Search

The article reports on the announcement made by the U.S. Treasury and the Federal Reserve Board that they are looking for ways of diminishing speculation in the government bond market. In May 1958, the Treasury offered two types of securities to holders of the $9.55 billion of maturing debt who wished to continue their investment. For investors with short-term requirements, it provided a one-year certificate; for longer term investment, it offered a six year and eight months bond. Proposals to change present bond selling practices enough to avoid some of the red faces of last spring, by formalizing the market, by strengthening margin requirements, or by some other means, are expected to be announced by mid of 1959.

This article presents an argument pertaining to the finance of cultural institutions in the U.S. In the old days, the financing of such institutions was considered to be the job of the president and board of trustees; they were the ones who had to convince the legislature in the case of public institutions, or raise endowments from private sources in the case of private ones. With this total of nearly $47 million a year, recipient institutions have available an income equivalent to the earnings at five percent of an endowment not far below $1 billion.