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Show ALONG view of the ownership and distribution of U. S. Government securities as compiled com-piled by the Treasury Department Depart-ment gives an insight into the manner and the effectiveness with which the Federal Government Govern-ment has managed the public debt a debt which has grown sixfold six-fold over the last two decades to its present level of about $283 billions. bil-lions. There have, of course, been problems at times, 'nherent in a debt of the size it has attained, its enormous economic influence, and the fact that a chronic shortage short-age of savings to meet the nation's na-tion's capital and investment needs has characterized most of the post-World War II period. Over the past year, for example, ex-ample, the debt and its management manage-ment have attracted widespread attention as the result of the Impact Im-pact of a record peacetime budget budg-et deficit in an inflation-charged atmosphere and in a period when the demand for savings and in-vestible in-vestible funds rose rapidly in keeping with the economy's rebound re-bound from the 1957-58 recession. Under such conditions, the rigidi ty of the interest rate structure on the public debt has put Federal securities at a competitive disadvantage dis-advantage with funds needed to promote production and economic growth. Through it all, nonetheless, the basic principle of Federal fiscal policy has been maintained, to finance the public debt out of the savings of individuals and other Investors to the maximum posi.i-ble posi.i-ble extent to promote economic-stability economic-stability and to keep inflationary forces in cheek. Under the circumstances, it is significant to note that the banking bank-ing system still holds only ah:uit a third of the public debt, a proportion pro-portion which has changed little in recent years. Holdings f the public debt by the nonbanking public, amounting to $140 billions at the end of February, are now near their all-time high . nd represent rep-resent about half th total debt as they have for years. The balance bal-ance of outstanding Federal securities se-curities is held by U. S. Government Govern-ment trust funds and investment accounts, such as the Social Security Se-curity System. |