Imperial Valley press., 1942-07-20
CAPITAL TALKS
by
Peter
Edison


the point of the average citizen, the
coming winter is going to be the
coldest this country has experience
ed since Valley Forge.
Being a prophet of gloom is not
nice work, though it is easy to get
in these days of disaster. But TINS
winter outlook is no secret, long
range weather forecast that must
be kept from the enemy, 1t is hard
fact that has to be faced.
Price A d IN II traitor Leon
Henderson called the tune for
this situation before the Small
business Committee of the
House, whose chairman is
Wright Patman of TeXarkana,
Tex. According to Henderson,
the profit level reached its peak
in March. and from here on
smaller profits can be antici-
pated by business as a whole.
There is no real shortage of goods
on the shelves now, as merchants
are selling from inventory. But
within five or six months shortages
will be general. Some Is additional
items probably will be under ra-
tioning. If the necessary anti-in-
flation measures are taken, wages
may be under control, though not
necessarily frozen. And small BUS
iness will increasingly be up
against it. right to the point OF
being forced out of business.
$40 STORE STUFF
The effect of the various limi-
tation orders issued by the War
Production Board have been felt
principally by manufacturers, and
many of them have been able to
get war orders or to keep going
somehow. So far, all the worrying
has been done about the $4,000
manufacturers 1863 900 of them are
usually considered small
The two principal metal limi-
tati0ns orders, the second is
sued only a few days ago, cut
off raw materials for the man
ufacture of some 500 items. In
cluded in this second list were
such insignificant items as per-
fume atOmiZeTy;, book ends, Gig
aret lighters, compacts, door
stops, finger bowls, jelly molds,
letter openers, necktie racks.
pen holders, and wastebaskets.
The war is getting down to the
5 and 10-cent store level.
Gradually, therefore, the wars
effects will be trickling down be-
low the manufacturing level, and
when they do the real small busi-
nesses will begin to feel it some
thing awful Small business isn't
only these 1862 600 manufacturers,
but in addition 72000 wholesalers,
1.6l4.O0O retailers, 638000 service
organizations like laundries and dry
cleaning establish m n is, 100000
building construction companies,
10000 places of amusement and 25,-
900 hotelS-a total of some two and
three quarters million business
which noramlly employ over eight
million people. What happens to
them?
HIT-AND HURT
Many won't be hurt-food whole
salerS and retailers, for instance,
and the amusement spots and
hotels. All will be hit eventually by
labor and transportation shortages
and the rationing programs But by
and large they'll get by Where the
pinch will hit hardest is on the
speciality storeS-dealers who have
built up a clientele in one principal
item. For instance, the $4,000 auto
dealers and the 228,000 filling sta
ton. For them, this war is any
thing but fun, and the service eS-
adjustments will take it on the
chin.
The question is whether all
these little businesses should be
saved, or should be permitted
to go down the drain pipe as
casualties of war. Mr.. Hender-
son still leans to the Canadian
theory that the deserving cases
should be saved by some sort of
subsidy.
Not every small business need be
saved by subsidy, even If subsidy
is adopted. over 100000 business
enterprises fail anyhow during the
course of an average Year, and the
shaky firms, the little businesses
that would fail anyway, must some
how be separated as chaff. The i'm
portant thing is that the subsidy
idea isn't dead and congressman
NAV listen to this subsidy siren
song for a Program of business
boondoggling that will beat any
thing done b. WPA in its best
lpaf-raking dayS.