More than one local official has beat the political drum for small-denomination bonds, both as a way to bring in local, small investors, and, in some cases where the issuer envisions direct sales, even as a way to cut out underwriters altogether.

Those on the other side of the question point out that such securities may be inappropriate for certain investors. They say it is impractical and inefficient to move $100 or $250 bonds in the secondary market if Mr. and Mrs. America decide they have to liquidate their positions before the bonds mature.

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