A History of Banks for Savings in Great Britain and Ireland

[221] Of this sum, which includes the Allowances to Postmasters, Letter Receivers, and others, for conducting Savings Bank business, 126,839l. 10s. 3d. was recovered from the Commissioners for the Reduction of the National Debt prior to 31st December, 1865, and 14,535l. 10s. 11d. has since been recovered from the Commissioners.

General Post Office,
  March, 1866.

Stanley of Alderley,
  Postmaster-General.

George Chetwind,
  Receiver and Accountant General.

A. C. Thomson,
  Assistant-Controller of Post Office Savings Banks.

The depositors in Post Office Savings Banks increased in number during 1865 at the rate of 29 per cent.; the total sum deposited increased at the rate of 30 per cent. During the first part of the present year the business has increased in a still greater proportion. In the first nine weeks of 1865, the number of deposits was 258,917, and 48,777 new accounts were opened; in the first nine weeks of 1866, 331,027 deposits were made, and 58,472 new accounts were opened. “It is evident, therefore,” says Lord Stanley of Alderley, “that great as had been the progress of the Post Office Banks up to the close of last year, there are good grounds for expecting a greater progress hereafter. And I am happy in being able to state, that the Scheme which was framed for the conduct of the Post Office Savings Banks, before any one of them was established, has been found to work well in each and all of its parts, and to admit of any expansion of business, no matter how great or how sudden that expansion of business may be. The officers by whom this Scheme was framed calculated, as a matter of course, upon a large and constant growth of business; but sudden augmentations, arising from causes which could not be foreseen, have been by no means unfrequent. In the first week of the present year, for instance, no less than 10,000 new depositors entered the banks; but even under such sudden and unexpected augmentations of business the scheme of operations has been found to work well.”

[222] The falling off in the cost per transaction during 1863 and the increase in that cost during 1864 are attributable to one and the same cause, viz., to the payment during 1864 of various charges properly belonging to 1863.

[223] These sums do not include the dividends accruing to the Post Office Savings Bank on the 5th January; that is, five days after the close of the account in each year.

[224] These sums do not include the dividends accruing to the Post Office Savings Bank on the 5th January; that is, five days after the close of the account in each year.

"Since the commencement of business, 238 proposals for the purchase of Annuities have been received; of these, 4 have been dropped, 4 are under consideration, and 230 have been accepted. Of the proposals which have been accepted, 150 have been for the purchase of Immediate Annuities, the amount of annuity purchased being 3,430l., and the purchase money being 39,774l. Of the remainder, 15 were for the purchase, by immediate payments, of Deferred Annuities, the amount of deferred annuity purchased being 232l., and the amount of purchase money paid down being 1,543l. The remainder, 65, were for the purchase of Deferred Annuities by annual or more frequent payments, the amount in course of purchase being 1,368l., and the amount of purchase money annually payable being 759l. Of the 238 intending annuitants, 103 were males and 129 were females. The remaining six proposals were for insurances on joint male and female lives.

• Acknowledgement of deposits in Post Office Banks, 329-331.
• Acts of Parliament relating to Savings Banks, Post Office Banks, Government Annuities, &c. See Appendix.
• Althorp, Lord, moves for a bill to grant Annuities through the medium of Saving Banks, 69;
  • replies to Mr. Attwood, 73.
• Annuities, Government: first proposals for, 69; 347;
  • alteration of the law relating to, 152;
  • a new scheme is proposed in 1864, 348 et seq.;
  • Mr. Gladstone introduces a bill into Parliament concerning, 350;
  • is discussed and carried, 353-362;
  • regulations for working the measure, 362;
  • how to purchase, 372-4;
  • progress of the new measure of, 375-7.
• Attwood, Mr. Thomas, M.P. opposes legislation for Savings Banks, 71;
  • speaks against Savings Banks, 72; 82.
• Auchterarder Savings Bank, failure of the, 137;
  • particulars of this fraud, 193.
• Auditors, Government proposals for, 146.
• Australian Government Banks, 344.
• Ayrton, Mr., M.P. on Savings Banks, 162;
  • assists in bringing in a bill to regulate Savings Banks, 179;
  • assists in bringing in the Consolidation Act, 182;
  • respecting his connexion with Government banks, 277;
  • strongly opposes the Post Office Bank Bill in Committee, 303;
  • presides at a working man's meeting in London in opposition to the Government Annuities Bill, 359;
  • opposes it in the House, 360.

B.

• Baines, Mr. E., M.P. advocates Mr. Sikes's proposals for Post Office Banks, 286;
  • again, 301.
• Bath, the Provident Institution of, origin of, 25.
• Benefit Societies: compared with Savings Banks, 85; 86;
  • disadvantages of, 37;
  • unsound character of many of them, 353-5;
  • oppose the Government Annuities Bill, 354, 356;
  • on compulsory payment to, 391 note.
• Bentham, Jeremy, proposes “Frugality Banks,” 271;
  • provisions of his scheme, 271—2.
• Bentinck, Lord George, speaks on Savings Banks, 134.
• Bilston Savings Bank, frauds in, 208 et seq.;
  • the Times on this fraud, 235.
• Birmingham Savings Bank, 324.
• Boodle, Mr., represents Savings Bank managers, 166;
  • again, 173;
  • gives evidence before the Committee of 1858, 173 note;
  • on systems of book-keeping, 261;
  • on confidence in trustee's names, 385 note.
• Book-keeping, different systems of, 260;
  • difficulty of effecting changes in systems of, 261.
• Branch Banks, not in favour with Savings Bank managers, 286.
• Bright, Mr., M.P. in favor of Government paying defrauded depositors, 142;
  • on Government security, 232.
• Brighton Bank fraud, 204 et seq..
• Buckingham, Mr. J. Silk, on compulsory savings, 390-1.
• Building Societies compared with Savings Banks, 382-3.
• Bullar, Mr. John, proposes Postal Banks, 280 et seq.; 343.
• Business done in Post Office Banks, amount of, 313 et seq.;
  • nature of, 318 et seq..

C.

• Canterbury Bank fraud, 218 et seq..
• Chadwick, Mr. Edwin, on Post Office Banks, 311.
• Chalmers, Dr., on Savings Banks, 105;
  • on the Interest Rate, 341.
• Chetwynd, Mr., proposes a scheme for applying Savings Banks to the Post Office machinery, 292;
  • the scheme is recommended by Mr. Scudamore, 293;
  • adopted in full, 294;
  • is appointed Controller of the Post Office Banks, 313;
  • on the Government Annuities scheme, 349.
• Clubs at Public Houses, 37.
• Cobbett, William, M.P. on Mr. Rose, 46, 81;
  • speaks of the bubble of Savings Banks, 81.
• Committees on Savings Banks: one is appointed on Irish Banks in 1849, 130;
  • reappointed in 1850, 135;
  • one is appointed to go over the whole subject in 1858, 164;
  • report of proceedings of Committee on 1858, 165 et seq.;
  • recommendations of the same, 169-170;
  • one is appointed on the Annuities scheme, 361.
• Compensation to Savings Bank officials, 328.
• Compulsory enactments to secure frugality, 50, 389 et seq..
• Consolidation Act of 1863, 182;
  • clauses of the Act, Appendix (B) 400 et seq.
• Co-operative Societies and Savings Banks, 382-3.
• Corporation Savings Banks, Appendix, 410.
• Cost of transactions in Post Office Banks, 305; 334-5.
• Craig, Mr., of Cork, on systems of book-keeping, 260-1;
  • objects to the taking of small deposits, 264.
• Crossley, Sir Francis, advocates Mr. Sikes's plan, 298.
• Cuffe Street Bank fraud: early history of this bank, 133;
  • discovery of the actuary's defalcations, 115;
  • subsequent management of the bank, 116;
  • closing and its results, 118;
  • a Committee is appointed concerning, 129-30;
  • reappointed, 135;
  • depositors are compensated by Government, 142.

D.

• Declaration, origin of the subscribing of the Savings Banks, 59;
  • is an unnecessary limitation, 342.
• Defects of Savings Bank system, 266-8;
  • of the Post Office Bank system, 342-4.
• Deposits: limit of the amount of, 53;
  • altered in 1824, 59;
  • average amount of, in Post Office Banks, 320;
  • acknowledgment of, in Post Office Banks, 330-1;
  • limit of the total amount of, in Post Office Banks unnecessary, 342-3;
  • may be made available for paying premiums on Government Life Insurances, 367.
• Depositors: defrauded, several members speak in behalf of, 150;
  • number of, in Post Office Banks, 315;
  • character of, in the same, 319;
  • analysis of, in the same, 321;
  • increase of, in the same, 320;
  • number of Post Office Banks failing to obtain, 321;
  • how they must proceed in Post Office Banks, 329 et seq.
• Disraeli, Mr. M.P. speaks of Savings Bank legislation, 155.
• Distribution of Savings Banks, the irregular, 236.
• Douglas, Mr. M.P. introduces a bill to regulate Scotch Savings Banks, 57.
• Duncan, Dr. Henry, of Ruthwell: Founder of Savings Banks, 28;
  • early life, 29;
  • literary pursuits, 30;
  • proposes Parish Banks, 32;
  • establishes the Ruthwell Bank, 33;
  • assists in the establishment of other banks, 33-4;
  • writes an Essay on Savings Banks, 34;
  • his death, 57;
  • advises Government encouragement and protection, 57;
  • corresponds with Mr. Douglas on the subject, 58.

E.

• “Edinburgh Review,” 1807, on Mr. Whitbread's proposals, 24;
  • on Savings Banks, 28, 380.
• Edinburgh Savings Bank, the original 40-43; many banks are formed
  • on its model, 41.
• Education, improvement in systems of, 6.
• Employers of labour: recommended to consider a scheme of Life Insurance at work at the Post Office, 369;
  • how they may assist their workmen in the same way, 370-1;
  • their duty to their workmen, 386;
  • their influence, 389-90.
• Equalization of interest in different banks, 339-40.
• Estcourt, Mr. Sotheron, and Savings Banks, 162-3;
  • is appointed Chairman of Committee of 1858, 164;
  • speaks on failures in legislation, 176;
  • assists in bringing in a bill, 179;
  • opposes Post Office Banks, 300;
  • on Government Annuities scheme, 359; 361-2.
• Exeter Savings Bank, establishment of, 26.
• Expenses of different banks, 264.

F.

• Facilities, absence of, in Savings Banks, 239;
  • not proportioned according to population, 240;
  • increase of, 371.
• Farquhar, Sir Minto, on the Government Annuities Bill, 359; 362.
• Financial crisis of 1826: description of, 92;
  • consequences of the, 93, 94.
• Fletcher, Rev. H. S. and his frauds at Bilston, 208 et seq..
• Frauds in Savings Banks: Cuffe Street, 111 et seq.;
  • Hertford Bank, 118;
  • Tralee Bank, 184 et seq.;
  • Killarney Bank, 191 et seq.;
  • Auchterarder Bank, 193-4;
  • Rochdale Bank, 203-4;
  • Brighton Bank, 204 et seq.;
  • Mr. W. H. Grey on, 207-8;
  • at Newport, Isle of Wight, 208;
  • Bilston Bank, 208 et seq.;
  • Canterbury Bank, 218 et seq.;
  • return of, 223;
  • Worcester Savings Bank, 225 note;
  • the remedy for, 225;
  • the result of, 231.
• Friendly Societies: benefits of, compared with those from Savings Banks, 69; 85-6;
  • disputes between, 80;
  • oppose the Government Insurance measures, 351;
  • unsound societies, 353;
  • Mr. Gladstone on, 354-5;
  • failure of, 356;
  • defended by Mr. Sheridan, 357.
• Frugality Banks proposed by Bentham, 271-2.

G.

• Gladstone, Mr., his connexion with the subject, 156;
  • introduces a bill into Parliament in 1853, 157;
  • withdraws it, 158;
  • obtains leave to introduce further measures in the session of 1855, 158;
  • speaks on the Government use of Savings Bank money, 159;
  • introduces a bill relating to the investment of the same, 175;
  • the bill is lost, 177;
  • re-introduced and carried, 181;
  • his connexion with Post Office Savings Banks, 179-80;
  • considers Mr. Sikes's proposals, 288;
  • urges the preparation of some such plan on the Post Office authorities, 291-2;
  • brings in a bill to establish Post Office Banks, 294 et seq.;
  • speaks on the second reading, 301;
  • again, in Committee, 304;
  • answers objections to and questions concerning the bill, 305-6;
  • as author of the bill, 312;
  • on the interest given in Post Office Banks, 340;
  • introduces his Annuities and Insurance scheme, 350;
  • defends his plans in a long speech, 353-7;
  • consents to the appointment of a Select Committee, 361;
  • carries his measure through the House, 362.
• Göschen, Mr., M.P., on the Government Annuities Bill, 360, 361.
• Goulburn, Mr., incident in connexion with his official life, 66;
  • opposes the reduction of the interest rate, 78;
  • brings in a bill to amend the law, in 1844, 122;
  • proposes a reduction of the interest rate, 124;
  • assists the whigs in evading a full inquiry, 137;
  • on Savings Bank money, 172.
• Government Banks, proposals for, chap. VIII. 269 et seq..
• Government and Savings Banks—its loss from Savings Banks, 74, 146;
  • its gain from the use of Savings Bank money, 174; 268;
  • makes good the loss from fraud, in one case, 141.
• Government employés and provident habits, 387-8.
• Greaves, Samuel, and the Canterbury Bank fraud, 218 et seq..
• Guarantee Fund, first proposed by Mr. Sikes, 258.

H.

• Habits of workmen, improvements in, 10; 385;
  • still need improvement, 390.
• Hamburg, Savings Banks in, 18.
• Hamilton, Rev. G. H. proposes Postal Banks, in 1852, 278;
  • proposes that the Limitation clause be extended, 343.
• Hancock, Dr., writes on Savings Banks, 235;
  • referred to in connexion with, 256-7;
  • his connexion with Postal Banks, 275-6;
  • approves Mr. Sikes' plan, 288.
• Hatton, Mr., a witness before the Committee of 1858, 165;
  • investigates the Reading and Brighton frauds, 204; 206.
• Haworth, George, and the Rochdale frauds, 195 et seq..
• Herbert, Mr. H. A., M.P., speaks upon Irish Bank frauds, 157-9;
  • moves a resolution disapproving the conduct of the Government in relation to Savings Banks, 154.
• Hertford Savings Bank: origin of the, 27;
  • defalcations in, 118;
  • account of the fraud, 119;
  • discussion in the House of Lords concerning the fraud, 120;
  • again, 310.
• Hill, Sir Rowland, on Mr. Sikes's plan, 286; 301.
• Hindrances to the usefulness of Savings Banks, 105;
  • frauds in Savings Banks, chap. VI. p. 183 et seq..
• Hume, Mr. Joseph: his first speech on Savings Banks, 61;
  • calls for a return, 63;
  • speaks of the Government loss from Savings Banks, 62, 76;
  • on the Surplus Fund, 64;
  • speaks on the rate of interest, 74; 129;
  • anecdote of, in connexion with Sir R. Peel, 129;
  • speaks in favour of Sir Charles Wood's bill of 1850, 149-50.

I. J. K.

• Improvement in the social habits of the working classes, 10; 385.
• Improvidence of many classes, 13; 390.
• Increase of Savings Bank business, 1825 to 1840, 97;
  • of depositors and deposits in Post Office Banks, 315-7.
• Inspection of depositors' books, 146.
• Insurance, Government: early objections to the plan of, 153;
  • later objections to, 351;
  • bill to regulate, 349 et seq.;
  • carried, 362;
  • features of, and details of the measure, 362;
  • special advantages of, 363 et seq..
• Interest given by Savings Banks: first rate of, 53;
  • attracts the richer classes, 54;
  • proposals to reduce the rate, 60; 75-6;
  • the Westminster Review on, 76;
  • Mr. Spring Rice on, 77;
  • the consequences of the reduction of 1828, 95;
  • fresh proposals to reduce the rate, 147;
  • Savings Bank managers, differ on the question, 262;
  • in Post Office Banks, 338 et seq.;
  • Dr. Chalmers on, 341;
  • Mr. Mill on, 341;
  • shown by an interesting example, 381-2;
  • interest given by Post Office Banks, 338-340.
• Investment of Savings Bank money: an early dispute concerning the, 53;
  • the mode of, is explained to the Committee of 1858, 170-1;
  • Savings Bank managers object to the mode, 173;
  • benefits to the Government of present arrangements, 174.
• Irish Savings Banks: early banks, 44;
  • at first beneficial to the country, 112;
  • disastrous effects of the frauds in, 112; 118;
  • Committees of Inquiry respecting, 130; 136;
  • a bill is passed to amend the law relating to, 151;
  • the frauds cause a breaking up of Irish banks, 236;
  • number of Post Office Banks failing to obtain depositors in Ireland, 322.
• Killarney Bank fraud, 191 et seq..

L.

• Legislation on Savings Banks: early measures of, 45 et seq.;
  • Savings Bank Acts are consolidated, in 1828, 65;
  • Mr. Goulburn's bill, 123;
  • amendment is proposed, in 1848, 133-4;
  • Act is made to apply to Ireland only, 135;
  • Sir Charles Wood introduces the Amendment Act of 1850, 139-40;
  • shown to be much required, 141;
  • is withdrawn, 151;
  • an Act is passed to amend the law on Government Annuities, 153;
  • Sir G. Lewis introduces the Government bill, 160;
  • withdraws it, 164;
  • a Committee of Inquiry is appointed, in 1858, 164-5;
  • finding of the Committee, 168-9;
  • Mr. Gladstone introduces a bill to provide for the investment of Savings Bank money, 175;
  • withdrawn, 177;
  • re-introduced and carried, 182;
  • the Consolidation Act is introduced and carried, 182;
  • Mr. Gladstone brings in and carries his bill to establish Post Office Banks, 294 et seq..
• Lewis, Sir G. C., re-introduces the Government bill, 159;
  • replies to objections, 163;
  • withdraws it, 164;
  • sees Mr. Sikes on Savings Bank reforms, 256.
• Limit of Deposits: is altered, 53;
  • again altered, 59;
  • proposals to alter, 124;
  • fresh proposals to alter, 147;
  • in Post Office Banks, 342-3.