Money: New Ways to Get More

Institutions are so money-hungry that the U.S. is likely to face a chronic shortage of capital throughout the new decade. The pent-up demand for funds —to finance hospitals, schools, airports, highways, pollution control, business enterprises and especially housing—presages a tidal wave of borrowing in the years ahead. Last week the demand reshaped the patterns of saving and borrowing money in two ways.

Something for Savers. To help banks and savings-and-loan associations stem a worrisome outflow of funds, the Government raised the maximum interest rates that they can pay to depositors. On ordinary savings accounts, the ceiling went up from 4%...

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