MR BONAR'S LECTURE ON SAVINGS BANKS.

West Coast Times, Issue 326, 9 October 1866, Page 1 (Supplement)

MR BONAR'S LECTURE ON SAVINGS BANKS.

The following is thc~ substance of the lecture delivered by Mr Archibald Bonar, sen., at the Fire Brigade Hall, on Friday evening last, on the importance of establishing a Savings Bank in Ilokitika':—

The- object of n^ appearing before you this niglrt is to impress on you the importance of forthwith establishing a Sayings Bank in >Hokitika. And first of all' I sh?ll say a few words respecting vhat I may now call a British national institution. The first Savings Bank was stated above fifty years ago. Then, indeed, it was a small seed, but'- since has grown and expanded till it has become what we now behold it— a great tree,' the branches of which shelter.and protect thousand*. The idea of a Savings Bank was originated by the Rev. Mr Gardiner, minister of <V small country parish in. Scotland, called Bothwell, lie observed that much money was squandered and lost, by the

parishioners, the effect of which was that many families were thrown into want and distress. With a view to arrest this unnecessary waste, and encourage habits of economy and greater carefulness, hethought of a plan which would' afford facilities to the well-disposed for safely and profitably depositing any surplus savings, and thus provide for a day of need, when all the funds they could collect might be urgently required. Being a kind-hearted, benevolent, and sensible man, and much respected, he easily embarked the assistance and co-operation of his neighboring proprietors, whose wealth and standing offered undoubted security for whatever was entrusted to them. Thus fortified, he propounded the scheme to his parishioners; strongly recommended its adoption ; invited them at once to commence operations ; and deposit — if only one shilling per week — whatever they could spare, and there to let it accumulate until the end of the year, when interest would he added to the principal. The plan commended itself to tho people generally, and was forthwith acted upon. By thejjnd of the first year all were surprised — the promoters to find the deposits so large, and the depositors to find that they could save s.o much, without apparently restricting and cramping themselves. The results were so gratifying and important, that he resolved to l ay them before the public, and he published a pamphlet, detailing fully the plan. Soon as it was made known, it so commended itself, that similar institutions began to be established in various districts of the country^ and, every year's experience confirming the soundness of the principle and the benefits of its operation, an accelerated speed was given to the movement. It. is needless to trouble you with the particular statistics of the progress, so I shall merely state the results. Indeed, L. can do nd" more, for in removing to this place, my bundle of information on the subject has been so carefully put away, that I cannot find it again. I must, therefore, trust to my memory ; but the facts of the case are pretty correctly engraven on my mind.

I have said that Savings Banks is now a British institution, not merely a Scotch ; for although almost every county in Scotland has its local bank, the system has extended to England, the Channel Islands, and even to, Ireland, so that now I think there are, 600 local Savings Banks with 500,000 depositors, and the amount at credit is forty millions sterling. Long ago this mighty institution attracted the attention of the Government'of Great Britain, and they have since countenanced and supported it Jay a special Act of Parliament pledging the nation as security to the depositors'. The vast and increasing importance, and . the gi'eat benefit of these institutions, did not escape the observation of the far-seeing Mr Gladstone, the Chancellor of her Majesty's Exchequer, and he granted additional facilities to the public, by instituting what is called Post Office Savings Banks, which in many large cities are couducted by the Post Office department. They do not supersede the ordinary Savings Banks, but are auxiliary to them. The progress of this new branch has been remarkable, for in a few years the deposits have swelled out to upwards of ten nvllions, under two millions of which have been drawn from from the old banks, thereby raising the total deposits to fifty millions sterling.

To illustrate this remarkable result, I shall only mention two instances in Scotland, showing the extent of business transacted. First, Edinburgh. The Bank there has long been, I believe, from the commencement, ably managed by my late friend Mr John Maitland. Many of you. know that Edinburgh is rather a literary than a mercantile city, and yet the deposits there amount to above L 600,000. But Glasgow, with, no doubt, three times the population, has deposits in its Savings Bank amounting to upwards wf one million, and still increasing year 'by year. Nothing, to my mind, proves the vitality of the system more than the fact that in the year 1862 — a year of, great depression in the staple business of the latter city — the cotton trade, the deposits, instead of diminishing, as is usually the case during seasons of depression, actually increased L 35,000.

3?ow I come to the colonies. The colonists are too sharp-sighted to allow so great a boon as this to be confined to the mother countiy, and now this grand institution is spreading far and near.

As I had- something to do with getting the Savings Bank Act in Victoria, I think about the year 183.'?, I take a special interest in that establishment.

I received from Mr Flaxman, the comptroller and secretary to the Government Commissioners, the "accounts ending the 30th June, 1863, ten years frpin the date of the Act, by which I see the depositors then numbered 14,920, and the amount deposited was L 701,000, being an increase in one, year of LGG,S4I. I have not received the accounts, but in a letter got about two months ago from one of the Commissioners, he mentions that

the bank liad invested LGOO,OOO in Go : vernment debentures, from which I conconclude that the deposits must now be about one million, and the probable number of depositors 20,000.

When 1 contemplate these wonderful result?, all during my own lifetime, of a new and untried experiment, 1 feel as if I had been up in a baloon, and seen wonders which it is not given to every man to contemplate. I must now, however, open the valve, aud down I come. What place is that where I ani trying to iix my grappling iron — it is Inverc.vrgill. Well w.e must have a Savings Bank there. So thought I, and gave the good people a word on the subject, as I do you this night. Soon thereafter a few friends submitted the matter to the General Government ; it was cordially approved of by. them ; and Sir George Grey is the president of that institution, as he is of all Savings Bunks of this colony established under the Savings Bank Act of 1858. Forthwith the Governor appointed the leading men of that city as trustees for managing its affairs. ; The time of opening this bank was very unpvopitious. From great excitement and 'high expectation the town had sunk down to deep depression. The very province became insolvent, and of course could not pay their just and lawful debts. Every one groaned out " the times are out of joint." « To inaugurate a Savings Bank at such a time was deemed by some to be folly ; one banker 'said that at the end of the first year I would not have L2OO of deposits. 1 thought he underrated it, and the results prove that I was right.

Oh the 10th December*, 1864, the bank was opened. The first day was not very encouraging — only seventeen accounts t were opened, and the amount received was only L 33 1 6s Gd. But by the end of the month this was increased to L 307 19s lid. The balance at the credit of the depositors went on increasing'every month, even in the face of the great West Coast rush, when above L2ooQwas repaid. On the 30th June last, when I resigned the management, the amount of deposits was L 4397 10s. Tho progress is interesting, thus :—: —

Statement of Baxances 'at tho Credit of Depositors, and Progressive Increase : — Monthly Balance Monthly of Deposits. Increase.

£ s. d. £ ;s.; s . d. 31st Dec., 1864 ... 307.19 11 307 19" 11 31st Jan., 1865 ...873 2 ' 0' 565 2 1 28th Feb., -„ ...1,080 i 2 0 207 10 0 31sfc March „ ...1352 18 0 272 G 0 30th April „ ...1614 14 0 261 1G 0/ 31st May „ ...2128 510 513 11 0 30th June „ ...2323 13 4 195 7 6 31sfcJuly „ ...2547 G 6 223 13 '2 31s(, August,, ..,2638 19 0 9112 G 30th Sept., „ ..,.2773 5 11 134 Gil 31st Oct., „ ...3017 19 11 211 13" 2 30th Nov., „ ...3169 2 a 151 21l 31sfc.Dec.; „ ...3675 11 10 506 910 By the above statement it will be seen the monthly increase of the' deposits during the first thirteen months o£ the Bank, and the last two quarters have been still more encouraging :<—

£ s. d. £ b. d. 30th April, 186G... 4019 14 11 344 3 7" 25th June, „ ...43G5 0 0 345 0 0 Thus we have evidence that at no one period, even in the face of the exodus to the West Coast diggings, when above L2OOO was repaid to depositors, did the monthly balances decrease. 370 accounts are now opened in the bank, and the balance at the credit of depositors is nearly L 4400. It is hardly necessary to say the public were 'astonished, and every one asked, where does the money come from ? They did not know the attractive power of a Savings Bank. I shall tell you where some of the money came from, as I was much interested in seeing the private hoards brought out. One day four young children came to the bank and made a deposit in their joint names — two of them had baskets, and the other two handkerchiefs, all of which looked very heavy. It might have been* LIOOO of gold. However, it-was> not ; but amounted in all to Ll 4s lOd. On pouring the joint contents on the table, the whole was pennies and halfpence — none of your tea and sugar tokens, but ,each one stamped with the Queen's head — royal coin of the realm. x But there was a more amusing deposit still. A bubh,er lad kept an account, and one night he handed me half a sovereign. As I was entering this payment, he said, " I don't think you could tell me where I got that." I replied, that at any rate I lipped it was honestly come by. •" Oh, yes,'' he replied, "I'll tell you: my master bought a pig ; I was desired to clean it. In doing so, I noticed something yellow in its nose. I cut it open, and out came the half sovereign." This is the first pig gold digger I have heard of. The beneficial effects were set forth by a young man who handed me L 3 one night, saying, ' You had better keep that for me, as I am sure that if I try to keep it myself, it will be all -gone before next Saturday night." I replied ' Right, my boy ; it is a queer thing money ; for, try to keep it in your pocket as carefully a3 you can, it will get out some way. I don't know whether it jumps out, or bores a hole ; but sure I , am out it gets." I shall give you one more case to exemplify the value of a deposit in times of distress. A strong hard working and respectable man had on account with a good balance. One day lifting a heavy load into his dray, he strained himself, and began to spit blood, from which time he was mostly confined to bed. He had a wife antl two fine children — his income of course ceased, at the time he most required it. But when he wanted money, he had not to go aud borrow it from his neighbors, but had only' to draw on his bank account. What a comfort was this to himself and family ? Ido not know if he is still alive. I fear not, as he was very ill the last time L saw 'him. Sayings Banks .also act as.a'preventa(ivo to squandering, or to give it a milder title, giving away money foolishly — often on the impulse of the moment, without due consideration. An honest man, who used to work for me, when'he heard of the proposed Bank said one clay, " I wish it had been iv existence some time ago. - 1 think it would have saved me a good deal of

money." I asked him how ? He replied " I was employed by a master a good way from this — took unwell — he was very kind to me. As I wa3 not able for his work, I left." Some months atter I met him in the street. lie came up very frank, complimented me on my improved looks, &c, and then added, " Robert, you are surely doing well." Then out it came — "Robert, I have a large bill to pay on Tuesday, and I am rather short of the amount ; could you givo me the loan of L 30?" Robert unfortunately had this money in his pocket ; and on the spur of the moment gave it/and in return got a promise that it would be repaid next week. Next week came — the big bill was not paid, for his old master became bankrupt. The L3O did him n6 good, and was a great loss to Robert out of his hard earned gains. If he had been under the necessity of coming to the bank for the money the next week, he would have got time to reflect and enquire ; and if he had met mes I could, and would, have warned him of his danger. •. I have given these examples of > the working of the proposed institution, and shall only add a word or two to various classes of the community. There is evidently a struggle going on in this world between the rich and the poor. My de&ire is, not that the poor should bo in opposition to the rich — they have justly their respective positions*in society ; but/ what I want is, that the poorer classes should be enabled honorably to'hoFd their own places without th/ assistance of the rich, even when sudden necessity presses. 1 do not like to see any one forced to depend upon another. I want every honest industrious man to stand on his own legs. In tho best ordered communities, times of depression occur — stagnation of tradetemporary Avant of employment, and protracted sickness, may overtake us all. Some say get a poor rate. I hate that ; the very name of a pauper is degrading, and I hope it may long be esteemed so. I like every man to hold up his head, and be independent. I like the statement of the poet —

"Thy spirit, independence, let me share, Lord' of tho lion heart and eagle eye, Thy steps I'll follow with my bosom bare, Regardless of the storm that howls along the air."

To fathers and mothers the argument — oi- Imight yay the constraint — for economy, applies with quadruple force. The father is in good employment, and the family are contented and happy, in the full enjoyment of many comforts, but there is no-

thing, over — every week provides for itself only. But in an hour that may come to an end; sudden calamity may rush in like an armed man — death may extinguish theibrightcst hopes, and cast this, now helpless family, destitute of resources, upon the charity of a cold world. I shall not enlarge on the anxious days and sleepless nights which, are reserved for the widowed mother or tho strange half-reproachful feelings of the children, when the dress and comfort they have been accustomed to. A small sum might tide over the emergency, at least till some of the children got into employment, aud were able to help the others. Could the parent! even spare 3 s a week for each of his children, at tho end of five years this would amount to each to Ll4 6s ; at ten years to L3G 14s ; and in twenty-two years to LIOO. * *

Now, though the sad emergency should not occur, of these deposits being called up on emergency, on the other" side of the picture, what great service would the amount be to young men setting out in the world, or the laughing- girls now grown into womanhood on their marriage to the young man of their whose nice cottage it was now to be their duty and'hap; piness to take 'charge of and make comfortable. I would urge the samething ou all young men and maidens who are in employment. Girls, I suppose, have no idea of remaining servants all their days, ' and it would not be good that they should ; and young men are looking forward to ■ advancing themselves in life. If they wish to start in favorable circumstances, I. would recommend the.m to have three

things — First, a good deal of knowledge in their heads. Secondly, a great deal religion in their hearts. And, thirdly,' a large account in the Savings Bank.