Evening star., 1947-08-08
Truman Accepts
Limit Of Nov. |
On CreditCurbs
But Regrets Lack
Of Legislation for
Indefinite Control
ENDING OF CREDIT CONTROLS
brings warning from bankers.
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O., t>.~-l

Aeo waiting lIOIu DdTkeTS.
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By Joseph A. Fox
President Truman today signed
legislation continuing curbs on
installment buying until Novem-
Der l, but expressed regret" that
a time limit had been applied to
the controls.
1T Is unfortunate that the Con-
gress did not provide for restraints
on installment credit in order to
diminish inflationary pressures aris-
Ing from this source" the President
said in statement in which he
recalled that the Federal Reserve
Board and the Council of Economic
Advisers had urged that the con-
trolls be kept as long as necessary.
At present, under a presidential
order. down payment of one third
and a 15-month limit on the time
IN which the credit must be liqui-
dated Is in effect on such items as
automobiles, radios and refrig-
orators.
Invoked Wartime Measure.
The controls were invoked as q
wartime measure, Mr.. Truman had
said that he would not care to re-
tain them in peacetime in the
absence of specific legislative di-
rective, which he hoped Congress
would provide.
In his statement today, the Presi-
dent said:
Il have today approved the joint
resolution of Congress authorizing
continuation of regulation of con-
sumer installment credit until No
vember l, 1947. I regret that the
Congress did not see fit to follow
the recommendation of the Federal
Reserve Board and of the Council of
Economic Advisers. in which I fully
concurred, by enacting legislation
to provide for continuing as long
as necessary regulation of con-
sumner credit as means of helping
to promote economics stability. It
is unfortunate that the Congress
did not provide for restraints on
over expansion of installment credit
in order to diminish inflationary
pressures arising from this source.
Continuation for the next three
months of present controls as now
provided under Regulation w of
the Federal Reserve Board, has.
however, been permitted and implied
by the Congress and this is prefer
able to immediate abandonment of
these restraints. For that reason I
have signed the joint resolution"
Urges Self Restraint.
mot only during the next three
months while the controls. remain
in full force and effect, but for an
indefinite period thereafter 1t will
be in the public interest for every
and financial agency ex.
tending installment credit to avoid
undue relaxation of terms. It will
be far better to reduce prices rather
than to relax terms in seeking new
customers. Self restraint on the part
OF those who use credit as well as
upon the part of those who extend
it will reduce the danger of an over
expansion of installment credit
which would inevitably be followed
by severe contraction, thereby con-
tributing to unemployment and to
reduced production"
Truman Rejects Bank Measure.
President Truman invoked the
pocket veto for the eighteenth time
since Congress recessed today when
he rejected a measure which would
waive the statute of limitations to
enable the Fidelity Trust Co. Of
Baltimore and other companies to
obtain refund of bankers special
taxes which the Supreme Court
held later had been enormously coll
lected.
A similar measure was vetoed in
1885 by President Roosevelt. Both
the Court of Claims and the Bureau
OF Internal Revenue held against
the banking concerns in their effort
to obtain reimbursement.
In his veto the President said:
THE Congress has determined
that 1t is sound policy to include
in the revenue laws statutes of linz
itations, by the operation of which,
after certain period of time, it
becomes impossible for the Govern
ment to collect additional taxes or
for the taxpayer to obtain a refund
Of an overpayment Of taxes. This
bill selects special group of tax
payers for preferred treatment by
excepting them from this policy.
The whole body of Federal taxpay.
ers is thus Disseminated against"
Sugar Quota Bill Signed.
The President also signed the con-
troyersial sugar quota bill which
cuts down the amount of sugar that
Peru and the Dominican Republic
can sell to the United States and
in effect cuts by approximately one
half the amount that Cuba has been
selling to this country
The Cuban cut was effected by a
provision which makes the amount
OF imports from that country de-
pendent on Cuba's satisfying GER
tain private claims held by large
American corporations.
The action on these measures left
the President but four bills to handle
of the approximately 200 left with
him by Congress.
All of these are expected to be
cleared away today, Press Secretary
Charles G. Ross said.
Principal Of Central High