§ Mr. WILESasked the Postmaster-General if he can give any particulars of the nature of the economies in the Savings Bank which he has lately foreshadowed?
§ Mr. HERBERT SAMUELI have arranged to introduce on 1st January next a new method of dealing with small accounts in the Post Office Savings Bank, which will, I anticipate, effect substantial economy in the working of the Bank without any withdrawal of public facilities or lessening of security. Under the existing system a record is made in ledgers at the chief office of the Bank of every transaction in every account; and the cost of dealing with small accounts, especially if small sums are deposited and withdrawn at frequent intervals, is excessive. About 800,000 accounts a year are opened with amounts of less than £1, and about half of these are closed without ever reaching £1. Under the new system any person opening an account with a deposit of less than £1 will be given a deposit book of new design. In this book the counter officer will affix adhesive labels, called coupon receipts, each of which, after being date-stamped and initialed, will denote a deposit of 1s. If, for example, the sum of 5s. is deposited five coupons will be affixed. When the depositor wishes to withdraw he will sign a withdrawal form, and the counter officer, before handing him the money, will detach from the perforated pages of the book a number of coupon receipts corresponding to the number of shillings withdrawn. Whenever the 2135 amount deposited reaches £1, at which stage under the Savings Bank Regulations it begins to bear interest, the depositor will be given an ordinary deposit book in place of his coupon book, and all further transactions will be dealt with under the existing system. For transactions dealt with under the coupon system no ledger record will be necessary, but dockets in respect of deposits and coupon receipts in respect of withdrawals will be sent to the chief office and stored in such a way that, in the event of a depositor losing his book, the Bank will, as at present, be able to ascertain the amount standing to his credit. The precautions against fraud will be as complete under the new system as under the old. It is estimated that no less than 4,000,000 transactions a year will be dealt with under the new system, and it is anticipated that the working expenses of the Bank will eventually be reduced by upwards of £17,000 a year. But, as I do not propose to dispense with the services of any of the existing staff, the full amount of this saving will probably not be realised until the system has been in operation for two or three years, and the surplus staff has been absorbed.