Full text of E.8 Volume and Composition of Individuals' Saving : October 1954

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*

For Release in? MORNING Newspapers of Thursday, October 1, 195U
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C.
STATISTICAL SERIES
Release No. 1262
VOLUME AND COMPOSITION OF INDIVIDUALS' SAVING, APR.-JUNE, 1 9 $ ^ /
Individuals saved $3*5 billion in liquid form during the second quarter of
195U, according to estimates made public today by the Securities and Exchange Commission, about the same as in the first quarter of 195U* The high rate of saving
during the first six months of this year reflects the continued high level of
personal income after payment of taxes.
Although there were some changes in the composition of liquid saving in the
second quarter of 19$U, saving in the more stable forms, including insurance,
savings deposits and shares in savings and loan associations, was maintained at
about the same high rate as the last few years. Individuals again, as in the
first quarter, made substantial investments in corporate securities and state and
municipal bonds, but, in contrast to the first quarter, their equity in Government
obligations, other than Savings Bonds, was greatly reduced# Currency holdings of
individuals expanded more than seasonally, while demand deposits showed only a
small decline. Offsetting the increases in liquid assets during the second quar'ter, there was a substantial rise in mortgage indebtedness of individuals and a
moderate increase in other consumer indebtedness.
Individuals' net purchases of corporate securities during the second quarter
amounted to $900 million, including $600 million of bonds and notes and $300 million of preferred and common stock. In addition, they added to their portfolios
$ W 0 million of state and local obligations and $200 million of U. S. Savings
Bonds. Holdings of other U. S„ Government issues were reduced by one billion
dollars of which $U00 million was accounted for by increased borrowings on securities, principally by brokers and dealers who are included with individual investors
in this survey.
Individuals' holdings of currency and bank deposits expanded by $2.0 billion,
the greatest increase for any second quarter since 19U6, The expansion included
a $700 million increase in currency holdings and an increase of $l,li billion in
time and savings deposits, the same as in the second quarter of 1953, A slight
decline was indicated in checking accounts of individuals, in contrast to a decline of one billion dollars in the similar period of 1953* Net new investments
in savings and loan associations amounted to a record $1.2 billion.
l/ Individuals' saving, in addition to personal holdings, covers saving of unincorporated business, trust and pension funds and non-profit institutions in
the forms specified. Individuals' 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.




S - 1262

During the second quarter, saving in the form of insurance, including private
life insurance and Government insurance and pension reserves, such as Social Security funds, totalled #2.1 billion. Of this, saving in private insurance amounted
to $1.3 billion, slightly more than the corresponding period of last year. Equity
in Government insurance increased $800 million, less than in the similar 1953
period due to substantial payments out of the unemployment trust fund.
Mortgage debt of individuals increased by $1.9 billion, a near-record amount,
while consumer indebtedness rose by $lt00 million as compared with a net repayment
of $1.5 billion in the first quarter of the. year. The increase in consumer credit
was only one-third as great as in the second quarter of 1953•
In addition to the concept of liquid saving discussed above, there are other
concepts of individuals1 saving with different degrees of coverage currently in
use. The series with the most complete coverage, the personal saving estimates of
the Department of Commerce, is derived as the difference between personal income
and expenditures. Conceptually, Commerce saving includes the following items not
included with S.E.C. liquid saving: Housing net of depreciation, unincorporated
business and farm items such as net plant and equipment, changes in net receivables
and changes in inventories. Government insurance is excluded from Commerce saving.
A more restricted concept of individuals* saving is the selected items series
of the Federal Home Loan Bank Board. This series covers the following components
included in S.E.C. liquid saving: Time and savings deposits, savings and loan
associations, private life insurance, and U. S. Savings Bonds.




Saving by Individuals in the United States!/
1950 - 195U
(Billions of dollars)
Type of Saving

1.

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

1950

1951

1952

1953

Apr.June

3.6
—0*1
3.2

Ook

6.0
0.8
3.2
2.0

7.1
1.1
1.7
1.2

U.7
0.6
-0.1
U.2

0.6
0.2
-1.0
l.U

2.

Savings and loan associations

1.5

2.1

3.1

3.7

1 . 0

3.

Insurance
a. Private
b. Government

5 . 0

8.3
U.o

k.2

9.3
U.9
U.U

8.3
5.1
3.2

2.1
1.1
1.0

0.3
-0.7
0.9
3.7

h.2

6.2
0.3
1.0
1.8
3.0

2.U
-0.3
0.9
0.6
1.2

—6.3

—6.7

-1.9

lio

5.
6.

3.9
1.1

Securities 2/
a. U. S. savings bonds
b. Other U. S e Government
Co State and local government
d. Corporate and other

2.0
0.6
-0.6
0.7

1.k

2.6
-O.U
—0.6
o.U
3.2

Liquidation of mortgage d e b t V

-7.2

-6.5

Liquidation of debt not elsewhere
classified^/

1

1
j

Oct.—
Dec.

Jan.Mar.

|
1

1

1
1

1.7
(*)

1

0.6

!

2.1
1,2

1

0.9
1.1

j

0.1
- 0 . 1

1

O.lt

1

0.7

1
i
1

-

1

-2.2
-1.1

7

0.6

!%

0.8

1

3

!
1

0.9

1

i

1951*

1953
JulySept.

!

1.1

i
|

i

;

0.2

!

0.1

1
1
|
.

"

-2.lt
1.3

j

O.lt

1

l.lt
0.6

!

2.It

i

-1.0
0.6
0.5

0.3
1.1
-1.3

-3.8

—2.8

-1.2

!

-0.5

1

;

i

1
1

-

0

.

8

2.1
1.3

0.8

0.5

0

.

2

.

9

- 1 . 0

o.U

0

5

-1.9

1.5

j

-o.U

1

1

-0.5

1 . 2

2 . 0

0 . 2
0 . 8

2.0 A/

!

1.1

j 8 -1.5

-3.2

i

Apr.June

7.

Total Liquid Saving

1.8

11.8

13.6

13.1

3.1

1

3.2

!

k'7

3.5

!

3.5

80

Nonfarm dwellings^/

12.6

11.5

11.6

12.3 .

3.2 X

1

-3.lt

|

3.2

2 . 6

!

3.3

9.

Other durable consumers' goods

29.2

27.3

26.7

30.1

7.5

!
j

7.1*

i

8

.It

6.3

10.

Total Gross Saving

U3.6

5 0 . 6

5 1 . 8

55.8

13.8

I

lll.O

16.3

12,3

1 ^

j

1

!

1U.3

l/ 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 one- to four-family nonfarm dwellings.
h/ Largely attributable to purchases of automobiles and other durable consumers1 goods, although including some debt arising from purchases
of consumption goods. The other segments of individuals1 debt have been allocated to the assets to which they pertain, viz., saving in
insurance and securities.
5/ Construction of one- to four-family nonfarm dwellings less net acquisition of properties by non-individuals; also includes a small
amount of construction of nonprofit institutions.
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.