THE PRESENT 
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rowings, primarily from the member banks of the 
Federal Reserve System but to the extent possible 
from investors — such floating indebtedness being 
liquidated by the issue at intervals of long-term 
funded loans. The certificate of indebtedness be 
came thus, not like the contemplated issue of the 
Spanish-American War, an initial expedient to put 
the Treasury in funds until the proceeds of newly 
authorized loans and taxes became available, but an 
habitual borrowing device analogous to but not 
identical with the treasury bill of English finance. 
Giving way periodically to a funding or liquidating 
loan, the certificate of indebtedness was resorted to 
promptly thereafter in renewal of the borrowing 
cycle. 
There was no formal statement as to the larger 
purpose which the certificate of indebtedness was 
designed to serve. The report of the Ways and 
Means Committee accompanying the introduction 
of the Liberty Loan bill in the House of Repre 
sentatives merely set forth that: 
“ In view of the fact that a very large portion of the 
taxes now levied and proposed to be levied at a future 
date will be payable yearly, and therefore will not be 
capable of yielding a continual flow of revenue into the 
Treasury, your committee deem it advisable to recom 
mend the authorization of the issuance of $2,000,000,000 
worth of certificates of indebtedness, payable within one 
year, to the end that the Treasury may at all times have 
ample means of securing funds to meet the immediate 
needs of the Government.” 
This intention was repeated in the announcement 
of the Secretary of the Treasury on April 20, 1917, 
that: