FISCAL: Cheapest Money

How very cheap money has become in the U. S. was demonstrated last week by Secretary of the Treasury Mellon in announcing what interest rates the U. S. would pay on its mid-December borrowings. On a $150,000,000 issue of six-month Treasury certificates, Secretary Mellon offered only 1¼%—an all-time record low. On a twelve-month issue of the same kind for $250,000,000 the rate will be 1⅞%. The last similar issues carried 2⅜% and 2⅞% rates. At the height of the speculative boom in 1929 the Treasury had to pay 5%. These new borrowings...

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