  from  the  concentration  of  the  payments  for
a  great  bond  issue  upon  a  single  day  (which  can  not  be
avoided  wholly  by  provision  for  payment  by  installments
as  a  great  proportion  of  subscribers  prefer  to  make  payment ­
  in  full  on  one  day  as  a  matter  of  convenience.)  ” 14
Although  the  avoidance  of  monetary  strain  in
connection  with  the  loan  flotation  was  thus  emphasized ­
  as  the  purpose  of  the  renewed  certificate
borrowing,  it  is  probable  that  the  provision  of  additional ­
  funds  could  not  in  any  event  have  been
14  Treasury  statement  of  August  19,  1917,  in  Federal  Reserve ­
  Bulletin,  September,  1917,  p.  664.