- 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
Paying down the War Debt
Paying down the War Debt
- Chapter:
- (p.160) (p.161) 12 Paying down the War Debt
- Source:
- Birth of a Market
- Author(s):
Kenneth D. Garbade
- Publisher:
- The MIT Press
This chapter examines how the Treasury reduced wartime debt. Andrew Mellon, Secretary of the Treasury, and his colleagues first addressed the problem of refinancing the postwar overhang of short-term debt and then put in place the program of regular tax date financings that became the backbone of Treasury debt operations in the 1920s. Between mid-1923 and early 1927, they whittled down the Third Liberty bonds as sinking fund appropriations became available, but when tax receipts exploded in early 1927, they had the mental agility to make a midcourse correction, switching their attention to the Second Liberty bonds and calling those bonds for early redemption. They also made use of intermediate-term securities in the second half of the decade, three times offering 5-year notes callable in three years.
Keywords: Treasury debts, sinking fund, foreign debt payments, budget surplus, Victory notes, Liberty bonds, short-term debt, debt reduction
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- 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