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UNITED STATES
V4"'

, n

S E C U R I T I E S A N D E X C H A N G E COMMISSION
WASHINGTON,DC.

w
For Release

2 0549

March 3 1 , 1970

STATISTICAL

S E R I E S

release NO.

2430

VOLUME AND COMPOSITION OF INDIVIDUALS' SAVING, 1969
Individuals' saving in 1969 amounted to $57.9 billion, about equal to the
average of the four preceding years, according to preliminary estimates released by the Securities and Exchange Commission. Saving in the fourth quarter
of 1969 was $18.1 billion, approximately the same as recorded in the fourth
quarter of 1968. Individuals' saving is defined as the change in financial
assets plus net investment in tangible assets minus change in debt of households, private trust funds, nonprofit institutions, and farms and other noncorporate business.
1966
1967
1968
1969
(in billions of dollars)
Individuals' saving
Increase in financial assets
Net investment in tangible assets
(less) Increase in debt

56.1

61.5

57.1

57.9

54.4
33.9
(32.2)

66.5
28.7
(33.7)

63.7
37.3
(43.9)

57.0
39.3
(38.3)

Change in Financial Assets
Total financial assets of individuals increased $57.0 billion last year,
a smaller increase than those of the two previous years. There was a significant shift in the composition of net additions to financial assets, however,
as individuals made only moderate additions to their holdings of liquid assets
while adding substantially to their holdings of securities. This apparently
resulted from a sharp widening in the gap between yields on bonds and money
market instruments and the return on savings deposits. Currency and demand
deposits rose $3.7 billion, as compared to almost $7 billion in 1968 and $11.5
billion in 1967, while the growth in savings accounts was the smallest in
over 10 years.
On the other hand, direct investment in the securities market by individuals during 1969 expanded a record $16.8 billion -- two-thirds greater than
the previous high recorded in 1966 and four times the increase in 1968. Their
holdings of U.S. Treasury marketable securities increased a record $10.2
billion, versus $4.4 billion in the previous year, but net investment in U.S.
savings bonds declined $400 million. Individuals added $4.5 billion of Federal
agency securities to their holdings in 1969, double their net acquisitions of
1968. They also significantly increased their holdings of state and local
securities, with net additions of $4.4 billion, or half the total increase in
the volume of such securities outstanding.




-2-

S-2430

Preliminary data show a net addition to corporate bond holdings of $4.0
billion, marking the third year in which individuals' net acquisition reached
the $4.0 billion level. Stock liquidation by individuals was $10.8 billion,
somewhat lower than the reduction of the prior year, while the increase in
investment company stock was up only slightly from 1968.
Saving through increases in insurance and pension reserves (both private
and Government) amounted to $21.9 billion, or 12 percent higher than in 1968.
The gain in miscellaneous financial assets, however, was less than in the
preceding two years.

Net Investment in Tangible Assets
Individuals saved $39.3 billion through net investment in tangible assets
last year, five percent more than in 1968. The $20.4 billion net investment
in nonfarm homes for the entire year was 7 percent higher than 1968. However,
fourth quarter investment in nonfarm homes on a net basis was $5.3 billion,
slightly below that of both the third quarter of 1969 and the fourth quarter
of 1968.
Net investment in consumer durables was $16.9 billion, the same as in
1968. After adjusting for seasonal factors, estimates show that net additions
to the stock of consumer durables have been declining in the past two quarters.

Increase in Debt
Last year's debt expansion by individuals ($38.3 billion) was less than in
the previous year. Mortgage debt on nonfarm homes increased $15.7 billion
during the year, only slightly greater than the preceding year; and noncorporate business mortgage debt expanded $7.3 billion, somewhat higher than any
of the preceding years. The volume of consumer credit outstanding rose $8.9
billion, one-fifth less than in the previous year, but still substantial when
compared to other recent years.
Individuals continued to make substantial use of policy loans on life
insurance as a source of credit in 1969, when policy loans outstanding rose
$2.5 billion as compared to $1.3 billion in 1968. On the other hand, they
decreased their security debt by $3.9 billion over the year. The increase in
other debt of individuals during the year was equal to the increase in 1968.
Reconciliation between SEC and Commerce Saving
The following table illustrates the reconciliation of conceptual differences
between the SEC saving data and that published by the Department of Commerce.
The personal saving estimate of the Department of Commerce is derived as the
difference between personal income (after taxes) and expenditures.




S-2430

-3-

1966
1967
1968
1969
(in billions of dollars)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

1/

SEC individuals' saving
Less: Govt, insurance & pension
reserves
Net investment in consumer
durables
Capital gains distribution from
investment companies
SEC saving adjusted to personal saving
Commerce personal saving
Difference (5-6)
Statistical discrepancy in the national
income and product accounts
Alternative estimate of personal
saving (6+8) 1/
Difference (5-9)

56. 1

61 .5

57. 1

57 .9

5. 3

6 .0

5. 6

7 .8

15. 2

12 .4

16. 9

16 .9

1. 3
34. 3
32. 5
1. 7

1 .7
41 .4
40 .5
.9

2.5
32. 1
38.4
-6.2

2 .5
30 .7
37 .7
-7 .0

-1.0

-1 .0

-2.5

-6 .1

31. 5
2.8

39 .5
1 „9

35. 9
2.5

31 .6
-0 .9

Equals gross investment less government surplus and less gross private
saving other than personal saving.

Notice;
About 15 months ago these saving statistics were made consistent with
those published by the Federal Reserve Board. Since that time the Federal
Reserve Board staff has been producing these saving statistics as part of
their flow-of-funds statistical program. The Commission will no longer
publish this release; but the Federal Reserve Board will continue the publication of the data, including seasonally adjusted as well as unadjusted
data. Persons on the SEC mailing list will be sent the Federal Reserve
Board publication.




VOLUME AND C O M P O S I T I O N OF INDIVIDUALS' SAVING

//f

(Billions of d o l l a r s )

1966

1967

1968

1969

1968

1969

1Q

4Q

1Q

2Q

3Q

57.0
3.7
10.8
16.8
-.4
10.2
4.5
4.4
4.0
4.9
-10.8

13.5
-5.0
8.1
5.3
.1
3.4
-.1
.5
.8
1.8
-1.1

11.0
5.7
-1.7
.1
-1.0
1.3
-1.2
1.6
.5
-2.9

19.8
6.2
6.3
1.5
.2
1.3
.5
1.3
.9
.9
-3.5

3.8
4.5
3.0
6.6
7.8

.9
1.2
.7
1.5
1.0

1.6
1.1
.7
1.3
2.2

1.0
1.1
.7
1.7
1.1

2.2
1.1
.7
1.9
1.2

.5
1.3
.8
1.3
1.3

19.3
5.7
7.7
-1.3
.2
.7
.6
-.7
1.3
1.6
-4.9

14.2
-4.3
5.6
7.7
-.1
5.3
,4
1.5
1.1
2.4
-2.9

3Q

4Q

21.2
3.3
.5
10.7
-.2
5.9
1.0
2.2
2.1
.7
-1.0

13.5
4.7
.9
.8

.9
.9
.7
1.7
2.7

.9
1.1
.8
1.7
2.1

1.5
1.1
.8
1.9
1.8

2Q
8.2
.1
3.8
-2.5
™.1
-2.7
1.7
.2
1.0
.9
-3.5

11

Other U.S. Treasury securities
U.S. Government agency securities
State and local obligations

Other corporate stock

12

Miscellaneous financial assets

14
15
16

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

17
19

22

Gross investment in tangible assets

Capital consumption allowances
Noncorporate business plant & equipment...

26

Net investment in tangible assets (17-22)...

32
33

38

63.7
6.9
27.7
3.8
.5
4.4
2.2
-.2
4.6
4.7
-12.4

3.7
4.5
2.1
6.1
5.3

4.8
4.7
2.6
6.7
6.0

5.7
4.6
2.9
6.4
5.6

114.1
23.4

115.5
22.2

131.4
27.3

141.2
29.0

29.5
6.0

32.7
6.4

32.0
7.3

37.2
7.5

32.1
6.8

35.4
7.0

34.5
7.7

39.1
7.5

19.4
73.0
1.0

20.1
83.3
.8

21.3
89.6
1.3

5.0
17.8
.7

5.2
20.8
.4

4.9
20.1
-.3

5.0
24.7

5.5
23.0

*

4.9
19.8
.6

*

5.3
21.1
.4

5.6
25.8
.2

80.3
7.4
17.2
55.6

86.8
7.8
18.4
60.6

94.2
8.2
19.5
66.5

101.9
8.6
20.5
72.7

22.9
2.0
4.8
16.1

23.3
2.0
4.8
16.4

23.8
2.1
4.9
16.8

24.2
2.1
5.0
17.2

24.7
2.1
5.0
17.6

25.2
2.1
5.1
18.0

25.7
2.2
5.2
18.4

26.2
2.2
5.2
18.8

33.9
16.0

28.7
14.3

37.3
19.1

39.3
20.4

6.7
4.0

9.4
4.3

8.3
5.3

12.9
5.4

7.4
4.7

10.2
4.8

8.8
5.5

12.9
5.3

1.0
12.4
1.0

.6
16.9
.8

.7
16.9
1.3

.2
1.7
.7

.4
4.4
.4

*

3.3
-.3

7.5

-.2
2.2
.6

.4
5.0

.1
2.7
.4

.3
7.0
.2

32.2
11.8
6.2
7.2
-. 2
1.5
5.6

33.7
11.1
6.5
4.6
3.3
1.0
7.3

43.9
15.0
6.5
11.1
2.1
1.3
7.9

38.3
15.7
7.3
8.9
-3.9
2.5
7.9

4.0
3.5
1.5
-1.2
-1.0
.3
.9

15.9
3.5
1.7
3.6
1.7
.4
4.9

9.7
3.7
1.5
3.0
-.1
.3
1.2

14.3
4.3
1.7
5.6
1.5
.3
1.0

5.0
3.7
1.7
-1.2
-1.2
.4
1.7

16.6
4.1
2.1
4.0
-.3
.6
6.0

8.4
4.0
1.8
2.0
-1.2
.9
.9

8.3
3.8
1.8
4.0
-1.2
.6
-.7

56.1

61.5

57.1

57.9

16.2

4.5

18.4

18.0

16.5

1.8

21.5

18.1

^

*

!

Noncorporate business construction

24

28

66.5
11.5
32.5
-2.4
.9
-1.3
1.1
-2.1
4.0
2.5
-7.4

2.3
15.2
.4

6
7
8

Currency and demand deposits

54.4
3.1
19.1
10.5
.6
2.6
4.2
2.1
2.0
3.7
-4.7

19.5
70.8
.4

2

*

Noncorporate business construction

Mortgage debt on nonfarm homes
Noncorporate business mortgage debt

Individuals' saving (1+26-31)


Less than $50 million.
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Federal Reserve Bank of St. Louis

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1.6
1.4
.6
-.2
.9
-3.4

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