Evening star. [volume] (Washington, D.C.) 1854-1972, 1948-08-08
InstoIIment Buying
Controls, Higher
Reserves Allowed
By ChoImers M. Roberts

Amid Democratic charges the
measure would do nothing to
ease the high cost of living, the
Republican-controlled Congress
yesterday rammed through a
two-point anti-inf1ation bill and
sent it to President Truman.
The measure authorizes the Fed
eral Reserve Board to revive the
wartime one-third down RUE on
installment buying and to raise the
reserve requirements of member
banks. 1t was stripped of an earlier
provision to raise the gold reserve
requirement.
The nearest any Republican came
to claiming the bill would have an
effect on spiraling prices was state
ment by House Banking Committee
Chairman Wolcott of Michigan that
if the reserve powers are used
"judiciously," the nation can stabi-
lize the dollar and the American
economy land bring down prices.
Barley Sharply Critical.
Senate Minority Leader Barley,
President Humans running mate in
November. said the Republicans had
done nothing about most of the
Presidents recommendations at the
special session, and, as result, they
ought to make their party theme
song Il Have Plenty of Nothing
as he quoted the song title.
The Senator had sought to SUBJ
stitute the price control, rationing
ALLEGATION. priority and rent con-
troll sections of the Presidents pro-
gram for the mild Republican mea-
sure. But the Senate voted him
down. So to 43. Earlier he had said
he did not know whether President
Truman would sign or veto the
measure.
One Republican, Senator LANCER
of North Dakota, voted with 80 DEM
ocrats for the Truman program
while Al Republicans we're Joined by
6 Democrats in opposing the meas
ures. Many of the Southern Demo-
Gratis. who voted for the program
however, have indicated on previous
occasions they oppose price CON-
trolls. At a party caucus yesterday
they had decided to back the pro-
gram as a party gesture since it OBJ
vlously had no change of passage.
Credit Faces Control.
Tho nnc canfin,, ~ fln Hill ~ -,
may have a direct effect on the
public is the consumer credit con-
troll measure. The Federal Reserve
Board will set the rules at some
future date, perhaps not for some
time, and is expected to return to
the wartime one-third down with
Is to ID months to pay the install
ments.
Most but perhaps not all of the
following consumer goods may &c
on the one-third down payment list
Automobiles, stoves, dish washers
ironerS, refrigerators. washing mach
ines, air conditioners, radios, phone.
graphs. sewing machines. vacuum
cleaners and house furnishings.
There has been no definite in
dication just when the Federal
Reserve Board may raise the bank
reserve requirements, a move de-
signed to tighten bank credit and
halt the imitation spiral by limiting
bank loans.
AS finally approved, the bill per-
mits the board to raise reserve re-
quirements on demand deposits by
4 per centage points and on time
deposits by liz points. The au-
thority ends on June 80. 1949, as
does the consumer credit control
authority.
McGrath Hits Measure.
Before the bill swept to a final
337 to II House passage, Democra-
tic National Chairman McGrath
who as Senator voted for the
Truman Barley substitute, issued
mimeographed statement denounc-
ing the measure.
He predicted that about three
months from now this same do
nothing Congress may we'll be back
in lame-duck session faced with
the job of repairing the damage
caused by its own inaction at this
special session and also faced with
a sweeping electoral reputation Of
that inaction."
Senator McGrath attacked the
Republican presidential candidate
Gov. Dewey of New York, because
he refused to take any public stand
on an anti-infation program The
Senator said the only remedy left
the public is to elect President
Truman and a Democratic Congress
in November"
He added prices may we'll con-
tinue to rise" between now and cleo.
{ See INITIATION, Page A-9D
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