88

WAR  BORROWING

allotted.  This  procedure  was  repeated  a  month
later  in  a  further  series  dated  January  2,  1918,  the
subscriptions  to  which  aggregated  $491,822,500.
The  immediate  effect  was  to  aggravate  the
Treasury  plethora  for  a  season.  The  net  balance
had  receded  from  the  high  point  $1,968,484,725  on
November  23  to  $1,837,419,886  on  November  30.
But  on  the  following  day,  December  1,  1917,  with
the  receipt  of  the  proceeds  of  the  new  certificates
it  attained  the  record  height  of  $2,515,471,407.  In
the  next  two  weeks  and  a  half,  the  outstanding
parts  of  all  issues  of  certificates  put  out  in  anticipation ­
  of  the  Second  Liberty  Loan  were  called  for
redemption  or  paid  off  upon  maturity,  to  an
aggregate  amount  of  $  1,337,960,440;  there  was
advanced  to  the  Allies  some  $317,500,000;  and  there
was  disbursed  in  ordinary  expenditure  $403,138,459.
On  December  19,  1917,  the  available  balance  was
back  again  at  $775,899,891.  But  on  the  other  hand
the  Treasury  was  for  the  first  time  since  July  free
from  all  short-term  obligations,  other  than  the  new
series  of  certificates  issued  in  anticipation  of  the  war
taxes.
For  the  next  month  receipts  from  the  January
issue  of  tax  anticipation  certificates,  together  with
the  final  installment  of  the  Liberty  Loan  payable
on  January  15,  1917,  were  enough  with  ordinary
revenues  to  meet  the  Treasury’s  requirements.  On
January  22,  1917,  the  Treasury  balance  was  $763,-830,030,
  having  touched  $653,449,458  as  the  lowpoint
  in  the  interval  —  and  the  second  cycle  in  our
war  financing  may  be  said,  with  this  downward  tendency, ­
  to  have  been  completed.