Mr. GIBSON BOWLESI beg to ask Mr. Chancellor of the Exchequer whether he is aware that for the last four years the trading of the Post Office Savings Bank has resulted in a yearly loss amounting, for the four years to the end of 1889, to £34,123; and, whether he can say what the reason is of this loss being sustained, and whether he proposes to take any steps to place the Post Office Savings Bank on a sounder and more satisfactory footing.
§ The CHANCELLOR OF THE EXCHEQUER (Sir M. HICKS BEACH, Bristol, W.)The answer to the first paragraph of the question is in the affirmative, but it is probable that the current year will show a profit. The reason of the loss was that it was impossible for some years to invest the Savings Bank funds so as to pay the rate of interest to the depositors fixed by law. The subject is one which I think should engage the attention of Parliament.
MR. GIBSON BOWLESI beg to ask the Chancellor of the Exchequer whether he is aware that the balance-sheet of the Post Office Savings Bank on the 31st December, 1899, showed an excess of liabilities over assets of £504,928s. 10d., the assets being valued at the market price of the day. Whether these assets included £67,330,884 of 2¾ per cent. Consols; and whether the market price and consequent value of those Consols, at that price, has since increased or decreased. Whether the liabilities of the 205 Savings Bank, amounting to £130,138,344 on 31st December,1899, consisted almost wholly of deposits payable at call. Whether in case of the assets of the Post Office Savings Bank being insufficient to meet the claims of the depositors the Consolidated Fund is liable to make good the deficiency. And whether he proposes to take any steps, either by forming an adequate reserve in cash, or in any other way, to secure the Consolidated Fund from having to make good any such liability by placing the Post Office Savings Bank in a position to meet the claims out of its own assets.
§ SIR M. HICKS BEACHThe answer to the first four paragraphs of the question is in the affirmative, except that the deposits are legally payable at ten days notice—the price of Consols has decreased since the date named. I introduced a Bill last session to deal with this subject, though I was not fortunate enough to be able to proceed with it or to secure the support of the hon. Member for the remedy which I proposed. I can take no steps in the matter at the present time, nor make any promise as to the future.