Evening star. [volume] (Washington, D.C.) 1854-1972, 1958-03-16

not to have his name used says
business was hit by the cold
snowy weather Of February, but
overall 1t isn't bad. He doesn't
think Washington is depression
proof, but adds: you'll never
feel any economic troubles al
much here as you will In a city
that has q large manufacturing
payroll. This is a good town tt
be in"
Points to Fear
Another major retailer-whc
thinks Washington is depres-
sion proof. but not recession
proof-says there is resistance
to buying because people are
afraid to spend the money
Feeling this in particular, he
says, is mems wear. "A man
will buy for his wife and kids,
but the first thing he'll do when
he gets a little afraid of the fu-
ture is to stop buying for him
self" y
This retailer reports his bust
ness is off slightly, but not
enough to cause him any worry
yet. Individual store sales" he
says, ARE bound to be down q
little because Of the tremen-
dous expansion Of retail out
lets that has taken place in the
past two years in this area.
Every place you 60 you see new
shopping centers; supermarkets
are carrying more varieties Of
merchandise. The population
growth hasn't kept up with the
increase in retail outlets. so all
of us have to compete a little
harder to get our share. The
inefficient operator is going out
of business"
Three indexes of banking
activity show a basic strength
in the District. but one also
shows q reluctance of people to
buy though they have the
money.
Bank Deposits High
AS Of March 4, total bank
deposits in the District were
81, 408. 479,811. only $408,246
under the all-time record for
bank deposits on December s.,
1856.
Bank clearings for the first
two months of 1858 were close
to $1.2 billion, about 6.S per
cent above the same period in
1857.
Savings and loan association
deposits, meanwhile, were UP to
$500 million at the end Of
February, 10 per cent above a
year ago and a record for the
District. This increase in saw
ingS shows that consumers have
the money, even If they aren't
setting records in spending it.
The savings cushion, how
ever, probably viii mean that
when the Government pay raise
is enacted, Government en-
ployes Will have that much
extra to spend. Al
Other statistics present a
spotty picture; some are good,
some bad. But those that show
a tremendous increase in
planned new construction will
eventually reduce the figures
that show the increase in un-
employment once the planned
construction gets under way.
There undoubtedly will be
continued resistance to what
many purchasers feel are prices
that are too high.
Few retailers. small or large,
feel that they can reduce
prices much beyond current
levels unless some dramatic in
crease in productivity decreases
the unit cost of each article.
Need Volume Rise
All feel they must increase
their volume Of merchandise
sold in order to increase the
amount Of money they take in.
They are confident this will
happen, but it may mean still
harder times for the small
merchant who has found 1t
difficult for many years to
compete with high-volume. d.
versified stores.
The corner grocer isn't going
to find his economic situation
getting any better very soon.
One other statistic deserves
mention. Spectators at the Ma
tional Capital Flower and Gar
den Show tossed about $500
in the shows wishing well.
about double the amount
thrown in last year.
Does this mean the specta-
tors had money to throw away,
or does it mean they had more
wishes to make?