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For Release in MORNING Newspapers of Thursday, January 10, 1"'^
SECURITIES

AND

EXCHANGE COMMISSION

P h i l a d e I phi a

STATISTICAL SERIES
Release No. 757
VOLUME AND COMPOSITION OF INDIVIDUALS' SAVING, JULT-S]
Individuals continued to save at a high rate in the third quarter of
1945, according to the quarterly analysis of saving by individuals 1/ in the
United States made public today by the Securities and Exchange Commission.
Total liquid saving during this quarter amounted to $10.0 billion. 2/ This
rate of saving was about the same as in the previous quarter, reflecting the
fact that income in the hands of individuals after payment of taxes was approximately equal in the two quarters. There was no indication during the third
quarter of the normal seasonal rise in the rate of saving.
A $6.6 billion increase in cash and deposits constituted by far the largest component of individuals' saving in the third quarter of 1945. During
these three months individuals also added $800 million to their holdings of U.S.
Government securities; $400 million to their equity in corporate and other securities; $1.3 billion to their equity in Government insurance; $800 million to
their equity in private insurance, mostly life insurance; and $300 million to
their investment in savings and loan associations.
The rate of growth in individuals1 cash and deposits during the third
quarter reached a new high. The total increase of $6.6 billion reflected a $1.0
billion rise in individuals' currency, $2.9 billion in their demand deposits,
and $2.7 billion in time and savings deposits. The increase in time and savings
deposits, the largest tin record, was a continuation of the trend established in
1944. The rise in demand deposits, which was the largest since the fourth
quarter of 1943, was in part a reflection of the absence of any new war loan
drive. During the war, bond drives had the effect of channeling a considerable
amount of saving from demand deposits into Government securities. In the absence
of a new drive in the third quarter of 1945, not only was saving in demand deposits at a very high level but also individuals' additions to their holdings
of U.S. Governments were the lowest since the third quarter of 1941.
Of the remaining components of individuals' saving in the third quarter of
1945, only the $400 million increase in individuals' saving in corporate and
other securities is of particular interest. This was mainly a reflection of a
fairly substantial net increase in corporate equity securities almost entirely
taken up by individuals. There was also a sizable temporary increase in corporate bonds outstanding, but these issues which were mainly absorbed by institutions were for the purpose of retiring outstanding securities in the following
quarter.
The above discussion Is based on data presented in the following table.
1/ In this analysis individuals' saving includes unincorporated business saving
of types specified in the attached table. Corporate and Government saving
are not included. The change in individuals' equity in Government insurance
is, however, considered as part of individuals' saving.
2/ This does not reflect the change in inventories of unincorporated business
(net of the change in notes and accounts payable). Although the amount of
this change is not known, it Is believed to have been negligible in the third
quarter of 1945.




-

S - 757

2 -

I

Gross Saving by Individuals in the United States 1/
1940 - 1945
(Billions of dollars)

1940
Gross Saving
Liquid Saving 2/

1941

1942

1943

1944

15*3
4*0

24*3
10.4

38.7
29*5

45*4
37.8

48*4
40.5

Gross Saving by Type
1. Currency and bank deposits
+
2. Savings and loan associations +
3. Insurance and pension reserves
a. Private insurance
+
b. Government insurance
+
c. Total
+
4* Securities 3/
+
a. U. S. Savings bonds
b. Other U. S* Government
c. State and local governments d. Corporate and other
e. Total
5* Non-farm dwellings
a. Purchases 4/
+
b. Change in <iebt
+
c. Saving (a. minus b.)
+
6. Automobiles and other durable
consumers* goods 5/
+
7. Liquidation of deEt, not
elsewhere classified 6/
-

1944
July- Oct*Sept. Dec.
12*5
10.4

14*1
12.0

1945
Jan.- Apr.- JulyMarch June Sept.
10.5
8.8

12.1
10.0

12.2
10.0

3*0 + 4*9 +11*4 +15*3 +16.9
*2 + .4 + .3 + . 6 + *8

+ 6.2 + 5*4
+ .2 + .2

Wl
+ 5*0 + 2.7 + 6 * 6 H |
+ #2 + .3 + * 3 ^

1.7 + 2.1 + 2.5 + 3*1 + 3*4
1.2 + 1.8 + 2.4 + 3*8 + 4*7
2.9 + 3*8 + 4*9 + 6.9 * 8.1

+ .7 + 1.0
+ 1*3 + 1*3
+ 2.0 + 2.3

+ .9 + .9 + *8
+ 1*3 + 1*5 + 1*3
+ 2.2 + 2.5 + 2.1

+ 2.3 + 3*0
- .1 + 1*5
0
0
0 + .1
+ 2.2 + 4*6

+ 1.4 + 3*0 + .9
- *1 + 2.2 - .1
0
0 - .1
- * 3 - * 5 + *4
+ 1.0 + 4*7 + 1.1

+

+
+

.9
.4
.1
.5
.2

+ 2.8 + 8.0
+ *8 + 1.9
- .2 - .1
- *5 + *3
+ 2.9 +10.1

+11.1
+ 2.7
+ #2
- *2
+13*8

+11.8
+ 3*6
- .1
- .3
+15.0

2.5 + 3*0 + 1.6 + 1.0 +
*9 + *9 + *1 - *3
1.7 + 2.1 + 1.5 + 1.3 +

.8
0
.8

8#8 +10.8 + 7.6 + 6.6 + 7.2
1.1 -

.6 + 2.9 + 1*0 -

+

.2+
0 +
*2 +

.2
.1
.1

+ 1.8 + 2.0

.3

0

1/ Includes unincorporated business saving of the types specified#
government saving.

-

.4

.1 +
*2 +
.3+

.2 +
.1 +
*1+

.3
.1
*1

+ 1.7 + 1.9 + 1*9
+

.2 -

.1

0

Does not include corporate or

2/ Gross saving excluding purchases of homes as well as of automobiles and other durable consumers1
~ goods.

1

3/ Does not include net purchases by brokers and dealers or by other individuals financed by ba:
~ loans#
4/ New construction of one- to four-family non-farm homes less net acquisition of properties by
~ non-individuals.
5/ Purchases# Based on revised Department of Commerce data#
~ new passenger cars sold in the United States#

The figures shown above include all

6/ 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
individualsf debt have been allocated to the assets to which they pertain, viz., saving in
savings and loan associations, insurance, securities and homes.
j
Note t Figures are rounded and will not necessarily add to totals.
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#



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