Evening star., 1941-09-09
D. {. Bankers Receive
Interpretations Of
New Loan Rules
Richmond Reserve Bank
Answers Growing Pile
Of Questions
By EDWARD C. STONE.

pretationS of the new rules govern
ing the extension of consumer credit,
as outlined by the Federal Reserve
Board. The interpretations are sent
out by the Federal Reserve Bank of
Richmond.
The interpretations cover inquiries
from banks and all other financing
institutions in this and other dis
tricts. Bankers report that new
questions come up every day regard
ing application of the new rules.
They report that the rules have not
caused any serious reduction in
loans so far, although they are
obliged to ask applicants a host of
questions before a loan can be
granted. Just how the loan will be
used is one of the big issues in con-
nection with each application.
Ruling on Home Loans.
One of the most important inter-
pretations relates to home modern
ization loans which were planned
before the new rules went into effect.
In this case, the Reserve Board says
THAT in cases where lenders made
written commitments to finance
home modernization loans upon
completion of the work, and prior to
the issuance of regulation w, such
loans may be financed pursuant to
the pre-September commitment.
In such cases there is no effort to
evade the regulation and it makes
no difference whether the loan is
installment sale credit or install
fnent loan credit.
"a Another Interpretation relates to
sa contract for modernization loan
IN a building, where written COM
smitment was made under date of
2, the work to be COM
uleted on October 10, the loan to
she made on the date of completion.
ID calculating the 18 months,
maximum maturity permitted for
The credit, the Reserve Board says
the later date, October 10, should be
4aken for the base. This would
Mold true whether the credit is in
etallment sale credit or installment
sloan credit.
s Mail Order Regulations.
The Reserve Board holds that in
Eases where orders were received by
mail order houses before September
II but not filled until after that time,
Me orders may be filled under the
4erms of the catalogue and are not
tubject to regulation w,
Is The classification household furni-
,fure includes mirrors, unpainted
furniture, stools, kitchen or break
fast room sets, porch tables, chairs
md swings and kitchen cabinets, but
does not include pictures or
Eaothes hampers. Such articles as
Masters, food mixers and roasters
ere not included.
s Turning to renewals, revisions and
consultations or "add-ons,' the
board says that any installment
credit which was originally extend
ed before September l may be re-
newed or revised. once on or after
September 1 on any terms which
the registrant would have granted
in good faith in the absence OF
the regulation.
Larger Crop Yields Forecast
Agricultural prospects for most
fifth district crops improved in
July and early August, and about
half of the crops promise increased
yields over those of 1910, according
to the Federal Reserve Bank of
Richmond's current review.
However, the leading cash crops,
tobacco and corn. show materially
reduced yields this year, and Irish
potatoes and peanuts also show de-
clines.
Fruit prospects, on the other
hand, are much better than year
ago, with both apples and peaches
exceeding both 1910 and 10-year
average yields. Grains turned out
well, and larger crops of wheat, oats
and corn are forecast for 1941 than
for 1910.
The price outlook for farm prod
ucts is quite favorable, both be-
cause of a stronger consumer de-
mand and higher Government pay
ments to farmers in the form of
loans on crops and soil conserva-
ton payments.
Check Tax Dropped From Bill.
The Senate Finance Committee
revision of the tax bill which is now
before the Senate for passage ig-
nores the Treasury's request for a
2-cent check tax so that this provi-
sion is no longer in either the Senate
or House bills.
Bankers were much pleased when
the House Committee left it out and
still more gratified with the Senate's
action ending further considera-
ton of the tax on checks in either
branch of Congress.
Members of the Senate committee
stated that the largest amount of
opposition to the check tax came
from the public, the people who
would draw the checks and have to
pay the tax.
The Senate Finance Committee
has left the proposed 20 per cent tax
on safe deposit boxes unchanged.
Heard In Financial District.
George M. Ferris, president of the
Washington Stock Exchange and
head of the investment firm of Fer
ris, Exnicios & Co.. has returned
from his vacation, which he spent at
Cape May.
John M. Christie, president of
Washington Chapter, American In
stitue Of Banking, and assistant
cashier, Riggs National, has returned
from a camping trip in the Maine
woods.
Miss S. Winifred Burwell, assistant
trust officer of the National Met
ropolitan Bank, and Mrs. Helen
r. Sharpe, secretary of the Bank of
Commerce & Savings, will attend
the annual convention of the Ma
tional Association of Bank Women
In Chicago late this month.
T. Grant Ridgely, assistant man.
ager of the Southeast Office of the
City Bank, has gone on his vaca-
ton down Chesapeake Bay.
Eliot H. Thomson of the Washing
ton Loan & Trust Co. underwent an
operation at the Washington SAM