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The Nome Nugget
Nome, Nome County, Alaska
What is this article about?
Federal Reserve Board enacts credit restrictions effective Sept. 20, mandating down payments and payment timelines for consumer goods $50-$5,000 to combat inflation, per new law signed by Truman. Business reactions mixed.
Merged-components note: Continuation of federal credit payment ruling story; first component contains OCR-mixed text from unrelated Soviet consul story.
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WASHINGTON. (AP)—The government Saturday pulled a brake on free-wheeling credit.
New rules to stiffen "easy payment" loans and purchases covering most consumer goods costing from $50 to $5,000, were posted officially by the federal reserve board. They take effect Sept. 20.
Businessmen were divided. Some thought it "fair and reasonable." One furniture executive denounced it as "rationing the poor."
These are the terms—backed up by criminal penalties and the power of the federal reserve board to put a violator out of business.
One Third Down: 15 Months To Pay; Is New Ruling
(Continued from Page One)
credit business:
One third down on automobiles.
Twenty per cent down on stoves, dishwashers, ironers, refrigerators, washing machines, air conditioners, radios, phonographs, television sets, sewing machines, vacuum cleaners, furniture and rugs.
A 15-month time limit to complete payment if the article costs $1,000 or less.
An 18-month limit on credit over $1,000, but with a minimum $70 monthly payment.
Ordinary charge accounts usually payable in one, two or three months are not affected.
Personal loans, of the type repayable in monthly installments, are subject to the time limits.
Single payment loans and housing loans are exempt.
The order is the first fruit of the new Republican anti-inflation law, signed by President Truman last Monday. He said the act is only a "tiny fraction of what we need" to defeat rising prices.
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Domestic News Details
Primary Location
Washington
Event Date
Sept. 20
Key Persons
Outcome
new rules impose down payments and time limits on consumer credit for goods $50-$5,000; backed by criminal penalties; exempts ordinary charge accounts, single payment loans, and housing loans.
Event Details
The Federal Reserve Board issued new regulations to restrict easy credit, requiring one third down on automobiles, 20% down on appliances and furniture, 15-month payment limit for items $1,000 or less, and 18-month limit with $70 minimum monthly payment for over $1,000. Effective Sept. 20, stemming from anti-inflation law signed by President Truman last Monday. Businessmen opinions divided.