The Waterbury Democrat., 1940-11-12
Business Feels a Draft And It's Not Too Chilling
Sales And Credit Not Likely To Be Greatly Affected
By NEA Service


 Retail merchants, personal loan companies and banks handling small loans have new worry these days.
 Will conscritpion cut into sales volume, discouraging purchases even by those who may never be called for service?
 Will it mean widespread defaults on installment contracts and loan agreements?
 The answers to these questions may well mean the difference be- tween slump and boom for large segment of U. s. business.
 Most of the 17,0O0,OO0 men of conscription age are in the active buying class, in the stage where they want clothes and radios and cars. Most of them are installment buyers.
 Merchants now find the picture less discouraging than it appeared at first glance. They knew that the chances are about 20 to 1 against any potential draftees conscription up until mid-1941. And by the time second contingent is ready for training the first conscripts will have returned to private life.
 Prominent stores in some of the larger cities are taking advantage of the odds against Conscription by making unusual offers to draft eligibles. Buy on time now, they say, and if you are called before January 15 all your payments will be refunded and the goods you re- turn will be donated to welfare organizations. Competitors call 1t smart merchandising at small risk. RETAIL TRADE
 SHOWS GAIN
 Effects on total retail trade are bound to be slight, with maximum of one out of 130 of the population called to the colors at any one time. Beyond that, however, merchants point to the trend in sales now pre- vailing as sufficient guarantee that conscription will never hold down volume.
 Payrolls and employment are sub- stantially higher than year ago; retail sales are from to 20 per cent greater, in various sections of the country. Government experts confidently predict gain of 10 per- cent in store volume to continue through the winter, This is net gain, afSer any possible inroads caused by the draft.
 One of the biggest credit bureaus in the country made a down-to- earth analysis of its particular problem. Taking at random 1000 time payment or charge account ap- plications from each of two days regular flow, it found that 84 per cent were from buyers not subject to the draft, 12 per cent from mar ried men or others near the upper age limits, and less than per cent from single men between 2l and 31. At the time of the survey, those ages were planned for conscription.
 The big mail order stores are excellent examples of the mer- chandising attitude because they run into all the angles, from that of the haberdasher to the tire deal CT. So far, they have felt no falling off in sales because of conscription
 They not only expect its effects to be unnoticeable, but anticipate little trouble with credit. Their credits men are sold on the thought that the American public is a good risk under almost any circum- | stances.
 BUSINESSMEN
 AREN'T WORRIED
 But they also know that the poor est risks are among the class most likely to be conScripted-the young unmarried men. Investigators are always more careful among them and are perhaps more so since the draft registration. Most of them are being asked what provisions they have thought of to carry on pay ments in case their numbers are chosen, but there is no discrimina- tion against good risks simply be- cause of their draft eligibility.
 At worst they will be encour- aged to invest bit more slowly in gay clothing or orange e-colored road sterS.
 Laws applying to the national guard and to conscripts in the regu- lar army establish a moratorium on all debts for men in the service, except where it is determined by court that they can be paid without hardship on the men or their fam flies.
 Both laws are modelled after the Soldiers and Sailors Civil Relief Act" of the last war, passed in