who couldn't be here; Mr. Orrin Shipe, managing director, Credit Union National Association, Madison, Wis.; Mr. David Weinberg, director, legal and legislative department, Credit Union National Association; and Mr. Abraham Dash, legislative representative, Credit Union National Association, Washington, D.C. Before I begin my testimony, may I say we have heard of the quick credit cost computer. Senator DOUGLAS. Have you seen it? Mr. STONE. I saw it last night for the first time. This is the credit cost computer which was presented by the Bowery Savings Bank and we understand that this is an ingenious device. We have also heard that it is not accurate enough for lenders, however, adequate it may be as an aid to consumers. This was the statement which was made, we understand, before the committee yesterday. I understand also that it has been charged that an accurate true interest calculator would have to be 9 feet long. I have in my hand, Mr. Chairman and members of the committee, a true interest rate calculator which is highly accurate. It has been devised for use by credit unions. We have carefully measured this. It isn't 9 feet long. It is much smaller than the one the Bowery Savings Bank presented in their computer and we would be happy to demonstrate its use later in our testimony. I should like to present one of these to you, Mr. Chairman, for the committee. Senator DOUGLAS. Do you have extra copies for Senator Bush? Mr. STONE. May I give him mine. This is made available to credit unions, developed by the CUNA Supply Cooperative. It can be easily ascertained by checking the interest rate, the true interest rate on any loan for a period of years, and it can be easily checked by the average clerk with only a high school education. Senator DOUGLAS. Inspection indicates that it is approximately half an inch shorter and from a quarter to a half inch narrower than the computer of the Bowery Savings Bank; is that correct? Does Senator Bush agree with that? Senator BUSH. I didn't hear what you said. Senator DOUGLAS. I said inspection indicates- Senator DOUGLAS. It is approximately a quarter of an inch shorter and quarter to a half an inch narrower than the quick credit cost computer which was demonstrated to us by the Bowery Savings Bank. Senator BUSH. It is very difficult to measure by the eye and I didn't have a ruler, but I would say approximately a quarter of an inch on each side. I don't want to make too much of a point of this. Senator DOUGLAS. I think it is a half an inch narrower and a quarter of an inch shorter. Senator BUSH. Let's say approximately, because you haven't measured it. You measured it with your eye. Senator DOUGLAS. That is true. Senator BUSH. That is right. Get it right. Senator DOUGLAS. No, you must do some of this, too. Senator BUSH. No, I am relying on you entirely. I thought we were in a hurry, Mr. Chairman. Senator DOUGLAS. We are interested in getting this. Your associate will check me. Senator BUSH. We are getting a couple of extra men to check it. Senator DOUGLAS. I think it is exactly a quarter of an inch shorter. Senator BUSH. This is the other one. You had a half inch. That is very important. Senator DOUGLAS. Exactly a half an inch narrower. My inspection was right to the hundreds of an inch. Senator BUSH. Five-eighths. You said a half, but you said a half. Senator DOUGLAS. I know it. Go ahead, Mr. Stone. Mr. STONE. This computer which we call the credit union lightning loan computer, is for credit union treasurers, directors, and cashiers, and has been made generally available to people connected with the credit union movement. In addition to that, there will be included with the presentation which we are making and referred to as exhibit 2, a credit union calculator, which has been compiled exclusively for the credit union treasurers. These are tables which will tell you by looking, and in a matter of seconds, the interest rate on any payment for a certain period of days or weeks. Senator DOUGLAS. Do you have an extra copy? Mr. STONE. Yes. We are submitting this as exhibit 2, and we will make copies of this available to members of the committee. So with these two, which it seems to me can be used by any treasurer, director, cashier, by any credit union person, they can ascertain the true interest rate over any period of time, the amount of payments and for any amount of days in a matter of minutes and perhaps more capable ones can do it in seconds. These are published by the credit union movement and available to credit unions. (The lightning loan computer follows on pages 490-491; the credit union calculator follows beginning on page 492.) |