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For Release In HORNING newspapers of Wednesday, March 31, 1948
SECURITIES AND EXCHANGE COMMISSION
Washington, D. G#
STATISTICAL SERIES
Release Ho* 791
VOLUME AND COMPOSITION OF 1ND1V1DUAIS1 SAVING IN 1947
During the year 1947, Individuals saved $8.9 billion in liquid form, according to the quarterly analysis of saving by individuals in the United States made
public today by the Securities and Exchange Commission, y This amount of liquid
saving, which exceeded that of any pre-war year, represents a substantial decrease
from the abnormally high wai*-time rate* While there was, during 1947, an increase
in income after payment of taxes, liquid saving was about $5 billion less than
that in 1946, reflecting higher consumer expenditures* The proportion of income
saved, though considerably lower than during the war, approximated the 1929 level.
As of the end of 1947, individuals' holdings in cash and deposits amounted
to about $132 billion and holdings of U. S. Government securities amounted to
about $68 billion. Of the total of cash and deposits, $25 billion was in the form
of currency, $55 billion was in time and savings deposits, and $52 billion was in
checking accounts. Individuals' holdings of U* S. Government securities were
mainly U. S. savings bonds, amounting to about $33 billion in Series A - B bonds
and $13 w i n ™ in Series F and G bonds, with other U. S. Government securities
amounting to $22 billion. 2/
During 1947, the composition of saving changed substantially from the preceding year. Currency and bank deposits, which constituted the predominant form
of saving in 1946, were approximately equalled in importance by several other
components. Individuals added $3.3 billion to their holdings of currency and
bank deposits, $3.1 billion to their holdings of U. S. Government securities, $3.2
billion to their equity in private insurance, and $3*4 billion to their equity
in government insurance. They also increased their net holdings of securities
other than U. S. Government by $1*5 billion, and their investment in savings and
loan associations by $1*2 billion. During the same period individuals increased
thei* mortgage indebtedness by $3*8 billion, and other consumer indebtedness by
$2.9 billion.
The growth in individuals' cash and deposits during 1947 was considerably
less than in the preceding year and the lowest since 1940. Individuals added $2*2
V
in this analysis individuals' saving includes unincorporated business saving
of the 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/ Net of loans by banks to individuals (including brokers) for the purchasing
or carrying of government securities. There was $600 million of such debt
outstanding as of the end of 1947*
billion to their time and savings deposits and $1,4 billion to their nheniring
accounts as contrasted to increases of $5.4 billion and $6.4 billion, respectively,
during 1946, Holdings of currency declined by *400 million compared with an increase of $200 million the previous year*
The increase in individuals' holdings of securities during 1947 was much
greater than in 1946, ¥4.6 billion as compared with <0.0 billion. Holdings of U. S.
savings bonds increased $1.8 billion, with net acquisitions of $300 million in
Series A — E bonds and $1*5 billion in Series F and G bonds. Individuals'- equity
in* U. S. Government securities other than savings bonds increased by *1,3 billion,
reflecting net acquisitions of $400 million and repayments of haidr loans of $900
million. About $165 million of these net acquisitions represented issues of Armed
Forces Leave bonds in excess of redemptions. Holdings by individuals of state and
local government securities increased $300 million. There was a large increase in
individuals' holdings of corporate and other securities during 1947, amounting to
$1.2 billion. This increase reflected net purchases by individuals of new corporate
stock issues amounting to $1,3 billion. On the other hand, there was a small reduction in individuals' holdings of bonds, the substantial net increase in outstanding bond issues being absorbed by institutions.
Individuals' equity in insurance and pension reserves in 1947 increased $6.6
billion as compared with $6,9 billion in 1946. Equity in private insurance increased $3,2 billionj policy loans showed a small increase over the year, the first
since 1932* Equity in government insurance increased $3.4 billion, about half in
social security funds. Individuals' equity in the National Service Life Insurance
Fund increased about $800 million, compared with an increase of $1.7 M i U m the
previous year. Equity in savings and loan associations increased $1*2 billion,
about the same as in 1946,
Mortgage debt showed a record increase of $3,8 billion, as compared with an
increase of $3.3 billion in 1946. Other consumer debt increased by $2.9 billion,
as compared with $3.2 billion in 1946. The increase in mortgage debt in 1947
represented over 75 percent of net purchases of new hones by individuals.
During the fourth quarter of 1947, individuals' liquid saving amounted to $2.5
billion, 3/ a somewhat lower rate than in the third quarter. Individuals aHHoH
$2.0 billion to their holdings of cash and deposits, $1.7 billion to their equity
in insurance and pension reserves, $3,0 billion to their investment in securities,
and $300 million to their equity in savings and loan associations. Individuals'
indebtedness arising from the purchase of consumer goods increased by $1.5 billion
as compared with $400 million for the previous quarter, while mortgage debt rose
by about $1.1 billion. The $1*0 billion increase in security investments was
accounted for by net purchases of over $700 million of stock issues and $300 million
of U. S. savings bonds.
3/ This does not include 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
$75 million in the fourth quarter of 1947,
Saving by Individuals in the United States 2/
1940 - 1947
(Billions of dollars)
1947
WA7
Jan.- Apr.- July- Oct.Sept. Bec.
Karch
+17.5 +19.0 +11.9 + 3.3
- 2.2 + 0.9 + 2.6 + 2.0
2. Savings and loan associations
• 0.2 + 0.4 + 0.3 + 0.6 • 0.8 + 1.1 + 1.1 + 1.2
+ 0.3 + 0.3 + 0.2 + 0.3
3. Insurance and pension reserves
a. Private insurance
b. Government insnrenee
+ 3.1 + 4.0 + 5.0 * 6.8 + 8.2 + 8.5 + 6,9 + 6.6
+ 1.8 + 2.1 + 2.5 + 2.9 + 3.2 + 3.5 + 3.4 + 3.2
+ 1.3 + 1.9 + 2.5 + 3.9 + 4.9 + 5.1 + 3.4 + 3.4
+ 1.6 + 1.6 + 1.6 * 1.7
+ 0.8 + 0.8 + 0.8 + 0.9
+ 0.8 + 0.9 + 0.8 + 0.9
Type of Saving
bank deposits
1941
1942
1943
+ 2.9 + 4.9 +10.9 + W L
+
+
+
-
2.9
2.8
0.7
0,3
0.3
1944
1945
1946
+10.4 +13,7 +14.9 + 9.6 +
+ 8.0 +11.1 +3JUS • 6.8 +
• 4.0 • 3.7
+ 2.4
- 0.1 - 0,2 - 0.2 * M
+ 0.3 - 0.5 - 0.8 - 0,7 +
1.0
0.9
(*)
0.4
0.4
+ 4.6
4. Securities 2J
a. U.S. savings bonds
b. Other U.S. Government j/
c. State and local government
d. Corporate and other
i i i + i
o oo oo
MJS W vO H
1. Currency
1940
5. Liquidation of Mortgage debt lJ
- 0.9 - 0.9 - 0.1 + 0.3
6. Liquidation of debt not elsewhere classified J/
- 1.2 - 1.0 + 3.3 + 1.3 - 0.2 - 1,1 - 3.2 - 2.9
+
o a
+
+ 1.3
* 0.3
+ 1.2
- 0.2 - 3.3 - 3.3
- 0.7 - 1.0
-1.0
- 1.1
- 0.2 - 0.7 — 0.4 - 1.5
+ 1.4 + 2.1 + 2.9 + 2.5
9. Nonfairs dwellings 6/
+ 7.9 + 9.7 + 6.8 + 6.5 • 6.8 + 8.0 +14.9
+¥>.a+
1-15.1 +23.6 +38.6 +46.4 +49.0 +/6.0 +33.2 +64.2
t
l/
N
+ 1.0 + 1.2 + 1.5 + 1.8
9. Other durable consumers1 goods 2/
10. Total Gross Saving (7 + 8 * 9)
2,7 + 1.0 - 0.1 + 1.0
0.8 + 0.3 + 0.3 + 0.3
1.5 + 0.5 - 0.7
O.I • 0.1
0*1
{*) + 0,2 + 0.7
0.2
8.9
i- 4.1 +10.3 +29.9 +38.8 +41.3 +36,9 +14.4< >
+ 3.1 + 3.6 .+ 1.9
i a
+
+
+
•
+
+ 1.0 • 1,1 + 3.9 f i.s
7. Total Liquid Saving
+
us
4.1 + 4.7 + 4.8
+
6.1
+ 6.6 + 8.0 + 9.2 +10.4
3
Includes imincorporcted business saving of the types specified. Does not include corporate or government saving.
Considerable revisions have been mace in some of the series.
2/ Does not include net purchases by brokers and dealers or by other individuals financed by bank loans.
j/
Includes Armed Forces Leave bones.
(J
Mortgage debt to Institutions on one-to-four family nonfarm dwellings*
$/ Largely attributable to purchases of automobiles and other curable consumers' goods, although inducing soae cebt
arising from purchases of consumption goods. The other segments of individuals1 cebt have been allocated to the
assets to which they pertain, viz., saving in savings and loan associations, insurance and securities.
y
Construction of one-to-four nonfarm dwellings less net acquisition of properties by non-individuals. Also includes
a emmn amount of construction by non-profit institutions.
jJ
Consumer expenditures on durable goods as estimated by the Department of Commerce.
Note: Figures are rounded tmc will not necessarily add to totals. Asterisk (*) indicates less than 4*50 million.
The foregoing data have been compiled by the Commission from many different sources. Because of the
nature of the figure;*, current data are necessarily estimates and, therefore, ere subject to revision.
COMPONENTS
OF
INDIVIDUALS 1
LIQUID
SAVING
1940-1947
COLLARS
DOLLARS
BILLIONS
50
BILLIONS
OTHER LIQUID
SAVING 1/
U.S. GOVERNMENT
SECURITIES
CURRENCY AND
BANK DEPOSITS
40
30
8#
10
1
m
US!
west
1940
1941
1942
1943
1945
1946
1947
INCLUDES SAVING IN SAVINGS AND LOAN ASSOCIATIONS; PRIVATE AND GOVERNMENT INSURANCE; STATE, LOCAL AND CORPORATE SECURITIES;
AND LIQUIDATION OF MORTGAGE DEBT AND DEBT NOT ELSEWHERE CLASSIFIED.
4
@FedFRASER