GOVERNMENT: The Long Pull

The new Republican bosses of the U.S. Treasury took the first step toward a major change in U.S. fiscal policy. In the past, every time an issue of short-term (i.e., one year or less) Government securities has come due, the U.S. has simply offered another short-term issue to replace it. Last week, in exchange for an $8.9 billion issue of one-year certificates falling due Feb. 15, Treasury Secretary George M. Humphrey gave investors a choice of 1) a similar one-year replacement issue of certificates, or 2) bonds maturing in five years, ten months. Humphrey's eventual goal: to put the...

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