This week the Administration finally took one hesitant step toward damming the forces of inflation, generated by the Treasury's "easy-money"' policy. It announced that on the next issue of Government bonds, the Treasury would: 1) raise the interest rate by one quarter of one percent and 2) make the new securities ineligible for sale on the open market.
The decision settled one basic argument between the Treasury and the Federal Reserve Board, which has long been arguing for higher interest rates. The decision was designed to discourage banks from turning their Government...
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