At the Washington showings of The Senator Was Indiscreet, Government bigwigs got a laugh out of the senator's proclaiming himself "Against inflation, against deflation, for flation." Last week, nobody was laughing over the Administration's meandering in the no man's land of flation.
Its intentions were toward deflationjust a little deflation. Treasury Secretary John Snyder upped to 1¼% the 1⅛% interest rate on short-term Government bonds. lie expected, rightly, that banks would follow the example and raise interest rates, thereby curbing the inflationary expansion of credit. By midweek, some bankers announced plans to boost...
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