Evening star., 1950-10-15
Auto Dealers Leading
Growing Protests on
Tighter Credit Curbs

Gu LIldt tlle r0Q6TaI reserve BOarO
Immediately rescind It's order put
ting tighter curbs on installment
buying OF automobiles.
Protests against the reserve
boards restraints on installment
sales Of other products came from
other organizations.
Washington merchants, how
ever. were divided in their re-
action. Some saw the curbs having
little effect on their business.
Others said the restrictions would
affect business tremendously.
One merchant who said the new
rules would cut down the sale
OF higher priced merchandise
added that the only favorable
factor is that tie peak selling
season is coming on, with Christ
mas just a little more than two
months away.
IF this had happened in June
or July the effect would have been
disastrous he added.
Association Is .Astounded,'
Fred L. Haller. president of
the automobile dealers organiza-
ton. sent a telegram to the re-
serve board yesterday saying the
association was astounded at the
boards arbitrary and drastic
action" He said the industry had
not been given an opportunity
to present facts indicating an
alarming slowup in new and used
automobile sales
There new harsh terms" he
said, will result in a showdown
Of the entire automobile indus
try with grave effect on the Ma
tion's economy.
Mr.. Haller said that many deal
ers already are being forced to
lay off from rs to so per cent of
their employees as a result of the
declines in business due primarily
to the credit curbs which went
into operation on September 18.
This is the reserve boards Regu-
lation w and the stricter rules
announced Friday are amend
ments to the earlier ones. The
new regulations 60 into effect at
1901 am. tomorrow.
One merchant said that if the
curbS had been announced early
Friday afternoon the stores would
have been filled yesterday by peo-
pie eager to beat the new restric-
tions. There were some indica-
tions Of brisker than ordinary
business yesterday anyway.
Store VIII Be Open Today.
One company announced last
night that its television, radio and
appliance stores will be open to-
day. They said this will be for
the benefit of persons who want
to make purchases before the new
restrictions go into effect. The
company said 1t has been open on
Sundays in the past only before
Christmas for the convenience of
holiday shoppers.
The new curbs call for complet-
ing payments for automobiles in
15 instead Of II months. The
down payment Of one third Is not
changed. On television sets, ra-
dios. washing machines and other
household appliances the down
Is increased from Is to
Is per cent and the time limit
for completing payments is cut
from 18 to Is months.
For. furniture and rugs the time
also is cut from 18 to Is months
while the down payment is raised
from 10 per cent to Is.
Maury L. Nee. chairman Of the
Secretary Of Commences Retail
Advisory Committee, was one of
those protesting the new regu-
lations. He is head of the P. j.
Nee Co., Washington furniture
concern.
Fears Recession.
Mr.. Nee said he feared the new
might "precipitate q
recession" He said that while
at the retail level are at
record quantity. demand has been
falling and prices leveling of.
On the other hand, Philip Tai
bott, vice president Of Woodward
g. Lothrop department store. and
Ralph Goldsmith. vice president
and general manager of Lans-
burgh g. Bro. agreed that there
would be little effect on the busi-
ness Of the larger stores. They
said the credit policies Of the
stores are about in line with those
prescribed In the new rules.
Mr.. Talbot is chairman Of the
stores division Of the
and Manufacturers