. Annual report of the Secretary of the Treasury on the state of the finances for the year .. . distribution of the debt beyond the short-term area. The only way, of course, in which the Treasury can reduce the amount ofmarketable debt coming due within one year—short of overall debt retirement—isby replacing some of the maturing short-term debt with new issues that will comedue over a longer period of time. That is what we mean by extending the debt,and we try to do that whenever conditions are favorable. The simple passage oftime brings more and more of the debt into the one-year area so tha
. Annual report of the Secretary of the Treasury on the state of the finances for the year .. . distribution of the debt beyond the short-term area. The only way, of course, in which the Treasury can reduce the amount ofmarketable debt coming due within one year—short of overall debt retirement—isby replacing some of the maturing short-term debt with new issues that will comedue over a longer period of time. That is what we mean by extending the debt,and we try to do that whenever conditions are favorable. The simple passage oftime brings more and more of the debt into the one-year area so that a substantialamount of debt extension is required even if we are to prevent the under one-yeardebt from growing. As has been so often said, we operate in something likeAlices Wonderland, and have to run fast in order to stay in the same place—andeven faster if we want to get some place. Chart K shows what has been done during the last 11 years not only in terms of Chart K VOLUME OF TREASURY MARKET FINANCING(Excluding Weekly Roll-Over of Bills) $ 5-/0 Year BondsLong-Term Bonds. »Notes originally 20 months or less to maturity. EXHIBITS 273 the total amount of Treasury financing that has been required, other than therollover of Treasury bills, but also the amount of debt extension which has beenaccomplished. There was some debt extension back in 1949 and 1950, which helped reduce thesize of the financing job in 1951 and 1952. There was further debt extension in1952 and even more in 1953, but the most substantial debt lengthening that hastaken place since the war occurred in the calendar year 1954. During a yearwhen the Treasury had a $62 billion financing job to do, $31 billion—half ofthe total—was extended into securities running more than one year to maturity,with almost $22 billion of the extension in 5- to 10-year bonds. This in turnhelped to reduce the volume of market financing in 1955 and 1956, but the rela-tively small amount of debt extension which the
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