Appetite for More

Secretary Morgenthau last week counted up how many holders of called 4th Liberty Loan 4 1/4% bonds had accepted his offer to convert them into new 2 1/4% 10-12-year bonds (TIME, April 16). Delighted, he found that all but $208,000,000 had been converted of the $1,005,000,000 called and due. The Treasury's $4,600,000,000 stock of cash on hand could easily handle the relatively small cash demand. Mr. Morgenthau was in fact so delighted at the success of his conversion that he had an appetite for more: after consulting with his experts and attending a Cabinet conference he hastily went back to the Treasury, called in newshawks, went through a ceremony.

Several small rolls of paper were placed in a bowl. At random the secretarial hand picked out two rolls, disclosed two numbers, 8 and 2. Then Mr. Morgenthau signed a formal notice calling two more series of the 4th Liberties, all those which end with 8 or 2, for payment on Oct. 15, giving six months notice as required. The new bond call is for about $1,200,000.000, or an additional 20% of the amount outstanding last autumn. When these called bonds are paid off or converted, 45% of the 4th Liberties will have been retired.

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