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 :—