COMMITTEE. (Hansard, 10 July 1860)

§ ADMIRAL WALCOTT
Having held the position of Manager and Trustee of the Bath Savings Bank for a period extending to nigh thirty years, I may be permitted to express my opinion, which is shared in by that Board, that this Bill is unsatisfactory, inasmuch as it leaves the administration of Savings Bank Funds nominally in the hands of the National Debt Commissioners, but really in those of the Minister of Finance, who, although managing them as I unquestionably admit with great ability and integrity, is frequently beset with motives and necessities at variance, as it occurs to me, with what I consider a duty to the Savings Bank. The interests involved in these institutions are of such vast importance as to call for the appointment of a special Commission, who would watch over the funds as a public trust, see to their safe and profitable investment, and take steps to supervise and extend the sys tem and utility of Savings Banks throughout the country. And it appears to me that the 15th clause of this Bill, if passed, would at once render necessary an alteration in the existing rules and regulations throughout the country, whereas an intelligible Consolidation Act is expressly desirable which will embody all provisions 1662 for regulating the management of Savings Banks and the right of depositors.

§ MR. AYRTON
wished to remind the House of the recommendation made by the Committee that had been appointed to consider this subject. They recommended that a Commission, having some elements independent of the Chancellor of the Exchequer (though he was to be a Member of it), should be appointed to undertake the management of the aggregate funds of Savings Banks, the object being to keep the funds of Savings Banks and Friendly Societies separate and distinct from the other funds under the administration of the Chancellor of the Exchequer. The Committee wished the Commission to be Trustees for the Savings Banks, having funds either in Consols or Exchequer bills, equal to the charges that would be made upon them. The proposal of the Chancellor of the Exchequer, however, was that he should be a great State banker for the Savings Banks, with the power of administering the funds for the benefit of the depositors, but a banker in the novel position of having no securities to cover the charges against him. The question which they had to decide was, whether the recommendation of the Select Committee as to the scheme of the Chancellor of the Exchequer was to be adopted, and he hoped that issue would be fairly taken up by the Committee. He contended that, while the public sustained heavy loss, the result would be that in future they would be compelled to lower the rate of interest paid to the depositors of the Savings Banks.

§ THE CHANCELLOR OF THE EXCHEQUER
said, he hoped the Committee would proceed to the consideration of the clause before it instead of discussing the points raised by the hon. Gentleman in his very discursive speech. One of the questions raised by the hon. Gentleman—namely, the recommendation of the Select Committee, had been already decided by the House, when it was raised a few evenings ago by the hon. Baronet the Member for Evesham; and the other when the hon. Baronet moved the postponement of the first three clauses. He denied that he was making himself a banker for the Savings Banks. The truth was, that the State had already constituted itself a banker in that respect, and the arrangement was none of his. The hon. Gentleman complained that the public were fleeced now, and that the depositors would 1663 be fleeced hereafter by a lowering of the rate of interest. He would only say, passing by his reference to the present, that he totally disbelieved his prophecy as to the future. He knew no reason why the rate of interest paid to depositors in the Savings Banks should be altered, unless Parliament should choose to do so as a matter of policy. It would be a most unjust proceeding to lower the rate of interest in consequence of any real or supposed mismanagement of the funds. By the clause they were now discussing, it was proposed to cancel a large quantity of stock, and in the clause that followed they proposed to substitute for it a credit on the State deposit account. It was not intended to inscribe on the State deposit account the whole of the funds, but as much as they could fairly venture to do, retaining a certain amount to meet the demands of the savings-banks' depositors. Other arrangements for carrying out this object were provided for, and he hoped the clause would meet with the assent of the Committee.