Report of Chairman and General Manager on the proceedings at the
Third
International Thrift Congress held in Paris, May 20th to 25th, 1935.
The Congress was held under the auspices of:
The Conference Generale des Caisses d'Epargne de France;
The Caisse Nationale d'Epargne
de France; and
The International Thrift Institute;
and all meetings took place at the Centre Marcelin Berthelot, No 28 Rue Saint
Dominique, an old mansion of historical interest, and a building which has been acquired by the State for conference purposes.
On
Monday, the 20th May, delegates were required to present their credentials, and obtain Congress badges, between 10:30am and 2 o'clock.
At 2 o'clock the Conference was officially opened in the presence of the President of the Republic (M Lebrun), the chair being occupied
by the Minister of labour and of Social Providence (M Jacquier). On behalf of the delegates M Join-Lambert (Chairman of the Organising
Committee) expressed thanks to the President of the Republic for his attendance and support, and to M Jacquier for his presence and
services in connection with the inaugural proceedings. He mentioned that the French Government had given their unqualified support
to the Congress, and added that the Post Office Minister had not only authorised the Post Office Savings Bank to participate financially
in the organisation of the Congress, but had invited the Bank to become a member of the International Thrift Institute. The next speaker
was Senator Andre Lebert (President of the Committee Superieure of French Savings Banks and Ex-Vice President of the International
Thrift Institute), who extended a cordial welcome to the delegated on behalf of the thrift organisations of France. He was followed
by the Marquis de Capitani d'Arzago (Minister of State, Vice President of the Senate of Italy, and President of the International
Thrift Institute), who gave a resume of the aims, objects and achievements of the Institute. The inaugural proceedings were wound
up by M Jacquier, who expressed the hope that the labours of the Congress would have beneficial results to all concerned in the thrift
movement. At 4 o'clock the Congress commenced the business of the agenda, which was resumed on Tuesday, Thursday and Saturday. Wednesday
and Friday were devoted to social engagements.
28 countries were represented at the Congress by 684 delegates, excluding the
French delegation, which numbered 500, so that the representatives of what was described as a "League of Nations" was nearly 1,200.
In comparison with the two previous Congresses, it may be mentioned that a the first Congress held in Milan in 1924 there were 159
foreign delegates, while the second Congress held in London in 1929 was attended by 286 foreign delegates.
The following 32 British
Savings Banks are members of the Institute, and their representation at the Congress is indicated by the number in brackets:
Post
Office Savings Bank (3)
Aberdeen Savings Bank
Airdrie Savings Bank(2)
Ashton-under-Lyne Savings Bank
Birmingham Municipal Bank (2)
Bolton
Savings Bank
Brighton Savings Bank
Chester Savings Bank (1)
Devonport Savings Bank (2)
Dundee Savings Bank
Edinburgh Savings Bank (2)
Finsbury
Savings Bank (1)
Galashiels Savings Bank
Glasgow Savings Bank (2)
Hull Savings Bank
Jersey Savings Bank
Kirkcaldy Savings Bank
Liverpool
Savings Bank
Leicester Savings Bank
Lincoln Savings Bank
London Savings Bank (1)
Manchester and Salford Savings Bank (2)
Montrose Savings
Bank
Norwich Savings Bank (2)
Newcastle-on-Tyne Savings Bank
Perth County and City Savings Bank
Plymouth Savings Bank (1)
Preston Savings
Bank
Shrewsbury Savings Bank
Taunton Savings Bank
Warrington Savings Bank
Belfast Savings Bank
In addition, 1 representative from
the National Savings Committee, Folkestone Savings Bank, and Stockport Savings Bank, and 2 representatives from the Trustee Savings
Banks Association, were present at the Congress by invitation.
Several representatives from Savings Banks in British Colonies
also attended the Congress, but the larger delegations came from Spain, Italy, Germany and Czecho-Slovakia.
The Conference arrangements
were on the lines of the London Congress, although the procedure in respect of translations was more advanced. The official languages
at the Conference were French and English, and each speaker was required to address the gathering in one or other of those languages.
Immediately after the speaker had concluded, the translation followed from the platform in the other official language. Attached to
the seat of each delegate was an ear-phone, which could be used when a translation into another language was desired, such translation
proceeding very shortly after the speaker had finished. This ear-phone system applied to four languages, viz, Italian, German, Spanish,
and Czecho-Slovakian, and would have been more satisfactory if some of the delegates had been careful in switching off the connection
when the ear-phone had served its purpose. It was apparent, however, that many delegates obtained satisfactory results from the instruments,
and the adoption of the system certainly reduced the tedious procedure so noticeable at the London Congress in the matter of translations.
There
were 57 papers submitted to the Congress, divided into five classes, viz:
1. Savings Banks and Crises (404 printed pages - 13
papers)
2. Mortgage Loan Guarantee (249 printed pages - 9 papers)
3. Rate of Interest Policy (153 printed pages - 10 papers)
4. Savings
and Life Assurance (95 printed pages - 9 papers)
5. School Savings (157 printed pages - 16 papers)
The work of the Congress may
be summed up in the Resolutions and Recommendations passed, which are set out on attached sheets.
A H COOPER Chairman
J P HILTON General Manager
RESOLUTIONS
and RECOMMENDATIONS ADOPTED AT THE THIRD INTERNATIONAL THRIFT CONGRESS HELD IN PARIS 20th-25th MAY 1935.
In
the labours and the results of our Congress the expression "Savings Bank" is used to indicate only those institutions which without
any consideration of gain and as a fundamental function, accept savings deposits, even the smallest, and see to their investment,
chiefly with a view to their safety, and educate people in thrift and economy for the benefit of all classes, especially the less
well-to-do.
It would therefore be a mistake or an abuse for our findings, recommendations or conclusions to be referred to other
institutions, even though they may bear the name of "Savings Banks".
For a correct interpretation of the decisions of the Third
International Thrift Congress, it is advisable to bear in mind that an International Congress, which, like the present one, gathers
together delegates from all parts of the world in order to discuss complex juridical, economic, administrative and educational problems
and methods of procedure, cannot arrive at conclusions drawn up in the precise terminology of those reached by national congresses,
the chief aim of which is to submit draft texts to the legislature and fix rules in harmony with those which have already been enacted
by the legislature.
The primary aim of a Congress like ours is to promote an intense exchange of experiences and ideas between
representatives of the various countries for their own benefit and for the benefit of their institutions.
The choice of subjects
likely to interest all delegates, the preparation and reading of the reports, the discussions in committee and during the sessions
-- all largely answer this purpose. So does the effort to arrive at agreed conclusions, for it stimulates continual and accurate comparisons
between institutions, laws, habits, needs and tendencies of various countries.
Sometimes such an effort is crowned with success.
An experience, a sentiment, an idea thrusts itself forward, by reason of its uniformity, despite the language difficulties. This testifies
to its universal value. It is a source of keen satisfaction to notice the number of points on which complete agreement has been reached.
A
limitation is necessary however. Every deliberation of a technical or legal nature must, in application, undergo appropriate adaption
to the laws, customs and necessities of the milieu in which the application takes place, when it does.
Our affirmations are affirmations of principle. To the legislator, the trustee or the officer they indicate an acknowledged tendency, a principle recognised by competent persons of many countries. An affirmation may be superfluous in one country and unavailing in another. Thus, the one respecting the power on the part of Savings Banks to perform a given act would be superfluous in countries where Savings Banks enjoy complete independence and unavailing where they do not. The affirmation would in no case be useless. In the one country it would, by reason of the general consensus, reinforce this independence; in the other it would lead to a re-examination of the reasons for this dependence.
THE
SAVINGS BANKS AND CRISES.
Resolutions.
1. The Third International Thrift Congress, after having studied the history of crises,
have ascertained that in general the Savings Banks have only been slightly affected by economic crises. The Savings Banks, therefore,
constitute an important element in lessening the disturbances caused by economic crises. Consequently, the governments of the different
countries are invited to support the Savings Banks and to avoid as much as possible all intervention in their activities.
2.
The Savings Banks everywhere enjoy the confidence of Savers. This confidence, which is at the very base of their activity, presupposes
currency stability. For this reason, the Third International Thrift Congress addresses an urgent invitation to all governments to
place their respective currencies on solid bases by means of general agreement, and thus to create the preliminary conditions for
economic collaboration among nations.
3. Confidence in the future, on which the idea of thrift and saving rests and on which
depends all human progress, presupposes friendly relations among nations. The delegates to the Third International Thrift Congress
assembled in Paris, all of them inspired by a great love for their countries and convinced that they are expressing the hopes and
desires of millions of Savers, see in the realisation of this preliminary condition the most important and most urgent duty
of all governments.
Recommendations.
Starting out from the fact duly established by the reports of the delegates of the
different nations that most administrative principles and legislative provisions in force in the different countries have, generally
speaking, been sufficient to ensure the certainty and the capacity of Savings Banks to meet their obligations, even in times of crises,
the Third International Thrift Congress draws particular attention to the following points of view:
1. It is the duty of the
Savings Banks to see to the liquidity, the security and the yield of investments. In addition to immediately available resources,
one must consider as equally "liquid" shares and debentures the sale or the deposit as collateral of which is assured even in times
of crisis. In order to cover possible losses arising out of the sale of securities in times of crisis, it is necessary that the Savings
Banks set up special reserves.
2. It is the duty of government and of banks of issue, in conformity with the care incumbent on
them both in the interest of Savers and with a view to maintaining monetary stability, to hold in readiness, even in periods of crisis,
the means of payment necessary to retain the confidence of their depositors.
3. Where no State guarantee of repayment is available
with a view to assuring continuity of payments, even in time of crisis, the central financial organisations of the Savings Banks and
the central credit institutions of the Savings Banks - as also, in determinate cases, mutual guarantee funds of these Savings Banks
- constitute valuable means capable of warning off suspension of repayment.
4. In order to guard against demands for repayment
which might be made in certain periods of unrest, it is advisable to proceed in normal times to the education of Savers by means of
appropriate propaganda.
THE MORTGAGE LOAN GUARANTEE.
Resolutions.
1. Give greater publicity to the judicial transactions
concerning lands and buildings, by demanding the establishment everywhere of a Land Registry system which will furnish full knowledge
of the judicial status of a property.
2. Revise in all countries the legislation concerning secured claims ranking before mortgage
loans, with a view to diminishing or at least limiting their number, amount and duration, and also to submitting them to appropriate
forms of publicity. Examine also if a right to a partial repayment of the sum loaned might not be given to the mortgagee when some
prior lien emerges.
Recommendations.
1. Rule out in principle and except in special circumstances mortgage loans on industrial
properties, and restrict such loans to lands and buildings bringing a sure and constant income.
2. Ensure as far as possible
the future stability of the value ratio laid down in Savings Banks by-laws between the sum loaned and the appraisal.
3. Concerning
dwelling-houses, give the preference to houses situated in large towns and refrain from taking vacant lots into consideration, unless
building is to be proceeded with immediately. As regards agricultural property, base the appraisal on the minimum market value of
the estate, without taking into account growing crops, unless the crops are protected by a special insurance. In connection with buildings
to be erected, stipulate that the borrower make use of his own funds up to a point where the sum to be loaned will suffice to complete
the building and make it productive of income. Encourage in all cases the building of workmen's dwellings, provided an adequate guarantee
is furnished.
4. The funds must be paid over only when there is absolute certainty that the actual state of the property corresponds
to what has been described and is desired.
5. Take particular care that the borrower pays his insurance premiums promptly and
that the insurance company provides due compensation to the lending Savings Bank for any loss covered by insurance.
6. It should
not be forgotten to include cancellation clauses against the transfer of the property and to entrust experts with the care of making
sure that the property is adequately maintained and that it retains the value it had when the loan was made.
7. In order that
the mortgage loan may fulfil its social and economic purpose, it is advisable that the mortgage be written for a long term.
Mortgages, the principle of which is repayable by yearly instalments, are to be considered preferable.
8. As regards the proportion
of mortgage loans to the total investments of the Savings Banks, it is essential that these institutions should not lose sight of
their liquidity.
9. Grant to the Savings Banks as regards mortgage loans quicker, simpler and less expensive foreclosure proceedings
by limiting as much as possible moratoriums and other legal provisions opposed to the interests of the lending Banks. In case a mortgagor
should go into bankruptcy, the fixing of the date of suspension of payment should have no influence on the validity of the mortgage
held by a Savings Bank. Exempt from taxes as much as possible mortgage loans granted by Savings Banks.