62

WAR  BORROW  UNKjt

In  the  absorption  of  the  certificates  for  themselves
and  their  customers,  the  banks  of  the  New  York
District  have  taken  the  leading  part  and  this  tendency ­
  has  continued  with  the  progress  of  the  Treasury’s ­
  short-term  borrowing.  Of  the  $868,205,000
certificates  issued  in  anticipation  of  the  First  Liberty ­
  Loan,  the  banks  of  the  New  York  District
took  $459,962,000  or  53  per  cent.;  and  of  the  $2,-320,493,000,
  issued  in  anticipation  of  the  Second
Liberty  Loan,  $1,467,543,000  or  63  per  cent,  was
so  taken.  Of  the  final  issue  of  this  series—  (11)
$685,296,000  bearing  date  of  October  24,  1917  —
the  New  York  banks  took  no  less  than  $543,683,000
or  79  per  cent.,  and  even  of  the  next  succeeding
issue  —  the  first  of  the  series  of  19x8  tax  anticipation ­
  issues—  (12)  $691,872,000  bearing  date  of
November  30,  1917  —  $494,070,500  or  72  per  cent,
was  so  taken.  With  the  systematic  efforts  of  the
Treasury  to  establish  a  wider  subscription  basis  for
the  results  of  valuable  inquiries,  along  the  lines  laid  down
above,  made  by  Mr.  Frederick  H.  Curtiss,  Chairman  of  the
Federal  Reserve  Bank  of  Boston,  as  to  the  absorption  of  certificates ­
  of  indebtedness  in  the  New  England  District.  It  appears ­
  that  the  assumption  made  in  the  foregoing  computation
that  certificates  have  been  taken  by  the  trust  companies  in  the
same  proportion  as  by  the  national  banks  does  not  hold,  at
least  in  this  District,  with  respect  to  more  recent  certificate
issues.  To  the  certificates  issued  in  anticipation  of  the  Third
Liberty  Loan  the  national  banks  in  the  District  subscribed
11.94  per  cent,  of  their  total  resources,  while  trust  companies
took  only  7.13  per  cent.  To  the  certificates  in  anticipation  of
the  Fourth  Liberty  Loan  the  national  banks  subscribed  15-33
per  cent,  of  their  resources  and  the  trust  companies  only  11.97
per  cent.  It  appears  further  that  of  the  certificates  sold  to
banks  and  trust  companies  in  the  District  between  June  25,
and  August  31,  1918,  there  were  retained  by  such  institutions
up  to  the  latter  date,  approximately  41.9  per  cent,  of  the
amount  .taken.