Her Majesty's Mails

A reference to the various deficiencies of the old banks for savings, and the steps which led to the formation of those now under consideration, will not be out of place here. We have said that, in the early part of this century, successive governments offered every inducement and facility to the savings' bank scheme. Such encouragement was indispensable to their success. When first started, Government granted interest to the trustees at the rate of 4½l. per cent. This rate, reduced to 4l. as the banks became more established, now stands at 3l. 5s. per cent. Of this sum depositors receive 3l. per cent.; the difference paying the expenses of management. The encouragement which the Legislature has given to the savings' banks of the country since their commencement, has entailed a loss of about four and a half millions sterling on the public exchequer. From 1817 to 1841, a loss of nearly two millions sterling had been incurred by reason of the rate of interest which was allowed by Government, being greater than that yielded by the securities in which the deposits had been invested.