WAR BORROWING 
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from $50,000,000 on April 24, to $918,205,000 on 
June 9; remained fixed at $918,205,000 from June 
9, to June 29, and declined from June 29, until com 
pletely redeemed by July 30. In the second cycle, 
resort was had again to certificates on August 9. 
The amount issued rose uninterruptedly from $300,- 
000,000 to $2,320,493,000 on October 24; remained 
fixed at that amount from October 24 to November 
15, and declined with maturity and redemption of 
issues from November 15 to December 15. In the 
third cycle, the volume of certificates rose from 
$400,000,000 on January 22, 1918, to $3,012,085,- 
500 on April 22, 1918; remained constant from 
April 23 to May 9, 1918, at $2,612,085,500; and de 
clined thereafter until complete maturity on July 18, 
1918, overlapping the resumption of certificate bor 
rowing in anticipation of the Fourth Liberty Loan. 
In the fourth cycle, certificate borrowing began on 
June 25, 1918, with an issue of $839,646,500 and 
continued with fortnightly issues until October 1, 
1918, at which time there had been emitted $4,659,- 
820,000 with maturities extending up to January 30, 
1919. There were no emissions immediately before 
nor during the flotation of the Fourth Liberty Loan 
in October, 1918, after which followed the usual 
funding and redemption. 
The volume of government deposits in the banks 
and trust companies designated as special deposi 
taries and in the Federal Reserve Banks reflects the 
course of certificate borrowing, with the modification 
at intervals due to Liberty Loan and income and 
excess profits tax payments and to the progressive 
increase of withdrawals for public expenditure and