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MR. BRILL
SECURITIES AND EXCHANGE COMMISSION
Washington, D C.

STATISTICAL SERIES

release N O . _ j m

For Release

August 1, 1957

VOLUME AND COMPOSITION OF INDIVIDUALS1 SAVING, JAN.-MAR. 1957 1/
Individuals in the United States saved more in the first quarter of
1957 than in any quarter in the post-war period, according to a report released today by the Securities and Exchange Commission* Saving amounted
to $5,9 billion 2/, $2*1 billion more than in the preceding quarter and
$1*0 billion larger than in the first quarter of 1956.
During the first quarter individuals added substantial amounts to
their savings accounts in banks, purchased a large volume of U# S. Government bonds — other than Savings Bonds — and also invested considerably
more than in recent periods in corporate bonds and stocks. Saving in
other financial assets, such as insurance and pension reserves and share
accounts at savings and loan associations, were at the usual first-quarter
rate; however, larger net withdrawals were shown in demand deposits than in
the first quarter of 1956. Contributing to the greater saying in the first
quarter of this year was the lower rate of expansion of individuals' debts.
Individuals' saving in corporate and miscellaneous securities was at a
high level, amounting to $1.8 billion, and reflecting the record volume of
new securities floated during the first three months of the year. Saving
in this component compares with $900 million in the fourth quarter of 1956
and $700 million in the first quarter of last year. During the first quarter of this year, ownership of preferred and common stock was increased by
$800 million, including repayment of securities loans of $300 million.
These investments in equity securities were $200 million greater than in
either of the preceding two quarters and $300 million higher than in the
first quarter of 1956. Corporate, Federal agency and foreign bond investments totalled $1.0 million, compared with $200 million in the preceding
quarter and in the first quarter of 1956o The amount of net bond flotations
of U. S. corporations in the first quarter aggregated $1.8 billion, of which
$450 million were issues convertible into stocks. In addition, over
$500 million of foreign and Federal agency issues were marketed, bringing
total net new bond issues to almost $2.4 billion. This was double the
amount in the fourth quarter of 1956. Although institutional investors
increased their net purchases of such securities moderately, the excess
volume mainly was absorbed by individuals.
1/ Individuals1 saving, in addition to personal holdings, covers saving of
unincorporated business , trust funds, and non-profit institutions in
the forms specified.
2/ Represents change in net claims and includes individuals' saving in the
form of cash and deposits, savings and loan associations, and securities
as well as insurance and pension reserves, net of the increase in
individuals' debts.



-

2

-

S—1471

Individuals' holdings of U. So savings bonds declined sharply, by $600
million* However, their ownership of other Ue S. Government bonds increased
by $1.7 billion, about the same as in the first quarter of 1956, apparently
reflecting the usual large investment in the first part of the year by
personal trust funds and non-profit foundations. Net purchases of state
and local securities totalled $600 million, practically unchanged from the
preceding quarter and the first quarter of 1956.
Holdings of currency and bank deposits rose by $200 million during the
first quarter. Currency held by individuals was reduced by $600 million,
and demand deposits dropped by $1.5 billion. In contrast, time and savings
deposits grew by $2.2 billion, a record for the post-war period, probably in
response to higher-interest rates offered at most banks. Individuals also
added $1.0 billion to their savings and loan association accounts, about the
same as in the first quarter of 1956.
Individuals equity in private insurance and pension funds continued to
advance close to the 1956 quarterly rate, growing by $1.7 billion during the
first quarter. In contrast, saving in Government insurance of $400 million
was lower than in the similar period of last year, chiefly because of larger
benefit payments from the old-age and survivors1 insurance fund due to newly
extended coverage.
Mortgage debt of individuals rose by $2,0 billion during the first quarter, the smallest increase since the first quarter of 1954. The lower rate of
expansion in this component reflects the lower volume of residential construction and growing mortgage repayments. Consumer indebtedness decreased by
$900 million, including a net repayment of noninstaliment debt (principally
payments on charge accounts) of $700 million, and a decrease of $200 million
in installment debt. This was the first decrease in installment debt in any
quarter since the first quarter of 1954.
Besides the concept of saving presented here, there are other concepts
of individuals' 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 the S.E.C. gross saving: unincorporated business and
farm items such as net plant and equipment changes in net receivables and
changes in inventories. Government insurance and consumer durables are excluded from Commerce saving which, in addition, reflects depreciation on
homes. 3/
A more restricted concept of individuals1 saving is the selected item
series of the Home Loan Bank Board. This series covers the following components included in the S.E.C. saving: time and saving deposits, saving and
loan associations, private life insurance, and U. S. Saving Bonds.

3/ For a complete reconciliation, see Table 6, in the July 1957 issue of the
Survey of Current Business.



S-1471
Saving by Individuals in the United States ^
1954 - 1957
(Billions of dollars)

1956

r^*

V »
I
i%
t

1954

1955

1956

Jan.Mar.

Apr.June

JulySept.

Oct.Dec.

1.

5.8
- .3
1.4
4.7

4.6
.4
.6
3.5

4.5

.2
4.4

- .1
- .8
- .6
1.3

.2
.9
-1.9
1.2

1.6
.7
1.4
.9

2.9
.6
1.3
1.0

.2
- .6
-1.5
2.2

4.4

4.8

5.1

1.1

1.6

.7

1.7

1.0

- .7
.6
-1.7
.5
— .1
- .1
*

5.6
.3
1.8
1.4
2.1
1.8

7.2
- .1
1.8
1.9
3.5
1.7

i.o

3.4
.2
1.8
.7
.7
.2
.5

1.1
— .1
.1
.4
.7
.6
*

1.8
— .1
.5
.2
1.2
.6
.6

.8
— *1
- .6
.6
.9
.2
.6

3.5
- .6
1.7
.6
1.8
1.0
.8

Currency and deposits
a. Currency
b. Demand deposits
«/
c. Time and savings deposits-'

2.

Savings and loan associations

3.

Securities^/
a. U. S. Savings bonds
b. Other U. S. Government
c. State and local Government
d. Corporate and other
(1) Bonds and notes
(2) Preferred and common stock

X

Liquid saving (1+2+3)

9.5

14.9

16.8

4.4

2.9

4.0

5.4

4.8

5.

Private insurance and pension reserves
a. Insurance reserves
b. Insured pension reserves
c. Non-insured pension funds

7.3
4.2
1.2
1.9

7.6
4.2
1.3
2.1

7.7
4.3
1.2
2.2

1.8
1.0
.3
•o

1.8
1.0
.3
.6

2.0
1.2
.3
.6

2.0
1.2
.3
.6

1.7
.9
.3
.6

6.

Government insurance and pension
reserves Uj

2.6

3.1

3.7

.7

1.7

1.0

.4

.4

7.

Increase in individuals' debts
a. Mortgage debt 5/
b. Consumer indebtedness 6/

10.2
9.2
1.0

18.0
11.9
6.1

13.6
10.6
3.1

2.0
2.6
- .5

4.3
2.8
1.5

3.4
2.8
.6

4.0
2.5
1.5

1.0
2.0
- .9

8.

Change in net claims (4+5+6-7)

9.3

7.6

14.6

4.9

2.1

3.6

3.8

5.9

9.

Non-farm homes 7/

12.5

15.3

14.1

2.9

3.6

3.9

3.5

2.7

10.

Construction and equipment of
non-profit institutions

1.9

2.0

2.1

.5

.5

.6

.6

.5

11.

Consumer durable goods

29.4

35.7

34,0

7.8

8.5

7.9

9.7

8.1

12.

Total gross saving (8+9+10+11)

53.0

60.6

64,7

16.1

14.8

16.1

17.7

17.2

13.

Change in net claims excluding
Government insurance (8-6)

6.7

4.5

10.8

4.2

.5

2.7

3.5

5.5

50.3

57.5

61.0

15.4

13.1

15.1

17.3

16.8

14.

*

j -«

15 H
y«

Jan.Mar.

4.

*

u*

A

1957

Type of Saving

Total gross saving excluding
Government insurance (12-6)

* Indicates less than $50 million.
1/ Includes unincorporated business saving of the types specified. Figures are rounded and will not
necessarily add to totals. The f ore going 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.
2/ Includes shares and deposits in credit unions and Postal Savings System.
hJ After deducting change in bank loans made for the purpose of purchasing or carrying securities.
4/ Includes Social Security funds and state and local retirement systems.
$J. Mortgage debt to institutions on one-to-four-family nonfarm dwellings.
V Consumer debt owed to corporations, largely attributable to purchases of automobiles and other durable
consumer 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
insurance and securities.
1/ Construction of one-to four-family nonfarm dwellings less net acquisitions of properties by
non-individuals.