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For Release In MORNING Newspapers of Thursday, June 26, 1947 SECURITIES AHD KXCHAKZ COHOSSME Philadelphia STATISTICAL SB? TUB Ktltut «o. 777 _y f O G K JOB COMPOSITE)* OF BroinDHAIS* SAVBB, JAU.-JttH., 1947 Xndividmls eaved $1.4 billion in liquid for* £/ daring the first quarter of 1947, according to the quarterly analysis of saving by individuals in the United States made public today by the Securities and exchange Commission. This rate of saving was less than half that la the last quarter of 1946 and the lowest since 1940. The sharp decline in saving is pertly attributable to the drop in disposable income and to seasonal influences, but also reflects a decrease In the proportion ef income saved* Daring the first three months of 1947, far the first tome since before the war, individuals reduced their holdings of cash and deposits. This decline amounted to $1*8 billion* However, during the same quarter, they added $1*9 billion to their holdings of 0* S* Government securities* Individuals also added $900 million to their equity In government Insurance, $800 to their equity in private insurance, and $300 million to their investment In savings and lean associations* At the corns time they increased their mortgage indebtedness by $600 million and reduced their investment in securities other than U. S* Government by $100 million. There wae little change in eonsmmer indebtedness other than mortgagee. The « — • « i decrease of $1*8 billion in individuals* cash and deposits was more than accounted for by the $2*2 billion drop in checking accounts* There was also a $600 million reduction in individuals' holdings of currency. These declines may be compared with Increases of $900 ami $200 million, respectively, during the last quarter of 1946* Time and savings deposits, en the other hand, increasedfcgr$1*0 billion during the first quarter of yearr about $300 million less than in the previous quarter. There was a substantial net increase in individuals* holdings of U* S* savings bonds amounting to $900 This reflected net purchases et $700 million of Series F and G bonds and $200 million of Series A-E bonds* The rather large net increase in savings bonds was explained, for the most part, by individuals' purchases of the larger denomination bonds at the beginning of the year to make up their 1947 allotments. Individuals' equity in 0. S. Government securities other than savings bonds increased by $1*0 billion* This increase resulted Item repayments of bank leans of $700 million and $300 million of market purchases la excess of retirements* It should be pointed out that the $800 million of aimed forces leave bonds issued in the first quarter of 1947 to discharged veterans has been excluded fircm saving* Of the rnmmlnlnc components of individuals' saving during the first quarter of 1947, there was an increase of $100 million in individuals' investment in state and local government securities, while their Investment in corporate and other securities declined by $200 imnnttf The drep in individuals' investment in corporate securities is explained by ixetitutional purchases of corporate bonds Aram individuals more than offsetting individuals' net purchases of new stock issues* Mortgage debt increased by $600 million, somewhat less than in the previous quarter. Mainly as a reflection of seasonal factors, there was very little Increase In other consumer indebtedness in contrast to the record increase daring the last quarter of 1946. The above discussion of individuals' saving is based on data presented in the following table* l/ ~ in analysis individuals' saving includes unincorporated business saving of types specified in the attached table* Corporate and Government saving are not included. The change in individuals' equity in Government insurance is, however, considered as part of Individuals' saving. 2/ This does not reflect the increase in Inventories of unincorporated business (met of ~ the change in notes and accounts payable). Although the amount of this increase Is not known, it is believed to have been in the neighborhood of $450 million in the first quarter of 1947. Gross Saving ty Dadlfldtaals in the united States 1/ 1940 - 1947 (Billions of dollars) Gross 'Saving Litpid Saving 2/ 1940 1941 1942 1943 1944 1945 1946 15.3 4.0 24.4 10.6 38.2 29.0 46.1 38.3 48.1 40.1 47.0 37.7 31.9 15.1 Gross Saving by # P * 1. Currency and bank deposits • 2. Savings and loan associations • 3. Insurance and pension reserve;• a. Private insurance • b. Government insurance • o* Total • 4. Securities J/ a. U. S. Savings bonds • b. Other U. S. Government c. State and local governments de Corporate and other e. Total 5. Non-fam dsellings a. Purchases^/ • b. Change in debt + c. Saving (a. mines b.) • 6. Automobiles and other durable consumers1 goods j/ • 7. Liquidation of debt, not elsewhere classified 6/ - 1946 Jan.— ipr.>- July- Oct.— March JZSBSL Sept. Dsc. 9.2 5.0 8.7 4.0 8.4 3.3 5.7 1.4 3.0 • 5.0 •11.0 •16.0 •16.7 •19.4 •12.1 .2 • .4 • .3 • .6 • .8 • 1.1 • 1.1 • 1.5 • 4.6 • 3.5 • 2.4 • .2 • . 3 • .2 • .3 - 1.8 1.7 • 2.1 • 2.5 • 3.1 • 3.5 • 3.9 • 3.3 1.2 • 1.8 • 2.4 • 3.8 • 4*8 • 5.0 • 3 . 5 2.9 + 3.8 • 4.9 • 6.9 • 8.3 • 8.9 • 6.8 • .8 • .9 • .7 • .9 • .7 • .8 • .9 • 1.0 • 1.5 • 1.7 • 1.6 • 1.9 • .8 • .9 • 1.7 .9 .4 .1 .5 .2 • 2.8 • 8.0 • .8 • 1.9 - .2 - .2 - *5 • .3 + 2.9 •10.0 •11.1 • 2.7 • .2 - .4 •13.6 •11.8 • 3.6 — .2 - .7 •14.5 2.5 • 3.0 • 1.6 • 1.0 • .9 • .9 • .1 — .3 1.7 + 2.1 • 1.5 • 1.3 • .8 • 6.9 • .9 • 3.4 • .2 - .3 - . 3 - .7 — .1 • .7 • • .9 • el • 3.6 .2 • 2.9 .7 • .7 1.0 5.7 2.7 1947 Jan.March • .1 • • .3 - • 0 • .2 • .2 — • • .6 • .4 • • .1 • .2 .1 .2 - .2 " • .9 .2 + 1.0 2/ .1 • .1 .1 - .2 .1 0 .6 • • .3 • 7.6 • 6.8 • 7.2 • 8.3 •13.2 • 2.4 • 3.2 • 3.6 1.1 — • 2.9 • 1.0 - - .7 - 2.7 3 - • .9 • 1.1 • 1.0 .8 *• .9 • #8 .2 • .2 el • •10.8 .4 - .3 • .2 • • .3 .2 • .6 8.8 .6 • .7 - • 4.0 • 1.8 • .8 • #6 • .2 • .5 - 1.2 3.5 0 \f Includes unincorporated business saving of the types specified* Does not include corporate cr government saving, 2/ Gross saving excluding purchases of homes as sell as of automobiles and other durable consumers• goods. 2/ Does not include net purchases by brokers and dealers cr by other individuals financed by bank loans. IjJ New construction of one*- to four-family non—farm homes less net acquisition of properties by non-individuals. Purchases. Based on Department of Commerce data. The figures shown above include all new passenger cars sold in the United States. 6/ Largely attributable to purchases of automobiles and other durable consumers' goods, although including some debt arising from purchases of consumption goods. The other segments of individuals1 debt have been allocated to the assets to #±ch they pertain, viz., saving in savings and loan associations, insurance, securities and homes. 2/ Doss not include armed forces leave bonds amounting to $800 million. Notes Figures are rounded and will not necessarily add to totals. The foregoing data have been compiled by the Commission from many different sources. Because of the nature of the figures, current date are necessarily estimates and, therefore, are subject to revision.
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