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SECURITIES AND EXCHANGE COMMISSION
Washington, D C.

STATISTICAL SERIES

RELEASE. NO.
For Release

1762

June 22, 1961

VOLUME AND COMPOSITION OF INDIVIDUALS' SAVING, JANUARY-MARCH, 1961 1/
Individuals in the United States saved $5.0 billion in financial form
during the first quarter of 1961, compared with $1.4 billion in the preceding
quarter, and $3.2 billion in the first quarter of 1960, according to estimates
made public today by the Securities and Exchange Commission. This was the highest quarterly rate of financial saving since the third quarter of 1958, chiefly
reflecting the decline in spending for consumer durable goods which was the
lowest since that period.
Accompanying the reduction in consumer expenditures, individuals' installment loans declined sharply in the first three months of 1961. In addition,
there was the usual first quarter repayment of noninstallment debt as well as
a large repayment of securities loans, these repayments adding to individuals'
net financial saving. There were other indications of the movement to a more
liquid position by individuals, continuing the trend since mid-1960. Individuals' deposits at commercial and mutual savings banks rose sharply and sizeable
investments were made in savings and loan association shares. Holdings of
marketable Government bonds were reduced, as in each of the three preceding
quarters. Although individuals' acquisitions of investment company issues were
larger than in previous quarters, their investment in other equity issues again
declined, despite sharply rising prices in the stock market.
Total securities holdings of individuals were reduced by $1.1 billion in
the first quarter of this year. This compares with net sales of $1.5 billion
in the fourth quarter of 1960 and net purchases of $2.6 billion in the first
quarter of 1960. The dissaving in securities in the first quarter of this
year was accounted for primarily by net sales of $1.3 billion of U. S. Government marketable issues. In the first quarter of 1960, in contrast, net purchases of such issues totalled $2.0 billion. During the first quarter of 1961
individuals also sold on balance $400 million of corporate bonds and purchased
only a small amount of state and local issues. Individuals'net sales of stock
issues other than investment company shares amounted to $500 million, the same
as in the preceding quarter,, and compares with $700 million net sales in the
first quarter of 1960. While sales of new stock issues were greater than in
either the fourth or first quarters of 1960, institutional investors bought at
a high rate. In addition a considerable amount of portfolio holdings of
individuals was exchanged for investment company shares. Including this direct
1/

Individuals' financial saving, in addition to personal holdings, covers
saving of unincorporated business, trust funds and nonprofit institutions
and includes saving in the form of securities, currency and bank deposits,
savings and loan association and credit union shares, and insurance and
pension reserves, net of the increase in individuals' debt.




MA *
•
.

-2-

S-1762

transfer, net acquisitions of investment company shares in the first quarter
totalled $600 million, mostly sales of open-end companies which were at a
quarterly all-time high.
Individuals' saving in currency and bank deposits amounted to $2.0
billion during the first quarter of 1961, in contrast to a reduction of that
amount in the first quarter of last year. Time and savings deposits rose
$2.4 billion, the largest increase in three years, and demand deposits increased $600 million. Currency holdings of individuals showed the usual
seasonal decline,dropping by $1.0 billion. Shares and deposits of saving
and loan associations and credit unions increased $1.9 billion, a larger
increase than in the early months of 1960.
Private insurance and pension reserves grew $2.4 billion during the
first quarter, somewhat more than in the same period last year. Government
insurance and pension reserves rose $100 million as compared to a $300
million rise in the 1960 first quarter. Increased unemployment benefit payments and the speed-up in payments of veterans' life insurance dividends
this year contributed to the reduced saving in this form.
The decline in consumer debt in the first quarter amounted to $1.7
billion as compared to a $500 million decline in the first quarter of last
year. While part of the reduction reflected the seasonal contraction of
charge account credit, it chiefly reflected the decline in consumer installment credit extensions in connection with purchases of automobiles and other
durable goods. The net repayment on securities loans of $1.1 billion resulted principally from a decline in inventories of dealers and brokers,
who are included with individuals in this series. Reflecting the decline
in new residential construction, individuals' mortgage debt increased somewhat less than in the first three months of last year.
Other concepts of saving
Besides the concept of saving presented here, there are other concepts
of individuals' saving with different degrees of coverage currently in use.
The personal saving estimate of the Department of Commerce is derived as
the difference between personal income after taxes and expenditures. A
complete reconciliation of the Securities and Exchange Commission and Commerce Department series appears annually in the July issue of the Statistical Bulletin of the Securities and Exchange Commission and in the Survey
of Current Business.
The Federal Reserve Board's flow-of-funds system of accounts includes
capital expenditures as well as financial components of saving and covers
saving of Federal, state and local governments, businesses, financial institutions and consumers. While the Federal Reserve Board's estimates of
consumer saving in financial form from the flow-of-funds accounts are similar to the Securities and Exchange Commission estimates of individuals*
saving, there are some statistical and conceptual differences in the two
sets of data.
A more restricted approach to saving is the selected item seritis of the
Home Loan Bank Board. This series covers the following components: time and
savings deposits of individuals, partnerships and corporations, savings and
loan association shares, private life insurance and U. S. savings bonds.



SAVING BY INDIVIDUALS IN THE UNITED STATES

1957 — 1961
(Billions of dollars)
1957

1958

1959

1960
Jan.Mar.

Type of Saving
4.9

1.

10.2

3.5

3.9

-2.1

-1.3
6.3

.3
2.2
7.7

.7
-1.2
4.1

-1.2
5.0

-1.1
-1.4
.3

;

Apr.-

|

- .2

1

I
,

Savings shares 2/

5.2

6.3

7.3

8.1

1.6

i

2.4

3.

Securities.

4.6

1.3

11.1

1.4

2.6

|

- .2

U. S. savings bonds
(1) Series E & H
(2) Other
Other U. S. Government 3/

.9
-1.4
-1.6
.8
2.6
1.3
1.6
- .3

- .1
-1.7
9.8
2.2
.9
.1
1.7
- .9

Investment company shares 4/
Other preferred and common stock.....

4.

8.4

3.5
1.6
2.9

3.9
1.5
3.1

b.

Insured pension reserves

Government insurance and pension
reserves 6/

3.2

6.
a.

Mortgage debt 7/

c.

Securities loans 9/

.5
- .7
- .9
1.4
1.2
1.5
1.5
-1.8

.1
- .3
2.0
.6
.1
.3
.5
- .7

8.9

9.2

2.2

j

3.5
2.0
3.4

4.3
1.2
3.7

.9
.3
1.0

1
j

.6

2.3

3.3

.3

1

10.4

(2)
(3)

5.

.2
-2.1
1.5
2.2
2.8
1.3
1.1
.4

10.0

19.5

15.5

1.4

7.9
2.5
- .1

9.3
.2
.4

13.0
6.3
.2

11.6
3.7
.3

3.1
- .5
-1.3

1
|
|

10.4

3.2

j Oct.Dec.

1961
Jan.Mar.

1

2.9

2.0

1.3
1.9
1
1
1
1
1

3.2

1

|
1

.9
-3
1.7

-1.0
.6
2.4

1.4

l

2.7

1.9

.6

1

8.0

b.

1

4

2.

a.

1960
] JulySept.

|

! "le5
1
1
1

[

.1
- .2
- .3
.4
.5
.4
.4
- .3

2.1

,

2.3

.9
.3
.9

1
|
|

1.1
.3
.9

2.1

j

4.7
2.6
2.0
.1

|

4.7

-1.1

-3
- -1
-1.9
" -2
.4
.6
.3
- .5

.4
- .1
-1.3
.2
- .2
- .4
.6
- .5

1

2.6

2.4

1
I

1.4
.3
.9

1.0
.3
1.0

1.0

1

- .1

.1

,

4.2

1

1
i
j

2.7
.7
.8

1.6

1

4.3

1

4.1

|

1
,

- .2
- .7

1
,

1

|
,

3 :

1

1

1
1

I
1

1

5.3

.2

3.2
1.5
.6

3.0
-1.7
-1.1

j

1.4

5.0

4.6

!

4.9

4.2

7.

Net financial saving (1+2+3+4+5-6).

15.5

16.9

13.6

8.

Nonfarm homes 10/

15.6

15.3

19.2

18.4

9.

Construction and equipment of nonprofit
2.5

2.7

2.9

3.2

.7

j

.7

1
j

.9

j

.8

.7

40.4

37.3

43.4

43.6

10.0

1

11.2

1

10.1

1

12.4

8.8

74.0

72.3

79.1

75.6

18.6

|

17.7

|

19.8

1

19.5

18.8

10.

11.

Gross saving (7+8+9+10)

1
*
1/

21
3/
4/
5/
6/
7/
8/

9/
10/

Indicates less than $50 million.
Includes unincorporated business saving of the types specified. 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.
Includes shares in savings and loan associations and shares and deposits in credit unions.
Includes nonguaianteed Federal agency securities.
Includes closed-end investment companies as veil as mutual funds.
Includes reserves of nulti-employer funds, nonprofit organization and union-administered plans as well as corporate
pens ion funds.
Includes Social Security, unemployment, civil service and railroad retirement and state and local retirement funds.
Mortgage debt to institutions on one-to-four-family nonfarm dwellings.
Consumer debt owed to corporations, largely attributable to purchase of automobiles and other durable consumer goodn, although
including some debf. arising from purchar.es of consumption goods. Policy loans on government and private life inRuronca have
been deducted from those items of saving.
Change in bank loans to brokers and dealers and others made for the purpose of purchasing or carrying securities.
Construction of oin-?.3-1our-family nonf
dv llirgs less net acquisitions of properties >y nonindlvi-ieutls.