Evening star., 1941-12-15
More Business Gains
In 1912 Predicted
By Credit Expert
Defense May Require
50 Per Cent Of Output,
Heimunn Declares
By EDWARD C. STONE.

BY EDWARD c. STONE.
Despite the outbreak of war, 1912
promises to be prosperous year in
business. Henry H. Heimann, eXeCu-
tive manager of the National AS
sociation of Credit Men, declares
in the associations year-end re-
view and forecast received by the
Washington Association today
With this boom" prediction, the
credit head issues a warning that
not all firms or all sections of tae
country will prosper.
Repetition of the 1941 record Is
indicated, he says, with defense
stimulation being offset somewhat
by the maladjustments and read
justments occasioned by the transi-
ton from peace to a defense basis.
Instead of a present utilization of
Is per cent of our total production
for defense, he expects an eventual
so per cent devoted to that program.
The sudden change from a normal
to wartime economy on such a
vast scale, unfortunately, cannot be
engineered in so short a period with
out the strains and stresses wit
messed in the past year-and will
continue to observe during the new
year.
Reduced volume for some firms,
partial employment or temporary
unemployment for some workers,
dislocations caused by priorities and
ALLEGATIONS, shifts in marketing
channels-theSe are only a few of
the problems that will be increas-
ingly with us during the coming
12-month period.
Profits Affected by Costs.
Even those firms which experience
boom activity, will have less to show
for it by way of net earnings than
might reasonably have been expect
ed from normal peacetime business.
Higher material and labor costs,
coupled with ever-r rising tax bur-
dens, will leave a decreasing mar
gin of earnings, Mr. Heimann says.
Business will be projected into
the new year with the stimulus OF
record d-breaking retail trade during
this year-end holiday season. The
present year shows new peaks
reached in retail sales. They will
very likely be sustained in the year
ahead. Part of the increase in dol
lar volume, however, will reflect
rising prices.
A temporary setback to consumer
buying can be anticipated in the
late winter and spring months, i. e.
in the period around the first in
come tax ds .e. Then, for the first
time, many will realize more fully
just what a defense tax bill means
Higher prices will be evident in
1912. The currently advocated price
control measures are not likely to
do the necessary job of holding down
prices.
Unbridled imitation will not take
place during 1912, Mr.. Heimann de-
clares, but the national debt will
continue its upward climb during
the year.
National Bank Assets Noted.
Nine national banks in Wash
ington had aggregate assets of
1913, ,156,00O on September "a, &C
cording to a survey recently made
public by the Controller of the Cur
rency, and based on the last condi-
ton call.
The same banks had loans and
discounts amounting to S68, ,290 900
and Government obligations total
ing s75,947,00O. The nine banks re-
ported. s187 ,837 900 in demand de-
posits Ind $50, ,4s8, 900 in time de-
posts. Deposits of all kinds to-
tailed s29O,2O4.OOO.
The banks reported liabilities, ex-
cluding capital accounts, amounting
to 1921, ,126,000. They reported a
total surplus of S7,360,000 and un-
divided profits of S5,271,00
Today's Trading on Exchange.
Capital Transit opened the weeks
trading on the Washington Stock
Exchange with a 30-share sale at
14os, ex-dividend This wah prac-
tically unchanged from last week.
There were no other sales. Bids
for Washington Gas common, one
of the most active stocks on the
list, stood at 1412, with Is asked.
For Mergenthaler 26 was bid and
% asked, eX-dividend.
Department-store sales in the
Richmond Reserve District from
January to December were 20 per
cent better than last year, per
cent under st. Louis which heads
the list, according to the Federal
Reserve Boards current review. For
some weeks Richmond district trade
has held the same 81 per cent gain
as st. Louis.
Cleveland district trade is up 20
per cent, Dallas and San Francisco
19 per cent and Atlanta l8 per cent.
Stores sales in Boston gained is
per cent, New York u and Phila-
delphia II in the period under re-
view.
Farm Mortgage Bonds Called.
The call for redemption of two
issues of Federal Farm Mortgage
Corp. bonds was announced today
by A. G. Black, chairman of the
Board of Directors of the Federal
Farm Mortgage Corp.
One is per cent issue dated
January Is, 1885, due January Is
1947, and redeemable on and after
January Is, 1912. Bonds of this
issue will cease to bear interest on
January Is.
The other is a 2$4 per cent issue
dated March /, 1885, due March l.
1947, and redeemable on and after
March l, 1912. Bonds of this issue
will cease to bear interest on March
!.
Approximately s236OOOOOO and
SOB 100000 respectively of bonds OF
these two issues are now out5tand-
ing. The bonds are redeemable al
anv Reserve Bank or branch, or al
the Treasury Department.
Heard in Financial District.
Because of sharp ADVANCE II
sales, 1941 net earnings Of the Ma
tional Dairy Products Corp are eN'
pected to be somewhat ahead OF l94o
Thomas H. McInnerney, chairman
of the board, has informed stock
holders.