The establishment of Savings Banks for the whole of the labouring classes being a matter of national importance, they ought to be a national, and not merely a philanthropic institution.
In order that they may confer the greatest amount of benefit on the labouring classes, they ought to be open during the whole of every working day.
The principle of a National Savings Bank as a National institution is already admitted in the Savings Banks for the Army, the Navy, and the Mercantile Marine.
The principle of Government acting as Banker for the Nation is already admitted in the Money Order department of the Post Office.
That department is, in fact, a National Bank. It receives money from all comers; it retains the money for divers periods, from four-and-twenty hours to several weeks; and it pays the money to those who are entitled to demand it.
It would be a mere extension in point of detail if that department received more money from more comers, retained the money for longer periods, and paid it out with the addition of interest upon it.
It is therefore suggested that the Money Order department of the Post Office should be made a National Savings Bank, investing the deposits in Government securities, paying a moderate rate of interest (say two and a half per cent.) and paying interest only on round pounds deposited for not less than a quarter of a year.
The trustees of existing Savings Banks should be authorized (except so far as any depositors might object) to transfer their deposits to the department.
In all probability the deposits with the department would amount to at least thirty millions in the course of a year or so; and at the present price of Consols, this would give to the Post Office about 200,000l. beyond the interest which they would have to pay to the depositors.
If this would not meet the expenses, the rate of interest might be 2l. per cent., giving to the department an additional 150,000l. a year.