- 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
Evolution of the Primary Market and the Introduction of Treasury Bills
Evolution of the Primary Market and the Introduction of Treasury Bills
- Chapter:
- (p.199) 14 Evolution of the Primary Market and the Introduction of Treasury Bills
- Source:
- Birth of a Market
- Author(s):
Kenneth D. Garbade
- Publisher:
- The MIT Press
In the early 1920s, the primary market for Treasury securities evolved from a wartime market, where the Treasury sold unlimited quantities of securities in fixed-price offerings, into a peacetime market, where it sold limited quantities of securities on a regular quarterly basis and scaled allotments in favor of small investors and investors rolling over maturing investments. This chapter discusses the emergence of, and the solutions to, the allocation problem created by fixed-price offerings of underpriced securities; the substitution of War Loan deposits for more expensive borrowings; and the introduction of Treasury bills in 1929.
Keywords: Treasury securities, War Loan deposits, Treasury bills, securities market
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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
