Evening star., 1934-05-27
Credit Survey Shows
Improved Conditions
BY HARDEN COLFAX.

Judged by credit conditions during
the latter half of. 1888, retail trade
in the United States has improved
substantially. After four years Of
continuous decline, the dollar volume
Of goods sold between July / and De-
cember 81 last exceeded the total for
the corresponding period of 1882.
This Is the conclusion justified by
results of the eighth semi-annnal retail
credit survey, according to the Bureau
of Foreign and Domestic Commerce in
the Department of Commerce. This
survey shows that the ratios of credit
to total retail sales during this period
reversed their preceding downward
trend. Total credit sales (that is
open" and "installment'O increased
from 5l.4 per cent in 1882 to So per
cent in 1888, and the percentage Of
cash sales showed a corresponding
decrease.
One of the most encouraging aspects
Of the present business situation, as
revealed by this report, is what the
compilers call the "acceleration OF
payments on accounts receivable" To
particularize: From 1880, the trend
of collection percentages was gradu-
ally downward until May and June
of last year, when slight improve
ment is noted. The departments re-
port, which is about to be made public,
shows a decided upturn in both these
open and installment collection per-
centages, healthy increases being noted
over those for the same period OF 1882.
The significance of these changes,
of course, lies in the fact that they
indicate a reduction in the average
length of time that accounts are out
standing. For example, in the July
December period, 1888, installment ac-
counts were outstanding on an aver
age Of III months-one month less
than for the corresponding period OF
1882. At the same time, bad debt
losses were very much less In totals
and fewer in number.
On so-called open accounts. this bad
loss percentage was IL per cent for
the period considered in 1888 and Ia
per cent for the corresponding period
in 1882. On installment accounts the
figures were Al per cent for 1888 and
81 per cent for 1882. It is believed
that these facts testify, in part, to
the improved financial condition OF
the general consumer and. In part,
also, to more aggressive policies ADOPT
ed by credit managers.
r X X r
Realizing the profound changes
which are developing in business dur
ing this period Of reconstruction, or
ganized groups of business men nave
asked the department and various
retail credit associations to collect
and classify dependable current fac
tual information as to credit condi-
tions and practices throughout the
country. The department has re-
sponded and, for several years, during
which it has been impossible to pre-
dict the credit developments Of even
a few months ahead, business men
in the United States have been find
ing much useful information In q
semi-annual survey OF retail credit
conditions made by the department.
For the past five years data have
been compiled every six months by
this Federal Government agency at
the request of the National Retail
Credit Association and with the CO.
operation of this organization. The
main object is to aid in providing
sound credit management through
research and education"
Hereafter this service will be made
annually, the next one covering the
calendar year 1884. The conclusions
in the present survey are based on
reports from more than $50 retail
esta blishments - department stores,
furniture stores and stores handling
'jewelry, mems clothing. shoes and
women's specialities In 20 cities, geo.
graphically distributed throughout the
country.
As experimenting these data in the
department survey, It Is significant
to note Just what chances merchants
have for collecting past due accounts.
The National Retail Credit Associa-
ton Is authority for the statement
Cbased on an investigation, the re-
suits Of which have Just been made