Evening star., 1936-07-14
BONUS HELD BOON
!. TO RETAIL TRADE
Bankers Here Consider
Funds Vital Factor in
Mounting Sales.
BY EDWARD C. STONE.

rational trade upswing which is now
being reported from nearly all cor
ners of the United States.
With the payments starting on June
Is, the bonus checks no doubt played
an important role in the 13 per cent
gain in store sales in Washington in
June and the gain of II per cent in
the fifth Federal Reserve district, in
comparison with the like periods of
1885, financiers here assert.
Bankers and merchants also express
the belief that the bonus buying has
not spent its force by any means. 1t
should go on indefinitely in a moder-
ate way, they add, and be factor in
preventing any Summer trade lull of
any serious proportions. There is a
notable flow of bonus funds into re-
tail trade channels considered much
more healthy than the buying orgy
which was predicted before the pay
ments were started and which did not
develop.
Bonus Money Boosts Trade.
In connection with bonus and other
trade factors, the monthly chain store
report from Childs, JeffrieS e. Thorn
dixie is timely. The first 25 chain
stores to report for June showed II
per cent increase over the like month
a year ago, by far the largest monthly
gain reported since the depression.
For the first six months, which were
completed with the June figures, the
chains did a total volume of s1,207,-
247,3O8 as contrasted with 81 ,083 $685.
COS, or an increase of ia per cent,
which is the best showing made since
the sharp increases of 1889, when the
chains were recovering from the abb
normally low volume of 1882. From
the dollar viewpoint, however, the
volume for the first six months is the
best since 1929, and in many cases in
dividual companies reported figures
substantially in excess of the volume
during that year. This was true par
ticularly of the mail order division,
where in some instances sales for the
first six months were the largest ever
reported
Apparel Sales Enjoy Boom.
So far as the bonus is concerned,
it would appear that the apparel
chains we're the most directly affected.
In this group. where the trend has
been distinctly upward since last Sep
tember. individual gains ranged up as
high as Al per cent. The auto supply
chains, where the trend of sales has
been distinctly disappointing during
most of the current year. first on ac-
count of the unusually hard Winter.
and later in the year because of the
floods in the Eastern part of the coun-
try. there were gains as high as BAT
per cent, large part of which was
directly traceable to bonus buying.
But as has been the case in recent
months, it was the mail order divi-
sion which led all other groups, both
from the viewpoint of percentage gain
and dollar volume increase. These
groups are enjoying the best year in
most cases in their history, the survey
adds.
The shoe chains, which consider
June the best all-around month of the
year, showed an increase of 214 per
cent, which was the best reported for
any June since 1929. The only two
groups where the showing was not
spectacular we're the grocery and the
drug divisions, probably due to the
fact that these chains did not feel the
stimulus of the bonus payments as
much as some Of the others, the re-
port says.
Seaboard Stock Offered Here.
James M. Johnston & Co., Wash
ington. and Leach Bros. New York,
are offering today 10000 shares of
Seaboard Finance Corp. So cumulative
preferred stock, no par value, with
common stock purchase warrants at
tached. The preferred stock is being
offered at S28.50 per share, and the
warrants entitle holders to purchase
one share of common for each share
of preferred held at $40 share at
any time on or before April 80, 1899.
The purpose of this issue of pre-
ferred stock was to acquire and pay
for small loan notes, automobile
finance notes and other assets pur-
chased on May 1, 1886. from South
ern Security Co., Inc, Atlanta, Ga,
for whose account the stock is being
offered. The sale of common stock
will provide Seaboard Finance Corp.
with additional working capital.
The preferred stock is redeemable,
at the option of the corporation, on
any dividend date at $50 per share
and accrued dividends. OF the total
authorized $4,000 shares of preferred
stock, 10000 shares were outstanding
prior to the present offering. OF the
authorized 100000 shares of common
stock, $4,000 shares are now outstand-
ing. with 10000 additional shares re-
served against the exercise of COM
mon stock purchase warrants.
The corporation is engaged in the
personal finance business, operating a
system of Offices in principal cities
Of Virginia, Tennessee and Georgia
For the first four months of 1886 the
company reported net earnings, ap-
plicable to dividends, for the consoli-
dated system, of s95,064.
Riggs Declares Dividends.
Following the regular meeting of the
Board of Directors of the Riggs Ma
tional Bank held late yesterday, Rob-
ert " Fleming, president of the bank,
stated the regular semi-annual divi-
dend had been declared upon the pre-
ferred stock of the bank, payable Au-
gust to stockholders of record
June 80.
The board had declared the regu-
Tar dividend on the common stock,
81 per share, payable on July is, to
stockholders of record June 80, and
81 per share, payable October IS, to
stockholders of record September 80.
Mr.. Fleming further stated that ad-
ditional reserves had been added for
the retirement Of preferred stock, and
chat the directors also authorized the
transfer of $4,000 from undivided
profits to surplus account.
Bank Stock Active Today.
Ricrs National Rank common stock