Of the entire number of Post Office Savings Banks, ninety-one out of the 3,369 have failed to obtain depositors. Of this number,

23are in England and Wales,
5are in Scotland, and
63are in Ireland.

It is impossible satisfactorily to account for the failure in so many cases, or, in the absence of information as to the particular localities to which facilities have been offered in vain, to say whether there may not be some special reasons, other than indisposition to save, which may have operated against the transaction of business. Among the great number of banks established in England, there must unquestionably be some poor and sparsely populated districts to which they have penetrated; whilst in Ireland, which contributes nearly three-fourths of the non-effective banks, these districts must be still more numerous, and the population still less able to save. Add to this, the fact that in more than one large district in the sister country the grievous frauds in the old class of banks have left an indelible impression on the minds of the people,—if they have not, as one authority states, destroyed all thoughts of provident habits,—and that this impression is not likely to be effaced in the chronic agitation which has for so long prevailed in Ireland, and the only wonder is, that more of its 525 Post Office Banks are not non-effective.

As to the Results of the New Banks on the Old ones. Before the Post Office Banks were established, 638 ordinary Savings Banks were open in the United Kingdom for the receipt of small savings. Of their distribution throughout the country and the accommodation which they gave, including the number of hours the bulk of them were open, we have already spoken in a previous chapter. The Post Office Banks were no sooner established and business fairly commenced than two very important results followed in banks on the old establishment. The first was, that some of the more important Savings Banks increased their accommodation to the public,—the duration and frequency of the time allowed for doing business being extended: the second was, that the trustees of many of the old banks came to the resolution to close their institutions, on the ground that their time and benevolence were misspent in competing with the new banks, which enormously increased the accommodation they had been powerless to afford.

The best possible test, not only of the influence of the new banks, but of their marked superiority and adaptability to the wants of the country, is found in the fact, that since 1861, no Savings Bank on the old principle has been established. If it be not desirable to establish new banks, it cannot be a matter of much concern to the country how soon the bulk of the existing banks on that principle give up their charitable business. We say bulk advisedly, for many of these banks do not partake, in the ordinary sense of the word, of the character of charitable institutions. From a careful and impartial view of the whole subject, it seems to us, that no measure short of the abolition of the Post Office Banks can keep alive those of the old Savings Banks which cannot compete with the former in the quality and the amount of their accommodation. On the other hand, no one who has at heart the interests of those classes which Savings Banks seek to benefit would wish to see the existence of any institution shortened, which, while profitably ministering to a great public want, is neither subsidized by the State, nor conducted so as to leave an impression on the depositor's mind that it is charitably ministering to his necessities. Those which cannot give the necessary facilities, must succumb sooner or later; those which answer to the latter requirements, may still have a long course of honour and usefulness before them. Before 1861, there might be no option or alternative to the existing order of things; the institution of Post Office Banks has supplied both.

Twelve months after the organization of the Post Office Banks the trustees of thirty-five of the old Savings Banks had closed their banks. Up to the present period (March, 1866), sixty additional banks have followed the example thus set them; this making a total of—exclusive of Penny Banks—ninety-five banks which have transferred their business to the Post Office. The least important of these institutions was that of Dumbarton, established in 1846, and which had but 83l. of capital. The most important bank on the list is Birmingham, originally established in 1827, and which had, on the 20th of November preceding the date of closing, a capital of 583,461l. The fact of the Birmingham Savings Bank coming over, formed the one necessary assurance that the new system had obtained, not only the confidence of the country, but the tacit acquiescence of those who managed large businesses of the same nature. It was very properly argued at the time, that if a majority of such trustees as those of Birmingham could come to the conclusion to hand over their well-managed and flourishing bank to the Government, any bank might do so.[182]

The following Return, which has been carefully compiled, is of sufficient interest and importance to occupy the prominent place we assign it.[183]

Return containing the Names of Savings Banks Closed during the years 1861 to 1865 inclusive, together with the Date of Establishment, the Number of Hours open per Week, and the Capital on the 20th November preceding the date of closing of each Bank.

Name of Bank.Date of
Establishment.		Number of
Hours open
per Week.		Capital on
20th Nov.
preceding the
date of closing.		Remarks.
England.   £
Ambleside185712,503
Andover182724,121
Baldock1816417,573
Bermondsey185613,131
Biggleswade1816710,496
Billericay186012,290
Birmingham182712583,461This Bank ranked
Bishop's Castle186111,988 fifth or sixth
Blackpool185912,197 in the Empire.
Bodmin18392½54,638
Bowdon & Altrincham1823449,183
Braintree185917,510
Brixton18601½2,300
Bromley18162 to 322,496
Buntingford18452 monthly5,127
Burford1826111,100
Canterbury18168149,572Closed on account
Carshalton18171½11,198 of the fraud
Chesham185413,379 previously spoken of.
Cheshunt185021,535
Chipping Norton186055,69420 Nov. 1863.
Chipping Ongar18582 fortnightly3,476
Clapham18161 to 228,411
Clayton West18611494
Cleobury Mortimer185912,580
Coddenham1818415,729
Covent Garden1816218,125
Cuckfield183617,191
Dartford1816226,549
Deptford1816230,712
East Dereham185418,840
Enfield18391132
Epping18173 monthly16,023
Evesham1839224,516
Finchley185931,428
Fleetwood185215,033
Halstead1816120,742
Hartlepool184426,617
Holloway18561½10,632
Holt186111,448
Hornsey18191101
Hoxton18438494This was the first
[184] Bank which
Kirby Stephen184616,957 transferred its
Leatherhead18601592 business to the
Lechlade184414,636 Post Office.
Lutterworth1822636,332
Lymington181821,394
Mansfield1818564,671
Market Harboro'1838124,659
Melbourne185512,552
Old Kent Road185923,538
Over Darwen186021,071
Pimlico186051,900
Poulton-le-Fylde1822130,822
Rawtenstall18362240
Rochford181829,887
Romsey, New Hall18591408
Rugby1818246,839
Saddleworth182446,601
St. Alban's185914,140
Sedbergh18593 monthly856
Sheerness181814,128
Shiffnal181911 monthly15,851
Southwold18582 monthly1,248
Stavely185411,457
Tredegar185521,726
Wallasey184313,229
Walsall1825248,492
Wandsworth181611,269
Watford18174 fortnightly38,968
West Bromwich1846727,491
West Ham1819217,739
Weston-super-Mare18303½3,644
Wales.
Bala1849114,386
Carnarvon18542159
Dolgelley181936 to 4830,291
Llangollen18526 monthly3,841
Machynlleth18343610,166
Merthyr Tydvil185323,745
Narberth185722,242
Newtown185612,960
Portmadoc1846112,732
Scotland.
Dumbarton18461083
Fort William185962,023
Glencoe18592396
Leith195Date and hours not
Oban184012106 given in Return
Stranraer186041,533 for 1861.
Ireland.
Ballymena186021,455
Bray181924,512
Carndonagh18604906
Gorey182212,550
Lisbur183822,674
Strabane1821216,081

It ought to be stated that the Act of 1863, for amending the Post Office Savings Bank bill, offered considerable inducements to the winding up of the then existing banks. Its principal objects were to relieve those trustees who were desirous to close, from liability with regard to the accounts of depositors who had not applied for repayment of their money, or for certificates to enable them to transfer their deposits to Post Office Banks, and also to make the transfer of the accounts of minors compulsory on the authorities of either class of banks on the application of the proper parties concerned. More important than either, however, was an addition made to the bill before it was allowed to pass. This addition consisted of a clause empowering the trustees of any old Savings Bank who should desire to close their bank, to compensate their paid officers out of the Separate Surplus Fund. This was a welcome and very proper addition to the bill, and tended materially to mitigate the inconveniences likely to arise from the officials, perhaps of many years' standing, being thrown out of employment. The Birmingham Bank, when it transferred its business, took advantage of this clause to compensate its officers accordingly; and this course has subsequently been followed by other banks.