THE  TREASURY  77

Federal  Reserve  Banks  by  an  issue  of  ninety  days,
two  per  cent,  certificates  of  indebtedness.
In  the  first  weeks  of  our  actual  participation  in
the  war,  the  operations  of  the  Treasury  presented
no  unusual  features.  Disbursements  —  peace  and
war  —  mounted  slowly,  and  the  revenue  trickling
from  war  taxation  showed  signs  of  appreciable  increase. ­
  The  immediate  problem  loomed  up  from
another  quarter  —  credit  advances  to  the  Allies.
The  First  Liberty  Loan  act  had  appropriated  the
huge  sum  of  $3,000,000,000  nominally  “  out  of  any
money  in  the  Treasury  not  otherwise  appropriated,”
but  in  reality  from  out  of  the  proceeds  of  bonds  and
certificates  therein  authorized  to  be  expended  in
so  far  as  necessary  in  the  purchase  of  the  obligations
of  foreign  governments.  The  requirements  of
Great  Britain  as  to  “  dollar  credits  ”  were  in  particular ­
  urgent,  and  the  necessities  of  France  and
Italy  were  only  a  degree  less  pressing.
On  April  21,  1917,  the  Treasury  offered  the
initial  issue  of  certificates  of  indebtedness  in  anticipation ­
  of  the  First  Liberty  Loan,  and  immediately ­
  upon  the  passage  of  the  Loan  act  three  days
later  made  allotments  to  the  amount  of  $268,205,-000.
  Of  the  proceeds  $200,000,000  was  at  once
advanced  to  the  British  Government  and  ten  days
later  $125,000,000  to  the  French  and  Italian  Governments, ­
  practically  exhausting  the  certificate  proceeds. ­
  In  reflection,  the  Treasury  balance  moved
from  $83,617,332  on  April  24  to  $165,791,262  on
May  2,  dropping  back  thereafter  to  $54,757,198  on
May  9  —  the  lowest  point  touched  since  the  beginning ­
  of  the  calendar  year.