Heller Hints That Fed Should Expand Credit: Pointed Suggestion Patinan Critical
President KennedyÛªs chief economic adviser yesterday let drop a polite warning to the Federal Reserve Board to make good its implied pledge of ample credit.</br></br>Walter W. Heller, chairman of the Council of Economic Advisers, appeared before the House Banking and Currency Committee in the role of peacemaker between advocates of tight and easy money.</br></br>The perennial controversy flared anew last week when the FRB raised the rediscount rate from 3 to 3Û÷,å£ per cent to help stem the flow of funds overseas and reduce the NationÛªs deficit of international payments.</br></br>Mr. Kennedy sought to still the resultant outcry from friends of easy credit. He noted assurances ÛÏby both Treasury and Federal Reserve officials that they intend to do everything possible ... to avoid any reduction in domestic credit availability and any upward pressure on long-term interest rates while the economy operates below capacity without inflation.Û eHller repeated the PresidentÛªs statement yesterday and pointedly suggested that it may be necessary for the Fed ÛÏto allow free reserves to rise somewhat above recent levels."</br></br>The reserves of the NationÛªs commercial banks govern the amount of money they may loan to individuals and busi-