View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
July 6, 1946

G.20
SALIS :rilWICB COIIP.ABDS

YAY 1946

Retail financing.--The volume of automotive and other retail financing in ~y was higher
than in April, and outstanding balances on both classes of paper continued to increase.
The rise of 10 per cent in total automotive financing, shown in the table below, reflected
gains in the volume of all classes of retail automotive paper purchased, except used car paper. New
passenger car financing continued to rise sharply, and constituted about 20 per cent of the dollar
volume of aut0111.otive paper acquired in May compared with 16 per cent in April.
Retail financing of consumers' goods other than automotive was 9 per cent higher than that
of the preceding month. The decrease in volume of paper arising from n1iscellaneous retail sales was
more than offset by substantial increases in all other types of diversified financing.
Retail Financing by Sales FiDanoe Companies

.llat

Percentage cham;e. April 1946 to
1946
Number
volume of paper
Oufstanding balances,
end of month
acquired during month
of cars

Class of retail instalment paper
Automotive '

+ 7
-+54
- 4

Passenger oars:
Commercial oars:
Other consumers' goods:

New
Used
New
Used
Total retail

I

+ 10
--

+102

Total retail

+ 94
+ 17

+

6

Furniture, radios, musical instruments
Refrigerators and other household appliances
Residential building repair and modernization
Kisoellaneous retail

+ 10

+ 40

-

4

+
-9

+ 12

+ 16
+ 13

-

4

I

...
...
...
...
+ 12

...
...
...

...

Wholesale finanoing.--The volume of wholesale automotive financin~ in May was more than
one-fourth larger than ti1at of a month earlier, but outstanding balances showed only a small rise.
The decline of 2 per cent in wholesale .financing other than automotive was accompanied by a small
increase in outstanding balances.
Ratio of paper ao~uired to balances outstanding.--With reference to total sales financing,
the rise in kay from 40 to 43 per cent in the ratio of paper acquired during the month to balances
outstanding at the end oflthe month reflected the increased ratio for wholesale automotive credit.
The volume of wholessle automotive psper acquired during the month averaged about 168 per cent of
,the corresponding amount outstanding at the end of the month. The ratio for other wholesale finan' cing was only 42 per cent, indicating a much more rapid rate of turnover for wholesale automotive
credit than for the nonautomotive type.
Note: Indexes of automotive and diversified financing forn~rly shown as Table 3 of this
report have been discontinued until they can be revised to a new base representative of postwar
conditions. The base fonnerly used (January 1942) is unsatisfsctory for measuring current trends.




Page 2
SALES FINANCE COJIPA:tliES

Table I.--Automotive 'and Di va'rsif'ied Financin:g· by Sales Finance Companies
Indexes of Outstanding Bale.noes1 · December 31, 1939 • 100

!/

Wholesale
other
than
automotive

Retail
other
COnS\UII8rS 1
goods

Industrial,
commercial,
and farm
equipment

End of month
and ~ar

Total
all
sales
financing

1939 •. ...•.••.••••••••

100

100

100

100

100

100

1940 ••••••••••••••••••

136

132

169

140

129

131

1941 ••••••••••••••••••

152

149

175

250

148

147

1942 ••••••••••••••••••

53

37

ll2

40

76

61

1943 •••.••••••••••••••

20

13

40

8

30

27

1944 ••••••••••••••••••

18

15

24

ll

26

26

1946 ••••••••••••••••••

22

18

27

38

39

23

1946- Kay ••••••••••••

18
18
18
18
18
19
21
22

14
14
15
15
15
16
17
18

25
24
20
18
17
18
24
27

16
16
16
19
21
28
32
38

28
29
30
31
33
35
37
39

28
27
27
25
24
24
24
23

44
49
56
68

41
44
46
51

June •••••••••••

July •••••••••· ••
J.ugust •••••••••
September ••••••
October ••••••••
November ........
December •••••••

Retail
automotive

Wholesale
automotive

25
27
32
March·••••••••••
35
April ••••• ·••••
f>7
bv,
37
71
31
24
36
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 montllly report form for January 1942. Succeeding indexes are derived 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. i±e indexes for the preceding month.

1946 - January ••••••••
February •••••••

23
25
26
29

18
19
20
22

28
36
36
35

Table 2.--Relative Importance of Loans Made by Sales Finance Companies
During
Kay 1946
and Outstanding Balances at End c£ llonth

Paper acquired
during month
Clau of paper

Outstanding balances,
end oi' month
Percentage
of total

Amount

Percentage
of total

Total, all classes of paper !/••••••••

$199,517,654

100

'' .469,920,565

100

Total loans ••.• •·•••••• .••.•••••••.••
Small (personal) loans ••••••••••••
Buaineea loans •••.•••••••••••.••••

381672.269

107~5'73.345

27 ,484~492

19
5
14

54,832,960
62,740,385

23
12
ll

160,845,385

81

362,347,220

77

11,187~777

\

Total sa lee tinan oing

!:J'••••••••••••

I

. Amount

Included ·in this clasdfication. are only those firma which, in addltion to their aalee financing.
. .


operations, reported loan acti v1 Ue.i • ' ·


Pap I
SALES FIMANCB COIIPAliiBS

Table 3,--Autamoti~ and Diversified Financing by Salee Finance Companiee
and Balancee Outstanding at End of Jlonth
Paper Acquired During 11ay 1946
Volume of paper acquired
during May 1946
Claea of paper

By all
companiee
reporting

By companies
reporting
outetandi~j

Outstanding
balances
May 31,
1946

!I

Ratio paper
acquired to
out standi,;,
balanon b

balances a

Total retail aut~otive •••••••••••••••••••
Total wholesale automotive,, ••••••••••••••
Total wholesale- other than automotive,,,
Total retail- other consumers' goods •••••
Industrial, commercial, and fare equipment

149,906,242
93,405,650
2,270,268
19,051,121
931,044

149,182,988
93,248,282
2,244,058
18,000,820
907,313

$199,836,818
59,106,075
5,309,031
106,244,929
6,204,277

25
158
42
17
15

Total sales financing.,,,,,,,,,,

U65,564,316

$163,583,461

1375,701,130

44

!f
~

Data are baaed on figures from sales finance companies able to report both their paper ao~uired and
their outstanding balances.
Ratio& obtained by dividing paper acquired (column 2) by outstanding balances (column 3),
Table 4,--:tlumber of can Financed and Volume of Paper Acquired
by Sales Finance Companies During May 1946
Number of oar a
Clau of paper
Number

Paper acquired

Peroentap
of total

Dollar
volume

Total retail automotive ••••••••••••••••

100

5ww paaaen~r oars ••••••••••••.••••••
New commercial oars ••••••••••••••••••
Uaed paaae~r cara ••••••••••••••••••
Used commercial oars •••••••••••••••••

ll,759
6,040
44,230
2,838

18
9
68
6

8,309,965
7,008,830
25,ll7,441
2,225,732

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

91,891

100

$8416391466

Eew oars (passenger and commercial),,

,

641867

78,642
13,249

86
14

73,679,660
ll,069,806

Percentage
of total

Used oars

(paaaen~r

and commercial),

142,661,958 a/

-

100
20
16
59
6

a(

100
87
13

!/ Data

are baaed on reports from sales finance compRniea providing a breakdown of their retail and
wholesale automotive financing, These amounts are leas than those reported in table 4 due to the
exclusion of some data for which breakdowns were not available,

Table

6,~-Volume

of Diversified Sales Financing During11ay 1946

Claea of paper
Retail - other consumer•' goodlt
Furniture, radioa, pianoa, and .other JIIUSioal inatrumenta ..
Refrigerators and other houaehold.applianoee,,,,,,,,,,,,,,
Reeidential building repairs and modernisation,,,,,,,,,,,,
Miaoellaneoua ret-.tl •. , .••••••••• .-.......................... .
Total retail ... , ,o;tb•r

o~a.umersi

of

Dollar volume
paper acquired

$1,072,069
1,528,307
ll,448,893
4,894,995

goode ••••••••••••.•.••••••••••••

U8,944,~64

Total wholeee,le - :Other. than automoti w •• , , •••••• • •·• • •• , • , ••••
Industrial, ooillleroial,. and farm equipaent ... , •••:.. ,. ...... , ••

2,270,258
931,044

Total divareified finanoing •••••••••••••••••••

$22,146,666

!f

Percentage
of total

6
7

62
22
86
10
4

100

Data are baaed on reportl frOID sales finance companiea providing a breakd01111 o~ their retail
finllnoing bf other oolisumera• goods. Thia amount ::h .le.. than that reported in tab.le 4 due .to th•
ezolulion of 1011111 data for which breakdown• ware not availabl!'o
, ,, ,,,

,.