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FEDERAL RESERVE BOARD
LIBRARY

U N I T E D STATES
SECURITIES A N D E X C H A N G E COMMISSION
WASHINGTON,D.C. 20549

JUL 16 1969

For R e lease

July 11. 1969

STATISTICAL SERIES

RELEASE NO.

2375

VOLUME AND COMPOSITION OF INDIVIDUALS' SAVING
FIRST QUARTER, 1969
In the first quarter of 1969, individuals1 saving amounted to $13.7
billion, according to estimates released today by the Securities and Exchange
Commission, This was less than both the previous quarter's $20.9 billion
and the first quarter 1968 saving of $14.4 billion. The individuals' sector
comprises households, private trust funds, nonprofit institutions, farms,
and other noncorporate businesses. In the Securities and Exchange Commission's
definition, individuals' saving equals net investment in tangible assets plus
change in financial assets less increase in debt.

Increase in Financial Assets
Saving through financial assets totaled $8.5 billion in the first quarter
compared to $22*5 billion in the previous quarter and $12.1 billion a year
earlier* Currency and demand deposits held by individuals were reduced by
$6.9 billion in January-March. This decline was $2.7 billion more than in
the first quarter of 1968. The first quarter increase in saving accounts was
$7.2 billion, somewhat less than the previous quarter and about equal to the
average quarter growth of saving accounts during 1968.
Individuals added $3,0 billion of securities to their portfolios during
January-March -- equal to the first quarter of 1968, but a considerable change
from the $2.0 billion securities disinvestment in the previous quarter. Net
purchases of municipal securities were $2.3 billion compared to $1.4 billion
during the entire year 1968. During the first three months of this year
yields on state and local obligations rose considerably more than yields on
other securities. This large yield increase was associated with a substantial
decline in net acquisitions of municipals by banks. In the Government security
sector, individuals reduced their holdings of savings bonds by $100 million
but increased their holdings of 'other1 U. S. Government issues by $400 million.
The net increase of $300 million compares with a $1.3 billion increase in the
comparable quarter of 1968, and a decrease of $800 million in the last quarter
of 1968. Individuals increased their holdings of corporate and foreign bonds
by $1.4 billion in the first quarter compared to $1.0 billion in the previous
quarter and $500 million a year earlier* In contrast, individuals liquidated
$2.2 billion of stock, other than investment company shares, less than half
that of the fourth quarter 1968. Net acquisitions of investment company shares
totaled $1.2 billion, slightly below the average 1968 quarterly accumulation.
Miscellaneous financial assets were decreased by $400 million and reserves of
insurance and pension funds were little changed from the fourth quarter of
1968




-2-

S-2375

At $7.1 billion, the increase in net investment in tangible assets was
considerably lower than the $11.7 billion increase in the previous quarter.
Seasonally influenced decreases occurred in net investment in both nonfarm
homes and consumer durables.

Increase in Debt
Individuals' debt rose only $1.8 billion in the first quarter — an unusually low amount as compared to recent years. A portion of the quarter-toquarter change can be attributed to seasonal factors. The increase in mortgage debt on nonfarm homes of $3.7 billion was equal to the increase in the
first quarter of 1968. Mortgage debt of noncorporate business likewise increased by about the same amount as in the first period of 1968.
Consumer credit decreased by $1.6 billion during the January-March
quarter compared to an increase of $5.6 billion in the fourth quarter. Security
credit decreased by $1.3 billion as contrasted to a $1.4 billion increase in
the previous quarter. Other debt also resulted in a net liquidation of minus
$800 million.







VOLUME A N D COMPOSITION OF INDIVIDUALS' SAVING
(Billions of d o l l a r s )
1965

1966

1967

1968

1968
1Q

I

2Q

1

3Q

1

4Q

1969
1Q

Unadjusted Quarterly
22.5
9.7
7.8
-2.1
.1
-.9
.9
1.0
1.4
-4.6

8.5
-6.9
7.2
3.0
-. 1
.4
2.3
1.4
1.2
-2.2

.4
1.2
.7
1.9
1.0

1.6
1.2
.7
2.5
1.1

-.4
1.2
.7
2.5
1.2

33.1
6.0

32.1
6. 6

35.3
7.0

31.3
6.4

3.9
17.6
.9

5.5
21.0
.5

5.1
20.7
-.2

4.9
23.2
.3

4.5
19.4
1.0

93.0
8.2
19.2
65.6

22.7
2.0
4.7
16.0

23.1
2.0
4.8
16.3

23.6
2.1
4.8
16.7

23.6
2.1
4.9
16. 6

24.2
2.1
5.0
17.1

25.4
12.5

35.7
17.1

5.6
3.8

9.9
4.0

8.6
4.5

11.7
4.9

7.1
4.3

.6
14.9
.7

.2
12.1
.6

.2
16.9
1.4

-.8
1.6
.9

.8
4.7
.5

.3
4.0
-.2

-. 1
6.6
.3

33.3
11.4
6.4
6.9
-o 2
1.5
7.3

34.0
10.9
6.1
4.4
3.3
1.0
8.2

47.3
15.4
6.6
11.1
2.2
1.3
10.9

3.3
3.7
1.4
-1.2
-1.0
.3
*

17.9
3.5
1.9
3.6
1.3
.4
7.2

13.0
3.8
1.6
3.0
.5
.3
3.8

13.2
4.3
1.7
5.6
1.4
.3

1.8
3.7
1.5
-1. 6
-1.3
.3
-. 8

8.0

14.0

20.9

13.7

1.6
2.8
-6.9

68.9
14.9
27.6
2.1
.4
2.7
1.4
3.9
5.7
-12.0

1.7
4.5
2.1
6.2
5.1

2.9
4.6
2.2
6.3
5.9

3.8
4.7
2.6
7.8
5.4

.5
1.2
.6
1.7
i.i

108.7
22.9

110.5
21.5

112.0
20.3

128.8
25.3

28.3
5.8

19
20

17.8
66.3
1.7

17.8
70.5
.7

18.4
72.6
.6

19.5
82.5
1.4

21
22
23
24

75.1
7.1
16.4
51.5

80.2
7.4
17.2
55.6

86.6
7.8
18.2
60.6

33.7
15.8

30.3
14.1

28
29

1.4
14.8
1.7

30
31
32
33
34
35
36

41.2
16.1
6.4
9.4
.8
.6
7.9

37

47.4

16.0
2.3
5.4
1.4
.1
1.7
.2
1.5
1.2
-3.3

12.1
-4.2
8.1
3.1
.1
1.2
.4
.5
1.8
-1.0

1
2
3
4
5
6
7
8
9
10

55.0
7.2
26.5
3.1
.6
2.3
2.1
-.3
3.1
-4.8

51.6
1.9
19.2
10.9
.6
7.4
2.2
1.2
3.7
-4.2

63.5
12.5
32.4
-3.4
.9
-1.7
*

11
12
13
14
15

1.8
4.7
2.1
4.9
4.8

Private noninsured pension reserves
Government insurance & pension reserves...

16
17
18

25
26
27

Noncorporate business construction

Noncorporate business plant & equipment...

Net investment in tangible assets (16-21)...
Noncorporate business construction

:

1.3
1.2
.6
1.6
2.2

18.4
7.2
6.3
-.3
.2
.8
-.1
.8
1,2
-3.2

-.5
2.4
1.0

1

*

Less than $50 million.

48.6

54.9

57.3

14.4

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