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MR. SCHMIDT
For Release in M6HHNO' Newspapers of Sunday, October 5, 1952
SECURITIES AND EXCHANGE COMMISSION
Washington 25, D. C.
STATISTICAL SERIES
Release No. 1114
VOLUME AND COMPOSITION OF INDIVIDUALS® SAVING, APR.-JUNE, 1952 l/
During the second quarter of 1952 individuals in the United States saved
$1.7 billion in liquid form, according to the quarterly estimates made public
today by the Securities and Exchange Commission. This rate of saving compares
with $2.6 billion in the first quarter of this year and $3*0 billion in the
second quarter of 1951.
Individuals continued to add to their saving in more permanent types of
investments such as insurance, time and savings deposits in banks, shares in
savings and loan associations, and also substantially increased their holdings
of corporate and municipal securities. Offsetting these items of saving, in**
dividuals during the second quarter reduced their equity in U. S. Government
securities, added further to their mortgage indebtness, and also incurred a
large amount of other debt in connection with purchases of consumersf goods.
Insurance again constituted the largest component of liquid saving,
amounting to $2.0 billion. This was about equally divided between individuals*
equity in private life insurance and their equity in government insurance and
government pension reserves, including Social Security funds.
Individuals* holdings of currency and bank deposits increased by almost
$1.2 billion in the second quarter, compared with a decrease of $2.3 billion
in the first quarter and a $200 million increase in the second quarter of
1951» Time and savings deposits rose by $1.1 billion, slightly higher than in
the first quarter, and representing the largest increase in this form since the
third quarter of 1946. Currency holdings also expanded, the increase amounting
to $400 million. Against these increases, a reduction of $300 million in dew
mand deposits of individuals took place.
Investments in savings and loan associations during the second quarter
were larger than for any previous quarterly period, and amounted to over $800
million. In the preceding period, net investments of this type totalled $700
million and in the second quarter of 1951 amounted to $600 million.
Net new corporate securities issues in the second quarter of this year
amounted to $2.5 billion, a higher rate than at any time since 1929. Although
institutional investors absorbed the bulk of these securities, individuals*
net equity increased by $600 mil lion. This was less than in the two preceding
quarters but was still substantially above the rate of saving in this form
that prevailed prior to 1951. In addition to their increased holdings of
l/
~
~

Individualsf saving in addition to personal holdings, covers saving of un«*
incorporated business, trust and pension funds and nonprofit institutions
in the forms specified. Liquid saving comprises saving in the form of currency and bank deposits, equity in savings and loan associations, private
and government insurance, securities, and repayment of mortgage debt and
other consumer debt.




m2»*

corporate securities, individuals* equity in state and municipal securities
rose by $500 million, reflecting the large volume of these issues which have
been offered especially in connection with the building of new highways and
schools..
U. S. Savings bonds held by individuals remained practically unchanged
during the second quarter. While more attractive terms were provided for
Savings Bonds beginning May 1, investors* response with higher purchases was
not sufficient to offset redemptions during the quarter. Holdings of other
U. So Government issues decreased by almost $800 million due in part to a
shifting in investment funds incident to the large Treasury financing com**
pleted on July 1.
Mortgage debt of individuals increased by $1.4 billion in the second
quarter, following a seasonal increase in new home constructione Other
consumer debt, primarily instalment credit, also rose by $1.3 billion, in
part because of seasonal influences, and also because of suspension in early
May of Regulation ¥ governing minimum down payments and maximum repayment
periods on automobiles and household goods.




Saving by Individuals in the United States 1/
1940 - 1952
(Billions of dollars)
1949

1950

1951

Mar.

1951
July
Apr.
June
St#.

-1.3
-1.3
0.9

4.2
(*)
3.8
0.5

5.8
0.8
3.1
2.0

*2.2
-0.8
*1.3
-0.2

0.2
1.1
-1.6
0.7

4.1
-0.2
3.8
0.5

3.7
0.6
2.2
0.9

-2.3
*0.3
-3.0
1.0

1.2
0*4
-0.3
1,1

1.2

1.5

1.5

2.1

0.3

0.6

0.4

0.7

0.7

0.8

7.1
3.6
3.5

7.3
3,7
3.6

6.1
3.7
2.3

5.2
3.9
1.3

8.0
4.2
3.8

2.0
1.1
0.9

2.0
0.9
1.1

2.0
1.0
1.0

2.1
1.2
0.9

2.2
1.2
0.9

2.0
1.1
1.0

0.9
0.9
-0.4
<*0.2
0.7

3.6
1.8
0.5
0.4
0.9

3.2
2.1
-1.5
1.1
1.5

2.8
1,5
-0.4
0.6
1.1

0.7
0.6
-1.5
0.5
1.2

3.5
"0.4
-0,2
0.8
3.3

0.7
-0.2
0.2
0.1
0.7

1.6
-0.2
0.1
0.5
1.1

0.2
-0.1
-0.1
(*)
0.5

1.1
0.1
-0.4
0.3
1.0

2.1
0.1
0.8
0.3
1.0

0.3
(•)
-0.8
0.5
0.6

W).2

-3.7

*#4.5

-4.6

*3,3

*7.0

-5.7

*1.4

-1.6

-1.4

-1.3

-1.2

-1.4

-0.2

-0.8

-3.3

-3.4

—2.5

-2.3

-3.2

-0.4

0.8

0.2

-0.1

-1.3

1.1

-1.3

39.0

41.4

37.0

12.6

6.0

2.8

2.9

1.5

13.4

0.1

3.0

5.3

5.0

2.6

1.7

2.0 |

1.2

1.0

1.2

4.1

6.2

8.5

8.1

12.6

11.5

2.7

2.9

3.0

2.8

2.3

2.9

7.1 |

6.8

7.1

8.5

16.6

21.4

22.9

23.9

29.2

26.8

6.9

6.3

6.2

7.4

5.5

6.4

49.6

46.7

33.4

33.5

34.1

34.9

43.2

51,7

9.8

12.2

14.5

15.2

10.4

10.9

1940

1941

1942

1943

1944

1945

1946

1947

1948

Currency and bank deposits
a. Currency
b. Demand deposits
c. Time and savings deposits

2-9
0.8
1.5
0.7

4.8
2,2
2.6
(*)

11.0
4.1
6.1
0.8

16.2
4.7
7.1
4.3

17.5
4.6
5.9
7.1

19.1
3.0
7.3
8.8

10.6
0.1
5.2
5.3

2.0
-0.4
0.2
2.2

-1.8
*0.5
-2.2
0.8

2.

Savings and loan associations

0.2

0.4

0.3

0.6

0.8

1.1

1.2

1.2

3.

Insurance
a. Private
b. Government

3.1
1*8
1.3

4.0
2.1
1.9

5.0
2.5
2.6

6.8
2.8
3.9

8.2
3.2
5.0

8.6
3.5
5.1

7.0
3.4
3.5

4.

Securities 2/
a. U. So savings bonds
b. Other IT. S. Government
c. State and local government
d. Corporate and other

*0.2
0.9
-0.4
^0.5
-0.2

2.8
2.8
0,7
-0.3
*0.4

10.2
8,0
2.4
-0.2
0.1

13.8
11.1
3.0
-0.1
~0.2

15.0
H.8
3.9
(*)
-0.7

9,4
6.9
3.6
-0.2
=*0 = 9

5,

Liquidation of mortgage debt 3/

-1,0

-0.8

-0.1

0.4

0.1

6.

Liquidation of debt not elsewhere classified 4/

-1.2

-1.0

3.3

1.3

4.0

10.3

29.7

3.4

3.9

7.9

9,8

15.2

23.9

Type of Saving
1.

7.

Total liquid saving

8.

Nonfarm dwellings

9.

Other durable consumers* goods 6/

10.

Total Gross Saving

5/

38.8

j

47.0

s=»0.8

Oct.Dec.

1952
Jan,- Apr.Mar.
June

1/

Includes unincorporated business saving of the types specified.

2/

After deducting change in bank loans made for the purpose of purchasing or carrying securities =

3/

Mortgage debt to institutions on cne-to four-family nonfarm dwellings.

4/

Largely attributable, to purchases of automobiles and other durable consumers* goods? although including some debt arising from purchases of consumption goods.
The other segments of individuals8 debt nave been allocated to the assets to which th?.y pertain, viz -. saving in savings and loan associations, insurance and
securities.

5/

Construction of one—to four-family nonfarm dwellings less net acquisition of properti? * by non-individuals| also includes a small amount of construction of
nonprofit institutions.

6/

Consumer expenditures on durable goods as estimated by the Department of Commerce.

NOTE:

Figures are rounded and will not necessarily add to totals. Asterisk (#) indicates less than $50 million. 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.