For almost a year, officials of the Nixon Administration had been forecasting an imminent drop in interest ratesand encountering growing skepticism. By mid-March, Treasury Under Secretary Charls Walker resignedly told the Senate Finance Committee: "It's just like the Long Island Rail Roadif you wait for the train long enough, it's bound to arrive." Last week it finally did. New York's Irving Trust Co. led major U.S. banks in cutting their "prime" business-loan rate by half a point, to 8%.
The White House immediately declared that President Nixon was "pleased." Well he might be. The cut is an important sign that his...
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