Credit Deadline

Credit managers had a busy weekend, worked several times around the clock freezing past due accounts. When their stores opened this week, they found that they had about 25% fewer able-to-charge customers. Frozen were the accounts of many an old and valued patron. Strange and wonderful were the tactfully worded notices from credit managers to these solvent but delinquent payers.

In New York--where 1.2 million accounts are usually paid 64 days after customers receive their bills--about 300,000 accounts were frozen.

All this was part of the Government's program for closing a bit of the inflationary gap by making people pay off their old debts before running up new ones. All accounts must now be paid in 70 days (i.e., June purchases by August 10). With department-store dollar volume already running below 1941, most merchants thought it would mean extra-slim pickings this month while the arrears were being cleared up. After that, there should be no sales slump solely because of the credit straitjacket.

Charge-account sales represent about 23% of all U.S. retail trade. In medium-price department stores, 35 to 50% of volume is charged; in higher-price stores, up to 75%.

General Electric orders in the June quarter were a whopping $566,250,000, one-quarter larger than its entire annual sales in the boom year 1929. Almost 100% war work, the new orders will help boost GE's 1942 sales to $1 billion or better.

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