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-.

BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
November 10, 1949

SEPTEJmER 1949

Retail financing.--8eptember purchases o.f automobile and other retail instalment paper
were less than in August for the reporting sales finance companies. Automobile paper purchased
during the month, however, exceeded repayments, and outstanding balances continued to expand.
Balances based on sales o.f other goods declined during the month.
The 9 per cent drop in dollar volume o.f retail automobile paper acquired, aa shown in
the table below, reflected decreased instalment sales o.f all types o.f vehicles. Passenger oar
financing was off more sharp:cy than that for commercial vehicles.
Consumer goods
,Pl'eceding month. Trends
repair and modernization
hold appliances and that

other than automobiles showed an 18 per cent drop from the volume o.f the
by type of paper were mixed, hOW'ever. Furniture, radio, and residential
paper registered gains. Paper based on refrigerators and other housebased on miscellaneous retail sales indicated sharp declines.
Retail Financing by Sales Finance Companies

Class o.f retail instalment paper
Automotive a Total retail
Passenger cars:
Commercial carsa

New
Used
New
Used

Percentae:e chane:e. Aue:ust 1949 to September :L9M
Number
Volume o.f paper
outstanding balances,
end of month
o.f cars
ac~uired durine: month

:!:Ji

::-_2

::-_2

-7

- 7

-!S

-4
-1

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

-18

~

-11
0

Other consumer goods a Total
Furniture, radios, musical instruments
Refrigerators and other household appliances
Residential building repair and modernization
ltl..scellaneous retail

-1.3

+.34
-.30

+2

- 9

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

Wholesale financing.--Reporting companies financed a smaller volume o.f new and used
vehicles in September than in August, but outstaming balances based on such transactions
increased. Wholesale financing o.f other goods also dropped below the August volume and outstanding balances continued to contract.
Radio o.f paper acquired to balances outstanding.-The turnover rate of receivables as
measured by the ratio of paper purchased during the month to outstanding balances at the end o.f
the month decreased 4 percentage points to .30 for September.

NOTE.--september data, based on returns from 12.3 sales finance companies, are compiled
in the same manner as those shown in earlier reports. Aggregates represent only 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 FINANCE COMPANIES

Table 1.--Automotive and Diversified Financing by Sales Finance Companies
Indexes of Outstanding Balances: December 31, 1939 • 100 ~

End of month
and year

1939··················
1940 •••••.••.....•....
1941 •.•••••..........•

100

136

1943 •.......•. •......•
1944 •....••...•••....•
194S••••••••••••••••••

1S2
S3
20
18
22

1947 ••••••••••••••••••

S9
119

1942 ••••••••••••••••••

1946 •••••••••••.•.•••.

Wholesale
automotive

Wholesale
other
than
automotive

Retail
other
consumers•
goods

Industrial,
commercial,
and farm
equipment

100
169
17S
112
40
24
27
90
163
2S2

Total
all
Retail
sales
automotive
financing

100
140
2SO
40
8
ll
38
224
394
4S4

100
129
148
76
30
26

39

100
131
147
61
27
26
23

lOS
226
232

89
116

362
389
U8
4S4

247

119
118

238
232

116

484
S61
S71
SSl
S1S
479
430
U7
400

221
214
207
203
202
203
203
202
199

118
117

100
132
149
37
13

lS

18

42

88
lSI

1948 ••••••••••••••••••

174

1948-Septeaber ••••••••

1S7
163
167
174

142

lSI

1S4
191
211
2S2

177
18o
184
188
191
198
203
214
22S

1S2
1SS
164
17S
188
197
2o6
219
228

273
289
281
260
219
22S
227
242
279

October ••••••••••

November •••••••••
December •••••••••
1949-January ••••••••••
Februar.r•••••••••

March ••••••••••••
April ••••••••••••
~-·············

JWle. • • • • • • • • • • • •
J~ •••••••••••••

August •••••••••••
September ••••••••

14S
148

243

S9

116

lll
112
112
lll
lll
lll

110

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 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 the indexes for the preceding month.

Table 2 .--Relative Importance of Loaus Made by Sales Finance Companies
During September 1949 and Outstanding Balances at End of Month
Outstanding balances,
end of month

Paper acquired
during month
Clau of paper
Amount

Percentage
of total

Amount

Percentage
of total

Total, all classes of paper ~· •••••••

$813,28S,Ol9

100

$2,733,082,484

100

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

37,6S6,840
10,239,133
27,417,707

1

4

3

135,o61,246
70,990,123
64,071,123

3
2

Total sales financing ~· •••••••••••

77$,628,179

96

2,$98,021,238

95

s

i
~

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




Page 3
SAlES FIHAJICE COMPANIES

Table 3.--.t~utamotiw and Diwrdfied Financing by Salee Finance Campaniea
Paper Acquired During September 1949 and Balances Outstanding at End of Month
Volume of paper acquired
during September 1949
Class of paper

By companiee

By all
companies
reporting

reporting

Ratio paper
acquired to
out standi,;,
balances b

Outstandinr;
balances
septembVo,

1949

outstandi~J

balances a

Total retail automotive •••••••••••••••••••
Total wholesale automotive ••••••••••••••••
Total wholesale- other than automotive •••
Total retail- other consumers• goods •••••
Industriel, commercial, and fare equipment

$272,508,947
476,566,8.36
12,16),225
22,840,097
6,126,168

$271,.367 ,.342
476,010,017
12,160,005
22,572,062
6,122,335

$1,829,.324,187
4.37,871,585
.30,189,928
278,020,784
82,465,042

Total sales financing •••••••••••

$790,205,273

$788,231,761

$2,657,871,526

15
109

40
8
7
30

~

Data are based on figures from sales finance companies able to report both their paper ac~uired and
their outstanding balances.
~ Ratios obtained by dividing paper acquired (column 2) by outstanding balances (column 3).
Table

Financed and Volume of Paper Acquired
by Sales Finance Companies During September 1949

4.--~umber of~rs

Number of cars
Cla88 of paper
Number

Paper

Percentage
of total

acquired

Dollar
volume

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

2,2~,101

100

I21.!3,QS6,6la1

New passenger care •••••••••••••••••••
New commercial cars ••••••••••••••••••
Used passenger cars ••••••••••••••••••
Used commercial cars •••••••••••••••••

90,699
16,150
116,428
11,630

39

7
49
5

288 2488

100

1445 2 672 2 288

New cars {passenger and commercial) ••
Used cars {passenger and commercial).

273,253
15,235

95

Y

132,777,111
21,137,871
81,315,664
7,827,998

Total wholesale automotive •••••••••••••

Percentage
of total

432,258,970
13,413,318

~

5

100
55
9

33
.3

Y

100
97
3

Data are based on reports from sales finance compRnies 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 September 1949

Class of paper
Retail - o·i;her consumers' goods:
Furniture, radios, pianos, and other musical instruments ••
Refrigerators and other household appliances ••••••••••••••
Residential building repairs and modernization ••••••••••••
Miscellaneous retail, ••.••••••.•••••.• ,,.,,., ••.••.. , ..•••

of

Dollar volU!Il8
paper acquired

$22,221,797
12,163,225
6,126,166

Total diversified financing •••••••••••••••••• ,

$40,511,190

!(

5
29

• 2,101,870
11,617,180
1,397,631
7,105,116

Total wholesale- other than automotive •••••••••••••••••••••••
Industrial, commercial, and farm equipment ••••••••••••••••••••

Total retail- other consumers' goods •••••••••••••••••••••••••

Percentage
of total

3

18

y

55
30
15
100

Data are based on reports from 6ales 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,