The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1920-10-23
Putting the Auto in Luxury
Glass Again Agitated
By l.. j. FAULKNER.

There is afloat that movement will soon
be started to automobiles under the head of Luxury
We thought that this bugaboo" bad been killed once
and for all, but it seems this ia not the case.
w. p. q. Harding governor OF the Federal reserve
board recently stated the attitude Of the Reserve Board
relative creds Among other things he said that after
talking the matter he Federal Reserve Advisory
Counc decided that bankers should be cautioned to use
discriminating judgment in granting credits, and
that they should give preference to loans OF an essential
character rather than those OF non essential we fet
then and do today that the advice sound, and the
country has been greatly benefited by the action taken
Again quoting Mr.. Harding-''We stated then, and
repeat today that the Federal Reserve Board Will not
us1take to give any definition of essential and non
essential loans Now the Federal Reserve Board, while
not advising bankers to whether automobiles are
essential essential have stated through Mr. Harding
this opinion: 'But while have never undertaken to
define essential it is automatic and all will concede that
there are four great fundamental essentia-ood fuel
clothing shelters and in order to provide these necessities
transportation looms up absolutely important factor
Mr. Harding also committed himself as to the essential
value of automobiles in the following statement: II have
been banker and if were one today this would be my
policy regardless of whether this industry was essential
to the particular locality in which might be Located,
would look out for my good customers III were satsneo
with the sovency of the dealer and with the value OF his
endorsement and if he did wish excessive line Of
credit, would take his Offering" In other
words Mr. Harding would not turn down automotve paper
because he felt that the automobile was not essential but
it would be due entirely to the credlt stanohg Oh ue
offerer of the note.
This is the whole proposition and 1T Is certain the
Federal Reserve Board stated that they con-
sdered the automobile non-essenal or that 1T should
come in the Luxury Class
Mr.. Harding states still further: Nothing has been
done by any Federal Reserve Bank that reflects IN any
manner upon any of the great industries In this country
1t would be very serious thing for any body OF men to
undertake to make attack upon to destroy business
that is as firmly rooted and which has so many OF the
ELEMENTS OF ESSENTIALLY the automobile bust
ness has the face of this opinion upon what Judgment
can be based the classification of automobiles as Luxnry'
1t is safe say and the statement backed up by STATISTICS
that twohirds of the automove vehicles In the United
TODAY are used at least part of their time and
the whole of their time, for ABSOLUTELY ESSENTIAL
PURPOSES CONTRADICTORY TO OUR ECONOMICAL
WELFARE.
There is thing certain that II TINS at1emp' 10 taX
automobiles as Luxury is brought to focus there will
be howl going up from at least 1923 664 automobile
owners this being number registered in the United
States in 1919 that cannot be "mutfled.''