Evening star., 1950-09-17
New Controls TO Curb
Initiation and Hoardinc
To Begin Tomorrow
ByceeiI HoIIond

by SECH I1Ottono
The Government tomorrow will
begin fastening controls on the
country's economy to ward off in
f1ation and prevent speculative
boarding during the emergency
brought about by the fighting in
Korea. -
Initial steps in a vast new sys-
tenn of controls confronting the
Nation are:
/. The Federal Reserve Boards
new Regulation W." of wartime
note and afterward, becomes effec-
tive. 1t calls for larger down pay
ments and shorter time for pay
ing off installment purchases of
automobiles, major home appli-
ances and household furnishings.
2. The National Production AL
thority. established a week ago,
will issue its first order-one de-
signed to prevent factories and
dealers from accommodating more
than a normal supply of materials
in scarce supply such as steal, cop
per, rubber and lumber
Inventories to be Restricted.
Both actions are viewed by the
Government as important steps in
curbing. initiation during the pc
riod of building up the country's
defenses with more arms, planes,
tanks and other equipment.
The restrictions on consumer
installment purchases are expect
ed by Government experts to
check demands for goods sold on
credit basis. Consumer credit,
it has been pointed out, has
reached a new record figure of
more than $40 billion dollars since
the Korean fighting began.
The inventory order forb;dding
boarding of scarce materials has
not been issued and its terms will
be announced tonight. Govern
ment officials believe it will help
keep prices down and also deter
'gray markets" in scarce mate
rails needed in the defense pro-
gram.
No Immediate RatiOning.
They will be the Governments
main weapons of attack against
initiation and Scarcities for the
time being.
So far, there are no indications
of any immediate use of the
broad wage-price-rationing powers
granted President Truman in the
home-front mobilization bill pas
sed by Congress and signed into
law little more than a week ago.
The Economic Sterilization
Agency that Mr.. Truman said
was being created to deal with the
wage-price problem has not yet
formally taken shape and no ad-
ministrator for it has yet been
named. Studies are still going
on in interested agencies looking
toward the formation of the
agency, but any use of wage
price controls are still months in
the future unless conditions should
change materially and unexpect-
edly.
PrioritieS to Be Set Up.
However, other control orders
are in sight for the immediate fu-
ture. One will be an order from
the National Production Author
ity, which has been established
within the Commerce Department,
setting up a priority system for
handling war production.
The order is scheduled to be is
sued as soon as the production au--
thorities obtain from the mill
tary a basis working estimate of
defense needs for the months
ahead.
AS the control program swung
into effect, Federal Reserve Of
ficials were prepared for a close
watcn on the effects of the re-
strictionS on consumer install
ment purchases. They have made
1t clear they are ready to impose
even tighter restrictions if those
already ordered fail to curb soar
ing credit purchases.
New Credit Terms.
Officials believe the new curbs,
while not as restrictive as those
in effect during the war. may do
the job. They include:
Down payments of 1919 per
cent and 81 months to pay for
automobiles.
Down payments OF Is per cent
and 18 months to pay for home
Notwithstanding stoves and
ranges, dishwashers, ironers, re-
frigerators and food freezers,
washing and clothes drying ma
chimes, air conditioners and de-
humidifiers, radio and television
sets, monographs or combina-
tions, sewing machines and vac
uum cleaners.
Down payments of 10 per cent
and 18 months to pay for pur-
chases of household furniture in
Guiding ice refrigerators, bed