Full text of G.17 Department Store Credit : January 6, 1950

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BOARD "OF GOVERNOR'S OF THE FEDERAL RESERVE SYSTEM-•17.3

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January 6 3 1950

DEPARTMENT STORE CREDIT
.I]0VE:3ERl9k?

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Instalment accounts receivable . of- department stores increased 8
per cent during November and at the end of the month were•19 per cent - larger
than a year earlier. Collections were 5 per cent above those in October,
amounting to 20 per cent of first-of-month accounts receivable. The rate of
collection on instalment accounts has shown relatively little change since
late summer. "
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Charge accounts receivable increased substantially as is customary . ,
in November, but continued somewhat below those in the corresponding period
!cf
These accounts were being repaid, on the average, somewhat more
rapidly in November than, in the preceding month. In comparison with a year
.earlier, however, some slackening has; .occurred in the rate of repayment._
Department store sales increased seasonally in November. Both' cash and charge-account sales were up about one-sixth from the preceding month while
instalment sales showed a less marked rise, 7 per cent. , The November 19h9
volume of cash business was well below 19U8 levels and charge-account sales
were slightly curtailed. These declines over the * year-period were^-offset, in
part, by the expansion-in instalment transactions.
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fDepartment;Store Sales> Accounts Receivable, and Collections

Item

percentage change from:
Oct. 19L9
Nov. 19L8
to.
Nov. 19L9
Nov. 19L9

'

Sales during month
Cash
Instalment
Charge account

Accounts receivable, end of month
Instalment accounts
Charge accounts

-10
+20
- 1

' +15
+ 7
+17

.

; 1
1

'-

.

Collections during month
Instalment accounts
Charge accounts

;
+ 8
+12

+19
- 3. '

+ 5
+ 9

-

+ 3
h

Ratio of collections during month to accounts receivable at beginning of month:*
• Nov.
19li9
Instalment accounts
Charge accounts
NOTE.—Figures for November

* - Revised.


20
SI

Oct.
1919
'20
S3

Nov.
•- 19U8
'

23
SS

19U9-are preliminary and subject to revision.
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C-_.1T.;

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DiPART:._J:T STORES - MOV1L.BL5 19h9
Cash and Credit Sales, by Federal Reserve Districts
Indexes;
Casn sales
"strict

19ill average = 100
Charge-account sales
Instalment sales
Oct. | Nov.
191.9-1 19li3

'Accounts Receivable and Collections, by Federal Kese

. Federal
Reserve
. District

: ev." York
-I-nilad'lphia
' lleyel-,nd

Chicago

"

Xinnea^clis
: tn::s ;ity
•

.rsnciscc

Districts

Accounts outstanding, end of month
Collection ratios-::Indexes; 19L1 average = 100
Oharg e account
Charge' accc
Ins;talment
Instalment
;:ov. Oct. ::ov. i :ov. Oct. i:ov. :;ov. Oct. Ho v. ;:ov. : Oc t. ' '.!ov.
19L9-0 19L9 19LS 19L9P 1919 1916 19L9p 19L9 1918 19L9P
176
1!:8
1'3
2:3
159
3 CO
157
220
1.92
222

156.
-3E
176
191
1L6
277
ILL
205
18a20 c
315
~~y1 . 18L

" U . S . Total _2f-?

121 198
133 19L
172 26c
193 213
111 197 '
222 220
120 215
177 "253
161 212
207 22C
269 221
i6o 202 -

175 1 160

175
166
221
191
177
206
190
229
205
20L
210 .
Ic6

213_^ 191

18
15
2CL
18
197 . 17
19
19
257
18
16
230
20
200 . 20
22L
15 . 15
23.
22L
• 23
21
20
25S
22
220
25
22
213
23
16
231
15
20
21
209

21
19
22
20
22
18
30
23
27
25
19
2k

. 20

23

219

20

»
;

. h8
is
53 • 51'
53 : 52
L5
L7
hi , LL
63' ! ^
55 , 5L
57 1 59
56 ' 58
52 , 52
56
5h

5o

55
L5
L7 •
65
55
61
61 •
53
55

:56.55
i 53 \

Collections during month as percentage of accounts receivable at beginning of
*h. • Tr.ese a at a have been revised for recent months.
- — I.ie£e ciata are based on reports of about L75 large department stores reportsales b- t)?e of transaction, core'than LOO having charge accounts and about
'hayin-- instalment accounts. Back firr-^r mny be nVitai neri on request from the
' r.i-or of i'P.or.^irh and "fe.ri dt.i rs, •
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