Treasury's Point-of-View

An interesting sidelight upon the anticipated movement of interest rates for the current year was afforded by the offering of $400,000,000 of six months and one year U. S. Treasury Certificates bearing interest at 4 1/4 and 4 1/2 per cent respectively. Throughout the war period, the rates on these certificates by which the nation's floating debt has been financed, have proved a remarkably accurate index to prospective as well as present conditions in the money market. The rates on the present issue of certificates have, like the Reserve rediscount rates, recognized the increasing demand for money by an advance over the previous rate--on the other hand, it is reasonable to suppose that the Treasury foresees only a moderately increased expansion of loans during the coming year, and in consequence money rates only slightly above those now obtaining.