Full text of G.17 Department Store Credit : June 7, 1951

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BOARD OF GOVERNORS' OF THE FEDERAL .RESERVE SYSTEM
*17.3

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June 7, 1951

DEPARTI.iENT STORE CREDIT - APRIL'1951
I n s t a l m e n t accounts, r e c e i v a b l e a t department s t o r e s c o n t i n u e d t o d e c l i n e
d u r i n g A p r i l and a t t h e month-end were 'It per . c e n t below t h e l e v e l of March.31. This
downward movement c o n t r a s t s w i t h t h e u p t u r n . i n department s t o r e i n s t a l m e n t a c c o u n t s
r e c e i v a b l e which i s u s u a l l y e x p e r i e n c e d a t t h i s time of y e a r , At t h e month-end, hewe v e r , t h e s e a c c o u n t s were 15 per cent"above t h e l e v e l of A p r i l 30, 1950, a l t h o u g h
t h i s y e a r - t o - y e a r i n c r e a s e was s u b s t a n t i a l l y l e s s t h a n t h e average y e a r - t o - y e a r i n c r e a s e s shown s i n c e 191*6. 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 showed t h e u s u a l downt u r n i n A p r i l , and when r e l a t e d t o f i r s t - o f - m o n t h r e c e i v a b l e s , y i e l d e d a, c o l l e c t i o n
r a t i o of 10 per c e n t , 1 p o i n t below t h e • March r a t i o . At t h e A p r i l r a t e of repayment,
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 would be l i q u i d a t e d i n about 10 months, s l i g h t l y l e s s
than t h e average repayment p e r i o d p r e v a i l i n g i n A p r i l 1950. •
Charge a c c o u n t s r e c e i v a b l e d e c l i n e d It per c e n t i n A p r i l , whereas small
rr.onth-to-month i n c r e a s e s have been t h e r u l e i n A p r i l of r e c e n t y e a r ?
Charge accounts
' o u t s t a n d i n g a t t h e end of A p r i l were, however, 15 per cent above t h e y e a r - a g o l e v e l .
The 9 per cent drop in c h a r g e - a c c o u n t c o l l e c t i o n s was r e f l e c t e d i n a d e c l i n e i n t h e
c o l l e c t i o n r a t i o f r c n 50 per c e n t in March t o hi per c e n t in A p r i l . The r e s u l t was 'a
l e n g t h e n i n g of the average repayment" p e r i o d t o about 63 days, s cm W h a t longer, t h a n
t h a t p r e v a i l i n g both a month ago and a y e a r ago.
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'
I n s t a l m e n t s a l e s accounted f o r a s l i g h t l y s m a l l e r p r o p o r t i o n of t o t a l d e partment s t o r e s a l e s in A p r i l -than in March a s i s shown by.,the. d e c l i n e of 15 per c d n t
which compares w i t h d e c l i n e s of 9 per c e n t f o r b o t h cash and charge s a l e s . I n s t a l ment s a l e s were 8 per c e n t below t h o s e of A p r i l 1950, w h i l e cash s a l e s were 5 per
cent below t h e y e a r - a g o l e v e l . Charge-account s a l e s , i n c o n t r a s t , showed a . s l i g h t
i n c r e a s e over t h e p r e v i o u s A p r i l .
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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
Percentage change from:
Apr..1950
Liar. 1951
to
to
Apr. 1951
-,Apr. 1951

Item

i

.

Accounts r e c e i v a b l e , end of month
I n s t a l m e n t account
Charge a c c o u n t s
,•

.

- '

C o l l e c t i o n s d u r i n g month
Instalment accounts
Charge a c c o u n t s

•

- 9
-15
- 9

1 1 +

S a l e s during month : .
Cash
instalment
Charge accounts

. +15 +15.

. - a /
- k

+27
+16

-10
- 9.

R a t i o of c o l l e c t i o n s d u r i n g month 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:
Apr.
Liar.
Apr..
1950
1951
. 1951
Instalment accounts
Charge a c c o u n t s
riCTE:—Figures'for
A p r i l 19!? 1



:

:
;

'

.18 .
hi

19
5°

17
•-

a r e p r e l i m i n a r y and s u b j e c t t o "re vision..

5 0

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G.17.3

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- 2 DZP-.RTI.ZKI STORES' - APRIL 1951

#

Cash and C r e d i t S a l e s , by Federal Reserve- D i s t r i c t s
I r.dexes; I9U1 a verage = 100
• Instalment sales
Ca^h s a l e s
mar. .Apr.
y.or.
::ar.
Apr. ' a p r .
1950
1950
1951p
1951
19$lo
1951

Federal
Reserve.
District

C1evslana

\ia
!
!
'

. -c
S t . Lcuis
. . r s d s _ty
^a^zasHan . l a r . c i s c c
U. C/ I c t a l

180
177
153
159
199
2h5
19132 .307
217
252
17L

191
19222
202
207 301 I
211
201.
224
27S
26;
203

210
193
ISO
201 '
163
199
2L6
192
21k
1^5
266
257
163
205
.
221
195
239 . 2 Oli
252
250
265
315
Icy
195 '

191

210

201

199

Charge-;iccount s a l e s
Apr.
: :ar.
Apr.
1950
1951
1951P

235
221
219
265
215
273
205
2o0
355
256
- 33u
206

251;
192
201
250
163
301
198
258
220
"239
166
lu7

181:
175
213
217
201
227
210
199
239
228
269
201

188
191
' 2LI
226
228.
287
236
215 i1
232 l1
2 ^ j1
- 103
'
232

196
172
212
207
20L
2ac
197
20u
2:j"219
255
202

23U

215

20u

228

20a

.cc cunts r e c e i v a b l e and C o l l e c t i o n s , by Federal Reserve D i s t r i c t s
rederal
district

-

":-cstcn
he-.: Ycrk
-hiladelrliia
Cleveland'
.
Richmond
Atlanta
Chicago.
Ct. Louis
-Minneapolis /
hansas City
'
Dallas
:_in P r a n c i r c c
_U. T. J o t a l

...ccounts o u t s t a n d i n g , enccfmcntn
C o l l e c t i o n ratios-;Indexes: l y h l average = 100
Charge-account
Instalment
Charge3-account
Instalment
Apr.
Apr. >ipr. liar. fipr. ,ipr.. ] :ar.
.~.pr. : a r . .-.pr. ...pr.
1950
1951h 1951 1950 1951p 1951 1950 1951P 1951 1950 1951P 1951

252

=i
201
232
293
185
39:.
209
2 55
233
3L8
L90
2 78

212
153
211
231
lo5
359
171;
2-5-1
192
239
,15
211

208
207
151 - 158
2 71
257
2.30
22L
228
231.
230
212
225
215
263
251
211
212
237
231
2L0
231;
220
232

211

255

212

219

218
197
223
2:o
150
379
201
2 71
221
338

227

150 17
175 16
216 17
393 13
179 16
205 15
181 21
. 219 18
192 . 2 1
202 19
199 15
189 18

18
18
18
19
.17
16
23
19
22
21
15
20

16
16
17
17
17
lh
20
18
20
20
lh.
18

18

19

17 • hi

190

hk
a
-46
48
39
39
53 •
h9
51
50 .
hi
hQ •

L6
50
50
13
46 .
50
' 51
50
h2
13
h2
hh
5757
h9
.48
55
53
5-3
53
50
51
52
51
50

50

c — ; v l i m - r.ary.
- > — C e i l . : . v . r i n g month as percentage of accounts r e c e i v a b l e a t beginning of
: : 5 I E : — , ^ . : a are based on r e p o r t s of about L75 l a r ^ g department s t o r e s r e p o r t i * - s - . l e s ty type of t r a n s a c t i o n , more than iiOO having charge accounts and
L cut 3C0 having i n s t a l m e n t a c c o u n t s . Back f i g u r e s may be obtained on r e c u c s t from the D i v i s i o n of Research and S t a t i s t i c s .