54

WAR  BORROWING

each  issue  in  pursuance  of  this  program,  this  amount
being  estimated  as  “  roughly  to  equal  two  and  onehalf
  per  cent,  of  the  gross  resources  of  each  bank
and  trust  company  for  every  period  of  two  weeks
or  a  total  of  five  per  cent,  monthly”—  as  compared
with  a  total  of  four  per  cent,  monthly  for  the  Third
Liberty  Loan  issues.
Announcement 33  was  also  made  of  the  contemplated ­
  issue  “  at  a  convenient  and  favorable  period
during  the  summer  ”  of  certificates  in  anticipation
of  the  June,  1919,  income  and  excess  profits  taxes
“  of  an  amount  yet  to  be  determined  perhaps  $2,-000,000,000
  ”  of  suitable  maturities  for  tax  payments. ­
  To  the  extent  that  such  tax  anticipation
certificates  were  sold,  an  equivalent  reduction  in  the
amounts  of  the  fortnightly  loan  anticipation  issues
or  of  the  total  number  of  such  offerings  might  be
expected.  All  banks  were  enjoined  to  “  make  arrangements ­
  promptly  of  such  a  character  that  no  delay ­
  will  be  experienced  in  the  sale  and  distribution
of  Treasury  Certificates  of  both  issues,”  to  the  end
that  “  no  patriotic  banker  in  the  United  States  will
fail  to  do  his  full  meed  of  essential  service  to  his
country  and  to  her  noble  defenders.”  34
The  program  was  carried  out  without  important
33  Text  in  Commercial  and  Financial  Chronicle,  June  22,
1918,  p.  2607.
M  For  the  promptness  and  vigor  with  which  this  appeal  was
spread  see,  for  example,  the  letter  sent  under  date  of  August
26,  1918,  to  the  banks  in  the  State  of  Utah  by  the  banking
commissioner  of  that  State  transmitting  resolutions  passed  by
the  Salt  Lake  Clearing  House  Association,  wherein  each
member  institution  formally  agreed  to  purchase  the  full  allotment ­
  of  certificates  as  and  when  offered  (Federal  Reserve
Bulletin,  October,  1918,  pp.  936-7).