STATE OF BUSINESS: Notes of Caution

Some quiet notes of caution slipped into the sweet, purring music of U.S. prosperity last week.

One came from Federal Reserve Chairman William McChesney Martin Jr., who was anxiously watching the zooming expenditures for plant expansion, increasing business inventories, the high levels of mortgage and retail credit—all potential inflationary spots in 1956's economy. Yet, said he, there are still some businessmen clamoring for fewer Government credit controls every time "sales do not exceed expectations or fail to set a record." For 1956 the need was for tighter, not looser reins on inflation...

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