tions organized almost simultaneously in Paris, London, Boston, New York, Philadelphia and Baltimore, but the limits of this paper permits only a brief statement of their present condition.

"The Provident Institution for Savings in the Town of Boston," still the incorporate name of the first savings bank that has the honor of being the first to receive legislative enactment, in this or any other country, had January 1, 1883, 64,764 open accounts, showing due to depositors, over twenty-five million dollars.

The Philadelphia Savings Fund Society had at the same date over twenty-three million dollars due to 85,957 depositors.

The Bank of Savings of New York, had July 1, 1882, 103000 depositors, to whom was due over forty-two million dollars.

The Savings Bank of Baltimore, had January 1, 1883, 43,783 depositors and $14,816,788.

Such is the origin and present condition of the four first savings banks established in this country, now having in the aggregate $105,478,857.

The principles on which they were founded are sound. They are based upon philanthropy and christian charity, hence their permanence and wonderful growth. With these as a model, more than six hundred others have been established in this country, mainly in the eastern states, in which are deposited, according to the last report of the bank comp troller at Washington, in round numbers, $1,052,000,000, a sum that almost staggers belief, and difficult to comprehend. A million standard silver dollars weighs 58,928 pounds avoirdupois, 1,052,000,000 about 31,000 tons. Suppose a man with a good team, that can take two tons for a load, undertakes to remove soil of equal weight, how long would it require, moving six loads or twelve tons a day? Eight years, three months and one day!

To whom does all this money belong? Not to the banks, for they can only hold it in trust to be returned to depositors when called for. Not to the wealthy, for the reception of large sums is forbidden by law; and it is the policy, and to a considerable extent, the practice of

the managers, whose time and business experience is gratuitously bestowed, not to receive money from those who are capable of profitably investing and caring for their own funds.

A noticeable feature of the reports of these institutions is the large number of women and children depositors. In 1880 the Provident Institution for Savings in the Town of Boston, had 34,000 open accounts with women, to whom was credited $13,000,000. In the State Saving Bank of Hartford, Connecticut, according to the special report of 1873, fortytwo of every one hundred of its depositors were women and children.

By the same report, "A large proportion of the deposits' (over seven million dollars)" of the Norwich, Connecticut Savings Society are from operatives in factories, mechanics or daily laborers." Other banks report that two-thirds, three-fourths, and one as high as nine-tenths, of their depositors are of this class.

The conclusion, then, must be, that the $1,052,000,000 in the savings banks belong mainly to comparatively poor people. Had the deposits in the New England savings banks January 1, 1882, been equally divided among the people, each man, woman and child in those six states would have received $107. Divided among depositors, the average to each would have been $332. A like division in New York, July 1, 1882, would have given every inhabitant of the state $90 and to depositors an average of $431.

A better understanding of the characteristics of these mutual savings banks may be obtained by reference to the new Wisconsin savings bank law, that was ratified by the people at the November election of 1876. By that enactment it will be seen that any number of persons, as corporators, not less than twenty, constitute a savings bank, when they shall have signed and filed in the office of register of deeds, a certificate, stating the name, place and object of the association. The bank, that is, the corporators, elect directors or managers, who are forbidden under penalties, to use or to borrow its funds, or to become security for a borrower, and no one except the treasurer, who gives a bond, can receive any compensation for his services.

The admirable feature of this system is, a bank can be and necessarily must be, organized without capital. No expensive building nor costly fixtures are requisite at the beginning, and while in its infancy, its affairs may be tran, sacted in any office or place of business, and by a treasurer, who can devote to it an hour or two a day, once or twice a week.

The cradle of one, the New Hampshire Savings Bank, was in a manufacturer's office, and there it remained until it had accumulated $100,000. Another was organized in a post officeand there continued till it had over $200,000 deposits; still another in a drug store, where it remained till it had over half a million dollars on deposit. The only necessary expense for an outfit is the cost of the blank books for keeping its accounts.

When deposits reach hundreds of thousands and millions, a reasonable amount is invested in a suitable building, safe and fixtures. The expense of management is surpassingly moderate. In New York the average cost is about one-third of one per cent. of the deposits, and in Massachusetts and Connecticut it is still less.

National banks and savings banks have no characteristics common to both, except that of receiving deposits. The former are money making, the latter money saving institutions. National banks are owned by stockholders to whom all dividends are paid. Savings banks belong to their depositors who receive all the profits.

ARE THESE BANKS SAFE?

Experience, in answer to this question, sets forth an array of facts conclusively showing that they are reasonably so. It is true, there have been failures, but the causes producing them have, to a great extent, been eliminated from the system by legislative action. The savings bank laws of New York and the New England states have been thoroughly revised within the last few years, thereby greatly diminishing the chances of failure.

The bank examiner of the state of New York, in his last report to the legislature, says: "The worst wrecks found among the failed banks resulted from mismanagement prior

to the passage of the present bank law in 1875. Under the present regulations as to investment and supervision, no serious wrecks can occur."

The only bond of indemnity for the faithful performance of duty in "The Provident Institution for Savings in the Town of Boston," is that of the treasurer for $20,000, and yet he is the custodian of more than twenty-five million dollars. Treasurers of savings banks hold their offices by virtue of their well known integrity, rather than by any security which their bonds afford.

The law has its eye constantly upon them, they must open their safes and books at stated times and whenever called upon and show clean hands; but after all, well established character for honesty is the chief reliance for security.

The corporators, not less than twenty of the prominent men in the vicinity of the bank, have the whole matter in their hands. They choose ten or a dozen trustworthy citizens, whose duty is to elect a man of unblemished reputation for treasurer, and then to supervise his transactions.

All human institutions are imperfect, hence it is possible for a Judas to occupy the position of treasurer of a school board or of a church society or of a savings bank.

An experience of more than sixty years has demonstrated that the percentage of loss in savings banks proper is less than in any other business, with few, if any exceptions, when money is employed in its transactions.

The legislatures of Illinois and Iowa, have not yet provided for the establishment of savings banks. Minnesota and Wisconsin have general laws, recently enacted, exclusively for that purpose, but the people are slow to avail themselves of their advantages.

Mr. Henry M. Knox, bank examiner for the state of Minnesota, in his report for the year ending November 30, 1882, says: "It is a cause for congratulation that under the provisions of the act of 1879, no more of these mixed organizations which under the name of savings banks, are transacting a large business of commercial character, can be organized. * The only bank established under the act of 1879, has savings deposits amounting to $1,014,492." This is a genuine savings bank, without capi

*

tal. The five other so-called savings banks, referred to as "mixed organizations," having capital, have savings deposits amounting to $666,557.

In the political economy of our country, savings banks are becoming an important factor. Their deposits in 1880 amounted to $880,677,350; in 1881 to $967,790,662, and in 1882 to $1,052,982,065, showing an actual increase of nearly $100,000,000.

These accumulations signify additions to the means laid aside for sickness, for old age, for tiding over business stagnation; they are the increasing funds that will enable thousands of depositors, now in the service of others, to purchase and paddle their own canoes.

The advantages derived from these institutions can hardly be overestimated. The one thousand millions of savings, yield depositors at the present low rate of interest, on an average, four per cent. dividends, or in the aggregate forty million dollars, a large proportion of which without savings banks would not be saved, and many of those who now have funds upon which to draw for a rainy day would be in the ranks of pauperism. Saving banks have been largely instrumental in lessening the burdens of taxation for the support of the poor, a fact that has been satisfactorily demonstrated in Great Britain, where for the ten years, 1811 to 1821, prior to the establishment of savings banks in that country, the government expended £68,000,000 for maintaining the poor; but for the decade 1821 to 1831, immediately succeeding their organization, the cost was only £63,000,000, a reduction of £5,000,000, or $25,000,000. The amount paid for this purpose for the year 1834, was £5,989,411; for 1841, £4,492,329, or over 20 per cent less.

This reduction of taxes was attributed largely to the influence of savings banks; hence the English government deemed it wise to encourage them by paying for money borrowed of the people through them three and one-fourth per cent., although it could have been obtained elsewhere for a less rate. After an experience of fifty-five years, it was found that the fostering care of the government in sustaining savings banks had virtually cost $20,000,000 (more exactly £4,169,167), but it was evident that ten-fold as much