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BOARD OF GOVERNOR'S OF THE. FEDERAL RESERVE SYSTEM
G.17.3

•

September 6 , 1950

DEFnRTI.IENT STORE CREDIT - JULY 1950
Instalment accounts r e c e i v a b l e a t department s t o r e s i n c r e a s e d f u r t h e r
i n J u l y b u t a t a f a s t e r r a t e t h a n i n t h e p r e c e d i n g f o u r months. At t h e end of t h e
..icnth t h i s t y p e of i n d e b t e d n e s s r e a c h e d an a l l - t i m e h i g h , 53 per cent above t h e
amount o u t s t a n d i n g on J u l y 31 l a s t y e a r . 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 c o n t i n u e d i n about ..the same volume as- i n . June and t h e r a t i o of c o l l e c t i o n s t o a c c o u n t s
r e c e i v a b l e on t h e f i r s t of t h e month remained a t 1? per c e n t . At t h e p r e v a i l i n g
r a t e of re p a y m e n t, i n s t a l m e n t a c c o u n t s would be o u t s t a n d i n g c o n s i d e r a b l y l o n g e r
than a year e a r l i e r .
Charge a c c o u n t s o u t s t a n d i n g a t t h e end of J u l y were 5 p e r c e n t below t h e
l e v e l of a month e a r l i e r b u t were 13 per c e n t l a r g e r t h a n on t h e . c o r r e s p o n d i n g
d a t e of 19ii9. C o l l e c t i o n s on charge a c c o u n t s d e c r e a s e d 5 per c e n t from June t o
J u l y and t h e c o l l e c t i o n r a t i o dropped from 5 1 per c e n t t o 1*9 per c e n t . The average
c o l l e c t i o n p e r i o d f o r c h a r g e a c c o u n t s o u t s t a n d i n g i n J u l y was about 56 d a y s , n e a r l y
6 days Ioncor than i n t h a t month l a s t . y e a r .
;
Both cash and c h a r g e - a c c o u n t s a l e s shewed l e s s t h a n t h e customary
s e a s o n a l d e c l i n e i n J u l y . In.rta?r:.eht s a l e s , however, r o s e c o n t r a - s e a s c n a l l y d u r i n g t h e month, exceeding.-the; June f i g u r e b y . 2 3 p e r T h e a c t i v i t y d u r i n g the
rrionth,,which stemmed in. p a r t from--increased p u r c h a s i n g of . dvirable.goods follow-*
i n g thQ Korean o u t b r e a k , b r o u g h t s a l e s .of. a l l typ.es ; w e l l ..above y e / i r - e a r l i e r l e v e l s .
l l he y e a r - t o - y e a r g a i n was p a r t i c u l a r l y marked i n t h e i n s t a l m e n t segment — 7h
per 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 change from:
June 1950 I July 19^9
to
July 1950
J u l y 1950

Item

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

+10
+ 7L
+29

-13'
+2T
-13.
- |

+ 5'
-.5
'

0
- 5

•' +53
+13

;

+28
+ 7

R \t;.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:
July
June
July.
.
1550_
1950
19U9
Instalment accounts
1?
17
'19
Characcounts
• h9
'
51
4.9
-Figures f o r J u l y 195^ 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 .




G.17.3

iJ S L * iCw
X

•
'

Boston
..ew l o r k
; nilacielphia
%L PC d
_C
Atlanta
r
uCitO "
: t , . Louis e^olis
Kansas C i t y "
3 a l l is
a- r ncisco
U.'E. Tctal

i n d e x e s , 1941 avorage = 100
!
Cash s a l e s
Charge-arcount s t i e s
installment s a l e s
July
1 July
June
June
July
July
July
July
June
lySOp
19<0p
1919
1969
1950
1969
19S0p
J950
19S.0
• 2CC ~
160
202
13a
1=9 ! 130
11,1
191
151
' I/O
165
137
17c
166
281
IS 9
icy
167
202
Ida
22$
201
232"
112 166 . 245.
183
202
186
168
1 187
301'.
205 j 233
Ibh
333
251
213 .
626
250
230
228 " 2 0 1
095
20-3
1/c
177
257
173

199

is? j

256

j

131
204:
133
221
129 1 137
161
120
17a
186
223
156
128
171
123
261
208
332
196
183"
135
176
2^7
:9S
196
198 !
-176
202
231
27&
621 , '356
235
iCh
130
236
.203

117

182

201;
177
223
211.
210
210
215 .
m
213
220
22k
208

US
103
128
165 =
ia5
167
113
151
166
163
176
172

. 208 j 161

a c c o u n t s R e c e i v a b l e ana C o l l e c t i o n s , by F e d e r a l Reserve D i s t r i c t s

Charpe-F.cciunt
^nstalnent
i Charge-account i
Instalment
July
July
July 1 July
July July
I J u l y Uuly
19S0P IPSO 1969!1950p 1950 "1919 1950p 1950 1969 1950p 1950 1949

1

FederalReserve
District
Boston
: :r.-:
Thilauelphia

21.
172
203
219
I67

^ila.ta
.. t . _ r a i s
I.;:..-r.-:,lis
Kansas : i t y "Callas SarT F r a n c i s c o

399
190
273
206
289
Sly
! 265

U.' C. T o t a l ] 230

208
172
207
239
165
376
IcO
260
16325665
221

12 9l
1251
156!
1761
130!
236
113
172
113
173
2S3
152

219

151; 181
1

166 . 1 8 5
151 16
1 - 6 : ISO 15
152
181 IS
201
223
190
201
169 17
166
183
157 17
206
192
170 13
152
196 ' 156 20
226
221
198 i d
l o 2 ' 195
157 20
211
210
19
12
192
19S
- £
191
I6u 18
200
196

163| 17

15

17
16

17

:

20
16
25
21
17
23
13
21

69 . 63
60
69
• 52
65
52
SO
ho
62
38
59
57
69
6952
53
52
55
•50
69
52
56

17

19

51 | 69

16

1C
17
16
13
20
17
18

S

- O o -l -jct- cns a u r i n r n c n t h as p e r c e n t a g e cf 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
— i n e s c a a t a a r e based on r e p o r t s of about UlS l a r g e department s t o r e s
crtin-r- s - l e s by type of t r a n s a c t i o n , more t h a n 4OO naving charge a c c o u n t s and
avcu- 30C naving 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 ;:.ay be. o b t a i n e d on r e q u e s t
f r c z -tne D i v i s i o n of Research and S t a t i s t i c s .