SAVINGS' BANKS. (Hansard, 26 July 1844)

§ Mr. Hume
complained that the present system of Savings' Banks was a departure from the original plan of making them available for the benefit of the poor exclusively. He also complained of a want of uniformity in the various banks as to the time of paying and the amount of dividends. According to the present system, should the Three per Cents, fall to 75 (a thing by no means improbable), the Government would lese 25 per cent. on every 100l. of those deposits. The fact was, the Chancellor of the Exchequer was legislating in ignorance of many of the abuses which had grown up in the present system. He would illustrate some of these There were 562 banks. The Government allowed 3l. 16s. per cent, on deposits, but of these 562 only 87 allowed 3l. 8s. 7d.; 41 allowed from 3l. 6s. to 3l. 8s. 382 allowed no higher rate of interest than 3l. 6s. 8d., and there were 52 banks which paid less than that amount. These were irregularities in the system which should not be allowed to remain. Another abuse was, that some banks did not allow interest on deposits being less than 30s., and others did not allow it on sums of less than 20s., while others again allowed it on deposits of 2s. 6d. All these were abuses which he contended we ought to avoid for the future. Having made 1490 these remarks he would not oppose the progress of the Bill.

§ Mr. Darby
said, that he concurred in many of the observations of the hon. Gentleman, but there were many on which he differed from him. As to the question of expense, he thought, that under the system under which we were acting, it was impossible to avoid great inequalities of expense. He fully approved of the great caution with which the Chancellor of the Exchequer was acting in a measure of this kind.

§ The Chancellor of the Exchequer
said, that, the origin of Savings' Banks was not by the Government, They were established by benevolent individuals to encourage habits of economy and industry amongst the humbler classes in their neighbourhoods; and when the Government determined to legislate on the subject, it was with the view of giving greater encouragement to depositors by giving greater security for deposits. It was impossible to prevent some abuses, for many parties invested sums in those banks who were not intended to be brought within the provisions of the Bill. But the great remedy for that would be, not to allow interest much greater than the current rate of the market. As to the expense of these banks on the whole the public gained rather than lost by it, to the extent of many thousands a year.

§ Mr. Labouchere
would give his cordial support to the principle of the Bill, and thought that the public, and particularly the depositors in these banks, were much indebted to the right hon. Gentleman the Chancellor of the Exchequer for the introduction of this measure. The only point for consideration was, whether they should allow 3l. interest to the smaller as well as the larger establishments, but that question would come on in the Committee.

Sir T. Acland
suggested that the allowance ought to be 3l. 6s. 8d., which would give 3l. to depositors and 6s. 8d. for management, and all who were conversant with Savings' Banks would admit that that was not more than sufficient.

§ The Chancellor of the Exchequer
defended the propriety of limiting the rate 1491 to the sum of 3l. 5s., and expresssed his determination to adhere to it.

§ Mr. Tufnell
would support the proposition of his hon. Friend the Member for North Devon, being convinced that no Savings' Banks establishment could be managed for so small a sum as 5s. per cent.

§ Mr. Hume
proposed to leave out 2l. 15s. and insert not less than 2l. 18s. 4d.

§ The Chancellor of the Exchequer
agreed with the hon. Member for Montorse, that 6s. 8d. was sufficient in the majority of 1492 cases to defray banking expenses, but it would not be so in all, and therefore he could not consent to his Amendments.

List of the AYES.
Ainsworth, P.	Hope, G. W.
Aldam, W.	Howard, P. H.
Alford, Visct.	Hume, J.
Archdall, Capt. M.	Jermyn, Earl
Arkwright, G.	Knatchbull, rt. hn. Sir E.
Baring, hon. W. B.	Lennox, Lord A.
Beresford, Major	Martin, C. W.
Boldero, H. G.	Meynell, Capt.
Bowles, Ad.	Nicholl, rt. hon. J.
Broadley, H.	Norreys, Lord
Brothertou, J.	Peel, J.
Chapman, A.	Pringle, A.
Clerk, Sir G.	Smith, rt. hn. T. B. C.
Cole, hon. H. A.	Sutton, hon. H. M.
Cripps, W.	Tennent, J. E.
Denison, E. B.	Thornely, T.
Eliot, Lord	Thornhill, G.
Elphinstone, H.	Trench, Sir F. W.
Escott, B.	Trollope, Sir J.
Forman, T. S.	Trotter, J.
Gaskell, J. Miles	Wall, C. B.
Goulburn, rt. hon. H.	Wawn, J. T.
Graham, rt. hn. Sir J.	Wodehouse, E.
Henley, J. W.	Wortley, hon. J. S.
Herbert, hon. H.	TELLERS.
Hodgson, R.	Young, J.
Hope, hon. C.	Baring, H.

List of the NOES.
Ackers, J.	Henniker, Lord
Acland, Sir T. D.	Kemble, H.
Allix, J. P.	Labouchere, rt. hn. H.
Arundel and Surrey, Earl of	Napier, Sir C.
	Rendlesham, Lord
Clive, Visct.	Rolleston, Col.
Colebrooke, Sir T. E.	Stewart, P. M.
Divett, E.	Wakley, T.
Duncan, G.	Yorke, hon. E. T.
Duncombe, T.	TELLERS.]
Fox, S. L.	Hawes, B.
Harcourt, G. G.	Tufnell, H.

List of the AYES.
Ackers, J.	Hope, hon. C.
Ackland, Sir T. D.	Hope, G. W.
Adderley, C. B.	Houldsworth, T.
Allix, J. P.	Howard, P. H.
Archdall, Capt. M.	Jermyn, Earl
Arkwright, G.	Knatchbull, rt. hn. Sir E.
Arundel and Surrey, Earl of	Labouchere, rt. hn. H.
	Lennox, Lord A.
Baring, hon. W. B.	Liddell, hn. H. T.
Bateson, T.	Mackinnon, W. A.
Boldero, H. G.	Martin, C. W.
Bowles, Adm.	Meynell, Captain
Broadley, H.	Nicholl, rt. hon. J.
Bruce, Lord E.	O'Brien, A. S.
Chapman, A.	Packe, C. W.
Clerk, Sir G.	Peel, J.
Clive, Visct.	Pringle, A.
Clive, hon. R. H.	Rendlesham, Lord
Colebrooke, Sir T. E.	Rushbrooke, Col.
Corry, rt. hon. H.	Seymour, Sir H. B.
Cripps, W.	Sutton, hon. H.
Divett, E.	Thornhill, G.
Eliot, Lord	Trotter, J.
Forman, T. S.	Wakley, T.
Fox, S. L.	Wall, C. B.
Gaskell, J. Milnes	Wodehouse, E.
Goulburn, rt. hn. H.	Wortley, hn. J. S.
Graham, rt. hn. Sir J.	Yorke, hn. E. T.
Hawes, B.	TELLERS.
Herbert, hon. S.	Young, J.
Hodgson, R.	Baring, H.

List of the NOES.
Ainsworth, P.	Morris, D.
Aldam, W.	Napier, Sir C.
Bouverie, hn. E. P.	Thornely, T.
Brotherton, J.	Tufnell, H.
Childers, J. W.	Wawn, J. T.
Duncan, G.
Duncombe, T.	TELLERS.
Elphinstone, H.	Hume, J.
Escott, B.	Denison, B.