Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-12-28

the country showed during the year IS
eXemplified by the fact that while retail
sales fell only between 10 and IL per
cent below the best year that America
ever had, 1923, production was reduced
approximately % per cent. This is proof
that excess stocks have been reduced
and no longer overhang the markets
with threat of sudden dumping.
Retail buying as a whole attained a
tremendous volume, and wound up at
the peak in a Christmas business which
made many people stare with amaze
ment and demand to know where was
the unemployment and distress about
which business men were talking.
In october of this year retail sales
showed a decline of per cent as COM
pared with October, 1929, but it was
necessary for the people of the country
to pay per cent less for articles of
necessity. Therefore, while retail sales,
which in 1929 approximated $4,000
900, GOO, did not approach those figures
this year in dollar value, the number of
sales this year probably was as large as
the number of sales made year ago.
Chain stores and mail-order houses did
not materially increase or expand their
holdings in 1880, but maintained very
satisfactory volume of business as COM
pared with the preceding year. The
department stores suffered, but they
bought their goods more advantageously
and their methods were far more effec-
tive and efficient than in the IL months
previous.
Bills Were Paid.
There was not time during the year
when collections were really bad. Losses
incidental to the selling of goods on the
installment plan were almost negligible,
although sales under the installment
plan declined very materially. In this
connection an official statement by the
American Federation of Labor says:
"Installment buying has decreased
this year. In automobiles the INSTALL
ment sales were % per cent below last
year. Some of the key industries de-
pend very largely upon installment pur-
chaSeS to sell their goods. Unstable
conditions make workmen feel reluctant
to commit themselves for longtime
| payments"
The federation continues urging that
/ confidence be re-established to promote
this type of selling, which in many years
past has been regarded not as safe
| guard but as great danger.
The banking situation presented prob
ably the most puZzling completely of the
year. The banks were full of money.
| At the close of the year deposits were
probably per cent higher than they
were at the close of 1929. The position
of the Federal Reserve Banks was
stronger than for long period Money
was available, and yet money lay idle
throughout most of the year to such an
extent that interest rates declined to the
lowest point touched in almost decade.
FOrtifying With Cheap Money.
With money available at low rates
of interest, railroads, steel concerns, cor
porations of every description reached
out and gathered in assets to make
themselves impregnable. The United
States Government was able to refund
no small portion of its maturing debt at
interest rates less than so per cent of
those which had been paid on the old
securities. Big corporations, able to give
adequate security, borrowed money at
the lowest possible figures, bought mate
rails at extremely low rates and laid
their plans for future development on
such a basis that competitors in the
future will have the utmost difficulty in
overcoming their advantage.
1t is extremely likely that before the
end of this low-money period the United
States Treasury will borrow and re-
finance at least $4,000, 100000 worth OF
its public debt. Indication of this trend
was observable in the annual report OF
Secretary Of the Treasury Mellon.
Efficiency took longer and faster steps
in 1880 than in any previous year. The
number of patent applications reached
new record figures. The majority OF
these patents were of the industrial type
Even in the worst periods of the year
the demand for machine tools and ma
chine equipment was insistent. Manu-
facturerS admitted that only through
use of the latest and most up-to-date
and efficient machinery could they hope
to compete in the markets of the world
This was only the start of the devel-
opmeut Nearly every large industrial
concern developed or attempted one or
more by-products. So profitable were
some of these that they overshadowed
the main output of the company.
The life insurance companies suffered
less than the banks In the matter Of
llxeturns from investments, but the total