View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

For Release i n MORNING Newspaper* of Thursday, December 29, 1949
SECURITIES AND EXCHANGE COMMISSION
Washington, D*C*
STATISTICAL SERIES
Release No* 907
VOLUME AND COMPOSITION OF INDIVIDUALS* SAVING, JULY-SEPTEMBER 1949
During the t h i r d quarter of 1949 individuals saved $1*7 b i l l i o n i n l i q u i d form,
according t o the quarterly estimates of individuals 1 saving made public today by the
S e c u r i t i e s and Exchange Commission* 1 / This r a t e of l i q u i d saving was higher than in
the preceding quarter b r t considerably below the $2*8 b i l l i o n saved in the t h i r d
quarter of l a s t year.
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,
s e c u r i t i e s , and reduction of mortgage debt and other consumer debt*
Individuals added $1*7 b i l l i o n to t h e i r holdings of currency and bank deposits
in the t h i r d quarter® Individuals* equity in insurance and pension reserves increased
$1*5 b i l l i o n , and in savings and loan associations $200 million* There was a net decrease of $100 million in t h e i r holdings of s e c u r i t i e s * Mortgage debt increased
$1*0 b i l l i o n and consumer debt increased $600 million*
Individuals f a i l e d to. add to t h e i r holdings of corporate s e c u r i t i e s during the
three months July through September i n contrast t o recent quarters* They reduced
t h e i r holdings of corporate bonds by almost $300 million, while they increased t h e i r
holdings of stocks by more than $200 million* I n s t i t u t i o n s , mainly insurance companies,
made net purchases of $900 million of corporate bonds, absorbing a l l of the $400 million
of net new bond issues* The g r e a t e r part of net new issues of common and preferred stock
was taken by individuals* During t h i s quarter individuals repaid approximately $200 million
of t h e i r borrowings f o r purchasing and carrying corporate s e c u r i t i e s *
During the t h i r d quarter of 1949 U. S. saving* bonds held by individuals increased
by almost $300 million* Holdings of other U. S. government s e c u r i t i e s showed a decline
amounting t o about $500 m i l l i o n , compared t o a $100 million drop in the preceding quarter*
Holdings of s t a t e and l o c a l government s e c u r i t i e s increased somewhat
i n the t h i r d quarter
but l e s s than i n the previous quarter* The decline in individuals 1 holdings of U® S*
government s e c u r i t i e s other than savings bonds and the lower r a t e of increase in s t a t e
and l o c a l government s e c u r i t i e s mainly r e f l e c t e d larger accumulations by i n s t i t u t i o n s
of such s e c u r i t i e s in t h i s quarter* I n s t i t u t i o n s increased t h e i r holdings of U* S*
government s e c u r i t i e s by about $4*2 b i l l i o n and of s t a t e and l o c a l government s e c u r i t i e s
by about $600 million*
The $1*7 b i l l i o n increase i n currency and bank deposits was the r e s u l t of an i n crease of about $1*8 b i l l i o n in demand deposits while currency declined $100 million*
Time and savings deposits showed l i t t l e change* In the preceding quarter currency and
bank deposits had declined $300 million*
Additions t o insurance and pension reserves i n the t h i r d quarter were a t a a l i g h t l y
higher r a t e than i n the preceding quarter, an increase i n the r a t e of additions t o government insurance funds more than o f f s e t t i n g a s l i g h t decrease i n the rate of additions
t o individuals * equity i n private l i f e insurance*
Mortgage debt of individuals continued t o increase, the t h i r d quarter r a t e showing
some increase over the second quarter* Other consumer debt of individuals also continued
t o increase i n the t h i r d q u a r t e r , but a t a somewhat lower r a t e than in the second quarter*
1 / In t h i s analysis individuals' saving includes unincorporated business saving of the
~ types s p e c i f i e d i n the attached table* Corporate and government saving are not i n cluded* The change i n individuals 1 equity in government insurance i s , however, considered as p a r t of individuals 1 saving*




Saving by I n d i v i d u a l s i n the United S t a t e s 1 /
1940 - 1949
( B i l l i o n s of d o l l a r s )

Type of Saving

1940

1941

1942

1943

,1* Currency and bank deposits

+ 2.9

+ 4.8

+11.0

2* Savings and loan a s s o c i a t i o n s

+ 0.2

+ 0.4

3* Insurance and pension reserves
a* Private insurance
b« Government insurance

+ 3.1
• 1.8
+ 1.3

4. Securities 2/
a* U.S. savings bonds
b» Other U.S. Government 3 /
c . State and l o c a l government
d* Corporate and other

JulySept.

1948

Oct.—
Dec.

1949
Apr*June

Jan.March

JulySept.

1944

1945

1946

1947

1948

+16*2

+17.5

+19,1

+10*6

+ 2.9

- 1*3

+ 1.9

• 0.8

— 3.6

- 0*3

• 1*7

+ 0.3

+ 0*6

• 0*8

+ 1*1

+ 1*2

+ 1.2

+ 1.2

+ 0*2

+ 0.4

• 0.4

• 0.4

+ 0.2

+ 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*8
+ 3.5
+ 3.4

+ 1.6
+ 0*7
• 0*9

+ 1*8
+ 1*0
+ 0.8

• 1.3
+ 0.9
• 0*4

+ 1.4
+ 0.9
• 0.5

• 1*5
+ 0*8
• 0.7

(*)
+ 0.9
— 0.3
— 0.5
— 0.1

+
•
•
-

+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

+ 9.9
• 6.9
+ 3.6
- 0.2
— 0.4

+ 0.7 •
+ 0.9
+
— 0*4 +
— 0.4 +
• 0.6 •

+ 4.0
+ 2*1
— 1*0
+ 1.0
+ 1*8

•
•
+
+

+ 0*5
+ 0.3
— 0.6
+ 0.4
+ 0*4

+
+
+
+
•

•
+
+
•

1.0
0.3
0*1
0.3
0.5

— 0.1
• 0.3
- 0.5
• 0.2

% Liquidation of mortgage debt ij

- 0.8

- 0.9

- 0*1

+ 0.4

+ 0.1

— 0*2

« 3.2

- 4.1

- 4.1

- 1*1

- 1.0

— 0.6

- 0*9

— 1*0

6* Liquidation of debt not e l s e where c l a s s i f i e d 5 /

— 1*2

— 1*0

+ 3*3

+ 1*3

- 0.2

- 0*8

- 3.3

- 3.3

- 2*5

- 0*5

- 1.1

+ 1*0

~ 0*7

— 0.6

7* Total Liquid Saving

+ 4.3

•10*2

+#*8

+39*1

+41.6

+37*6

+12*9

+ 7.7

• 4.3

+ 2.8

+ 1.5

+ 0*8

+ 0.9

• 1.7

8 . Nonfara dwellings 6 /

+ 3.5

+ 4*1

+ 2.2

+ 1*3

+ 1.2

+ 1*4

+ 4.5

• 6.8

+ 9.1

+ 2*7

• 2*4

• 1.7

• 1*9

• 2.4

9 . Other durable consumers* goods 2 / + 7*9

+ 9.7

+ 7*1

+ 6.8

+ 7.1

+ 8*5

+16.5

+22*0

+23.5

• 6*0

• 6*7

+ 5.1

• 6.0

• 6.5

+24*0

+39*1

+47*2

+49*9

+47*4

+33.9

+36*4

+36*9

+11.5

+10.6

• 7.6

+ 8.8

+10.6

1 0 . Total Gross Saving (7+8*9)

+15*6

2.9
2.8
0.7
0.3
0.3

3.8
1.8
0*7
0.4
1.0

0.7
0.8
0.5
0*1
0*3

1 / Includes unincorporated business saving of the types s p e c i f i e d ; does not include corporate or government saving.
made i n some of the series#

2.2
0*7
0*8
0.3
0.4

(*>

Considerable r e v i s i o n s have bum

2 / After deducting change i n bank loans made f o r the purpose of purchasing er carrying securities*
2 / Includes Armed Forces Leave bonds*
6 / Mortgage debt to i n s t i t u t i o n s on one*=to—fonr family nonfara dwellings.
5 / Largely attributable to purchases of automobiles and other durable consumers' goods, although including some debt a r i s i n g from purchases of consumption
goods. The other segments of individuals 1 debt have been a l l o c a t e d to the a s s e t s t o which they pertain, v i e . , saving i n savings and lean a s s o c i a t i o n s .
insurance and s e c u r i t i e s .
'
§ / Construction of c&e-to-four family nonfarm dwellings l e s s n e t a c q u i s i t i o n of properties by non-individuals; also includes a «•»*11 amount o f construction
of nonprofit i n s t i t u t i o n s .
2 / Consume* expenditures on durable goods a s estimated by the Department of Commerce*




NOB*

Figures are rounded and w i l l not n e c e s s a r i l y add to t o t a l s . Asterisk (*) indicates l e s s than $50 m i l l i o n . The foregoing data have been compiled
by the Commission from many d i f f e r e n t sources* Because of the nature of the f i g u r e s , current data are n e c e s s a r i l y estimates and, therefore, are
subjeot to r e v i s i o n .