- Title Pages
- Dedication
- Preface
- Acknowledgments
- 1 Introduction
- 2 The Payments System before World War I
- 3 Treasury Debt Management before World War I
- 4 Treasury Finance during World War I
- 5 Designing the Liberty Loans
- 6 Marketing the Liberty Loans
- 7 Treasury Cash Management: Certificates of Indebtedness
- 8 Treasury Cash Management: War Loan Deposit Accounts
- 9 Federal Reserve Support of the Treasury Market during World War I
- 10 Coda on Treasury Debt Management during World War I
- 11 Treasury Finance during the 1920s
- 12 Paying down the War Debt
- 13 Revival of the Over-the-Counter Market
- 14 Evolution of the Primary Market and the Introduction of Treasury Bills
- 15 Coda on Treasury Debt Management during the 1920s
- 16 Treasury Finance during the Great Depression
- 17 Nonmarketable Treasury Debt
- 18 Treasury Debt Management during the Great Contraction
- 19 Treasury Debt Management during the New Deal
- 20 The Primary Market during the Great Depression
- 21 Statutory Control of Treasury Indebtedness
- 22 The Brief Revival and Subsequent Extinction of National Bank Notes
- 23 Coda on Treasury Debt Management during the Great Depression
- 24 Treasury Debt Management since 1939
- References
- Index
Treasury Finance during the 1920s
Treasury Finance during the 1920s
- Chapter:
- (p.146) (p.147) 11 Treasury Finance during the 1920s
- Source:
- Birth of a Market
- Author(s):
Kenneth D. Garbade
- Publisher:
- The MIT Press
This chapter provides an overview of federal tax policy during the 1920s and describes how Treasury officials funded the debt reduction program. By the end of World War I the national debt stood at $25 billion and tax rates were so high that they significantly dampened investment incentives. In a series of three revenue measures adopted between 1921 and 1926, Congress eliminated the excess profits tax and dramatically reduced surtaxes on individual incomes. Congress also effected significant expenditure reductions. Spending for the War and Navy departments plunged from $11.3 billion in the fiscal year 1919 to $1.7 billion in the fiscal year 1920, and continued to fall until the middle of the decade. Spending in other categories also fell during the first half of the decade. The result was a surplus in every fiscal year from 1920 to 1930.
Keywords: tax policy, debt reduction, national debt, public finance, Congress, fiscal policy
MIT Press Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.
Please, subscribe or login to access full text content.
If you think you should have access to this title, please contact your librarian.
To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us.
- Title Pages
- Dedication
- Preface
- Acknowledgments
- 1 Introduction
- 2 The Payments System before World War I
- 3 Treasury Debt Management before World War I
- 4 Treasury Finance during World War I
- 5 Designing the Liberty Loans
- 6 Marketing the Liberty Loans
- 7 Treasury Cash Management: Certificates of Indebtedness
- 8 Treasury Cash Management: War Loan Deposit Accounts
- 9 Federal Reserve Support of the Treasury Market during World War I
- 10 Coda on Treasury Debt Management during World War I
- 11 Treasury Finance during the 1920s
- 12 Paying down the War Debt
- 13 Revival of the Over-the-Counter Market
- 14 Evolution of the Primary Market and the Introduction of Treasury Bills
- 15 Coda on Treasury Debt Management during the 1920s
- 16 Treasury Finance during the Great Depression
- 17 Nonmarketable Treasury Debt
- 18 Treasury Debt Management during the Great Contraction
- 19 Treasury Debt Management during the New Deal
- 20 The Primary Market during the Great Depression
- 21 Statutory Control of Treasury Indebtedness
- 22 The Brief Revival and Subsequent Extinction of National Bank Notes
- 23 Coda on Treasury Debt Management during the Great Depression
- 24 Treasury Debt Management since 1939
- References
- Index
