FISCAL: Record Swap

The U.S. Treasury last week successfully completed the second largest refunding operation in history.* To refund $17.3 billions in Government securities due this month. Treasury Secretary George Humphrey had prepared both short-and medium-term (8 years and 8 months) 2½% securities, to appeal to private banks that dislike tying up money over long periods.

When the final returns were in, Treasury officials jubilantly announced that 98% of the matured bonds had been swapped for new Government securities; only $345 million was handed out in cash. A whopping $6,721,000,000, equal to 69% of private bank holdings, went into the new medium bonds maturing...

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