Evening star., 1934-07-15
Fifty Per Cent Drop
In Wholesale Trade
BY HARDEN COLFAx.

Wholesale trade in the United
States was "of" more than so per
cent in 1888. as compared with 1929.
and the number Of employees in that
| branch Of American business, as well
as their combined salaries and wages.
| declined more than 80 per cent dur
ing the four-year period. Such Is
the conclusion of the census of Amer
fcan business which Is just being
completed by the Bureau Of the
Census.
While wholesale trade was falling
off by one-half. roughly, in the four
years since the last regular census
of business was taken. retail trade
also declined, but in considerably less
degree. 1t Is generally held that
wholesale trade is only preparatory to
retail trade. The uninitiated expect
these to match almost dollar for dol
lar. This is not the case. The fact
is. as pointed out by Census Bureau
officials, the bulk or value OF whole
sale business is not In any way an
indication Of what has been done In
retailing
Wholesale trade includes many
things. 1t includes the business OF
brokers and agents who, in turn. sell
to wholesalers, which means that
their business is duplicated. Whole
sale establishments. moreover, handle
large quantities of industrial goods
that are not intended for the ulti-
mate consumer at all and are never
sold in retail stores
Wholesale trade also covers a con-
siderable amount OF our export busi-
ness. Exporters are in the whole
sale business just as importers are
What we export. however does not
go through retail stores Many
wholesale organizations, finally are
engaged in the assembling of farm
products. such as raw materials like
grain and cotton which are never
sold through retail channels.
A drop in wholesale trade. there
fore is particularly significant in a
way that does not concern retail
trade at all. Wholesaling is more
fundamental in many ways than re-
failing and lies nearer the heart Of
the business situation Wholesale
trade has to do largely with capital
goods and is more closely related to
the labor situation and general busi-
ness recovery.
The Census Bureaus survey OF
wholesale establishments throughout
the country is nearing completion and
summaries for "a States and the Dis
trict of Columbia have now been made.
Exact figures for some Of the larger
industrial States are still missing. but
from preliminary figures the census
officials conclude that throughout the
country since 1929 there has been a
decrease of AZ per cent in the num-
Der of wholesale establishments and
falling of of 554 per cent in the
volume Of business. The number OF
establishments decreased but slightly
as compared with the falling off In
the volume of business. This is taken
to indicate that sales per establish
ment in 1898 we're considerably less
than they we're in 1929.
Salaries and wages declined much
more than the number Of employees,
indicating that the average income Of
employees engaged in the wholesale
trade declined about 20 per cent in
the four years. When. however, it is
taken into account that the cost OF
living in 1888 was much lower than
in 1929 and that the average reduc-
ton in prices was more than 25 per
cent, it would seem to be a fair infer
ence that, on the whole. employees in
wholesale trade Jared rather well.
(Copyright. 1934)