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For Release in MORNING Newspapers of Monday, June 27, 1949. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. STATISTICAL SERIES Release No# 871 VOLUME AND COMPOSITION OF INDIVIDUALS' SAVING, JAN.-LARCH 1949 Individuals saved about $600 million in liquid form during the first quarter of 1949, according to the quarterly estimates of liquid saving made public today by the Securities and Exchange Commission. 1/ This increase in individuals' holdings of liquid assets may be compared with a reduction of about #600 million in the corresponding quarter of 1948. In the fourth quarter of 1948 individuals added $1.9 billion to their liquid assets. Liquid saving comprises saving in the form of currency and bank deposits, in savings and loan associations, insurance and pension reserves, securities, and repayment of mortgage debt and other consumer debt. Saving in non-liquid lorms, such as the purchase of new homes and new physical investment and inventory expansion by individuals, added substantially to individuals' assets i n t n e iirst quarter of 1949, but it is estimated that saving in these forms aid not equal that in tne previous quarter» As in the first quarter of 1948 individuals' holdings of currency and bank deposits fell off in the first quarter of 1949. This decline, or negative saving, amounted to $3.7 billion. All other components making up the total showed some positive saving except for mortgage debt. Individuals' e f ^ 7 ^ 8 e C a r , l t ^ S j n c r e a S 3 d 52.1 billion, in savings and loan associations *400 million, in insurance ana pension reserves $1.4 billion, and consumer ced by years* 85 r billion, reversing tne trend of the last several The $3.8 billion drop in individuals' holdings of currency and bank deposits clurint, the lirst quarter of 1949 was the result of a decline of billion in demand deposits and a decline of £900 million in currency, o n s e t in part by an increase of $400 million in time and savings deposits. Making up the #2.1 oillion increase in individuals' holdings of securities were zOO million in U.S. savings bonds, $600 million in other U.S. ^ r ^ M ? C U r l t l e S ' < " i00 1 B l m ° n i n state and local government securities, and #400 million in corporate and other securities. The *700 million increase in u.s. saving oonus in tne first quarter followed the pattern of the previous two years, with individuals coming in at tne beginning of the year to purchase their annual allotments. Most of the increase was in corporate bonds during the iirst quarter amounted to about $800 million, anout $600 million was purchased by institutions, mainly insurance companies. ° f . t h e «°re significant developments in the composition of indisaving in the first three months of this year was the $1.0 billion EEE Is , t.ha t! ;t remainlng components of individuals' saving during the first quarter i. b,,.d d.t. W „ U d i. Saving by Individuals in the United States 1/ 1940 - 1949 (Billions of dollars) 1948 July- • Oct.Apr.Dec. Sept. June 1949 Jan.— March Type of Saving 1940 1941 1942 1943 1944 1945 1946 1947 1948 Jan.— 'larch 1. Currency and bank deposits • 2.9 + 4.8 +11.0 +16.2 +17.5 +19.1 +10.6 + 2.9 — 1.2 * 4.2 + 0.2 • 1.6 • 1.2 - 3.7 2. Savings and loan associations + 0.2 + 0.4 + 0.3 + 0.6 + 0.8 + 1.1 + 1.2 + 1.2 + 1.2 + 0.3 • 0.3 + 0.2 + 0.4 + 0.4 3. Insurance and pension reserves a. Private insurance b, Government insurance + 3.1 + 1,8 + 1.3 + 4.0 + 2.1 + 1.9 + 5.0 + 2.5 + 2.5 + 6.8 + 2.8 + 3.9 + 8.2 + 3.2 + 5.0 + 8.6 + 3.5 + 5.1 + 7.0 + 3.4 + 3.5 + 7.1 + 3.7 + 3.4 + 6.9 + 3.5 + 3.4 + 1.6 + 0.9 + 0.7 + 1.8 + 0.9 + 0.9 + 1.6 + 0.8 + 0.9 + 1.9 + 1.0 + 0.9 • 1.4 + 0.9 + 0.5 4. Securities 2/ a. U.S. savings oonds b. Other U.S. Government 2/ c. State and local government d. Corporate and other • - + + + - 2.9 2.8 0.7 0.3 0.3 +10.4 * 8.0 + 2.4 - 0.2 + 0.2 +13.9 +11.1 + 3.0 - 0.1 - 0.2 +15.1 +11.8 + 3.9 - 0.1 - 0.5 +10.0 + 6.9 + 3.6 - 0.2 - 0.3 + + — + + 3.9 + 4.1 *- 1.8 + 2.1 + 0.7 - 1.1 + 0.4 + 1.2 + 1.0 + 1.9 + + + + + + + — + + • * — + • + + • + + + + + • 5* Liquidation of mortgage debt ij - 0.8 — 0.9 - 0.1 + 0.4 + 0.1 - 0.2 - 3.2 - 4.1 — 4.1 - 0.9 - 1.2 - 1.1 - 1.0 - 0.5 6. Liquidation of debt not elsewhere classified 5/ — 1.2 — 1.0 + 3.3 + 1.3 - 0.2 — 0.8 — 3.3 - 3.3 - 2.5 — 0.1 - 0.8 - 0.5 — 1.1 + 1.0 7. Total Liquid Saving + 4.3 +10.2 +29.8 +39.1 +41.6 +37.7 +12.9 + 7.7 + 4.5 — 0.6 + 0.9 + 2.4 + 1.9 + 0.6 8. Nonfarm dwellings 6/ + 3.1 + 3.6 + 1.8 + 1.1 + 1.0 + 1.1 + 3.9 + 5.8 + 7.7 + 1.5 • 1.9 2.3 + 2.1 * 1.5 9. Other durable consumers' goods 7/ + 7.9 + 9.7 + 6.8 + 6.5 + 6.9 + 8.3 +16.2 +21.0 +22.7 + 4.9 + 5.5 + 5.6 + 6.7 • 4.9 +15.2 +23.5 +38.5 +46.7 +49.5 +47.0 +33.0 +34.5 +34.9 + 5.7 + 8.2 +10.3 +10.6 + 7.0 10. Total Gross Saving (7+8+9) (*) 0.9 0.3 0.5 0.1 0.7 0.9 0.4 0.4 0.6 2.7 0.8 0.7 0.5 0.8 0.4 0,2 0.6 0.2 0.6 0.6 0.8 0.6 0.1 0.3 0.4 0.3 0.7 0.4 0.4 2.1 0.7 0.6 0.4 0.4 1/ Includes unincorporated business saving of the types specified, foes not include corporate or government saving. Considerable revisions have been made in some of the series. 2/ Does not include net purchases by brokers and dealers or other individuals financed by bank loans. 2/ Includes Armed Forces Leave bonds. 4/ Mortgage aebt to institutions on one—to—four family nonfarm dwellings* 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 individuals* debt have been allocated to the assets to which they pertain, viz., saving in savings and loan associations, insurance and securities. 6/ Construction of one-to-four family n on fan:, dwellings less net acquisition of properties oy non-individuals. iJgo includes a small amount of construction by nonprofit institutions. 7/ Consumer expenditures on durable gooos as estimated by the Department of Commerce. .nOTE: Figures are rounded and vill not necessarily add to totals. Asterisk (*) indicates less than :„50 million. The foregoing data have been compiled by the Commission from many different sources. Because of the nature of the figures, cundent data are neccsr^rily estimates and, therefore, are subject to revision.
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