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..;_.JIOARD

OF GOVERNORS
. .;~~~~~/
OF THE
; ~EDERAL RESERVE SYSTEM
April 11, 1949

Go20
SALIS FDWIIB OOIIPARIES

I'IEUJRY 1949
Retail .t'inanoins.--Febl"IJal'7 volume of' financing of' autcaobile sales iDCre&lled after a
marked drop during the preceding month according to reporting sales finance companies. outstanding balances on automobile contracts continued to expand. Financing of' other consumer goods 1J&II
in smaller volume again in February and outstanding balances declined further.
The 9 per cent rise in total automobile paper acquired shown in the table below re.t'lects
marked increases in transactions on all classes of' motor vehicles. The only class of' paper wbi.ch
failed to show a significant rise fran January levels us that arising from the financing of' used
trucks.
Retail financing of consumer goods other than automobiles us down 15 per cent from the
January volume with the sharpest drop evidenced in repair and modernization credits. All t,pea
of paper were in smaller volume except paper based on refrigerators and other household
appliances.
Retail Financing by Sales Finance Companies

Class of' retail instalment paper
Automotive:

Total retail

Percentage change~ January 19~ to February 1949
Volume of paper
outstanding balances,
Number
of cars
acauired duriruz month
end of month
~

~

+10
+13

Passenger cars:

New
Used

+13
+13

COJIIIIlercial cars:

New
Used

• 6

Other consumer goods:

•14

Total

Furniture, radios, lllUSical :Instruments
Refrigerators and other household appliances
Residential building repair and modernization
Miscellaneous retail

.:t.l

• l

...
...
...
...

::!2

::...l

+13

- 6
+ll
-43

-4

...
...
...
...

Wholesale financins.-The volume of wholesale automotive paper acquired in February was
less than :In January but outstanding balances owed by dealers continued to expand. Wholesale
financing of other goods was up in February and outstanding balances also rose during the month.
Ratio of paper acquired to balances outstanding---Paper purchased during February was
26 per cent of the balances outstanding at the end of the month or about the same ratio as :In
January.

NOTE.--February data, based on returns frcm 134 sales f:lnance companies, are coDpiled
in the same manner as those shown in earlier reports. Aggregates represent o~ the totals for
the reporting companies and, since the reporting sample is not identical from month to month,
they are not comparable with totals of' preceding months.




Page 2
SALES FilWICE COIIPAIIIS

Table I.--Automotive and Diversified Financing by Sales Finance Companies
Indexes of Outstanding Balances: December 31, 1939 • 100 ~

End of month
and year

Total
all
sales
financing

1939 ••••••••••••••.••

194o •••••••••••••••••
1941 •••••••••••••••••

19b2 ••••••••.••••••••
~~'·················
19lala. •.••••••••••••••••
1945 •••••••••••••••••
1~6 •••••••••••••••••

1947 •••••••••••••.•••

lgbB •••••••••••••••••

1948-Februa~··••••••
March •••••••••••

..,.....•.......
April•••••••••••
June ••••••••••••

JulY••••••••••••

Aucuat ••••••••••
Sept-ber,,,,,,,
Ootober •••••••••
1'ove.111.ber ••••••••

December ••••••••
1949-Januar,y •••••••••
Februaey ••••••••

100
136
152
53
20
18
22
59
119
174

127
134
l?fi

Wholesale
other
than
automoti 'WI

Retail
other
consumers•
goods

Industrial,
commercial,
and farm
equipment

100

100

1~

Retail
automotive

140

100
129

100
131
147
61
27
26
23
59

Wholesale
autanotive

100
132
149

175
112

13
15
18

250

40

~

8
11

40

24
27
90
163
252

42

88
151

147
151
155
157
163
167
174

151

177
180

rl52
155

~

454

171
175
159
143
165
1(4
165
154
191
211
252
273
289

141

96
105
113
119
123
130
136

38

224

142
145

148

1!45
458
517
495
462

148

76
30
26

?fi

105
226
232

230
232

89

116

94

418
454

250
'251
250
249
247
243
238
232

98
111
118
121
120
119
119
118
116
116

484
561

221
214

118
117

1#1
?fi6
362

389

240

Indexes as of .December 31 for the years of 1939, 1940, and 1941 are based on figures reported by
sales finance companies on a supplementary report form which accompanied the regular monthly report form for January 1942. Succeeding indexes are deri wd by calculating the percentage
changes of the outstanding balances reported by sales finance companies for each month from
those reported by the same companies for the preceding month, and by linking these percentages
to the indexes for the precedillg month.

!/

Rnised
Table 2 .--Relathe Importance of Loans l4ade by Sales Finance Canpanies
During Februaey 1949 and Outstanding Balances at End of Month
Papar acquired
during month
Class of papar
Amount

Total, all classes of paper ~·•••••••

""~

'701

.oc;c;

~.752.361

Total loans .......•••.....•••• , .•.••

Small (personal) loans ••••••••••••
Business loans ••••••••••••••••••• ,

10,3(:19,~}7

Outstanding balances,
end of month

Percentage
of total

Amount

Percentage
of total

100

t2 221i .. 7JJJ '355

100

6

158. 651. 859

7

74.531,420
84,120,4?8

3
4

2,066,~.496

93

24.383.024
534,038.~

Total sales finen cing ~, , •• , •••••••
-

2
4

94

Included in this classificat~on are only those firms which, in addition to their sales financing
operations, reported loan activities.



Page3
SALES FilWICZ COIIPAIIIBS

fable 3.-~utomoti~ and Di~reified FinanoinE by Salee Finance Companiee
Paper Aoquired During February 1~9 and Balances OUtstanding at End ot llonth
Volume of paper aoquired
during February 1949
By omapanies

OUtstanding
balance a
February 28,
1949 ~

Ratio paper
ecquired to
outstandi,;,
balances b

Claee of paper

By all
companies
reporting

reporting
outatandi!7
balances a

Total retail automotive ••.••••••••••••••••
Total wholesale automotive,, ••••••••••••••

1157,109,517
557,123, ,eo
14,484.326
13,512,115

11,225,816,($8
450.365.974
42.768.726
328,61.4,173

15
79

:z.689.gz2

1154,957.490
355,025,685
14.470,772
13.383.500
~.~.2~~

8~.44o.007

4
7

rotal sales financing ••••••••••• 1547.918,617

1543.477,978

12,131,005,578

26

Total wholesale - other than automotive,,,
Total retail - other consumers' goode.,,,,
Industrial, commercial, and fano equipment

!(

'Ef

34

Da~a are based on figures from sales finance companies able to report both their paper acquired and
their outstanding balances,
Ratios. obte.ined by dividing paper acquired (column 2) by outstanding balances (column 3),

Table

4.--~umber of~rs

Financed and Volume of Paper Acquired

by Sales Finance Companies During February 1949

Number of care
Clau of paper
!lumber

Paper acquired

Percentage
of total

Total retail automotive,,,,,,,,,,,,,,,,

1~~.12~

33

Used commercial oars,,,,,,,,,,,,,,,,,

44,013
9,926
72,766
6,418

7
55
5

Total wholesale automotive,,,,,,,,,,,,,

208,443

New oars (passenger and commercial),,
Used oars (passenger and commercial),

186,505
21,940

Bew commercial oars ••••••••••••••••••

Used passenger oars ••••••••••••••••••

Percentage
of total

tl.H.4n. ~34 aL

100

lew passenger oar••••••••••••••••••••

Dollar
volume

100

(:2, 705,897
14,853.616
54.9($.482
4.944.339

46

100

1331,($8,190~

100

89

309.957.724
21,740.466

93
7

11

11

40
3

!( Data

are based on reports from sales finance compftnies providing a breakdown of their retail and
wholesale automotive financing, These amounts are less than those reported in table 3 due to the
exclusion of some data for which breakdowns were not available,

Table 5,--Volume of Diversified Sales Financing During February 1949

Cla88 of paper
Retail - other consumers• goodaa
Furniture, radios, pianos, and other musical instruments ••
Refrigerators and other household appliances,,,,,,,,,,,,,,
Residential building repairs and modernization,,,,,,,,,,,,
Miscellaneous retail., ••....•• , •••••••••••.•••••• •..• ..••.••

Total retail - other oonaumeras• goods •••••••••••••••••••••••••
Total wholesale- other than automoti~•••••••••••••••••••••••
Industrial, commercial, and far.m equipment ••••••••••••••••••••

Total diversified financing.,,,,,,,,,,,,,,,,,,

Dollar volume

ot paper aoquired

_I

857.098
3.894.906
2, 716.782
5. 739,861

Percentage
of total

3
12
8

17
40
43
17
100

·,

r

Data are based on reports from sales finance companies providing a breakdown of their retail
financing of other consumers' goods, This amount is lese than that reported in table 3 due to the
exclusion of some data for which breakdowns were not available,


I