Evening star., 1943-01-01

present war, L. p. McLachlen.
Washington's annual payroll, both
Governmental and private, has in
creased approximately IS per cent.
The present Government payroll is
over $50,000000 per month, while
monthly private payrols approxi-
mate $30,000000. Thus there is f1ow-
ing into the pockets of employees in
the District the largest amount of
cash ever placed in pay envelopes,
and at the same time, being distrib-
uted to the city's largest population.
Buying Power Rises.
While this is taking place, the
merchants of Washington will find
1t increasingly difficult to replace
their stocks which the greater num-
ber of people with a larger purchas-
ing power will want and be able to
buy. All businesses will be materi-
ally affected by shortages and ra-
tioning.
Some businesses will close, others
will curtail considerably. It is the
latter group which will have to show
the most enterprise. All of us are
interested in preserving the right of
Tree enterprise in our country
There is no question but that the
market is here.
1t is challenge to the merchant
and the businessman to meet the
situation with which he is today con-
fronted and which will remain with
us at least until the end of the war.
That challenge is presented more
strongly to Washington business
houses than in any other city in the
country. for here we have the definite
stabilizing factor, the presence of
the Federal Government payroll.
While much of the payroll has been
added in recent weeks and months,
nevertheless, due to the part the
United States will play in the war
and the peace that will follow,
Washington's Importance will Ger
tainly not lessen but WILL in fact,
grow as this city becomes the center
o. United Nations effort for a
successful and lasting peace, and
conseque -ltly, the purchasing power
of an expanded Government per-
Sonnel will remain.
Compensating Factors Seen.
There will be, however, compen-
sating factors which will tend to ad-
just the discrepancy between the
purchasing power and the availa-
bility Of goods to be purchased or
services to be bought. Individual
taxes have increased and it is reason
able to assume that they will in
crease even more. We are now re-
quested and may later be forced to
place 10 per cent of our salaries in
War bonds. Increased living costs,
not only here but throughout the
country, will take more of our earn
ings than we have been accustomed
to paying. Because of these leveling
influences the gap will be narrowed.
BY no means will 1943 be an easy
year. On the contrary, it will be
the hardest year which business has
faced since the beginning of the war
in 1899. 1t is the year which will
bear the fruit of all the preparations
we have been making during these
past months getting ready for the
war and actually fighting it half
prepared.
1t is the year in which the great
sacrifices we were told would have
to be made will be actually asked of
us. Business conditions throughout
the country will be affected seri-
ously by wartime restrictions.
Washington will be affected no less
than other cities despite the ad-
vantage given us by reason of the
steady Federal payroll. However
that advantage will provide a cush-
ion upon which businessmen of the
District may rely.