At the present time, when there seems to be such a
desire on the part of every one to do as much as possible to assist in
ameliorating the condition of those in the humbler ranks of society,—
and as, from some unknown cause, there seems to be an earnest desire to
increase the facilities for enabling the poorer classes to save even
small sums, instead of spending them foolishly, not to say sinfully,—we
have thought that, as the increase in the number of Penny Savings Banks
promises to be an immense boon to the working classes, and as
correspondents have asked information regarding them, it would be well
to give a few hints as to the manner of working these institutions,
shewing that they are so simple that any one with an ordinary knowledge
of numbers and a little order and system, can easily manage them. Very
likely some persons never thought of having anything to do with them,
from having taken up the idea of a bank being some mighty great
establishment. Let them divest themselves of this idea, and let them
look on it as the means of collecting together small savings, and
keeping them safely till they are needed for some useful purpose. Many,
many a small sum is thrown away carelessly, and sometimes for drink, for
no other reason than that it is found lying in the pocket. The first
requisite for success, then, is:—Let perfect confidence be established
between the depositors and those who are to have the care of the money.
This can easily be obtained. Let five or six gentlemen of influence in
the locality sign a letter of guarantee, obliging themselves to become
security to the depositors for the safety of their money; they will
incur very little risk by so doing, as they can protect themselves by
keeping a strict watch over their agent or clerk; and for this purpose
the money should be deposited, as soon as convenient, in the nearest
bank—if a branch of the National Security Savings Bank, so much the
better, as they are most accommodating and obliging to the smaller
establishments. Let one of the trustees of the small bank take upon
himself the responsibility of examining the pass-book of the larger bank
every week, to make sure that the money has been paid in, and in this
way not more than the amount collected on one night could be lost, even
supposing the clerk should turn out to be dishonest. Another very proper
precaution is to make the orders for money to be drawn from the larger
bank only payable when signed by the clerk and one of the trustees. The
only books that are required are a ledger and cash-book, which vary in
size according to the prospect of a large or small amount of business
being done. The cash-book may be of the simplest form possible, all that
is required being a column for the number of the deposit and the
ordinary money column. A very simple form of ledger is the
following:—The two first columns being for the date, we have then eight
accounts, or any number according to the size required, usually twenty
in the two pages, and three additional columns,—the first being intended
for repayments, the second for transfers, and the third for the total
sums received on each night.
The name of the depositor is written on the top line,
and a progressive number, corresponding to the number on the depositor's
book, is carried throughout the whole ledger. The sums deposited and
repaid are entered under their respective numbers, and, at the close of
the transactions for the night, they are added across and filled into
the outer columns. It is quite evident, then, that when the additions of
the outer columns are put together, they must agree with the cash and
also the cash-book, provided they have been correctly posted. By having
the ledger made long enough, twenty-six lines may be introduced from top
to bottom, which, supposing the bank to be open during one night in the
week, will last for six months. Each depositor is furnished with a small
book, in which are inserted the sums paid in on each night, till a part
of the money is to be drawn out, when the different sums are added
together, the amount of the repayment is entered, and deducted so as to
shew the balance remaining. It is not thought advisable to write the
name of the depositor in the small book, as, independently of the great
saving of labour, this plan has been found useful in cases where books
have been lost and presented by the finder, who could not get the money
from not being able to tell the name, shewing plainly that it belonged
to some one else. After the first expense of the ledger and cash-book
has been got over, and a supply of small deposit-books and hand-bills
procured, the current expenses may be very small indeed — a hall, or
school-room, or session-house can easily be procured, and a small sum
will pay for coal and gas; but there is one item of expenditure, which,
after the experience of several years, we believe cannot well be
dispensed with, viz., a small allowance to a clerk, who will take the
entire charge of the ledger. Gratuitous assistance in this matter is
generally freely offered; but our experience has taught us that paid
services only can be relied on for any length of time. Many a young man
would willingly undertake the duty for L.5, 5s. a-year, which is not too
much for two or three hours' attendance for one night in each week,
besides balancing the ledger twice in the year. The clerk should be
assisted by other parties, who will attend in rotation, and give their
services gratuitously, to take charge of the cash-book, as he should
confine his attention entirely to the ledger. The ledger should be
balanced at the end of every six months, to make sure that the accounts
are all quite right. This is a very simple matter, if care has been
taken to make the entries correctly on each night. All the accounts
still open must be added up, and the aggregate amount being found to
agree with the balance at the credit in the larger bank, will shew that
everything is correct. For many reasons, it is not thought expedient
that a large sum should accumulate in the Penny Bank. To obviate this,
whenever a depositor's account has reached the sum of 20s., it should be
transferred to the larger bank, to an account in the depositor's own
name, when he will receive interest for it, the smaller bank not
allowing any interest, partly on account of the useless labour of
dividing a trifling sum of interest over a large number of accounts, and
partly because the interest should go, in so far, to pay the expenses
connected with the bank. When a transfer is made, the pound is deducted
from the sum at the credit, the balance is brought down, and the pound
is entered in the second last column in the ledger headed "Transfers."
The large sums which have been accumulated in these small establishments
would astonish those who have not had their attention turned to this
matter; in some cases, from L. 15 to L.20, and in many cases, L.6, L.7,
and L.8 have been transferred in the course of a year or two. One of the
Penny Banks in Glasgow has, since May 1852, received in small
deposits—from 1d. upwards—no less a sum than L.2030.
* That they have been productive of a vast amount of good there
can be no doubt, as the gratitude evinced by those who have been
benefited by them is a convincing proof; and, unlike most institutions,
we are not aware that any bad results can be traced to them. There are
some persons—fortunately they are very few in number—who object to these
Small Savings Banks. They may suppose that they have good reasons for
doing so; but we would advise them to look in on a Saturday night at any
of them in full operation, and see the crowd of happy faces of the
depositors; or if they could see, as we have seen, the mother with tears
in her eyes drawing out her money because there was "trouble in the
house," thanking God that she had still something left to carry her
through, and then, before leaving, turning to the bank manager and
saying, "Oh, sir, if it had not been for you I would not have had a
penny," surely they would change their minds, and lend a helping hand to
these institutions, instead of damping the spirits of the promoters of
them. Prom what has been said, it will be seen that the right conducting
of a Penny Bank is a more simple matter than might at first be imagined;
regularity and a correct system, however, being absolutely necessary;
but where these are brought into play, with full confidence on the part
of the depositors in the honour and honesty of those engaged in the
work, success is very certain. A prejudice exists in some minds among
the working classes against these banks, because they suppose that, from
the circumstance of their masters being connected with the bank as
trustees, they have an opportunity of seeing how much money the
depositors are able to save, and may endeavour to lower their wages.
This is altogether a very mistaken idea, and one that no master would
for one moment think of acting on; so much is the reverse the case, that
we venture to say, that there is not a master of any of our public works
who would not rejoice to see all the men and women in his employment
having their bank books; and, so far from reducing their wages, it would
give them a far better opinion of their workers than if they knew that
all their wages were spent and no part of them saved. It must be well
known to many of our readers, that one of our wealthy manufacturers, not
long ago, requested his workers to shew him their savings-bank books;
most of them complied with his request, a few hung back and did not
gratify him. The result was, that he exactly doubled the amount at the
credit of each depositor who had the confidence to shew his book. The
depositors may rest assured that the state of each depositor's account
is kept strictly secret, and is not divulged to any one for any reason
whatever. It would be well
that they dismiss this prejudice from their minds, as
it has no good foundation to rest on. One word of advice to those who
purpose setting up a Penny Bank. Do not be discouraged if, after a time,
say six months or so, you find that the deposits are falling off; this
is very generally the case, but by and by they will increase in number
and amount; in fact, the receipts will ebb and flow, and the bank should
not be allowed to go down because for a time it has not been encouraged
as might have been expected; take courage and carry on, and by and by,
when better known, it will gain new strength and increase. A good plan
is to circulate hand-bills through the houses, reminding the inmates
that the bank is open; let them contain a short address on the
advantages of saving habits, few will take the trouble to read a long
bill.