At all costs it is imperative to avoid giving any false impression that the Treasury is on a weak wicket. As economic control grows in effectiveness, the Treasury's position will become even stronger than it is today. One of the financial lessons of the Great War was the failure to exploit that strength in borrowing policy. Inability to resist the temptation to give too much away at a too early stage in the borrowing programme would involve an irretrievable step towards higher interest rates.
Again, that strength should be sufficient to avoid resort to such exnedients/ as taxafree loans or loans issued at a large discount with the speculative attraction of repayment by drawings at par. Hence the greatest importance attaches to the terms of the first issue. The argument that an issue of short-dated stock for a fixed amount would suggest a fear on the part of the author. ities that a more comprehensive attack on the borrowing programme might not succeed, is surely overweighed both by the psychological value of a successful issue at a low rate of interest, and also by the opportunity it will provide for an intensive preparation of the long-term market for a really cheap series of issues,
Text read from the printed page and cleaned; old type leaves the occasional error.