3 6 
WAR BORROWING 
long delayed. Early in August the Treasury bal 
ance had fallen below $300,000,000, with substan 
tial requirements in sight and no extraordinary 
revenue available. 
In the six weeks elapsing until the passage of the 
Second Liberty Loan act, the Treasury allotted 
three issues of certificates: $300,000,000 on August 
9, payable November 15; $250,000,000 on August 
28, payable November 30; and $300,000,000 on 
September 17, payable on December 15. The inter 
est rate of the new issues was raised to three and a 
half per cent., corresponding to the yield of the 
First Liberty Loan. The certificates were specifi 
cally made acceptable at par and interest if ten 
dered in payment of the first installment on account 
of the Second Liberty Loan, and each series was 
subject to redemption as a whole upon ten days 
notice on or after the date set for the payment of 
such first installment. 
In mode of issue, the emission of August 9 was 
identical with those that had preceded. Payments 
for certificates allotted were made by subscribing 
banks to the Federal Reserve Banks in cash or 
current exchange, and the proceeds were there 
after redeposited with subscribing banks duly quali 
fied as government depositaries. In connection 
with the flotation of the First Liberty Loan, the 
Treasury “ to avoid, even temporarily, a derange 
ment of the money market ” had on May 16, 1917, 
authorized banks and trust companies having pay 
ments to make on account of subscriptions for 
$100,000 or more bonds, and duly qualified as 
public depositaries to make payment upon such