Money: Signs of Strain

Is the nation heading toward another tight-money squeeze? Bankers and businessmen hoisted storm warnings last week — and many of them also pointed an accusing finger at Washington.

"The demand for long-term credit," said Vice President Tilford C. Gaines of the First National Bank of Chicago, "is running well in excess of the available supply of money." As a result, despite Federal Reserve pressure to keep borrowing costs low enough to stimulate the economy, interest rates on corporate and municipal bonds have climbed back to a point close to their 1966 peak. As the money pinch began easing late last...

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