Show Truman to o T O lk Tonight As U. U S. S Tightens Credit Ced V WASHINGTON ASHINGTON S Sept pt 9 UPI UPI- P President Truman will broadcast to the the- nation Saturday night 7 30 I pm p.m. MST 1 a report on how he plans to use the broadest economic economic eco eco- control powers ever held eco I by bya a United States president The power grant became effective effective I tive U when the president signed Into I Ilaw law Friday the control bill passed by congress cong Sept 1 1 It gave Mr r. r Truman somewhat greater authority authority authority author author- ity than that held by President Roosevelt in m World War Var II One use use use-to to curb installment plan buying was buying was invoked a few minutes after Mr 11 Truman signed the bill This was a federal re reserve reserve reserve re- re serve board order tightening effective effective effective ef ef- ef- ef Sept 18 credit terms that can be allowed buyers of autos I and many other goods Mr Truman himself has said eaid he wont won't use his new wage ra control powers in the near future So the tightening credit-tightening action will reach more dire directly into the lives of millions of Americans Americans Americans Ameri Ameri- cans than any other steps now in inthe inthe inthe the cards The credit curbs promised to clip cUp the publics public's capacity to buy television sets washing machines and so on Other orders to come are expected expected expected ex ex- ex- ex to curtail the availability of many consumer goods by directing essential materials required such required such as steel and copper to copper to defense production The control program ram as a whole is intended to accomplish a mobilization mobilization up speed-up and a check checkon Lon on inflation Air Mr r. r Truman has warned that we shall have to make malie many changes in our way of living and wor working ng here at home Assignment of material priorities priorities priorities priori priori- ties to military producers and limits of inventories of essential items to prevent hoarding are arc reported reported re- re ported to be the next control steps contemplated by the I tion But such moves mO as these these plus plu a tightening of mortgage credit terms in m line with the new credit 1 limits mits on goods purchases purchases await await awaited ed dIrections from Mr 11 Truman He still must say which agencies will handle what powers so they can proceed to issue issue orders I The Federal Reserve Resene board was able to act fast ast on consumer credit restrictions because congress said specifically it should wield that See Page rage 2 Column 3 T Truman rumen to T elk Tali Tonight As US U.S. o Tightens Credit Continued from rom Page One control whereas it ft left the president president president dent to say who should handle the theother theother theother other controls The reserve board observing that easy credit had aided the post-Korea post buying rush set these minimum cash down payment and maximum pa pay off off limits on time buying buying- Third One-Third Down third One-third down and 21 months to pay for autos new or used The board said dealers have up to now generally g been requiring requiring- a 20 down payment Fifteen per cent down and 18 IS months for refrigerators food freezers radio or television sets phonographs c coo cooking o o k i 1 n g stoves ranges dishwashers ironers sewing sewing sewing sew w ing machines washing machines clothes driers suction vacuum cleaners air conditioners and de- de humidifiers Ten per cent and 18 months for furniture and rugs The board said man many appliance appliance ance ance and furniture sales ha have haC C been made recently with down payments payments pay pay- ments ranging from nothing paY paY-I to tolO lO logo o with 21 months allowed to pay payoff off the balance Ten per cent and 30 months for I home repairs alterations and improvements Improvements Im im- imI I The Federal Housing Housing Housing Hous Hous- ing administration began requiring requiring requiring ing a 10 down payment In August but allowed 37 months to pay payoff off Some Item Items v Exempt Articles listed but costing less than were exempted from the down payment requirement requirements but made subject to the pa pay off off time limits Installment loans for the purchase purchase purchase pur pur- chase of listed articles must conform conform conform con con- form to Installment sale cale terms for those articles Other installment loans must require payment within with with- in 18 months No restrictions were put on charge accounts The credit curbs are less tight tit than those imposed by the board during during- World War Var II or when credit controls were inthe inthe in the he fall of troubled inflation-troubled 1948 1918 but tighter than the requirements in n effect when credit controls last went vent of off in June 1949 R R. M M. Evans a member of the the Federal Reserve board told reporters re- re porters the thc new terms are not intended intended in- in tended as a knockout drop to installment buying buying- Rather he said they are designed to brake an upsurge e in time buying buying- which has boosted over-all over consumer debt since the Korean fighting fighting- began on June 25 to a record high of above Restrained Scale Evans reflected a widespread official attitude that the initial use of control powers would be on ona ona ona a restrained scale with a gradual stiffening later on if conditions warrant If the situation worsens worsens and and we hope it wont won't wont the the board will willbe willbe willbe be prepared to tighten these terms he said stressing that consumer credit restrictions alone cant can't stop inflation The credit curbs apply to sellers and lenders enders as well as buyers Violators are subject to penalties as high as a fine and a year ear earin in m prison |