Evening star., 1942-08-23
Nugent Credit Plan
Runs Into Opposition
On Big Scale
Many Executives Doubt
Poy-in-Advonee Idea
Will Be Pructiced
Bv HAROLD b. ROGERS.

which would provide for buying fu-
ture goods by paying installments
in advance.
Rolf Nugent. chief of the require
ments branch of the Office of Price
Administration, has disclosed his
proposal only informally, and ha.
not yet completely outlined it in
writing. But, he told The Star, in
an interview yesterday, he has had
widespread support from many
manufacturers, who are urging him
to come out in the open with all de-
tails, They are anxious, he said. tc
have it put in effect. The plan i.
supposed to be a step in the war on
imitation.
On the other hand. considerable
opposition already has sprung up in
business and financial circles. which
feel from preliminary view of the
proposal that 1T won't work"
Outstanding among the opponents
has been the Consumer Banking
Institute of 1925 Connecticut ave.
nue. NV, which yesterday issued q
statement claiming widespread sup
port for the opposition. Installment
sale specialties, the institute said
representing nationally known au-
tomoblle and home appliance manu-
facturers, credit financing institu-
tlons and department stores were
SAID to be "unalterably" opposed to
the plan as being impractical.
Stout Joins Critics.
Among the persons quoted by the
institute as saying the plan won t
work" was Richard H. Stout of this
city, president of the Morris Plan
Bankers Association. Asked to ex-
plain his view, Mr.. Stout told The
Star: I'm for any plan which will
accomplish the objectives of stop
ping imitation, but the Nugent plan
is open to grave doubt.
1t would be like buying pig in
poke" He raised the objection
that the purchaser who saved his
money IN advance through the Nu-
gent plan to buy an automobile, for
instance, might be among so many
customers in such class that he
could not get delivery on his new
car after the war for MANY months
Others listed by the Consumer
Banking Institute as saying the plan
won't work" are: Parker H. Erick-
sen, personnel director Bendix Home
Appliances, South Bend, Ind: H. B.
matthew's. vice president. CONNER
clal Credit Co, Baltimore; R. H
smith, assistant treasurer, Mont
gomery Ward & Co., Chicago: Leo
j. Heer, vice president, National
Retail Furniture Association, and
I, V. Houser, vice president, Sears
Roebuck & Co., Chicago.
Objections Outlined.
Outlining some of the objections
raised, Consumer Banking Institute
said: Women are far too shrewd
10 buy anything they have not seen
or tested; it will not make a dent
IN the imitation spiral, for only a
stif1 retail sales tax and curbs on
all wages and prices can do that.
1t is impracticable to expect buyers
TO buy when they don't know what
will be delivered or when.
One prominent executive of one
OF Washington's largest department
stores, who did not want to be pub
licly quoted, said he was personally
against the proposal.
A prominent Washington banker,
who said he knew only the general
idea of the Nugent proposal, said
regular savings or United States
bond purchases would be more prac-
tlcable to accomplish the same re-
suit. The installment plan in re-
verse he characterized as too un-
orthodox to get anywhere"
Works on Details.
Mr.. Nugent said: Il am working
on detailed statement of the plan
which I hope to have available soon
IT deals with consumer credit. This
plan is a natural complement to
regulation of consumer credit. The
whole scheme, however, must be
geared to tapping something that
Is not exactly saving, and we dc
not want to interfere with the Gov
ernment's War bond sales cam
paigns. ! have had urgent requests
from many manufacturers and dis
tributors to perfect my plan. These
requests come from those making
automobiles, boats, sewing ma
chimes, household devices, such a,
refrigerators, vacuum cleaners anc
other things.
Take a customer, for instance
who wished to buy an automobile
after the war He would like te
buy a car costing about $1,000. HI
would pay regular monthly install.
ments in advance until he had &C.
cumulated about 5000. That's al
he would have to pay for his car
He might have to wait for it. Blu
re would have it paid for in ad.
vance and receive a discount or
the price. And in the meantime
through my plan much of the none,
he paid in would be turned ovel
for use by the United States Treas
ury."
Plan Faces Hard Fight.
The Consumer Banking Institute
In its analysis of the plan, says "hu.
man nature being what it is and The
American public long welded to thu
practice of buying first and paying
afterWard the plan undoubtedly
faces a hard uphill fight.
1T will be hard for the prof1igatt
TO resist temptation to spend fol
present enjoyment. 1t will be hare
for the newly employed to postpone
still further some of the pleasure
they have long had to forego.
1T viii be hard for the frugal II
keep from weighing the possibilit
that they may not want the articl
by the time it is available or to over
look the possibility that they ma,
be buying a pig in poke"
Leave for Vacations.
Several local building and LOAF
leaders are out of the city.
Carl j. Bergman, president o
Washington Permanent, is at Ocean
City, N. j.
Chaplin B. Bauman, president 0
Oriental Building leaves today 70
yocatiop al Shellfield on the p0