The Economy: No Time for Controls

When inflation gets out of hand, industrial countries frequently turn to credit rationing as one way to discourage consumer spending or excessive borrowing by business. The U.S. has shunned such restraints since the end of the Korean War. The economic distortions produced by tight money, however, have revived the demand for stringent credit control. Advocates argue that big corporations have found it comparatively easy to arrange loans while small companies have been turned down and home buyers and builders have suffered from a severe mortgage drought.

Last week President Nixon signed into law a bill giving him unsought power to...

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