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Show 'Speculators 5 Encounter Credit Drop WASHINGTON (AP) The Federal Fed-eral Reserve Board tightened up Tuesday on use of credit to buy stocks, increasing the margin requirement re-quirement from 50 to 70 per cent. The action, effective Wednesday, Wednes-day, means that a person who wants to buy stock on partial credit must put up a minimum of 70 per cent of the price of the stock. " In other words, he could borrow only 30 per cent of the stock's valuation. val-uation. THE ACTION (-overs extensions of credit by banks as well as by brokers. ; In its announcement, the lftiarti noted that over the past 15 months stock market credit has increased by 43 per cent. The higher margin requirement is expected to curb what the board considers excessive speculation. spec-ulation. 'Stock prices have been strong in the past few months and have hit new highs in recent weeks. THE 50 PER CENT margin has been in effect since July, 1962. It was reduced then from 70 per cent. At that time, stock prices had gone down in big selling waves in late May and June. Credit for stock purchases had dropped to a low level. |