When the Federal Reserve Board launched its tight-money policy, it knew that it would cause trouble for the U.S. Treasury. The money squeeze was bound to force the Treasury to boost interest rates on Government bonds. But the Treasury hardly anticipated the extent of the tight-money troubles that faced it last week. Fortnight ago it announced the refinancing of $4.2 billion in Treasury notes. It offered investors (about half of them corporations) a choice of taking 3½% certificates due in eleven months or 3⅝% notes due in 1962. The new interest rates, highest offered by the Treasury since the...

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