Federal Reserve's Chief Defends Credit Curbs
Chairman William McChes-ney .Martin Jr. yesterday defended the Federal Reserve System's credit restraints as a needed curb on inflation.</br></br>Despite questioning CongressmenÛªs pleas to ease credit, Martin indicated that the current economic prospect warranted no change in policy.</br></br>ÛÏThe year is coming to a close with demands still outpacing savings,Û he told a Joint Economic Subcommittee, ÛÏwith personal income at a new high . , . and international disturbances that could add to further overstraining of our resources.Û</br></br>This calls for ÛÏprudence and restraint on the part of Government, business, finance, la-1 tor and agriculture,Û Martin ,said.</br></br>He was flanked by five of the six other Reserve Board governors and five Reserve Bank presidents who make up the SystemÛªs Open Market! Committee. They guide the: ReserveÛªs buying and selling! of Government securities which eases and tightens credit.