The Wyandotte herald. (Wyandotte, Mich.) 1879-1943, 1941-09-05
CONSUMER
CREDIT LAW
NOW IN EFFECT

Consumer credit regulations which
We're The result of President RoOse-
veltS executive order of August 3. went
into effect September l. The boar OF
governors Of the Federal ReServe SyS>
lem sets forth the necessity for and
the purpose of the regulation of con-
sumner credit, aS follows:
l. A large volume of credit is being
devoted Ia financing and refinancing
purchases Of CONSUMERS goods and ser
vices through extensions Of credit that
usually are made To individuals and to
Il large extent are on an instanment
payment basis
> The conditions under which such
credit is available have an important
influence upon the volume and timing
of dene nd. not only for the particular
goods and services purchased on credit
hut also for goods and services in gen.
eral.
3. Liberal terms for such credit
tend to stimulate demand for cOnSum-
ers' durable goods the production of
which requires materials, skillS and
equipment needed for national defense.
t. The extension of such credit in
excessive volume tends to generate in
stationary develOpments of increasing
consequence as the limits of product
i've capacity are approached in more
and more fields and 90 hinder the &C
cumulatiOn of savings available Tor a.
nancing the defense program.
.. The public interest requires con-
troll of the Use of installmen: credit
for financing and refinancing pur-
chaSeS Of consumers durable goods the
production of which abSOrbS resources
needed for national defense. in order
TAI TO facilitate the transfer OF pro-
ductlve resources to defense industries,
(b) to assist in curbing unwarranted
price advances and prOfiteering which
lend to result when the supply OF such
goods is curtailed without correspond
ing curtailment Of demand, (c) to as
Sist in restraining general initiation
arv tendencies, To support or supple
ment taxation imposed TO restrain
such tendencies, and TO promote the
aocumula ton of savings available for
financing the defense program, (d) to-
aid in creating a backlog of demand
Tor consumers durable goods, and (e)
10 restrain the development of a con-
sumner debt structure that would re-
press effective demand for goods and
services in the pOst-defense period
Il. In order TO prevent evasion or
avoidance Of this order and such regu-
latiOnS as may be prescribed To effectu-
ate its purposes, means should also be
available for regula ting the use OF
other inStallment credit and other
forms of credit usually extended to
consumers or on consumers durable
goods
&. 1t is appropriate that such Gre
dit be controlled and regulated through
an existing governmental agency which
has primary responsibilities with re-
spect to the determination and admin
istratiOn of national credit policies.
There will be changes from time to
time in these regulations, particularly
in the list of consumers durable goods
covered by the regula tons, in the size
Of the minimum down payments re-
quired, and i'll the maximum length
permitted for inStallment contracts.
A partial list of consumers durable
goods affected by the regulations fol-
lows
Automobiles, aircraft (including gil
derS), power driven boats, OutbOard
motors, motorcycles, mechanical refri-
geratOrS, washing machines, irOners
cooking stoves and ranges, heating
stoves and space heaters, air cOndi-
TONERS, sewing machines, radio, phOno-
graphs. musical instruments, furnaces,
water heaters, plumbing and sanitary
fixtures, new household furniture
The net result to the average in
Stallment purchaser will be that q
larger down payment will be required
and the length of time for making pay
ments considerably shortened