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For Release i n MORNING Newspaper* of Thursday, December 29, 1949 SECURITIES AND EXCHANGE COMMISSION Washington, D*C* STATISTICAL SERIES Release No* 907 V L M A D COMPOSITION OF INDIVIDUALS* SAVING, JULY-SEPTEMBER 1949 OU E N 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 .
