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Department
BUREAU OF

of

Commerce

FOREIGN AND DOMESTIC COMMERCE

CONSUMER DEBT STUDY

Marck, 1935
Price 10 cenfs

a




THE BUREAU OF FOREIGN AND DOMESTIC COMMERCE
In foreign countries the Bureau maintains 32 offices where information is being constantly
sought relative to marketing conditions throughout the world.
This information is sent
back to the Washington office and there fitted into the economic picture which is continu­
ously being constructed by the staff of business experts. To keep abreast of the swift
changes taking place in our business life; to maintain intensive study of special phases of
economic effort; and to guarantee the closest possible contact with American business the
Bureau maintains the specialized service divisions, and offices, listed below:
INDUSTRIAL DIVISIONS - WASHIHGTON OFFICE
AutomotiveAeronautics Trade
Chemical
Electrical Equipment
Foodstuffs

Minerals
Iron and Steel
Textiles
Tobacco

Machinery
Forest Products
SpecialtiesMotion Picture
Leather-Rubber-Shoe

TECHNICAL DIVISIONS - WASHINGTON OFFICE
Commercial Intelligence
Foreign Trade Statistics
Economic Research

Transportation
Negro Affairs
Finance
Marketing Research and Service

Regional Information
Commercial Laws
Foreign Tariffs

DISTRICT OFFICES
ATLANTA, Ga........................................ 325 New Post Office Bldg,
BIRMINGHAM, Ala............................................ 242 Federal Bldg.
BOSTON, Mass............................................... 1800 Customhouse.
BUFFALO, N.Y..................................... ..Chamber of Commerce Bldg.
CHARLESTON, S. C .................................... Chamber of Commerce Bldg.
CHICAGO, 111............................... Suite 1028 - 333 No. Michigan Ave.
DALAS, Texas........................................ Chamber of Commerce Bldg.
DETROIT, Mich.......................................... 367 New Federal Bldg.
HOUSTON, Texas...................................... Chamber of Commerce Bldg.
JACKSONVILLE, Fla................................. United States Federal Bldg.
KANSAS CITY, Mo.....................................Chamber of Commerce Bldg.
LOS ANGELES, Calif.............................. 206 Chamber of Commerce Bldg.
LOUISVILLE, Ky............................................. 404 Federal Bldg.
MEMPHIS, Tenn.............................................. 229 Federal Bldg.
MINNEAPOLIS, Minn.......................................... 213 Federal Bldg.
NEW ORLEANS, La........................................... 225-A Customhouse.
NEW YORK, N. Y .............................................. 734 Customhouse.
NLRFOLK, Va................................................ 409 Federal Bldg.
PHILADELPHIA, Pa................................... 422 Commercial Trust Bldg.
PITTSBURGH, Pa................................... 714 Commonwealth Annex Bldg.
PORTLAND, Oreg......................................215 New Post Office Bldg.
ST. LOUIS, Mo...................... 825 Louderman Bldg., 11th & Locust Streets.
SAN FRANCISCO, Calif........................................ 311 Customhouse.
SEATTLE, Wash........................................809 Federal Office Bldg.
There are cooperative offices (usually in connection with a chamber of commerce or board
of trade) in 54 other cities.



M a r c h 1935



UNITED STATES DEPARTMENT OF COMMERCE
DANIEL C. ROPER, Secretary

BUREAU OF FOREIGN AND DOMESTIC COMMERCE
CLAUDIUS T. MURCHISON, Director

CONSUMER DEBT STUDY
By

H . T. LaCrosse

Price 10 C e n t s

<m

m§.

Page
Foreword................. . . ........... ....................... 1
Conclusions......................... .................. .
2
Method and Scope of Survey........................................ 3
Total Business.................................. ................ , 4
Kind and Extent of Credit Business........... .................... 4
Delinquency of Accounts Owing to Hetail and Service Creditors . . . .
6
Delinquency According to Size of Business . ....................... 9
Retail Creditors ........................... . . . . . . . . . . .
9
Service C r e d i t o r s ...................................... . . . . 12
Delinquency According to Degree of Credit Business......... . . . . 1 5
Delinquent Accounts Expected to "be Collected . . . . . . . . . . . . . 1 7
Methods Used in Collecting Delinquent Accounts............. .
19
Sources of Credit Used by Creditors ...................
21
Accounts Receivable Compromised . °......... .............. . . . . 2 3

Table 1.- Kind and Extent of Credit Business of Reporting Retail and
Service Creditors, 1933, By Type of Creditor......... . 5
2.- Somber and Value of Retail and Service Creditors' Accounts
Receivable Delinquent Six Months or More on December 31,
1933 ................................ . . . . . . . . .
8
3-12.- Value of Accounts Receivable Delinquent Six Months or
More on December 31, 1933, Grouped According to Size
of Business:
3.- Department S t o r e ............................... 9
4.- Electrical Dealer.............................. 10
5.- Furniture S t ore....................... ; . . . . 10
6.- Grocery Store................... .............. 11
7.- Men's Clothing S t o r e ...........................11
12
8.- Women's Clothing S t o r e ................. .
9.- Dentists' ........................ . . . . . . . 13
10.- Doctors'....................................... 18
11.- Landlord's..................................... 14
12.- Undertakers'................ . . . ............ 14
13.- Value of Retail and Service Creditor's Accounts Receivable
Delinquent Six Months or More on December 31, 1933,
Classified According to Degree of Credit Business . . . . 16
14.- Proportion of Retail and Service Creditors' Accounts
Receivable Delinquent Six Months or More Expected to be
Collected and Anticipated Collection Cost ............. 18
15.- Methods Used by Retail and Service Creditors in Collecting
Accounts Delinquent Six Months or M o r e ........... . . .2 0
16.- Sources of Credit Used by Retail and Service Creditors in
the Conduct of Their Business During 1933 ............. 22
17.- Number of Retail and Service Creditors' Accounts Receivable
Compromised During Six Months Period, 1933-1934 ........ 23
Some publications of the Bureau of Foreign and Domestic .
Commerce...................................... . Inside back cover




The purpose of this consumer debt study was to gather selected facts on
the extent to which consumers' accounts with retailers and professional men
were long overdue.

Some people believe that an enormous amount of delinquent

debt has been accumulated by consumers because of unemployment or severely
reduced incomes.

To the extent that this situation holds, creditors having

much of their capital tied up in these accounts may have difficulty in secur­
ing bank loans.

At the same time, consumers recently reemployed may find thei

incomes largely diverted into debt liquidation, rather than into new purchases
This study was inaugurated by a Conmittee on Consumer Debt, appointed by
the Consumers1 Advisory Board of the National Recovery Administration.

The

basic data were gathered by the staff of the District Offices of the Bureau
of Foreign and Domestic Commerce and by a small group of men employed by the
Works Division of the New York Emergency Relief Bureau,, working under Mr. Rolf
Nugent, who is directing the general study for the Committee.
Acknowledgment is made for the valuable assistance rendered by the follow
ing organizations and individuals:

all retail and service creditors who gave

their confidential figures, Mr. Rolf Nugent, district office managers of the
Bureau of Foreign and Domestic Commerce, and H. B. Moore, R. M. Sanders, and
Z. A. Koenig of the Market Data Section of the bureau.
This report was prepared by H. T. LaCrosse, under the general direction
of N. H. Engle, Assistant Director of the Bureau of Foreign and Domestic Com­
merce, and Wilford L. Waite, Chief, Marketing Research and Service Division,
and represents one section of a more detailed analysis being prepared by
Mr. Nugent, on behalf of the committee.

March, 1935.



Claudius T. Murchison,
Director,
Bureau of Foreign and Domestic Commerce.

Conclusions

1.

The proportion of total business on credit was much greater for the

service group of creditors (90 percent) reporting in this study than the re­
tail group (54 percent).
2.

(See page 5)

The ratio of delinquency was much higher for the service creditors

(59 percent) than the percentage of delinquency for the retail creditors
(13 percent).
3.

(See page 81)

Of the amounts delinquent six months or more, 658 creditors reported

that 66 percent was expected to he collected; 68 percent for the retail group
and 52 percent for the service group.
4.

(See page 18L)

The anticipated costs of collecting delinquent accounts is about the

same on the average for both the retail and service groups.

The retail credi­

tors reported that of the amount they expected to collect^ 12 percent would be
spent in collection costs; service creditors, 15 percent.
5.

(See page 1&)

Over 800 creditors reported that dunning letters and personal visits

were the most common methods used in collecting accounts delinquent six months
or more.
6.

(See page 20J
IPhe commercial bank.was reported most frequently by both the retail

and service creditors as the source of credit used in the conduct of their
business.
7.

(See page 22.)
The percentage of retail and service creditors effecting a compromise

of delinquent accounts"*«a. approximately the same.

Jor the retail group 232

or 45 percent of the total reporting followed this practice; 138 or 46 percent
of the total service group reporting did likewise.




- 2 -

(See page 23.)

Method and Scope of Survey
The field investigation method of study was followed in collecting material
for this report.

A few representatives of 10 major creditor groups in cities

located throughout 21 States were asked to furnish information showing their
experiences in dealing with consumer accounts.

Factual data and opinions were

submitted on the number and value of accounts outstanding six months or more,
proportion expected to be collected, methods used in collecting these accounts,
and other relevant points pertaining to the subject.
The median and arithmetic average as well as the highest and lowest per­
centages reported by each class of creditors have been employed to esqpress the
various relationships based on tabular material.

The median was obtained by

arraying the individual percentages in order of magnitude and selecting the
"middle item*, that is, the percentage located where the number of items larger
and smaller were equal.

The arithmetic average is the figure used throughout

the text in describing conditions unless otherwise specified.
A total of 839 creditors located in selected cities in the States appear­
ing in the footnote to Table 1 submitted reports that were usable in at least
one table.

In the compilation of each table, all those reports containing

pertinent material were included.

Results have been presented separately by

States where 15 or more reports were received from any one type of creditor.
The data collected and analyzed in this report are presented with a full
reallzation that the sample is very small.

While there is no reason to believe

that these results are at all representative of consumer debt conditlons generall£. it is believed that they have sufficient significance to .justify their
publication on the grounds that a few carefully selected facts, well analyzed.
are better than none at all.




- 3 -

'Total Business

The total net business of the 718 creditors reporting on this subject
in the study amounted to $462,578,517 for the year 1933.

This amount,

distributed among kinds of business in Table 1, furnishes some indication
of the sample obtained for each class of creditors.

The bulk of the busi­

ness (98 percent) was done by the retail group, a fact caused by the number
of reports from department stores with relatively large sales in 1933.

Kind and Extent of Credit Business

The proportion of total business on credit (open And installment) for
this group of 718 creditors amounted to 55 percent.

The Service group had

a much greater proportion of business on a credit. ba*is than the retail
group; 90 percent as compared with 54 percent for retailers.
Furniture stores did a larger proportion of their business on a credit
basis than any of the other types of retail stores (89 percent) althougi
electrical goods store figures irere also high (86 percent).
The highest percentage of credit business reported by any of the gro,ups
was 94 percent, the figure for undertakers.




-

4

Table 1.- Kind and Extent of Credit Business of Reporting Retail and Service Creditors, 1933

Kind of credi tor
Retail:
Department ............
Electrical goods ..

: Humber of :
: creditors :
: reporting

Total net :
business :
Dollars :

Cash
Dollars

:Percent:

Otsen credit
:
:
:
:Percent:
Dollars

Installment credit
••
Dollars .
4Peroent

Grocery ....... .........
Men's clothing . . . .
Women18 clothing ..

7**
5U
82
113
73
68

332.893,59U
7.93*.9*8
28.387.515
15,682,805
27.862,735
39.577.900

l 67 .UU3 .OU7
1.1U9.555
3,233.930
8,ooo,UUo
1 2 , 102.022
IUJU 9.626

50.3
lU.5
1 1 .U
51.0
U3 .U
37.3

139.015.737
3 . 312.726
5.U21.959
7.682.365
1 U . 966.0U6
23 , 861,109

Ul.8
Ul.7
19.1
U9 .O
53.7
60.3

26 .u3u.s 10
3 .U76.701
19.731.626
79U.667
967,165

2-9
2 .U

Service:
Dentist .................
Doctor (M.D.) .......
Landlord ................
Undertaker ............

82
58
5U
6o

796,289
775.021
2.5**9.599
6,nU,077

182 M S
100,590
366,Uoo
388,5U3

22.9
13.0
lU.U
6.U

551.607
6U0.902
2.1U8.199
5.301.833

69.3
82.7
8U.3
86.7

62 . 19U
33.529
35.000
U23.701

7.8
U.3
l.U
6.9

Total Retail .........

U6U

U52 . 3U3.531

206,678.620

U5.7

19U,259.9U2

U2.9

5 1 .U0U .969

1 1 .u

Total Service .......

25U

lO. 23U.986

1 ,038,021

10.2

8 . 6U2 .5U1

8U.U

55U.U2U

5*U

Grand Total ...........

718

U62.578.517

207, 7i 6 , 6Ui

UU.9

202. 902.U83

U3.9

51.959.393

1 1.2




7*9
U3.8
69.5
—

Delinquency of Accounts Owing to Retail and Service Creditors

In practically all forms of "business enterprises extending credit, the
problem of delinquency is present to a varying degree.

With respect to the

ratios of consumer indebtedness past due, the subject to which this study per­
tains, a wide variation was found to exist between sales and service creditors.
Table 2 shows that the percentage of accounts receivable delinquent six
months or more was much lower for the group of 416 retail creditors reporting
in the study than the percentage of delinquency for the group of 264 service
creditors.

The ratio of amounts delinquent six months or more on December

31, 1933, to the amount of receivables outstanding on that date, was 13 per­
cent for the retail group, which is in striking contrast with the figure
of 59 percent shown for the service group.

A comparison of the median

percentages for the same relationship shows less variation but the difference
is still very great.
One of the reasons for this variation may be attributed to the difference
in credit methods employed.

Creditors dealing in coranodities more frequently

check carefully on the worthiness of an applicant for credit, while those
covered in the service group are forced to extend credit, in a great many
cases, at least, without sufficient investigation.

Moreover, the collection

policies of the latter group are less aggressive than those of the retail
group, as a result of their apparent reluctance to press debtors for overdue
accounts.




-6 -

Grocery stores reported, on the average, 25 percent of their total
dollar accounts receivable delinquent six months or more, which figure was
the highest ratio of delinquency for any of the types of creditors in the
retail group.

Department stores, at the other extreme, reported 9 percent.

The ratio of delinquency for the 65 doctors (M.D.) reporting in the
study amounted to 67 percent, which was higher than any of the types of
creditors in the service group.

The sa-ne number of landlords reported in

the study and had, on the average, the lowest ratio of delinquency (45 per­
cent) .
The average value of delinouent accounts for all retail establishments
was slightly more than one-half ($37 per account) the figure for service
organizations ($64 per account).

The difference, however, between the

average of all accounts and delinquent accounts was small, only $3 for
both tvpes of establishments.
All types of creditors, with the exception of the landlord group, re­
ported very slight differences in the average values of delinquent and
total accounts.

In the c' oe of the landlords reporting, the average value

of the delinquent account was larger by $187.




- 7 -

Taole

N u m b e r an d Value of Retail and Service Creditor*' Accounts Receivable Delinquent Six M onth* or More on D ecember 31, 1933. B y Type of Creditor

l e e o t a t i
■umber

Type of creditor
by States
Retail:
Department store, total*

: creditors :
: reporting :

Humber : Amount
:
: (dollars)

62

1 ,200 ,63U

55.718.U57

Electrical goods, total*
Hew Tork
Other states (20)

50
23
27

U3 ,168
5.659
37,509

1,576 ,U88
269 ,8U9
1 ,106,639

Purniture store, total*
Sew Tork
Other states (20)

68
18
50

272.153
31,181
2Ul,022

115
3«
22
55

Grocery, total*
Few Tork
Pennsylvania
Other states (19)
Men's clothing, total*
NeW Tork
Other states (20)
Women's clothing, total*
Hew Tork
Other states (20)
Service:
Dentist, total*
Hew Tork
Othe^btates (20)
Doctor (H.D.), total*
Hew Tork
Other states (20)

jHec'ii

1 v a b la

Delinouent l6 months or more

■I.g V.a-A

Average
: value per : Humber
: account :
j (dollars) 1

I

Amount

| (dollars)

30

3.19U.370

31

8.9

37
U8
35

7,823
1.736

UU
30
u*

22 .0 .

6,087

3U7.363
52,268
295.095

15.771,320
1.805.0U6
1 3 .966 .27U

58
58
58

55.781
8,899
U6.882

2,860,9*40
U56.905
2,U0U,035

37,966
8,509
6,159
23.29*

1,273.582
28U.282
156.751
832.5U9

3U
33
25
36

7,6 3 6

61
16

12U,012
19.052
10^,960

27
UU
2U

19 .7 5 6

U5

3.3U5.601
831.18U
2,5iU,Ui7

60
16

163.972
21,331
lU2,6Ul

U.U15.936
711,181
3.70U.755

27
33

31.532

13.569
6,753
6,816

15 U .019
167,209

UU
75

36
1*2

321,228

1 .0

11.3

79-2
57.1
79.2

28.9

19.U
22.6

0.0

30.0

51
51
51

18.1
25.3
17-2

77-0
77-0
70.0

0.0
1.8
0.0

19-3
32.U
18.2

315.203
90,820
25.08U
199,29*

Ul
U9

2U.7

0.0

23.9

9U.1
80.0
75.0
9U.I

5-0
0.0
0.0

33.3
36.7
U7 .U
29.7

598,306
137.123
U6i,i83

2°
63

7 1 .u
50.0
71.U

2 .5
2 .5

26

17.9
16.5
18.3

u.5

22.2
11.8
2U.8

2.697

763,122
99.7§l

26

29,835

663,361

23
37
22

17.3
lU.0
17.9

6 5 .2
6 5 .2
60.0

0.0
0.0
0.0

13.3
16.1
12.7

2U
23
25

6.528
2.U85
U.OUj

17 8 ,7 1 8

27
29
27

55*6
U6 I3
6U.2

90.0

83.3

10.0
10.0

55.8
53*9

90.0

19 .3

62*5

25
28
2U

12.U57
3,78r

330 .UU3

123.350
207.093

27
33
2U

66.6
70.1
6U.6

92.2
90.0
92.2

1 5 .0

8,670

1 5 .0

62 .U
6U.7
62 .U

317,1U7
17.U28
3.535
296.18U

316
160

U5.1
19.U

0.0
0.0
0.0
0.0

u.o
. 0.8
0.0
37.7

10.0
10 .9

22.0

50.7
Ul.l
5 U.6

1,859
7 U6
5 .0 31

8,161
17.588

71.290
107,U28

65
27
17
21

5,lU8
5«9
375
U.isU

663.939
51.157
20,858
5 9 1 ,92U

129
56
1 U1

1.00U
109
U3
852

Undertaker, total*
Hew Tork
Other states (20)

56
UO

9.m
1.05U
8,720

1.U50.306
2 73 ,UU6
1 ,176,860

lUg
259
135

5.366
U22
U,9UU

790,951

16

Ul6

|.8Ui,905

6 2 ,1 0 1 ,3 SU

3U

26U

>+8,197

2.931,729

61

680

1,890,102

65.033.113

9tas4 Total

U96.256
1 7 5 .9 1 9

320,337

H

3U
=-—

21.8

26.0

82

1 6 .9

3U8

50.0

90.3
80.0
UU.O
90.3

703.315

1U7
*08
1U2

5U.5
32.0
59.8

85.U
80.6
85»lf

219,18U

8.079.30U

37

13*0

9U4

0.0

22.2

25.355

(1.617.259

6U

58.6

90.3

0.0

50.0

9.696.563
* = =

Uo

IU.9

9U.>

0.0

33.3

87.636

2UU.539
:nar

r
Uo

3 1 .9
1 6 .0

=

*Ooaprialng; returns from the following states: Alabama, California, Colorado, Tlorlda,jOeorgia, Illinois, Kentucky, Louisiana, Massachusetts,
Michigan, Minnesota, Missouri, few Jersey, Sew Tork, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, and Wa«hlngtP&t




:
: Median

0.0
0 .5

Landlord, total*
Hew Tork
Hew Jersey
Other states (19)

65

t
Highest : Lowest
♦
88.9

19,706
6,239
13.U67

8ervic*

: value per
< account' 1 Average
: (dollars) l

95.656

28
37

Yptal Retail

J. Percentages of total — annte
t

Delinquency According to Size of Business
Retail Creditors

The most striking fact to he found, when the reporting retail creditors
are classified by volume of sales, is that the larger stores had the smallest
proportion of their dollar accounts delinquent six months or more.
The range (Table 3) for department stores, for example, was from an
average delinquency ratio of 16 percent for the smallest stores to 7 percent
for the largest group.

A similar situation was found to exist with respect

to the other types of retail creditors (see Tables 4-8 Inclusive).

The only

significant exception is the group of women's clothing stores, the ratio of
delinquency dropping from 23 percent for the smallest size group to 13 per­
cent, back up to 20 percent for those with annual sales over $1,000,000.

Table 3.- Value of Department Store Accounts Receivable Delinquent Six Months
or More on December 31, 1933, Grouped According to Size of Business

$1,000,000 or less

24

1,371,578

$1,000,001-5,000,000

32

14,143,025

Accounts receivable
.Amount
P e r c e n t
•
delinquent
«
•
six months
♦,
or more
Average Highest:Lowest
•
(dollars)
•
•
•
•
217,892
15.9
88.9 : 1.0
•
11.4
1,607,360
60.0 : 1.4

$5,000,001 and over

20

34,418,819

2,444,482

7.1

15.2

: 2.0
•

7.6

76

49,933,422

4,269,734

8.6

88.9

| 1.0

. 11.0

Number
Size of Business
of
(annual sales volume) creditors
report­
ing

Total




Total
amount
(dollars)

- 9 -

Median

24.1
9.5

Table 4.- Value of Electrical Dealers' Accounts Receivable Delinquent Six
Months or More on December 31, 1933, Grouped According to
Size of Business

Number
Size of Business
of
[jBaanal sales volume) creditors
report­
ing

Total
amount
(doliars)

Accounts receivable
.Amount
P e r c e n t
delinquent
six months
Average Highest Lowest
or more
(dollars)

Median

$50,000 and less

37

316,219

101,083

32.0

79.2

2.4

30.0

$50,001-500,000

15

517,240

116,548

22.5

51.4

0.0

26.0

5

1,202,315

209,292

17.4

65.0

0.9

10. JF

57

2,035,774

426,923

21.0

79.2

0.0

29.8

$500,001 and over
Total

Table 5.- Value of Furniture Store Accounts Receivable Delinouent Six Months
or More on December 31, 1933, Grouped According to Size of Business

Ilumber
Size of Business
of
[amual sales volume) creditors
report­
ing

Total
amount
(dollars)

Accounts receivable
Amount
P e r c e n t
delinquent
six months
or more
Average: Highest Lowest: Median
(dollars)

$100,000 and less

30

806,615

259,826

32.2

j 77.0

0.0

1 33.5

$100,001-250,000

26

3,293,517

883,250

26.3

j

70.0

0.4

; 21.0

$250,001-500,000

11

2,948,131

370,793

12.6

; 64.8

0.0

|

$500,001 and over

15

12,581,270

1,987,630

15.8

: 49.7

0.6

: 12.7

82

19,629 ,533

3,501,499

17.8

j

0.0

; 13.2

Total




- 10 -

77.0

5.5

Table 6.- Value of Grocery Store Accounts Receivable Delinquent Six ‘'rntbs
or More on December 31, 1933, Grouped According to Si^e
of Business

Number
of
Size of Business
annual sales volume) creditors
report­
ing

Accounts receivable
Amount
Pei c e n t
delinquent
six months
or more
Average Highest Lowest Median
(dollars)

Total
amount
(dollars)

$25,000 and less

31

59,934

30,559

51.0

80.0

11.8

48.0

$25,001-50,000

27

86,462

34,648

40.1

77.0

17.9

35.3

$50,001-100,000

32

254,110

86,493

34.0

94.1

0.0

30.3

$100,001-250,000

14

251,841

58,221

23.1

43.9

5.0

-19.9

$250,001-500,000

12

362,593

58,126

16.0

48.7

2.8

13.4

5

385,429

59,352

15.4

24.2

0.0

18.0

121

1,400,369

327,399

23.4

94.1

0.0

33.3

$500,001 and over
Total

•

•

*-----

Table 7.- Value of Men’s Clothing Store Accounts Receivable Delinquent Six Months
or More oh December 31, 1933, Grouped According to Size of Business

Number
Size of Business
of
(annual sales volume) creditors
report­
ing

Total
amount
(dollars)

Accounts receivable
Amount
P e r c e n t
delinquent
six months
or more
Average
Highest Lowest Median
(dollars)

$100,000 and less

27

359,773

98,356

27.3

71.4

5.5

27.1

$100,001-250 ,000

18

534,740

133,908

25.0

55.8

4.7

24.1

$250,001-500,000

17

1,197,681

293,043

24.5

53.9

0.0

16.0

$500,001 and over

14

2,409,207

250,878

10.4

26.1

2.5

10.3

76

4,501,401

776,185

17.2

71.4

0.0

18.1

Total




- 11 -

Table 8.- Value of Women' s Clothing Store Accounts Receivable Delinquent
Six Months or More on December 31, 1933, Grouped According
to Size of Business
Iftunber
Size of Business
of
(annual sales volume) creditors
report­
ing _

■
Total
amount
(dollars)

Accounts receivable
Amount
P e r c e n t
i
delinquent
six months
Average Highest Lowest Median
or more
(do liars)

$250 ,000 and less

36

691,640

161,893

23.4

65.2

0.0

15.5

$250,001-500,000

14

815,410

117,756

14.4

28.4

3.7

11.5

$500,001-1,000,000

12

1,373,949

184,280

13.4

28.8

3.9

11.1

$1,000,001 and over

12

4,253,488

853,326

20.1

: 44.5

4.9

11.9

74

7,134,487

1,317,255

18.5

65.2

0.0

13.3

Total

Service Creditors

The inverse ratio between the size of retail establishments and the
proportion of their dollar receivables *hich has been delinquent six months
or more, does not hold for service creditors, with the exception of dentists
(Table 9).

In this instance the range is from 61 percent to 52 percent.

In the case of the landlords, there is a direct relationship with those
with the largest incomes sustaining the highest proportion of delinquency.




- 12 -

Table 9.- Value of Dentists1 Accounts Receivable Delinquent Six Months or
More on December 31, 1933, Grouped According to Size of Business

Number
of
Size of Business
annual sales volume) creditors
report­
ing

Total
amount
(dollars}

Accounts receivable
Amount
Per cent
delinquent
six months
Average Hipest Lowest
or more
(doliars5

Median

$5,000 and less

25

39,401

23,836

60.5

83.3

31.7

60.8

$5,001-10,000

31

137,715

82,257

59.7

81.0

19.3

57.0

$10,001-15,000

23

119,225

63,7*7

53.4

90.0

12.5

52.4

6

76,695

39,838

51.9

71.2

10.0

45.8

85

373,036

209,648

56.2

90.0

10.0

55.9

$15,001 and over
Total

Table 10.- Value of Doctors’ Accounts Receivable Delinquent Six Months or More
on December 31, 1933, Grouped According to Size of Business

Numb er
Size of Business
of
annual sales volune) creditors
report­
ing

Total
amount
(dollars)

Accounts receivable
Anount
P e r c e n t
delinquent
six months
Average Highest Lowest
or more
(dollars}

Median

$5,000 and less

18

65,699

41,351

62.9

86.6

33.3

64.8

$5,001-10,000

16

100,841

69,428

69.4

87.7

26.4

67.6

$10,001-15,000

13

95,879

64,676

67.5

88 .7

43.3

66.7

$15,001-20,000

10

107,923

70,489

65.3

86.2

21.8

65.9

10

137,058

81,418

59.4

92.2

10.4

56.9

507,400

327,362

64.5

92.2

10.4

62.4

$20,001 and over
Total




67

- 13 -

Table 11.- Value of Landlords' Accounts Receivable Delinquent Six Months or
More on December 31, 1933, Grouped According to Size of Business

«

Number
Size of Business
of
(amual sales volume) creditors
report­
ing

To tal
amount
(dollars)

Accounts receivable
Amount
P e r c e n t
delinquent
six month8
or more/ Average Hi^iest Lowest
(dollars)

Median

$5,000 and less

18

5,208

270

5.2

40.0

0.0

0.0

$5,001-10,000

12

11,812

1,888

16.0

76.1

0.0

0.0

$10,001-25,000

16

38,835

16,651

42.9

90.3

0.0

29.9

$25,001 and over

20

718,859

373,838

52.0

80.0

0.0

42.5

Total

66

774,714

392,647
r

0.0

15.7

.

.

»
---------- aL

90.3

50 .7
.

.

,

,

.

I
1---------

Table 12.- Value of Undertakers' Accounts Receivable Delinquent Six Months or
More on December 31, 1933, Grouped According to Size of Business

Number
Size of Business
of
(annual.sales volum^ creditors
report­
ing

Total
amount
(dollars)

Accounts receivable
Amount
Per cent
•
delinquent
•
six months
•
Average Highest Lowest: Medlar
or more
•
(dollars)
•
•

^>50,000 and less

31

231,144

125,317

54.2

74.1

16.0 : 50.0

$50,001-100,000

13

380,389

272,638

71.7

85.4

22.5 : 64.6

$100,001-250,000

12

647,522

331,570

51.2

69.8

5

407,609

132,736

32.6

62.9

10.0 s 50.6
.•
13.6 : 22.0

•

$250,001 and over

•

Total




61

1,666,664

862,261

14 -

51.7

85.4

10.0 ; 50.3

Delinquency According to Degree of Credit Business

The business of creditors Is further analyzed in Table 13 according to
ratios of delinquency by proportions of credit business.

In general, the greater

the proportions of credit business the higher the ratios of delinquency.
For all creditors reporting (729) the range was from a delinquency ratio
of 11 percent for establishments having the smallest proportion of total business
on a credit basis (25 percent or less) to 22 percent for establishments having
the largest proportions of credit business (over 75 percent).
Similar figures for the retail group were about the same; 10 and 18 per­
cent, respectively,

for service establishments, however, the figures are con­

sistently higher, running 42, 68, 62, and 54 percent for the four quartiles.
It is interesting to notice, in passing, that while only 38 percent
(177) of the 469 retailers reported over 75 percent of their 1933 business
as credit sales, 77 percent (201) of the service operators so reported.
With respect to the service group an unusual situation was found to
exist for the landlord type of creditor, as only two landlords reported 25
percent or less credit business with the remainder (53) reporting all of
their business on a credit basis.

The reason for this is that most of the

landlords cooperating in the study did not follow the usual practice of re­
quiring rent payable in advance and, therefore, listed all of their business
on credit.

In the case of the two landlords reporting a portion of their

business on a credit basis, one reported that rent was required in advance
from all but a part of his tenants and the other made a practice of arranging
for installment repayments wherever the advance deposit was used up.




- 16 -

Table 1 3 .- Value of Hetall and Service Creditors' Accounts Receivable Delinquent Si* Months or More on December 31. 1933. Claseified
According to Degree of Credit Business

Type of creditor

Accounts Receivable
Amount
:
t Humber of
delinquent :
six months : Percent
Total
: creditors.
: or more :
: reporting amount
(dollars)
: (dollars) :
s

:Ratio of Delinauent Accounts to Total Accounts by Proportion of Credit Business
26 to 50 percent: 50 to 75 percent: Over 75 percent
: 1 to 25 percent
:
: Number : Ratio
Number : Ratio : Number : Ratio: Number
: Ratio
:
of
of
:
of
:
:
of
stores :
: stores
stores
:
: stores

9i «i»4

Retail:
Department -— ■— —
Electrical goods-Purniture — ----Grocery------ ■—
Ken's clothing--Women's clothing --

fk
56

82
113
75
69

U9,530,U22
2.035.6*4
19.629.533
1*3^3.200
4 ,530.734
7 .060,759

4 ,205,634

425,277
3.501.U99
308,871
774,730
1,308,203

8.5
20.9
17 .8
23«0

17.1
18.5

7
2
2
16
13

5-7
32.7
41.4
15.6
16*3

34
12
4
24
21
14

7.6
19.7
52.8
30.1

9.7
25.1

8

43.3

37.1
88.7
71.9
32.5

-

-

4

27
8
7
44
24
25

8.7

41.4
24.4
28.7
19.3
14.0

6
34
69
29
17
22

19-9
20.3
17.5
18.3
27.7
19.0

Service:
Dentist -— ------ Doctor (M.D.) — — Landlord — --- —
Undertaker — — -— -

84
55
6l

Betail (excluding
Department stores)

366,025
518.361
409,809

206,263

56.4
67.9
48.1

52.2

64.8

67.4

49

56.7
68.3
47.7
52.0

75

19.3

108

17 .6

171

18.2

9-7

109

9.2

135

10.5

177

18.3

13

41.5

21

67.5

23

62.4

201

5U.3

63’

10.6

130

9*4

158

10.8

378

21.6

1.703.37U

52.3

7
1
2
5

395

34,599.910

6,318,580

18.3

Ui

21.9

Total Betall -----

469

8U.130 ,332

10,524,214

12.5

48

Total Service -— —

260

2.997.569

1,61+6,864

54.9

Grand Total — ----

729

87.127.901

12 ^171.078

14.0




67.O

11
9
3

352.037
197.182
891,382

60

9
8

71.9

62.9

-

57
42
53

Delinquent Accounts Expected to be Qollected

Creditors were asked:

H0f the book value of accounts delinquent six

months or more, what proportion do you expect to collect?"

A total of 658

creditors furnished percentage estimates on this question which were converted
to dollars for purposes of obtaining arithmetic averages.

The figures on this

basis were 66 percent for the total group, as shown In Table 14.
The proportion expected to be collected for the retail group amounted to
68 percent, whereas the service group expected to collect a smaller proportion
or 52 percent.

The median average showed approximately the same result for

each group, the figures being 70 percent and 50 percent for the retail and
service groups, respectively.
Furniture dealers were the most optimistic of all types of creditors
reporting.

The 71 furniture creditors reporting indicated that, on the

average, they expected to collect 74 percent of their delinquent accounts.
A contributing factor to the situation may be the practice of furniture
stores in repossessing merchandise where necessary to effect final liqui­
dation of the account.

This is borne out by Table 15, which shows that

75 percent of the furniture creditors reported repossession as a method
used in collecting delinquent accounts.
The anticipated costs of collecting delinquent accounts is about the
same on the average for the retail and service groups.

The retail creditors

reported that of the amount they expected to collect, 12 percent would be
spent in collection costs; for the service creditors the estimated figure
on the average was 15 percent.

The higher figure for the latter group was

caused largely by the 77 dentists whose estimate averaged 22 percent.




- IT -

Table lU^ - Proportion of Betail and Service Creditors 1 Accounts Receivable Delinouent Six Months or More Expected to be Collected and
Anticipated Collection Cost
(On December 31, 1933)

Type of creditor,
bf State
Betail:
Department ------- —
Electrical goods ----New York -------Other States----- Purnitare--- ----- -

New York ------- -—
Other States ----Grocery -— --------- Hew York ---------Pennsylvania -----Other States -------

Humber of
creditors
: reporting

Amount delin­
quent six
:

(dollars)

i

Proportion expected to be collected
Anticipated collection costs on amounts
----- wp^cted to be collected
Percentages
Amount
(dollars)
:Average :Highest SLowest S Median 1 Average t Highest : LowAt
Median

65

3,^5.589

2 ,270,631

66.0

100.0

5**
23

U2U.051

262,986

60,769

363,282

61 .O
68.0
60.D

100.0
100.0

31

^5.329
217,657

100.0

5-0
10.0

71

3.139,377
**91.905
2,6U7.**72

2,320,117
293.989
2,026,128

7**.0

100.0
100.0
100.0

0.0
0.0
10.0

28*5,592
75,556
27.318
182,718

168,866

59.0
63.O
55.0
58.0

100.0
100.0

0.0

90.0

0.0
0.0

18
53
101

31
21

U9

**7.815
15.086
105,965

Page 18

lien's clothing ------Hew York----.--- -—
Other States ------

71

683,116

55

137.123
5^5,993

Women's clothing ----Hew York -------- —
Other States -------

6U
15
U9

1.235.631
99.761
1,135.870

750,557

Service:
Dentist -----r------Hew York---- -----Other States ---- —

77
?2

189.578

75.23**

63,690

65

Doctor (M.D.)
--- -—
Hew York--------- Other States --- ---

63
23
>40

Landlord *--------- -

39

Undertaker — — --- -— Hew York--- ---- —
Other States ---- — -

60.0

77.0

75-o

12.0

50.0

1.0

10.0

5.0

>5-0
80.0

16.0
1 U.0

0.0

10.0
1 U.0

60.0

17.0

50.0
*10.0
50.0

5.0

Or.O
0.0

10.0

75-0

12.0

50.0

17.0

75.0

11.0

30.0
50.0

0.0
0.0
0.0

10.0

73.0

0.0
0.0
0.0
0.0

10.0
10.0

50.0
60.0
50.0
52.0

7.0
10.0

50.0
33.0
25.0
50.0

11.0
16.0

13.0

10.0

5.0

10.0

60.0

15.0

50.0

75.0

7.0

99.0

0.0
25.0
0.0

60.0

17.0

50.0
50.0

0.0
5.3
0.0

10.0
10.0
10.0

68.0
86.0
66.0

100.0
98.0
100.0

0.0
20.0
0.0

75-0
75.0

11.0

50.0

0.0

10.0

16.0

5.0

15.0

70.0

10.0

33.0
50.0

0.0

10.0

140.0
U2.0

95.0

50.0
50.0

**8,558

39.0

50.0
50.0
50.0

17.0

125,888

0.0
0.0
0.0

2U.0

50.0

0.0
0.0
0.0

10.0

26,676

358.511

133.793

0.0

33-0

I7 .O

**5,070
88.723

37.0
U2.0
35.0

100.0

10 7 .**95
251.016

75.0

5.0

13.0

100.0

0.0

1*0.0
32.0

19.0

95.0
95.0
>50.0

0.0
0.0
0.0

10.0
10.0
10.0

387.076

I83 ,60U

**7.0

100.0

0.0

50.0

19.0

50*o

0.0

10.0

53
15
38

797.950
83.313
71 H .637

51**.**35
57 ,078
**57.357

6U.0
69 .O

0.0
20.0
0.0

75-0
75-0

6U.0

100.0
100.0
100.0

75.0

11.0
12.0
12.0

50.0
50.0
50.0

0.0
0.0
0.0

10.0
10.0
10.0

Total Detail — j------

U26

9.233.356

6 ,303,021

68.0

100.0

0.0

$0.0

12.0

50.0

0.0

10.0

Total Service---- -—

232

1.733.U5

907,066

52.0

100.0

0.0

50.0

15.0

95.0

0.0

10.0

Grand Total --- ---- ■

65?

10 ,966,1*71

7.210,087

66.0

100.0

0.0

60.0

12,0

95.0

0.0

10.0




16

**3.73**
109,372
33**.862
836,687
86,130

65.0

100.0

10.0

80.0

100.0
100.0

61.0

95.0
95.0

22.0

5.0

20.0

Methods Used In Collecting Delinquent Account a

Over 800 creditors report that dunning letters and personal visits were
the most common methods used in collecting accounts delinquent six months or
more.

Of these two, the second is employed much more frequently by retailers

than by the service operators.

(See Table 15.)

A private collection agency and suits, two other methods,, were reported
by about four out of ten creditors.

Both retail and service establishments

used the former to about the same proportion, but proportionately only a little
more than one half the service creditors resorted to suits, as compared with the
retailers.
Although almost one-third of the retailers reported that they repossessed
merchandise sold but unpaid for at the end of six months, none of the grocers
and very few of the men’s and women's clothing store proprietors reported such
a policy.

The only service group to report repossession was the landlord.

One striking fact found in the following table is that so few of these
retail and service creditors use merchant credit bureaus.

The only exceptions

to this conclusion were department stores and men’s and women's clothing
stores, for all of which the figure is over 30 percent.
With two exceptions, all of the creditors reported using one or more
methods in collecting delinquent accounts.

One undertaker stated, however,

that no method was used in collecting delinquent accounts because "when they
have money they will pay - old families."
to the same question:

H3Ione, because conditions specifically known in each

instance."




A physician stated, with reference

- 19 -

Table 15-- Methods Used by Retail #nd Service Creditor* In Collecting Accounts OellnoucBt SI* Month* or More on December 31, 19J3

Typ#
of

creditor

>Number

t Dunning letters

tcreditors:
(reporting)
i
t

< Personal visit*

Humber :
'•
Somber :
using : Percent » using I Percent

____ :__ __I

.15SSSX_______ 5
Sumter I
using > Percent

__ I __

Number
u sing

Percent

s Merchant* credit
bureau
Somber t
: Bianber :
S
using
: Percent > using i Percent :

Other

Repossession

s Private collection:

Somber :
using ! Percent

____ __ !________ L

Betall;

i
£
1
g
1

Bepartnent
Pennsylvania
Otter

95

87.U

6li,l
37-5

78
12
66

82.1
75.0
83.5

58
6
52

65.8

83.3

60

92.3
77-5

23
37

90.9
88.5

20
7

26.9

92.5

13

32.5

91 .k

23
5
18

2k. 7

36
9
1

56
5
51

58.9

17
8
9

25.8

k6
10
36

k9.5

26.3
2k.3
29.8
23.7
k.3
>*3.3

31
9
2
80

25.6

53.5

Ul

50.0

7

5k. 3

3k

70.2

32

76.5
68.0

79

83
8
75

50.0
9**.9

Zlectrloal rood*
Sew Tork
Other

66
26
Uo

55
2U
31

furniture
Sew Tork
Other

93
19
7k

8k
17
67

90.3
89-5
90.5

85
19
66

Qrooorj
lew Tork
Pennsylvania
Other

121
3®

69.H

106

87.6

73-7
83.3

3>*
19
53

89-5
82.6

60

8k
28
6
50

88.3

26

Mra's clothing
lew Tork
Other

86

7k

16

16

70

58

86.0
100.0
82.9

78
10
68

90.7
68.5
97.1

US
8
38

67
17
50

63
Ik
k9

9k.O
82.U
98.0

39
8
31

58.2
62.0

U7
13
3k

96
3*
5«

88
3k
5k

91.7
89.5
93.1

30
8
?2

31.3
21.1
37-9

*♦7
19
28

U9.0

Doctflfr(n.S.)
Sew Tork
Otter

7*
29
**■9

71
»*7

91,0
93.1
95.9

18
5
13

23.1
17.2
26.5

16

?7

Landlord
Sew Toik
Otter

68
22
1*6

29
9
20

U2.6
k0.9
kj.5

k6

67.6

16

72.7
65.2

Undertaker
Sew Toik
Other

69
17
52

57

12.6

61

16

kl

9U. 1
78.8

lk
*»7

Total Retail

52*

UUJ

83.9

total 8*rvloe

311

2k5

Orand Total

839

688

Vamn's clothing
Vow Tork
Otter
Servicet
Dentist
Sew. Tortc
Otter




16

100.0
89.2

30.3

6k.6
30.8
22.5
52.6

ks.6

6 2.1

59
8
51

50.0
6k. 6

k8
5
k3

50.5
31.3
5k.k

31
9
22

k7 .o
3U.6
55-0

12
5
7

18.2
19.2
17.5

0

70
11
59

75.3
57-9
79.7

11
3
8

-

17

1 7 .9

3
ik

18.8
17.7

6
6

9.1
__
15.0

11.8
15.8
10.8

6
1
5

6.5
5.3
6.8

22
3

18.2
7.9
8 .7

17

28.3

18
6
0
12

ik.9
1 5 .8

2

a

2k.k

33.3

0
0
0
0

k7-7
k3.8
ks.6

2
0
2

2.3
_
2.9

31

36.0

1

30

6.3
U2.9

1
20

28.6

8
2k

k7,8
k7fl
kf.p

5
1
k

7-5
5.9
8.0

22
2
20

32.8
11.8
ko.o

20
3

1 7 .6

17

3k.0

w»e
jtb.3
Il.p

0
0
0

•
_
-

22
ik
18

22.9
10.5

U8 .3

28
IP
18

71
17

31.0

ik

32.3
kk.7
2k. 1

13
23

U6.2
kU.S
U6 .9

S>
1
d

n-5
10,3
fP.2

0
0
0

_
-

6
1
5

7-7
3.U
10 .2

15
2
13

15
5
10

22.1
22.7
21.7

30,9
ko.9

1.5

16

9

22
3
19

88.k
82.k
90.U

27

9
18

39.1
52-9
3k. 6

18
k
lk

kk6

8U.5

230

*3.6

78.8

155

U9.8

125

U0.2

82.0

601

7 1 .6

355

k?.j

26.1

30

kj.l

50.0

83.7
8 .7

26,1
26.»

81.5

0
0
0

-

32.3

I

13 .6

0

kl.3

X

2.2

7

10.1

3

1 7 .6

k

-

20.0
6 .3

29.9

19.2
6.9
26.5

23*5
36.4

8
8.

17 .k

7.7

8
1
7

11.6
5.9
13.5
1 6 .7

ka.2

167

31.6

V*

87-7

88

76

8k.U

22

7.1

36

1 1 .6

70

21.5

299

35-6

189

22.5

182

81.7

158

18,8

Sources of Credit Used by Creditors

The commercial hank was reported most frequently by both the retail
and service creditors as the source of credit used In the conduct of their
business.

Of 527 retail creditors reporting, 239 or 45 percent checked

the regular terms of banks as a source of credit; for the 278 service
creditors reporting, 79 or 28 percent checked the same agency as a source
(Table 16).
Cooperative credit associations (26 percent) and wholesalers or factors
(22 percent), were also an important source of credit for the retail group.
For the service group of creditors, the second most Important source of
credit was the assistance obtained from relatives or friends.
The group of creditors rendering service alone had, as to be expected,
less occasion to secure credit from outside sources than the group of credi­
tors selling merchandise.

The number of service creditors that reported

using no agency for credit requirements was 117 or 42 percent of the total,
as compared with 55 or 10 percent of all retail creditors reporting.




- 21 -

Table l6.- Sources of Credit Used by Ret»ll and Service Creditors in the Conduct of Their Business During 1933

:
Cooperative
tcredit association

b a n k s

Tyre of credi tor

Re 19i 1:
Deosrtment

1
JJ

. Number
•creditors
; reporting
•

8U

Regular terms

: Personal Logn
!
Department
Number ;Percent : Number :
usin? !
: using s Percent

Mo

Number
using

6.0

3

3.6

30

35.7

3

3>»
lU

51.5
53-8

1.5
3.8
-

12 .1

6

7

3.2
17.5

2

50.0

3.0
3.8
2.5

8
1

20

2
1
1

UU

»*7-3
52-6
U5.9

6
2

6.5

26

10 .5

2
1
1

2.2

U

5.3
l.U

21

28.0
26.3
2 8 .U

1U

• U0 .3
UU.7
1*7.8
3U.5

2
0
0
2

1 .7

.8

19

16.0

12

2

5.3

3

13.0

u
u
u

50.6
68.8
U6 .3

3

3-6

0

8
0
8

Furniture
New York
Other

93
19
7*

10
3U

Grocery
New York
Pennsylvania
Other

119
38
23
58

Us
17
n

Men's clothing
New York
Other

83

U2

16

11

67

31

20

3

ro

5.U

a
3.5

U.5

11

37.3
6U.7

65

20

30.8

0
0
0

19.1
1 U .7
22.0

U
0
u

U.8

3
0
3

U.l

31

SU

16

50

5
11

Doctor (M.D.)
New York
Other

73
zk
U9

20
8
12

27 . U

Landlord
New York
Other

55

20
7
13

36.U

Undertaker
New York
Other

66

33.3
2U.5

1+3.5
33.3

3U .8

1
0
1
0
u

U.3
U.8

0

82
17

39

S Number :
:
: Percent : using : Percent

5

MO

16

: Number
: us in*

_

_

8 .0
_

6.1

0
0
0

U

6.0

2
0

2.U

2

5

lU

30
3
27

24.2

36.2
18.8
U0.3

Wholesaler or
factor

Relative or
friend

1
1
0

66
26

Women's clothing
New York
Other
Service s
Dentl c t
New Yoric
Other

Industrial

U7.6

Electrical goods
New York
Other

1X1
1

:

:
: Percent

Number :
using : Percent

1 U.3

12

1 U.3

10

9.1
7-7

21

12

9.1

U

18.2
15 . u

6

7
lU

31.8
26.9
35.0

U

8

20.0

2

15 . u
5.0

18.3
15.8

lU

15.1
10.5

18.9

17
3
lU

18.9

16 .2

2
0
2

2-7

10 .1

U5

37.3

10

26.3

6 .7
2.6

17
7

6.9

17
18

73.9
31.1

8
1
0

1 U.3

10.5
17. u

7

12 .1

2
8

8.7
13.8

9-6

11

13.3
18.8
11.9

6
0
6

7.2

c
J

_

1

6.0
6.3
6.0

u

10.0

18
U

19 .U
2 1.1

3
11.9

8

1
12

15.5
2 .9
2U .0

11
2
9

13.1
5.9
18.0

5
1
U

1
0
1

l.U
2 .0

3
1
2

U.l
U.2
u.l

2
1
I

2.7
U.2
2.0

0
0
0

1 .8

0

..

1
0

..

0
0

0

-

1

2.6

0

-

3
-

1
2

U.5
5 .9
U.l

13
U
9

19.7
23.5
1 8 .U

1.5

2.0

0
0
0

7-1

39
2U
15

U6.M

12.0

3U
13
21

Ub.6
5U.2
U2.9

26
6
20

*+7.3
37.5
51.3

18
k
lU

27.3
23.5
28.6

6.0

13

2 .9
8 .0

1
0
1

6
0
6

1.5

6.0

52.9
28.6

7.3
11.8
6.2

11.8
12-3

5
1
U

23
9
lU

2
U

12 .2

2
8

35. U

2 .9
8.0

_
-

0
0

-

0

-

-

10
0
10

13.7

8
3
5

1U.6
18. S

10 .6

-

20.U

12.8

13.3
1 1.8
20.0

70.6
30.0

19.7

7

0

10

1 7 .6
20. U
22.0

58

11.0

55

10. U

117

U2.1

172

21. U

13
3

7

-

1 U.3

Total Retail

527

239

U5 .U

17

3-2

lU

2.7

138

26.2

51

9 .7

116

Total Service

278

79

2 8 .U

8

2 .9

6

2.2

20

7 .2

26

9.U

18

6.5

31

11.2

Grand Total

805

318

39-5

25 .

3-1

20

2 .5

158

19.6

77

9.6

13*

16 .6

89

11.1




1 8 .U

U

10

23

2.2

15
2
13

U.9

3 .1

1 1.9

9.0

1 7 .6

30.5

1 1 .8

17
U9

2
12

6

2

0

: Number:Percent JJuaber:
.-Percent.
: uein* : .

12

25

..

None

Other

3.6

U
3
1

_

:
,

Accountb Receivable Compromised

Creditors were asked if any delinquent claims with debtors were com­
promised over a period of six months.

The table below shows the answers

to this question and indicates that the percentage of retail and service
creditors effecting a compromise of delinquent accounts was approximately
the same.

For the retail group 232 or 45 percent of the total reporting

followed this practice; 138 or 48 percent of the total service group re­
porting did likewise.

The average number of accounts compromised by the

retail group was 19; for the service grot?) 16.

Table 17.- Number of Retail and Service Creditors1 Accounts Receivable
Compromised During Six Months Period, 1933-1934

Type of creditor

Retail:
Department ...... .
Electrical goods ...
Furniture .........
Grocery ..........
Men's clothing ....
Women's clothing ...

• Number of i
•
s creditors :
: reporting :

Creditors effecting
conroromi ee
Number
:* Percent

Accounts compromised
To tal
: Average
number
: number

89
63
92
113
84
77

44
33
58
38
27
32

49.4
52.4
63.0
33.6
32.1
41.6

1,088
597
2,138
160
165
139

25
18
37
4
6
4

Service:
Dentist ...........
89
Doctor (M.D.) .....
74
Landlord .........
59
Undertaker ......... ___ £ 5

50
42
18
28

56.2
56.8
30.5
43.1

382
1,098
418
251

8
26
23
9

. . .

Total Retail ......

518

232

44.8

4,287

19

Total Service.... .

287

138

48.1

2,149

16

Grand Total ........

805

370

46.0

6,436

17




- 23 -

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