Evening star., 1950-10-08
Controls May Force
Payments in 30 Days
On Charge Accounts
BY Francis P. DouqIos

4Ac NdtAOu DOOIl Lldy See re-
instatement Of the World War II
regulation requiring charge ac-
counts to be paid in 80 days Or
additional credit to be shut of.
This would be part of a tighten
ing OF the Federal Reserve
Boards consumer credit controls
that went into effect September
18. Such step is now under
discussion as the result of the be-
lief that the controls invoked last
month are not strict enough to
provide one Of the necessary
brakes in imitation.
Stricter controls under the Fed
eral Reserve Boards Regulation
w are believed to be about q
month of. More imminent Is
Regulation X to control private
credit for home building. This is
expected to be issued this week.
The real estate credit regula-
fioI. has been the subject of in
tensive work by the Federal Re-
serve Boards real estate Office and
officials of the Housing and Home
Finance Agency.
Job Still Unfinished.
There has been strong pressure
to complete the job. 1t was
learned, but the technical COM
mittee working on 1t has not
yet reached a final conclusion on
a full schedule Of required down
payments on homes and on the
length Of time the loans may run.
The final plan must be ap-
proved by Raymond M. Foley,
administrator Of the Housing and
Home Finance Agency. It also
must be integrated with the real
estate financing policies of the
Federal Housing Administration
and the Veterans Administration.
The agencies intend to slow
down home building sharply
without stopping it COLBY max
ing considerably sitter down pay
ments necessary on newly built
houses, particularly the high
priced luxury" type.
Advance reports from Govern
ment and industry sources point
to these requirements: For vet
Grams, 10 per cent or more down;
for non-veterans. Is to 80 per
cent on houses in the moderate
cost brackets, perhaps so per cent
on luxury" homes.
Time Limit Studied.
There also were reports that
Regulation X" may limit payoff
time to 20 years and require
higher instalment payments for
the first five years.
Earlier built houses will con-
tinue to be bought and sold with
out Federal restrictions on the
mortgage arrangements. It's un-
likely. too. that the restrictions
will apply to new homes on which
frm loan commitments are OBJ
tanned before the order comes
out.
While the impact will fall first
on potential buyers Of new houses,
it is expected to reach far beyond
them and be felt throughout the
economy. .
The steady output Of new
houses has been providing jobs In
plenty-over million persons
held construction contract jobs In
August-and an ever expanding
market for sellers Of building ma
terials, furniture and rugs, and
household appliances.
Construction Costs Up.
Home construction costs, on the
word Of Government and indus
try men alike, have risen about
8 per cent since the Korean fight
ing outbreak June Is. But a con-
struction cutback that went deep
might produce reverse effects by
relieving buying pressure on ma
terials.
The installment credit regula-
tions in effect for less than
month provide for down pay
ments Of one-third in the pur-
chase Of an automobile. Is per
cent for most household appli-
ances, 10 per cent for furniture
and for residential repairs and
improvements. The payments
must be completed within 81