68

WAR  BORROWING

the  Treasury  as  to  the  relative  amount  permitted
of  such  credit  payment.
Both  as  to  the  total  subscription  payments  and,
more  important,  as  to  the  aggregate  volume  of  certificates ­
  at  the  time  outstanding,  certificates  of  indebtedness ­
  have  been  used  to  a  relatively  minor  extent ­
  in  the  banks’  payments  for  bond  subscriptions.
In  the  flotation  of  the  First  Liberty  Loan,  64  per
cent,  of  the  then  outstanding  and  available  certificates ­
  was  employed  in  the  payments  made  on  the
first  installment  date;  in  the  Second  Liberty  Loan
only  20  per  cent,  was  so  tendered,  in  the  Third  Liberty ­
  Loan  32  per  cent,  was  used,  and  in  the  Fourth
Liberty  Loan  some  37  per  cent. 45 :

Loan  Certificates
anticipation  used  in  first
Certificates  installment  Per
Liberty  Loan  outstanding  payment  Centum
First  $  868,205,000  $554,500,000  64
Second  2,320,495,000  469,000,000  20
Third  2,612,085,500  823,332,600  32
Fourth  4,659,820,000  1.738,960,950  37

Reasonable  allowance  made  for  certificates  held
by  subscribing  banks  in  excess  of  their  subscriptions, ­
  for  certificates  bought  by  individuals,  corporations ­
  and  non-subscribing  banks  for  investment
purposes,  and  for  certificates  used  in  later  installment ­
  payments  —  it  still  appears  true  that  in  effecting ­
  settlement  for  Liberty  Loan  subscriptions  the
banks  of  the  country  elected  and  were  permitted  to
make  large  use  of  payment  by  credit  and  to  retain  a
substantial  amount  of  their  certificates  as  short-46

  To  December  19,  1918.