Reservation by Mr. J. Cairns. 
While agreeing with the first and second of the recommendations 
in the Report, I am of opinion that the third recommendation does 
not adequately attain the end sought for in substituting increased 
facilities to Savings Bank depositors for a Postal Cheque System. 
Holding the view that Savings Bank Accounts can be treated so 
as to provide the individual and the State with all the benefits that 
would be derived from a Postal Cheque System in this country, 
I regard the arrangement of confining to tbe use of limited cheques 
the power of a depositor to operate on his account by means of 
cheques, as nullifying the most important of the reasons for which a 
Postal Cheque System was rejected. These were, that by converting 
a definite part of a deposit account in the Savings Bank into a current 
account a depositor would have all the facilities ot a Postal Cheque 
System in enabling payments to be made easily and methodically 
to a third party; and that these facilities would be greatly more 
convenient than the present means of making such payments through 
the Post Office. 
As to the latter point, limited cheques would be of little more use 
to a depositor than the device of buying a bunch of Postal Orders in 
advance. I consider, therefore, that by confining the scheme to an 
issue of limited cheques the considerable demand of Savings Bank 
depositors for cheque facilities, and the undoubted right of the 
public to be provided with a Postal Cheque System or an adequate 
substitute are being imperfectly met in the recommendations. 
Thus I would add to the recommendations that along with limited, 
unlimited cheques be issued. The arrangement for making unlimited 
cheques available might be to earmark a portion of the deposits for 
the purpose of a current account and on this portion no interest would 
be paid. An account holder could state the maximum balance he 
would decide to have on current account, also the Bank could fix 
a minimum balance, if that were found to be required. All deposits 
would be credited to the current account, and, say, once monthly, 
any excess of the balance over the stated maximum balance would 
be transferred to the deposit account on which interest would be 
allowed. Conversely, the depletion of the current account might be 
met by the transfer of a sum from the deposit account. 
JOHN CAIRNS. 
DONALD BANKS, 
Secretary, 
5th March, 1928.