THE  TREASURY

89

III
On  January  22,  1918,  the  Treasury  entered  upon
the  third  cycle  of  its  war  financing  —  short-term
borrowings  in  anticipation  of  a  Third  Liberty  Loan.
The  characteristic  of  the  first  phase,  as  compared
with  that  of  the  preceding  cycles,  was  the  greater
regularization  of  procedure.  An  issue  of  $400,000,-000
  certificates,  dated  January  22,  was  succeeded
three  weeks  later  by  an  announced  program  of  fortnightly ­
  issues  of  $500,000,000  each.  The  first  of
such  issues  was  made  on  February  8,  1918,  and  was
followed  by  like  emissions  bearing  date  of  February
27,  March  20,  ($543,032,500),  April  10,  ($551,-226,500),
  and  April  22,  ($517,826,500).  In  addition ­
  the  Treasury  disposed,  in  “over  the
counter  ”  sale  through  the  banks,  of  three  monthly
series  of  tax  anticipation  certificates  to  an  aggregate
amount  of  $256,924,000.  Finally,  the  current
yield  of  war  taxation  became  more  productive,  the
ordinary  receipts  of  the  Treasury  being  $565,951,-791
  for  the  first  four  months  of  1918,  as  compared
with  $409,442,777  for  the  last  four  months  of  1917.
The  largest  part  of  this  flood  of  incoming  revenue
was  absorbed  by  the  rapid  increase  in  war  disbursements ­
  despite  a  marked  decline  in  the  Treasury’s
advances  to  the  Allies.  The  Allies  received  only
$370,200,000  in  January,  $325,000,000  in  February, ­
  $317,500,000  in  March  and  $287,500,000  in
April,  as  compared  with  $471,929,750  in  November
and  $492,000,000  in  December.  But  the  Treasury’s ­
  “  ordinary  disbursements  ”  including  interest