Evening star., 1953-09-13
Stability Marks
Local Business,
Survey Shows
OVERALL Situation
Firm Despite U. S.
Cuts, Spotty Sales
BY DonoId B. HodIey

jobs and SpottineSS of sales II
some lines, the overall business
situation in Washington shows
remarkable stability, a survey BY
The Star disclosed yesterday.
While employment and depart
ment store sales in the Metro
po1itan Area are moderately be.
hind a year ago, bank clearing:
and debts, building and >ioar
savings, postal receipts ano
building permits have set new
records.
Automobile sales, insurance
sales, demand deposits of banks
hotel business and other indi-
Gators also have registered gains
from year ago.
Department store sales have
furnished the most publicized
decrease. but official figures from
the Federal Reserve Bank OF
Richmond show that Washing
ton Area sales were down only
2 per cent from a year ago in
the period from January
through September S. Down
town department store sales
were down 5 per cent.
Census Reports Gains.
On a broader basis and in
cluding some 400 independent
retail establishments in the
Metropolitan Area, the Census
Bureau reported sales in the
first seven months of this year
were 6 per cent above a year
ago. July sales were up II per
cent. This favorable study was
distorted by a large gain for
automobile dealers, but declines
in most other lines were slight.
Employment in the area to-
tailed $4,000 IN July, decrease
of only 3.6 per cent from a year
ago, the United States Employ
ment Service reported.
OF this total, Federal Govern
ment employment of 241 500 was
down 10 per cent, about half of
which was normal turnover
without requirements. Private
employment of 345.5O0 was off
1.3 per cent. including small de-
creases in construction and re-
tail establishments.
August Slump.
Department store sales showed
an August setback as a result of
the heat wave and the sharp
snapback which occurred only
in the last week has not yet
been reflected in the Federal Re-
serve figures. Neither the slump
nor the recovery is likely to have
much effect on sales charts for
the year to date.
Beyond this zigzag caused by
weather. however, was some
spottiness in department store
trade. In general, establish
ments selling medium to higher
priced merchandise have had a
good year so far, Whiln those
selling medium to low-priced
goods have accounted for most
of the decline.
Stores in the latter category
have had steady parade of new
records for the last ten years
and depend on large volumes and
small margins. AS a result, mod
crate declines in sales have af-
fected earnings materially in
some cases.
Appliance Firms Complain.
In the appliance trade, from
which some of the loudest COM
plants have come, number of
dealers working with compara-
lively high operating costs. have
lost much business to discount
firms offering more attractive
prices, but the overall volume
of appliance trade in the area
shows little decline from a year
ago.
Washington bank clearings
(checks) reached new highs in
August and in the first eight
months of this year. August
clearings were 6.5 per cent above
q year ago, while clearings in the
eight-month period we're ST. per
cent higher.
The city's bank debits-with-
drawals from demand deposits
set records for July and the first
seven months of 1858. July deb
its were ga per cent above a year
ago, while those for January to
July were up 1.3 per cent.
Demand Deposits Up.
The weekly report for IA
Washington Reserve member
banks. most reliable current in
dicator for the city's 19 banks
and trust companies, disclosed
that on September 2 demand de-
posits were 81 per cent above a
year earlier, while time deposits
were off siX-tenths of one per
cent.
Total loans of these IA banks
on the same date were 9 per
cent above year ago and COM
mercial loans were up 2.9 per
cent. Real estate loans were
4.8 per cent higher. In the cate
CORY of other loans, mostly con-
sumer loans. there was an in
crease of 81 per cent.
Invested savings of building
and loan associations here at
the end of July were about IA
per cent above last year, and
the highest on record for this
date. Loans also were IA per
cent higher.
More New Cars.
The District registered 17.746
new-car titles in eight months
this year, compared with 15.159
a year ago, a good measure of
active automobile business. New
car titles in August totaled l.84l,
compared with 995 a year earlier.
Title transfers, representative
Of used-car sales, totaled 1882