New-York tribune., 1909-07-18

mental securities Friendly societies and pro.faens
associations as we'll individuals were per'it Gu
to make depossxs Tho new system went into
actual operation 4sptenber 1s 1851 whens LEI e
hundred money Offices for receipt OF oeposits "o - :
opened. On that day <sS deposits aiaos , 49,
feI1. were taken in From the very peg iNe
success of the scheme IN Great Britain was
.ured Within six weeks q largo ADDITION mao 10
be made 70 the number of postof1ce banks oy 'ne
end of 1862 5,e2S depositors had. hIai teo :
the total amounting TO moro than slo"n"o
re-nnorariIy the old savings banks fouho tneii'
business at a stan6stilI q result OF tne
u.broe,t of governmental facilities Every emo %
thrift however helps every other KIM ot 80 tE
and within a short time each instituton Aei' Oe
ec,el e1ects from the other-a conoluon WHICH 1
lasted down TO this time 49, so,.n,ry
80 +ba earliest general savings bank IN the Woliu'
so thrifty Massachusetts has the honor 'i "...T
the first American state TO ADOPT tne no" -s.
zion. The plan OF a savings bank vas p1oP
IN December. 1915 in THE Chrlsuan DA.~r rv,e
.noau religious monthly published in Boston the
,ollovving year an act Incorporating the FFoViue
institution for Savings in the Town VI D
assed the Legislature, The bank was oi6"
and began business IN the following SPRING pm
tsInr 10 divide with depostors per cent QuAFteiiS
80 mora ~ practicable. Bishop Cheverus one OF
the earliest and best beloved OF Rom1n Catnoi1c
prelates In New England. was corolal suPPoitS.
OF the new scheme. for he had seen tho Aou -
among his flock OF some institution whlch "ouio
encourage thrift In spite OF popular favor' now
ever the new bank increased its deposits Slowly
at first since took people long time 10 se'
used to the idea- In 1872 the deposits ainouneo "
about $500 oo0; in 1897 1898 600; IN 1882 to *s4o
After the panic OF 1881 the savings BANKS "heio'
established began to enjoy prosperity
Ont of that beginning in Boston has grown
system which embraces total deposits OF ABOUT
e 600 OOeo0O. A financial authority m the carry
DAYS declared that when any one OF these oaIiAs
had deposits Of 100000 II would be time to close
tbe doors Not long ago the Bowery Savings BANK
of New Yek. known as the largest institution OIL
its kind in the world, passed the 500 oQooo marx
SAVINGS banks in this country have long been
noted for their extreme conservatism and for the
care with which the deposits OF their patrons are
g,,arded In Massachusetts, for example. the losses
in sixty years amounted to less than s5oO not one
tenth part Of mill each dollar deposited ihe
cost OF administration is also extremely low
The functions OF the savings banks In TINS coun-
try have never until recently been enlarged In 'ne
direction of the original intention. One OF the hI-
tations upon their usefulness has awayE been Ger
tain aloofness. They have not, as a rule oeeh O"S
ness getters. People can go 20 banks 10 oepoSit
money, accommodating themselves to bank hours
and often standing in line. The institutions nave hot
usually made any attempt 10 get the public steh-
ton although OF late years some of them nave De-
gun to advertise for deposits
DEVELOPMENTS IN BAY STATE
Massachusetts, the state which first in start
ing the savings bank has lately taken the lead In
two important directions. One OF these Is an act
permitting the establishment Of branches OF saw
ngs bank factories. and elsewhere so tnat
when the wage Garner receives his pay envelope an
officer Of the bank may present 10 receive por-
ton before 1t has all been expended
largely, perhaps. needless objects This plan Is
now being worked out in a number OF savings
banks. which send officers into neishboring shops
TaaH m get
instead Of waiting for II to to them.
The other Massachusetts innovation lie the law
permitting the creation of departments OF indus
trial life insurance and old age pensions. A meas
ure to this effect passed IN 1901 It's provisions
were drawn up Louis D. Brandeis. a Boston attor-
ney who had played important part in the life
insurance investigation OF 1Soe-06. and who was
convinced that American working people ought TO
have the advantage OF life insurance and Old age
annuities at actual cost with the expense OF so
ucitation and collection Of premiums removed
Substantial progress is being made in developing
this scheme. The Arst bank TO start such an IN
surance department was one at the shoe rnanufact-
ing town of whitman. opened June 2, 1905 This
was followed little later by the Peoples Savings
Bank OF Brockton Of which Ex-Governor William
L. Douglas is president. These two banks are now
represented by about hundred agencies in dir-
erent parts of the state, More than two thousand
policyho.ders enrolled themselves in the first year,
and the number is rapidly increasing. Many en-
lghtened manufacturers and other industrial lead
counteractiHg the growth OF socialisc IDEAS IN the
community. Everything indicates that the scherne
is destined to be remarkably, successful and to be
generally adopted throughout the United states.
Postal savings banks. in spite OF the fact that
most OF the savings banks in the country are
situated In half a dozen states and that large
sections have few facilities for encoura gins
thrift, have never been authorized by Congress.
There is however, energetic postal savings
bank league, with headquarters in Chicago, which
IS conducting a campaign IN support of the plan
with the idea that # will bring into productive
industry s5OOGD.OoO at present boarded. Although
the postal savings plan has encountered opposi-
ton from the American Bankers Association. pub
lie support of tho measure is being enlisted.
The immense and worldwide propaganda OF
thrift which began with Henry Duncans little
bank at Ruthwell Manss will be properly COM
memorated at the celebration in Scotland Savings
banks everywhere have been started by leading
men OF their communities, who were generally
actuated by desire TO help their less fortunate
neighbors and the greatest security which they
have offered has always lain IN the integrity, pub
lic spirit and business ecumen of unpaid boards
Of trustees.