The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1910-01-26
EARLY SAVINGS BANKS
First Modern One Was Opened
In Scotland In 1910.
STARTED BY HENRY DUNCAN.
He Was a Presbyterian Clergyman and
Was Friend CT Thomas Carlyle and
OF the Celebrated Dr.. Chalre-s-The
Rapid Spread Of The System.

Was Friend CT Thomas Carlyle and
Of the Celebrated Dr.. Chalnrers-Ihe
Rapid Spread Of the System.
The first savings uluA I" accept de-
posts in small amounts and 10 pay
cumulative interest was opcned IL Scot
land in May. 1910. Several Institutions
for savings existed in foreign countries
prior 10 1910. but there was nothing IN
any respect like the modern savings
bank. England. for example. carly
witnessed the appearance OF numerous
small charitable associations and in>ii-
tutiors which undertook TO invest the
savings OF their members.
The first modern savings hanl.. how
ever. was originated by Henry Dun
can, 4 Presbyterian Clergyman OF
DumfricS. Scotland. 2 friend OF Thorn
as CARLYLE aud Of the cc'ebr3tcd Dr.
Chalmers. who throughout his active
HE was interested in various schemes
Of practical bcncvolcuce. IN 1910. aft
or he had already set forth bis views
On the subject in the Dumfrics Courier.
he established the Ruthwcl! Savings
bank. His purpose. as expressed in 4
memoir published by his son in lS>S.
was 70 induce the mass OF pcop!" vt
his time to realize the value Of the lit
tie savings which by economy could be
put away.
The DumfricS community OF lowiand
Scotch was = good one il which ("
start such q scheme. During the first
wear savings 20 the amount Of .l'o
were deposited in the Ru;hweN SaT-
inss bank ard in the next two years
:11I and :oil. respectively. BY lSlI
the deposits amounted 10 s9:s2.
AS the success OF Mr. Duncan'S
scheme became known similar institu-
t;ons were organized elsewhere IL
Scotland and England. One OF the
earliest was the Edinburgh Savings
bank, still thriving institution.
The Ru,hwel! bank had some Pc
cuIari,ies which distinguished it from
the institutions that were Developed
later. There was IN annuity fund. Tor
instance. Most remarkable Of al. be-
fore anybody's lrst deposit was re-
cc!ved inquiries had 10 he made rs 10
his age. famil! affairs and previous
mora! conduct According 20 WHAT
was discovered the management decid-
cd. Grst. whether bis deposit should be
accented aud. second. wlla; rate Of
interest should be allowed him.
The Ruthwcii banks funds wc:c
placed with the British Linen company.
which allowed ) per cent interest on
then. Most o! the depositors received
i per cent. but 70 those OF three years
standing whose deposits amounted 10
IS or more : per cent was allowed.
provided the depoSitor wanted to get
married or that he was htty-s:2 years
old or that in other respects II would
be especially advantageous for him TO
receive more interest The FIST say
inss bank was under 20 obligation to
allow deposi:ors to withdraw funds
when they wanted There was pro
vision that when the depoS!tor Sha!!
have become incapable o! maintaining
himself from sickness or otherwise
weekly allowance may be made 10 him
at the option OF the ccur; OF directors
out OF the money be has deposited.
The Edinburgh Savings bank was
much simpler in its organization than
the Ruthwe!l and more closely rcSeE,
bled the savings banks Of the present
day. Each dcpositor received the same
rate OF interest. There was 10 pre-
liminary investigation Of his charac-
ter. and he could withdraw bis de-
oosi,s az pleasure. The rate Of inter
est was uniformly t per cent
Widespread interest was aroused il
the early experiments IL Great Britain
FarseeinS people realized that the new
institutions were destined 10 add large
ly 10 general prosperity and happiness.
This opinion Was c!oqCenuy voiced by
the great Scotch critic Francis Jeffrey.
who. writing in the Edinburgh Review.
said: 1T would be difficult. We fear.
10 convince either tie people &C their
rulers that the spread OF savings
banks IS Of far more Importance AMI
"a. more likely 10 increase the happi-
ness and even the greatness Of the na-
ton than the most brilliant success OF
its arms or the most Stupcndous i'm
provemea. Of its trade and its asricu!-
ture. And yet we are persuaded the;
It Is So
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 coz
tineat. France. Germany. Denmark ard
Italy successfully taking Up the idea.
Ererywhere with notifications proper
to the nationality it has proved sue
cessful.
The first American savings bank was
opened il Philadelphia in lSl6 and
was called the Philadelphia Saving
Fund society. The same yea. one was
established IN Boston. New York fol-
lowing in 1910. and in 1920 there were
ten il the Country. having $3.50 de-
positors and Sl,l3S,o70 in deposits
Boston Globe.