Bond Babies

Having two weeks ago postponed its debt problem by declining to call the 4th Liberty Loan for refunding (TIME, April 24), the U. S. Treasury last week took action on at least part of its problem: offered for sale $500,000,000 of 2 7/8% three-year Treasury notes. To encourage small investors the bonds were offered in denominations as low as $100, and the Treasury declared its intention of trying to allot in full all subscriptions up to $10,000. Within a few hours banks announced a heavy subscription. Success of this issue will make it easy for the Treasury to pay off its short term notes now maturing nearly every month, presages further "popular" offerings to solve refunding problems.

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