Full text of G.17 Department Store Credit : July 10, 1951

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BOARD OF GOVERNORS OF THE FEDERAL RESERVE

SYSTEM-

G.17.3

July 10, 1951
DEPARTMENT STORE CREDIT - MAY 1951

Instalment accounts receivable .at department .stores .decreased k per cent
during May, a month in which increases have -been/usual, . Despite the continuing
monthly decline, instalment accounts receivable were '8 per. pent above the level of
May 31, 1950. However, year-to-year gains'- in other postwar;years were generally
much larger. Collections on instalment acco.unts.'dropped.3 per cent below April,
but, when related to first-of-month .receivables," they yielded a collection ratio
of 18, equal to the ratio of both "the preceding month and thai; of May 1950* (This
rate of repayment would .liquidate instalment accounts outstanding in about 1:0 months.
Charge accounts receivable showed a seasonal gain of 2 per cent during
May, and at the month-end were 15 per cent above the level of a year % o . Chargeaccount collections were the same as in April, but, when related to first-of-month
receivables, resulted in a collection ratio of h9} 2 points above, that for April,
This increase shortened the average repayment period to about- (51 days, but this
was still about 2 days longer than the average repayment period of the preceding
'

,

.

'

.

.

. .

'

,

A1 though instalment sales' showed a gain, of 3 per cent in May, this was
small compared with the 11 per cent gain in charges-account sales and the. 9 per
cent increase in cash sale's. Instalment sales were 10 per cent below those of
May 1950, while charge and cash sales showed gains of 6 per cent and 2' per cent,
respectively.
Department Store Sales, Accounts Receivable, and Collections
Percentage change from:
May 1950
Apr. 1951
to
to
May
1951
May 1951

Item

Sales during month
Cash
Instalment.
Charge accounts

Accounts receivable, end of month
Instalment accounts
Charge accounts

+ 2
-10
+ 6

+ 4
+ 3
+11

'

.

'

Collections during month
Instalment
Charge accounts

- h'
+ 2

.

'

- 3
0 •

.

+8
+15

+20
+10

Latio of collections during month to accounts receivable at beginning of month:
May
May
• Apr,
1951
1951
1950
Instalment accounts
Charge accounts

18

• U9

18

hi

i!OTr.: —Figures for May 1951 are preliminary and subject to revision.




18
52
*

DZPARTI.ZNT STOICS - iilY 1951
Gash and Credit Sales, by Federal Reserve Districts
. Federal .
Reserve
District .

Indexes: 191*1 average = 1QO
Instalment sales
Cash sales
•
Hay
Apr.
Hay
' Apr.. " Hay
i ::ay
1950
1950
1951
1951P
1951
1951P

Boston
191
. IJevr York
193
Philadelphia
203
Cleveland
203
Richmond
I 229
Atlanta
. ' •1i 2?L
.Chicago
, 213
'St..Louis
2C8
IMinneapolis
236
.Kansas City
,270
Dallas
280
Sa-n Francisco
5oo
U . S . Total

180
177
18k
189
199
2k5
19k
, 182
307
2k7
252

nk

209

192

200
179
20k
, 1# '
213
267
.215
.
20k
2k9
259 269
199.
205

173
217
175 •
227
192
276
IS5
202
295232
299
18k

193
201
162
2k6
lk5
257
183
220
20k
250
315
167

205

199

.

Charge-account sales
Kay
Apr.
Hay
1950
1951P
1951

219
198
182
223
" 197
2k2
251
235
. 205
229
3k6 ' 266
201
;237
26?
225
23k
2.73
25k
257
296
k9i
183
223
227

229

18k
175
212
217
201
227
210
199
239
228
269
200
" 206

201
176
228
223
21k
256
212 •
. 218
273
' 237
279
211
216

Accounts Receivable and Collections, by Federal Reserve Districts
Federal
. Reserve
District

Accounts outstanding, end of men th
-Collection ratios^
Indexes: -19kl average = 100
Charge-account
instalment - 1Charge-account • Instalment
Apr, *" Hay
Apr. Hay '"Hay "Apr. 'Hay Hay
Hay
Apr. Hay Hay
195lp 1951 1950 1951P 1951 1950 195lp 1951 1950 195lp 1951 .1950

Boston
.. ; 2C6
He- York
. . 190
Philadelphia .
215
Cleveland
275
Richmond
17k
.Atlanta
36k
Chicago
190
260
St.--Louis
210
Minneapolis
Kansas City
32k
Dallas
kk7
San Francisco
250
S.' Total 235

218 212
196 175
223 210
286 :238
180 165
379 369
201 175
271 257
222 191
338 2k6
k69 kk3
253 217

213
132
262
229
230232
227
255
220
238
238
216

208 182
1.7
16
180 159
257 222 • 17
17
22k 202
17
228 133
16
230 232
21
216 193
18
251 229
20
212 199
19
231 210
16
23k "205
222 191 . 21

2kk

223

220

217

19k

18

17
• 16
17
18
16
15
21
18
21
19

15
15
• 18- k6
17 - k8
• 17
k9
' 17 -. ko
lk
k2
20 • 57
- 18 • k9
19
52
50
19
15 13 50
18' 52
19
18 " 18

k9

UU j k7
k2
-kk"
5.2
k6
k8
kk
39
k7
39
61
53
• 5k
k9
56
51
50
5k
53
k7
53
k8

$

k7

52

p—Preliminary.
*—Collections during month as percentage of accounts receivable at beginning of
•ITGTEjv-Tnese data are based on reports of "about k75 large department stores reporting sales by type of transaction, more, than kOO having charge accounts and
about.300 having instalment accounts. Back figures may be obtained on request from.the Division of Research and Statistics.