As the pace of U.S. business picks up, so does the demand for money. Last week bankers indicated they expect a rise soon in the discount rate, now 2½%, as well as a corresponding hike in the prime rates. Said Hanover Bank's President R. E. McNeill Jr.: "I would not be surprised to see an increase in the discount rate. There is a high level of business, inventories are down, money is fairly tight, and banks are well invested." With higher rates ahead, U.S. bonds had another sinking spell last week, reached the lowest level in years; many Treasury issues now...
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