Word: effective
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Dates: during 1960-1969
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...Colonel "Shorty" Powers, sometime Voice of Project Mercury, describing Gus Grissom's first landing? "The drogue parachute is deployed, and the astronaut has a visual indication of it" (The drogue chute is open, and Gus can see it), and "The astronaut has indicated that he will proceed to effect egress" (Gus says he's coming...
...Bill Martin, who values his independence more than his popularity, bravely took steps that the President openly criticized. At Martin's urging late in 1965, the Fed sought to defuse demand by raising the discount rate from 4% to 4½%. The discount rate is, in effect, the interest that the Fed charges to its member banks for borrowing from the Federal Reserve System. Because it is the rate upon which all U.S. interest rates are based, the Fed's hike effectively raised the cost of borrowing...
...ante up in 1966. Second, in June, the Treasury ordered corporations to pay their withholding taxes for employees twice a month instead of only at each month's end. While these two actions did not really boost taxes but simply made for earlier payment, they had the cosmetic effect of temporarily making the budget deficit appear smaller than it was. Corporations borrowed billions from the banks to pay for the speedup. In effect, the banks had been obliged to finance the narrowing of Johnson's budget deficit...
...hedge-borrowing and money hoarding swept the country. Figuring that money would become steadily scarcer and costlier, corporate treasurers borrowed more than they needed. In June, the Chase Manhattan Bank raised interest rates on most consumer loans for the first time since 1959, to 5½% "discounted" (in effect 10½%), and other banks quickly followed. Bargain-hunting consumers rushed to borrow at 5% on their insurance policies, and insurance executives appealed to banks for new reserves - putting more pressure on the banks...
...municipal bonds from their portfolios at great loss. Bond prices crashed and bond yields soared. A year before, long-term municipal bonds had been selling at $1,000 and paying $40 in annual interest; in late 1966, the same bonds were down to $800 but still paying $40 - in effect, yields rose from 4% to 5%. New York State had to pay 5.7% to float one tax-free issue; Baltimore, Louisville, Tulsa and Arlington, Va., canceled others. So queasy and depressed was the bond market that several corporations called off bond issues. Moneymen tossed in their sleep, worrying that...