The Richmond Virginian. (Richmond, Va.) 1910-1920, 1915-01-03
STORY OF PRACTICAL
HANDLING OF SAVINGS.
How Thrifty Scotch Minister'S
Idea Was Adopted and De-
veloped by Public Author
ties-Hoarding Wastful.
By JULIAN H. HILL,
Cashier National State and City
Bank.

In recent article in the National
Geographical Magazine. Roland c.
Usher. professor of history at Wash
tngton University, ST. Louis, discusses
tho sources Of the enormous world
wide wealth controlled by England
In examining the causes that have
created and maintained this huge
financial power. Professor Usher says:
"Netther extraordinary diligence nor
skill needs to be brought forward az
the explanation OF the beginning OF
Ensiand's capital fund: nor must we
ailese robbery to explain it. 1t was
that most unusual but simplest OF all
thingS-eavinE."
Let us remember that the success
OF . nation Is merely the combined
success OF the individuals who COM
prise 1t. and we will realize that the
power to which Professor Usher re-
fers that Is possessed by England as
. nation through saving begins and
ends with the individual sa wing of the
men. women and Children In the
country. Her people early learned
the value and necessity of trift and
economy and realized that it was not
how much they earned. but how much
they saved that brought wealth.
This world lesson is just as inn
portant for each one OF US today as
II ever was and the question naturally
arises: Through what agency have
the savings OF the people 'become so
treat q world power7
Practical Handling OF Savings.
While as above mentioned the
foundations of wealth were laid a
great many centuries ago. the actuai,
practical handling of the savings Of
tho people began shortly after the
establishment OF the government OF
tho United States The place OF the
Savings Bank as a power tn the COM
nunity dates from the year 1910,
when thirty Scotch minister, the
Reverend Henry Duncan. or Bothwsa
troubled by the wasteftilness OF his
people. offered 10 pay per cent in
tarest on any savings his parishionerr
might leave with him. Prior to this
time, while people. of course. saved
money. there was no way in which 1t
could be used for the general benefit
OF the community and boarding was
largely the method resorted to by any
person who wished TO accumulate a
surplus fund.
Following Mr.. Duncan's beginning.
the public authorities were quick 10
see the benefit OF the plan and the
idea was rapidly taken up in other
parts OF the country, the nrst at
tempt OF ar extended basis being
made In Edinburgh In 1914 short
time after, savings eata blishnent
known as the Prevalent Bank was
opened In Glasgow and the practice
Of tho Scottish banks allowing interest
on deposits materially pushed forward
the Savings Bank movement
From this date the system for TN
proving methods OF handling the saw
ings OF the, people was RAPIDLY de-
veloped and 1t was not long before
America fell in line. AZ early as 1910
the State OF Massachusetts granted n
charter to the Provident 1nstitutios.
for Savings I'm the town OF Boston.
Philadelphia followed with Il Savings
Society the next year. and New Year
soon after. and from then on the
Savings Bank became more and more
of power for good IN the commun-
ity. BY 1880 strong and solid
foundation had been laid and from
that time on progress was rand as
Indicated by the following figures:
Growth Was Rapid
In 1890 there were thirty-six saw
ings hank In he country with total
deposits OF about 100000. owned
by ss.0s5 depositors: In 1850 the
number Of banks had increased to one
hundred and eight. the deposits to
$4,000. 600 and the depositors 10
$4,000: In the next twenty years the
hrHt big increase took place. she num-
Der OF banks increasing to I'VE hun
dred and seventeen. the deposits to
f5bo. 100000 and the depositors to
f.630.00o: In 1900 the number OF
banks was one thousand and two. the
deposits close upon s2soo.0 .oab
and the number Of depositors over
e.100,0 900: at the present time the
number OF banks is over two thou
sand. the deposits in the netghbor-
hood OF 5000. 100000 and the de-
pos!tors considerably over 10000. 600.
Without going into any lengthy
analysis OF these figures II Ia very
evident what a tremendous power for
rood these huge savings must be and
how Arm a place I'm the welfare of
the community the savings bank oc-
cupiea- Just as in the earliest days
Il was noticed that the first fruits OF
The savings bank meant more thrift.
less poverty, general improvement
OF the cha rnctcr of the people ana
natural feeling OF prosperity and In
dependence. so these good points have
been developed during the past CEN
fury until at the present day It Is not
too much to say that the savings
hank is the greatest Individual feature
FOR good in any community.
The growth and development of
any community naturally depends to
ready money with which to carry out
the necessary plans and II il from
the savings of the people through the
rawlings bank that this money is OBJ
sained
q Tho savings of the people kept AT
hcfne shoarded and hidden away In
some safe corner will do the COM
munity practically no good. Money t
msgs1t be compared to water In a dry |
country--a system OF irrigation which |
enables this money to flow freely: /
that ia, system of savings banks Is |
what fertilizes aid develops the /
and, therefore. the COM |,
mercial and general business inter- |
ests of the State as well as of the |
various sections OF II depend for their I
upon the savings banks.
An Important Doctrine
OF course we must not lose sight /
pf the fact that the savings bank can |
bnly be of benefit to tho extent tina, /
the people avail themselves Of its |
facilities
Let ne remember that the doctrine !
Df thrift Is most important for each
C11e Of Is to practice. because with
eax Mt And improved methods Of !