Virginia citizen. (Irvington, Va.) 1891-1921, 1909-10-29
LySAWNGS BANKS
First Modern One Was Opened
In Scotland In 1910.
STARTED BY HENRY DUNCAN.

He Was Presbyterian Clergyman and
Was n Friend of Thomas Carlyle and
of the Celebrated Or. chalmers--The
Rapid Spread OF ths System.
posits In small amounts and to pay
cumulative interest was opened In Scot
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 insti-
tutions which undertook 10 invest the
savings Of their members
The first modern savings bank. how
ever. was originated by Henry Dun
can. Presbyterian clergyman of
Dumfries. Scotland. friend OF Thorn
as Carlyle and Of the celebrated DIR.
Chalmers, who throughout his active
life was interested In various schemes
OF practical benevolence. In 1910, aft
er he had already set forth his views
on the subject In the Dumfries Courier.
he established the Ruthwell Savings
bank. His purpose, as expressed in Il
memoir published by bis son In 1888.
was to induce the mass OF people OF
his time to realize the value OF the lit
tie savings which by economy could be
put away.
The Dumfries community Of lowland
Scotch was a 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
Ell and f241. respectively. By 1914
the deposits amounted to f922
As the success Of Mr.. Duncan's
scheme became known similar institu-
tons were organized elsewhere in
Scotland and England. One OF the
earliest was the Edinburgh Savings
bank, still thriving institution.
The Ruthwell bank had some Pc
cuiarities which distinguished II 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-
ceived inquiries had to be made as to
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 Ruthwell banks funds were
placed with the 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
f5 or more ; per cent was allowed.
provided the deposition wanted to get
married or that he was fifty-six years
old or that In other respects II would
be especially advantageous for him TO
receive moro interest The first saw.
ings bank was under no obligation to
allow depositors to withdraw funds
when they wanted. There was a pro-
vision that when the depositor shall
have become incapable OF maintaining
himself from sickness or otherwise a
weekly allowance may be made to him
at the option OF the court OF directors
out OF the money he has deposited"
The Edinburgh Savings bank was
much simpler In its organization than
the Ruthwell and more closely resem-
bled the savings banks of the present
day. Each depositor received the same
rate Of interest. There was no pre-
liminary investigation OF his charac-
ter. and he could withdraw his de-
posits at pleasure. The rate OF inter
est was uniformly 4 per cent.
Widespread interest was aroused I'm
the early experiments In Great Britain.
Farseeing people realized that the new
institutions were destined TO add large
ly to general prosperity and happiness.
This opinion was eloQuently voiced by
the great Scotch critic Francis jeffrey,
who. writing in the Edinburgh Review.
said: lit 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
Its arms or the most stupendous In
provement Of Its trade and Its agricul-
ture. And yet we are persuaded that
II IL So" Is
Laws safeguarding savings banks
were passed as these institutions began
to show Vitality and 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 successfully taking up the idea.
Everywhere with notifications proper
to the nationality It has proved. sue
cessful.
The first American savings bank was
opened In Philadelphia In 1915 aud
was called the Philadelphia Saving
Fund society The same year one was
established In Boston. New York fol-
lowing In 1910. and In 1920 there were
ten In the country. having $685. de-
positors and $1,13S,570 In deposits
Boston Globe.