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SECURITIES AND EXCHANGE COMMISSION
Washington, D C.

STATISTICAL SERIES
For Release

September 10, 1964

VOLUME AND COMPOSITION OF INDIVIDUALS' SAVING, APRIL-JUNE, 1964.
Individuals saved $7.7 billion in financial form 1/ during the second
quarter of 1964, according to estimates made public today by the Securities and
Exchange Commission. This was the highest quarterly total in the post-war
period and reflected the major increase in disposable personal income largely
due to the recent reduction in taxes. The amount of saving was $1.2 billion
more than in the first quarter and $4.3 billion greater than in the same period
of 1963. The highest previous amount of saving was $7.5 billion in the first
quarter of 1962.
Among the financial assets of individuals to which substantial additions
were made during the second quarter were currency and bank deposits, shares in
savings and loan associations, and government obligations including tax-exempt
issues. Acquisitions of mutual fund shares were the largest in two years, and
as in the previous quarter, liquidations by individuals of other stockholdings
were less than at any time in three years, with widespread interest in the
large A.T. & T. stock offering and the Communications Satellite Corporation
flotation. Individuals' equity in private and government insurance and pension
reserves also increased considerably, in line with the general economic expansion. During the second quarter individuals' indebtedness, an offset to saving,
rose seasonally from the previous period, the growth being slightly more than
in the same quarter of 1963.
Saving in currency and bank deposits amounted to $3.8 billion in the
second quarter compared to $2.3 billion in the same period of 1963. A contraseasonal growth of $400 million in individuals' checking accounts occurred,
as against a decline of $1.6 billion in the second quarter of 1963. Currency
holdings followed the usual seasonal pattern, increasing $1.2 billion. However,
individuals' time and savings deposits at commercial and mutual savings banks
grew less than in any quarterly period since the shift to higher interest rates
on these deposits in January 1962. The increase was $2.2 billion, $400 million
less than in the first quarter of this year and $300 million less than in the
second quarter of last year. Investments in savings shares at savings and loan
association and credit unions increased $3.3 billion, the same as in the second
quarter of 1963.
Aside from their purchases of investment company shares, which amounted
to almost $500 million in the second quarter, there was a liquidation of $200
million in preferred and common stockholdings of individuals (including personal

1/ Individuals' financial saving, in addition to personal holdings, covers
saving of unincorporated business, trust funds and nonprofit institutions, and
includes saving in the form of securities, currency and bank deposits, saving
and loan association and credit union shares, and insurance and pension reserves,
net of the increase in individuals' debt.



-2-

S-1999

trust funds). This was the same as in the preceding quarter. The liquidation
in the first two quarters of 1964 was much less than in any quarterly period
since mid-1961, and was primarily related to the two flotations mentioned
above, A.T. & T. and Comsat issues.
Ownership of U. S. Government marketable securities by individuals
rose $600 million in the second quarter, mostly nonguaranteed federal agency
issues. Net purchases of U. S. Savings Bonds, Series E and H, amounted to
$300 million, the same as the preceding quarter but lower than in the comparable 1963 period. Holdings of tax-exempt issues grew by $900 million,
chiefly reflecting a large volume of state and municipal offerings. Individuals' holdings of corporate bonds rose $100 million compared to a $400
million decline in the preceding quarter.
Equity of individuals in private insurance and pension reserves rose
$3.0 billion in the second quarter. Insured life and pension reserves together
increased $1.7 billion as against $1.5 billion in the second quarter of 1963,
while noninsured pension funds grew by $1.2 billion, slightly higher than in
the comparable period of 1963. Government insurance and pension reserves
showed a record growth of $3.2 billion partly due to the annual payments of
self-employed workers to the social security fund and also reflecting a reduction in unemployment benefit payments.
Individuals1 indebtedness rose by $7.5 billion in the second quarter of
1964, $300 million greater than in the same period one year ago. Mortgage debt
increased $4.1 billion compared to $3.8 billion in the second quarter of 1963,
mainly in response to the larger investment this year in one-to-four-family
homes. Individuals' consumer indebtedness rose $2.6 billion during the second
three months in contrast to a $700 million seasonal decline in the first three
months of the year. During the second quarter new installment credit extensions and repayments reached record levels. Net loans on securities amounted
to $900 million, almost half of which was to finance dealers in U. S. Government securities, and the balance to finance new stock purchases.
Other concepts of saving
Besides the concept of saving presented here, there are other concepts of
individuals' saving with different degrees of coverage currently in use. The
personal saving estimate of the Department of Commerce is derived as the difference between personal income (after taxes) and expenditures. A complete reconciliation of the Securities and Exchange Commission and Commerce Department
series appears annually in the July issue of the Statistical Bulletin of the
Securities and Exchange Commission and in the Survey of Current Business.
The Federal Reserve Board's flow-of-funds system of accounts includes
capital expenditures as well as financial components of saving and covers saving
of Federal, state and local governments, businesses, financial institutions and
consumers. While the Federal Reserve Board's estimates are similar to the
Securities and Exchange Commission estimates of individuals' saving, there are
some statistical and conceptual differences in the two sets of data.







S-19V9

SAVING BY INDIVIDUALS IN THE UNITED STATES 1/
1961 - 1964
(Billions of dollars)
1961

1962

1963
!

Type o f S a v i n g
Mr.

Apr.June

1963
1 July- :
1 Sept.
;
I

oct.—

1964
Apr.
Jen. - |
Mar.

!

8.7

18.0

17.5

3.2

2.3

.5
- .7
8.8

.9
2.2
14.9

1.9
4.8
10.9

- .4
- .2
3.8

1.4
-1.6
2.5

2.

9.4

10.0

11.8

3.2

3.3

3.

.9

.5

- .9

- .3

1.

a.

c.
d.

U. S. savings bonds
(1) Series B & H
(2) Other
State end local government..
Corporate end other
(2) Investment company shares 4/

4.

Prlvete ineurence end pension reeervee
b.

5.

Insured pension reserves

c.

Securities loans 9/

Met flnenciel saving (1+2+344+5-6)

8.
9.

10.
11.

.9

1.3
- .5
-1.5
1.1
.5
.1
2.7
-2.3

.9
- .5
.6
.3
-2.2
- .2
1.8
-3.8

1.6
- .4
.5
1.5
-2.8
.2
1.2
-4.1

.5
.1
,3
.3
.6
.1
.3
- .8

2/
3/
4/
5/
6/
2/
8/
9/
10/

JJL
i
1

1.5

10.2

10.8

11.2

2.6

2.6

4.4
1.4
4.4

5.0
1.4
4.4

4.9
1.7
4.7

1.0
.4
1.2

1.1
.4
1.1

.4

i

"i.i

i

*

i ::X

1
,

6.5

: a
"T

3.7

1

*l

;

1

1.1

3.0

4.4

*

2.8

19.6

23.2

1.5

7.3

11.9
1.5
1.0

13.4
5.0
1.1

15.9
6.3
.9

3.5
- .7
-1.3

3.8
2.5
.9

1

'

15.9

21.2

22.3

6.6

3.4

17.9

18.3

4.4

3.9

3.3

3.5

3.7

.8

.8

43.7

48.4

52.1

11.4

79.7

91.1

96.3

23.2

1.1

1
1 1-5
1 6.3

14.4

16.8

«

1

l4.0

• -:i
i

!\i

.3
- .1
1.0
.2
- .3
- .4
.3
- .2

1.5

1.3
.4
1.3

1 v?
1
1 .1

2.1

.4

1

.

1

::

i

i
1

f
1
•

1
1

- -2
3.0

1.3
i::
3.2

2.4

7.5
4.1

3.0

3.7
- .7
- .6

I

6.5

1

7.7

5.3

4.8

T

4.2

*•*

5

*
.L5-5

1
j i.o

12.9

j 11.6

| 16.2

12.6

21.1

| 24.0

J 28.1

24. t

J

2.2

1

8.1

1l
1 *°
1

1

!

I

|

• l:i
j ' T T "

3.0

,

3.8

1.2

3.2

'

1

2.5

I

:l1I

6.8

1.8
- .1
- .1
2.6

1

I

j -1.4

1
*
1/

- .3

1

-

Construction end equipment of nonprofit
Consumer durable goods

'

5.5

1

Government Ineurence end pension

6.

7.

-

1
1

.9

i

1

2

:S

1.0

I

14.2

'

27.0

i

Indicates less than $50 million.
Includes unincorporated business saving of the types specified. Figures ere rounded and will not necessarily add to totals, the foregoing data
have been compiled by the Commission from many different source#. Because of the nature of the figures, current date are necessarily eatiwtea,
and, therefore are subject to revision.
Includes shares in savings and loan associations and shares and deposits In credit unions.
Includes oonguaranteed Federal agency securities.
Includes closed-end Investment companies es well es mutuel funds.
In eddltlon to corporate funds, includes reserves of nonprofit organisation and multi-employer plene.
Includes Sociel Security, unemployment, civil service, rellroed retirement end etete end locel retirement funds.
Mortgage debt to institutions on one-to-four-family oonfarm dwellings.
Consumer debt owed to corporations, largely Attributable to purcheee of automobiles end other dureble consumer goods, elthough including some debt
arising from purchases of consumption goods. Policy loans on government end prlvete life Insurance have been deducted from thoee items of saving.
Change in bank loans to brokers and dealers and others made for the purpose of purchasing or carrying securities.
Construction of one-to-four-family nonfarm dwellings.