The Marion daily mirror. (Marion, Ohio) 1892-1912, 1909-10-04
EARLY SAVINGS BANKS
First Modern One Was Opened
In Scotland In 1910.
STARTED BY HENRY DUNCAN.
He Was Presbyterian Clergyman and
Was a Friend Of Thomas Carlyle and
Of the Celebrated Or. ChaInners--The
Rapid Spread Of the System.

cumulative lUteGcSb was oDthcu III pNot-
land In May. 1910. Several institutions
for savings existed in foreign countries
prior to 1910. but there was nothing in
any respect like the modern savings
bank. England for example, early
witnessed the appearance of numerous
small charitable associations and instl-
tutlons which undertook to invest the
savings of their members.
The first modern savings bank, how
ever, was originated by Henry Dun
can. Presbyterian clergyman of
Dumfrles. Scotland n friend of Thorn
as Carlyle and of the celebrated DR..
Chalmers. who throughout his active
life was interested in various schemes
OF practical benovolcnce. In 1910, aft
or he had already set forth his views
on the subject In the Dumfrles Courier
he established the Ruthwell Savings
bank. His purpose, as expressed in Il
memoir published by his son in 1888.
wasQ Qo induce the mass of people OF
his time to realize the value OF the lit
tic savings which by economy could be
put away.
The Dumfrles community of lowland
Scotch was good one in which to
start such scheme During the first
year savings to the amount of ESQ
were deposited in the Ruthwell Saw
ings bank and in the next two years
fill and f24l, respectively. BY 1914
the deposits amounted to 1922.
AS the success OF Mr.. Duncan's
scheme became known similar institu.
tlons were organized elsewhere In
Scotland and England One Of tue
earliest was the Edinburgh Savings
bank. still thriving institution.
The Ruthwcl bank had some pc
cuiaritics which distinguished 1t from
the institutions that were developed
later There was an annuity fund, for
instance Most remarkable of all, be-
fore anybody's first deposit was re-
ccived inquiries had TO be made as to
his age, family affairs and previous
moral conduct. According to what
was discovered the management decid-
ed, first. whether his deposit should be
accepted and. second. what rate OF
interest should be allowed him.
The Ruthwcll banks funds were
placed with 'he British Linen company,
which allowed per cent interest on
them. Most of the depositors received
per cent but TO those OF three years
standing whose deposits amounted to
CO or more ) per cent was allowed.
provided the dcpositor wanted TO get
married or that he was fifty-slx years
old or that I'm other respects it would
he especially advantageous for him to
receive more interest. The first saw
ings bank was under no obligation to
allow depostors TO withdraw funds
when they wanted. There was pro-
vision that "when the depositor shall
have become incapable of maintaining
himself from sickness or otherwise n
weekly allowance may be made TO him
Mt the option of the court Of directors
out OF the money he has deposited"
Tho Edinburgh Savings bank was
much simpler in its organization than
the Ruthwell and more closely rescm.
hled the savings banks of the present
day Each depositor received the same
rate OF interest. There was no pre-
lmlnary investigation of his charac-
ter. and he could withdraw his de-
poslts Mt pleasure. The rate of inter
est was uniformly per cent.
Widespread interest was aroused In
the early experiments In Great Britain
Farsecing people realized that the new
institutions were destined to add large
ly to general prosperity and happiness
This opinion was cloquently voiced by
the great Scotch critic Francis Jeffrey
who, writing in the Edinburgh Review
said; 1T would be difficult. we fear
TO convince either the people or their
rulers that the spread OF savings
banks Is of far more Importance and
far more likely to increase the happi
ness and even the greatness OF the ma
ton than the most brilliant success OF
provement of its trade and Its agricul'
ture. And yet we are persuaded that
1t is so."
Laws safeguarding savings banks
were passed as these institutions began
to show vitality aud clearly needed
regulation Trustees and managers
were early prohibited from making any
profit in connection with these banks.
The English savings bank movement
rapidly spread throughout the con
tinent, France, Germany. Denmark and
Italy successively taking up the idea
Everywhere with notifications proper
to the nationality 1t has proved sue
cessful.
The first American savings bank was
opened in Philadelphia in 1916 aud
was called the Philadelphia Saving
Fund society, The same year one was
established In Boston, New York fol
lowing in 1919, and in 1920 there were
ten IN the country, having $685. de-
posltors and S1,13s,570 in deposits
Boston Globe.