Show Time Purchase Rules Set Up WASHINGTON Aug 12 lP- lP Easy payment plans felt the impact impact impact im im- im- im pact of defense requirements Tuesday as the administration acted to curb the nations nation's 10 installment credit business Th The announced purpose of the curb was twofold To discourage consumers from buying many things containing materials that otherwise would be conserved for defense production needs and To counteract inflationary tendencies tendencies ten ten- that arise when the de demand demand demand de- de mand for certain goods is greater than the supply y President Roosevelt in an executive executive executive exec exec- order issued late Monday directed that the control system be set up to regulate the huge Continued on pare Page Four Column One Time Purchase Phase Rules Set e Up Continued from Page On One credit business now being transacted transacted trans trans- acted through the country's banks stores and personal finance com com- panics The w The order instructed the federal federal fed fed- eral cral reserve system to formulate and administer the regulations regulation under a World war statute which carries criminal penalties as high higl as 10 years' years imprisonment anc and fine violations There was no immediate indication indication Indication indi Indi- cation of what the rules would be but Mr Roosevelt specifically authorized such measures measures as requiring requiring re- re quiring down payments where they are not now required re reqUiring requiring requiring re- re quiring bigger down payments than now necessary requiring larger weekly or monthly installments installments installments install install- ments and reducing the length of time such payments may run Credit contracts already exIsting existing exist exIst- ing or entered into before the new regulations become effective will not be subject to the new control system Chairman Marriner S. S Eccles of the federal reserve board indicated Indicated indicated Indi indi- the curb would Involve automobiles automobiles automobiles au washing machines re refrigerators refrigerators refrigerators re- re ironers vacuum v va a c u u m cleaners and many other goods Cites Defense Conflict These he pointed out required the same materials as the production production production tion of defense supplies At present he added armament demands for such materials are and probably throughout the emergency will be so great that the surplus left over for productIon production production tion of consumers' consumers durable goods will In many cases only permit an output of such goods considerably considerably considerably consid consid- smaller than that attained in recent months Eccles did not specify the complete complete complete com com- range of products affected lie He avoided any details of the theode code ode of regulations explaining it would take several days to work this oat A Until the code h has been formulated formulated formulated formu formu- i he said consumers were free iree to make purchases on whatever whatever whatever what what- ever terms they can obtain The new system it was emphasized emphasized sized would not affect those who can pay cash Only announced exception was credit for the purchase or construction construction construction con con- of new homes Loans of this type will not be subject to regulation Eccles said laid but loans to finance repairs on existing existing existing exist exist- ing houses may be regulated |