Kenneth D. Garbade
- Published in print:
- 2012
- Published Online:
- August 2013
- ISBN:
- 9780262016377
- eISBN:
- 9780262298674
- Item type:
- chapter
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262016377.003.0018
- Subject:
- Economics and Finance, Econometrics
This chapter traces the evolution of Treasury debt management actions between 1930 and early 1933. It first examines the outlook for debt management in the second half of 1930. It then describes how ...
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This chapter traces the evolution of Treasury debt management actions between 1930 and early 1933. It first examines the outlook for debt management in the second half of 1930. It then describes how unforeseen events complicated, and then derailed, the refinancing program that Secretary Mellon and Under Secretary of the Treasury Ogden Mills had mapped out, and how those officials fashioned innovative responses. When faced with unexpected financing requirements in the first half of 1931, they introduced a program of regularly refinancing maturing Treasury bills with new bills, thus turning bills from their originally intended use as an instrument of cash management into an instrument of debt management. The last section describes how Mills, who became Secretary of the Treasury in February 1932, funded the activities of the Reconstruction Finance Corporation in 1932 and early 1933.Less
This chapter traces the evolution of Treasury debt management actions between 1930 and early 1933. It first examines the outlook for debt management in the second half of 1930. It then describes how unforeseen events complicated, and then derailed, the refinancing program that Secretary Mellon and Under Secretary of the Treasury Ogden Mills had mapped out, and how those officials fashioned innovative responses. When faced with unexpected financing requirements in the first half of 1931, they introduced a program of regularly refinancing maturing Treasury bills with new bills, thus turning bills from their originally intended use as an instrument of cash management into an instrument of debt management. The last section describes how Mills, who became Secretary of the Treasury in February 1932, funded the activities of the Reconstruction Finance Corporation in 1932 and early 1933.
