56 On Post Office Savings' BanTcs, Sfc. 



sometliing to lose, and you give him something to protect, and 

 the aim of a wise Grovernment should be to encourage those 

 habits which raise the moral standard of a people which contribute 

 to individual happiness, and which at the same time are found to 

 be the greatest safeguards to the maintenance of law and order. 



There is also the question of advantage to the Grovernment of 

 the country, which a wise and enlightened administration of the 

 funds of Savings' Banks, would confer. I say wise and 

 enlightened administration, because the experience of the mother 

 country teaches us that an unwise administration of their funds 

 has involved a loss of something like five millions sterling, and I 

 will explain how this was brought about. The rate of interest 

 allowed on all sums deposited in the National Debt Office is 

 £3 5s. per cent., and as the Savings' Banks deposits are generally 

 invested in Consols, and the interest paid upon Consols bought 

 at par is only £3 per cent., it is clear that if Grovernment buy in 

 at par, receiving £3 per cent., and paying the Savings' Banks 3^ 

 per cent., they must lose at least \ per cent., which, on 40 

 millions, would be £100,000 a year in interest alone. The only 

 condition on which they can receive interest equal to that they 

 pay is by purchasing Consols at 92|. The people save money, 

 as a matter of course, when it is plentiful, and just at that very 

 time the price of Consols is high. In times of pressure and 

 distress money is scarce, and the price of stock low. This is the 

 time that Savings' Banks depositors require their money most, 

 and at such times the Grovernment must sell out at a low price 

 the stock they bought at a high price, and suffer the loss which it 

 is obvious must result from such a proceeding. The effect of the 

 Government at home dealing with the funds of Savings' Banks 

 since the passing of the Act of 1817, has been as I have stated a 

 loss to the country of nearly five millions, of which about three 

 millions and a-half arose from paying higher interest than they 

 obtained by the investment of the money, and something 

 approaching one million and a-half by selling out stock in times 

 of pressure to pay withdrawals at a lower price than that at 

 which it was purchased. But the Grovernment have not been the 

 only losers by Savings' Banks at home. The known frauds 

 amount to nearly a quarter of a million, while the amount of 

 those that have been made good by trustees or subscription wlil 

 never be known. Then there is the question of security to 

 depositors, which the guarantee of the Grovernment alone can 

 render perfect. But it is beyond the purpose of this paper to 

 enter upon the consideration of these, which I regard as the 

 political aspects of the question ; and, therefore, not wishing to 

 trespass upon the domain of politics, I leave them for discussion 

 elsewhere. 



