Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1909-11-09
EARLY SAVINGS BANKS
First Modern One Was Opened
In Scotland In 1910.
STARTED BY HENRY DUNCAN.

he Was a Presbyterian Clergyman and
Was a Friend Of Thomas Carlyle and
of tho Celebrated Dr.. Chalmers-The
Rapid Spread of the System.
The first savings bank to accept de-
posits In small amounts and to pay
cumulative interest was opened In Scot
land in May. 1870 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 associa tons and insti-
tutions which undertook to invest the
savings Of their members.
The first modern savings bank. how
ever. was originated by Henry Dun
can. a Presbyterian clergyman of
Dumfries, Scotland, friend of Thom-
as Carlyle and of the celebrated Dr
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
memoir published by his son in 1883.
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 Rurhwell Saw
ings bank and in the next two years
Fiji aud f241, respectively. By 1914
the deposits amounted to 1922.
As the success Of MI. Duncan's
scheme became known similar institu-
tons were organized elsewhere IN
Scotland and England. One Of tue
earliest was the Edinburgh Savings
bank, still thriving institution.
The Ruthwell bank had some Pc
cuiarites which distinguished it 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
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 Ruthwell banks funds were
placed with the British Linen company.
which allowed per cent interest Oh
them. Most of the depositors received
4 per cent: but to those Of three years
standing whose deposits amounted to
rs or more 5 per cent was allowed.
provided the depositor wanted to get
married or that he was ifty-six years
old or that in other respects it would
be especially advantageous for him to
receive more interest. The first saw
ings bank was under no obligation to
allow depositors to withdraw funds
when they wanted There was pro-
vision that when the depositor shs !!
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 n its organization than
the RuthwelI End more closely resem.
bled the savinss banks Of the present
day. Each def-'sitor received the same
rate Of interest. There was no pre-
liminary investigation Of his charac-
ter, and he could withdraw his de-
posts at pleasure. The rate Of inter.
est was uniformly per cent.
Widespread interest was aroused in