BANKS. - 129 



IRISH SAVINGS BANKS. 



Savings Banks, as we know them, are creations of the past century. The 

 first genuine Bank of the kind was estabhshed at Tottenham, in England, 

 in 1804, by six gentlemen who acted as trustees, and allowed as much as 

 5 per cent, interest on sums exceeding one pound sterling which remained 

 ui their hands for one year. This well-meant venture, however, involved 

 the trustees in loss, and was abandoned. In 18 10 a well-organised Savings 

 Bank, known as " The Parish Bank Friendly Society," was established at 

 Ruthwell, and proved so successful that by the year 18 16 it had led to the 

 establishment of nearly eighty Savings Banks in England and Ireland. 

 The year 181 7 saw the first legislation on the subject — i.e., Acts 57 Geo. 

 III., c. 105 and c. 130 — intended to encourage and regulate Banks for savings 

 in England and Ireland (these Acts were not extended to Scotland until 

 1835). The chief provisions of these Acts were — (i) Trustees were prohi- 

 bited from making a profit out of these Banks ; (2) They were bound to 

 remit to the office for the reduction of the National Debt where " the fund 

 for the Banks of savings " was opened all deposits exceeding £^,0 in the 

 aggregate; (3) That office was to allow interest at the rate of £4 lis. ^d. 

 per cent, per annum (whereas the Banks themselves mostly allowed their 

 depositors 4 per cent.) ; (4) Not more than ;^50 could be deposited in any 

 one year (in England, however, a depositor could deposit £100 in the first 

 year). The next measure dealing with these Banks was an Act of 1824 

 limiting deposits to ^^50 in the first year and £;^o in any subsequent year, 

 and further providing that when the deposits of any person exceeded i^200 

 no interest was to be allowed on the excess. In 1828 there was an im- 

 portant amending and consolidating Act which provided inier alia — (i) 

 That the rules of each Trustees Savings Bank should be approved by the 

 Commissioners for the reduction of the National Debt ; (2) that the rate of 

 interest allowed by that office should be reduced to ;^3 i6i". oy^d. per cent, 

 per annum, while depositors should receive from the Bank interest at the 

 rate of £l %s. sV^^- P^^ cent, per annum; (3) that no depositor should be 

 permitted to deposit more than £^150, although the interest might be 

 allowed to accumulate until the deposit reached ;^200. Five years after 

 this Act {i.e., in 1833) there were in Ireland 76 Trustees Savings Banks, 

 49,872 depositors, and ^^1,380,7 18 deposits. The numbers for England in 

 the same year were 385 Banks, 414,014 depositors, and i^i 3,973,243 total 

 deposits. 



The Savings Bank principle was enormously developed by the establish- 

 ment in 1 86 1 (Act 24 Vic, c. 18), of Post Office Savings Banks, which at 

 once became popular in England and Ireland, though in Scotland they have 

 not rivalled the popularity of the Trustees Savings Banks. The statutory 

 rate of interest under this Act was 2^ per cent. The security which the 

 Post Office Savings Banks offer has influenced depositors in England and 

 Ireland to forego the slightly higher rate of interest which the Trustees 

 Savings Banks can offer.* 



* Between 1817 — the date of the first Savings Bank Act — and 1828, the Government allowed 

 interest to the Trustees at the rate of £i, iis. 3^., while the average rate of interest yielded by- 

 Consols varied from £^ 8s. 4^/. to £^ bs. id. From 1828 to 1844 the Trustees received £^ 16s., 

 while Consols yielded from £2 15s. ^d. to £^ os. 8d. From 1844 to 1880, Government allowed 

 £3 5^' P^'' cent., while the rate of interest on Consols varied between £^ 10s. jd. and £^ os. 8d. 

 From November 20, 1880, the rate of interest allowed was 3 per cent., which was again reduced 

 in iS88 to 2| per cent., at which it still remains. 



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