FISCAL: Ring-Around-a-Morgenthau

In trying to finance the war without bringing on inflation, Treasury Secretary .Morgenthau has been forced to do part of it with mirrors. These mirrors were being used again last week in the Fifth War Loan.

Maypole Dance. To avoid credit inflation, Mr. Morgenthau ruled that not a nickel of his $16-billion Fifth War Loan could be sold to commercial banks. This rule has, to a considerable extent, been circumvented. A good part of the Fifth, like 20% of the previous War Loan, which was similarly restricted, is being financed by bank credit....

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