Front Page Titles (by Subject) The Cheque Bank as a Savings Bank. - Money and the Mechanism of Exchange
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The Cheque Bank as a Savings Bank. - William Stanley Jevons, Money and the Mechanism of Exchange 
Money and the Mechanism of Exchange (New York: D. Appleton and Co. 1876).
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The Cheque Bank as a Savings Bank.
Already the Cheque Bank serves as a savings bank into which persons may put surplus money for security, receiving as an acknowledgment the cheque forms by which it can be drawn out or paid away with ease. No interest, however, is paid on such deposits. It seems to me, however, that the bank, if successful in its present aims, might readily become the most admirable of savings banks. Instead of issuing cheques payable at any moment, it might issue through its agent-banks, deposit receipts, bills, or, what comes to much the same thing, post-dated cheques, the interest to be paid at the time of deposit as a discount at the rate of 2 or 2½ cent. This receipt could be retained, transferred by endorsement, or again discounted by the Cheque Bank. If retained until maturity it would become payable like a cheque at any bank in relation with the Cheque Bank. The money deposited in this way might be invested in consols at 3¼ per cent., and the cost of the documents and accountants' work, being slight, might leave a fair margin of profit.
The Post-Office Savings Bank system as established by Mr. Gladstone is an admirable institution; it has been very successful, and has done great service in increasing providence. But it is troublesome and costly in working, and leaves no profit to the state. Already the Scotch banks serve almost in the capacity of savings banks by receiving small fixed deposits; and it is well worthy of consideration whether, by the assistance of the Cheque Bank, almost all the English banks might not be converted savings banks, to the advantage of every one.