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Federal Reserve Bank
OF DALLAS

Dallas, Texas, May 5, 1952

SUSPENSION OF VOLUNTARY CREDIT RESTRAINT PROGRAM

To All Financing Institutions in the
Eleventh Federal Reserve District:
At the request of the Board of Governors of the Federal Reserve System, the following
information with respect to the suspension of the Voluntary Credit Restraint Program is being
transmitted to all financing institutions today.
Yours very truly,
R. R. GILBERT
President

The Board of Governors met jointly with the national Voluntary Credit Restraint Com­
mittee on Friday, May 2,1952, to discuss the status of the Voluntary Credit Restraint Program.
As a result of that meeting, the Board is issuing today the following press statement for
immediate release:
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM

STATEMENT FOR THE PRESS
For Immediate Release

May 5,1952

The Board of Governors of the Federal Reserve System has concurred unani­
mously in the recommendation of the national Voluntary Credit Restraint Committee
that the screening of applications for financing, in accordance with the principles
established by the Voluntary Credit Restraint Program, be suspended in the light of
current circumstances. The Voluntary Credit Restraint organization will continue on
a standby basis so that the voluntary program may be reinstated should subsequent
developments require.
The Board also has taken action withdrawing its request previously made of all financing
institutions in the United States in connection with this matter.

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

WITHDRAWAL BY BOARD OF GOVERNORS OF THE FEDERAL RESERVE
SYSTEM OF ITS REQUEST TO FINANCING INSTITUTIONS TO ACT PURSUANT
TO PROGRAM FOR VOLUNTARY CREDIT RESTRAINT

Pursuant to the provisions of Section 708 of the Defense Production Act of 1950
and Executive Order No. 10161, the Board of Governors of the Federal Reserve
System, on March 9, 1951, requested every financing institution in the United States
to act, and to refrain from acting, pursuant to and in accordance with the provisions
of a “ Program for Voluntary Credit Restraint” which had been prepared and approved
in accordance with the procedures and requirements prescribed by the said Section
708 and by the said Executive Order. The Voluntary Credit Restraint Committee
created pursuant to the Program, every subcommittee created pursuant to the Pro­
gram, and every individual member of the said Committee and of said subcommittees
were also requested by the said Board, on March 9, 1951, to act and to refrain from
acting pursuant to and in accordance with the provisions of the Program. Subse­
quently, on April 20, 1951, and on April 17, 1952, the said Board requested every
financing institution in the United States, the said Committee, the said subcommittees,
and the individual members thereof, to act and to refrain from acting pursuant to and
in accordance with the provisions of an amended “ Program for Voluntary Credit
Restraint” which had been prepared, amended, and approved in accordance with the
procedures and requirements prescribed by the said Section 708 and by Executive
Order No. 10161.
On May 2, 1952, the Voluntary Credit Restraint Committee recommended to the
Board of Governors of the Federal Reserve System that the screening of applications
for financing, in accordance with the principles established by the Voluntary Credit
Restraint Program, be suspended in the light of current circumstances. The Board of
Governors of the Federal Reserve System is unanimously in agreement with this
recommendation of the Voluntary Credit Restraint Committee. Accordingly, effective
May 12, 1952, the Board of Governors of the Federal Reserve System hereby with­
draws the requests which it addressed to all financing institutions, the Committee,
the subcommittees, and members thereof, on March 9, 1951, April 20, 1951, and April
17, 1952, to act and to refrain from acting pursuant to and in accordance with the
provisions of the Program.
Under the provisions of Section 708 of the Defense Production Act of 1950, acts
or omissions to act pursuant to the requests above referred to and the Program for
Voluntary Credit Restraint which occur while said Section 708 is in effect and before
the withdrawal of such requests are not construed to be within the prohibitions of
the Anti-Trust Laws or of the Federal Trade Commission Act of the United States.
As a result of this withdrawal by the Board of the requests previously made by
it, the provisions of said Section 708 will not apply to any act or omission to act by
reason of such requests bn or after May 12, 1952.
By order of the Board of Governors of the Federal Reserve System, this 2nd day
of May, 1952.
S. R. Carpenter
Secretary