Business: Reserve Rate Cut

Apparently one of the chief ambitions of the New York Reserve Bank is to surprise Wall Street. The character of its actions is usually forecasted in the financial centre correctly enough, 'but no one can ever tell ahead of time when they will occur. Usually changes in the rediscount rate are made Wednesday, yet Aug. 6 came and went without developments. Then the next day the Bank quite unexpectedly cut its rediscount rate from 3½% to 3%.

The new rate is more in line with the open market rate on acceptances of 2...

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