§ DR. MACNAMARAI beg to ask Mr. Chancellor of the Exchequer whether, in view of the fact that the average rate of interest allowed to depositors by the Post Office Savings Bank is higher than the average rate of interest on deposits paid by the London Joint Stock Banks; and in view of the fact that, in addition to the deficiency in the capital account of the Post Office Savings Bank, it is estimated that for at least several years to come there will be, as there has been in the last two years, a deficiency in the income account, he will take steps to secure that persons belonging to the well-to-do classes do not, as Post Office Savings Bank depositors, enjoy a rate of interest partially made up by contributions of the general body of taxpayers.
§ MR. AUSTEN CHAMBERLAINI do not admit that the average rates of interest allowed to depositors by the London Joint Stock banks, which derive profit from the monies placed on deposit with, them, should determine the rate to be given by the Post Office Savings Banks, which were established to encourage thrift and do not trade for profit. But, however that may be, the evidence given before the Select Committee of 1902 did not support the view that any considerable proportion of depositors are outside the classes for which the Savings Banks are intended to provide. It has been suggested that the Savings Banks Act, 1893, passed at the instance of the Party opposite, by extending the limit of annual deposit from £30 to £50, has led to the introduction of depositors of a different class; but the evidence before the Committee was that the proportion of depositors of different classes had not been altered by that Act. I see no present necessity for taking any step to diminish the facilities afforded by the Savings Banks.