The mere fact of any institution having to deal with so enormous a capital, renders it one of great importance commercially. But when it is remembered that the vast aggregate is made up of small savings; and that additions to, or withdrawals from it, furnish a clue to the fluctuations between the prosperity and depression of the largest, most useful, and least wealthy among us—the thews and sinews of the nation—the administration and management of Savings’ Banks cannot be too jealously watched. Unhappily a painful interest has been lately imparted to the system by the abstraction of large sums by certain local managers; and by the discovery that to make these defalcations good, there exists no government liability. Indeed by law (the act of 1844) even the Trustees are not liable; but honour has always, as we shall see, proved with them stronger than the statute. A clear understanding of the actual connection of the State with Savings’ Banks is of vital importance, not only to depositors, but to those who interest themselves in promoting the banking system among the humbler classes; a system, which, it may be safely affirmed, has hitherto proved of the utmost benefit not only to the worldly prosperity, but to the morals of the working bees of our Great Hive. Savings’ Banks were first established from motives of benevolence. They soon, however, came to involve such great responsibility that the managers were anxious that the State should give them the benefit of its support. The State was nothing loth, for it saw the advantage of having such large amounts of money in possession. Accordingly, in 1817, there was opened at the National Debt Office, a “Fund for the Banks for Savings,” and an act was passed compelling the Trustees to pay in their deposits to that Fund, receiving a debenture which bore interest at the rate of 4_l._ 10_s._ per cent.