The Express.
London, England, 1850-06-06 00:00:00

NEW SAVINGS BANK. BILL.

TO 1111.11ITOR OF Tl■ DAILY NEWS.

SIR, —The bill latelj introduced for 'Ye amendment
of the law for savings banks has led to much discussion,
sad will inevitably encounter mach opposition. The friends
of these valuable national institutions are much gratified
at the real interpositioa of government security for the de-
posits; but on the other hand they are alarmed and indeed
disgusted at use proposed swamis.' interference with the
interim! 'management of the hanks. The costessplated
radical changes would create an entirely new machinery, not
at all required for the objects proposed, and would entail
an unnecessary large annual expense upon the country,
which could be saved without loss of security to the govern-
ment.

A parliamentary return shows that there are 521 beaks
in England, Wales, and Scotland. The late defalcations,
which took place in the bank at Rochdale led the govern-
ment to cause a strict scrutiny to be made into the finan-
cial state of each bank in the kingdom ; and the result
showed that irregularkies esuted in not more than sin cut
of these 621 banks.

woe tug on • wise and prudent principle, the country
has all along afforded facilities to savings banks; and it is
right that government should interfere to prevent for the
future irregularities in any banks. But such interference
ought to be ands in a spirit of strict justice to all parties
interested, whether trustees or officer., and without the
creation of more government officers than security to the
country roguing. In any practical legislation for such na-
tional institutions, it should be forgotten that6ls banks
have in thirty-three years safely accumulated upwards of 2G
minima of deposits.
Tee government are to interpose their security by giving
additional powers to the commissioners for the reduction of
the national debt, aad for the first time proposing to name
officers to act in the internal management of the banks.
The powers of the commissioners are to be very treat.
They may prescribe the form of keeping the bank accounts,
and regulate the times for transacting the business. They
can require whatever return they wish to be certified by the
trustees of the banks and by &octane. The auditors must
also certify their examination of the confarmity of the de- '
positore• pass-boeks with the books of the betik. But the '
moot isspormat and all-sufficient check to be furnished to the
commissioners is • daily return, by one of the officers ap-
pointed by them and the secretary of the bank, of the daily
receipts and payments on account of depositors,—by that
m acs ascertains(' from day to day, without any possibility
of error, the exact liabilities of every bank in the kingdom.
I Let the government select one competent officer to discharge
such a duty, and all additional espensive legislation is •
wanton expenditure of public money. But farther, the so-
vernment are to appoint inspectors, with plenipotentiary
powers, to examine the &Heirs of every beak. With such
powers of regulation and inspection by men practically
acquainted with the management of 841•111$11 banks, no lots
should ever onus to depositors or the country.
But the government is not to be satisfied with these moot
ample guarantees. They are to insist upon usurping the
virtual control and internal management of each bank, by
the appointment of an cfficer, to be styled treasurer. Both
auditor. and treasurers are not required. Buck excessive
caution is quite uncalled for, can only be promoted by per-
sons ignorant of the working of savings banks, and would in
r.aliy take from the depositors • hap annual sum in the
Asps of • reduction of interest. This should act be done
unless imperatively n . With premien bankers the
general argument is =ltle that three new officials (two
of them appointed by government) are altogether super-
tlu .us. From the nature of the duties to be performed by
them, they could be more effectually discharged by assigning
the whole duties to one officer instead of two; and that also
wi- bout interfering la • derogatory and unnecessary manner
with the internal management of the banks by the presort
trustees and managers. These views could be distinctly
proved before a select committee empowered to receive evi-
dence. The advisers of the Chancellor of the Exchequer
must have been theoretical, not practical men—it is believed
',soya', not beakers.
The proposed sew legislation should not alone be examined
on the merits of the scheme, but should be considered with
reference to the general state of the existing instantiome. The
new °teen would In feet entirely control and supersede the
present trustees sae maanagen' which would be an unjust
and unwise policy unwise, because it would narrow
'he scope of these institutions, which, although suvtaiaed at
wee annual expense to the country, yet return it one bun
deed-fold by creating prudent and saving subjects ; unjust,
Nieuwe, without general fault being proved or even alleged,
it would injure the officers of basks whose usefulness has
been promoted by their exertions. The elating injustice of
such a
ioroesedine is palpable, and should not be Stained
unless ts absolute r eeemay las proved in order to obtain se-
curity to government.

Not thi slightest objection ought to be made to every C.
misery guarantee. The trustees of every bank will cheerfully
oo•operat• with the government to provide every security.
But it is winter:Med, by men long aequabeed with the
minagennest of savings bank., that the proposed
multiptisa-
ti of wmeramest damn is as unneces.sry as it will be
costly. Bo thorough a change as the present bill would
eff.et should not be at mos arbitrarily made withoutrielitie-
rate etaminatim before a-eempetent tribunal. It is obvious
that • committee of the whole house is not a d.t place for
/undoing the details involved in each an inquiry. It should
be made by a seism committee. There the general *-
sent of saving. banks amid be shown to have effected the
true object of these institutions, sad that irreguly in this
kingdom is quite ezesptional; while Sil• proposed bill, In
order to correct that, is quite general in its application. The
innocent and guilty are to be treated as equally criminal.
Is it possible test, without good cause being skews, soma
most ma insist upon such an injaaties
If the government were originating • new scheme, and
also interposing their security, ti would be right that {key
should take the real nuinsqesteat; but when, after a lapse
of sore than thirty years, they only sow dies it nearer,
to amuse • partial management, sad really undertake re.
spinsibility, their measures of inteeforease should =l7 b•
such a. are indiepesselsle Sae prowesese the country from
lee. The bill goes much farther than is required Ise such
• purpme • and, it earned entirely into rifest, must Week.
ablyt•
She 2•4 and destroy the isthmus, of the precast
trustee.,

The views now stated are not suggeeted byesprit* et
nay hoetility to change. Souse is in feet manded. id
astserpousee of what h.. tows Ow, But nun) 1;11110tina
seglSSllit•ii with the natter to be legislated 'Wen me ip
mad annoyed at the startling aril ostensive alterations.
Already numerous patitioes Inn been preesaWd against the
measure from all parts et the kingdom, el"ollting troy men
of the hi.hrst 'distorter for humanity, inte;ltik ner, and
habitats habits, and who urge opposition from mouses fir

b•Pad any auspiskin. nig gueoirege lerislstlon, but daisy
lb* 'Sedan or nessmity of the /Lin 6ill, °°"^""at
Wald sot peruses is Amin ',tat min .:0 loapr to interest
themeless in them institutions, wbieh it thould be their
polio, to extend, diminish. Hat if they are JeterlBlB.ed
to tabs the
realmaaageonant into their own hakes, /
stalling themselves of Om present outer', band on Ws
narrow and exceptional rounds, at least let them, in oom-
I mew fairness and Puttee, waft until the iv sant trustees and
smarm have owed to set, and not diagram them by
wresting from their ow what they bare successfully and
honourably watched. I am, de.,
June 2. 1860. A TRUSTEE.