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(From P r e s i d e n t s message t o Congress 21/IS) Second, I recommend t h a t consumer c r e d i t c o n t r o l s be r e s t o r e d i n o r d e r t o h o l d down i n f l a t i o n a r y credit. T h i r d , I recommend t h a t t h e F e d e r a l Reserve Board be g i v e n g r e a t e r a u t h o r i t y t o r e g u l a t e i n f l a t i o n a r y bank c r e d i t . (From P r e s i d e n t s message t o Congress 11/17/47) Our immediate approach t o the problems o f h i g h p r i c e s and i n f l a t i o n should c o n s i s t o f t h r e e types o f measures: One, t o * r e l i e v e monetary pressures; two, t o channel scarce goods i n t o t h e most e s s e n t i a l usesj t h r e e , t o d e a l d i r e c t l y w i t h s p e c i f i c h i g h p r i c e s . One way t o reduce monetary pressure i s by r e s t r a i n i n g the excessive use o f c r e d i t . A t a time when t h e economy i s a l r e a d y producing a t c a p a c i t y , a f u r t h e r expansion o f c r e d i t simply g i v e s people more d o l l a r s t o use i n b i d d i n g up t h e p r i c e s o f goods* Consumer c r e d i t i s i n c r e a s i n g a t a d i s t u r b i n g r a t e . The amount o u t - standing has r i s e n f r o m s i x and o n e - h a l f b i l l i o n d o l l a r s i n 194-5 t o more than eleven b i l l i o n d o l l a r s today. Even more r a p i d expansion i s under way now, because the c o n t r o l s on consumer c r e d i t e x e r c i s e d by the Federal Reserve System e x p i r e d November 1 . These c r e d i t c o n t r o l s should be r e s t o r e d . some r e s t r a i n t should be placed on i n f l a t i o n a r y bank c r e d i t . I n summary, t h e immediate a n t i - i n f l a t i o n program t h a t recoiomend c a l l s f o r t h e f o l l o w i n g l e g i s l a t i v e a c t i v e : I One: t o r e s t o r e consumer c r e d i t c o n t r o l s and t o r e s t W T n t h e c r e a t i o n o f i n f l a t i o n a r y bank c r e d i t . Also,
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