5.-Public Auditors.

There were 1,099 Public Auditors appointed for the year 1924, or 65 more than for the preceding year and 175 more than for the year

1922.

The tables below are compiled from the Returns made by the Public Auditor of audits undertaken.

In explanation of the tables, Section 1 relates to Societies registered under the Industrial and Provident Societies Acts; Section 2 to Ordinary Friendly Societies, Orders and Branches and other Societies providing Friendly Society benefits; and Section 3 to Societies registered under the Friendly Societies Act, which do not provide Friendly Society Benefits (e.g., Working Men's Clubs, Specially Authorised Loan Societies, etc.). TABLE I.-Comparison between Audit Work performed on 1922 and 1923 Accounts.

* Nearly the whole of this increase was occasioned by the appointment as public auditors of the auditors of a large collecting society.

8

LOAN SOCIETIES UNDER THE ACT OF 1840.

A considerable number of Auditors failed to furnish their Returns of Audit work by the prescribed date (1st May). It was found necessary, in consequence, to send out 126 letters calling attention to defaults in this respect, and, in August and September, further reminders were despatched to 33 Auditors whose Returns were still outstanding. the date of closing the Abstract, the position was as follows:

Notification was received during the year of the death of 13 Public Auditors, 7 others resigned. Of the 13 Auditors from whom no Returns were received, the names of 3 were recommended for exclusion from subsequent lists, as no satisfactory explanations were forthcoming.

6.-Loan Societies under the Act of 1840.

The object of a Certified Loan Society is the establishment of a fund for making loans, repay able by instalments, " to the industrious classes," and such a Society is exempt from the provisions of the Money Lenders Act and from Stamp Duty. Interest is limited to 12 per cent. deduction at the time of making a loan "for the full term of one year." Loans may not exceed 151.

(a) CERTIFICATION.

There were no additions during 1924 to the list of Societies certified under the Loan Societies Act, 1840; but 7 Societies were removed from the Register as having ceased to exist.

(c) EXAMINATION OF ANNUAL RETURNS FOR 1923.

There is nothing of outstanding importance to record in connection with the examination of the 1923 Annual Returns of societies certified under the Loan Societies Act of 1840.

LOAN SOCIETIES UNDER THE ACT OF 1840.

9

A somewhat unusual practice was observed in connection with a loss incurred by the realization of investments. The Society in question, instead of writing off the loss (841. 19s. 4d.) against profits, has carried it to a suspense account and apparently is liquidating it over a period of about five years by means of levies upon the existing members.

(d) STATISTICS.

The number of Returns received for the year ended 31st December, 1923 was 134, the number for the preceding year being 136. The following tables show aggregate figures taken from the Returns for the two years referred to :

Twenty-four Societies (20 of which were in or around London) showed 300 members or more, the largest Society both in point of members (1,668) and capital (13,9591.) being the Surprise Friends of Labour Loan Society, Warwick Street, S.W.

Twelve Societies had share capital belonging to the members amounting to 3,000l. or over. In 31 cases the average capital per member exceeded 107. Of these, one had 100l. per member.

The loans advanced averaged 81. 2s. per borrower, a decrease of 3s. on the figure for the preceding year. This item steadily increased from 1912, when it stood at 5l. 14s. to 1920, when it stood at 8l. 9s. Since then the average has steadily decreased and now stands at 78. less than the 1920 figure.

O 24210

C 3

7.-Railway Savings Banks.

These Banks are constituted under Acts of Parliament promoted by Railway Companies, and have as their general aim the encouragement of thrift among the employees of the respective Companies.

(a) REGISTRATION.

Two new Banks were registered during the year 1924, and one Bank ceased to exist by amalgamation.

(b) STATISTICS.

The following particulars relate to the 19 Railway Savings Banks which were on the Register during 1923 :-

Position of Railway Savings Banks at the end of the Financial Year.

1922
1921

1920

1919

1918

1917

1916

1915

1914

2,235,629 3,374,851

1.5 504,966 205,325 2,676,981 13.0

1,923,146 2,764,445 1.4 442,890 179,618 2,474,550 13.8 1,895,938 2,801,895 1.5 418,657 152,935 2,474,075 16.2 1,632,343 2,802,375 1.7 386,628 119,292 2,463,180 20-6 1,353,122 2,235,336 1.7 354,346 89,145 1,678,472 18.8 1,112,669 1,602,435 1.4 323,459 71,602 1,244,587 17.4 963,999 1,258,888 1-3 311,432 81,344 2,000,605 24.6 878,999 1,282,337 1.5 319,689 70,928 1,301,662 18.4 800,487 1,347,632 1.7 293,953 69,913 1,257,659 18.0 727,645 1,031,975 1.4 274,094 73,149 954,013 13:0

The number of depositors in these institutions has increased by 33,000 since the end of the war, 11,000 being added during the year under review. The large addition in 1923 was accompanied by an increase of 11. 8s. in the average deposit balance. The interest added to the accounts averages 4 per cent. on the mean sum deposited, and this comparatively high rate of interest earned on small savings no doubt accounts to a large extent for the popularity of these institutions. There was a further large increase in the number of deposits and withdrawals during the year, but the average amount of withdrawals showed a small decrease as compared with 1922. The average amount of deposits showed a small increase; the amount deposited during 1923 exceeded the withdrawals by 700,000l., which, together with the interest added, brought the total amount due to depositors to nearly 13,000,000l.

(c) DISPUTES.

The Acts of Parliament by which Railway Savings Banks are constituted usually contain a provision for reference of disputes to the Registrar (see Section IX).