Down Is Up

The U.S. Treasury last week took a toddling step, the first in 15 years, to reduce the national debt of $279 billion. It announced that it will use some of its cash reserves, which are not needed now because of the drop in war spending, to redeem some $2.8 billion in outstanding Government securities. The Treasury hoped that this move would hush critics of its fiscal policies. They kept on yelling. Said the Federal Reserve Board: the use of Treasury cash will increase the amount of money in circulation. This will be "more inflationary . . . than increasing the public debt through the sale of additional securities to non-bank buyers."

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