Evening star., 1941-03-23
Race 10 Harness
Larger Incomes
Gets Under Way
Merchants, Federal
Government Scramble
For Extra Dollars
BY FRANK MacMILLFS,
Associated Press Business Writer

chants and the Federal Government
began a scramble this week for the
flood of extra dollars destined TO
flow into workers pockets before
snow flies next winter.
With income payments to individ-
ualS this year expected by some OBJ
servers to aggregate upwards Of
S85 100000 900, a figure S10000.000.-
900 above last year and al least
$4,000 100000 greater than in the
boom year" 1929, record breaking
sales of consumer goods of all kinds
are held "just around the corner
The Government this week was
counting up the $1,000 100000 it
gathered this month in individual
income tax collections, an amount
far larger than the S665 100000
yielded by income levies in March
last year.
On the other hand. retailers were
beginning to think more seriously
about delivery problems and store
purchases of staple goods in whole
sale markets broadened.
Estimates Are Raised.
Two months ago statisticians were
talking about the possibility of total
retail sales of $50 900 900 600 for 194l,
contrasted with about S45.500000.-
900 last year. Now they are esti-
mating the aggregate may be an
other billion. or two, or three, above
the $4,000 100000 earlier forecast.
Industrial executives in many lines
began shaping production schedules
to fit outflow unlimited of Federal
funds for defense. On top of the
original S28,50O, 900 900 defense pro-
gram and the more recent S7000,-
900 900 for aid to Great Britain, the
Senate this week approved outlay
Of $3.50 100000 principally for naval
and air bases, and other related
items and the end of authorizations
was not in sight.
Steel mill production at 1904 200
tons this week was the largest for
any week in history, with opera
tions close to the ceiling of theoreti-
cal capacity. Electric power pro-
duction was topping last year by
AS per cent and railway loadings
by 22.5 per cent. Yet business Lead
ers on every hand saw present activ-
ity as only sample of things to
come.
Big Drive Planned.
The contest of merchants and the
| Government for the extra payroll
| dollars became more clear-cut as
! plans were unfolded for Government
/ sale of its Securities-from l0-cent
savings stamps up to $4,000 bonds
directly to the public, beginning
/ May l.
The securities sale, patterned
along the line of the World War
liberty loan and war savings stamp
subscription, will seek to gather into
the Treasury the savings" part OF
workers pay to help finance defense
costs.
Thus develops this squirrel cage"
pattern: G The Government pays
/ the arms producer money for arma-
ments: (2) The arms producer passes
/ out 80 per cent or so of the Govern
ment money to his workers in wages;
4 (3) The worker buys Government Sc
| curitieS-he gets a bond. and the
/ Government gets defense dollars
back to spend over again for addi-
| tional ornaments.
Through bond sales directly to the
| public, the Government hopes to
trim increasing purchasing power a
little. too, to lessen demand for con-
sumner goods, and thus restrain price
rises among the everyday items max
ing up the cost of living.
Destined to trim purchasing power.
too, are the higher taxes being talked
of on every side.
Advertising BrOadened.
The merchant, however, is laying
plans for the future, too. He sees the
extra money flowing from factory
paymasters' windows, and he is
building stocks and broadening ad-
vertiSing to get his share of rising
business.
Department and general merchan-
disc stores for 194l to date have ex-
perienced the best business in IL
years, ana Hldlly Oh Ife Dig CndlnS,
like F. w. Woolwoorth and j. c.
Penney in the first two 1941 months
took in more dollars than in any like
period in history.
February sales of passenger auto
mobiles at 345,551 cars were 100 900
above the like month year ago,
indicating the broad expanse of in
creased consumer spending. The
| auto manufacturers are pushing
every effort to build up large enough
stocks of new cars so that no buyer
will have to be turned away this
summer and fall when auto workers
will be spending more time on de-
fenSe orders.
Already merchants are lengthen-
ing commitments in wholesale mar
ketS for goods of many types. Dry
goods this past week were in heavy
demand. While some specified dis
tant delivery, many called for i'm
(See INCOMES, Page E-3)