The Universalist. [volume] (Chicago [Ill.]) 1884-1897, 1897-07-31
THE PENNY SAVING SYSTEM OF
CHICAGO.
Committee.
Civic Federation

REV. II. "A. WnlLe, CHAIRMAN.
| Il. q. Keith, Franklin McVeagh,
| VIM. T. Baker, Howard Fl. Gross
Sometime ago, Rev. r. A. White. pas.
tor of Stewart Avenue UniversaIist
| Church, who had been interested in
similar society in the East. explained
the Penny Savings System to the Ex-
ecutive Committee of the Civic Fedora
tion at it's request and the plan met with
unanimous approval. The committee
named above was at once appointed to
take the matter in hand, looking toward
the establishment of similar system
| for Chicago. The Civic Federation had
| just put the Bureau of Charities on its
feet and it seemed proper that it should
inaugurate and foster this system of
small savings which goes to the root OF
the whole matter of much of civic pow
erty and distress. Ali who work among
the poor soon discover that one reason
of their poverty is the lack of habits of
saving when they have an income.
This system aims to reach that class of
people primarily, though it is equally
valuable for children in any circum-
stances in life with whom it is desirable
to foster habits of thrift and economy.
The average person, who has only
small sums to save, can usually find no
bank which takes sums less than one or
two dollars and even these are usually
SO far removed from him that he is never
tempted to use them.
The Committee of the Penny Savings
| System aims to act as an agent between
| the small saver and some reputable saw.
ings bank. The system. in brief, is as
| ollows:
There is a central Office eff 1e4 Dear
born street, Chicago, rooms of Civic
Federation, where are to be obtained
stamps, stamp cards, etc. There are
branch stations established wherever
responsible person thinks he can induce
number of persons to save, as in boys
or girls clubs. large shope, factories,
etc. The local agent, as the promoter of
such a local station is called, obtains
from the central Office as many stamp
cards as he thinks he is likely to have
depositors, and buys there stamps of
different denominations. To each per-
son wishing to become depositor the
local agent gives card. and sells stamps
to the amount of the deposit. These
stamps must be pasted on the card.
When the local agent has sold all his
stamps, he has been reimbursed the
amount he originally paid in at the CEN
trail office, ana with this money may buy
more. A branch station may be run in
definitely on an original advance Of
from S. to S25.
The system recomm ends itself for its
simplicity, the entire book keeping be-
ing done in one Office, while the branches
may sell to thousands of depositors
whom the central Office alone could
never reach. 1t recommeds itself as an
attractive form of saving and as reach
ing large number of persons whose
pennies have gone before they reach the
sum which it seems to them worth
while to deposit in savings bank. 1t
encourages thrift and industry. The
society itself can afford to pay no inter
est since the expense of printing stamps,
cards and circulars. with other inciden-
tai expenses, will exceed the interest &C.
cruing on such deposits as the. society
may be able to make in the bank. But
it is an essential part of the scheme
that depositors should be urged to open
an account with some first class savings
bank as soon as their savings amount
to So or more, where interest will be
paid them. 1t is hoped that those who
are employers of labor, or who meet
those who have not yet formed the habit
of saving, will establish branches and
help an enterprise which is sure to be-
come factor in the encouragement of
thrift and self-respect.
The system is carefully guarded
against any possible fraud, or loss to
depositors. The small depositor at the
local station is insured against loss since
the local agent has already made de-
posit at the central Office to the extent
Of the number of stamps he has for
sale. and. in case of the dissolution OF a
local station, the unredeemed stamps of
that station are redeemable at the cen
trail office. The local agent is assured
against any loss, for his unsold and can
celled stamps, in case he wishes to dis
continue his office. will be redeemed at
the central office. The system is a
modification of the Postal Savings
Banks, Of Europe, and has been in ex-
istence in this country some eleven or
twelve years. 1t has proven a success
in Boston, New York and some sixty
other cities and towns in the United
States and in every case has proven a
potent factor in the solution of the So
cial problems Of poverty and thriftless.
ness.
For further particulars communicate
with Rev. r. A. White. Station o. Chi.
cago, or apply to the cashier, Harriet Nj.
Van DerVeat. at the central office, 164
Dearborn street. Room 2l5.