Among the casualties of the Government's tight-money policy have been owners of U.S. savings bonds, who hold $56 billion of the total $277 billion Treasury debt. As other interest rates have risen, the rate on savings bonds has fallen far behind. As a result, sales have slumped (in 1956 the Government hoped to sell $5.65 billion, sold only $5 billion), and the number of bonds cashed in has soared. In January alone, the Treasury paid out $136 million more than it sold in Series E bonds, after the highest redemption level for any month in nearly eleven years.
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