The U. S. Government operates largely on credit, the Treasury borrowing money in three ways: 1) Bonds for long-pull needs over five years; 2) Notes for one year to five; 3) Certificates for less than a year.
Last week the House of Representatives passed legislation to give the Treasury a fourth method of borrowing, to be known as Treasury "bills."
Short-term certificates are issued on the quarterly tax-payment days. The present system has these defects, as explained by Secretary Mellon: 1) Money is borrowed in advance of actual needs with a consequent loss...
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