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/9780262016377.003.0004
- Subject:
- Economics and Finance, Econometrics
This chapter provides an overview of Treasury finance during World War I. It begins with a brief chronology of the war, which is important because the course of the war drove everything else. It then ...
More
This chapter provides an overview of Treasury finance during World War I. It begins with a brief chronology of the war, which is important because the course of the war drove everything else. It then examines the costs of the war and how Treasury officials financed American participation.Less
This chapter provides an overview of Treasury finance during World War I. It begins with a brief chronology of the war, which is important because the course of the war drove everything else. It then examines the costs of the war and how Treasury officials financed American participation.
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/9780262016377.003.0005
- Subject:
- Economics and Finance, Econometrics
This chapter examines the five Liberty Loans which financed two-thirds of the cost of American participation in World War I. The contract terms for the five Liberty Loans exhibited a level of ...
More
This chapter examines the five Liberty Loans which financed two-thirds of the cost of American participation in World War I. The contract terms for the five Liberty Loans exhibited a level of ingenuity and a willingness to experiment not typically associated with a sovereign issuer. Interest income ranged from fully tax exempt on the First Liberties to varying degrees of partial exemption on subsequent issues. The Treasury also offered debt convertible into debt with higher coupon rates (the First and Second Liberty bonds) and interconvertible debt with different tax provisions and coupon rates (the Victory Liberty notes).Less
This chapter examines the five Liberty Loans which financed two-thirds of the cost of American participation in World War I. The contract terms for the five Liberty Loans exhibited a level of ingenuity and a willingness to experiment not typically associated with a sovereign issuer. Interest income ranged from fully tax exempt on the First Liberties to varying degrees of partial exemption on subsequent issues. The Treasury also offered debt convertible into debt with higher coupon rates (the First and Second Liberty bonds) and interconvertible debt with different tax provisions and coupon rates (the Victory Liberty notes).
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/9780262016377.003.0015
- Subject:
- Economics and Finance, Econometrics
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, ...
More
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.Less
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.
