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the House bill. We can expect taxes paid in 19^3 to be much heavier 

 than in 19i^2, In addition to taxes, the Senate is proposing forced 

 savings as a method of further reducing the spending power of consumers, 

 This would operate as a tax but would be refunded after the emergency 

 is over. This is probably a good idea for a large fraction of the 

 people. Purchasing power will become available at a later date when 

 consumers need additional purchasing power and when industry needs 

 additional stimulation. Of course, if all this purchasing power became 

 available immediately after the war, an inflationary boom might then 

 get underway to be followed by a later collapse. Restrictions have 

 been placed upon consumer credit, and a press report quoted a 

 Department of Commerce release which indicated that for the first half 

 of 19^2 a reduction of l-l- billion dollars occ\irred in short-term debts 

 of consumers. It is predicted that for the entire year consumers 

 would cut their short-term debts by 3i billion dollars. These debts 

 have been reduced as a result of restrictions on the use of charge 

 accounts and installment purchases. Credit restrictions are deflation- 

 ary. 



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