Evening star., 1950-09-09
Controls
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biles, with the balance to be paid
off within 81 months.
Down payments of at least Is
per cent and Is months for pay
ing the balance on appliances
refrigerators, food freezers, radio
or television sets, monographs.
cooking stoves, ranges, dish
washers, ironers, washing ma
chimes, suction cleaners. air-con-
ditioners and de-humidifiers.
Down payments Of at least 10
per cent for furniture and rugs
and 18 months for paying the
balance.
Down payments of at least 10
per cent and 80 months for paying
the balance for home repairs,
alterations and improvements.
Exceptions Are Given.
Exemptions were given for in
stallment credits for automobiles
of more than $4,000, and other
installment credits Of more than
$2,5OO. .t-.
In line with the boards policy
of placing fewer restrictions on
small credits, the reinstituted
Regulation w" does not require
down payments on articles cost
ing less than 500. Unlike the
former regulation, however. the
time for paying for such purchases
is limited.
Installment loans for the pur-
chase of any of the articles listed
in the boards order carry the
same requirements as in the in
stallment sales. In other words
an individual making a bank loan
for the purchase Of an automobile
or some appliances would be re-
quired to meet the requirements
of down payments and paying off
the balance.
Charge accounts and single pay
ment purchases are not affected
by the order.
r. M. Evans, a member of the
Federal Reserve Board, said the
credit curbs represent only one
of the curbs that will be needed
Gin doing the job" of building
up the country's defenses and
warding off imitation at the same
time. Adequate taxation and
other steps, he added, also would
be required.
May Become Stricter.
Mr.. Evans said the board is
ready to issue even stricter con-
trolls, "if the situation worsens-
and we hope it won't" BY that.
it was explained. the board is
prepared to tighten up the regu-
lation by requiring higher down
payments and shortening the time
for payment Of the balance. The
board also, it was said, could ex-
pand the list of items to include
such things as clothing and many
other products.
The board member emphasized
the order is not intended as "a
knockout drop" on installment
buying. but as a brake on the
recent upswing in installment
purchases on low credit terms.
Overall installment credit has
scared above $40 billion since the
buying rush began after the out
break Of fighting in Korea.
The board said the new credit
terms are much the same as
those in effect when the last con-
troll orders expired IA months ago.
In some respects they are tighter
since they now apply to home
repair credit and limit the time
for paying off such costs to 80
months as compared with the cur
rent FILA requirement of 36
months.
Penalties For Violators.
The terms were described as
substantially tighter" than those
now prevailing in the sale of
automobiles and many other items.
The board said it has received
reports that, in many recent sales
of appliances and furniture, down
payments of only 10 per cent
were required and "in many cases
only token or no down payments" !"
Under provisions of the home
front mobilization bill violations
OF the boards order are subject
to penalties as high as a $4,000
fine and a year in jail.
The board was able to act
promptly after the President
signed the economic control legis-
lation since the measure itself di-
rected the board to exercise these
powers.
Lie OIL was signed quietly at
the White House without any
ceremony. A small note an
nouncing the Presidents approval
OF the legislation was handed to
reporters and there was no indica-
ton OF other control steps that
will be taken.
"A May Invoke Others.
The legislation gives the Pres
ident authority to impose wage
price-rationing controls, but there
is no indication they will be in
voked in the near future.
1t also provides for the alloca-
ton OF scarce materials needed in
the defense effort, priorities for
defense orders, Government loans
and loan guarantees to expand
production, control of inventories
to prevent boarding the requis-
itioning of plants and equipments.
Steps to channel scarce mate
rials into defense work and the
use of priorities to speed up pro-