Show i T THE E DAILY W WASHINGTON AS INGTON J I Fin Financial a n cia 1 Whirligig h i r 1 i gig Written for The Telegram m I By gy JAMES mS McMULLIN l NEW V YORK YORK The The treasury didn't ask forbids for fot forbids bids on its new offering of Fedora I Farm Mortgage corporation bonds bonds bonds-an an unprecedented unprecedented dented procedure procedure just just for fun Normally the treasury sets its own price on its issues when they are arc floated and that's that The farm mortgage bonds are essentially direct federal obligations since obligations since they ar are fully guaranteed guaranteed guaranteed guar guar- by the government government and and the usual system system tem tern could have been followed with perfect safety But it wasn't and heres here's why The government is gunning for record low Jow interest rates on its big conversion operations this fall Of or course it could flatly announce abond abond a abond bond issue at 2 2 s or 2 per cent when the time comes The The- banks and other large investors would be almost certain to subscribed ade- ade if if if not with zest But a certain amoun amount of unpublished resentment would probably l develop develop develop de de- de- de at such high-handed high tactics as it did inthe inthe in inthe the case of the famous Mellon with possible damage to the government bond market am and the treasury's relations with the banks So we have a subtle technique instead a 0 S a aBy By requesting bids on a 3 per cent issue issue- and announcing that no nc bids will be accepted at less than par the par the treasury tr allows the bidders bidders bid bid- ders to name their own interest at anything below three per cent they like It cant can't b be higher Thus the banks themselves will b be paving the w way y to a still cheaper rate in a coupie coupie couple cou cou- pie of months The precedent will be established the the more effectively because the farm mortgage issue is technically but only technically cally inferior to straight treasury stuff What's more the maneuver will work The Th bidders will submit terms that should make Mr happy not happy not out of love lo for the treasur treasury treasury trea trea- sur sury but because they're so feverishly eager fo for sound investments Authorities predict the rate will be around per cent As for the amoun amount big big investing institutions can take in stride and hardly notice it While no definite bids were pledged in advance the treasury treasury's New York contacts reported accurately that no risk was attached to the plan Wall Streeters expert such matters in applaud applaud ap ap- ap plaud the treasury's skill in playing supply and demand on the nose to gain its ends Just Beginning Dont Don't get the idea that the Harriman Hosiery case is washed up because Deputy Administrator tor A. A R. R Glancy announced settlement of th the str strike ke and restored the company's Blue Eagle Insiders will tell teIl you that the fun has jus just started The situation looks like a complete victory for conservative industry industry but but the trouble trouble trouble trou trou- ble is its it's too darned complete A modest turn to the right by N If R A might have gotten by by- by but but an n unqualified about face is something else els again agam The question which intrigues New York i is whether Glancy's Clancy's superiors can upset a decision he was fully authorized to make Such a reversal reversal reversal re re- re- re versal would raise hob with N R A prestige But however that works out the informed rate rat it a to 20 shot that no move which labor takes take as a slap in the face will be permitted permitted permitted-by by th the government itself itself to to stand unchallenged in th the present delicate state of labor relations am and that every precaution will be taken to guard against repetition of the fau faux pas Some Manhattan conservatives rejoice that tha the government is on the spot The more mor thoughtful fear the reaction from the Harriman ruling will bust bUs up what progress they've made mad toward revamping N NR R A to their specifications Jittery Stock exchange authorities are nervous as hen with one chick about attempts at lation A questionnaire is is sent out at the firs symptoms of unusual activity displayed by an ant any stock t ck Late Lately the he questionnaires have averaged more than two a day clay Th The curb exchange is is same thing and some of those who have been quizzed sa say there is excellent teamwork between n the bi big board and its smaller brother Both are arc doin doing the most thorough job of policing in their history history his his- tory in the hope of forestalling complaints o or disciplinary action by the securities exchange commission They dont don't know how tough th the S 5 SEC E C may turn out to be and are arc taking n no chances Want yant Debt Settled Banking and heavy industry circles ar are bringing all the pressure they can find o on Washington to please settle the Russian del debt business quick Its It's argued that Russian trade is the only salvation for heavy industry and that recovery recover is impossible until it gets out of the swamp It Its It's argued further that P PV V W A and the housing program are arc inadequate as life-belts life because they're too slow and too uncertain The recent 20 per cent jump in soviet trade helps inspire these urgent pleas The figures figures' prove prove theres there's cream to be had and New York hates to see it all poured into foreign pitchers Ditchers McClure Nel paper t ti t |