Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-05-26
A BIG PENNY BANK
One of The Possibilities of Pittsburg
in the Near Future,
TO CULTIVATE MORE ECONOMY.
A Bill of Incorporation Waiting the Gov.
ernOrs Signature.
JUST HOW THE MOVEMENT STARTED

ernorS signature. a
JUST HOW THE MOVEMENT STARTED
A bill passed by the late Legislature, and
now awaiting Governor Beavers signature,
promises to be of particular interest to this
city as well as Philadelphia, the home of the
bill, and to other cities of the State. The
bill was passed through the efforts Of Post
master. General Waramaker, of Phila-
delphia. 1t authorizes the establishment of
savings institutions and popular banks,
where small amounts, down to penny, may
be received and an additional stimulus thus
be given to popular economy.
The success of the Dollar Savings Bank
in this city, and the impetus thus given to
many to save smaller sums at each deposit
in public institution, has caused various
fnanciers in this city to try and think out
some plan by which it could be accom-
plished; but to Mr.. Wanamaker, of PhiIa-
delphia, was left the honor of first recogniz-
ing this want by practical solving of the
question. The plan of establishing a penny
savings bank was first suggested to Mr..
Wanamaker by studying the condition of
the people who make up the larger part of
the congregation Of Bethany Church, Phila-
delphia, and, in conjunction with Mr.. Rob-
ert G. Hinckley, his counsel, he formulated
a plan which has eliminated in the present
bill.
PITTsBURG'S END OF IT.
1t was known that Mr.. Hinckley had said
he had received inquiries from parties in
Pittsburg who desired to incorporate such
bank as soon as possible; indeed, chats with
some projectors were published here months
ago. When seen by reporter, however,
Mr.. Hinckley did not divulge the names of
the parties now interested, for re asons OF his
own, but, in pleasant. interview, gave a
full history of the movement substantially
as follows:
lMr. Wanamaker conceived the idea of having
q savings fund in connection with Bethany
Church:to encourage the people to save money.
He worked out plan in his mind, and estab-
lished what is called the Penny Savings Bank
of Southwest Philadelphia, which is located in
Tie DeLndnJ l'nuTCn DullQlng, ,aG1WenLv-secOnQ
and cambridge streets. 1t was opened on July
II, 1885, Mr.. Wanamaker is President. 1t was a
complete success, and it became necessary to
have it incorporated. A special feature of the
bank is that it Will receive deposits as small as
one penny.
Upon examination of the corporation laws of
the State it was found that there was no gen.
eral law under which this kind of an institu-
ton could be incorporated, and under the new
Constitution special laws are not allowable
1t therefore became necessary to draft new
law as an amendment to the corporation act of
1874. This was prepared by Mr.. Wanamaker
and myself, introduced into the Legislature by
Senator Delamater, was passed, and now awaits
the Governors signature. AS soon as it shall
become law we shall apply for the incorpora-
tion of the Penny Savings Bank.
PURELY AN INSTITUTION OF CHARITY.
The institution is purely charitable, no
salaries being paid, and 1t is purely for the ben
eft of people in moderate circumstances. There |
is only one other institution in Philadelphia
that receives as low as penny, and that is a
small bank at Eleventh and Lombard streets. |
This will incorporate as soon as the law shall |
have been made valid.
BThe Penny savings Bank pays ~ per cent in |
terest, whereas the large Savings funds pay but |
3per cent. No interest, however, is allowed on |
any sum less than ST. There is no limit fixed |
to the deposits at the Bethany Bank, but in the |
bill just passed 1t is provided that no individu-
than $1,000, exclusive of accrued interest.
The regulations governing the Penny Savings |
Bank are substantially like those of other saw |
ings banks. A book is furnished each deposit |
or, and ten days notice must be given to the |
bank when it is desired to withdraw more than |
So The money can only be invested in mort |
CAGES or well-secured loans with collateral.
sd Inc e. o, Just passed provides for the 1s forma
sons. two-thirds of whom must live In the coun-
ty. The bank is to be managed bynot less than
l3 trustees, who shall select from their num-
Der President and Vice President In other |
ways the procedure of incorporation is like |
that of the present savings bank.
Mr.. j. B. d. Meade, of the Dollar Saw
ings Bank, when seen by reporter in re:
gard to the feasibility of the scheme, said
II do not know of any present movement
for such bank in Pittsburg. suppose it
would be an excellent thing, as matter of
charity, and I don't doubt it would be
good thing in connection with Sunday
school mission or newsboys' school, but as
a matter of business, do not think it would
amount to much in Pittsburg.
MANY DoLLAR-A-TIME DEPOSITS,
"From what gather of its proposed
status, it is apparent the bill proposes that
the banks be founded on about the same
principles as the Dollar Savings Bank.
They are to have no stockholders or divi-
or emolument."
When asked ifImany deposited Just a
dollar in the Dollar Bank, he said: Yes, sir;
when pay day comes there are scores that
march up to the window and deposit their
dollar, and do this every week, right along"
In direct connection with the statement
of how the Dollar Savings Bank is oficered,
and the plan for the proposed penny banks,
it is interesting to note that trustee or
officer is not allowed to borrow from the
bank, or have any use of the bank at all.
In fact, he is barred from deriving benefits
from an institution which he must never
theless use his utmost endeavors to advance
whether it is responsible.
Mr.. William Roseburg, Cashier of the
Bank of Pittsburg, confirmed Mr.. Meade's
statement, but went further, by saying that,
if such an institution once got started, it
might be factor in business as we'll as
charitable circles. He referred TO the Dollar
Savings Bank, now among the leading in
stitutions of the city, and said that when it
first started it was very small. and people
were not sure whether it would. be success
or not. For this reason he considered it
'.unwise to smile at ventures of this sort"
ALL RIGHT FOR SUNDAY SCHOOL.
Mr.. P. D. Nichols, prominent broker in
the Penn building, though he refused to
talk for publication, said that while the
Wanamaker scheme might work we'll
enough as a Sunday school affair or char
organization, it was not what he (Mr.
Nichols) and his associates were after. He
stated that the ordinary savings bank had
heen largely superseded by the building