The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1952-05-29
ToduY's
Business
Mirror
BY SAM DAWSON


ey the American people are saw
-ing-and how set they are against
cracking these nest-eggs-puzzles
lot of people.
The experts differ, even on the
amount Americans are putting
away. Some say it was II billion
dollars last year. Others say less
than seven billion.
What the thrifty ones will do
with all this money interests the
planners-whether they're finan-
cial officials worrying lest it be
used to start up another initiation
wave, or businessmen who have
been pinched by the consumers
yen for thrift and would like them
to spend more freely again.
If even that lower amount of
savings should be turned loose, it
could start business up again fast,
and probably price initiation, too.
Savings have had their skittish
moments in the past when their
buying power was threatened, as
moments in the past when their
evidenced by the two buying rush
es after Korea" the Institute of
Life Insurance says.
The institute cites the Depart
ment of Commerce figures that
total personal savings in 1851 ex-
ceeded II billion dollars, or about
one out of every 13 dollars of total
personal spendable income after
taxes.
The government arrives at this
high figure by taking the total of
personal income after taxes, sub
tracing the total spent on consum-
er goods and services. and calling
the remainder personal savings.
But a considerable part of what
it calls savings couldn't be turned
into cash quickly, if at all. The
government counts as savings, for
example, the payment on mort
gage and other debts.
Those who stick to the lower
| figure argue that savings should
be long-term liquid savings in the
true sense of nest-egg. They in
clude: Time deposits in CONNER
cial banks, mutual savings banks,
share accounts in savings and loan
associations, life insurance poll
cies, U. S. savings bonds, and
postal savings deposits.
If you count only these the total
savings are now more than 1893
billion dollars. gain of just less
than seven billion in 1851. This
compares with 142 billion dollars
at the end of the World War II
and 81 billion at its start.
| Others would add currency and
demand deposits, government So
cial insurance funds, state and
local government bonds, and cor
porate securities. If you add these,
Americans saved ID billion dollars
last year.
Whether it was II or 10 or seven
billion, it is credited with having
helped check initiation. And it GER
tainly made a lot of merchants
and manufacturers unhappy.
Are Americans ready to cut
loose and spend again?
The Institute of Life Insurance
thinks the American consumer is
in a better position now than ever
before to decide for himself wheth-
er he'll spend or save.
| The increase since 1899 In the
percentage of families having more
| than s., 900 year income, it says,
means that more Americans than
ever before now have incomes that
provide a margin over and above
necessities and thus have the
choice Of stepping up their saw
lngS or their spending as the time
and conditions warrant"
Also the institute notes that the
holding of durable goods per fam
lily is at record high, thanks to
the rush of buying since the war,
and along with this higher earn
lngS this gives the average con-
sumner greater latitude in deciding
whether To save or to spend
There still one question left.
How come some people saved II
billion when most citizens think
they couldn't save anything?