CREDIT: Easier Credit

The tight-money market is loosening fast. Last week, after two months of steadily declining interest rates for its short-term borrowing, the Treasury sold $1.5 billion in 91-day bills at a rate of 1.39%, lowest in 2½ years. The new rate was not much more than half of the peak of 2.41% reached early in June.

Other signs of easier credit: ¶General Motors Acceptance Corp., Commercial Credit Co. and C.I.T. Financial Corp.—the "big three" of the finance business—last week cut the interest rates they pay for short-term loans to 2¼% and 2⅝%. This was ⅛% below the peak rates,...

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