HC Deb 14 November 1893 vol 18 cc867-8
MR. J. ROWLANDS (Finsbury, E.)

On behalf of the hon. Member for the North-East Division of Bethnal Green, I beg to ask the Chancellor of the Exchequer whether he can inform the House as to the amount of defalcations at the Sudbury Savings Bank; and whether the Inspection Committee had paid any attention to that bank; and, if so, whether he will state to the House the nature of the Inspector's Report?

THE CHANCELLOR OF THE EXCHEQUER (Sir W. HARCOURT,) Derby

The amount of the deficit, which approximately represents that of the defalcations, is, so far as at present ascertained, £14,098. Some addition to this sum will arise in respect of pass books not yet produced, but the amount will probably not exceed £2,000 or £3,000. This, however, is a mere estimate; the defalcations appear to have extended over a period of at least 14 or 15 years. Steps have been taken by the Inspection Committee, at the request of the Trustees, to secure a judicial investigation of the whole matter, and the payment of an interim dividend to the depositors has been suggested. The Inspection Committee examined the returns from this bank, which disclosed nothing to excite suspicion, and included it in the list for inspection, as indicated in their Report to the National Debt Commissioners, already laid before Parliament. Upon the visit of the Inspector he found the actuary had absconded on the previous evening, leaving a letter, saying that he was unable to face the Inspector, having falsified the bank books for years. The Inspector found the ledgers and cash books apparently in good and regular order, but on a detailed examination of them and upon a comparison of the pass books, which have been called in, with the ledgers the defalcations have been disclosed. The Inspector reported to the above effect, as did the Secretary of the Inspection Committee, who had joined him at Sudbury, and the investigation is still proceeding.

MR. J. E. ELLIS (Nottingham, Rushcliffe)

Can the right hon. Gentleman say whether the Trustees and Managers of the bank have been constantly attending it?

SIR W. HARCOURT

That the investigation will show.

* MR. BARTLEY (Islington, N.)

Is it not the fact that the Inspection Committee has existed for nearly two years, and that this was the first inspection made of this particular bank?

SIR W. HARCOURT

I cannot say.