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For R e l e a s e in AFTERNOON Newspapers of Thursday, S e p t . 21, 1944 S E C U R I T I E S AMD! EXCHANGE! C O M M I S S I O N Philadelphia STATISTICAL SERIES R e l e a s e No. 7 4 5 ' VOLUME AND COMPOSITION OF! INDIVIDUALS' SAVING, I n d i v i d u a l s c o n t i n u e d to save a t a very high r a t e in the second q u a r t e r o f 1944, a c c o r d i n g t o t h e q u a r t e r l y a n a l y s i s o f s a v i n g by i n d i v i d u a l s - 1 / i n t h e U n i t e d S t a t e s made p u b l i c t o d a y by t h e S e c u r i t i e s and E x c h a n g e Commission. T o t a l l i q u i d s a v i n g d u r i n g t h i s q u a r t e r amounted t o $ 8 . 8 b i l l i o n . 2 / T h i s r a t e o f s a v i n g , h o w e v e r , was somewhat l o w e r t h a n i n t h e p r e v i o u s q u a r t e r i n s p i t e o f an i n c r e a s e i n income a f t e r p a y m e n t o f t a x e s . T h i s r e s u l t r e f l e c t s the normal s e a s o n a l d e c l i n e in the r a t e of s a v i n g d u r i n g the second q u a r t e r o f t h e y e a r b u t may a l s o i n d i c a t e a c o n t i n u e d t e n d e n c y f o r i n d i v i d u a l s t o s a v e a s m a l l e r p r o p o r t i o n o f t h e i r income a f t e r t a x e s . Thus- t h e r a t i o o f s a v i n g t o income a f t e r t a x e s ' h a s shown a> s m a l l b u t r a t h e r s t e a d y d e c r e a s e over the p a s t year in c o n t r a s t to the .rapid i n c r e a s e p r i o r to t h a t time. The c o m p o s i t i o n o f s a v i n g i n t h e s e c o n d q u a r t e r o f 1944 was s i m i l a r t o that in preceding quarters. D u r i n g the> t h r e e months i n d i v i d u a l s added $ 3 . 6 b i l l i o n t o t h e i r h o l d i n g s o f U . S . Government s e c u r i t i e s ; $ 3 . 4 b i l l i o n t o t h e i r c a s h and d e p o s i t s ; $ 1 . 1 b i l l i o n t o t h e i r e q u i t y i n Government i n s u r a n c e ; and $800 m i l l i o n t o t h e i r e q u i t y i n p r i v a t e i n s u r a n c e , m o s t l y l i f e i n s u r a n c e . At t h e same t i m e , i n d i v i d u a l s r e d u c e d t h e i r h o l d i n g s o f c o r p o r a t e s e c u r i t i e s by $300 m i l l i o n . U . S . Government s e c u r i t i e s were a g a i n t h e l a r g e s t component o f i n d i v i d u a l s ' s a v i n g w i t h c a s h and d e p o s i t s a c l o s e s e c o n d . However, t h e r a t e o f i n d i v i d u a l s ' a c c u m u l a t i o n o f c a s h and d e p o s i t s was c o n s i d e r a b l y h i g h e r t h a n i n t h e f i r s t q u a r t e r w h i l e t h e i r n e t p u r c h a s e s o f U.S. Government s e c u r i t i e s w e r e c o n s i d e r a b l y l o w e r . T h i s was p a r t l y due t o t h e f a c t t h a t t h e F o u r t h War Loan D r i v e f e l l c o m p l e t e l y w i t h i n t h e f i r s t q u a r t e r o f 1944 w h e r e a s t h e tfifth War Loan D r i v e was n o t c o n f i n e d e n t i r e l y t o t h e s e c o n d q u a r t e r . The s u b s t a n t i a l growth i n i n d i v i d u a l s ' c a s h and d e p o s i t s d u r i n g t h e s e c o n d q u a r t e r o f 3 0 4 4 r e f l e c t e d a r e c o r d i n c r e a s e i n t i m e and s a v i n g s d e p o s i t s , a m o u n t i n g t o $ 1 . 8 b i l l i o n , and a l a r g e r i s e i n c u r r e n c y , a m o u n t i n g t o $ 1 . 5 b i l l i o n . Demand d e p o s i t s showed v i r t u a l l y no c h a n g e , a r e s u l t c h a r a c t e r i s t i c o f r e c e n t q u a r t e r s i n which t h e r e h a v e been war l o a n d r i v e s . 1 / In t h i s a n a l y s i s i n d i v i d u a l s ' saving i n c l u d e s u n i n c o r p o r a t e d b u s i n e s s saving of types s p e c i f i e d in the a t t a c h e d t a b l e . C o r p o r a t e and Government s a v i n g a r e .not i n c l u d e d . The c h a n g e i n i n d i v i d u a l s ' e q u i t y i n Government i n s u r a n c e .is, h o w e v e r , c o n s i d e r e d as p a r t o f i n d i v i d u a l s ' s a v i n g . 2/ This does n o t r e f l e c t ( n e t o f the change i n of t h i s change i s n o t the second q u a r t e r of t h e change i n i n v e n t o r i e s o f u n i n c o r p o r a t e d b u s i n e s s n o t e s .and a c c o u n t s p a y a b l e ) . A l t h o u g h t h e amount known, i t i s b e l i e v e d t o h a v e b e e n n e g l i g i b l e i n 1944. T o g e t h e r c a s h and d e p o s i t s and U#S. Government s e c u r i t i e s a g a i n a c - * counted for the g r e a t e r p a r t of t o t a l ^ r r e f l t At t h e t i m e o f o u r e n t r y i n t o t h e war a t t h e end o f 1941* a c c u m u l a t e d s a v i n g i n t h e s e two h i g h l y l i q u i d f o r m s was a l r e a d y a t t h e . h i g h e s t p o i n t i n h i s t o r y . Since t h a t time, i n t h e c o m p a r a t i v e l y s h o r t p e r i o d o f two and o n e - h a l f y e a r s , £uch a c c u m u l a t e d s a v i n g h a s shown an i n c r e a s e o f c l o s e t o 100#* As o f J u n e 30, 1944 i n d i v i d u a l s 1 h o l d i n g s o f c a s h and d e p o s i t s and U . S . Government s e c u r i t i e s amounted t o t h e u n p r e c e d e n t e d t o t a l s o f $84 b i l l i o n a n d $46 b i l l i o n , r e s p e c t i v e l y . Of t h e . t o t a l o f c a s h and d e p o s i t s , $20 b i l l i o n was i n c u r r e n c y , $35 b i l l i o n i n t i m e d e p o s i t s , and $29 b i l l i o n i n demand d e p o s i t s . Individuals1 holdings o f U . S . Government s e c u r i t i e s were m a i n l y c o n c e n t r a t e d i n U . S . s a v i n g s b o n d s , a m o u n t i n g t o . $ 5 1 b i l l i o n o f t h e t o t a l , w i t h o t h e r U . S . Government s e c u r i t i e s a c c o u n t i n g f o r $15 b i l l i o n . Of t h e r e m a i n i n g components- o f . I n d i v i d u a l s 1 , s a v i n g i n t h e s e c o n d q u a r t e r o f 1944, p r i v a t e a n d Government i n s u r a n c e c o n t i n u e d t o grow a t t h e / s a m e h i g h r a t e as i n p r i o r q u a r t e r s . T h e r e was a s m a l l i n c r e a s e i n consumer i n d e b t e d ness, r e f l e c t i n g the t a i l i n g o f f of debt r e t i r e m e n t , in sharp c o n t r a s t to the l a r g e s a v i n g i n t h i s form w h i c h c h a r a c t e r i z e d t h e e a r l i e r war p e r i o d . F i n a l l y , i n d i v i d u a l s * h o l d i n g s o f c o r p o r a t e s e c u r i t i e s d e c r e a s e d by $300 m i l l i o n due f o r ; t h e m o s t p a r t t o t h e s u b s t a n t i a l d e b t r e t i r e m e n t by c o r p o r a tions, D u r i n g t h e war p e r i o d a s a whole t h e r e h a s b e e n l i t t l e c h a n g e i n i n d i v i d u a l s * h o l d i n g s o f c o r p o r a t e s t o c k s and b o n d s . However, a s o f J u n e 30* I 9 4 4 , t h e m a r k e t v a l u e ,of c o r p o r a t e s e c u r i t i e s h e l d by i n d i v i d u a l s s t i l l e x c e e d e d t h e i r a c c u m u l a t e d s a v i n g i n any o t h e r f o r m . 3 -74,3 — 3 - Gross Saving by Individuals in the United States 1/ 1940 - 1944 (Billions of dollars) 1940 1941 1942 — — — 1943 ' Apr.- July- Oct.— June Sept. Dec. 1944 Jaru- Apr.March June 15.3 4.0 24.3 10.5 38.6 29.3 45.5 37.9 11.2 9.3 11.7 9.8 12.0 10.0 • 3.0 + 4.9 +11.4 +15.3 • 2.9 • 2.9 • 5.9 • 2 . 1 + 3.4 + + + 1#7 1.2 2#9 + 2.1 + 2.5 + 1.8 + 2 . 4 + 3.8 + 4.9 • 3.1 • 3.8 + 6.9 • .8 • .7 • 1.0 • 1.0 • 1 . 8 • 1.7 • .8 • 1.0 + 1.8 • .9 + .8 + 1.0 + 1 . 1 • 1 . 9 • 1.9 + .9 •4 + 8.0 + 1.9 • 5 - .5 #2 + 2 . 9 +11.1 • 2.7 + .1 + .3 0 +10.1 +13.9 + 3.0 • 3.4 * 1.2 + 1.6 + .1 0 0 - .3 + 4.1 + 4.8 • 2.2 - .2 0 + .2 + 2.2 • 3.9 + • 1.1 • - .1 - .1 • 4.8 • + + + 2,5 + 3.0 •9 + . 9 1#7 + 2 . 1 + 1.6 • 1 . 0 + .1 - .4 * 1.5 + 1.4 + #2 • - .i + .3 + + to CO +10.8 • 7.6 • 6.6 + 1.7 * 1.7 + 1.8 • 1.6 1.1 — .6 • 2.8 + + + .1 — .2 * Gross Saving Liquid Saving 2 / Gross Saving by Type 1# Currency and bank deposits 2# Savings and loan associations 3# Insurance and pension reserves a# Private insurance b# Government insurance c# Total 4# S e c u r i t i e s 3 / a# U.S. Savings bonds b# Other U.S. Government c# S t a t e and l o c a l governments d# Corporate and other e# Total 5# Non-farm dwellings a . Purchases 4 / b# Change i n debt c# Saving (a# minus b.) 6# Automobiles and other durable consumers1 goods 5 / 7# Liquidation of deEt, not elsewhere c l a s s i f i e d 6 / 1943 - + 2.3 + .8 .8 .2 .3 • .3 .1 - .1 .4 + .4 10.8 8.8 11.1 9.3 • • 2.6 1.0 0 .3 3.3 .2 • .2 .1 0 . 4 + t>2 + 1.8 .3 - 1/ ~ 2/ "" 3/ ™* 4/ .1 Includes unincorporated business saving of the types specified* Does not include corporate or government saving* Gross saving excluding purchases of homes as well as of automobiles and other durable consumers1 goods# Does not include net purchases by brokers and dealers or by other individuals financed by bank loans • New construction of one- to four-family nonfarm homes l e s s n e t a c q u i s i t i o n of properties by non-individuals# 5 / Purchases# Based on revised Department of Commerce data# The f i g u r e s shown above include a l l ~ new passenger cars sold i n the United States# 6 / Largely a t t r i b u t a b l e to purchases of automobiles and other durable consumers 1 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 to the a s s e t s t o which they p e r t a i n , viz#, saving i n savings and loan a s s o c i a t i o n s , insurance, s e c u r i t i e s and hemes. Note; Figure,j are rounded and w i l l not necessarily add t o t o t a l s # The foregoing data have been compiled by the Commission from mary 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 a r e n e c e s s a r i l y estimates and, t h e r e f o r e , a r e s u b j e c t t o revision# *—oOo—"* ••
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