FISCAL: Down Is Up

The U.S. Treasury last week took a toddling step, the first in 15 years, to reduce the national debt of $279 billion. It announced that it will use some of its cash reserves, which are not needed now because of the drop in war spending, to redeem some $2.8 billion in outstanding Government securities. The Treasury hoped that this move would hush critics of its fiscal policies. They kept on yelling. Said the Federal Reserve Board: the use of Treasury cash will increase the amount of money in circulation. This will be "more inflationary . . . than increasing...

Want the full story?

Subscribe Now


Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!