56

WAR  BORROWING

tion  of  the  first  two  issues  and  the  increased  returns ­
  from  war  savings  certificates  and  from  income ­
  and  excess  profits  taxes,  but  added:  35  “  This,
however,  is  only  a  minimum  amount  and  those  institutions ­
  which  have  made  arrangements  to  subscribe ­
  their  share  on  the  basis  of  an  offering  of
$750,000,000  will  be  free  to  do  so.”  In  addition  to
the  specific  reasons  set  forth  it  is  probable  that  the
reduction  was  in  a  measure  due  to  the  modified
policy  of  the  Treasury  with  respect  to  its  working
balance,  noticeable  after  mid-August.
(G)  On  August  16,  1918,  the  Secretary  of  the
Treasury,  in  accordance  with  the  announced  program, ­
  offered  for  subscription  at  par  and  accrued
interest,  the  “  tax  series  of  1919  ”  certificates  of  indebtedness. ­
  The  issue  was  dated  August  20,  1918,
bore  interest  at  the  rate  of  four  per  cent,  and  matured ­
  July  15,  1919.  To  avoid  the  necessity  of  successive ­
  issues  or  the  inconvenient  accumulation  of
accrued  interest,  provision  was  made  for  the  bimonthly ­
  payment  of  interest.  In  all  other  technical
particulars  the  issue  corresponded  with  the  1918
tax  anticipation  series.  The  offering  was  made
without  limit  of  amount;  but  the  Treasury  reserved
as  usual  the  right  to  reject  any  subscription  and
to  allot  less  than  the  amount  of  certificates  applied
for  and  to  close  the  subscription  at  any  time  without ­
  notice.  As  fiscal  agents  of  the  United  States,
Federal  Reserve  Banks  were  to  receive  subscriptions
and  to  make  allotment  in  full  in  the  order  of  the  receipt ­
  of  applications  until  further  notice.  As  be-35
  Federal  Reserve  Bulletin,  August,  1918,  p.  699.