Evening star., 1947-01-02
GOVERNMENT.

FederaI Cuts discussed.
The new year may unfold a
strange and unusual story for Wash
ington, with conservative Democrats
joining with a Republican majority
in both houses of Congress to force
a substantial reduction in Govern
ment employment and payrolls.
But this is not a widely held view.
Most Washington observers feel
that big Government is here to stay,
regardless of party; that as great
world capital, this city will continue
to grow.
It might be helpful to recall that
the New Deal in 1882 inherited an
executive. branch with. $1,000 en-
ployes in the District of Columbia
and expanded it to include 1872, 2,742
employees by October. 1941, just be-
fore the Nation entered World
War II.
Lack Of space forced the removal
of many Offices to other cities during
the war. AS a result of the squeeze,
Washington employment of the
branch declined gradually after a
peak of 288,O07 in March, 1943, but
still stood at 239, 1892 in October, 1945.
In October, 1916, the total was
225.862, far above 1941 levels and
more than treble 1882 employment.
Offsetting Factors Seen.
It is likely that if and when re-
ductions are made, they will be par
TALLY offset by number of factors
At least some of the separations will
be matched by new Republican ap-
pointments. Agencies such as the
SEC at Philadelphia will be able to
find space for return to the
National Capital. and the drive for
economy will make it advisable.
As workers became available,
Washington's labor-starved business
in 1946 reached out for more en-
ployes and this expansion probably
will continue early in the coming
year.
Any major cuts in Federal en-
ployment, however, will be reflected
by retail trade here. Add to this
the prospect of lower prices and the
answer appears to be decrease in
retail trade from record 1916 levels.
Building Boom Starts.
Construction in the Washington
Metropolitan Area Is expected to
reach its highest levels since 1941
in the coming year. The upswing
started in 1916, but no more than
scratched the surface of the pressing
demand for living quarters.
In eleven months, Of 1916, public
and private construction started in
the Area totaled 500 1886 ,371 against
S52,310,356, the Bureau of Labor
Statistics reported. Included were
1O,124 new family units valued at
s59,321.175 against only 1888 valued
at s21,570,87S in the same 1s4S
period.
An outstanding fact was that less
than third of the new family units
started in the II months were inside
the District of Columbia. More thar
half were in the District in 1945
This emphasis on the adjoining
Maryland and Virginia sections will
probably increase in 1947.
Public and private construction
started in the District alone in the
IL months totaled 500, ,187 ,468 against
$24,566,1 1893 in 1945, including 2.84;
units valued at $13, ASS, ,407 agains
2,773 valued at $10,133,60S in the
1945 period.
Demand is particularly strong fo
apartments and revival of activit.
in this field probably will be a fea
ture of 1947 building.
Unstable prices and increasing
buyer resistance in the coming yea
will increase risks in the home build
ing field to a marked degree. Bank
ruptcy proceedings against on
overextended builder late in 1914
emphasized the need for caution
and the importance of financia
responsibility.
Traffic Problem Acute.
No forecast of 1947 would b,
complete without mention of Wash
ingtons acute traffic problem, whicl
is still increasing and affecting re
tail shopping habits.
Transit passengers in II months o
the last year remained about ever
with high 1945 levels and nearl.
double prewar 1941. Vehicular trafh,
in November was Is per cent abov,
year ago and around per cen
above peak prewar levels.
Because of higher costs as well a.
overtaxed facilities. downtow,
parking lots and garages recent,