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 in 
crease. 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 par 
ticular 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 an 
ticipation of the First Liberty Loan, and immedi 
ately 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 Gov 
ernments, practically exhausting the certificate pro 
ceeds. 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 begin 
ning of the calendar year.