SAVING BANKS BILL. (Hansard, 7 May 1824)

The Chancellor of the Exchequer

said, his first object in moving the resolution with which he should conclude, would be to assimilate the law of Savings Banks in England and Ireland. His next object 602 was, to make provision for the future, in respect of the deposits of friendly societies and charities. The high rate of interest guaranteed to these banks by law, no doubt had induced those charities, as well as individuals of a rank and property never contemplated originally in the scheme, to place their funds in these banks; the aggregate amount of which had the effect of burthening the public considerably with the payment of a large interest. He should propose, as a limitation, that no friendly society, or charity having an endowment, should be permitted to subscribe to these banks, except in cases where the endowment should happen to be so small as to render the exclusion unnecessary. A good criterion as to the smallness of the endowment would be furnished by the fact of its paying or not paying land-tax; if it paid none, this proposition would not apply to it. Hospitals, he thought, should also be denied the benefit of these banks: they were liberally supported throughout the country; if they were at liberty to deposit the surplus funds which some of them commanded, the original object of Saving Banks would be defeated, and the public in some degree be prejudiced. Other friendly societies and charitable institutions of a less opulent character, he should so far limit, as to say that in no case should they contribute more than 500l. The best way to prevent individuals who had deposited largely without being of that description of persons which it was desirable should be the contributors to. these banks, from doing so hereafter, would be to reduce the interest on future contributions. Those who had already subscribed, it would be obviously unjust to deprive of the benefit which had accrued to them. At the same time, he should feel most reluctant to weaken the confidence which the public reposed in these banks, and which had rendered them one of the greatest blessings ever conferred upon the country. Though in some instances richer persons might have availed themselves of their advantages, the great majority of contributors would be found to be the industrious poor, for whose welfare these institutions were originally framed. At present, contributions in the first instance were limited to 100l., and succeeding ones to the amount of 50l. in any one year. He should suggest, that these sums be reduced to a first contribution of 50l., and succeeding subscriptions not to exceed 30l. per annum. To 603 obviate any thing like evasion of these regulations, he should introduce a form of declaration, to be subscribed by every contributor, stating that he had not contributed to any other than the bank wherein such declaration was subscribed. In place of a mark or an initial, which was at present deemed sufficient, he should require the subscription of the party's name in his own hand-writing. Then, as to the responsibility of trustees, a good deal of difficulty was to be encountered. It had sometimes happened that treasurers and secretaries had not been quite so scrupulous with the monies of subscribers as they should have been; and where those monies had been made away with, a question had arisen, how far the trustees were liable to the subscribers. It might be a very nice point to determine whether, indeed, trustees were or were not liable; but it might surely be a fair question to ask which ought they to be. If they were to be rendered too liable, responsible persons would be deterred from accepting trusteeships; and there-fore he would propose to make them liable only to a certain amount; to have for each bank, 12 trustees, each of them liable for 50l., the aggregate of their liability being for the sum of 600l. These were the principal regulations he meant to introduce into the new measure; together with a proviso, that in case of any sudden run upon the Saving Banks, it should be lawful for the Treasury to issue Exchequer bills to such an amount as might meet the demands on account of deposits, until their capital in the public funds could be sold out, when the Treasury advances should be repaid. There could be no objection, he thought, to the preliminary resolution he should now move, which was—"That it is the opinion of this committee that the several acts relative to Savings Banks in England and Ireland should be amended."