THE SAVINGS' BANK.

Wellington Independent, Volume II, Issue 63, 13 May 1846, Page 4

THE SAVINGS' BANK.

{From Chambers's Information for the People.] Previous to the commencement of the present century, such of the humbler classes as were given to saving had no proper place of deposit for their spare funds, which tbey were obliged- therefore, to keep in an unfruotifying hoard in their own possession, exposed to the risk of loss, or had to consign to some neighbour, who, though thought safe, might turn out to be much the reverse. At the same time, in the want of a proper 'place for the deposit of spare money, those who might save, but did not, lacked one important requisite to their doing so. Aboat 1805, it occurred to some benevolent minds that an important benefit would be conferred on these classes, if there were institutions of the character of banks, but on a modest scale, in which the poor could deposit the smallest sums they could, from time to time, spare, certain of being able to draw them forth when they pleased, with accumulated interest. Savings' banks were accordingly established, first in England, and afterwards in Scotland and Ireland, whence the quickly spread to America acd France. They were generally conduc. ted by associations of benevolent persons, who gave

the security of their own credit for the accumulated ? m "nd h«W forth «cry temptation n.he w.yo| Über.l interest, courtly, and pron>ptaade ia m-n----agement, to induce the work.ng-classes to teioit to "Toreome years, this jointstock but still private security was found to be sufficient for the purpose; but, when it was understood that mill.ons had found their way into savings' b.nks, it became apparent that something el>e was necessary in order to maintain.the confidence that had at hr»t been felt. The government was therefore induced to frame a variety of statutes fur the better regulation of savings banks, and one in particular by which its own security was given for the safe keeping of the deposits. This was done und.r the guidance of the best intentions towards the industrious cUesei, who genera y are depositors in savings' banks, and with as little interference as possible with private and local management. A substantial benefit was also conferred, in the fixing the rate of interest rather above the medium of -what could be expected in a country under the particular circumstances of the United Kingdom with regard to capital. By the above-mentioned acts, it is directed that all the funds deposited in National Security Savings' Banks must be paid into the Bank of England on account of government, and that the money so invested shall bear interest at the late of £3 16s. OJ per cent, per annum, whatever may be the fluctuations in the value of the public funds during the term of investment. Depositors are thus afforded the best of all secuiities, namely, that of the whole British nufron ; while the National Savings' Banks are enabled, after paying all charges upon their establishment, to give a considerably higher rate of interest than the ordinary banks, allow on deposits. The highest interest which the law allows the 'National Security Savings' Banks to pay, is 2f d. per cent, per diem, or £3 Bs. s£rl. per cent, per annum ; the difference between this and the rate allowed on the money invested by them in government securities being reserved as a fund for the payment of the officials of the banks and otfcer necessary expenses. The rate of interest whili is generally paid by these banks, is 3J- per cent , , or i 3 6<. Bd. per cent, per annuran ; and whatever is kit, after defraying all charges, is allowed to accumulate as a surplus fund. D- pjsits of from one shilling to thirty pounds may be icceived by these banks, but no individual depositor is allowed to lodge mure than thirty pounds in one year, or than ,£l5O in the whole. Charitable and provident institutions may lodge funds to the amount of £100 in a single year, or <£3(:0 in all; and friendly societies are p.rmitted to deposit the whole of their funds, whatever may be their amount. Compound interest is given on the sums lodged, the interest being added to the principal at the end of each year in some banks, ■and the end of each half.year in oihers, and interest afterwards allowed on the whole. Any deposiotr m>iy receive, on demand, the money lodged by him, if it do not amount to a consider- ble sum:; and even in that case it will be returned on a few days', or at most two or three weeks', notice. Practically, in Edinburgh at least, payment is always made oh dts mand. The wisest and most effectual provisions are madu for ensuring the proper manage me t of the nffairs of these banks. Each must have a cert in number of trustees and managers, whose strvices are performed gratuitously, besides a treasurer, ac:uay, j cashier, clerks, &c.; all of whom must.give security, by bond, to such an amount as the directors ot tlie establishment may judge sufficient. No portion of the funds invested in government secuiity ciyj be withdrawn, except on the authority (f an order signed by several of the trustees and managers. Detailed reports of ihe transitions of each baivk must be peiiodically forwarded tt> theCommissoners Reduction of the National Debt, and also exhibited to the depositors at the bank iffice. It may be of use to a.id, that the money deposited is consigned daily to the safe custody of a bank, such as the Bank of Scotland, and is thence regularly transferred to the Bank of England. Any. duubr, therefore, as to the security which is offer, d, would be quiteabsurd. When the perfect safety of the system is contrasted with the insecu-e practice of placing money at interest in the hands of private persons, as is unhappily too often done, no one in liis senses would for a moment hesitate which mode of disposal he shou'd prefer. Under both the old and new systems, pavings' banks have been highly succes-.ful in their object, and the mony deposited in them reached an'amount which no one who regarded the habits of the working, classes Ihirty.five years ago could have anticipated. In 1840, the total sum was a trifle within twentxj.two millions. In 1837, it was stated that the accumulations in, the bank at Exeter alone reached £8 .'O.COO. At the >ame time Manchester and Liverpool respectively showed £280,000 and £345,000. In November 1841, after existing five and a half yenrs, the Edinburgh bank had accumuIdled £221,816 : at the same period, after a somewhat briefer career, that of Glasgow showed a balance of deposits amounting to £173,204. In 1834 wh ?n-tlie-total accumulations in England (inclusive of Wales) amounted to £13,582,802, the number of depositors was 434,845, a very Sksiderable proportion, it nmst be owned, of the whole population. The average deposit of each person was at the time Adi, 43. In Scotland, the average depouts areless, perhaps in consequence of the comparatively recent introduction, of .the national At Novenbor 1841, the depositors in Edinburgh were .18,961, givmg an average of ten guinea, l<, each; those in Glasgow were at the same time \% 258 |iving; toi each an average deposit of twelve pounds. We find ten guineas the average deposit at the Carluke Savings' Bank, a rural establishment It is of sull greater importance ihit a person who thinks of depositing should have a distinct idea of the benefit he is to derive in the way of interest. 1 he interest usually given in Saving,' Banks ,s at the rate of £3 6s. Bd. per cent • the difference between this and £3 16s. o<l-i H ' a ich the Commissioners of the National Deo allow being, as already mentioned, reserved to pov ex! penses.&c. This being the interest allow d any one may readily reckon bow his money J a fZ tify, by supposing an addition of one-thirtieth bi made to it at the end of every year V ■ I g if he deposits 15. and X then entitled to 15s. 6d. It is ri«ht tv>,n , .

iriven by the banks, but he.bus the advantage o r ,'ompound interest.; that is to say, thi- inteivst ,in ft f to him at the end of v year is silently, and withouj any trouble on his part, ml led to und considered „„ a pirt of the principal, on which interest ii to | 0 given in fu ure. Thus, a common bank necou t' and a savings' bank account, for the ssmejsum, if left unattended to for v few years, would in the eu<| come to a very different nmoiint. A prejudice exists in the minds of mnny woking. people, urn) is perhaps) affected by' Others, agninst savings' banks, on the ground that, when a man i s known to save, lie is the more liab c to have hi s ' wagee reduced by his master, or to want work when there is any thing like a general failure of employ, ment. Surely, there cun be little foundaiion in fact for ihisnotion. It is a general wish amongst masters' that their working people should save, and'many' endeavour to b. ing this about by instituting savings--banks, nud acting as managers. It is felt by every master, that a workman who has saved a little, i 3 likely to be a much more steady and respectable per. son than one who has not. Indeed, as it has been justly observed, a receipt from a savings' bank ig one of the best certificates of character which a woiking man can show. Let it also be considered that, with a little capital in his possession, a workman stands in a mnch more independent position witb regard to iiis master than he otherwise-could do. We cm. not doubt that in these considerations there is much more than a counterpoise tn the visionary fear ef having wages reduced, or employment withheld, j n consequence of a bunk deposit. It would be difficult to over-estimate the impor. tance of a little private hoard to a working man. It not only proves a succour in the evil day, but it tends to improve his whole moral nature. Wealth has been the subject of many bitter remarks to both the poet and the philosopher; but it is after alia greater friend to virtue tliaa to vice. Often a very small amount of it, acquired by honest industry, will supply a modest pride that supports, if it is not in itself, moral efficacy. Doing well in this small way suggests and leads to doing wdl in other ways. The saver may prove the stay of a declining parent or other friend; he can do a better duty to his children; he can contribute to philanthropic objects which interest and bring out his finest feelings. 'It may even happen that, fron less to more, and with no sacrifice of peace of mind, he is en ibled by saving to rise into a higher grade in society. One of the best of the immediate effects of saving is, tl at, once fairly begun, it proves *a preservative from many extravagances and vices. Tempt-ttions m»y presei-.t themselves ; but the mind reverts to Uie fondly regarded little hoard in the savings' dank, and they are c sily resisted. Hence, it is gener<i ly observed that, once a practice of saving lias commenced, a great revolution takes place in the chnrac.er. -Irregularities and eelf-indullg«nces disappear, and steadiness, sobriety, and reflection Uke their place.

TirE Territory of tub Mind—l am not a landlord, but I have a territory one nit entirely in the realms of fancy. I have a terr:tjry vhich I iiave consecrated in my henrt, ami peopled beyond the reach of fortune and fate {there I meet with all that is manly and inrepid; there are the lovers of liberty whose necks never bowed beneath the yoke of oppres ion; the.c I meet sc-r.es, the very conception of which ex;ilts the lowliest to the highest grade ; there I have f )uud somtimes a clum, if not to the a-iplause, at least to the affection and respect of my fellow countrymen.—Wilson. There are thousands of men, for fear of win , , ■want all their lives ; and thousands every day, fjr fear of dying, suffer even worse thun the p a '>S s of death. The demon Fear at all times trembles at impossible events. Why shou dwe p*l-. at hideous fictions of our own ? We shouM at all times endeavour to bj serene and masters of ourselves, prepared for what may come, leaving the rest ta Heaven. An Antjdote to Ridicule.—lt is an immense blessing to be called callous to ridicule ; or, nhirh comes to the same thing, to be conscious thoroughly that wh it we hate in us of noble and delicate ii not ridiculous to any but fools, and \hat, if fools will laugh, wise men will do well to let them.— Dr. Arnold. It has been said that ./Eichylus painted men as they could be, Sophodea as they ought to be, and Euripides as they are. Appreciation of the Press.—A newsman, on his weekly pedestrian tour through the country and villages, a few miles of Bolton thought, a week or two since, that he would parade a pait he had not before travelled and carrying hi* thought into act, was proceeding on his way, when he met a man and woman, who seemed »obe his-wife- a -ta.it!, elderly couple. «Jim." said ,he of the softer sex to her male companion, " what's that chap wp his bags and bundle?' , " He's a newpaper mon, theaw foo," mildly answer, d Jim. » Woi'e that, Jem ?" "Hβ a chap as sells thoose pappurs as ti-Ile what they're doin a Lunnon, an' every part o' th' worldr "Eh, well! aw would loike t'see won- "Weil, he'll let-h'look at wop. iNewas-ohap; oi say, jtui show t -& wr Mai won o'the pappurs!" The request was ol)li«mg!y complied with, and as one of the largest of the broad-sheets, with its multitirlinous contents floated in the breeze, she exclaimed, « Eh, Ji ra \ Wol a raro windoff I'lind it wud make!""

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