THE  PRESENT

47

at  large  was  characterized  by  the  Treasury  as  “  distinctly ­
  disappointing.”  Only  two  districts,  New
York  and  Kansas  City,  exceeded  their  allotment,
and  but  one  other,  Minneapolis,  equaled  its  quota.
The  entire  issue  of  $500,000,000  was  eventually
subscribed,  but  this  result  was  only  made  possible
by  the  twelfth  hour  action  of  the  larger  banks  in
financial  centers,  notably  New  York,  in  taking  more
than  their  respective  quotas. 25
In  preparation  for  the  succeeding  issue  of  February ­
  22,  the  Treasury  redoubled  its  efforts.  The
distribution  of  quotas  of  the  several  Federal  Reserve ­
  Districts  was  modified;  possible  misapprehension ­
  as  to  the  extent  of  each  bank’s  expected  participation ­
  was  clarified;  the  minimum  denomination
of  the  certificates  was  reduced  from  $1,000  to  $500
and  the  interest  rate  of  the  certificates  was  increased
to  four  and  one  half  per  cent.  —  with  the  assurance
that  there  would  be  no  further  increase  in  connection ­
  with  certificate  issues  in  anticipation  of  the
Third  Liberty  Loan.  A  telegram  was  sent  by  the
Treasury  to  every  bank  and  trust  company  which
had  not  responded  to  the  offering  of  February  8,
and  this  solicitation  was  followed  up  through  the
organization  of  the  Federal  Reserve  Banks,  with
the  intention  that  “  the  number  of  subscribers  for
this  coming  issue  shall  be  again  doubled,  and  approximately ­
  every  bank  and  trust  company  in  the
United  States  shall  be  upon  the  roll.”  The  Treasury ­
  announcement  of  the  offering  of  the  issue
concluded  with  the  appeal;  “  This  is  a  patriotic
duty  which  is  set  for  the  banks  and  trust  companies
25  Federal  Reserve  Bulletin,  March,  1918,  pp.  153-4,  162.