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For Release i n MORNING Newspapers of Monday, October 31, 1955
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C.
STATISTICAL SERIES
Release No. 13k0
VOLUME AND COMPOSITION OF INDIVIDUALS' SAVING, APR.-JUNE 1955 1 /
Estimates of saving during the second q u a r t e r of 1955 showed t h a t
i n d i v i d u a l s added $500 m i l l i o n more t o t h e i r debts than t o t h e i r f i n a n c i a l
a s s e t s , according t o data r e l e a s e d today by the S e c u r i t i e s and Exchange
Commission. 2 j
Saving i n t h e form of s e c u r i t i e s , savings and loan a s s o c i a t i o n s h a r e s ,
insurance and savings d e p o s i t s i n banks continued t o expand* However, these
savings were o f f s e t by a record q u a r t e r l y growth both i n i n d i v i d u a l s 1 mortgage debt and consumer indebtedness, r e f l e c t i n g the high l e v e l of r e s i d e n t i a l b u i l d i n g and consumer spending. During t h e second q u a r t e r , home
c o n s t r u c t i o n including a l t e r a t i o n and a l s o c o n s t r u c t i o n by n o n - p r o f i t
i n s t i t u t i o n s , amounted t o $4.3 b i l l i o n . Purchases of automobiles and other
durable goods amounted t o $ 9 . 1 b i l l i o n .
I n d i v i d u a l s ' n e t purchases of corporate s e c u r i t i e s amounted t o $700 m i l l i o n during t h e second q u a r t e r , s l i g h t l y lower than e i t h e r t h e f i r s t q u a r t e r
of t h e y e a r or t h e second q u a r t e r of 1954. These investments were p r i m a r i l y
i n debt s e c u r i t i e s which, however, included a l a r g e amount of debenture i s s u e s
c o n v e r t i b l e i n t o common s t o c k . During the second q u a r t e r , n e t new bond i s s u e s
t o t a l l e d $ 1 . 3 b i l l i o n of which almost o n e - t h i r d were c o n v e r t i b l e debentures.
Of t h e t o t a l debt i s s u e s , i t i s estimated t h a t i n d i v i d u a l s bought almost
$800 m i l l i o n while $500 m i l l i o n was absorbed by i n s t i t u t i o n a l i n v e s t o r s . Although about $200 m i l l i o n of common and p r e f e r r e d stock was added t o i n d i v i d u a l s '
accounts during t h e second q u a r t e r , borrowing on corporate s e c u r i t i e s increased
by $250 m i l l i o n , r e s u l t i n g i n a small r e d u c t i o n i n i n d i v i d u a l s ' e q u i t y i n
stock h o l d i n g s . I n a d d i t i o n t o t h e i r investment i n c o r p o r a t e s e c u r i t i e s ,
i n d i v i d u a l s added t o t h e i r saving $400, m i l l i o n of s t a t e and l o c a l bonds and
$100 m i l l i o n of U. S . Savings bonds. Their holdings of other U. S . Government
o b l i g a t i o n s were reduced by $250 m i l l i o n ,
E q u i t y i n p r i v a t e insurance rose by $1.3 b i l l i o n , $100 m i l l i o n more than
i n t h e s i m i l a r p e r i o d of 1954* Saving try i n d i v i d u a l s through i n c r e a s e d
e q u i t y i n Government insurance, i . e . , S o c i a l S e c u r i t y f u n d s , e t c . , amounted
t o $1.2 b i l l i o n , t h e h i g h e s t i n t h r e e y e a r s , r e f l e c t i n g n o t only l a r g e r app r o p r i a t i o n s t o the v a r i o u s t r u s t funds during t h e p e r i o d but a l s o reduced
unemployment b e n e f i t payments.

1 / I n d i v i d u a l s ' saving, i n a d d i t i o n t o personal h o l d i n g s , covers saving of
unincorporated b u s i n e s s , t r u s t and pension f u n d s and n o n - p r o f i t i n s t i t u t i o n s
i n t h e forms s p e c i f i e d .
2/ This s e r i e s i s no longer designated as " l i q u i d saving" b u t i s shown i n the
accompanying t a b l e , item 9 , as "change i n n e t claims" of i n d i v i d u a l s . This

end the change in the placement off the government insurance item are

t e n t a t i v e . The changes have been made because t h e s e r i e s has f r e q u e n t l y ,
but i n c o r r e c t l y , been taken t o measure saving r e a d i l y a v a i l a b l e i n cash

http://fraser.stlouisfed.org/
-form.
Federal Reserve Bank of St. Louis

- 2 -

S - 1340

New investment i n savings and loan a s s o c i a t i o n s shares a l s o was a t
record l e v e l s , amounting t o $ 1 , 4 b i l l i o n during the second q u a r t e r of t h i s
year.
'

Holdings of currency and bank d e p o s i t s of i n d i v i d u a l s i n c r e a s e d by
$200 m i l l i o n , compared w i t h an i n c r e a s e of $1.4 b i l l i o n i n t h e second q u a r t e r
of 19 5U. The s m a l l e r saving t h i s year was due t o a drop of $ 1 . 1 b i l l i o n i n
checking accounts, i n p a r t r e f l e c t i n g the new income t a x payment d a t e . Time
deposits grew by $900 m i l l i o n , a somewhat lower r a t e of i n c r e a s e than i n
r e c e n t q u a r t e r s . On t h e other hand, currency holdings of i n d i v i d u a l s r o s e by
$300 m i l l i o n , the h i g h e s t second q u a r t e r s i n c e 1952.
Mortgage debt of i n d i v i d u a l s i n c r e a s e d by $3.3 b i l l i o n during t h e t h r e e
months April-June 1955. This was 18 percent g r e a t e r than t h e previous r e c o r d
during t h e f o u r t h q u a r t e r of 195U, and 62 p e r c e n t g r e a t e r when .compared w i t h
the second q u a r t e r of 19 5U. As noted above, home c o n s t r u c t i o n was a t a r e c o r d
l e v e l , t h e value of new non-farm dwellings completed being almost $ 1 . 0 b i l l i o n
g r e a t e r t h a n i n the second q u a r t e r of 195U»
Consumer indebtedness i n c r e a s e d by $2.2 b i l l i o n , exceeding by a small
margin t h e previous r e c o r d expansion i n t h e f o u r t h q u a r t e r of 1952. This
l a r g e r i s e i n c r e d i t was concentrated i n i n s t a l l m e n t debt and was c h i e f l y
due t o t h e exceedingly l a r g e s a l e s of automobiles purchased an tiume.

'
i
|
'

Besides the concept of saving presented h e r e , t h e r e a r e o t h e r concepts
of i n d i v i d u a l s ' saving with d i f f e r e n t degrees of coverage c u r r e n t l y i n ude.
The s e r i e s with t h e most complete coverage, the p e r s o n a l saving e s t i m a t e s
of t h e Department of Commerce, i s derived as t h e d i f f e r e n c e between p e r s o n a l
income and expenditures» Conceptually, Commerce saving i n c l u d e s t h e f o l l o w ing items n o t included with S.E.C. gross saving* unincorporated b u s i n e s s and
farm items such as n e t p l a n t and equipment, changes i n n e t r e c e i v a b l e s and
changes i n i n v e n t o r i e s . Government insurance and consumer dura bles are e x cluded from Commerce saving which, i n a d d i t i o n , r e f l e c t s d e p r e c i a t i o n on
homes. 3 /
A more r e s t r i c t e d concept of i n d i v i d u a l s ' saving i s t h e s e l e c t e d item
s e r i e s of t h e Home Loan Bank Board. This s e r i e s covers t h e f o l l o w i n g components included i n S.E.C s a v i n g : time and savings d e p o s i t s , savings and
loan a s s o c i a t i o n s , p r i v a t e l i f e insurance, and U. S . savings bonds.

3 / For a complete r e c o n c i l i a t i o n see Table 6 i n the J u l y 1955 i s s u e of t h e
Survey of Current Business#



Table 1
Saving by Individuals i n the United S t a t e s l /
1952 -

1955

( B i l l i o n s of d o l l a r s )
Type of Saving
1.

1952

1953

195b

Apr.June

1951i
JulySept.

1955
1
1

Oct.Dec.

Jan.Mar.

3.6
-0.1
2.8
1.0

|
-

j

U.o

1
,
,

0.8
2.U
0.8

-1.1
—0.8
-1.3
1.0

Currency and bank d e p o s i t s
a . Currency
b . Demand deposits
c . Time and savings d e p o s i t s

6.8
1.1
1.5

ii.8

U.2

4.2

6.8
-0.3
2.7
UoU

2.

Savings and loan a s s o c i a t i o n s

3.1

3.6

U.5

1.3

,

0.7

|

l.li

3.

Private insurance

k.9

5.2

5.3

1.2

|

1.3

I

U.

Securities 2/
a . U . S . savings bonds
b . Other U. S . Government
c . S t a t e and l o c a l government
d . Corporate and other

U»0
0.1
(*)
0.8

5.1

1.6

0,8
-2.5

-1.0
0.1

!

0.7

3.1

2.5

2.6

1
1
|

—l.U

2.0

0.2
0.2
-1.3
0.5
0.8

!

0.3
0.3

-0.3
0.6

1

1
1

-2.1+

0.6
(*)

1!

5.

Liquidation of mortgage debt 3 /

-6.3

-7.0

-8.6

-2.0

6.

Liquidation of debt not elsewhere
c l a s s i f i e d k/

-3.8

-3.2

—0oU

—0.6

1
1

l.U

I
1

Subtotal ( 1 through 6)

7.

8,5

9.2

1.1

j

I.U

1.6

1.5

!

le3

0.5
0.2
w

1

-0.1

2.0
0.3
0.7
0.2
0.8

1
1
1

1.0
0.1
-0.2
O.ij
0.7

1

-2.8

-2.6

1

-3.3

—0.1

1

-1.0

(*)

-2.2

2.1

1

3.7

0.9

1
1
1
1

0.U

0.3

1.2

k.i

1.2

1-0.5

U.l

3.5

;

u.3

1

8.it

7.8

1

9.1

|

16.5

12.5

l

12.9

o.ii

3.3

2.6

0.9

|

0.7

Change i n n e t claims (7 + 8)

13.0

11.8

11.9

2.2

|

2.8

!

Nonfarm dwellings 5 /

11.6

12.3

U4.1

3.U

9.

11.

Other durable consumers' goods

12.

Gross Saving (9 + 10 + 11)

NOTE:

V
2/
J/
Sy
~

26.8
51.U

29.7
53.8

28.9
54.9

U.l

7.5

1

6.8

13.1

1

13.7

1

1
1

Apr.June

]

U.3

Government insurance

1

0.2
0.3
-1.1
0.9

1

8.

10.

8.7

1

1

1

1

-1.6

1

The e a r l i e r s e r i e s designated "liquid saving" has been discontinued f o r reasons outlined on page 1 , note 2 . The change
i n net claims ( l i n e 9) i s conceptually the same as the e a r l i e r s e r i e s , I t includes a l l items t h a t are changes i n n e t
claims a g a i n s t a s s e t s regardless of degree of " l i q u i d i t y . " Figures are rounded and w i l l not necessarily add t o t o t a l s .
Asterisk (*) i n d i c a t e s l e s s than $50 m i l l i o n , The foregoing data have been compiled by the Commission from many d i f f e r e n t
sources. Because of the nature of the f i g u r e s , current data are n e c e s s a r i l y estimates and, t h e r e f o r e , are subject t o
revision.

Includes unincorporated business saving of the types s p e c i f i e d .
A f t e r deducting change i n bank loans made for the purpose of purchasing or carrying s e c u r i t i e s .
Mortgage debt to i n s t i t u t i o n s on one-to four"family nonfami d w e l l i n g s .
Largely a t t r i b u t a b l e t o purchases of automobiles and other durable consumers' goods, although including some debt a r i s i n g from
Purchases of consumption goods. The other segments of i n d i v i d u a l s ' debt have been a l l o c a t e d t o the a s s e t s t o which they p e r t a i n ,
v i z . , saving i n insurance and s e c u r i t i e s .
5 / Construction of one- t o f o u r - f a m i l y nonfarm dwellings l e s s net a c q u i s i t i o n of p r o p e r t i e s by n o n - i n d i v i d u a l s ; a l s o i n c l u d e s
a small amount of construction of n o n - p r o f i t i n s t i t u t i o n s .