ABSTRACT
Much of the recent literature concerning the federal debt and the problems of debt management has been primarily concerned with broad issues of public policy. This chapter outlines some of the questions which the fact of the debt has posed to private financial management and indicates some of the ways in which these questions impinge upon the larger issues of public policy and upon matters usually considered as strictly within the orbit of economic theory. The appearance in the economy of a very large federal debt has introduced a new element into the field of property management and has furnished private financial management with a new vehicle. In substance, the creation of the debt has given a most important medium of investment to officers of both financial and nonfinancial corporations, as well as to individual investors, that they did not formerly possess. The chapter considers the relationship of the government portfolio to the cash account.
