Money: Backlash Against the Bankers

Increases in interest rates have usually been tolerated as a necessary evil in the fight against inflation. Last week, after announcing the fifth rise in the prime rate since December, U.S. bankers were greeted by an uncommon backlash. Criticism of the move came not only from the perennial easy-money advocates but from other responsible sources. Their contention was that the bankers have been just too cavalier about the cost of money.

Warning from Treasury. Economist Norman Strunk, executive vice president of the United States Savings and Loan League, faulted the big banks for expanding their lending during May at an annual...

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