Bench Warmer

Consumer credit men braced themselves -- they were going to have the unprofitable distinction of being the last men tapped for reconversion. From Washington came word that the Federal Reserve Board would keep the screws tight on consumer credit until manufacturers are again pumping out enough peacetime goods to meet demand.

In 1941 the consumer credit industry happily reckoned its alltime peak volume at $9.5 billion. Of this sum, U.S. citizens were pledged to pay $5.9 billion on the installment plan for autos, home appliances, furniture and jewelry; charge ac counts and personal loans on "easy" terms added up to $3.6 billion.

In August 1941, the Government announced Regulation W, to help ward off inflation by making borrowing and buying more difficult. These credit restrictions, aided by the shortages of consumer durable goods, cut consumer debt almost in half, to a current $4.9 billion.

Each time reconversion talk bubbles up, installment finance men get hopeful. Only such small specialty groups as the jewelers have openly agitated for early relaxation of credit controls. Large department stores are pleased with the regulation, claim it has speeded payments, kept accounts in good shape.

But last week credit men who want the regulation eased found a new argument. Wise relaxation of the controls, they said, can allow individuals to hold on to their war bonds and still buy long-wanted goods. Thus, they argue, pressure on the Treasury can gradually be relieved without sacrificing purchasing power.

But the proponents of gradual relaxation had no real hopes; the Federal Reserve Board's position as of last week was to keep consumer credit warming the bench until the board sends it into the game to ward off deflation.

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