The Wilmington morning star., 1944-05-08
HEAVY DOMESTIC
SPENDING SEEN
BY ECONOMIST
Babson Believes Most Fam.
lies Will Splurge Soon
After War Ends
BY ROGER BABSON

III IllC OIhLCSt otdtCS. otd-
tisticians believe that some IS per
cent of these families will be heavy
spenders as soon as the German
phase of the War is over. People
have accumulated the funds with
which to make very substantial
Most articles will be
bought to replace present equip
ment.
Automobile Outlook
Just when the automobile COM
panies will be able to again manu-
facture passenger cars is not now
known. The chairman of the board
of one of the largest companies in
the industry recently said that his
company originally based its plans
on the assumption that the German
War would end in November. Re-
Gently, however, the directors of
this company have revised their
time schedule. They do not now
believe the War will be over in
November.
Customers for new cars should
not expect new models. Cars will
constitute what would have been
the 1912 models plus few refine
ments. Trucks for civilian use will
be available before passenger cars.
anticipate that at least 100000
families will be in the market for
new automobiles. This does not in
clude cars sold for export, uced car
sales or cars purchased on whole
sale basis for sales forces. These
families will spend at least $780,.
600, 900 for new cars just as soon
as they can be delivered.
Household Appliances
This market includes all of the
varieties of household equipment
commonly in use, such ac electric
irons, sewing machines, vacuum
cleaners, washing machines,
stoves, radios, refrigerators,
fans, garbage disporal units,
lamps, carpet sweepers, mangles,
electric coasters, etc. $780, 900
families will want one or more
household appliances. Many of
these will buy some kind Of me-
chanical refrigerator and possibly
100000 radios will be purchased.
A potential market, in excess Of
81, 200, 100000, therefore exists for
household appliances. This d o e S
not include household equipment
for apartments, for commercial use
or for export. In connection with
the sale of such articles, the sales
forces of dealers and distributors
will greatly be increased. For the
small businessman, the .merchan-
dizing of household appliances may
offer an attractive future.
Home Furnishings
Many items in this category,
such as floor coverings and furni-
ture, have not been restricted dur
ing the War. To some extent, fami-
lies have been able to keep abreast
of the replacement demands and
buy some new articles. Home fur
nishings, therefore, will not enjoy
the postwar demand that the more
restricted metal and rubber con-
sumers goods will have.
Nevertheless, nearly 6,500,0 900
families will buy furniture, rugs,
carpets and or linoleum along with
lamps, glassware, curtains, dra-
peries and household linens. Most
of the thousands of couples who
have been married during the War
have not yet had an opportunity
to furnish their homes. Further
more, there may be sharp rise
in marriages after the War which
should mean several hundred thou
sand more customers.
What About Building?
Within six months after the war
is over and materials are available
at least 1900, 1000 families should be
in the market for a new home.
Nearly Is per cent Of these will
not spend more than $4,000 for a
house. A little more than Is per
cent will be able to spend up to
S., 900. This is where the big mar
ket exists for pre-fabricated houses,
provided manufacturers can get
their costs down.
Some 40 per cent of the families
will be able to spend more than
IS, 900 on a new house. AT the mo-
nent, the big real estate market
IS in homes costing less than $10,-
100. After the War before initiation
sets in a good deal of houses should
oe possible at around this figure.
The trend is away from the larger
ype Of house. More household con-
,eniences and better utilization of
space should enable even large
antilles to live comfortably in
mailer houses.
Farm improvements
A big postwar market exists for
epairs and improvements in ex-
sting farm structures. Such inn
would include interior
n d exterior painting, insulating,
lew plumbing and bathrooms and
General re-modelling. Kitchens will
re modernized n d much new
leating equipment installed. Over
10000 urban families are al
most certain to make some kind of
or repairs to their
ZONES in the postwar era. To do
his, they will spend close to 3d..
90, 900.
Most families will not pay cash
or the above described items.
The habit of instalment buying,
While deplorable, is firmly engen-
Tered in the American people. Con-
equently, the outlook fer m ost
redit and financing connnanieS