Business: The Treasury Crisis

The President of the richest nation on earth last week publicly confessed what everyone on Wall Street has known for months. The U.S. Treasury cannot sell its long-term bonds. This week Congress got the President's proposal to tide the Treasury over its crisis. In a special message Ike 1) recommended an end to the statutory ceiling on interest rates both for savings bonds (now pegged at 3.26%) and long-term Treasury securities (pegged at 4.25%) so that they can compete in the open market, and 2) asked for a ½% boost in the interest rate on all E and H...