Adding "off-budget" financing by federal credit agencies to the stated deficit, the Federal Government borrows about 35% of all the lendable funds in the country.
To the relief of bankers and business men, the Federal Reserve Board last week moved to ease the money market and increase the supply of lendable funds.
In effect, the board "froze" some $650 million in lendable funds, which translates into a withdrawal of more than $2 billion in credit from the economy.