Congress' refusal to act on the Administration's debt-management program last week continued to disrupt the market for Government and corporate securities. Even as President Eisenhower drafted a special message urging Congress to lift the 4ΒΌ% interest-rate ceiling on long-term Government bonds, the Treasury announced that it had to pay 3.824% interest on short-term (91-day) bills, the highest since the bank holiday of March 1933.
The effects of the Treasury's reliance on short-term borrowing in the midst of an overall tightening of the money supply (TIME, Aug. 31) were readily apparent. By drawing $1.6 billion in new cash during the last month, Treasury...
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