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Form F. R. 131 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Office Correspondence To Chairman Eccles From LauchlinCurrie Date Siihjeri:: October 6, 1936. Credit for This pamphlet is addressed mainly to the consumer. It describes the various types of lending agencies and, tho sympathetic to this type of credit, it points out the dangers and pitfalls. I don't think there is anything of interest in it for you except possibly the statement that "a few states, including Utah, for example, have passed laws which make the legal rate of charge so low that nobody evades the law*. Estimates of consumer debt, which I have not checked, are given for the end of 1955. Consumer debt by types of lending agencies Estimated Outstanding, End of 1955 (Millions of dollars) Credit based on personal property and general credit Retailers1 Open Accounts % 2,800 Retailer and Finance Company Instalment Sales Credit 2,100 Advances by Relatives and Friends 1,000 Commercial Bank Personal Loans (not segregated). 500 Personal Finance Companies 225 Illegal Lenders 119 Industrial Banks (including Morris Plan) . . . . 110 Pawnshop Loans . . . . . 110 Personal Loan Departments of Commercial Banks. . 40 Credit Unions 40 Remedial Loan Associations 26 Axias 6 Philanthropic, Employer, Student and Other Special Loan Funds. 25 Credit Based on savings and other reserves Life insurance policy loans. • • • . . Veteran borrowings on life insurance and adjusted compensation certificates .. Building and loan association share loans. . . . Savings bank loans on pass books Loans by other savings, loan and investment companies TOTAL 2,300 1,666 105 8 50 $11,230 1/ As explained in the text, estimates where adequate data are not available are necessarily rough. All estimates are net, after deducting loans for business purposes. Money loans include virtually no rural Subject- Credit for Consumers (Footnote- continued) credit, and no real estate debt. For some items, use has been made of earlier studies by Dr. M. R. Neifeld and Dr. F. W. Ryan, and of current estimates by Mr. Rolf Nugent. c
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