38
think that the cost ought not to stand in the way of
getting an expert to go out, at least to get the job
started, I hope that you will accept J.L. Fisher's
attached re-draft of paragraphs 2 and 3.
4. You may like to consider amending the
memorandum to be enclosed with your despatch in the
light of the following comments by the Home Finance
Division here on Section 364:-
ía
"As to section 364, clearly the limit on new deposits in each month should apply to gross deposits not net deposits. The object of such a limit is not only to keep a Savings Bank Account from being used for money that ought to be invested, but also to keep it from being used as a current account. I think the draft ought to be altered in this sense.
As to the total limit, I see no objection to interest being not merely left but allowed itself to carry interest. The object of a limit of total deposits is to prevent large sums of short money being placed temporarily in a Savings Bank, but accumulating interest is not of course essentially money of this kind simply looking for the most favourable rate for the moment. Mr. Thompson tells me that the Post Office Savings Bank have no strong feelings about the suggestion that interest should not earn interest in excess of the limit."
Yours sincerely,
Mellomy.
<