Evening star., 1925-05-27
NATIONS BUSINESS
ON SOUND BASIS
Retail Sales Lower Than
Early in Year, But Figures
Are Above Last Year.
El j. G. RONIE.
Special Dispatch to The star.
NE'\N WORK Nav - -rNNb

Special Dispatch to The star.
NEW YORK. May 97.-"Which way
is the cat going TO Jump
That is 4 question thousands of
Americans are asking themselves to-
day regarding the course of business
There has been Il slackeninG observ-
able in some lines. notably in the re
tail distribution of commodities. Peo-
pie have begun to ask whether those
who express confidence as to future
conditions are "whistlinG 10 keep the
courage up Some of them are hes
itatinE as to future commitments
until they make up their minds.
There are many developments which
may affect the course of business
throughout the last half year. But
IL can be stated authoritatiVely that
fundamental conditions at this date
are sound.
Some Threadbare Spots.
There are threadbare spots in the
fabric OF commerce. manufacture and
trade. If there were not. the situa-
ton would he far more precarious
than it is. Only those with short
memories have forgotten 1920. Then
buying wave swept the country
INTO state of imitation and there
were few apparent weak spots Take
II or leave it was the cry of more
than one merchandise. and that
motto raised a diStrust, an auimositv
ana Srudge among the buying pub
nc which has not Yet died out
Trade Fair to Good.
Today the condition of the main in
ouStrles of the country can be called
Ialr TO good. There is little unem-
ploNment and the johless workers are
being absorbed by calls from the har.
vest fields, construction camps and
public Improvement projects. Wages
are nigh. Labor disputes are few
Buying power is undiminished. Build
lnS contracts have been Curtailed in
only few sections and have been in
creased in others. Production in the
manufacturing lines is at least pro
ceedtnE at a fair rate The condition
OF the farmers is evidenced by the
tact that implement dealers have sold
practically all the equipment they
nave been. allotted by manufacturers.
Expected Too Much
Why. then. the halt and hesitancv
now being given expression?
One answer is that business men
raised their sights too high Pinned
down to actual figures. many of those
who complain business is bad and get
tInG worse admit not that business is
Dad. but that II is not 50 good as they
hoped. Wild predictions of prosper
Ity became prevalent last November
The mental attitude of business men
was influenced unquestionably by the
spectacular advances in the stock
market. Now those men. rather than
admit they misjudged their mark cts
take refuge in assertions that buSi-
ness is bad. Those assertions are not
borne out by actual statistics of this
year as compared with 1924.
Buyers Are Discriminating.
In the retail lines dispatches from
some sections today indicate that the
volume of sales has dropped from
early year proportions. There are
hesitate TO reply that the public is
showing a most surprising tendency
TO buy what it wants rather than what
merchants are attempting TO sell it.
The general belief that the lull is
temporary one is indicated by the
volume of advertising now being used
by retailers who seemingly feel that
this will overcome the sales inertia
The writer does not mean to give
the impression that conditions are
bound to continue as good or better
than at present. The end of the fiscal
year is approaching and the results
evidenced at that time will have much
to do with business in the last six
months of this year.
Stable Conditions Ahead
Two facts stand out in the pros
poets of the future. One is that Condi-
1iOnS bid fair to remain stable and
more satisfactory than last year for