Don't Get Alarmed

How much scare buying had the war set off? Last week the Federal Reserve Board provided the first rough measure. In July, it reported, installment purchases of automobiles, refrigerator's and other durable goods had sent consumer credit soaring $660 million, well above the $457 million rise in May and $550 million in June, to a total of $20.3 billion.

It was the first time in history that consumer debt had crossed the $20 billion mark, more than double the figure of a decade ago ($9.1 billion). But the rise was not as fearsome as it looked. While the nation's per capita consumer debt had risen from $69 in 1940 to $135, up 95%, national income had risen from $616 per capita to $1,437 in the same period, a gain of 133%. But consumer credit would be one of the first things curbed under the new Defense Production bill.

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