3 1/2% Money

The Federal Reserve Board last week gave permission to the Kansas City Federal Reserve Bank to lower its re-discount rate from 4% to 3 1/2%. This means that banks of the Tenth (Kansas City) Federal Reserve District which belong to the system, can borrow money for 3 1/2% and consequently can afford to loan money to individuals and concerns at a relatively cheap rate. The lowered rate will have one effect of helping the farmers of the Tenth District harvest and ship the season's crops advantageously.

The eleven other Federal Reserve Banks last week maintained their re-discount rate at a uniform 4%.