Evening star. [volume] (Washington, D.C.) 1854-1972, 1948-08-17
Credit Control
Rules Awaited
As Truman Signs
InstulIment Action
Due This Week; Bonk
Curbs to Be Delayed
Tert OF Truman Statement on
Page A.

The two-point credit control
program voted by the special
session OF the Eightieth Con-
gress was law today, coming
into effect with the anticipated
criticism by President Truman
against its Republican sponsors.
Providing only for Tightening of
bank reserve requirements and res
toratiop of wartime checks on in
stallment buying, as against the
full-scale price-wage curbs advo-
Gated by the President. the measure
was signed by the Chief Executive
late yesterday. He declared that it
represents only a "tiny fraction of
what we need ito fight imitation,
and constitutes but feeble re-
Spouse" to demands from the people
for strong measures to restrain the
cost of living. The Republicans i'm
mediately responded in kind.
Rules Due Late This Week.
Administration is in the hands of
the Federal Reserve Board which
probably will lay down some of the
rules of procedure later this week
probably Friday. The regulations
will not be effective until 30 days
after PRONUNCIATION.
The underlying aim of the meas
ure is to make it harder for people
to buy expensive things ION time"
or to borrow money. The idea is to
slow down buying until production
up with demand, and pre-
sumably brings prices down, and
secondarily, to hold back money
that might otherwise be spent now,
and ease possible drop in business
later.
Federal Reserve officials expect to
issue the rules for installment buy
ing, including size of down pay
ment and payoff times. During
the war, the rule on most household
items-such as freezers and washers
was a third down and IL to is
months to pay.
Delay on Bank Controls Seen.
Reserve board officials said it was
unlikely that bank credit controls
would be invoked Immediately. They
are reported generally to regard
those provisions as standby powers
to be used as needed, and to agree
with the view expressed by Senator
Flanders, Republican, of Vermont
that 1t would be unwise to apply
the credit brakes too fast.
The new measure increases by III
per cent points the reserve require
ments on time (savings) deposits
for Federal Reserve member banks,
with an increase of percentage
points in the reserves behind de-
mand (checking) deposits. Mr.. Tru-
man asked increases of 4 and 10
percentage points, respectively.
This is intended for a moderate
up of bank credit
At present the Federal Reserve
requires a per cent reserve on
time deposits and from IA to 26 per
cent on demand deposits, depending
on the location of the bank.
Second Attack on Congress.
President Truman's statement on
the imitation bill was his second at
tack on Congress in as many days.
Earlier, in the midyear review of
the budget, the President assailed
the tax-reduction bill passed over
his veto and said 1t would put the
Government 81 SOC, 900 900 in the red
by next June 80.
Republicans called that one
political" speech.
In the imitation statement, the
President said that failure of Con-
gress to comply with his request
for broader authority to deal with
rising prices is final proof of the
determination of the men who con-
trolled the Eightieth Congress to
follow a course which serves the
ends of special privilege rather than
the welfare of the whole Nation"
Mr. Truman said Congress an
swered mo" to his program, but
had no program of its own.
They made excuses and called
names and argued about who was
to blame for imitation, but they did
nothing effective to control it, he
asserted.
They passed bill limited to one
subject only credit controls
which Is but tiny fraction Of what
(See IMITATION, Page A-5.)