Prosperity's Demands Ration the Supply


TO many U.S. businessmen—and politicians—the most pressing economic problem of 1957 is the increasing tightness of money, which last week drove the interest rate on U.S. Treasury bonds to the highest point in nearly 25 years (see above). Yet tight money, which economists define as a shortage of available capital to meet the demands of an expanding economy, is not a peculiar phenomenon of the great American boom. As gauged by interest rates, the U.S. actually has easier money than 23 other major nations. The entire free world is caught in the grip of an unparalleled capital shortage...

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