Annual report of the Secretary of the Treasury on the state of the finances for the year .. . rate mayprecipitate a renewed flow of short-term capital abroad which could once againaflfect confidence in the soundness of our dollar. This we cannot allow to occur. Therefore, other means must be found to promote lower long-term rates—?means that they do not immediately involve downward pressures on short was this dilemma that led the Federal Reserve Board to the conclusion thatthe bills only policy which had worked effectively in earlier recessions wasno longer appropriate to the task at
Annual report of the Secretary of the Treasury on the state of the finances for the year .. . rate mayprecipitate a renewed flow of short-term capital abroad which could once againaflfect confidence in the soundness of our dollar. This we cannot allow to occur. Therefore, other means must be found to promote lower long-term rates—?means that they do not immediately involve downward pressures on short was this dilemma that led the Federal Reserve Board to the conclusion thatthe bills only policy which had worked effectively in earlier recessions wasno longer appropriate to the task at hand. In addition, the Treasury can andshould support efforts to lower the long-term rate by judicious debt managementpolicies, not forgetting, however, the need for some lengthening of the debt soas to maintain a reasonable refunding pattern. Recent developments in this field can be seen from the two charts before youwhich show the market yields on Treasury securities for selected dates. EXHIBITS 355 MARKET YIELDS ON TREASURY SECURITIESPattern of Rates by Length of Maturity. 15 20 25 Yeors to Moturity 30 35 40 The first chart shows that the high point last year was reached in Januaryand the low point the following July. It also clearly shows that long-term ratesactually moved up as the recession deepened toward the end of last year—indicative of a lag in the availabilit} of credit to borrowers. MARKET YIELDS ON TREASURY SECURITIESPattern of Rates by Length of Maturity
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Keywords: ., bookcentu, bookdecade1870, booksubjectfinancepublic, bookyear1876