THE PRICE LEVEL 
189 
emitted $4,659,820,000 certificates of anticipation of 
the Fourth Liberty Loan and during which there 
were liquidated the outstanding parts of two issues 
in anticipation of the Third Liberty Loan of the 
original nominal aggregate of $1,069,053,000. The 
deposits and investments of the “ member banks in 
leading cities ” at the corresponding dates were as 
follows: 
June 28 October 4 
Number of reporting banks 705 749 
Net demand deposits on which re 
serve is computed $9,117,565,000 $9,521,346,000 
Government deposits 1,211,992,000 693,650,000 
United States certificates of in 
debtedness 621,868,000.1,746,135,000 
Loans secured by U. S. bonds and 
certificates 498,830,000 493,164,000 
All other loans and investments. 10,539,986,000 10,521,821,000 
Of the certificates issued by the Treasury within 
these three months, the banks retained out of their 
allotments $1,124,267,000. This investment was 
unaccompanied by any reduction of commercial de 
posits, the volume of demand deposits subject to re 
serve requirements actually increasing $403,781,000. 
Nor were such additional deposits loan-created, the 
banks’ loans and other investments showing a slight 
reduction. A substantial amount of the certificate 
borrowings, as well as of the earlier government 
deposits, would seem again to have been “ dis 
persed ” and to have reappeared in the increased 
volume of commercial deposits and money in cir 
culation. 
The effects of the redemption period, extending 
from April 22 to July 18, 1918, within which the six