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War Savings Scheme:
Initial Bill presented to
Parliament, April 11th 1916

MUNICIPAL SAVINGS BANKS (WAR LOAN INVESTMENT) BILL

 

TO

 

Facilitate the Investment of Savings in Securities issued for the purposes of the present War by means of the establishment of Municipal Savings Banks.

 

Be it enacted by the King’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:

 

1 – (1) For the purpose of facilitating the investment of savings in securities issued for the purposes of the present war, it shall be lawful for any council to which this section applies, with the consent of the Treasury after consultation with the Local Government Board, to establish and maintain a savings bank, and to receive at that bank deposits, and to guarantee the payment of interest on and the repayment of such deposits, and for that purpose to charge such rate or fund out of which any of the expenses of the council are payable as may be prescribed by regulations made under this section, subject, however, to the following conditions:

 

(a)  the bank shall not be carried on (otherwise than for the purpose of winding it up) after the last date fixed for the repayment of any securities in which the funds of the bank are authorised to be invested;

 

(b) all sums belonging to the bank, except such as are retained to meet current liabilities, shall be invested securities issued by the Treasury for the purposes of the present war and repayable within five years from the date of issue;

 

(c)  the accounts of the bank shall be kept separate from all other accounts of the council, and shall be audited in such manner as may be prescribed by regulations made under this section, and no money paid into the bank shall be used for any purpose of the council other than the bank;

 

(d) the rate of interest payable on deposit shall be subject to the approval of the Treasury;

 

(e)  the bank shall be carried on in accordance with such regulations as the Treasury, after consultations with the Local Government Board, may prescribe.

 

(2) Regulations made by the Treasury under this section may apply, with or without modification, any of the provisions (including penal provisions) contained in the enactments relating to savings banks, but, save as so applied, these enactments shall not apply to a savings bank established under this section.

 

(3) The councils to which this section applies are the councils of municipal boroughs and urban districts in England, and royal parliamentary and police burghs in Scotland, having a population, according to the census of nineteen hundred and eleven, of not less than fifty thousand, the councils of metropolitan boroughs and the common council of the city of London.

 

2 - This Act may be cited as the Municipal Savings Banks (War Loan Investment) Act, 1916.