With bullets whining in the Middle East and President Nixon silent in the White House, Harvard's methods of managing its money attracted little attention this week.

Nevertheless, University treasurer George Putnam '49's announcement Tuesday that Harvard may set up its own management company to handle the bulk of its $1.4 billion endowment heralded a major change in Harvard finance, for 25 years the exclusive province of State Street Research and Management, the Boston firm headed by ex-treasurer George F. Bennett '33.

If the new Harvard Management Company is approved by the Corporation, it will handle up to two-thirds of Harvard's stocks and bonds, and after three years, conceivably the stocks and bonds of paying customers too.

The remainder of Harvard's holdings will be divided into lots, worth $100 million each, and then split up among at least three already existing but as yet unchosen management companies.

The mixed management system is intended to help meet two goals--comparatively low costs, and a successful investment policy.

Setting up a Harvard Management Company will probably be considerably cheaper than farming Harvard's endowment out to existing management companies, so it will minimize the financial shock of switching from State Street. Many of State Street's partners graduated from the College or the Business School, and the firm managed Harvard's money at a nominal $100,000 annual fee.

But at the same time that the new company cuts down on Harvard's costs, the three other firms with some University money will provide a yardstick to measure its effectiveness.