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For Release in MORNING Newspapers of Wednesday, Jun
SECURITIES AND EXCHANGE CO
Philadelphia
STATISTICAL SERIES
Release No* 751

L I B R A R Y
^

J
/

VOLUME AND COMPOSITION OF INDHIDUAIS' SAVING, JAN.-MAR. 1945
The Securities and Exchange Commission today made public Its quarterly
analysis of the volume and composition of saving by individuals l/ in the
United States covering the first quarter of 1945, Total liquid saving during
this quarter amounted to $8.4 billion 2/, a considerably lower rate than the
record high of the last quarter of 1944* This decline was mainly attributable
to the heavy income tax payments made during this quarter including approximately $1*5 billion of fourth quarter 1944 taxes, payment of which was postponed to January 1945*
During the first three months of 1945, individuals added $4*9 billion
to their currency and bank deposits, $1.4 billion to their holdings of U. S.
Government securities, $1.0 billion to their equity in government insurance,
and $900 million to their equity in private insurance, mostly life insurance.
They also paid off $200 million of consumer indebtedness other than mortgages*
At the same time they reduced their holdings of corporate securities by $300
million.
#

The $4.9 billion increase in cash and deposits was at a somewhat lower
rate than in the previous quarter* In spite of the heavy tax payments which
showed their effect on total liquid saving, time and savings deposits
increased by the record amount of $2.3 billion, a continuation of the trend
established in 1944* Individuals1 demand deposits increased $2.1 billion,
about the same rate as in the last quarter of 1944. Currency showed a much
smaller increase of approximately $500 million, reflecting seasonal factors.
In the absence of a War Loan Drive, the $1.4 billion of saving in the form of
U. S. Government securities was substantially less than in the preceding
quarter.
Of the remaining components of individuals' saving in the first quarter
of 1945, private and Government insurance continued to grow at the same high
rate as in prior quarters. Individuals also showed the first liquidation of
consumer debt for close to a year, largely as a reflection of seasonal factors.
The $300 million decrease in holdings of corporate securities was due for the
most part to the substantial debt retirement by corporations.
The above discussion of individuals1 saving is based on data presented
in the following table.
1/ In this analysis individuals1 saving includes unincorporated business
saving of types specified in the attached table. Corporate and Government
saving are not included* The change in individuals1 equity in Government \
insurance is, however, considered as part of individuals' saving.
2/ This does not reflect the increase in inventories of unincorporated business
(net of the change in notes and accounts payable). Although the amount of
this increase is not known, it is believed to have been in the neighborhood
of $100 million in the first quarter of 1945.




- 2 -

S - 751

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

1944
Jan#- Apr.- July- Oct.March June
Sept. Dec#

1945
Jan.March

1940

1941

1942

1943

1944

15.3
4.0

24.3
10.4

38.7
29.5

45.4
37.8

47.9
40.0

11.0
9.2

10.7
8.7

12.3
10#3

14.0
11.8

10.2
8.4

+ 4.9 +11.4 +15.3 +16.9
+ .4 + .3 + .6 + .9

+2.1
+ .2

+ 3.3
+ .2

+ 6*2
+ .2

+ 5.4
+ .3

+ 4.9
+ .2

Gross Saving
Liquid Saving 2/
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 ctebt
c. Saving (a. minus b.)
6. Automobiles and other durable
consumers' goods 5/
7. Liquidation of deFt, not
elsewhere classified 6/

+ 3.0
+ .2
•

•
+
+
-

-

1.7
1.2
2.9
.9
.4
.1
.5
.2

+ 2.1 + 2.5
+ 1.8 + 2.4
+ 3.8 + 4.9

+ 3.1 • 3.4 + .9
+ 3.8 + 4.4 + 1.0
* 6*9 + 7.8 + 1.9

+
+
+

+ 2.8
+ .8
- .2
- .5
+*2.9

+11.1
+ 2.7
+ .2
- .2
+13.8

+11.8 + 3.9
+ 3.6 + 1.1
- .1 - .1
— .6 - .1
+14.7 + 4.7

+
+

8.0
1.9
.1
+ .3
+10.1

+
+

>

2.5
.9
1.7

+ 3.0 + 1.6 + 1.0 +
+ .9 + .1 - .3
+ 2.1 + 1.5 + 1.3 +

+

8.8

+10.8

•

7.6

+ 6.6 + 7.2

-

1.1

-

•

2,9

+ 1.0 -

+
+

.8
1.1
1.9

.6

.8 +
0
.8 +

.7
1.2
1.9

•

•
+

1.0
1.1
2.1

+
+

3.0
1.5
0
0
4.5

•

2.6 + 2.3
1.2 - .1
0
0
.4 - .1
+ 3.4 + 2.1

+

4
+

.2
0
.2

+

+
+

*

.2
0
.2

•

.2
.1
.1

1.6

+

1.8

•

1.8

•

.3

-

.2

0

-

.2
.1
.3

+

+

*3 •+

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

+
+
+

.9
1.0
1.9

1.4
0
0
.3
+ 1.1

•

.1
.1
.2

2.0

+

1.7

.4

+

.2

¥
•

Does not include corporate or

2/ Gross saving^ excluding purchases of homes as well as of automobiles and other durable consumers'
~ goods*
3/ Does not include net purchases by brokers and dealers or by other individuals financed by bank
loans.

w

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.
passenger cars sold in the United States.

The figures shown above include all new

6/ Largely attributable to purchases of automobiles and other durable consumers1 goods, although in~ eluding 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 savings and loan
associations, insurance, securities and homes.
Note*

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.