(c.)

Account of Charges of Management and of Expenses incurred for Post Office Savings Banks, from their Establishment on the 16th September, 1861, to the 31st December, 1865.

£  s.  d.
Charges and Expenses for the period from 16th September, 1861, to the 31st December, 186491,848   7   4
Charges and Expenses for the year ended 31st December, 186549,526 13 10
[221]141,375    1  2
The sum standing to the credit of the Post Office Savings Banks Fund on the 31st Dec. 1865, at the National Debt Office, was6,582,329  11  7
And on the same day there was in the hands of the Postmaster-General a balance of4,327   7 10
Making in all6,586,656  19  5
To meet a liability of£6,526,400   4  0

[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.

(I.)

As the last sheet of this work was passing through the press, the Postmaster-General's Report for 1865, to which reference has already been made, has been printed. The information therein given respecting the progress of some of the measures which we have had under consideration is so important in itself, as well as illustrative and corroborative of our text, as to justify us in making the following extracts. These extracts, which are here given in his Lordship's own words, plainly show the deep interest he takes in those schemes, which have all been commenced during his term of office, and carried out under his immediate oversight and direction.

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.”

The following is a comprehensive Statement of the Business of Post Office Savings Banks from their commencement to the close of the Year 1865, of the Cost of that Business, and of the Funds in hand at the close of each Year.

Period.
From 16th Sept. 1861, to 31st Dec. 1862. From 31st Dec. 1862, to 31st Dec. 1863. From 31st Dec. 1863, to 31st Dec. 1864. From 31st Dec. 1864, to 31st Dec. 1865. From 31st Dec. 1861, to 31st Dec. 1865.
1Number of Post Office Savings Banks at close of Period. 2,5352,9913,0813,3213,321
2Number of Deposits received during Period. 639,216842,8481,110,7621,302,3093,895,135
3Total Amount of Deposits received during Period. £
2,114,669		£
2,651,209		 £
3,350,084		£
3,719,017		 £
11,834,979
4Average Amount of each Deposit received during Period. £ s. d.
3 6 2		 £ s. d.
8 2 11		 £ s. d.
3 0 3		 £ s. d.
2 17 1		 £ s. d.
3 0 9
5Number of Withdrawals during Period. 97,294197,431 309,242407,412 1,011,379
6Total Amount of Withdrawals during Period. £
438,637		 £
1,027,154		 £
1,834,849		 £
2,318,610		 £
5,619,250
7Average Amount of each Withdrawal during Period. £ s. d.
4 10 2		 £ s. d.
5 4 0		 £ s. d.
5 18 8		 £ s. d.
5 13 9		 £ s. d.
5 11 1
8Charges of Management during Period. £
20,591		£
25,401		 £
45,856		£
49,627		 £
141,375
9Average Cost of each Transaction, viz. of each Deposit or Withdrawal.[222] d.
6-7⁄10		 d.
5-8⁄10		 d.
7-7⁄10		 d.
6-9⁄10		 d.
6-9⁄10
10Number of Accounts opened during Period. 205,928185,934 226,153239,686 857,701
11Number of Accounts closed during Period. 27,43344,760 74,96498,725 245,882
12Number of Accounts remaining open at close of Period. 178,496319,669 470,858611,819 611,819
13Total Amount standing to credit of all open Accounts, inclusive of Interest, to close of Period. £
1,698,221		£
3,377,481		 £
4,993,163		£
6,526,400		 £
6,526,400
14Average Amount standing to credit, of each open Account at close of Period. £ s. d.
9 10 3		 £ s. d.
10 11 4		 £ s. d.
10 12 1		 £ s. d.
10 13 4		 £ s. d.
10 13 4
15Total Sum standing to credit of Post Office Savings Banks on Books of National Debt Commissioners at close of Period.[223] £
1,659,032		£
3,328,182		 £
4,995,663		£
6,582,329		 £
6,582,329
16Balance in hands of Postmaster-General, after allowing for Charges of Management, at close of Period. £
35,692		£
44,413		 £
5,522		£
4,327		 £
4,327
17Total Balance in hand, applicable to payment of Depositors, at close of Period.[224] £
1,694,724		£
3,372,595		 £
5,001,185		£
6,586,656		 £
6,586,656
18Number of Old Savings Banks and Post Office Banks combined, at close of Period. 3,1573,594 3,6593,822 3,822
19Number of Depositors in Old Savings Banks and Post Office Banks combined, at close of Period. 1,732,5561,876,389 1,967,6632,078,346 2,078,346

[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.

Insurances

"Of the whole number of persons whose proposals have been accepted:—

501decided to pay their premiums- annually.
20"   "- half-yearly.
81"   "- quarterly.
5"   "- six times a year.
181"   "- monthly.
3"   " - fortnightly.
and
18have paid their premiums in one sum

"Of the whole number of persons who have commenced to pay premiums, 8 have allowed their policies to lapse by default, and 14, having defaulted, have on application been re-admitted. In no case, however, have I found it necessary to impose the prescribed fine for default.

"The total sum insured at the present time is 60,874l., and the gross annual premium income, exclusive of the sums received in single payments, is 1,924l.

"Of the whole number of proposers, 866 have been males, and 68 females. In a very few cases it has been necessary to charge an extra premium for extra risk, arising out of somewhat defective health; and in the case of a few married women, who were pregnant at the date of the insurance, it has been thought right to add to the first premium, but only to the first premium, a special premium of 10s. per 100l. to cover the risk attendant on confinements.

“No deaths have occurred up to the present time amongst the persons insured.”

Annuities.

"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.

"While the Government Insurance and Annuity Act was under consideration by the Legislature, an opinion was expressed that Friendly Societies which had undertaken to provide, in return for a single subscription, sick pay, old age pay, and death pay, would do well to make arrangements for the transfer of their old age and death risks to the Government, by payment, of course, of a proper consideration, and to confine themselves to dealing with the liabilities contingent on sickness. I have recently received a proposal from a large Friendly Society for the transfer of its old age risks to the Government, and the terms of the arrangement are now under consideration. I am informed, moreover, that other proposals of this kind are likely shortly to be made.

“On the whole, I am able to conclude my observations on this subject by stating, that the Scheme framed for the conduct of Insurance and Annuity business has worked smoothly and well; that the checks established for the protection of the Government have hitherto proved sufficient for their purpose; that the advantages of the measure are gradually becoming known to the classes for whose benefit it was devised, and that, looking to all the circumstances of the case, and the steady and continued growth of the business, the success of the measure may be regarded as established.”

Government Annuities and Insurances granted under Act
27 & 28 Vict. Cap. 43.

An Account showing the Number and Amount of Sums received and paid, and the Number and Amount of Contracts granted by Her Majesty's Postmaster-General, under authority of the Act 27 & 28 Vict. c. 43, from the Commencement of Business on the 17th April, 1865, to the 31st December, 1865. together with the Number and Amount of Contracts in existence on the 31st December, 1865, and the Amount paid for Charges of Management.

(I.)

An Account showing the Number and Amount of Sums received and paid on Account of Government Annuity and Insurance Contracts from the Commencement of Business on the 17th April, 1865, to the 31st December, 1865.

ReceiptsPayments
No.AmountNo.Amount
£ s d£ s d
To Cash received for the purchase of Annuities, viz.:— By Cash paid to the Commissioners for the Reduction of the National Debt for Investment on Account of Sums received for the purchase of Annuities. 23,046  8  9
No.Amount
£ s d		 By Cash paid to Annuitants, viz.:—
For Immediate Annuities8722,738  9  9 £ s d
For Deferred Annuities, Money not returnable27 845  7 10Cash paid423 13  4
Ditto, Money returnable40497  7  6 15424,081  5  1
Warrants issued, but not cashed at date		5 10  0 33429  8  4
To Cash received for Fees on Annuity Contracts
139 14  0		 By Cash paid to the Commissioners for the Reduction of the National Debt for Investment on account of Premiums received on Contracts for Sums payable at Death 984  0  0
To Cash received from the Commissioners for the Reduction of the National Debt for payment to Annuitants:— By Balance remaining to be paid to the Commissioners for the Reduction of the National Debt on the 31st December, 1865, viz.:—

Gross		£ s d
430  5  0		 On account of Annuity Contracts, including Fees £ s d
1,174 10  4
Less Income Tax0 16  8 429  8  4
To Cash received on account of Contracts for the payment of Sums at Death 1,0761,165 13  1
On Account of Contracts for Sums payable at Death		 181 13  11,356  3  5
£25,816  8  6 £25,816    6

(II.)

An Account showing the Number and Amount of Contracts entered into by Her Majesty's Postmaster-General from the Commencement of Business on the 17th April, 1865, to the 31st December, 1865, and the Number and Amount of Contracts in existence on the 31st December, 1865.

Contracts.
No.Amount.
Contracts for Annuities granted from the commencement of business on the 17th April, 1865, to the 31st of December, 1865, viz.:— £   s. d.
£ s. d.
    Immediate Annuities 872,100  0  0
    Deferred Annuities, Money not returnable 20438  4  0
    Deferred Annuities, Money returnable 25511 10  0 1323,049 14  0
Contracts for Sums payable at Death granted from the commencement of business on the 17th April, 1865, to the 31st December, 186554740,649  2  4
Contracts for Annuities in existence on the 31st December, 1865, viz.:—
£ s. d.
    Immediate Annuities 872,100  0  0
    Deferred Annuities, Money not returnable 20436  4  0
    Deferred Annuities, Money returnable 25511 10  0 1323,049 14  0
Contracts for Sums payable at Death in existence on the 31st December, 186554440,349  2  4

(III.)

An Account showing the Amount paid for the Charges of Management from the Commencement of Business on the 17th April, 1865 to the 31st December, 1865.

£ s. d.
Salaries of Officers159 0 10
Stamps on Policies32 10 0
Fees to Medical Officers13 7 6
Incidental disbursements, including Travelling Charges7 3 8
Postage123 4 5
£335 6 6

INDEX.

A.

B.

C.

D.

E.

F.

G.

H.

I. J. K.

L.