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Tuesday, 19 December 1911

Dr MALONEY (MELBOURNE, VICTORIA) (6:20 AM) . -A curious fact about this clause is that it is operative only in regard to the Savings Bank branch, which is used principally by those who have the least experience of banking. This legislation would, therefore, appear to be against the interests of the most ignorant portion of the community, if I may so describe them. Amongst certain people it is the easiest thing to persuade them to give up their bank books, and many a time I have been made the custodian of such books for safe keeping, although I pointed out that this was against the intention of the Act of Parliament. My own mother, who had not sufficient experience to draw a cheque in the ordinary way, placed her money in the Savings Bank. I received a letter from the late Sir Graham Berry, late Treasurer of Victoria, assuring me that there was no such account, but when I returned to England some years later, I found the book, and then it was possible to pay the deposit. Further, I have known of instances where depositors have suffered loss, simply through their bankbook being stolen, and other instances where wives have drawn husband's deposits and vice versa. As I have said, this provision operates only in the case of the Savings Bank branch.

Mr Fisher - There is no such passbook in connexion with ordinary banking.

Dr MALONEY (MELBOURNE, VICTORIA) - An example is furnished in the case of a deposit receipt, say, for hundreds of pounds, for money lodged in an ordinary bank. That money cannot be withdrawn without the production of the deposit receipt. But even if the deposit receipt should be stolen or destroyed the bank is nevertheless answerable to pay the money. The average person who puts a few pounds in the Savings Bank_ cannot be expected to have as much banking knowledge as big financial magnates possess.

Mr Fisher - It is not needed. The only thing that the depositor need know is that he must hang on to his bank book. Payment is stopped immediately if the bank is notified that the book is lost.

Dr MALONEY (MELBOURNE, VICTORIA) - This is aimed at the most lowly section of our people.

Mr Fisher - No.

Dr MALONEY (MELBOURNE, VICTORIA) - .Can the Prime Minister point to any Banking Act which contains such an infamous section? The only reference that has been furnished is to the Western Australian Act.

Mr Roberts - Such a section would not be contained in an ordinary Banking Act. It is only necessary in a Savings Bank Act. There is such a section in the Savings Banks Acts of several States.

Dr MALONEY (MELBOURNE, VICTORIA) - I am satisfied that if this provision had appeared in a Savings

Bank Bill introduced by our opponents it would have been denounced by the Labour party. As the honorable member who preceded me truly says, this offers a premium to the officers of the Savings Bank to resort to unfair means to rob a person of his money.

Mr PARKER MOLONEY (INDI, VICTORIA) - How?

Dr MALONEY (MELBOURNE, VICTORIA) - A bank book might easily be obtained from a depositor.

Mr West - The working classes thoroughly understand the importance of the bank book. My wife takes care of mine.

Dr MALONEY (MELBOURNE, VICTORIA) - The teller and the ledger-keeper of the bank could enter into collusion.

Mr Fisher - If there is going to be so much fuss about the matter we will let the amendment go, though I am satisfied that it will weaken the operation of the Bill.

Dr MALONEY (MELBOURNE, VICTORIA) - I am glad to hear the Prime Minister's statement. I have seen bank tellers and others in connexion with this subject, and they all say that the amendment will do no harm.

Mr Fisher - It will make the processes of the bank slower in operation.

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