The Sun.
London, England, 1844-05-03 00:00:00

INSPECTORS OF PRISONS.

Sir JAMES GRAHAM hOped his Hon. Friend (Mr.
Mackinnon) would consent to postpone his motion with
respect to the inspectors of prisons, and the state of dis-
cipline in gaols ; otherwise, he should feel bound to
oppose the motion.
Mr. MACKINNON said, after the appeal made to
him by his Right lion. Friend, he had no other course
than to postpone his motion, which he would do until
that day fortnight.
SAVINGS' BANKS.

The CHANCELLOR of the EXCHEQUER rose to
bring in a Bill to amend the laws relating to Savings'
Banks, and to the purchase of Government Annuities
through the medium of Savings' Banks. The Right
Hon. Gentleman said the necessity for amending the
law arose partly -from the circumstance that the
high interest which was paid by these banks, in com-
parison with others, afforded a constant inducement
to persons who were not their specific objects, to invest
money in them. How unwilling the House might be to
deal in any manner which might appear unkind or harsh
to those who -invested money in, savings' banks, they
would see that the public were under no obligation to
pay them a higher rate of interest than-they could obtain
in any other manner. He proposed by the present
Bill, to reduce the rate of interest in • savings
banks from 24d. to 2d. per day. Now various abuses
having been alleged to exist in savings' banks he had felt
it his duty last year to institute inquiry with respect to a
number of those banks, and he was bound to say that
the result was the diticovery that they were used
for the purposes of private gain.—(Hear, hear.)
Latterly there had been an addition to the depo-
sitors of savings, consisting of a class of persons
for whose use those institutions were not intended.
He therefore proposed, in addition to reducing
the rate of interest, to introduce several other
provisions in order to prevent the misapplication of
those institutions. The House was aware that at pre •
sent no person could invest more than 301. in
any one year in a savings' bank. In looking
over the • accounts of savings' banks, he found
that only a • very limited number of persons
availed themselves of that privilege. He therefore pro-
posed to reduce the amount which persons could invest
in any one year in a savings' bank from 301. to 201. By
the law as it now stood no one could have a greater
amount of money in any savings' bank than 1501. ; he
proposed to reduce that to 1201. A person who possessed
1201. was ,in such a situation as to be able
to take advantage of other securities to invest his
capital. The raw enacted at present, that when
2001. sboubT stand -in the name of any one person in a
savings' bank, all interest should cease. He proposed
to enact, that whenever the capital and interest
together should amount to 150/, all interest should
cease. Great abuses had existed in savings'
banks, by persons investing moneys as trus-
tees of others. He. proposed that upon the passing
of the Act no person should invest money as a
trustee for any other person without the signature of
all the parties interested, so that money could only
be invested by parties as trustess with the sig-
nature of all the different persons supposed to be interested.
There was another point to which he wished to call the
attention of the House. Persons ignorant of business
who had sums of money to invest, did not take
it to the proper officer, and the officer to whom
it was brought did not a2count for it at the usual
time. Now lie intended to amend the law in
this particular, and to provide that if any paid officer of
the institution should receive money from a depo-
sitor, and should not bring it to account at the next
meeting of the society, he should ,be considered guilty
of a misdemeanour, and liable to be punishnd for fraud.
There were other minor provisions which he would not
then trouble the House with,. and which would be seen
if the House gave him leave to introduce the Bill.
Mr. GISBORNE wished to know whether there was
any provision with regard to persons having money in
several savings' banks ?
The CHANCELLOR of the EXCHEQUER replied
in the affirmative. _ _ _

Mr. HUME V said he had for three years past
been calling the attention of the House to this
subject, because he knew it was a fallacy to refer to
the money in the savings' banks as a proof of the pros-
prong state of the country. The accumulation
of, the money in those banks arose from the
high interest which was paid. He was of opinion that
all persons should be placed on the same footing, and
that, persons having twenty shillings should be in the
same situation as those who had thousands of pounds.
Leave was then given to the Chancellor of the Ex-
chequer and Sir George Clerk to bring in the Bill.