Evening star., 1950-09-18
Anii-Hoarding Order,
Consumer Credit Curb
Become Effective
Bv Cecil Holland

By Cecil HoIIond
A Government order prohibit
ing boarding or excessive accumu-
lation of scarce materials by in
dustry went into operation today.
It is part of a broad program for
building up the country's defenses
and warding OF imitation.
The order was issued last night
by the Commerce Departments
newly created National Production
Authority. It covers a wide range
Eof material, including steel, hm-
ber, industrial alcohol, rubber and
such building items as cement,
gypsum board and sheathing.
At the same time, the Federal
Reserve Boards order on consun-
er installment credit - another
part of the Governments vast
control program-also became ef-
fective. It imposes tighter restric-
tions on installment purchases of
such things as automobiles, nome
appliances and household fur
nishings.
In issuing the inventory con-
troll order, which applies only to
industrial users and businessmen
and not to consumers, William
Henry Harrison, administrator of
the National Production Author
ity. said:
"The purpose of the order is
to make clear that the National
interest demands there be no ac-
cumulation of materials beyond
what is needed for immediate pro-
duction. 1t is the responsibility of
both the purchaser and the sup
plier to assure that the spirit of
the order is lived up to-"
The inventory order as well as
that applying to consumer INSTALL
ment purchases are expected by
Government officials to slow down
credit buying and ease upward
pressure on prices. Officials have
made it clear that even tighter
restrictions may be issued if cir
cumstanceS warrant.
The inventory order, broader in
some respects than was antici-
pated. is still not as severe as the
controls in effect during World
War II.
1t provides that the listed scarce
materials cannot be accumulated
beyond a practicable minimum
working inventory" and defines
that as follows: 1.-THE smallest
quantity of material from which a
person can reasonably meet his
deliveries or supply his services on
the basis of his currently sched-
uled methods and rate of opera
tionS."
During World War II such con-
trolls usually specified a 6O-day OF
other strictly defined supply. OFF,
cials said the current favorable
supply situation did not warrant
tighter and more specific controls.
The order does not require the
disposal Of excessive stocks of the
materials on hand. However, it
was pointed out by the NPA that
such stocks are subject to requisi-
ton. Moreover, w. Stuart
Symington, co-ordinator of the
overall Government control pro-
gram. has warned that plans are
being drafted to combat "chisel-
ers" and "prof1teers" in the new
arms production program.
The order is enforceable by
penalties up to a year in prison
and $4,000 fine or both and
applies not only to the purchaser
but also to the seller of the ma
terialS.
It applies to:
Building materials - cement,
gypsum board, sheathing and lath.
Chemicals - Industrial alcohol,
benzene, cauStic soda, chlorine,
glycerine and soda ash.
Forest products-softwood and
hardwood Excluding hardwood
flooring, railroad ties and mines
ties); softwood plywood and wood
pulp.
Iron and steel-Pig iron; gray
iron castings, carbon and alloy
steel; rough forgings; iron and
steep scrap.
Other metals and minerals
aluminium, columbium, cobalt,
copper and scrap containing cop
per, magnesium, nickel, tin, tung-
stem, zinc and other non-ferrous
scrap.
Rubber - Natural rubber and
latex; all synthetic rubbers.
Textiles-Burlap, cotton pulp,
high-tenacity rayon yarn, nylon
staple and nylon filament yarn.
Inclusion of industrial alcohol
was something Of a surprise. Until
last week there was no reports of
a shortage or possible shortage.