Evening star., 1934-03-04
RECOVERY TRACED
BY RISING TREND
OF RETAIL SALES
Dry Goods Association Cites
Cheerful Outlook for
Months Ahead.
ONLY OBSTACLE SEEN
IN PRODUCERS CODES
Exorbitant Prices Would Pinch
Both Retailers and Buyers,
Merchants Contend.

| the confusion and chaos surrounding
! the bank holiday a year ago to the
| present improved level of business,
the National Retail Dry Goods As
sociation, representing 4,500 depart
ment and special stores. today took
cheerful view of the outlook for busi-
ness in the months ahead.
In reviewing the progress of thou
sands Of stores during the year the
trade body described the elements Of
retail recovery: an upward swing of
| sales after a continuous four-year
decline, gradual increase in prices
with a beneficial effect on the pur.
chasing power of thousands Of indus
trial workers, the shortening Of store
hours, the increase in store pay rolls,
the addition of thousands Of new en-
ployes on store STATS. and the first
| decrease in store operating losses in
| four years.
The retail groups saw only one for
bidding cloud on the horizon OF re-
covery. This is the provisions in pro-
| ducers' codes. which the association
claims tend to raise prices in the
affected industries to exorbitant lev
els through monopolistic practices
and revision OF traditional trade
methods at the expense of the re-
taller and consumer Provisions of
| this type were protested vigorously
at the public hearings in Washington
last week.
Uncertainty Recalled.
The association recalled that dur
ing the banking troubles of last
March retailers. like other business
leaders, moved through the crisis
with misgivings and uncertainty.
department store sales in 2ll cities
In February had run 25 per cent un-
der the same month in 1882. This in
turn was Is per cent under the same
month in 1881. Business in cities was
almost completely paralyzed. Prices
swung to unheard-of lows, robbing
both industry, labor, middleman and
merchant Of fair return, and tossing
constantly more thousands into en-
forced idleneSs or poverty. Fearing
the future. merchants hesitated to
buy, and what buying was done Was
piecemeal. Even had many merchants
sought to place generous quantities of
new merchandise on their shelves,
banks were In no position to advance
the funds. and store reserves in most
cases had been shattered by four
years of operations at "a loss As it
was, merchandise lay dormant in great
quantities on store shelves and there
was little need for replenishing stocks.
The apathy of the public to buying,
extended its strangling effect to every
line of industry.
But the public Immediately re-
sponded to the steps taken in Wash
ington to rebuild confidence and re-
wise business Whereas Federal Re-
serve figures showed 27 per cent de-
crease in March sales as compared
with March. 1882, the decrease in
April was only per cent as COM
pared with the same month in 1892.
In May the decrease was 2 per cent
under May, 1882, and in June 4 per
cent under June, 1882, but there was
Slackening, at least, in the decline.
The confidence and hope engendered
by the advent of the N. r. A., the
reopening of the banks. the steps be-
ing taken to aid the farmer were pri-
marily responsible.
The promise of higher prices stim-
ulated buying precipitately, and made
July an eventful month to merchants,
as to business men generally. In that
month sales in department stores
showed per cent increase over
July. 1882, the first increase over a
month of previous year since 1929
1t was promising sign of coming re-
covery. August showed Is per cent
gain. and long indolent industry was
reused with the placing of orders
which seemed to manufacturers
miraculously large.
Later Lull Necessary.
Stocks were bought so heavily in
the face of price increases that a
slowing up of the forward movement
was inevitable in the Fall. Purchas-
ing power had been strengthened only
in limited degree and it fell again
with the decline in production. But
the public was in at least a hopeful
state of mine, and sales during Sep
tember. October and November re-
manned slightly above those of the
same months in 1882"
The influx of income to the farmer
through administration efforts aided
largely in bringing q renewal Of the
sales increase in December. with
striking gains noted in the agricul-
tural districts of the South, the aSso-
citation noted.
Chain stores and mail order
houses reported phenomenal increases
over December. 1882. Some depart
ment stores reported gains as high
as so per cent. The countrywide
average was per cent over the pre-
vious December. Recovery resumed
its pace"
ceeded expectations and an l8 per
cent increase in department stores
was reported over the Nation-the
increase aided by an extra business
day than in the previous January.
Despite severe Winter weather in
most Of the country during February,
sales in that month are expected to
at least equal those of January and,
with the bulk of Spring merchandise
still to be sold. March may well be
expected to prove an unusually good
month"
Some stores reported profits in
1888 for the first time in four years.
The majority are still suffering losses
or just emerging from the red. It is
not too much to say that merchants
are almost universally reviewing the
future with restored eQuanimity and
cheerfulness. They do not expect
prosperity tomorrow, but their ready
urge to sell and serve the public Il
once more meeting response from
consumers more anxious and able to
buy"