§ MR. HOWELL (Bethnal Green, N.E.)asked the First Lord of the Treasury, Whether, the failure of the Cardiff Trustee Savings Bank has resulted in a loss to depositors of over £25,000; whether that bank printed the words "Government Security" on its books, and "Government Savings Bank" on its annual Reports; whether the Government will take steps to prevent other trustee banks from using the name of the Government in a manner calculated to convey the false impression that all deposits in such banks are guaranteed by the State; and, whether he will undertake, on behalf of the Government, that an official inquiry shall be instituted into the circumstances attending and connected with the recent failure of the Cardiff Trustee Savings Bank?
§ THE FIRST LORD (Mr. W. H. SMITH) (Strand, Westminster)It is, I regret to say, the fact that the failure of the Cardiff Trustee Savings Bank has involved the loss of upwards of £25,000 to the depositors. I have inquired, but I have not been able to ascertain, whether the words "Government Security" were printed on the books of the bank, and the National Debt Commissioners inform me that the words "Government Savings Bank" were not inserted in any Returns made to the Commissioners. No evidence to that effect has been brought to the notice of the Registrar of Friendly Societies, or of the Commissioners of the National Debt. As to the third Question, the only legal designation of a trustee savings bank is "savings bank certified under the Act of 1863." I am afraid I cannot undertake that an official inquiry shall be instituted into the circumstances stated, as the Savings Bank Acts do not give any special powers to the Government which would make such an inquiry complete and exhaustive.
§ MR. HOWELL (Bethnal Green, N.E.)asked the First Lord of the Treasury, Whether, having regard to the number of frauds, extent of the defalcations, and the losses to depositors, and also to the number of failures and consequent loss 1410 to depositors where no fraud was established, in connection with Trustee Savings Banks, the Government will propose such an alteration in the existing Laws for regulating Trustee Savings Banks as will render the Trustees of such Banks jointly and severally responsible and liable to the depositors for all moneys deposited or invested in the aforesaid Banks under their management?
§ THE FIRST LORD (Mr. W. H. SMITH) (Strand, Westminster)I am not able to hold out any probability that such proposals as those to which the hon. Member refers will be made to Parliament. It will be borne in mind that wherever a savings bank exists there exists also side by side with it a Post Office Savings Bank, which affords absolute Government security to the depositors. The trustees of savings banks generally are unpaid officers, who give their time and labour, as a rule, with the single desire to benefit their fellows and to encourage thrift; but if the hon. Gentleman will communicate with me privately I will consider any case of fraud or misrepresentation with which he may be acquainted, with the view to adopting any precautions which may be practicable in order to obtain better protection for the depositors in these banks.
§ MR. HOWELLgave Notice that in consequence of the answers of the right hon. Gentleman to the first Question he would call the attention of the House to the subject at the earliest possible date.