Business: Loosening the Reins?

"Running credit policy is like walking a tightrope," said a top Cabinet official last week. "You almost always lean one way or the other. Last summer we were leaning too far toward inflation. Now we are taking a new look to see if we are leaning the other way."

By last week the Administration's policy of tightening credit, city by city, in the major Federal, Reserve districts had finally taken hold. The cost of borrowing money all over the nation had risen, causing a decline in available credit. Member banks of the Federal Reserve were shorter of loanable funds than at any...

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