The Clio messenger., 1918-03-29
The First Savings
Bank
Deposits About $500 First
Year Overcame Poverty in
Little Scottish Village
By S. W. STRAUS
Pcminent New York and Chicago Banker)

One Hunureu anu ten years ago tnere
were no savings banks. The savings
bank is an institution which was
founded in the year 1910 by Rev.
Henry Duncan in the little Scottish
village of Ruthwell. Before that time,
poverty seemed to be the normal con.
dition of half the population of the
British Isles. Pauperism was so COM
mon as to cause no comment. Hun
dreds of thousands in Scotland alone
lived on charity and it was generally
accepted as hopeless fact that 1.-The
poor we have always with u.s."
Doctor Duncan was of sturdy Scotch
covenantor blood. He was man of
unusual strength of character, origin
ality and resource and extraordinary
talent for making friends. The dis.
tress Of his parishioners preyed heav-
lily on Doctor Duncans mind and he
felt If there was some way of teach
ing them to be thrifty he would have
an effective remedy for the poverty he
saw all around him.
he chief trouble was that the small
cept was f1O and comparatively few Of
the Scottish villagers had so large a
sum, about $4S.75 in American coin.
So, Doctor Duncan conceived the idea
of poor mans bank, as he called ii,
which would receive deposits of any
amount. however small. After study
ing the subject long and carefully, he
published pamphlet to call attention
to his project, so, as he said as to
render this measure suitable not for
one lorality only but "for Scotland and
the wCrld"
The only banks the poor had in
those days were stocking, chink in
the wall, or a loose board in the floor.
They were often robbed and the temp
tation to use portion of this precious
nest egg was often too strong. Doc
tor Duncan argued shrewdly that IL
their funds were transferred to bank,
they not only would be safe from theft
but the owners would hesitate to break
into them except in cases of urgent
need. In his pamphlet he says:
"If any method then could be de-
vised for giving to the artisan a place
part of his gains which the immediate
wants Of his family do not require
with the power to reclaim all, or part
Of 1t, at pleasure, it would be a most
desirable thing, even If no interest
should be received"
OF course there were pessimists and
suspicion and prejudice to overcome,
but at last in 1910 the bank was opened
In a little shingled cottage. There
were no vaults, but large iron strong
box, too heavy to move by hand, an
swered the purpose. In view Of the
suspicion which he says was enter
tanned by many, Doctor Duncan pro-
vided three locks for the strong box.
He held one key and two elders of
his church each held the others. OF
course the box could not be opened
without all three keys, in the presence
of all three trustees.
In the first year the deposits
amounted to f151. In the second year
f176 was deposited. This grew to
f241 in the third, and 1922, or more
than $4,000, in the fourth. For
poverty-stricken village these deposits,
aggregating more than $1,000, were re-
garded as remarkable, since 1t must
be remembered that all deposits were
in small sums.
The effect Of the opening Of the
a, hn o1l
that Doctor Duncan hoped for. With
in year there was remarkable de-
crease In the number of those who
sought charity. Thrift and happiness
replaced poverty and discomfort. With
in q few years there was scarcely
pauper in the village, as Doctor Dun
can records.
In the meanwhile the fame Of this
remarkable little institution began to
spread and Doctor Duncan soon found
that his labors as q minister were
swallowed uf by those of banker.
His correspondence increased day by
day; letters poured In from all over
England and the continent of Europe
and from America asking for informa-
tion.
In 1914 he published book on saw
ings banks, which was widely circu-
lated, and savings banks began to
spread throughout the British Isles. 1t
seems strange at this time to read that
savings banks could have aroused OPP
position. This. however, was fact.
There was bitter fight in parliament
before the first savings bank act was
passed in 1917. Cobbett, the best
known editor Of his day, used his
powerful influence against the plan,
but Doctor Duncan was a fighter as
well as pbilanthropist. lie went
before the committee Of parliament
himself and SO impressed both lords
and commons with his sincerity, the
force Of his personality and the JUS
tice Of his cause that the bill was
passed. This was I'm 1917. Savings
banks spread rapidly over Great Brit
ain and then over all the rest Of the