HC Deb 12 March 1828 vol 18 cc1124-6
Mr. Hume

said, that on a recent occasion he had moved for returns of the accounts of Savings Banks, from the period of their establish- ment to the present year. He now intended to resume the subject for the purpose of submitting certain motions, in continuation of those he had already brought forward. The money of the depositors in these banks was vested with government, who paid interest at the rate of 4l. 11s. 6d. per cent. In this manner government had, in ten years, received 2,835,774l., and paid 3,323, 401l.; so that the public had lost by this arrangement no less than 487,627l. The loss which government was sustaining by those banks might be estimated at 1,000l. weekly. He was sorry that he had not, three years ago, moved for the appointment of a committee on this subject, or aimed at a repeal of the Savings' Bank bill. He was at that time, however, informed by the chancellor of the Exchequer, that a remedy for the evil was in contemplation. Was this loss to be suffered in the present financial condition of the country? The object for which those establishments were formed had been widely departed from. The bill should be repealed for two reasons; the progressive loss to the country, and the great surplus which the managers always had in possession untouched. This surplus in the Newcastle Savings' Bank, was at present 48,000l. The Devon and Exeter Bank was another example of the system on which those concerns were now managed. He thought no time should be lost in abating an evil so prejudicial to the state. For deposits amounting to 15,000,000l., government had, within eleven years, paid the full price at which the money was invested by those who deposited it. On a change of the price of stock, government might lose three or four millions, while the depositors would be entitled to the same sum in any event. Now, he considered that they ought to be placed in precisely the, same situation as other capitalists who had money to invest. There was another point, which he hoped would be taken into consideration by the hon. member for Surrey; he meant the mismanagement of the officers intrusted with the business of the banks. The hon. member then moved for a return of the amount of interest paid by the commissioners for the reduction of the National Debt, and placed to the credit of the respective Saving Banks, from the period of their first establishment up to the 20th of November, 1827. He likewise moved for similar returns connected with those banks.

Mr. Dawson

saw no objection to the consideration of a subject so important. The hon. member had stated the nature of the system fairly and correctly, and it certainly did seem to require some reform. But he thought there was no necessity for entering on any further details at present; particularly as the subject had been taken up by the chancellor of the Exchequer, who would bring forward some measure for the regulations of these banks during the session.

The motions were agreed to.