U.S. INTEREST RATES RISE

Press, Volume XCIII, Issue 27962, 8 May 1956, Page 13

U.S. INTEREST RATES RISE

Highest Levels Since 1933

(Rec. 10 p.m.) CHICAGO, May 6. Heavy demands for credit to help finance the United States business boom had boosted interest rates in some cases to their highest levels since the early 1930’5, the Federal Reserve Bank of Chicago reported today. At the same time, the bank warned that the current prosperity was unevenly spread around the nation. It said, in its monthly revie' - of business conditions, that there were nearly 70 pockets of serious unemployment in the country, and some farmers were having difficulty in repaying loans.

One of the chief reasons for the growing demands for money, according to the bank, was to finance record spending on factories and machinery tnis year. Other factors, the bank said, were the needs of business to carry a higher level of inventories and to bolster working capital balances. With these large-scale demands for funds, the bank added, interest rates had climbed to their highest points since the spring of 1953. and on shortloan issues haa jumped to the highest rate since the “bank holiday” of 1933.