be payable on the maximum amounts represented by the cheques 
issued. In accordance with the views expressed in paragraph 6 
above, we think that an equivalent to Stamp Duty should be charged 
on these cheques, but would suggest as a matter for consideration 
whether a smaller sum than 2d. might be levied on amounts not 
exceeding £1 with a view to the encouragement of the use of such 
cheques in place of currency for small payments. 
13. Additional reasons for association with the Post Office Savings 
Bank System.—While there is no evidence available of any strong 
demand for the separate institution of Postal Cheques, there is a 
growing tendency on the part of Savings Bank depositors to ask for 
cheques and crossed warrants, which are equivalent to cheques, 
in making withdrawals from their accounts. This tendency, taken 
with the fact that it would be unnecessary to set up a fresh staff 
organisation to deal with Savings Bank cheques, makes it desirable 
in our view to experiment within the existing svstem rather than to 
inaugurate a new one. 
14. Financial Results—It is difficult to estimate the probable 
financial effects of these proposals as the extension of cheque 
facilities to depositors in the Post Office Savings Bank would exercise 
both direct and indirect effects upon the finances of that institution. 
So far as the direct effects are concerned there seems a fair presump- 
tion that the system should pay its way. It should be pointed out, 
however, that financial success would to some extent depend upon 
the degree in which the facility was used, and that in the earlv stages 
it would possibly be unprofitable. 
15. Recommendations.—We recommend accordingly :— 
(1) That a Postal Cheque System on the continental model 
should not be embarked on at the present stage. 
(2) That in the hope of encouraging a wider expansion of banking 
habits and economy of currency, a tentative step should 
be made in the direction of offering cheque facilities for 
Post Office Savings Bank depositors. 
(3) That a System of limited cheques available to Post Office 
Savings Bank depositors with adequate balances be 
considered as a means of testing the extent of the demand 
for cheque facilities amongst this section of the community. 
16. We have been greatly helped in our enquiry by our Secretary. 
Lt. Col. T. M. Banks, and would like to take this opportunity of 
expressing our appreciation of his much valued assistance. 
GEO. LAWSON JOHNSTON. 
*JOHN CAIRNS. 
ROBT. HOLLAND-MARTIN 
DONALD BANKS, 
Secretary, 
5th March, 1928. 
* With the following reservation :—