40

WAR  BORROWING

profits  and  war  profits  taxes,—  all  of  this  with  the
qualification  that  any  interest  from  certificate  holdings ­
  not  in  excess  of  $5000  should  be  exempt  from
the  latter  group  of  taxes.
The  short-term  borrowing  of  the  Treasury  was
resumed  under  this  authorization  and  in  conformity
with  its  terms.  Three  additional  series  of  certificates ­
  were  issued,  somewhat  less  regular  in  interval
and  less  uniform  in  nominal  amount  than  the  preceding ­
  issues.  Of  these  the  first  —  offered  the  day
after  the  Loan  act  had  become  law  —  was  for
$400,000,000,  dated  September  26,  and  payable  December ­
  15,  on  which  date  the  third  installment  of
the  bond  subscription  payments  became  due.  The
other  two  issues  were  emitted  a  month  later  in  quick
succession  —  October  18  to  mature  November  22,
and  October  24  to  mature  December  15,  respectively. ­
  Instead  of  being  limited  to  a  specified
amount,  the  issue  of  October  18  was  offered  “  to  an
amount  of  not  less  than  $300,000,000  ”  and  there
was  actually  allotted  $385,197,000.  The  issue  of  October ­
  24  was  offered  without  limitation  of  any  kind,
and  the  amount  actually  placed  in  the  five  days  in
which  subscriptions  were  received  reached  the  large
sum  of  $685,296,000  —  obviating  the  necessity  of
further 1  temporary  borrowing  before  the  proceeds
of  the  Second  Liberty  Loan  became  available.
It  thus  appears  that  in  the  three  and  one-half
months  intervening  between  the  approximate  exhaustion ­
  of  the  proceeds  of  the  First  Liberty  Loan
early  in  August  up  to  the  first  availability  of  funds
from  the  Second  Liberty  Loan  in  mid-November
the  extraordinary  requirements  of  the  Treasury