THE  TREASURY

81

This  gap  makes  it  impossible  to  follow  in  detail  the
operations  of  the  Treasury  in  the  weeks  immediately
following  the  Loan  flotation.  The  consolidated
statement  for  the  interval  (July  2—  July  23)
shows,  however,  that  during  this  period  there  was
advanced  to  the  Allies  $375,000,000  and  expended
in  ordinary  disbursements  $157,149,769.
By  July  24,  1917,  the  Treasury  balance  stood  at
$494,394,365.  of  which  $158,296,453  was  in  the
Federal  Reserve  Banks  and  $320,264,871  in  the
special  depositaries  on  account  of  Loan  receipts.
Three  installments  on  account  of  the  First  Liberty
Loan  remained  unpaid,  nominally  to  the  amount  of
$541,000,000;  but  of  this  only  20  per  cent,  was  due
on  July  30,  30  per  cent,  being  payable  on  August
15,  and  30  per  cent,  on  August  30.  Revenue  from
taxation,  even  with  the  important  schedules  of  the
war  tax  act  then  in  operation,  offered  no  adequate
relief.  The  1917  income  tax  payments  were  largely
completed  by  June  22,  and  the  total  ordinary  receipts ­
  of  the  Treasury  were  actually  less  in  July
and  August  than  in  the  months  immediately  following ­
  the  declaration  of  war.  On  the  other  hand,  a
definite  obligation  lay  immediately  ahead  in  the
maturity  on  July  30  of  the  outstanding  parts  of  the
certificate  issues  of  May  25  and  June  8,  and  between ­
  July  24  and  August  14  the  Treasury  disbursed
$265,648,579  for  this  purpose.
The  graver  problems  of  the  Treasury  had  to  do
with  the  huge  financial  requirements  of  the  Allies
and  with  our  own  swiftly  mounting  expenditures
for  national  defense.  Of  the  two  demands,  the
Allies’  loans  were  the  larger  absolutely  —  beginning