Full text of G.17 Department Store Credit : December 5, 1947

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uCXJtD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
RESEARCH DEFARTf.-nifJt
G.17.3

D e c

DEPARTl£MT STORE CREDIT

W

% ; W

FEDERAL, RESERVE B A N K

RICHMOND

OCTOBER 19U7
I n s t a l m e n t a c c o u n t s o u t s t a n d i n g a t department s t o r e s - showed about t h e
customary r i s e i n O c t o b e r , and c o n t i n u e d about t h r e e - f o u r t h s , above t h e y e a r - a g o
l e v e l . C o l l e c t i o n s on i n s t a l m e n t - a c c o u n t s w e r e - ^ - p e r c e n t l a r g e r ! t h a n i n September,
b u t t h e r a t i o of c o l l e c t i o n s t o i n s t a l m e n t a c c o u n t s on t h e f i r s t of October was
u n c h a n g e d . a t 31 p e r c e n t . The average repayment p e r i o d f o r i n s t a l m e n t a c c o u n t s
o u t s t a n d i n g i n October was a b o u t f i v e and o n e - h a l f months.
Charge a c c o u n t s r e c e i v a b l e i n c r e a s e d by a b o u t t h e u s u a l amount i n
O c t o b e r , and a t t h e end of t h e month were 16 p e r c e n t h i g h e r t h a n a y e a r e a r l i e r .
C o l l s c t i o n s on charge a c c o u n t s r o s e s u b s t a n t i a l l y , a s i s customary i n O c t o b e r , and
the c o l l e c t i o n r a t i o i n c r e a s e d f r o m 53 p e r c e n t t o ' 5 7 p e r cent* At t h e c u r r e n t
r a t e of repayment charge a c c o u n t s would b e o u t s t a n d i n g , on t h e a v e r a g e , about
S3 d a y s ,
^
The volume of c a s h and c h a r g e - a c c o u n t s a l e s r o s e s e a s o n a l l y i n October,
w h i l e i n s t a l m e n t s a l e s i n c r e a s e d l e s s s h a r p l y t h a n i q o t h e r r e c e n t y e a r s . Cash
s a l e s , wliich new a c c o u n t f o r 53 p e r c e n t of t h e t o t a l , were i n s l i g h t l y l a r g e r
volume t h a n a y e a r a g o . S a l e s on c h a r g e account gairied 11 p e r c e n t o v e r t h e y e a r p e r i o d ; t h e i n c r e a s e i n . t h e same p e r i o d f o r i n s t a l m e n t s a l e s was 50 p e r c e n t .
Department S t o r e S a l e s , Accounts R e c e i v a b l e ' and C o l l e c t i o n s
P e r c e n t a g e chang'e'from:
September 19U7 October 19U6
to
to
.
October 19k7
October 19h7 '
S a l e s d u r i n g month
. Cash
Instalment
Charge a c c o u n t

;

Accounts r e c e i v a b l e , end of month
Instalment accounts
Charge a c c o u n t s
C o l l e c t i o n s during month
Instalment accounts
Charge a c c o u n t s
•

+ 2
+5o
+ii

+ 7
+15
+ 9

^

'•
:
/ ,

t 9
+ 9

,

:

,

+12

+ 7
+22 '

,

+ih
• +l6

' R a t i o of c o l l e c t i o n s d u r i n g m o n t h . t o a c c o u n t s r e c e i v a b l e a t b e g i n n i n g of month

Instalment accounts
Charge a c c o u n t s

Oct,
19U7

Sept.
19U7

Oct.
1916

31
57

31
53

39
60

N o t e . — F i g u r e s f o r October! 19U7 a r e p r e l i m i n a r y and s u b j e c t t o r e v i s i o n .




• • •

-^.17.3.

- 2 DRPART1Z2RT STORES - OCTOBER 19h 7
Cash and C r e d i t S r l e s , by F e d e r a l Reserve D i s t r i c t s

federal
Reserve

Cash s a l e s
Oct.
Sept.
Oct.
19k6
19k7n- m ?

Boston
" .
211.
= 21^\
Rerr York
..
215
238
'Philadelphia2L3 229 .
Cleveland
231
22k Richmond
216
2kl
Atlanta
239
-313
Chicago
.25k
2k3
S t . Louis .
216
253
R'inneapolis
• 317
296
Kansas C i t y
319
3k3 .
Railas
331
325
San F r a n c i s c o
270
217
252

,

236

I n d e x e s : 19kl a v e r a g e = :100
Charge-- a c c o u n t s a l e s
. Instalment:sales
Oct.
Sept.
Oct.
Sept.
Oct.
Oct.
19L6
191:7
1916
19k?p ^ 1 9 k 7
19k7n

22k.
193"
259.
229
2kl
316
261
263
301
339
391
293

. 167 .
196
19k191
IkO
196
162 ^
186
. - 131 '
227
209
1#

2L7

180

lk6
159.
.

%

126
165
118
197
163
20$
197
US
156

130
103
' '123
126
107"
lk3
113
lk6
169
13k
i 160
116
120

202
191
19k
202
178
163
. 206
238
199
22k
205
20S
223
. 209
209
232
21k
220
219
213
198
' 221
229
210
232 : ' 217
259 .
217
237
212
283
^ 280
299
206
' 221
231 '
22$

I

206

J

203

Accounts R e c e i v a b l e and C o l l e c t i o n s , by F e d e r a l R e s e r v e D i s t r i c t s
• Federal
Reserve
District.

Accounts ou t s t a n d i n g , 1end of month
Collection r a t i o s •
I n d e x e s ? 19kl a v e r a g e = 100
Char;ge a c c o u n t s
Instalmei n t
Charge a c c o u n t s
In:3t.drr.ent
O c t . - S e p t . O c t . O c t . S e p t . Oct.. O c t . S e p t . O c t . O c t . S e p t . O c t .
19b7p I9k7 19k6 19k7p 19k7 19k6 19k7p 19k7 19k6 19k7p 1 9 k T " 19k6

Boston
V7
Re?; York
,.-90
Philadelphia:"" . 9 5
• Cleveland 117
Richmond80
Atlanta
108
Chicago
75
S t . Louis •
88
.'Minneapolis.
Ilk
Kansas C i t y . 113
Dallas'
110 _
SarTFrancisco
95
-V. S . T o t a l

85
8k
. 85
112
6k
100
69
83
99
101
103
88

56
55
k5
57
57
65
k7
57
81
66
67 • i
50'

175
168
19k
186
17k
180
183
205
202
17k
192
173

•87 1 55 ' 181
••'

9 S

162
167
2.3
23
30
k9
k9
153". I k l • • 27 -. . 26 - 2 2 . . k7
k6
166 . 15k - . 30
30 -k2 . 5 6 ""53
27
17k
27
157.
38 ' 55
52
159
Ik5
29
25
k8
33
k5
168 . 160
27
27
3k • k3
kl
172
160
62
65
k'5
kk
53
176
60
163
36
k2
35
53
188
151
37
37
63
"58
k7
62
36
159
lk7 * 36
k5
50
.176
16k
29
61
31
32
58
16k
169
38 . 36
69.
6k
k5
167

.156

31

'31

39 J 57

*

50.
k8
60
. 55
5o
69
67
71
72
6k
61
60

p - preliminary.
v- - C o l l e c t i o n s d u r i n g month as p e r c e n t a g e of a c c o u n t s r e c e i v a b l e a t b e g i n n i n g of
• month.
.
R o t e . — T h e s e ' d a t a a r e based on r e p o r t s of a b o u t k75 l a r g e department s t o r e s r e p o r t . .
- i n g s a l e s by type o f t r a n s a c t i o n , more t h a n 1*00 having c h a r g e a c c o u n t s and
a b o u t . 3 0 0 h a v i n g i n s t a l m e n t a c c o u n t s . Rack f i g u r e s may be o b t a i n e d on r e ' q u e s t from the D i v i s i o n of R e s e a r c h and S t a t i s t i c s .