CAPITAL: A Step Toward Freedom

The U.S. took a significant step last week toward freeing the international movement of capital for loans and investments. The Nixon Administration discarded a series of capital controls that had been imposed by the Kennedy Administration in 1963. The controls had aimed to reduce the outflow of dollars to expanding economies in Europe, Japan and elsewhere, and to narrow U.S. balance-of-payments deficits.

As a result of last week's moves, U.S. citizens no longer must pay an "interest equalization tax" when they buy foreign stocks. In addition, U.S. corporations are freed from a complicated set of limits on their foreign investments, and...

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