New-York tribune., 1902-07-04
NEW PUBLICATIONS.
LESSONS IN THE ART OF SAVING.

SAYINGS AND SAVINGS INSTITUTIONS. BY
James Henry Hamilton. Octave. pp. 4S6. The
Macmillan Company
Professor Hamilton has made in this book
careful study Of an important economic subject
that has not much occupied the attention Of
students. Savings institutions Of all sorts
enormously multiplied and developed in the last
half OF the nineteenth century and their signif-
canoe in finance and economics is constantly in
creasing. Professor Hamilton begins with the
theory Of saving and its educational aspects, in
which he avowedly follows orthodox opinion
and avoids recent controversies. The savings
bank, when properly organized, notwithstand-
ing its power in increasing the loan fund Of the
community, is educational rather than an
economic institution. Its chief design is to teach
the art of saving; for which reason the factors
determining the success Of a savings system
are security Of deposits. earning capacity OF
deposits and locality of repositories.
The author lets know in the beginning that
he believes in some form of State savings bank,
and thinks that public opinion is tending toward
that end. He is therefore careful to define his
views as to legitimate investment of postal saw
ings deposits, and especially to the rate Of
interest. Dealing exclusively in State or other
public securities would keep the earnings of de-
posits down below per cent; he thinks it i'm
portant that in America it should not be less
-.
be largely on real estate security, with the pos
sibility of averaging 6 per cent; and in large
cities "a pawnshop feature might be added
which should yield about 10 per cent" 1t may
be imagined that Professor Hamilton will ex-
perience difficulty in securing the adoption Of
any such plan for the education of adults In
saving"
He also is an ardent advocate Of a school
savings system which would be the surest way
-.
sense Of order which culture creates" and offer
most attractive facilities for impressing youth
With the value of providence" He gives an in
teresting sketch OF the history Of school savings
banks, which originated in France in 1884; and
that country is still in the lead. There are sys-
TENS Of this sort in most of the other countries
OF Europe. A few such savings banks have been
established in this country but their successful
operation, being dependent on the personal in
terest of individual teachers. is uncertain. Poor
parents should also be indoctrinated with the
idea and indeed require considerable instruc-
tion 70 be induced TO give their cooperation.
There are interesting chapters on insurance
as form of savings and especially Of working
mems and friendly societies and in trades
unions as a strike fund The State accident in
surance in Germany and various old age pen
sion schemes are also described. Building and
loan associations-a form Of investment for saw
ings chiefly in vogue in the United States-are
largely dependent upon a strong social neigh
borhood spirit. They have been chiefly success
full in the Middle and some of the Western
States. In New-England, on the other hand,
the extraordinary development Of the trustee
savings bank has been predominant. This is
the original type of savings bank growing out
of an institution first established in Hamburg
In 171S. Professor Hamilton gives full view
of the development Of the system in the United
States. showing how its growth has been con-
fined to relatively small section of the country.
Municipal savings banks confined to Con-
tinental cities. The chapter on postal savings
banks gives detailed account of the workings
Of such banks and the various arguments that
have been adduced for and against them, which
is supplemented by an admirable account of
postal savings banks in the European countries
that have adopted them