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future before it. In 1890-91, there were open 6,455 post 

 oflBce savings banks in the whole of India, and 981 such 

 banks in the Madras Presidency, with a balance to the credit 

 of depositors of 6*35 crorea and 61 lakhs of rupees, respec- 

 tively. Of these sums, the amounts to the credit of native 

 depositors were 5*57 crores and 49 lakhs of rupees respec- 

 tively. The deposits would have been much larger but for 

 the reduction made in 1889 in the maximum limits of sums 

 that can be deposited by a single person. Considering the 

 importance of giving all possible encouragement to persons 

 wishing to deposit money in savings banks, I venture to 

 think that the reduction was a mistake. The average 

 amount deposited by each depositor during the year 1891-92 

 was in this Presidency only Rs. 30, and the average balance 

 at the end of the year only Rs. 90, and this shows that the 

 banks are being made use of only by the poorer classes and 

 do not compete with the larger banking institutions to an 

 appreciable extent. The reason given for the reduction was 

 that facilities had been afforded to persons residing in the 

 interior for investing money in Government securities through 

 post office savings banks and also to deposit them for safe 

 custody, and it was accordingly unnecessary and undesirable 

 to maintain high limits for deposits. The classes that deposit 

 money in post office savings banks are, however, too poor 

 to buy Government securities. The facilities afforded by 

 the post office savings banks have so far been availed of 

 mainly by Government servants, servants of local bodies and 

 Railway companies, pleaders and other professional classes 

 of the community. The commercial classes and domestic 

 servants have also made deposits, but the agricultural classes 

 have scarcely as yet taken advantage of the banks. In Eng- 

 land, considerable impetus appears to have been recently given 

 to the formation of penny savings banks by the issue of a 

 circular from the educational department, calling the attention 

 of schoolmasters and school managers to the importance of 

 inculcating thrift upon children under their care, and point- 

 ing out the desirability of establishing a bank in every school. 

 It might be desirable to issue a similar circular in this Presi- 

 dency though in this as in other schemes newly introduced 

 no very great results can be expected at the outset. The 

 format^ion of benefit societies should be encouraged as much 

 as possible ; there is a great demand for such societies in this 

 Presidency, and some years ago, some persons taking advan- 

 tage of this started ' bubble ' companies which soon collapsed. 

 An amendment of the law insisting on the registration of 

 such societies, giving power to Registrars to refuse sanction 

 for the establishment of such as are proposed to be worked 



