Evening star. [volume] (Washington, D.C.) 1854-1972, 1943-01-24
Small Business Finds
Ingenious Ways 10
Meet War Changes
Some Compensation Seen,
With Boom Sales
On Cash Busis
BY GARETH MUCHMORE,
Associated Press Rusjness wrt+sr

NEW YORK, Jan. 23.-Dont
count the small businessmen out
yet. For the most part they're still
trying to get the goods you want
and at the same time to meet prob
lens as complicated as the design of
a modern bomber.
The little fellow is conquering
many of those problems with the
same ingenuity manufacturers are
using IN turning out at ever in
creasing rates the munitions for our
growing Army.
Automobile showrooms have been
converted to bowling alleys; small
plants are making war goods on sub
contract; radio and tire dealers have
switched to such unaccustomed
commodities as mems clothing and
stationery in some cases.
What lies ahead depends on the
war. Secretary of the Interior Har-
old Ickes says the country faces
"the brutal fact that the war can
be the final, crushing blow to small
business"
Cash Helps Meet Problem.
Some observers pointed out that
| the war has brought some COM
| pensations.
Money stuffed pockets have
doomed sales in defense areas. Much
business Is for cash instead of slow
credit. Liquidation, if decided upon,
can be negotiated with a minimum
of inventory losses. Expensive serv-
ices can be cut out without alienat-
ing customers.
And, brightest spot of all:
"You can sell darn near anything
you can lay your hands on"
Many stores have closed. But a
businessman normally has only the
same basic problem you have: That
Of making a living
So when the auto salesman or
hardware merchant quits business
he may have gone to hog raising. or
taken a war plant job, or found a
line of business Offering better pros
poets. If so, he probably is still solv-
ing that basic problem.
What happened to business during
the past year? AS the Exchange,
magazine Of the New York Stock
Exchange sums up, the war is tend
ing:
ITO shrink the percentage of the
whole volume handled, greatly in
creasing taxes, draining off labor
supply, increasing labor costs, limit
ing the supply of raw materials. and,
for the retail enterprises, causing a
drying up in the available volume of
things to SELL"
Failures Show Drop.
Here are some statistics from Dun
& Bradstreet, Inc, mercantile re-
porting agency:
Failures for 1912 totaled 9,41O,
drop from the 1881 of 1941 despite
the increase predicted in some
quarters.
Closings were estimated at slightly
more than 10000. That is, half the
BOT 900 concerns delisted from the
mercantile report disappeared COM
pletely; the other half survived un-
der new names or arrangements.
For 194l, the delisting totaled 1923, 900.
A more noticeable effect of the
war, the agency's research staff re-
ported, was a decline in business
births" Additions to the Dun a.
Bradstreet list totaled only 100000
during 1912, compared with 100000
in 1941. While a detailed break
down was not available, it was be-
lieved the greatest drop had been in
strictly new enterprises, while the
number of those merely changing
their names or arrangements re-
manned about steady.
The headaches of trying to stay
in business also we're less attractive
than war jobs to many retail gro
GERS, a survey by the magazine,
Progressive Grocer, showed. 1t fig
ured closings during 1912 ran about
per cent of the SOB, 900 such stores
which were in business at the begin
ming of 1912.
Attracted to War Jobs.
Quitting to take more lucrative
pay in war work was given as the
reason for the majority of closings.
Next in order we're merchandise
shortages military service and too
many Government regulations,
wholesalers reported.
Not as many retail food stores
closed in the past year as is COM
monty believed Progressive Grocer
said, nor did the decline in the
number of stores measure up to the
predictions of many Government Of
ficials and trade leaders.
Many of the wholesalers reported
that they expected an increase in
the number Of closings early in 1943,"
it added.
Among automobile dealers, Auto
motive News reports there is a
growing school of thought that NOR
talities will be smaller than 1942's
10 per cent. 1t cited as factors that
the weaker dealers already had quit,
many still in business had found
they could make money on service
operations alone, the new cars and
used cars still in dealer hands will
help tide over others and few will
hang on in hope the war soon may
he 0ver