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Birth of a MarketThe U.S. Treasury Securities Market from the Great War to the Great Depression$
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Kenneth D. Garbade

Print publication date: 2012

Print ISBN-13: 9780262016377

Published to MIT Press Scholarship Online: August 2013

DOI: 10.7551/mitpress/9780262016377.001.0001

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Coda on Treasury Debt Management during the 1920s

Coda on Treasury Debt Management during the 1920s

(p.217) 15 Coda on Treasury Debt Management during the 1920s
Birth of a Market

Kenneth D. Garbade

The MIT Press

This chapter briefly discusses three important developments in Treasury finance engineered by Treasury Secretary Mellon and his Under Secretaries, S. Parker Gilbert, Garrard Winston, and Ogden Mills, in the 1920s. First, they refinanced (with intermediate-term notes) $2.5 billion of short-term debt that threatened to clog the Treasury market in early 1921. Second, they developed machinery appropriate for applying budget surpluses to debt reduction in an orderly fashion, redeeming three Liberty Loans between 1922 and 1928 with a thoughtfully constructed mix of early retirements, exchange offerings, cash redemptions at call or maturity, and regular quarterly refinancings. Third, they introduced Treasury bills in 1929 and, in the process, began to revive auction offerings of Treasury securities.

Keywords:   Treasury finance, Andrew Mellon, Treasury debt

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