Ittin in ti t Gifu.
REFORM IN SAVINGS BANES.
Weston-super-Mare, 23d May 1859. San—As there are already in existence seventeen acts of Parliament on savings banks, as the Continuation Act for Ireland leaves that country in a different position from England and Scotland and sanctions some internal discrepancies, and as the Derby Government, by introducing a quasi-savings bank franchise, "makes confusion worse confounded," the subject may well be deemed worthy of the future incoming Liberal Administration, which we all anxiously await. Lord John Russell may hope now for better success than he met with in 1850: political importance is given to the sub- ject; and people are informed of the tremendous financial fatalities connected therewith, and will not rest until thorough improvement is made. Strange is it, that England which is justly regarded as the pioneer, in all matters affecting industry and commerce, is behind France and other countries in its safe management of savings banks. If cause for this strong assertion be de- manded let the following facts reply.
From time to time this year there have been glimmerings on this subject, viz., the investment debate, 10th March, the savings bank qualification clause in Lord Derby's Reform Bill, and the Irish Continuation Act' in which act, be it noted, that it puts Ireland in a different position from Eng- land, Wales, and Scotland, and leaves unchecked those discrepancies which in Great Britain are bad enough, but in Ireland are infinitely worse.
Taking the 1666 returns, I remark the banks spent in excess 46,000/., and reduced interest due to depositors 38,0001.; 310 banks spent more than they received, and 40 banks returned themselves bankrupt ; their deficiencies ranging from pence to pounds, tens, hundreds, even thousands of pounds. There are 237 banks without a surplus, that have lost or wasted a (propor- tional) sum of 215,887!.' while the banks with a surplus use it to supply de- ficiencies created by neglect or fraud, or to discharge salaries contray to the law. As to balances in hand, banks are open for four, five, and six days per week, retain uninvested as much as 6/. 108. nd. per account ; while a rate of Id. per account x by number of days open per week would give a far larger sum than is now necessary. The treasurers in seventeen banks receive an illegal benefit ; in nineteen hanks with balances in hand of 10,0001. there is no treaurers ; in thirty banks they do not give any security at all, but have balances of 8279!.; and in 158 banks they give a security krs than their balances by 49,0001. In 178 banks there is no security from one or more paid officers ; in eight banks they give a security equal to one half of their monies regularly in hand ; and, generally, there is such a disproportion in rare of security, that one bank takes thirty times more security than an- other bank of like importance and salary to officer. Moreover, as to the managers and trustees, who are supposed to be aware of and: responsible for everything that goes on—in 162 banks they do not attend at all, or are marked " defective " or " uncertain " ; yet these 162 banks have upwards of fifteen millions of deposits. But defalcations have occurred (since 1844, and particularly of late years, of more than 200,000/. And in Ireland the law was altered because of its enormous defalcations, so that every manager and trustee should become responsible to a fixed amount ; yet one in six, or eight out of fifty-one banks, have not become responsible stall at all. These facts—and they can be illimitably extended—justify the universal cry for reform in Savings banks. Already last year, in four short months, were four bills presented. Then a Select Committee was appointed, and its report is sent in. Let, then, I beg, no more time be lost; but aid Sir, by your powerful pen, the progress of this cry. Help, in fact, those who al- ready help themselves ; the industrious poor who have accumulated thirty- five millions of deposits, and who demand security for, good interest on, and a ready access to, their hard-earned savings everywhere and always.
I am, Sir, your obedient servant,
A MAGISTRATE FOR THE COUNTY OF SOMERSET.
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