8 4 
WAR BORROWING 
approximately, $2,787,000,000 — constituting 73 
per cent, of the total issue, as compared with 72.9 
per cent, in the case of the First Liberty Loan. 
The composition of the payment was as follows 5 : 
Cash $ 841,000,000 
Credit 1,477,000,000 
Certificates 469,000,000 
Total $2,787,000,000 
The striking fact in the payment was the rela 
tively small use of certificates and the correspond 
ingly large use of credit. This was not apparently 
in consequence of any formal administrative re 
straint. Subscribers were permitted to make pay 
ment on November 15, 1917, in certificates of any 
maturity; whereas, for the later installments of 
December 15, 1917, and January 15, 1918, only the 
maturities of the corresponding dates were eligible. 
The minor role played by certificates becomes even 
more evident if the composition of the first install 
ment payments in the case of the two Liberty Loans 
be compared: 
First Loan 
Second 
(per centum) 
Certificates 
38 
17 
Cash 
30 
Credit 
5'3 
100 
100 
It thus appears that the relative parts of the two 
modes of payment underwent inverse change, the 
percentage of credit payment doubling and that of 
certificate payment being cut in half. The extent to 
5 Federal Reserve Bulletin, December, 1917, p. 919.