LEAVE. FIRST READING. (Hansard, 11 February 1864)

§ THE CHANCELLOR OF THE EXCHEQUER,
in moving for leave to bring in a Bill relating to the purchase of Government Annuities through the medium of savings banks, said it was a measure for the purpose of improving machinery already established by law. It had been thought of late very useful that the Government, without any interference with private establishments, or any attempt to take their proper business, should nevertheless do all it could to offer facilities for the increase and extension of frugal habits among the industrious classes. Upon that principle the Post Office saving3 banks were founded, being no more than a new attempt, under the altered circumstances of the community and the improved machinery at command, to apply the same principle which had already been applied with great benefit under the old Savings Bank system. But besides providing for the receipt and custody of savings, they had long possessed a machinery for the' grant by the Government 479 of small life assurances and small deferred life annuities. The purpose of this Bill was to afford improvements to that machinery. With regard to deferred annuities, it was very material that the class of persons likely to purchase them should have the opportunity of making a deposit of the premiums on them in as small sums as the Government could afford to receive. If only large payments at one time were received there was a considerable impediment to the purchase. On the other hand, the arrangements now were such, by the medium of the Post Office savings banks, that the Government could economically receive smaller amounts than they had hitherto received. He proposed by this Bill to give power to the Treasury to fix the amounts. He proposed also to remove from the existing law a restriction which was found inconvenient, and which was obviously unreasonable in itself. The Government were at present empowered to grant small life assurances up to the limit of £100, that being about the point at which, speaking generally, the ordinary private system of life assurance commenced. There were some life assurance offices which did an amount of business below £100; but, speaking generally and roughly, from £100 upwards life assurance by the public offices began to operate. The Government had power to grant life assurances up to £100; but that power was limited by the requirement that the same person who made the life assurance should likewise purchase a deferred annuity. The man who wanted a life assurance was generally a man who did not want a deferred annuity, and vice vers£. They were generally people of a different class. The object of the purchaser of a deferred annuity was to provide for old age, whereas that of the life assurer was to provide for those who came after him. The combination of the two was very inconvenient, and he proposed by this Bill to remove that restriction from the statute book.

§ SIR HENRY WILLOUGHBY
said, he did not anticipate that any objection would be made to the measure; but he thought it desirable that ample time should be given to the Savings Batiks to study the Bill, and to make any suggestion they thought necessary.

§ MR. HUBBARD
inquired whether the rate of interest at which the deferred an- 480 nuities would be granted would be identical with that of the Post Office savings banks; or whether it would, as at present, depend upon the state of the funds?

§ THE CHANCELLOR OF THE EXCHEQUER
said, that the interest would remain exactly as it was at present; it would have no connection whatever between it and the rate allowed on deposits in the Post Office savings banks.