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For Release In MORNING Newspapers of Tuesday, April 4, 1950
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C.
STATISTICAL SERIES
Release No. 925
VOLUME AND COMPOSITION OF INDIVIDUALS' SAVING IN 1949
During the year 1949 individuals in the United States saved $4.3
billion in liquid form, according to estimates made public today by the
Securities and Exchange Commission, j/ This rate of liquid saving was
about the same as in the preceding year and approximated the 1940 level.
As a percentage of income after taxes, this rate of liquid saving was
much less in 1949 than in 1940. However, saving in non-liquid forms,
such as the purchase of homes, was much higher in 1949 and the total of
all forms of saving represented about the same proportion of Income in
both years.
Liquid saving of individuals consists of saving in the form of
currency and bank deposits, equity in savings and loan associations, insurance and pension reserves, securities, and reduction of mortgage debt
and other consumer debt.
At the end of 1949 cash and bank deposits owned by individuals
amounted to about $128 billion, $57 billion in the form of checking accounts, $48 billion in time and savings deposits, and $23 billion in
currency. U. S. government securities held by individuals amounted to
almost $71 billion, over $35 billion in Series A-E savings bonds, over
$14 billion in Series F and G savings bonds, and $21 billion in other
U. S. government securities. 2/ Equity in private insurance amounted to
about $58 billion at the end of 1949, while government insurance and pension funds aggregated about $38 billion. Equity in savings and loan
associations at the year-end was over $12 billion. On the other side of
the balance sheet individuals owed $28 billion to financial institutions
on home mortgages and $16 billion on installment and other consumer debt.
Saving during the year 1949 fell into about the same pattern as in
1948. Insurance and pension reserves, again the largest component, increased by $6.0 billion, holdings of U. S. government securities increased
$1.6 billion, other security holdings increased $2.2 billion, and equity
l/ In this analysis individuals1 saving
saving of the types specified in the
government saving are not included.
in government insurance is, however,
saving.
includes unincorporated business
attached table. Corporate and
The change in individuals1 equity
considered as part of individuals1
2/ Loans by banks to individuals (including brokers) for the purchasing
or carrying of these government securities amounted to about $1.1
billion at the end of 1949.
-
2
-
S - 925
in savings and loan associations increased $1.4 billion. Mortgage debt
rose by $3.5 billion and other consumer indebtedness rose by $2.3
billion^ and there was a $1.0 billion decline i*t currency
bank
deposits.
Saving in the form of securities was somewhat less in 1949 than in
1948, $3.8 billion as against $4.0 billion. Holdings of U. S. savings
bonds increased $1.5 billion, other U. S. government securities increased
$100 million, state and local government securities $800 million.
Individuals' holdings of corporate and other securities increased
about $1.4 billion in 1949, about equally divided between stocks and
bonds. Net new issues of such bonds in 1949 amounted to about $3.8
billion, of which institutions absorbed about $3.1 billion. While net
new bond issues were less in 1949 than in the preceding year, smaller institutional purchases resulted in about the same increase in individuals1
equity in both years. Although net issues of corporate stocks were some—
ishat larger in 1949 than in 1948, individuals' saving in this form was
less in 1949, largely reflecting individuals' borrowings.
Individuals' saving in the form of equity in private insurance amounted
to the record total of $3.8 billion in 1949, $300 million more than in 1948.
Equity in government insurance and pension reserves, however, increased only
$2.2 billion during th<J year, $1.2 billion less than in the preceding year.
This lower rate was the result of net withdrawals from the unemployment
trust fund during the year to pay increased benefits.
During 1949, individuals' holdings of cash and bank deposits again
declined. Individuals reduced their checking accounts by about $1.2 billion
compared with a reduction of $1.7 billion in 1948, while currency holdings
declined $800 million compared with $400 million the preceding year. Time
and savings deposits, on the other hand, continued to grow, the increase in
1949 amounting to #1.0 billion compared with $800 million in 1948.
Mortgage debt on homes in 1949 showed an increase of $3.5 billion as
compared with the 1948 increase of $4.1 billion. Installment and other
consumer indebtedness rose $2.3 billion, a slightly lower rate than in 1948.
During the fourth quarter of 1949 individuals' liquid saving amounted
to about $800 million, a lower rate than in the third quarter. Turing the
last quarter individuals added $1.1 billion to their holdings of cash and
deposits, $1.8 billion to their equity in insurance and pension reserves,
1500 million to their investment in securities and $400 million to their
equity in savings and loan associations. Individuals' indebtedness arising
from the purchase of consumer goods increased $1.9 billion during the
quarter, while mortgage debt rose by $1.1 billion. The $500 million increase in security investments comprised net purchases of $200 million of
U. S. savings bonds and $300 million of corporate and other securities.
Saving by Individuals in the United States 1/
1940 - 1949
(Billions of dollars)
I
I
1949
1948
Oct.Dec*
Jan,March
192
Apr*JulyJune
Sept*
Oct*Dec* '
- 1.3
- 1*0
+ 0.8
— 3.6
— 0*3
+ 1*8
+ 1.1
• 1.2
+ 1*2
+ 1.4
+ 0.4
+ 0*4
+ 0*4
+ 0*2
+ 0*4
+ 7*0
• 3.4
+ 3.5
+ 7.1
+ 3.7
• 3.4
• 6,8
+ 3.5
+ 3.4
+ 6*0
+ 3.8
+ 2,2
+ 1.8
• 1.0
• 0,8
+ 1.3
+ 0.9
• 0*4
+ 1.4
+ 0.9
• 0*5
+ 1.5
• 0,8
+ 0*7
+ 1.8
+ 1.2
+ 0*6
•
+
—
—
+
+
+
+
+
+
+
+
•
+
+
•
+
•
•
+
+
—
•
+
+
•
+
+
+
•
•
+
+
+
+
•
(*)
0*3
0*5
0*2
0*1
+ 0*5
+ 0.2
- 0*1
(»)
• 0.3
- 0*9
— 1*0
- 1.1
• 1*0
- 0,7
— 0*6
— 1.9
+ li5
+ 0*8
+ 0.9
+ 1*8
• 0*8
• 8.8
+ 2,4
+ 1.7
+ 1.9
+ 2*4
+ a*7
+23*5
+24*4
+ 6,7
• 5.0
+ 5*8
+ 6*3
+ 7*2
+36*9
+37.5
+10*6
+ 7.6
+ 8*6
+10*6
+10,7
Type of Saving
1940
1941
1942
1943
1944
1945
1946
1947
1948
1* Currency and bank deposits
+ 2.9
+ 4.8
•11.0
+16,2
+17.5
+19.1
+10*6
• 2.9
2, Savings and loan associations
• 0.2 • 0.4
• 0*3
• 0.6
+ 0.8
+ 1.1
+ 1.2
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
4* Securities 2/
a* U,S* savings bonds
b. Other U.S. Government 2/
c* State and local government
d. Corporate aud 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
+
+
+
—
5. Liquidation of mortgage debt ij
— 0.8
— 0.9
— 0.1
+ 0*4
+ 0.1
— 0*2
- 3.2
- 4.1
— 4.1
- 3.5
- 1,0
- 0*6
6, Liquidation of debt not elsewhere classified £/
- 1*2
- 1,0
+ 3.3
+ 1.3
- 0,2
- 0*8
- 3.3
- 3.3
- 2,5
- 2,3
- 1*1
7, Total Liquid Saving
+ 4*3
+10,2
+29.8
+39.1
+41*6
+37.6
+12*9
+ 7.7
+ 4.3
+ 4.3
8* Nonfarm dwellings 6/
^ 3.5
+ 4.1
+ 2.2
+ 1.3
+ 1.2
+ 1.4
+ 4.5
• 6*8
+ 9.1
9* Other durable consumers* goods 7/
+ 7.9
+ 9.7
• 7.1
+ 6*8
+ 7*1
• 8*5
+16*5
+22.0
+15.6
•24.0
+39.1
+47*2
+49.9
+47*4
+33*9
+36,4
10* Total Gross Saving (7+8+9)
(*)
0.9
0,3
0*5
0.1
9.9
6.9
3.6
0*2
0*4
0.7
0,9
0,4
0,4
0*6
3.8
1,8
0,7
0,4
1*0
4.0
2,1
1,0
1,0
1.8
3.8
1.5
0.1
0,8
1*4
1/ Includes unincorporated business saving of the types specified; does not include corporate or government saving*
some of the series*
0,5
0,3
0*6
0*4
0,4
2*2
0*7
0.8
0*3
0.4
1*0
0*3
0*1
0*3
0*5
Considerable revisions have beerr
in
2/ After deducting change in bank loans made for the purpose of purchasing or carrying securities,
2/ Includes Armed Forces Leave bonds.
{J Mortgage debt to institutions on one-to-four family nonfarm dwellings,
5/ Largely attributable to purchases of automobiles and other durable consumers1 goods, although including some debt arising from purchases of consumption goods*
The other segments of individuals1 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 nonfarm dwellings less net acquisition of properties by non-individuals; also includes a a w n
nonprofit institutions*
amount of construction of
2/ Consumer expenditures on durable goods as estimated by the Department of Commerce,
NOTE:
Figures are rounded and will 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, current data are necessarily estimates and, therefore, are subject
to revision*
01
1
S
vt
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COMPONENTS
OF INDIVIDUALS
1
S - 925
LIQUID SAVING
1940-1949
DOLLARS
BILLIONS
DOLLARS
BILLIONS
OTHER LIQUID
SAVING 1/
U.S. GOVERNMENT
SECURITIES
CURRENCY AND
BANK DEPOSITS
1940
-
1941
1942
1943
1944
1945
1946
1947
1948
1949
INCLUDES SAVING IN SAVINGS AND LOAN ASSOCIATIONS? PRIVATE AND GOVERNMENT INSURANCE; STATE, LOCAL AND CORPORATE SECURITIES:
AND LIQUIDATION OP M O R T G A G E DEBT AND DEBT NOT ELSEWHERE CLASSIFIED.
OS-3131
@FedFRASER