CONCLUDING CHAPTER.
"And when I shall go to my account, and the great
Questioner whose judgments err not, shall say to me, 'What
didst thou with the lent talent?' I can truly answer,
'Lord, it is here; and with it all that I could add to
it--doing my best to make little much.'"--EBENEZER ELLIOTT.
The above words of the brave Corn Law Rhymer refer of course to far
higher duties than any with which we have dealt in this volume. That
application may be made of them even to our present subject is
nevertheless clear, and we leave the thoughtful reader to make it.
Real economy and frugality are virtues, and as such are inculcated in
the Christian code; neglect of them is condemned both by the moral and
the religious code. Christ expressed the very spirit of economy, care
of little things, a prudent thrift, and avoidance of all waste, when
after miraculously feeding the multitude in the desert He instructed
His disciples to "gather up the fragments that remain, that nothing be
lost:" and it is at least noteworthy, that this injunction immediately
followed another, wherein He warned the same men against the greed of
life, telling them that a man's riches did not consist in the
abundance of his possessions.
This may be perhaps a very fitting opportunity to say that a great
deal depends upon the motive and the object for which such virtues are
cultivated; that it is very possible to attach far too great an
importance to mere habits of saving: the motive for saving may at
times be vicious, and the purpose for which and the manner how the
hoards once scraped together may be applied, more vicious still. This
is so palpable that we need not dwell upon the subject. Not less so is
the wise medium course to be followed. The difference between those
who cultivate and those who neglect frugal and economical habits may
be expressed simply in the former having bread enough and to spare,
and the latter having bread for to-day--and not always that--but none
for to-morrow. It is by the capacity of looking forward in the present
moment to the possibilities of to-morrow that the civilized man is
distinguished from the savage; it is by the readiness with which
provision is made for possible emergencies that the wise man is
distinguished from the fool. Real economy, aided by prudence, is a
virtue. Cicero says that "the best source of wealth is economy;" but
it is also the best source of comfort, self-respect, and independence.
Prudence thinks of an adverse season amidst the prosperity of a good
one; and Economy arranges for the bad time. Prudence thinks of two
very possible and one certain contingency in the life of every human
being; and Economy weighs the chances well and provides for the
worst--it provides for the incidence of failing health, and for the
chances of losing, through one of the many eventualities of life,
worldly position, or the means of breadwinning; and it also does
something to provide for that time when the anxieties, the joys, and
the sorrows of life shall be hushed in death.
It is well, therefore, and it is almost indispensable, that these
habits should be cultivated; it is well also, and quite indispensable,
that means and provisions should be used to this end. The first stone
which the learned Wotton refers to in the motto on the first page of
this volume, is without doubt the first act in the habit of economy;
and we have been endeavouring throughout the course of this history to
point out with some approach to accuracy the exact spot where a person
may lay this indispensable "first stone," where he may probably best
lay the second or third, and how possibly he may commence with the
superstructure.
Savings Banks and the other provident measures of which we have spoken
are principally to be regarded as preliminary means, the first or
stepping-stones to higher things. When a man has become, for example,
a depositor in any of the numerous kinds of Savings Banks, he has only
taken, as it were, the first step on the road to competence; but one
step leads to another.[206] A very slight knowledge of human nature
will show that when once a man gets his foot upon the round of the
social ladder, and keeps it there till he is secure of his footing, he
is soon ambitious of taking the next step. So true is this regarded,
that in common parlance many kinds of journeymen are said to have made
their fortune when they have saved their first pound. When George
Stephenson's wages were raised to twelve shillings a week, he declared
"he was now a made man for life;" when he had saved his first guinea,
he proudly said to one of his mates, that he "was now a rich man." And
in one sense he was right; he had taken the first step; and further,
"The man who," says Mr. Smiles, "after satisfying his wants, has
something to spare, is no longer poor."
We have said that Savings Banks are preliminary means. We think,
however, that they are the _safest_ initiatory steps that could be
taken by those of the labouring classes who wish to rise from small
beginnings to those higher things spoken of.[207] Thousands of people
of small means are content with them; with the Savings Bank they
begin, continue, and end, and many of them have had reason to
congratulate themselves upon having taken such a course: they have
been saved endless trouble and disaster, have in the great majority of
instances felt that their earnings were safe, that the profits were
not going up and down like those of their neighbours, but were always
steady, always to be relied upon, and always calculable to a penny.
That these returns are really not so insignificant as many suppose,
and that if small earnings are allowed to accumulate at compound
interest they must make a decent provision against the winter of life,
the following case will demonstrate.[208] The late Mr. Thomas Allen of
Gledholt, Huddersfield, on the 28th of March, 1818, gave to each of
his seven servants a sovereign to become depositors on the opening of
the Huddersfield Savings Bank. On that day Esther Sykes became a
depositor to the extent of 1_l._
She continued to deposit the Savings from her wages £ s. d.
from that time to the 21st of July, 1828, amounting to 119 11 0
Interest accruing from 1818 to 1828 30 9 0
---------
150 0 0
=========
This sum of £150 being allowed to accumulate by interest
until 1836 became 200 0 0
---------
From 1836 interest on this sum had to be withdrawn
half-yearly, which from 1836 to 1863 amounted to 160 9 8
---------
Esther Sykes died March, 1863, aged 78, and her
executors received from the Bank the sum of 200 0 0
=========
Thus in this interesting case the cash deposited at different times
amounted to 119_l._ and the total amount of interest on that sum was
240_l._, of which 160_l._ was paid to the depositor herself during her
lifetime, and 200_l._ to her executors. It is not a little curious,
nor is it surprising, that five of the relatives and legatees of this
Esther Sykes should have gone to the Huddersfield Savings Bank to
deposit the money left to them.
Of the other promising provident measures adapted to the requirements
of the industrious classes, the most important, but at the same time a
somewhat hazardous one, is that of co-operative societies. These
societies, though beset with difficulties, are doing a good work in
many localities. The stronghold of the system, be it remembered, is in
a town where, owing to the cupidity of the manager of the Savings
Bank, the savings of years were swallowed up, and, in consequence,
habits of accumulation in this form were rooted out from among the
people. The co-operative principle can be directly traced to the
wide-spread distrust created by this gigantic and far-reaching fraud.
It remains now to be seen whether a higher intelligence and a greater
power of self-government than is generally found in large associations
of working men will not be indispensable to the progress of these
societies. Personally, we have little hesitation in affirming that the
real progress of these classes will be safer, and not only safer but
quicker, if the bulk of them will leave combined enterprises of this
nature to those of their fellows who have already saved money enough
to enable them not only to enter into such business, but to lose in
the venture. Once a man has run up an account in any of the people's
banks--whether the old or the new banks does not make much
difference--he might, and perhaps ought to risk a proportion in such
societies, which, where properly and prudently managed, are very
beneficial to all connected with them.[209]
The same remarks apply to Building Societies to a great extent; though
here perhaps there is little of the risk which besets all kinds of
large and small joint-stock companies. Unfortunately, however, the
working-class element, which was prominent at the origination of
building clubs, is being rapidly eliminated from them in most
localities, and almost everywhere the tradesman class predominates.[210]
The working classes, if they have not been saving their earnings for
years, cannot command and pay, with that regularity necessary in such
enterprises, the instalments due; and hence they either do not venture
to join at all (except where the club is on a very small scale), or if
they do, they ultimately withdraw from them.[211]
Fifty other different objects might be mentioned for which the working
classes require the means of accumulating the trifles they can save
with the object of employing some of the money on higher kinds of
investments when it has amounted to a good round sum; the purchase of
a cottage, of an annuity, of a life insurance policy, are only a few
of them. In this way the Savings Bank not only assists the industrious
classes by offering machinery expressly fitted for their present
advantage, but does an equally beneficial work in leading them on
safely to higher and more important investments.
Let it be granted that Savings Banks fulfil all, or most, of the
conditions which we have assigned them and ask for them, what then
remains to be done to make their advantages better known, and to bring
them still more within the reach of those classes for which they are
specially designed, and to which they are specially applicable? It may
indeed be questioned whether, having provided the facilities, society
should not now leave the matter where it is, to the operation of
advancing intelligence, to the growth of economical knowledge, and to
the increase in the experience of the poorer classes. Working men are
tired, and to our own knowledge have long been, of hearing of
societies and organizations for their elevation;[212] they know
perfectly well that their "elevation"--for which no doubt too few of
them care--must begin, continue, and end in themselves. The better
class of workmen laugh at many schemes designed for their benefit; and
although there may be odd instances of men who seem not to be above
being turned into an "object," it is simply repellant to the great
bulk of them.[213]
A working man, though he may not like to be "raised," may like to be
advised how he can best help himself: and such advice is quite
necessary and legitimate under certain conditions and in certain
circumstances. It altogether depends, it appears to us, upon the
person who does it and the manner in which it is done. First and
foremost it seems to be not only necessary but right that masters of
workmen should endeavour to influence those under them; that they
should--
"Relinquishing their several 'vantage posts
Of wealthy ease and honourable toil"--
do something to direct aright those energies from which they have
benefited, and which if rightly developed may also in time lead their
possessors to comfort, to reputation, even to wealth. A master's duty
to his workmen, as we remember to have seen it expressed somewhere,
scarcely ends when he pays them their wages. The men may be thoroughly
independent, and after accomplishing their stipulated work may be, and
feel that they are, their own masters: but there are nevertheless
divers opportunities for masters, without claiming or assuming
superiority, to benefit those employed under them. The master is
pretty generally under the pressing responsibility of superior
knowledge and greater experience; and he who sees how the worldly
position of his men can be _safely_ improved, and does not at least
attempt to suggest or help to this improvement, can scarcely be said
to fulfil the duties of his position. An employer may, indeed, be too
conscious of his dignity, and, standing on the lofty pedestal reared
for him or which he has reared for himself, throw down with a lavish
hand bounties upon his men; and they will not be accepted, and perhaps
ought not to be: but let him show a personal interest in them,
prudently advise them, "show a wisdom that shall bridge the gulf" that
separates the two, and he will not only do much to destroy the
feeling, which has become almost instinctive among workmen, that the
master is somehow selfishly acting for his own ultimate benefit, but
he will awaken a confidence, become the object of the men's esteem,
and wield an enormous influence over them.
Let so much as this be granted, or even let part of it be granted,
employers of labour may not only turn their thoughts to such schemes
for savings as we have been engaged upon, but they may easily arrange,
in conjunction with the proper authorities, branch schemes such as
described in the last two chapters, to be suited to the varying
circumstances of the case. If they are convinced of the benefits of
the one, let them advise; if they wish to give reasonable help, let
them act.
Without reference, however, to the Government schemes just referred
to, the State sets an admirable example to all large employers in the
provident arrangements which have been made for public officers; and
we think there must be much in the provisions in question which might
be turned to good account in, and be made applicable to, large private
concerns. Few Government _employés_ should ever come to beggary; if
they have not been prematurely cast aside, either by wilful misconduct
or gross carelessness on their own part, they cannot come to the
parish: further, great numbers of them are assisted to make provision
for their families at their death. Nearly all Government servants may
be said to have bargained with their masters at the time they entered
the service, not only for a fair day's wage for a fair day's work, but
for nearly all the provisions of a Friendly Society during sickness;
for a Deferred Annuity when they are past work, or after a certain
age; and in some instances--it ought to be in all--for assistance
towards insuring their lives for the benefit of their family. It were
idle to say that none of these considerations enter into the original
contract, and have had no influence on the scale of remuneration paid
for actual work; it were far more to the point to say that departments
of Government compel their servants to be provident and to prepare;
for sickness, old age, and death, and make it involuntary in the case
of sickness and old age, by taking the necessary payments upon
themselves.
Of the scheme of Life Insurance at present in force in the Post
Office, for example, we spoke in the previous chapter. With regard to
sickness, a certain time is allowed for full pay; another definite
period for half-pay. In respect to Superannuation Allowances, which we
have termed the Deferred Annuities, it is true that at one time civil
servants were required to pay towards it out of their salaries; but
this has been discontinued by Act of Parliament, and the present
arrangement may simply be considered as a small rise in the rate of
wages--the deduction being compulsory on all classes alike.
Why should not a similar plan, or at any rate the principle of it, be
urged upon private employers? Spite of some of the difficulties which
would at once present themselves, we believe that there is little
impracticable about it, and little that might not be surmounted. Even
if it should be found impossible to apply such arrangements to many
concerns, there is still the admirable machinery designed in connexion
with the Annuities Act of 1864; and we again commend the plan to the
attention and candour of large employers.
We think that to a very large extent the influence which masters must
exercise over their workmen, or which they could not fail to exercise
if they were to show a proper degree of interest in their
subordinates, has never yet been exercised. If reason, persuasion,
entreaty of a certain kind, alike fail--as they may often have
done--to induce saving habits and due provident provision for
themselves and families, we confess a difficult problem presents
itself. This difficulty has been felt for years. Forty years ago the
_Quarterly Review_, in an able article, said that Savings Banks ought
to have formed a sinking fund before that time for the abolition of
poor rates: "If the present state of things continues," says the
writer, "it should become a question whether the master ought not to
deposit in the Savings Bank at least a shilling in the pound of all
wages paid by him, to be placed to the account of the individuals whom
he employs." Several times since this was written, the _Quarterly
Review_ has returned to the charge. For many years our system of Poor
Laws has rigidly assessed property for the relief of poverty, and
secured the necessaries of life for all the destitute, no matter how
largely they themselves may have been answerable for their destitute
condition. With some beneficial changes the law stands the same, and
is scrupulously enforced.
It is very clear that many men's wages are so high in good times,
that, if they worked steadily and lived with moderation, they might
easily reserve out of them a fund of supply against times of want,
which would carry them through till their trade revived. The immense
power in the hands of the working classes to promote their own
self-dependence is illustrated by the enormous sums spent by these
classes alone in mere indulgence; and it is shown again, in the
immense funds raised amongst them to support combinations and strikes.
That thousands will not use the means they have is proved by their
excesses, their prodigality, the recklessness of their expenditure,
the division of the days of the week into days of work and days of
gross and obstinate idleness; and in much of this--regarding the
result which follows to themselves, their wives and families, if they
have the misfortune to have them--there is perhaps more real
delinquency than in many of the crimes for which penal statutes have
been framed.
The question is at any rate admissible, whether the same power which
can order a compulsory payment of rates to support the poor, might
not, and ought not, to restrict the means by which men are made and
kept in poverty; or whether the same laws which make the frugal
support the improvident should not also compel the improvident to do
something to support themselves. This _principle_ is indeed recognised
by Government, as we have already shown, in the arrangements made for
its own servants; it is therefore not a question so much of principle
as of _degree_, and whether the Government should insist on a measure
of coercive contribution applying to others beyond their control. "I
have often thought," said the late Mr. J. Silk Buckingham, in a letter
now before us, "it would be perfectly wise and just to pass a law
compelling all employers of labour of every class, age, and sex, to
deduct five per cent. from the wages or salaries of all in their
employ, to be invested in the Government funds for a Deferred Annuity
after sixty years of age, giving power to the labourers themselves to
make further additions as they saw fit on the voluntary principle. If
it should be said that no Government has a right to make people
provide for themselves by force of law, I am sure they have as great a
right to do this as to make the honest, sober, and industrious part of
the people pay in poor rates and taxes for maintaining paupers and
criminals, who have become so chiefly through want of prudential
conduct in youth."[214]
Finally, it is upon those who will not, and cannot by any available
means, be brought to apply the remedy of provident investments during
the heyday of life for themselves, that we think some such arrangement
as that upon which the Government insists on employing civil servants,
should be brought to bear, and that, only as a _dernier ressort_, our
Legislature should consider whether it were not possible, and within
its province, to apply a more complete and direct remedy by force of
law. Formidable obstacles, we repeat, may be imagined, and actually
would be experienced, in either case; but they could easily be
smoothed by the fifty years' experience which the country has had of
Savings Bank management and the conduct of provident schemes
generally, and they may very possibly be entirely removed by the
far-reaching, simple, ancillary measures of the last four years.
[206] "To save money," says Mr. Greg, "and to have invested it
securely, is to have become a capitalist. To have become a
capitalist is for the poor man to have overleaped a great gulf; to
have opened a path for himself into a new world; to have started
on a career which may lead him, as it has led so many originally
not more favoured by fortune than himself, to comfort, to
reputation, to wealth, to power."
[207] "I have studied the matter to the core, and it has resulted
in a firm conviction, that were all the many valuable schemes
which have been devised for ameliorating the condition of the
masses conjoined, for safely, surely, and reasonably meeting the
exigencies of every-day life, the Savings Bank single-handed would
outvie them all."--Mr. James Frame's _Tracts on Savings Banks_.
[208] We are indebted to Mr. Sikes of Huddersfield for the
particulars of this case.
[209] Mr. W. B. Chorley, author of a _Handbook of Social
Intercourse_, &c. &c. was asked his opinion on co-operative
societies, that opinion to be inserted in the _Co-operator_, the
Society's organ. Mr. Chorley gives it very candidly, the Editor
with equal candour giving it insertion. "The working man's
earnings should be absolutely safe. Post Office Savings Banks are
the only means of deposit which I am warranted in unconditionally
recommending under all circumstances. I am far from saying that in
peculiar cases and districts the workman may not act judiciously
in joining co-operative stores; but it cannot be extended beyond a
certain point with success, and I fear that any attempts to push
or rapidly extend the plan over a large area will prove a mistake
ending in failure and loss." ... Mr. Smiles in his _Workmen's
Earnings, Strikes, and Savings_, a reprint of articles from the
_Quarterly Review_, and Mr. Greg in his _Provident Investments_, a
reprint of an article in the _Edinburgh Review_, express similar
views on the co-operative principle as applied exclusively to the
working classes as those we have quoted from Mr. Chorley.
[210] The first Benefit Building Society which can be traced was
founded in 1815 under the auspices of the Earl of Selkirk. It was
a village club composed of some working men in Kirkcudbright, in
Scotland. Other institutions of a similar kind followed, and were
called "Menages," and soon afterwards the principle was introduced
into England. In 1836 the first Act was passed with regard to
them.
[211] "A Building Society of which I am a trustee started some
five years ago with a considerable majority of working men; but in
the course of its operations (on looking over the list to-day) I
find there are very few who can be strictly called working men
left. The punctuality of the payments, the fines, and those
arrangements which are essential to the proper working of a
society, acting upon men who are occasionally thrown out of
employment, and without means altogether, have compelled them to
withdraw themselves."--_Evidence of Mr. W. Cooper. Committee on
Provident Investments._ 1850.
[212] A large volume might be compiled which should simply give a
bare indication of the aims of such schemes and societies,
including one set forth in a MS. volume which we have seen in the
British Museum, entitled, _Greevous Grones for the Poore, done by
a Wellwisher_, down to the latest benevolent scheme, and its list
of patrons beginning with an Archbishop and ending with the
Squire.
[213] Savings Banks are not free from an amount of patronizing,
which is only very rarely appreciated by the workman, though it
may delight the very small shopkeeper class. Mr. Boodle, in his
examination before a Savings Bank Committee, in 1849, thought fit
to relate a very ludicrous instance of this, which, though told to
show the amount of confidence reposed in the names of some
trustees, really proves something very different. "At one time,"
says Mr. Boodle, "the late Lord Spencer was attending as manager,
and a depositor put in a sum of money; he looked at his book when
it was returned to him, and finding the name of 'Spencer,' asked
the actuary who it was. The actuary replied 'Lord Spencer.' The
man said, 'You do not mean that this is Lord Spencer?' When
reassured, he said, 'Then I will give another sovereign,' and
actually did put in another sovereign." This must have been a
red-letter day in this person's history, though it reasonably
admits of doubt whether the incident would be matter of personal
gratification to Lord Spencer, the wise and excellent Lord Althorp
of the Lower House.
[214] "For the last twelve years," says a living practical
philanthropist, "I have been considerably engaged in the
administration of Poor Law Relief. I could not disguise from my
reluctant notice the painful fact of how large and overwhelming a
percentage of applicants for relief had been, for long periods of
their life, in the habit of earning wages, the surplus of which
remaining over and above the cost of their maintenance, would, if
properly invested, have secured them an honourable independent
subsistence for the unproductive residue of their lives. Their
frugal contemporaries, whom they scandalized by their example (and
it might have been said, derided for what they considered their
meanness), they further tax with the burden of their subsistence.
They commit a constructive injustice upon their more provident
fellow-citizens; and when society inveighs against the gratuitous
pauper, not because he is poor, but because he has viciously made
himself so, society is not unjust in such a retaliation upon its
trespassers. The gracious law of England, which makes the Poor Law
compulsory, would deal with scarcely more than even-handed justice
were it to compel some kind of club payment too. And if it were an
infringement of the liberty of the subject to compel my neighbour
to support a club, it is an infringement of my liberty to compel
me to support my neighbour."--MELIORA, _edited by Viscount
Ingestre_, vol. ii.
APPENDIX.
(A.)
_An Abstract of the Provisions of Mr. Whitbread's Bill, as amended
by Committee_, "_for establishing a Fund and Assurance Office for
Investing the Savings of the Poor_." (1807.)[215]
This Bill provided that the _Office of the Poor's Fund_ should be
under the management and direction of so many Commissioners as his
Majesty should see fit to appoint under his royal sign manual; that
they should subscribe an oath to execute their powers and trusts
faithfully and honestly; that any two of them might together execute
the duties of the Office; and further, that the said Commissioners
might, with the approbation of the Lords of the Treasury, appoint some
person properly qualified to conduct the business, under the title of
Accountant, and also such cashiers, clerks, and servants as they
should find necessary.
It provided, that any person who should subsist wholly or principally
by the wages of his or her labours should be entitled to the benefits
and advantages of this Office, under and subject to the following
_Rules and Regulations of the Office of the Poor's Fund._
1. That any proper person may so pay to the Accountant, or remit
through the Post Office, any sum not exceeding five pounds.
2. That no person remit or pay more than 20_l._ in any one year, nor
more than 200_l._ in the whole.
3. That when any sum is remitted through the Post Office, the
Postmaster of the place from which the money is sent shall keep a
proper record of each transaction, and adopt such measures as the
Postmaster-General shall from time to time direct; and that each
Postmaster shall receive for his trouble, from the person paying in
the money, one penny in the pound upon the value thereof.
4. That cash accounts with each person shall be opened in the
principal office in London, and that the money which may be paid or
remitted shall be laid out each week in the purchase of perpetual
annuities, the annuities so purchased to stand in the name of the
Commissioners of the Poor's Fund.
5. That, after such purchase, the proportion of each person, from the
amount contributed, shall be credited in a stock account, he or she
being debited in the cash account for the sum expended.
6. That the dividends as they become due be likewise carried to the
credit of the said persons; and on the sums amounting to ten
shillings, the same shall be payable to him or her.
7. That the dividends may be allowed to accumulate, but principal and
dividends must not exceed 20_l._ in any one year, nor 200_l._ in all.
8. That any person entitled to the annuities purchased in this manner
who may wish to sell the whole or part, will be allowed to do so on
signifying the desire personally, or in writing. In either case the
person shall be furnished with a form of request for the purpose, and,
when properly filled up and attested, the annuities shall be sold.
9. That the sale of all annuities desired in one week shall be made on
some one day in the next.
10. That after the sale the proportion due to each person shall be
carried to his or her cash account, and the money be payable
forthwith.
11. That the Accountant shall make out and sign a warrant for the sums
called for, the person giving a receipt on the warrant when it is
paid.
12. That persons entitled to the money may authorize in writing any
other person to receive the warrant, and after signing the warrant the
money may be paid to such other person.
13. That any person residing beyond the limits of the two-penny post
(London) may have such warrant transmitted through the Post Office.
14. That when a sum is paid to the cashier or other officer for the
purchase of annuities, a proper receipt shall be given; that when a
sum is transmitted through the post, the receipt shall be at once sent
through the post; and that when the money has been laid out in such
purchases as were ordered to be made, the certificates of such
purchases, with their amount and denomination, shall be sent to the
purchasers, or such other persons as they shall appoint.
15. Provides for the investment of small surpluses, and the payment of
the dividends upon them.
16. Provides that no payment, gratuity, or reward shall be allowed to
be made to any person employed in the Office of the Poor's Fund over
and above the regular salaries determined upon.
* * * * *
Other clauses of the Act provided that the expenses of the Office
should be defrayed by such sums as were secured by the dividend,
interest, and accumulations of the surplus arising from unclaimed
dividends, the remainder of the expenses being borne on the
Consolidated Fund.
* * * * *
With regard to _The Poor's Assurance Office_, the Bill provided for
the appointment of the principal conductor, who should be called "the
Actuary," in the same manner in which "the office of Accountant" was
to be created for the former business.
It provided for the calculation of Tables, which Tables should produce
"sufficient funds to answer the payments to be assured, as well as the
charges and expenses of the establishment and management of such
Assurance Office;" that these Tables should be varied; that they
should be approved by the Lords of the Treasury, who should make them
public in such manner as they saw fit.
The persons who were entitled to the benefits of the Poor's Fund
should also be entitled to the benefits of Assurance Office under the
following
_Rules and Regulations of the Poor's Assurance Office._
1. That any person desirous of insuring his life shall deliver or send
the usual particulars to the Assurance Office.
2. That in every case proof of age and proof of sound health should be
produced; the affidavits in each case to be sworn to before a Justice
of the Peace.
3. That, in the case of any misrepresentation being proved in the
original proposals, the sums paid shall be forfeited.
4. That the Actuary may require any persons proposing to insure to
attend personally at the Assurance Office, providing they live within
the limits of the London two-penny post.
5. That no payment for any assurance, whether annually, half-yearly or
quarterly, shall be less than ten shillings.
6. That no annual payment, nor the entire yearly amount of payments,
shall exceed five pounds; that no assurance shall be made for more
than 200_l._; or if a gross sum and an annuity shall both be assured
to the same person, the whole shall not exceed the value of 200_l._
7. Provides for fines for arrears according to the time which has
elapsed, and for renewing a policy which may have become void.
8. That all money received shall be vested in transferable annuities,
as in the case of the Poor's Fund.
9. Provides for payment on proof of death--the affidavit to be sworn
to before a Justice of the Peace.
10. That the rules for the management of the Assurance Office, and the
remuneration to be paid to its officers, shall be settled on the same
basis as those for the Poor's Fund.
* * * * *
The Act then goes on to provide that the Commissioners shall be
empowered to frame rules for the guidance of the officers of each
Office; that the Commissioners to be appointed shall deliver to the
Governor and Company of the Bank of England a true and attested copy
of their commission of appointment; that this shall be their authority
for transacting business with the Bank, and shall be received and
admitted as evidence in all courts of law and equity, and before all
judges and magistrates, of the due and legal appointment of the
Commissioners, and authorizing them to exercise all the powers and
authorities granted to them under the Act.
The Act then further provides that all dividends, &c., shall be
exempted from the tax on property, and from the stamp duty on probates
and letters of administration.
That the policies and other instruments shall be exempt from stamp
duties.
That all letters and packets shall be sent by or through the Post
Office, to or from either of the two departments, exempt from the
payment of all postage.
The Act concludes by making provision for the punishment of forgery
and perjury.
[215] Referred to at some length at page 23, and other portions of
this work, where the preamble of the bill is given.
(B.)
_An Abstract of the Provisions of the Consolidated Act of
1863, entitled_ "_An Act to Consolidate and Amend the Laws
relating to Savings Banks_." (26 & 27 Vict. cap. 87.--28th
July 1863.)
_Sec. 1._ Provides for the Repeal of previous Acts and parts of Acts,
as set forth in the following Schedule:--
+------------+-------------------------------------+------------------+
|Date of Act.| Title. | Extent of Repeal.|
+------------+-------------------------------------+------------------+
|9 Geo. IV. | An Act to consolidate and amend | The whole. |
| c. 92. | the Laws relating to Savings | |
| | Banks. | |
| | | |
|3 Will. IV. | An Act to enable Depositors in | Sections 21, 22, |
| c. 14. | Savings Banks and others to | 25, 28, 29, 30,|
| | purchase Government Annuities | 31, 32, 33, 34,|
| | through the medium of Savings | and 35. |
| | Banks, and to amend an Act of | |
| | the Ninth Year of His late | |
| | Majesty to consolidate and | |
| | amend the Laws relating to | |
| | Savings Banks. | |
| | | |
|5 & 6 | An Act to extend to Scotland | The whole. |
| Will. IV. | certain Provisions of an Act | |
| c. 57. | of the Ninth Year of His late | |
| | Majesty to consolidate and | |
| | amend the Laws relating to | |
| | Savings Banks, and to consolidate | |
| | and amend the Laws relating to | |
| | Savings Banks in Scotland. | |
| | | |
|7 & 8 Vict. | An Act to amend the Laws relating | The whole. |
| c. 83. | to Savings Banks, and to the | |
| | Purchase of Government Annuities | |
| | through the medium of Savings | |
| | Banks. | |
| | | |
|11 & 12 | An Act to amend the Laws relating | The whole. |
| Vict. | to Savings Banks in Ireland. | |
| c. 133. | | |
| | | |
|17 & 18 | An Act to continue an Act of the | Section 2. |
| Vict. | Twelfth Year of Her present | |
| c. 50. | Majesty for amending the Laws | |
| | relating to Savings Banks in | |
| | Ireland, and to authorize Friendly| |
| | Societies to invest the whole of | |
| | their Funds in Savings Banks. | |
| | | |
|22 & 23 | An Act to enable Charitable and | The whole. |
| Vict. | Provident Societies and Penny | |
| c. 53. | Savings Banks to invest all their | |
| | Proceeds in Savings Banks. | |
| | | |
|23 & 24 | An Act to make further Provision | The whole. |
| Vict. | with respect to Moneys received | |
| c. 137. | from Savings Banks and Friendly | |
| | Societies. | |
+------------+-------------------------------------+------------------+
_Sec.[216] 2._ Provides that persons who may have formed or shall form
any society or institution of the nature of a bank to receive deposits
of money for the benefit of persons depositing the same, accumulating
at compound interest, and repayable when required, but, after the
necessary expenses have been met, deriving no benefit from such money,
shall have the benefit of this Act if they wish it. The conditions
annexed are, that such persons shall cause the rules and regulations
for the conduct of the business to be entered, deposited, and filed,
as shall be afterwards directed.
Further, that no bank, the rules of which shall not be sanctioned and
approved by the National Debt Commissioners, shall be entitled to the
provisions of this Act. (_a_)
_Sec. 3._ Savings Banks under the Act shall keep a book in which shall
be entered the rules of each bank, and these books shall be open at
all reasonable times to the inspection of depositors. When any of the
rules are altered, such alterations to be entered in the book. The
rules not to be in force till such alteration is made. (_a_)
_Sec. 4._ Two written or printed copies of rules shall be sent by
Savings Bank trustees to the certifying barrister, who must certify
that they are according to law; the certificate of the barrister to be
paid for by a fee not to exceed one guinea; and the barrister, after
certifying the rules, to return one copy to the trustees and transmit
the other copy to the National Debt Commissioners. (_a_)
_Sec. 5._ Every Savings Bank certified under the provisions of this
Act to bear the title of "Savings Bank certified under the Act of
1863;" any other bank, company, or person adopting this title, to be
declared guilty of a misdemeanour, and punishable accordingly.
_Sec. 6._ Requires that the following regulations shall be adopted and
enrolled among the rules of all Savings Banks:--
(1) The treasurer, trustees, or managers shall not derive
any benefit from deposits, nor directly or indirectly have
any salary, allowance, profit, or benefit whatsoever
beyond their actual expenses for the purposes of the bank.
The expenses of management, including the remuneration to
paid officers, does not come within the meaning of this
clause. (_a_)
(2) That not less than two persons, being trustees,
managers, or paid officers employed for this specific
purpose, shall be present on all occasions of public
business, and be parties to every transaction of deposit
and repayment, so as to form a double check of every such
transaction.
(3) The depositor's pass book to be compared with the
ledger on every transaction of repayment and on its first
production after the 20th of November in each year.
(4) The depositor to produce his book at least once in
each year for this examination.
(5) No receipt to be taken or money paid except at the
bank and during the hours of public business.
(6) A public accountant or auditor, not of their own body,
to examine the books of the bank, and to report the
result, not less than once in every half-year, and to
report to the committee of management the correct amount
of the liabilities and assets of the bank.
(7) That a book containing an extracted list of each
depositor's balance, omitting the name, but giving the
distinctive number and separate amount of each, checked
and audited as above, be open during the hours of public
business for the inspection of any depositor.
(8) The trustees or committee of management to hold
meetings at least every half-year, and keep minutes of
their proceedings in a book to be provided for the
purpose.
(9) In the case of banks having branch agencies, the rules
to provide for the due receipt and accounting of all
moneys received; for the presence of a second party to
every transaction; and for a periodical examination of the
depositor's book.
_Sec. 7._ Provides that the trustees of every Savings Bank shall
transmit weekly returns to the National Debt Office, giving such
particulars as the Commissioners shall direct, showing the week's
transactions and the cash balances remaining in the treasurer's hands.
_Sec. 8._ The treasurer, actuary, or cashier, and every paid officer
of a Savings Bank entrusted with the receipt of money, to give
security by means of bond or bonds, with one or more sureties, to the
Comptroller-General of the National Debt Office. (_c_)
_Sec. 9._ Provides that any officer receiving deposits and not paying
them over to the managers shall be guilty of a misdemeanour. (_c_)
_Sec. 10._ The moneys, goods, chattels, and effects of all Savings
Banks to be invested in the trustees for the time being. (_a_)
_Sec. 11._ No trustee or manager of Savings Banks in Great Britain
shall be personally liable except--
(1) For moneys actually received by him on account of said
banks and not paid over in the usual manner.
(2) For neglect or omission to comply with the above
recited regulations as to the maintenance of checks, the
audit of accounts, the holding of meetings and the keeping
of the minutes of the same;
(3) Or for neglect in taking security from his subordinate
officers.
_Sec. 12._ Trustees or managers in Ireland may limit the amount of
their responsibility by declaring in writing that they are willing to
be answerable for a specific amount only, which shall not be less,
however, than 100_l._ At the same time Irish trustees, &c., to be
liable for amounts actually received by them and not accounted for.
(_d_) and (_e_)
_Sec. 13._ Provides that the treasurer or any trustee may be required,
on a demand from not less than two trustees and three managers, or
from a meeting of trustee and managers, to pay over all the moneys
remaining in his or their hands, and assign and transfer or deliver
all securities and effects, books, papers or other property, to such
persons as may be appointed to receive them; proceedings to be taken
in case of any neglect or refusal to comply with the demand. (_a_)
_Sec. 14._ Provides that executors, &c., of officers of Savings Banks
shall pay money due to Savings Banks, in case of death, bankruptcy or
insolvency, before any other debts whatsoever. (_b_)
_See. 15._ The trustees of Savings Banks shall invest all the money
received by them in the Banks of England or Ireland; and no sum or
sums shall be paid or laid out by trustees in any other manner or upon
any other security whatever, except only such sums of money as from
time to time must remain in the hands of the treasurers of such banks
to answer the exigencies thereof. This provision not to prevent any
depositor withdrawing his money from a Savings Bank and investing the
same in any other securities. (_a_)
_Sec. 16._ Provides that trustees of Savings Banks may receive money
from depositors and apply it for their benefit in any other manner
agreed upon. (_a_)
_Sec. 17._ Provides that central banks may invest the money of branch
banks in the manner already described. (_a_)
_Sec. 18._ Provides penalties for false declarations for the purpose
of paying money into the Banks of England or Ireland. (_a_)
_Sec. 19._ The Commissioners of the National Debt to invest the money
paid into the bank in the purchase of bank annuities, Exchequer-bills,
or parliamentary securities of whatsoever kind created or issued, or
any stock or debenture guaranteed by authority of Parliament; the
interest arising from the money so invested to be in like manner
invested as above. (_a_)
_Sec. 20._ Makes it lawful for any three or more National Debt
Commissioners to execute and to do all matters and things required by
the operations of this Act. (_b_)
_Sec. 21._ Money invested with the Commissioners to be allowed
interest at the rate of three pounds five shillings per cent. per
annum. (_c_)
_Sec. 22._ Interest due from the Commissioners to be calculated
half-yearly up to Nov. 20 and May 20, and carried to the account of
Savings Bank additional principal. No interest to be allowed on any
fractional part of a pound. (_a_)
_Sec. 23._ Interest arising to depositors may be calculated yearly, or
twice a year, and carried to the principal. Interest to depositors not
to exceed three pounds and tenpence per cent. per annum. (_c_)
_Sec. 24._ Trustees of Saving Banks to appoint an agent who shall be
authorized to receive money from the Commissioners for repayment to
depositors. The agreement for the appointment of this agent, signed by
two trustees, shall be deposited with the Commissioners; but it may be
revoked and another appointment made.
_Sec. 25._ Trustees may draw for the whole or any part of the sum
placed in the hands of Government by drafts on Commissioners; interest
to be added by the cashiers of the bank. (_a_)
_Sec. 26._ Drafts exceeding 5,000_l._ must be signed by four trustees,
and their signature must be attested by separate witnesses, who may be
managers or other creditable persons. Drafts for 10,000_l._ not to be
paid before fourteen days after the receipt of such drafts. (_a_)
_Sec. 27._ Repayment of more than one draft of 10,000_l._ to any one
bank not to be made in any one day. (_a_)
_Sec. 28._ Trustees may receive in person, instead of through the
usual agent, payment of drafts properly executed. (_a_)
_Sec. 29._ The surplus after paying necessary expenses of banks to be
paid over to the Commissioners for investment in a separate account;
and trustees may draw upon such surplus fund for the purposes of the
Savings Bank by certificate. (_a_)
_Sec. 30._ Deposits of minors may be taken, and repayment may be made
before the person has attained the age of twenty-one. (_a_)
_Sec. 31._ Repayment to be made to a married woman who may have
deposited money, unless the husband of such woman shall give notice in
writing that he requires payment to be made to him. (_c_)
_Sec. 32._ The funds of charitable societies, penny banks, &c., may be
deposited in Savings Banks; if with the approval of the Commissioners,
without any restriction as to the amount; and without that approval,
to the extent of 100_l._ per annum, or 300_l._ in this whole. (_e_)
_Sec. 33._ The funds of any friendly society, legally enrolled and
certified, may be invested without any restriction as to amount,
provided a copy of the rules of such society is deposited with the
Savings Bank. (_d_)
_Sec. 34._ The receipt of the treasurer, trustee, or other officer of
any such charitable institution, penny bank, or friendly society,
shall be deemed a sufficient discharge for any money deposited and
withdrawn from the Saving Bank. (_a_)
_Sec. 35._ Members of friendly societies, penny banks, &c., may also
subscribe to any Savings Bank. (_a_)
_Sec. 36._ No sum to be taken in a Savings Bank without the depositor
discloses his name, profession, business, and residence; these
particulars to be entered in the books of the office. (_a_)
_Sec. 37._ Persons allowed to deposit as trustees on behalf of others;
but repayment can only be made with the receipt of the trustee and
also the person or persons for whom the trust account has been held.
_Sec. 38._ Provides that it shall not be lawful for depositors in any
one Savings Bank to deposit in any other Savings Bank. A declaration
to this effect must be made at the time of the first deposit. The
penalty on a false declaration to be forfeiture to the sinking fund of
all deposits. The declarations to be filed, and a copy with the
penalty attached thereto to be annexed to, or printed in, the deposit
book. (_a_) and (_c_)
_Sec. 39._ Deposits of more than 30_l._ cannot be received in any one
year, nor more than 150_l._ in the whole; and when principal and
interest together amount to 200_l._, interest shall cease till it is
brought below that sum. (_a_) This prohibition not to extend to
accounts opened before July 1828. A depositor may close his account
and make further deposits as a new depositor.
_Sec. 40._ Depositors may transfer their accounts to any other Savings
Bank by means of transfer certificates, the form of which is presented
in _Appendix_ (C).
_Sec. 41._ In the case of a depositor dying and leaving any sum
exceeding 50_l._ the money must not be paid except upon the probate of
the will of the deceased depositor, or letters of administration of
his or her estate and effects. No duty to be paid on probate when the
estate is under 50_l._, provided the person claiming such probate or
letters of administration produce a certificate of the amount of the
depositor's interest in the bank at the time of his death. _(a)_
_Sec. 42._ Administration bonds, &c., for effects not exceeding 50_l._
sterling shall be exempted from stamp duty. _(a)_
_Secs. 43_, _44_, _45_. Make provision for payment when depositors die
without a will, to those who appear to be next of kin, &c. _(a)_
_Sec. 46._ Makes provision for payment on the death of an illegitimate
depositor according to the statute of limitations.
_Sec. 47._ Adapts the provisions of the Act as to intestate depositors
to the law of Scotland. _(b)_
_Sec. 48._ Provides that any dispute arising between the trustees of
Savings Banks and any individual depositor or his representatives, the
matter in question shall be referred to the barrister appointed by the
Act, and "whatever award, order, or determination shall be made by the
barrister shall be binding and conclusive on all parties, and shall be
final to all intents and purposes without any appeal." _(c)_
_Sec. 49._ On being referred to, the barrister may inspect any book or
books belonging to the bank in question, and may administer oaths to
witnesses; false evidence to be perjury, and the offender prosecuted
and punished accordingly. _(c)_
_Sec. 50._ No powers of attorney given by trustees or depositors, no
drafts or orders, no instrument of appointment or instrument for the
revocation of any appointment, no determination or order of the
revising barrister, nor any other instrument whatever required to be
given, issued, signed, made, or produced in pursuance of this Act, to
be subject to or charged with any stamp duty or duties whatsoever.
(_a_)
_Sec. 51._ Provides for the appointment of auditors in Ireland, whose
names shall be sent up to the National Debt Office without delay.
(_d_)
_Sec. 52._ Every depositor in Ireland to be furnished with a
deposit-book which shall contain the rules of the bank printed at
length. A duplicate copy of the rules, and also of every annual
statement, shall also be exhibited from time to time in each Irish
bank, and shall be open to the inspection of every depositor. (_d_)
_Sec. 53._ Provides for the regular inspection of the books of Irish
depositors, not less than twice every year. (_d_)
_Sec. 54._ Commissioners may close accounts with Savings Banks in
Ireland which do not comply with their instructions, and re-open them
if they think fit. (_c_) In each case the Commissioners shall
forthwith publish a notification of the account being closed, or of
the account being re-opened, in the _Dublin Gazette_, and also in some
newspaper published in the county in which the said bank is
established. (_d_)
_Sec. 55._ For the more effectually ascertaining from time to time the
actual and progressive state of all Savings Banks enrolled under this
Act, the trustees of every bank shall annually cause a general
statement of the funds of their bank to be prepared up to the 20th
November in each year, showing the balance or principal sum due to all
the depositors, a statement of the expenses incurred, stating in whose
hands such balance is then remaining. Such annual statement shall be
attested by two managers or trustees, or one manager and one trustee,
and countersigned by the secretary or actuary of such bank, and shall
be transmitted to the National Debt Office in London or Dublin (as the
case may be) _within nine weeks_ from the date above given. If
trustees neglect to transmit this account, or refuse to obey the other
orders or directions of the Commissioners, then it shall be lawful for
the Commissioners to close the accounts of such trustees who thus
transgress, and also lawful to re-open them if they see occasion.
(_a_)
_Sec. 56._ If the accounts are not prepared and transmitted within the
prescribed time, it shall be lawful for the Commissioners to forthwith
publish in the _London Gazette_, and a newspaper published in the
county where the bank is situated, the name of such defaulting bank.
(_b_)
_Sec. 57._ The Commissioners are empowered to call for a detailed
statement of all the expenses incurred in the management of any
Savings Bank. (_b_)
_Sec. 58._ The treasurer of a Savings Bank must sign the annual
statement, where it is shown by that statement that any sum of money
belonging to the bank is in his hands. (_b_)
_Sec. 59._ A duplicate of every such annual statement, accompanied by
a list of the trustees and managers for the time being, shall be
publicly affixed and exhibited in some conspicuous part of each
Savings Bank for the information of all depositing therein; and every
depositor shall be entitled to receive from the Savings Bank a private
copy of the annual statement on payment of one penny. (_a_)
_Sec. 60._ The National Debt Commissioners shall, once in each year,
render the fullest account of all their dealings with Savings Banks to
the Lords of the Treasury, and copies of all such accounts shall be
laid before both Houses of Parliament.
_Sec. 61._ A distinct account to be rendered in the same way, showing
the aggregate amount of the Separate Surplus Fund.
_Sec. 62._ Savings Banks to compute interest on the 20th of May and
the 20th of November in each year. (_a_)
_Sec. 63._ The Commissioners may keep a balance in the Bank of Ireland
under the title of "The Fund for the Banks for Savings," to meet the
drafts which may be drawn on account of Savings Banks in Ireland.
(_a_)
_Sec. 64._ All receipts, orders, certificates, endorsements, accounts,
and returns required for carrying out this Act, shall be made in such
manner as shall be approved by the Commissioners.
_Sec. 65._ This Act shall be a full and sufficient indemnity and
discharge to the Commissioners, and to the Governor of the Bank, &c.
for all things to be done or required to be done in pursuance of this
Act. (_a_)
_Sec. 66._ Commissioners may employ a barrister and such officers as
may be necessary to the carrying out of the provisions of this Act,
and the Treasury shall pay them their remuneration, and meet
incidental expenses. (_a_)
_Sec. 67._ This Act to apply to all Savings Banks (except those
mentioned in the next section) established or hereafter to be
established in England, Scotland, Ireland, or Wales; Berwick-on-Tweed,
the Islands of Guernsey and Jersey, and the Isle of Man.
_Sec. 68._ This Act must not be held to repeal Acts relating to Post
Office Savings Banks, or any of the powers granted to the
Commissioners for the Reduction of the National Debt.[217]
[216] Many of the clauses of the Consolidation Act having been
taken entire from previous Acts, and only part of the provisions
being new, we propose to distinguish those clauses originally
passed in 1828 (9 George IV. c. 92) with the letter (_a_); those
passed 3 William IV. c. 14, by (_b_); in 1844 (7 and 8 Victoria,
c. 82) by (_c_); in 1848 (11 and 12 Victoria, c. 133) by (_d_);
and under 25 and 26 Victoria, c. 75, by (_e_). All the other
sections of this Act not so marked are new provisions introduced
in 1863.
[217] We find from _The Clauses relating to the Establishment of
the proposed Bradford Corporation Savings Bank_, kindly forwarded
to us by Mr. Rayner, with whom the scheme originates, that
sections 3, 4, 6, 8, 9, 11, 14, 30 to 39 inclusive, 41 to 46
inclusive, 48 to 50 inclusive, of the Consolidation Act are
proposed to be incorporated in the new Bill about to be introduced
into the House of Commons. The new clauses provide that the
Corporation may establish a Savings Bank, make regulations for its
conduct, appoint a Committee of the Council to manage the
undertaking, and a treasurer and other officers to work it; that
the aggregate amount of deposits shall not exceed a quarter of a
million sterling; that interest should be given at the rate of
three farthings per pound per month (or three pounds fifteen per
cent. per annum) that debentures shall be issued to depositors for
the amounts invested; and that when a person's deposits amount to
50_l._, he may require a mortgage for that sum to bear interest at
four per cent. Other sections provide that the Corporation may
raise money by annuities, for the transfer of annuities, for the
exemption of deposits and annuities from property and income tax,
and for the remedies for depositors, mortgages, and annuitants, by
applying the Acts of 1855, 1858, and 1862, to them. We regret our
want of space to enter more fully into the details of this
important and promising scheme.
(C.)
_Form of Certificate for Transfer from one Savings Bank to another,
or to any other description of Savings Bank._
Savings Bank at_____________, in the county of__________.
Whereas_____________of______________, a depositor in the above-named
Savings Bank, is desirous of closing his [or her] account with the
said bank for the purpose of transferring his [or her] deposits to the
Savings Bank at___________, in the county of_____________; and to
enable him [or her] so to do, the said depositor has applied for a
certificate of the whole amount due to him [or her], pursuant to the
Act (26 and 27 Vict. c. 87): we hereby certify that the sum due to the
said depositor for money deposited by him [or her] in this Savings
Bank, inclusive of all interest due to him [or her] at this date,
amounts to the sum of [_state the amount in words_], of which the sum
of [_state the amount, if any, in words_] has been deposited since the
twentieth of November last; and we further certify, that his [or her]
account with this Savings Bank has been closed by the issue of this
certificate.
Witness our hands this_________ day of_________, 18____.
_____________ } Two of the Trustees or Managers [appointed
} for this object, by the Trustees] of the
_____________ } above-named Savings Bank.
Examined __________________________________
the Actuary or Secretary of the above-named
Savings Bank.
(D.)
_An Abstract of the Act_ "_To make further provision for
the Establishment of Savings Banks for Seamen_." (19 and
20 Vict. c. 41.--7th July, 1856.)
_Preamble._ Whereas by the Merchant Shipping Act, 1854, certain powers
were given to the Commissioners for the Reduction of the National Debt
for the purpose of establishing Savings Banks for Seamen; and whereas
it has since been found to be expedient that the immediate management
and control of such Savings Banks should be placed in the hands of the
Board of Trade. Be it enacted, &c.
_Sec. 1._ That the Board of Trade may establish in London a central
Savings Bank for seamen, and branch banks at such ports or places as
they may deem expedient; and that they may receive deposits from or on
account of seamen, or their wives and children; and that the total
amount standing in the name of any one depositor shall not exceed
200_l._
_Sec. 2._ The Board of Trade may appoint shipping offices branch
Savings Banks under this Act, and shipping masters agents of the said
board to conduct this business.
_Sec. 3._ The Commissioners of the National Debt shall receive the
moneys deposited in these banks on the request of the Board of Trade;
shall invest these moneys in the same way as they do the moneys of
other banks; and shall pay, together with interest, the sums received
on a request signified in the like manner.
_Sec. 4._ Provides that the Board of Trade may make any alterations
which they think fit with respect to the persons entitled to become
depositors, the making and withdrawal of deposits, the rate and
payment of interest, or any other matter connected with these banks;
such regulations to be binding upon all.
_Sec. 5._ Provides that all sums of money due to any deceased
depositor, shall be paid and applied subject to the conditions of the
provisions of the Merchant Shipping Act.
_Sec. 6._ Provides that any person forging a document, or making false
representations in order to obtain deposits or interest, shall be
punishable with penal servitude or imprisonment.
_Sec. 7._ The Board of Trade to pay all expenses in carrying out this
Act out of the interest received from the National Debt Commissioners.
_Sec. 8._ An annual account of all deposits and repayments shall be
laid before both Houses of Parliament, as also a copy of all
regulations made for carrying out this Act.
_Sec. 9._ All criminal proceedings under this Act to be carried on as
under the Merchant Shipping Act of 1854.[218]
[218] An Act for the establishment of Savings Banks in connexion
with the Admiralty, for the benefit of the seaman and marines of
the Royal Navy, has just been introduced into the House of
Commons, and will, doubtless, be quickly passed into law.
(E.)
_An Abstract of the Act_ "_To Amend and Consolidate the
Laws relating to Military Savings Banks_." (22 and 23
Vict. c. 20.--13th August, 1859.)
_Sec. 1._ Repeals the 5 and 6 Vict. c. 71, and the 8 and 9 Vict. c.
27, amending it, and the 12 and 13 Vict. c. 71, and amends and
consolidates the said Acts. It also provides that deposits made under
these Acts shall not be affected by their repealment.
_Sec. 2._ Makes it lawful for her Majesty to establish or continue
military or regimental Savings Banks, for the purpose of receiving
sums of money from non-commissioned officers and soldiers employed in
her service in the United Kingdom and foreign stations (India alone
excepted), and for the purpose of receiving moneys or funds raised or
paid for objects or purpose connected with these officers and soldiers
which her Majesty may think fit to authorize to be deposited in these
banks.
_Sec. 3._ Provides that the Secretary at War, with the concurrence of
the Commander-in-Chief and the Lords of the Treasury, may make
regulations for the conduct of these banks; and that when these
regulations shall be signed by her Majesty and laid before Parliament
they shall be binding on all concerned.
_Sec. 4._ These regulations shall determine the rate of interest
(which must not exceed three pounds fifteen shillings per cent. per
annum), and all the minor points connected therewith; the
circumstances under which deposits shall be forfeited to the public;
the payment of the money of deceased depositors: may make provision
for the deposit of money created for charitable purposes, and may make
it obligatory on commanding officers to so deposit such funds; shall
make provision for the withdrawal of money; and shall provide for the
keeping of proper accounts, and generally for all such matters as
relate to Savings Banks.
_Sec. 5._ The receipt of infants and married women shall be a sufficient
discharge for what shall be deemed a valid payment made to them.
_Sec. 6._ The moneys received in these banks may be applied by the
persons receiving them to the payment of such ordinary army services
as it may be their duty to pay; and sums payable to depositors shall
be paid out of the grants by Parliament for these services.
_Sec. 7._ Provides that the Secretary at War may direct payment out of
the moneys so granted to be made to the account of the National Debt
Commissioners, and carried to the account of the Fund for the Military
Savings Banks.
_Sec. 8._ The Commissioners of the National Debt to invest the surplus
money in the purchase of bank annuities; the interest arising also to
be so applied; and such interest or dividends shall not be subject to
any taxes, charges, or impositions whatever.
_Sec. 9._ The Secretary at War may direct, at fourteen days' notice,
the moneys invested in annuities to be transferred to the account of
the Paymaster-General at the Bank of England.
_Sec. 10._ Empowers the National Debt Commissioners to sell the
annuities.
_Sec. 11._ The money arising from the dissolution of certain
Regimental Benefit Societies, which was placed in the Savings Banks in
the name of each member to accumulate until his discharge, by the Act
(12 and 13 Vict. c. 71) may be withdrawn under certain conditions.
_Sec. 12._ The officers of Regimental Savings Banks shall not be
personally liable except for their own wilful neglect or default.
_Sec. 13._ Provides that full accounts of all transactions in these
banks shall be laid before both Houses of Parliament before the 1st of
April in each year.
_Sec. 14._ Military Savings Banks not to be within the provisions of
the Acts relating to Savings Banks proper.
_Sec. 15._ Refers to the construction of the word "India."
_Sec. 16._ Provides that the Act shall take effect immediately after
the regulations have been framed.
(F.)
"_An Act[219] to grant Additional Facilities for depositing
Small Savings at Interest, with the Security of the Government
for due repayment thereof._" (24 Vict. c. 14.--17th May, 1861.)
_Postmaster-General may direct Officers in Post Office
to receive Deposits._
1. It shall be lawful for the Postmaster-General, with the consent of
the Commissioners of Her Majesty's Treasury, to authorize and direct
such of his officers as he shall think fit, to receive deposits for
remittance to the principal office, and to repay the same, under such
regulations as he, with the concurrence of the Commissioners of Her
Majesty's Treasury, may prescribe in that respect.
_Legal Title of Depositor to Repayment._
2. Every deposit received by any officer of the Postmaster-General
appointed for that purpose shall be entered by him at the time in the
depositor's book, and the entry shall be attested by him and by the
dated stamp of his office; and the amount of such deposit shall, upon
the day of such receipt, be reported by such officer to the
Postmaster-General, and the acknowledgment of the Postmaster-General,
signified by the officer whom he shall appoint for the purpose, shall
be forthwith transmitted to the depositor; and the said acknowledgment
shall be conclusive evidence of his claim to the repayment thereof,
with the interest thereon, upon demand made by him on the
Postmaster-General; and, in order to allow a reasonable time for the
receipt of the said acknowledgment, the entry by the proper officer in
the depositor's book shall also be conclusive evidence of title for
ten days from the lodgment of the deposit; and if the said
acknowledgment shall not have been received by the depositor through
the post within ten days, and he shall, before or upon the expiry
thereof, demand the said acknowledgment from the Postmaster-General,
then the entry in his book shall be conclusive evidence of title
during another term of ten days, and _toties quoties_; provided always
that such deposits shall not be of less amount than one shilling, nor
of any sum not a multiple thereof.
_Depositors entitled to Repayments not later than Ten Days
after Demand made._
3. On demand of the depositor, or party legally authorized to claim on
account of a depositor, made in such form as shall be prescribed in
that behalf, for repayment of any deposit, or any part thereof, the
authority of the Postmaster-General for such repayment shall be
transmitted to the depositor forthwith; and the depositor shall be
absolutely entitled to repayment of any sum or sums that may be due to
him within ten days at farthest after his demand shall be made at any
Post Office where deposits are received or paid.
_Names of Depositors, &c., not to be disclosed._
4. The officers of the Postmaster-General engaged in the receipt or
payment of deposits shall not disclose the name of any depositor, nor
the amount deposited or withdrawn, except to the Postmaster-General,
or to such of his officers as may be appointed to assist in carrying
this Act into operation.
_Money to be paid to Commissioners for the Reduction of the
National Debt, and repaid to Depositors through Post Office._
5. All moneys so deposited with the Postmaster-General shall forthwith
be paid over to the Commissioners for the Reduction of the National
Debt; and all sums withdrawn by depositors, or by parties legally
authorized to claim on account of depositors, shall be repaid to them
out of the said moneys, through the office of Her Majesty's
Postmaster-General.
_Additional Security to Depositor._
6. If at any time the fund to be created under the authority of this
Act by the investment of the deposits shall be insufficient to meet
the lawful claims of all depositors, it shall be lawful for the
Commissioners of Her Majesty's Treasury, upon being duly informed
thereof by the Commissioners for the Reduction of the National Debt,
to issue the amount of such deficiency out of the Consolidated Fund of
the United Kingdom, or out of the growing produce thereof; and the
said Commissioners of Her Majesty's Treasury shall certify such
deficiency to Parliament.
_Rate of Interest payable to Depositors._
7. The interest payable to the parties making such deposits shall be
at the rate of two pounds ten shillings per centum per annum; but such
interest shall not be calculated on any amount less than one pound, or
some multiple thereof, and not commence until the first day of the
calendar month next following the day of deposit, and shall cease on
the first day of the calendar month in which such deposit is withdrawn.
_Interest, how calculated._
8. Interest on deposits shall be calculated to the thirty-first day of
December in every year, and shall be added to and become part of the
principal money.
_Investment of Funds received under this Act._
9. The moneys remitted to the Commissioners for the Reduction of the
National Debt, under the authority of this Act, shall be invested in
some or in all of the securities in which the funds of Savings Banks
established under the existing laws may be invested; and a separate
and distinct account shall be kept by the said Commissioners of all
receipts, investments, sales, and repayments; and a balance sheet of
such account, from the first of January to the thirty-first of
December in every year, shall be laid before both Houses of Parliament
not later than the thirty-first of March in every year.
_Depositors desiring to Transfer their Deposits._
10. If any depositor making deposit under this Act shall desire to
transfer the amount of such deposit to a Savings Bank established
under the Acts relating to Savings Banks, he shall, upon application
to the chief office of the Postmaster-General, be furnished with a
certificate stating the whole amount which may be due to him, with
interest, and thereupon his account under this Act shall be closed;
and, upon delivery of such certificate to the trustees or managers of
the Savings Bank to which it is proposed by the depositor to transfer
such deposit, they shall, if they think fit, open an account for the
amount stated in such certificate for such depositor, who shall
thereupon be subject to the rules of such Savings Bank; and the amount
so transferred shall, upon such certificate being forwarded to the
Commissioners for the Reduction of the National Debt, be written off
in the books of the said Commissioners from the amount of moneys
received under the authority of this Act, and shall be carried to the
account of the Savings Bank to which such transfer shall have been
made; and, in like manner, if any depositor in a Savings Bank,
established under the Savings Bank Acts, shall desire to transfer the
amount due to him, with interest, from such Savings Bank to the
Postmaster-General, for deposit under the provisions of this Act, the
trustees or managers of such Savings Bank shall, upon his request,
furnish such depositor with a certificate, in a form to be approved by
the Commissioners for the Reduction of the National Debt, signed by
two trustees of such Savings Bank, and thereupon his account with such
Savings Bank shall be closed, which certificate the depositor may
deliver to any officer of the Postmaster-General authorized to receive
deposits under this Act, and such certificate shall for the amount
therein set forth be considered to be a deposit made under the
authority of this Act, and being forwarded to the said Commissioners,
the said amount shall then be transferred in the books of the said
Commissioners from the account of the said Savings Bank to the credit
of the account of moneys deposited under the authority of this Act.
Provided always, that nothing contained in this Act respecting Savings
Banks shall render it necessary to have the rules and regulations of
any Savings Bank again certified if the same have been before
certified according to law.
_Postmaster-General, with consent of Treasury, to make
Regulations, copies of which to be laid before Parliament._
11. The Postmaster-General, with the consent of the Commissioners of
Her Majesty's Treasury, may make, and from time to time, as he shall
see occasion, alter regulations for superintending, inspecting, and
regulating, the mode of keeping and examining the accounts of
depositors, and with respect to the making of deposits and to the
withdrawal of deposits and interest, and all other matters incidental
to the carrying this Act into execution, in his department; and all
regulations so made shall be binding on the parties interested in the
subject-matter thereof, to the same extent as if such regulations
formed part of this Act; and copies of all regulations issued under
the authority of this Act shall be laid before both Houses of
Parliament within fourteen days from the date thereof, if Parliament
shall be then sitting, and, if not, then within fourteen days from the
next re-assembling of Parliament.
_Accounts to be laid before Parliament._
12. An annual account of all deposits received and paid under the
authority of this Act, and of the expenses incurred during the year
ended the thirty-first of December, together with a statement of the
total amount due at the close of the year to all depositors, shall be
laid by the Postmaster-General before both Houses of Parliament not
later than the thirty-first of March in every year.
_Accounts to be examined by Commissioners of Audit._
13. The annual accounts of the Postmaster General, and of the
Commissioners for the Reduction of the National Debt, to the
thirty-first of December in each year, in respect to all moneys
deposited or invested under the authority of this Act, shall annually,
prior to the thirty-first of March, in each year, be submitted for
examination and audit to the Commissioners for auditing public
accounts.
_Provisions of Savings Banks Acts applicable to this Act._
14. All the provisions of the Acts now in force relating to Savings
Banks, as to matters for which no other provision is made by this Act,
shall be deemed applicable to this Act, so far as the same are not
repugnant thereto.
_Expenses of Act._
15. All expenses incurred in the execution of this Act shall be paid
out of the moneys received under the authority of this Act.
[219] This Act is so short in proportion to its importance, that
it is here given entire. Many of the provisions of the
Consolidated Act (1863) apply to the banks established under this
Act.
(G.)
ABSTRACTS OF MINOR ACTS OF PARLIAMENT RELATING TO
SAVINGS BANKS.
26 _Victoria, c. 14, entitled_ "_An Act to Amend the Laws
relating to Post Office Savings Banks_," (4th May, 1863,)
provides:--
_Sec. 1._ For the transfer of the accounts of minors.
_Sec. 2._ For the funds of a Savings Bank closing its business to be
paid over to the National Debt Commissioners, the money arising from
the sale of property to be carried to the separate surplus fund; the
receipt of the trustees on the sale of property to be a sufficient
discharge to the purchaser. The trustees of Savings Banks about to
close to have power to compensate their officers out of the separate
surplus fund.
_Sec. 3._ The information necessary as to the steps to be taken when
the trustees of any bank have determined to close.
_Sec. 4._ For the conversion of perpetual Government annuities at
three per cent. into capital stock at two pounds ten shillings per
cent.
_Sec. 5._ Power to trustees to appoint managers to sign transfer
certificates.
_Sec. 6._ That the warrants for converting annuities into capital
stock shall be laid before Parliament.
26 _Victoria, c. 25, entitled_ "_An Act to make further
Provision for the Investment of the Moneys received by the
Commissioners for the Reduction of the National Debt from
the Trustees of Savings Banks established under the Act 9
Geo. IV. c. 92_," (8th June, 1863,) provides:--
_Sec. 1._ For the cancelling of 24,000,000_l._ of capital stock of
annuities, and the creation of a charge on the Consolidated Fund for
that amount.
_Sec. 2._ That the Treasury may cancel an additional amount of stock
not exceeding 5,000,000_l._ creating equivalent terminable annuities
chargeable upon the Consolidated Fund.
_Sec. 3._ That the Commissioners may invest the interest payable on
the securities created under this Act, and other moneys remitted to
them, in the purchase of parliamentary securities, or in any stock or
debentures or other securities the interest for which is guaranteed by
Parliament.
_Sec. 4._ That issues in money may be made out of the Consolidated
Fund on Savings Bank account on certificate from the National Debt
Commissioners.
_Sec. 5._ That at least one half of the whole amount of securities
held for Savings Banks, exclusive of the amount of the charge on the
Consolidated Fund (Section 1), shall be parliamentary securities.
_Sec. 6._ That every year the National Debt Commissioners shall
prepare a balance sheet giving the assets and liabilities in respect
to Savings Banks, to the credit of which shall be placed the amount of
the charge upon the Consolidated Fund for twenty-four millions and all
other moneys and securities of every kind; and that a copy of this
balance sheet be laid before Parliament each year.
_Sec. 7._ That the deficiency shown shall be a charge upon the
Consolidated Fund.
_Sec. 8._ That the powers of investment granted to the Commissioners
by other Acts, in so far as they are not varied by this Act, shall
continue in force.
* * * * *
"_The Savings Bank Investment Act_," which has just received the Royal
Assent (20th March, 1866), empowers the Treasury to substitute
terminable annuities for capital stock standing to the account of
Savings Banks and Post Office Savings Banks, and empowers the Treasury
to make rules as to payments to the National Debt Commissioners. The
Treasury is likewise empowered to cancel capital stocks of annuities,
and to substitute terminable annuities. The warrants issued by the
Treasury to the Bank of England to be a sufficient authority for the
cancelling of the stock.
(H.)
FINANCIAL RETURNS, _giving the most recent information relating to
Savings Banks, Post Office Savings Banks, and Military Banks,
including the entire Amount of Deposits placed in each
kind of Bank from their commencement_.
SAVINGS BANKS AND FRIENDLY SOCIETIES.
AN ACCOUNT of the Gross Amount of all Sums Received and Paid by the
National Debt Commissioners on account of Savings Banks and Friendly
Societies in Great Britain and Ireland from their commencement
(August, 1817) to the 20th of November, 1865, inclusive.