The War Debt
THE War Debt may be classified into Certificates of Indebtedness, Liberty Bonds, Victory Liberty Notes and War-Savings Certificates.
The use of Certificates of Indebtedness in connection with United States Government financing is not entirely new. As we have already seen in the historical portion of this pamphlet, certificates, or Treasury notes as they were then called, were extensively used in financing the War of 1812, in financing deficits following the panic of 1837, during and following the Mexican War in 1846 to 1851, during Buchanan's administration and during the Civil War, but the methods pursued at these times were essentially different from the method which has been pursued in connection with the use of certificates in financing the present war. The certificates which have been issued during the last two years have fallen into two classes. One class has been issued in anticipation of the sale of the long-term or Liberty Bonds, and the other class has been issued in anticipation of the payment of taxes. In each case, the certificates have automatically been cancelled either through the receipt of revenues by the Treasury from the sale of long-term bonds or by the receipt of revenues from the payment of taxes. The aggregate issues of these certifi-