Word: crediting
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Dates: during 1950-1950
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...another three or four weeks at least, Harry Truman and many businessmen can agree on one thing: let's not have any direct price, wage and rationing controls. In the meantime, the big question on the minds of politicians, economists and bankers is: Can credit restrictions and other fiscal controls effectively head off rising prices...
...Federal Reserve Board, and notably Board Member M. S. Szymczak, thinks that indirect controls, if wisely and quickly used, can do the job. Szymczak, long a spokesman for moderation in Government attempts to control the economy, said: "The more we can accomplish by means of monetary, credit and fiscal policies . . . the less need there will be for the authoritarian harness of rationing and other direct controls...
Tightening Up. Last week FRB, which had been tightening up on credit since last summer, thought the time had come to tighten up some more. Bank loans, which expand credit and to some extent feed the fires of inflation, rose $108 million in the New York City area, to an all-time high of $5.7 billion (topping the previous peak of 1948). There was little doubt that loans around the nation were also...
Sabotage. Actually, FRB's efforts so far to fight inflation by restricting credit have been all but sabotaged by John Snyder's Treasury Department. As long ago as August, FRB made its first move to discourage borrowing by boosting the discount rate and dropping its support prices of many U.S. securities, thus pushing up interest rates throughout the U.S. (TIME, Sept. 4). But when the Treasury put on the market a record-breaking ($13.5 billion) issue of short-term notes, it refused to accept the higher rates, insisted instead on its long-standing policy of cheap money...
Meanwhile, FRB got ready to tighten up further on consumer credit. It thought that Regulation W, which had gone into effect three weeks ago, was too mild. Consumer credit in August had climbed to an alltime peak of $20.9 billion, up $614 million from July...