Evening star., 1946-11-16
Reserve Board Eases
Controls Over Credit,
Effective on Dec. |
Rule on Charge Account.
Lifted in Time for
Christmas Buying Rush
By IN. A.,oe;o,sd p,..s

The Federal Reserve Board is
ending, in time. for the Christmas
buying boom, all controls over
consumer credit except install
ment purchases of autos, radios,
furniture and nine other kinds
OF durable goods.
Effective December /, the board
eliminated requirements that charge
accounts be settled IN 10 days and
single repayment loans in 60 For
the first time in flve years. parties
to these deals now may work out
their own terms. scs..
Restricthns also viii no longer
apply to time payments on durable
goods involving credit of less thar
$50 or more than $4,000, the boart
announced last night.
On sums in between those limits
the board still will require one
third down payment on autom0biles
refriaeratOrs. cooking stoves an,
ranges, washing machines. ironers
dishWashers, air corditioners, radio
and phonOgraphs. sewing machine,
and uactIum cleaners.
l5 Months to Pay for Cars.
However, buyers may have /.
months to pay for any Of thess
articles instead Of the present II.
month limit ON all but automobiles
where the 15-month term already i
In effect.
On furniture and soft-surfacs
fioor coverings the down payment
will continue to be 20 per cent. The
payment time on these also was
extended from II to Is months.
The revision of controls also SIM
|plihed credit procedure. eliminating
the requirement that a statement OF
the transaction be given to the GUS
toner.
In announcing the relaxation, the
board indicated that further action
of the kind would be Forthcoming
later, declaring, "When present In
fiationary pressures have subsidized
the terms Of the regulation would
need to be modified further"
Factor Against Recession"
Designed to hold down price
boosting pressures when civilian
goods were scarce, the controls were
put in effect even before Pearl Har-
Dor under authority of a World War
I act, but In mild form that was
intensified after World War II be-
gan.
The Reserve Board for some time
had been considering relaxing the
controls after Christmas, when il
was thought the peak of the buying
boom would have passed and freeI
credit might help insure against a
recession" often predicted for next
year.
The decision to advance the tim
ing to before Christmas was re-
ported to have resulted from the
sudden f1inging OF of price controls
and rapid turnaway from q con-
trolled economy.
Another factor of possible infiu-
ence was the election victory of Re-
publican Congress members who
had demanded removal Of all con-
trolls despite the Reserve Boards
suggestion that the control author
ity be made permanent.
Boon to Retailers Seen.
The board acknowledged that
there was sharp controversy among
lenders and merchants over per-
rnanent control and said ..the issue
should be decided by the Congress. .
In New York, the National Retail
Dry Goods Association said the
boards action in modifying rather
than abolishing Regulation 4W' is
in line with the views Of many re-
tailers.
The association added that free
ing of charge accounts from Gov
ernment restrictions should be q
definite boon to retailers and their
charge customers ,ecially during
the Christmas EeS on"