While these great changes were proceeding in the Convict System, I was endeavouring also by conference with representatives of Discharged Prisoners' Aid Societies of Local Prisons to obtain their agreement to certain changes in the system of aid for Local prisoners, having been led by experience to the opinion that a greater efficiency might perhaps be attained in dealing with prisoners discharged from Local Prisons under a different system. I submitted certain propositions, the object of which was, within the limit of existing financial resources (public and private), by an alteration of the financial arrangements, to increase the powers and duties of Aid Societies, subject to a sufficient control of public funds on the part of the Commissioners.

This could only be made possible by discontinuing the practice of allowing certain prisoners to earn gratuities as a matter of right by good conduct and industry in prison. Long experience had led the Commissioners to the opinion that the Gratuity System in Local Prisons was not a success. It was originally borrowed from the Penal Servitude System at the time when Local Prisons were centralized at Whitehall, and was generally accepted as a sufficient discharge of the power conferred on Justices of the Peace under Section 42 of the Prison Act, 1865, for making provision for the benefit of discharged prisoners, but it was ineffective, as a means of charity, because such a relatively small percentage of prisoners (i.e., only those whose sentences were over one month) would profit by it, and, secondly, as a means of discipline in securing the good conduct of the prisoners by the hope of earning a small sum on discharge, it could now be dispensed with, as the power to earn remission, conferred by the Prison Act, 1898, constituted, in the opinion of the Prison Authorities, a sufficient inducement to abstain from acts by which this highly-prized privilege could be lost. It was therefore desirable that the benefits conferred on prisoners by the Gratuity System should be secured to them in some other way. The State was paying in Gratuities at that time about £8,000 a year, and between £3,000 and £4,000 by way of grants to Aid Societies, under the scheme approved in 1897. To this total of about £11,000 a year the Aid Societies were contributing, roughly, about £10,000 a year. My proposals were (1) to abolish all gratuities: (2) to raise the Government grant from 6d. to 1s. per head: (3) to place this money at the disposition of the Aid Societies, at a rate corresponding to the number of prisoners discharged from each prison, subject to certain conditions, the principal of which were that every Discharged Prisoners' Aid Society should: (a) be duly registered with a certificate of the Commissioners that it is properly and efficiently organized: (b) that the increased Government grant should be met by a local annual subscription equal to one-half of the amount: (c) that the money hitherto spent on Gratuities should be handed over to the Discharged Prisoners' Aid Society, no Society to receive less in grant than the annual average amount of gratuity earned at the prison during the last triennial term.

The effect of these proposals, which were finally approved by the Secretary of State and the Treasury, at the beginning of 1913, was obviously to increase very materially the amount which each Society receives from public funds. The intention is that every case, irrespective of length of sentence, shall receive the personal attention of the Aid Society attached to the Prison, whose resources are considerably increased under the present plan. The Government having great confidence in the earnest purpose of the Discharged Prisoners' Aid Societies throughout the country, felt justified in asking them to undertake this greater responsibility. In giving effect to these proposals it was pointed out to the Aid Societies that it could only be undertaken, with any prospect of success, and even with fairness to the prisoner (especially if under a long sentence, and henceforth to be deprived of his Gratuity), subject to the following conditions—

1. The affairs of the Society shall be managed by a Committee. The Committee shall appoint a Sub-Committee whose duty it shall be to meet weekly at the Prison, and to make provision for assisting prisoners due for discharge in the ensuing month or fortnight. The Sub-Committee shall consist of at least one member of the Discharged Prisoners' Aid Society, to be selected by roster or otherwise, in addition to the official Prison Authorities. The Governor, Chaplain, Priest, and Minister of the Prison shall be ex-officio members of the Committee and of the Sub-Committee. Lady Visitors shall also be members of both.

2. Where the amount of work to be done is sufficient, the Society shall appoint an agent or agents to act under their direction generally, and in particular:—

(a) to find employment for discharged prisoners.

(b) to find respectable lodgings or Homes in which discharged prisoners may be placed and maintained in suitable cases.

(c) to visit, encourage, and report on the progress of all persons under the care of the Society.

(d) to accompany prisoners to the railway station and see them off, if required.

3. The Society shall keep a record of its dealings with all discharged prisoners, and shall publish an Annual Report, with statements of results and of Accounts in an approved form. The accounts shall be audited by a Chartered Accountant. Three copies of such report shall be forwarded to the Commissioners not later than the 14th of April in every year.

4. The payments and grants received from the Commissioners shall be expended for the benefit of prisoners, and shall not be invested.

5. The Society shall render assistance to all deserving cases on discharge, irrespective of length of sentence, all prisoners being deemed to be eligible for assistance provided that they are, in other respects, worthy of the consideration of the Society, special attention being paid to the longer sentenced prisoners who formerly earned gratuity.

6. The Society shall co-operate with the Borstal Committees in giving special attention to the assistance on discharge of persons treated under the "Modified" Borstal System.