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For Release in MORNING Newspapers of Thursday, April 22, 195>U
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C.
STATISTICAL SERIES
Release No. 1227
VOLUME AMD COMPOSITION OF INDIVIDUALS' SAVING IN 19531/
During the year 1953 individuals in the United States saved $13*6 billion in
liquid form according to estimates made public today by the Securities and Exchange
Commission,, This rate of liquid saving was almost the same as in 195)2, the highest
since 19U6.
While the total was unchanged from 1952, there were several differences in tne
composition of liquid saving, the most important being a sharp rise in securities
investments, a reduction in individuals' checking accounts, and lower saving in the
form of Government insurance and pension reserves. Despite variations in some of the
components, however, the underlying trend toward larger saving in the more permanent
type investments continued in 1953o Both individuals1 ownership of savings and loan
shares and equity in private life insurance rose by a record amount and about the same
large amount as in 1952 was added to time and savings deposits in banks. The liquid
saving of individuals during the years 19U9 through 1953 is shown in Table 1.
At the end of 1953 individuals had accumulated a total of $379 billion of liquid
assets excluding corporate securities, Offsetting these assets, individuals had debts
totalling $80 billion. The composition of these holdings is shown for the period 1929
to 1953 in Table 2.
During 1953 individuals made net purchases of securities totalling $6 0 5 billion,
the largest amount in the post-war period,, This total included $3oU billion of corporate bonds and stocks, $1*8 billion of state and local government securities and
$1<>3 billion of U, S. Government issues. Of the $3<.1+ billion of corporate securities
individuals purchased $101| billion of common and preferred stock and $2.0 billion of
bonds. These compare with net investments of $2.1 billion in stock and $1.6 billion
in bonds in 1952. Corporate pension funds are included with individuals and it is
estimated that these investments accounted for approximately one-third of individuals1
net purchases of corporate securities in 1953«
State and local investments by individuals were double the 1952 investments,
these large purchases reflecting the substantial volume of tax-exempt offerings in
the past year. Investments in U. S. Government issues included $300 million of U. S.
Savings Bonds and $1.0 billion of other U. S. Government issues. ' While the latter
investments were increased on balance over the year, it should be noted that a considerable shifting occurred in individuals! holdings during the year, the first two
quarters showing a substantial increase partly offset by a sharp decline in the fourth
quarter.
l/ Individuals1 saving, in addition to personal holdings> covers saving of unincorporated business, trust and pension funds and non-profit institutions in the forms
specified. Individuals! liquid saving comprises saving in the form of currency
and bank deposits, equity in savings and loan associations, private and government
insurance, securities, and repayment of mortgage debt and other consumer debt.
Individuals increased their holdings of currency and bank deposits by $U#U billion
in 1953 compared with $7.1 billion in 1952e Practically all of the increase in 1953
was accounted for by time and savings deposits which rose by $Uo2 billion, the same as
in the preceding year, while currency holdings increased $600 million. Demand deposits
were reduced by $1+00 million as against substantial increases in the preceding years.
In addition to the considerable growth in savings accounts in banks, individuals purchased a record $3.7 billion of shares in savings and loan associations.
In 1953, individuals saved $8.3 billion in the form of insurance, including a
record $5*1 billion in private insurance. Equity in Government insurance and pension
reserves (such as Social Security funds) rose by $3®2 billion as against $U«U billion
in 1952 o The lower savings in this form primarily reflected an increase in the number
of persons receiving benefit payments in 1953o
Mortgage debt of individuals grew by $6„5 billion in 1953, compared with $6.0 billion in the preceding year. Other consumer indebtedness, incurred mainly for the purchase of automobiles, increased by $2*8 billion in 1953, $1®0 billion less than the
1952 credit expansion.
In addition to the concept of liquid saving discussed above there are other concepts of individuals1 saving with different degrees of coverage currently in use. The
series with the most complete coverage, the personal saving estimates of the Department
of Commerce, is derived as the difference between personal income and expenditures.
Conceptually, Commerce saving includes the following items not included with S.E.C.
liquid saving: Housing net of depreciation, unincorporated business and farm items
such as net plant and equipment, changes in net receivables and changes in inventories •
Government insurance is excluded from Commerce saving. 2/
A
of the
cluded
tions,
more restricted concept of individuals1 saving is the selected items series
Federal Home Loan Bank Board. This series covers the following components inin S.E.C. liquid saving: Time and savings deposits, savings and loan associaprivate life insurance, and U. S. savings bonds.
2/ For a complete reconciliation see Table 6, p. lU, Survey of Current Business,
July 1953.
LIQUID
(BILLIONS
OF
ASSETS
HELD
BY
INDIVIDUALS,
1929 -
1953
BILLIONS
DOLLARS)
OF
DOLLARS
400
400
300
300
TOTAL LIQUID ASSETS
200
200
NET LIQUID ASSETS
100
100
1928
30
* DOES NOT I N C L U D E
1952
CORPORATE
SECURITIES
.
DS-3546
Table 1
Saving by Individuals in the United States 5/
19l*9 - 1953
(Billions of dollars)
1953
Type of Saving
191*9
1950
1951
1952
1.
Currency and bank deposits
a. Currency
b. Demand deposits
c. Time and savings deposits
-1.5
-0.8
-1.5
0.9
3.6
-0.1
3.2
0.1;
5.6
0.8
2.9
1.9
7.1
1.1
1.7
h.2
2.
Savings and loan associations
1.5
1.5
2.1
3.
Insurance
a. Private
b. Government
6.1
5.0
3.9
1.1
8.3
1*.0
1*.2
2.0
0.6
—0.6
0.7
2.8
-0.1&
3.7
2.3
Jan.Mar.
Apr.June
JulySept.
0.6
1.8
—0 .u
-1.3
-0.3
-2.0
1.1
-1.0
1.1*
0.9
0.9
1.8
0.9
3.1
3.7
1.0
1.0
0.6
1.1
9.2
U.9
8.3
5.1
3.2
2.1
1.2
2.1
2.1
1.2
0.9
2.0
1.5
Oj*
k.2
2.1*
0.1*
3.2
0.3
-0.7
0.9
3.7
6.5
0.3
1.8
3.1*
0.2
0.6
l*.l*
1953
l*.l*
0.6
1*.2
J*. Securities 2/
a. U.S. savings bonds
b. Other U. S. Government
c. State and local government
d. Corporate and other
-0.1
5.
Liquidation of mortgage debt 2/
-3.9
-7.2
-6.5
-6.0
-6.5
—1.1*
6.
Liquidation of debt not elsewhere
classified {j/
-2.1*
-3*2
-0.5
-3.8
—2.8
2.9
1.8
11.6
13.7
8.1
12.6
H.5
Other durable consumers * goods
23.8
29.2
Total Gross Saving
3U.8
1*3.6
7.
Total Liquid Saving
8,. Nonf arm dwellings 5/
9.
30.
3.0
1.5
0.6
1.0
1.1*
l/ Includes unincorporated business saving of the types specified.
0.2
1.1
1.0
0.9
1.1
3.3
0.6
0.7
0.6
0.1
-1.0
0.6
0.9
-1.8
-1.7
-1.6
-0.3
-1.2
-0.5
—0.8
13.6
2.6
3.1
3.1*
1*.6
11.6
12.2
2.5
3.2
3.1*
3.2
27.3
26.7
30.1
6.7
7.5
7.1*
8 J*
50.1*
52.0
56.0
11.8
13.8
ll*.2
16.1
-0.1*
0.1*
•
1.0
1.2
2.1*
-0.3
0.9
(*)
Oct.Dec.
0.6
1.2
0.1
-0.1
0.1*
Estimates after 19h9 have been revised.
2/ After deducting change in bank loans made for the purpose of purchasing or carrying securities.
3/ Mortgage debt to institutions on one- to four-family nonfarm dwellings,
k/ 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
insurance and securities.
5/ Construction of one- to four-family nonf arm dwellings less net acquisition of properties by non-individuals 3 also includes a small
amount of construction of nonprofit institutions.
NOTE:
Figures are rounded and will not necessarily add to totals. Asterisk (*) indicates less than $50 million. Ths 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.
Table 2
Liquid Assets Held by Individuals in the United Statesi/
Year end, 192? - 1953
(Billions of dollars)
1929
1930
1935
191*0
191*5
191*6
191*7
191*8
191*9
1950
1951
1952
1953
Liquid Assets
1,
Currency and bank deposits
a. Currency
b. Demand deposits
c. Time and savings deposits
37,5
2.9
8.7
25.9
37.6
2.9
8.1
26.6
36.6
U.5
9.0
23.1
1*8.3
6.5
15.7
26.2
117.2
25.0
1*5.0
1*7.2
127.8
25.1
5o.i
52.6
129.8
2b .7
50.1*
51*.8
127.9
21*.2
1*8.2
55.6
126.5
23.1*
1*6.6
56.1*
130.1
23.1*
1*9.9
56.9
135.7
2l*.l
52.7
58.8
11*2.7
25.2
51*.1*
63.1
11*7.2
25.8
51*.1
67.3
2.
Savings and loan associations
6.2
6.3
1*. 3
It .3
7.1
8.5
9.8
11.0
12.5
H+.O
16.1
19.1
22.8
3.
Insurance
a. Private
b. Government
17.3
15.6
1.7
13.5
16.6
1.9
22.3
20.6
1.7
36.0
28.6
7.3
69.1*
1*3.6
25.8
76.5
1*7.2
29.3
83.5
50.7
32.8
90.9
51*.5
36.1*
97.0
58.3
38.7
102.3
62.5
39.8
110.1*
66.1*
1*1*.0
119.6
71.1*
1*8.1*
128.1
76.1*
51.6
U.
Securities l/
a. U. S„ savings bonds
b„ Other U. S. Government
c. State and local government
llt.l
Huli
1*.2
9.9
3.8
10.7
16.1
0.1
6.6
9.1*
17.1
2.7
6.1*
8.0
70.1*
1*3.3
20.1
7.1
70.7
1*1*.2
19.6
6.9
73.1*
1*6.0
20.1
7.3
75.1
1*8.1
18.6
8.1*
77.1
1*9.6
18.5
9.0
77.8
50.2
17.9
9.7
77.1*
1*9.8
17.5
10.1
77.9
50.1
16.9
10.9
81.0
50 .U
17.9
12.7
Total liquid assets
75.1
76.8
79.2
105.7
261*.1*
283.5
296.1*
301*. 8
313.1
321*.1
339.6
359.6
379.1
Liabilities
5.
Mortgage debt
12.3 .
12.1*
10.9
12.1*
13.1
16.7
21.1
25.7
29.6
36.8
1*3.3
1*9.3
55.8
6.
Consumer debt
5.1*
1.8
3.6
6.5
3.9
6.2
8.9
11.2.
13.6
16.8
17.1*
21.2
21*.1
17.7
17.2
ll*„5
18.9
17.0
22.9
30.1
37.0
1*3.2
53.6
60.7
70.6
79.9
57.it
59.6
61u7
86.8
21*7.1*
260.6
266.3
267.8
269.8
270.5
278.9
289.0
299,2
Total liabilities
7.
Individuals' net equity (liquid
assets less debt) 2/
1/ Does not include individuals1 holdings of corporate securities„
end of 1953.
Rough estimates indicate an order of magnitude of $200 billion at the
2/ The year to year changes in the above data are not exactly equivalent to liquid saving shown in Table 1 which includes investments in
~~ corporate securities, not included above, and also reflects adjustments in certain of the components in order to exclude revaluations
and capital gains and losses,
@FedFRASER