92

WAR  BORROWING

rowing.  Total  ordinary  disbursements  for  June
were  notably  greater  than  for  May  —  $1,263,914,-905
  as  compared  with  $1,068,203,026;  but  advances
to  the  Allies  were  less  almost  by  the  same  amount  —
$242,700,000  as  compared  with  $424,000,000.* 1
There  was,  however,  seeming  reluctance  on  the  part
of  the  Treasury  to  tolerate  any  considerable  reduction ­
  in  its  net  balance  or  indeed  to  modify  the
policy  of  progressive  increase,  and  preparations
were  made  for  further  anticipatory  borrowing  —
thus  terminating  the  third  cycle  of  the  Treasury’s
operations.

IV
On  June  12,  1918,  announcement  was  made  by
the  Treasury  of  the  program  of  fortnightly  certificate ­
  borrowing  in  anticipation  of  the  Fourth
Liberty  Loan.  On  June  25,  with  the  net  balance
standing  at  $1,531,894,060  the  first  of  such  issues
was  allotted  to  the  amount  of  $839,646,500.  In
the  succeeding  three  months,  six  additional  issues
were  emitted  to  an  aggregate  amount  (including
the  issue  of  June  25)  of  $4,659,820,000.  In  addition, ­
  a  series  of  certificates  in  anticipation  of  1919
income  and  excess  profits  taxes  were  placed  on  continuing ­
  sale  on  August  20,  and  an  appreciable
amount  allotted  up  to  October  1,  1918.
These  operations  were  attended  by  the  same  striking ­
  results  noted  in  connection  with  the  certificate
borrowing  in  anticipation  of  the  earlier  Liberty
11  “  Monthly  Summary  of  Foreign  Commerce  of  the  United
States,”  August,  1918,  p.  95.