i THE UNIVERSITY OF ILLINOIS LIBRARY "BS7 5 M.15 ESSAY Jr ON THE NATURE AND ADVANTAGES OF PARISH BANKS, FOR THE SAVINGS OF THE INDUSTRIOUS. SECOND EDITION, GREATLY ALTERED, And enlarged hy an Account of THE RISE AND PROGRESS OF THE SCHEME ; And remarks on the propriety of uniting these Institutions with jTrienlil^ ^otittitQ; TOGETHER WITH AN APPENDIX, Containing a Copy of the Rules of the Dumfries Parish Banky an Account of such Banks as differ from that of Dumfries^ and some Cursory Observations on Friendly Societies, ^t. BY Rev. henry DUNCAN, Ruthwell. EDINBURGH . PRINTED FOR OLIPHaNT, WAUGH, urgh institution been equally nourishing in propor- tion to the time it has been established, and the number of in- habitants, the depositors, instead of 749, would have amounted, 14 ill October last, to 4780, and the mo:iey lodged, instead of 2423/. would have risen to the very large sum of 22,400/. Several circumstances may have concurred to produce this re- markable difference, some of which we shall alterwards have occasion to mention, but it seems beyond all doubt that the principal cause of the superior success of the Dumfries Bank is the popular form of its conslilulwn. These remarks appear to me of greater importance to the interests of the institution, than may be generally supposed. It is certainly very far from my intention to draw invidious comparisons, or to disparage the efforts of those enlightened individuals, who have, with such laudable zeal, promoted the prosperity of the Savings' Bank in our metropolis. — Quite the reverse. I am persuaded that if the most extraordinary efforts had not been made, and the utmost prudence and disinterested zeal been manifested, the institution in Edinburgh could not have attained that degree of success which has attended its ope- rations ; and its managers are undoubtedly entitled to the warm- est gratitude of every friend of humanity. I must, however, be suffered to regret that any attempt should have been made to establish as a general rule, what, at most, ought to have been considered merely as a necessary exception, and that the the form of the Edinburgh institution should have been pro- posed as the only perfect model, and as an essential part of the scheme. It may be readily granted that those who insist on the necessity of excluding the depositors from the privileges of stockholders, are sufficiently competent judges of the cir- cumstances with which they are more immediately conversant, without drawing any inference in favour of their opinion on points respecting which they^ have not an opportunity of per- 1.5 sonal observation. I venture not to dispute the soundness of their decision with regard to the form of a Savings'" Bank, in so po- pulous a city as that of Edinburgh ; but I am inclined to believe that persons of much inferior capacity, provided they are ac- quainted with the hal)its and prejudices of the lower classes in the country, are capable of forming a more accurate judg- ment of what may, in this respect, be generalli/ useful, than those who have all their lives been inhabitants of a great town. At all events, the fact evidently militates against their theory, so far, at least, as any deduction can be drawn from the result of so short a trial. On the subject of security, there is another consideration to which I have not yet adverted. It is necessary, of course, that every individual should be assured that the sums he deposits shall be regularly entered to account, and always forthcoming whenever he may choose to withdraw them. To accomplish the first of these objects, he should be furnished with a duplicate of his account, in which every payment ought to be entered as soon as it is made. This may, in most instances, be sufficient; but should a still further pledge of the fidelity of the managers be required, an annual statement of accounts may be printed, in which the amount of each deposit may be distinctly particular- ized. Some delicacy, indeed, may be requisite in divulging the sums of which the respective depositors are possessed, and the committee of management alone should be permitted to inspect the books ; but the exhibition of a minute view of the funds may be rendered compatible with the requisite secrecy, l)y a very simple contrivance. In the duplicate kept !)y the deposi- tor, the number of the folio, at which his account stands in the ledger, might with much propriety be inserted, and this nuw- 16 b^r might be used, in the printed abstract, in place of his name.- By this indication he would readily recognize, in the public report, the amount of his own savings, and be able to detect any error, whilst he would, at the same time, be effectually protected from the improper curiosity of others. With regard to the certainty of repayment, it is evident that the treasurer and managers should, in some way, be made re- sponsible. The treasurer ought to find security for his intro- missions, and no large sum should at any time be permitted to re- main in his hands ; whilst the other managers should be required to inspect the receipts of the public bank at stated intervals, and compare them with the entries in the books. Some such obvious method of preventing the possibility of fraud or negli- gence, must naturally occur to those who frame the rules of any new establishments of this kind, and the detail may be safely left to the good sense and vigilance of benevolent individuals ; still, however, remembering that too great caution, with re- spect to securities, can scarcely exist. 2d. Another advantage, essential to the scheme, is profit. The greater and more obvious the benefits of the institution are, the more powerful, of course, will be the inducement to become members of it. On this subject several considerations are worthy of notice. In the first place, one great object of the scheme is, to take the savings of the poor out of the hands of designing individuals, or such as can only afford a very precarious security for repayment. In every part of the country, persons are to be found, who makeit their business to impose on the credulity of the ignorant or inexperienced. These are sufficiently sagacious in discovering where small 17 hoards of money are to be foiuid, and but ton well skilled in rlie art of obtaining possession of them. The uiliuement of a higher rate of interest than can be procured from a public bank, has induced many an industrious man to place his little property in tbe hands of some needy adventurer, from whence it has never returned. Were it possible, therefore, for the Parish Bank, in every instance, to hold out the encouragement of Jive per cent, it would certainly be of some consequence to have the power of counteracting, by this means, the temptation al- luded to. ]?ut this is scarcely to be expected ; and the only rule that can be laid down on the subject is, that by the con- tributions of the benevolent and otiier means, the rate of interest should be kept as high as circumstances will admit. It is also desirable that as clear and striking a view as possible should be exhibited of the advantages of compound interest.—' With this view it has been thought more useful to add the in- terest yearly to the principal, than in any case to suffer it to be regularly drawn out, m the form of interest ^ as it becomes duo. This is all the length that some individuals who have taken an active part in promoting the scheme would be inclined to go. There are others, however, better acquainted perhaps with the circumstances and feelings of the lower classes, who consider it of importance to encourage, by some additional means, the spirit of accumulation. They would place no direct restriction on the facility of withdrawing the money from the funds, be cause this woidd operate as a discouragement to those who TTiight otherwise be inclined to make use of the benefits of the institution; but, in order to induce the depositors to refrain from having recourse, on every frivolous pretext, to the money lodged, they think it expedient that .superior profit should, u>\- der particular circumstances, be granted to such us shall liav«» 18 continued to make deposits for a certain term of years. With this view the Ruthwell Bank, whilst it allows only the common bank interest of 4 per cent to depositors who draw out their money before they have been three years members of the insti- tution, holds out the encouragement of 5 per cent on the whole money lodged, to such as suffer their deposits to remain beyond that period, in certain specified instances,* reserving a power to the society to grant or withhold this additional per centage in other instances, as they shall see cause. As the discretionary power, however, thus vested in the parent society, may be liable to abuse, it has been thought advisable, in forming the rules of some more recent societies, such as that of Dumfries, to render it imperative on the society to grant 5 per cent, without re- serve, to those individuals who shall have been members for three years. This obviates a serious difficulty, which might sometimes occur in practice. A similar inducement to habits of accumulation has, in some Parish Banks, been held out by a different provision. The intelligent founders of the esta- blishments in Hawick and Kelso, in particular, have resolved to allow only the usual interest of four per cent, in every in- stance, but they suffer the extra profits of the institution, from whatever source, to accumulate for a certain term of years, at the end of which period they make a division of the surplus, in relative proportions, among such depositors as continue to be members. This is an ingenious and well-conceived plan, and seems likely to be attended with a happy result. * The instances in which the depositors in the Ruthwell Bank, or their heirs, have a light to demand 5 per cent, after having been members for three years, are, 1st, At the period of marriage ; 2tl, At or after the age of 56 ; 3d, In caie of sickness ; 4th, In the event of deatii. In this regulation, as well as in almost every other, the parent institution has been closely followed by the Parish Banks of Invcresk, Lochmaben, &c. 19 Another provision, of a similar tendency, remains yet to be mentioned. The advantage of giving every possible encou- ragement to regular weekli/ payments, will be readily compre- hended by those who are acquainted with the dispositions and habits of the great body of the people. I have already alluded to the temptations which lie in the way of the labouring class, to spend the whole of their earnings as they come into their hands ; and when it is considered that the smallness of the sums they receive for. weekly wages affords them so trifling a rever- sion, after payment of their necessary expenses, it will appear by no means surprising, that a great majority of them, in de- spair of ever acquiring a competency by their own exertions, should be induced to dissipate in extravagancies the little sums they might have saved. I have also remarked, that even if, under such circumstances, a workman should attempt to begin a system of saving, by hoarding at home what he could spare till it should amount to a considerable sum, so many calls might, in the mean time, be made on his vanity, his propensities, or the easiness of his temper, that, there is reason to fear, his good intentions would often be frustrated. From these considerations it appears, that any contrivance which might make it an object of importance to a tradesman or la- bourer to be punctual in lodging toeekhj deposits in the bank, would be an improvement of the scheme. A contrivance for that purpose was recommended in the first edition of this Es- say, and has since been reduced to practice by the founders of the Dumfries Parish Bank. That institution holds out the prospect of a small but increasing premium to those who shall persevere, year after year, to pay into the bank, without the intermission of more than three weeks, a certain weekly sum, Tht« regulation has already been attended with very happy ef- ^20 fects. A great spirit oF emulation, particularly amongst t!ir younger depositors, has been excited for obtaining the pre- miums, trifling as they are; and at the first anniversary of the institution, which took place on the third Saturday of January last (1816), no fewer tlian forty-one persons were found en- titled to this reward, — having been regular contributors every ueek since the first formation of the Bank. This must appear a very large proportion, and completely justify the expediency of the provision, when it is remembered that. in a town like Dumfries where there are no extensive manufactures, the num- Ler of workmen who receive their wages weeklj/ cannot be very great. Before leaving this subject, it may be proper to advert to a regulation which has been strongly recommended by some zea- lous patrons of the institution, but which seems to have a ten- dency directly the reverse of those already mentioned. It has been supposed necessary that, as soon as the deposits of any in- dividual shall li^ve amounted to ten pounds, the depositor shall be bound to withdraw that sum from the Savings'* Bank, and to have it transferred to his own account in the public Bank. The ad- vantage expected to be derived from this provision consists in preventing the sum in the funds of the Saving Institution from ever rising to a great amount, and in thus diminishing the respon- sibility of the managers. But I am greatly mistaken if the dis- couragements, which it must necessarily throw in the way of accu- mulation, do not greatly counterbalance any supposed convenience of this kind. The fact is, that, to a poor man, the circumstance of having, all his little store collected together, and placed un- der the same management, is of no trifling importance. Be- sides, the kind of moral restraint, which a system calculated 21 to encourage accumulation imposes on persons In that rank (if life, cannot fail to be productive of the most salutary effects; and any thing which has a tendency to impede the operation of that system must be proportionally injurious. It seems evident, that the money thrown out of the protection of the Bank for Savings will be more liable to mismanagement and waste, than that which is in the course of accumulation. Some expensive article of dress or of furniture is wanted, — a friend applies for a loan, — or an adventurer proposes a hazardous speculation ; ife would be a kind of sacrilege to break in on any thing so sacred as the accumulating stock in the hands of the Parish Bank, but a public bank receipt^ for ten or twenty pounds, which has ceased to be guarded by such powerful associations, lies in the poor man's chest, and he finds it impossible to resist the enticement of his own inclinations, or the solicitation of friends. The money is expended; — and he has to begin anew the arduous, and now perhaps almost hopeless task of laying up a provision for disease or old age. On the other hand, the sums lodged in those Parish Banks, which are founded on the principle of progressive accumulation at compound interest, will naturally be watched over by the depositors with a laudable jealousy. The same system which held out to them encouragements for saving ut first, still retains its influence over their minds. The money which, with so much self-denial, they have been enabled, by the assistance of this institution, to accumulate, still appears, through the operation of the same circumstances, to be gradu- ally increasing under their eyes : — they can calculate with ease and certainty the time when, if not prevented by unforeseen ac- cidents, they shall be in possession of a sum suflicicnt to raise them above the dread of want ; and year ailf r year, when tlieir acc»«nt is balanced, and a new receipt put ijito their haud.<^ 2^i they see their calculations verified in the progressive rise of their little capital. It will be observed that I am not now speaking of what must necessarily take place, but of the relative temknc/i/ of the provisions under consideration. If I am right in the general view of the subject, and I contend for nothing more, it will pro- bably be conceded, that the mere possibility of such opposite re- sults from the operation of the two schemes, is sufficient to in- duce the benevolent mind to pause before it gives its assent to the proposed modification. It is easy to understand, indeed, that the managers of Parish Banks may, from necessity, be compelled to make some regulation on the subject alluded to. The public banks, from a justifiable wish to check an abuse of the generosity with which they grant higher interest on the funds of such institutions than on the deposits of private indivi- duals, may limit their bounty to such accounts as are under ten pounds. This is perfectly intelligible ; and in such a case no- thing remains but to submit to a disadvantage which cannot be avoided, and to make its effects fall as lightly on the scheme as possible ; but certainly it must still be a disadvantage. In fact, I cannot help thinking that the superior encourgements of the original scheme have already displayed themselves in practice* The regulation in question was introduced into the plan of the Edinburgh Bank for Savings ; and there is reason to believe that this may be one of the causes which has contributed to the com- parative slowness with which it has gained ground. One thing, at least, is certain : — In Dumfries, where circumstances ren- dered it necessary to bold a consultation with regard to some change in the Parish Bank system, the plan of transferring the individual accounts into the hands of the public bank when they should amount to ten pounds, was received by the 23 depositors witli feelings of great disapprobation ; and it seemed to be the universal sentiment, that rather than submit to this restriction, they would willingly forego the advantage of an ad- ditional per centage held out to them by the Bank of Scotland.* This fact merits particular attention, as it strongly marks the sentiments of those whom it is the object of the institution to benefit. Should it be necessary, for the purpose of accommo- dating the institution to the views of the public banks, in any respect to alter the regulations, perhaps these banks might be satisfied, if, instead of transferring into iheir hands the depo- sits amounting to ten pounds, the managers of the Parish Banks were to furnish them with an annual list of such deposits, and to give their agents authoiity at all times to inspect the books of the society. At all events, should the public banks insist on the actual transfer of the sums, which I think is scarce!/ probable, the managers of the Saving establishments might re- tain the bank receipts in their own possession, and thus, in some degree, obviate the disadvantages I have stated. In either of these cases, it would doubtless be most advantageous for the Parish Banks to reduce the interest on all the deposits to 4 per cent, from the commencement, and to employ the extra interest allowed on small sums by the public banks for the behoof ol" the Auxiliary Fund. This opinion will appear well foundec^ when it is considered that, according to the Edinburgh rule, a.«; 30011 as the poor man begins by his industry to acquire a little capital, the interest, instead of being increased, is actually dinHv * Tbe rircHtn'tance wh'ch gave rise to the consyltation above a'liuled to, was the receipt of a circular leitrr from the mana^.-ri oJ the Brink of Scotlai)H. ri-(juiiin)j that tbe plan ndoptcil by the Edinburgh Saving".* Bunk, of uaniferriiijj into ihe ha>d« ot the public bank the intlividual acrounti amounting to ten ;jcun(ls, should be arioptfi! Iiy tU thovt S»Ting inttitutioni which received from theni 5 p«r cert, irrtne^t, u Tiished in its ratio, — a circumstance wliicli, so far as it operates at all, must have the effect of damping the ardour of the depo- sitors. But there is another consequence of the Edinburgh system, which is perhaps still more to be deprecated. By hold- ing out superior encouragement for the deposit of sums under ten pounds, a door is opened for a kind of evasion, which the lower classes are sufficiently sagacious to discover, and too little scrupulous, I fear, not to make use of. They still have it in their power to obtain 5 per cent, for the whole sums they may find it convenient to deposit, by the simple contrivance of opening an account in a new name (perhaps that of a wife or child), when their little savings amount nearly to ten pounds. It is surely needless to say, how extremely hurtful to the mo- rals of the people, such a powerful temptation to petty fraud and cunning must necessarily be found. Before leaving this subject, it may be proper to take notice of another modification of the plan which has been proposed, and, in some instances, carried into effect. The original inten- tion of the institution, it must be remarked, was to leave the depositors perfectly free and unshackled in their paynie«ts, both with regard to time and amount, and tlius to obviate a hardship arising from the fines and forfeitures necessary to the existence of Friendly Societies. It has been alleged, however, that the chief defect of the Parish Bank scheme lies in the remedy proposed, and that, though it may bear hard on a contributor to be bound to pay annually a stated sum, as in Friendly Societies, under the pain of forfeiting the whole, it is, notwithstanding, useful in such institutions, that some strong motive should exist for regular payments. The reason, on which this opinion is founded, must be obvious to all who know any 2.5 llting ot" human nature. What we have no pressing motive to (Jo at a particular time, we are apt to delay till it is beyond our power to do it all. So sensible are the common people them- selves of this tendency, that we frequently observe them having recourse to contrivances for forcing themselves to save money for a particular object. It is partly on this principle that Friend- ly Societies and Menages find so many supporters, and that there are such frequent associations among the lower classes with the view of raising funds lor the purchase of family Bibles, orsoujc of the more expensive articles of lurniture. From reflections of this kind, it has, by some individuals, been thought advisable to fix a certain sum, which eveiy depositor in a Savings" IJank should be under the necessity of lodging annually, and to make some trifling [)enalty the eTect of lailing to fulfil this condition. For my own part, I am inclined to approve of this suggestion ; but if carried into effect, it would certainly be necessary to fix the sum so low as to place the payment of it within the reach of every labourer, without inconvenience. It may be observed, that, as a dej)ositor has it in his power to withdraw any part of his funds from the Bank whenever he pleases, it would be quite competent for him, should he find it impossible other- wise to comply with this provision, to avoid the fine, by draw- ing out the amount required and afterwards repaying it. The great object of the regulation is to oblige the depositors to make at least one transaction with the Bank every year. This could liave no effect in preventing them from paying in more than the specified sum, should they be able to afford it ; but, on the contrary, by keeping the institution, with its benefits, always in their memory, it is natural to suppose that it would operate as a continual inducement for them to strain every nerve ^oi increasing their stock. A similar effect would be prodtned. 26 with superior advantages, perhaps, as I shall afterwards have occasion to show, by forming a connection between Parish Banks and Friendly Societies. For accomplishing the important objects of the institution'; as well as meeting incidental expenses, some extraordinary re- sources are evidently necessary. These are furnished in the following manner. I have already observed, that one great object of the establishment is, to encourage the accumulation of very small sums, and that peculiar facilities and encourage- ments are given for that purpose. With this view, it is al- ways provided, that a deposit of one or two shillings may be received and entered to account ; but no interest is ever allow- ed on any payments till they rise to ten shillings, and, indeed, in the greater part of the institutions for savings, the sum de- posited is required to be double that amount before it is suffer- ed to go to interest. Hence there arises a small annual sum of surplus interest. Another source, from which a trifling balance of profit is derived in some Parish Banks, is the difference between the interest allowed by the rules, and that which is liberally afforded by the public banks. I have already stated that in many of the saving institutions which consider it useful to hold out peculiar encouragement to habits of accumulation, 4 per cent only is allowed to depositors for such sums as they may have withdrawn during the currency of the first three years of their payments. In those cases, therefore, where the whole funds draw interest at the rate of 3 per cent, a trifling surplus may occasionally accrue from this regulation. But it is quite evident, that these sources of profit are totally in- sufficient to pay all the expenses of the institution, and fulfil the provisions of the more liberal form which the benevolent 27 would wish it to assume. For making up the deficiency, there- fore, the Parish Banks must depend on the generosity of indi- viduals in opulent circumstances ; and an auxiliary fund is usually added to the institution, which is made up of the contri- butions of the benevolent, together with the surplus interest al- ready mentioned, and any unappropriated money arising from other sources. The advantage of a considerable capital for the use of the auxiliary fund is very apparent ; and indeed those who have paid any attention to the means best calculated for promoting the interests of the poor, must be convinced that they cannot exercise their charitable dispositions in a manner more likely to be attended with beneficial consequences, than by contributing to the support of this part of the establishment. The common methods of bestowing charity, however well in- tended, frequently operate as a premium to idleness and dissi- pation ; whilst the pittance given in aid of Banks for Savings, cannot fail to have a tendency directly the reverse ; and it must be delightful to every enlightened mind to be assured, that a method is at last found of uniting liberality to the poor, with the certainty of promoting the best interests of society. Those who consider the unspeakable advantage of rendering the lower orders frugal, industrious, and attentive to their moral and re- ligious duties, will not think it too much to bribe them to at- tend to their own interests.* There is yet another form which under particular circum- stances it may be proper for the Parish Bank system to as- * What is said above refers to the jystrm as adopted to Scotland. It is for the friends of the institution in England to coniidcr how far it might be practicable or ad- vantageous to employ a portion of the puor rales in support of an Auxiliary fund, and thus make that establishment counteract evils which it has itself created. 28 snime. The only serious obstacle likely to occur to the general adoption of the scheme, at least in Scotland, is the difficulty of finding individuals in the different parishes willing to under- take the labour and responsibility of conducting the business in all its details ; — and this is increased by the necessity that there appears to be of having weekly or at least monthly collectors on the spot. For the purpose of obviating this difficulty, the Savings' Bank established in the chief town of every district might be employed as a Central Bank, by the inhabitants of such parishes as have not the means of erecting an independent establishment for tliemselves. In each of these parishes a com- mittee might be formed, with an agent, a collector, and other office-bearers, to be chosen annually by the depositors belong- ing to that district. The duty and responsibility of these parish office-bearers would by this arrangement, be materially lighten- ed. The only book necessary for them to keep would be a cash- book, containing an account of the receipts and disbursements. — Along with each remittance, it would be their duty to transmit to the central agent, a copy of the transactions of each week, oir month, with the names of the depositors, the sums deposited hy each, &c. as entered in their own cash-book ; — whilst the Central Bank would take ujjon itself all the detail of book-keeping, and calculations of interest. At stated inter- vals, also, the parish agents and office-bearers would have to check the accounts of the central agent, by comparing thera with their cash-book, as well as with the receipts whicli that jagent would regularly grant them for the money deposited in the Central Bank; and at their yearly settlement to add the amount of interest, as calculated by the Central Bank, to the duplicates kept in the hands of the diffisrent deposi- tors. All this would be extremely easy and simple, and th? 29 trouble would be so little, that uo person of coiiimoii bene- volence, I should hope, could hesitate to undertake it, when he reflected on the good that it might accomplish. The only expense of this parochial establishment would be a small annual allowance to the central agent, perhaps in the form of n per-centage on the amount of the deposits. Another very obvious advantage which would be obtained hy employing a Central Bank is, that it would afford security for the payment of interest at the rate of five per cent. — a circumstance of no small importance to the success of the in- stitution. The different public banks have, indeed, hitherto with a very commendable generosity, allowed interest at the above rate on the funds of the Parish Banks already establish- ed in this country, but it cannot be supposed, that these banks can afford to continue this indulgence should the system be- come general. By bringing the whole of the funds, however, of the Parish Banks belonging to a district, into one accumulated fund through the medium of a central establishment, the pub- lic banks might contrive to grant 5 per cent, to the institution vrithout any additional inconvenience or disadvantage to them- selves. The sum necessary for answering eventual demands could not be very great, and the remainder of the funds, should the banks be unwilling to give the high interest on so large an amount, might, from time to time, be laid out on government,*^ pr unexceptionable landed security. It may perhaps, be thought that by remitting the. fundi of the country j»arishes directly to the public bank, there would * See Appendix — Bath Provident Irutitutiun. 50 he less risk of mismanagement ; but it appears that the very re- verse would be the case, and that, in employing a Central Bank, the security against fraud and improper conduct would, by proper precautions, be actually increased. As it would be the duty of the Central Bank to watch over the interests of ail its branches, any irregular transaction that might take place would scarcely fail to be detected by its vigilance ; particularly when it is considered that a printed statement of accounts might be yearly published which would lay the situation of the funds open to every individual; and this might be done without vio- lating the requisite secrecy, by means of the contrivance for- merly mentioned. It is, therefore, easy to conceive how such checks might be devised as would, in particular situations, render the Central Bank an additional security of no small im- portance. — I would not, however, be understood to recommend this extended system for universal adoption. In those country parishes where independent institutions can, without difficulty, be formed, such institutions may be found, in some respects to be preferable. I have said enough, however, I trust, to shew, that such an extension of the original plan, is, in certain cases, at least worthy of serious consideration. Some benevolent in- dividuals have even gone farther, and suggested the proprie- ty of a grand national establishment in the metropolis of Scot- land, to connect the whole system into one great institution, and to regulate, controul, and direct its movements. Amongst this number is a gentleman of extensive influence, not less re- markable for his public beneficence, than for his numerous pri- vate virtues.* In the mean time, however, it is desirable, that * Dr Baird, Principal of the University of Edinburgh, the gentleman to whom I have iiifd the liberty of alluding in this passage, took an opportunity, about fifteen 31 the impulse should begin as much as possible with the people themselves, for whose benefit the scheme is intended ; and any appearance of a machinery too formidable and complicated, might, in that quarter, be productive of an unfavourable im- pression. For the establishment of a Central Bank, some details, int» which it is needless very minutely to enter in this place, would be necessary. It would be indispensible to give complete se- curity to the depositors ; — not only that the parish treasurers would be faithful, but also that the money would be perfectly safe in the Central Bank. The heritors of the respective pa- rishes might probably be induced to become security for the sums lodged in their Parish Banks, and some guarantee, n* less unexceptionable, might without difficulty be found for the olTice-bearers of the Central Banks ; particularly when it is con- sidered, that as these banks might perhaps be brought under the meaning of the law with regard to Friendly Societies, the debts due to the bank by any of its office-bearers, would in that case be rendered preferable^ by the act (33 Geo. III. cap. 54.), and would fall to be discharged, " in preference to any other de- mand whatever." It would no doubt be necessary, should the plan succeed, to give the agent of the Central Bank a conside- yearj ago, publicly to propose the plan of .i national establ'iihrnent, for enabling tlie i)>jor to support thcni;e!ves. Though this benevolent scheme was not then ripe for eiiecution, a more favourable titnt- may not now bt far dibtant. It is to be carefully remembered, however, that the wh,Ic icheine of which such a national establishiaem tnay be the lesult, is yet but in its infancy, and thut, at present, exclusive attention should be paid to individual institutions in parishes. But to su^,;c«t, even now, the possible ultimate extension of the principle seemed rijjht, paiticularly a» ihc bencvo lent and patriotic may tcel increased ardour in encouraging Parish Banks, where iLe proi()cct, though remote, is opened lo them, that the foundation they aie laying may termiuaie iu a structure of such magnitude and utility 32 •rable salary ; but the heritors of the differeut parishes could, without any very material inconvenience to themselves, defray this expense ; and I am convinced they would not hesitate t» do so, were they to consider the good which the scheme, if generally adopted, could not fail to accomplish; not to men- tion the eventual advantage they might themselves derive from it by removing the necessity of poor rates. SECTION II. History of the Institution of Parish Banks for Savings. As this method of promoting the interests of the lower orders is at present only in progress, and as much remains yet to be done before it can be completed, an accurate history of the scheme will not be expected ; but it may be interesting to trace the gradual steps by which it has been introduced to public no- tice, and to state what grounds there are for believing that it promises fully to answer the benevolent purposes for which it was originally projected. About the beginning of the year 1810, particular circum- stances connected with the state of the poor in Dumfries and its neighbourhood, and especially a desire to discourage the in- troduction of poor rates into that district — a calamity which, though hitherto warded oft', seemed to be impending — induced Ihe author of this Essay to publish, in a provincial paper, se- veral letters relative to the best method of providing for the wants of that class of society. Whilst engaged in this invest!- S3 gation he had an opportunity of consulting some books and pann;- phlets relative to the poor, furnished by Mr Erskine of Marr, a gentleman whose enlarged benevolence has for many years directed his attention to subjects of this kind. Amongst these useful publications he found an ingenious pamphlet, giving an account of a scheme for gradually abolishing the poor rates in England, called, by the inventor, " Tranquillity," of a nature perhaps too complicated for general adoption.* On perusing this little work, however, he was much struck with the use- ful tendency of one of the subordinate provisions of the plan which proposed the erection of an economical bank for the sa- yings of the industrious. It appeared to him, that a scheme of this kind, if properly digested and carried into effect, unin- cumbered with other objects of a more doubtful operation, might be attended with the most important results. He ac- cordingly arranged his ideas on the subject, and published a pa- per as a sequel to the discussion respecting a provision for the poor, in which he proposed to the gentlemen of the county the establishment of Banks for Savings, in the different parishes of the district. This paper contained a sketch of rules and regu- lations which was to form the ground-work of the future insti- tution. But being sensible of the difficulty of inducing any large body of men to engage in an untried scheme, however plausible in theory, he did not confine himself to a mere recom- mendation in the newspapers. He took immediate measures for giving an experimental proof of its practicability and use- * The inventor of this ingenious and benevolent scheme was John Bone, Esq. of Lor- don. — Principal Baird informs mc, that he has in his possession a MS. letter from Mr Bone, addressed to Lewis Gordon, Esq. Secretary to the Highland Society, in which he states that the Tranqaillity Scheme was established, and succeeded to a desirable extent ; but was at last given up, from a want of funds to defray the incidental expeo- ret of raanaf^eroent. r 34 fulness, by the establishment of a bank, on this plan, in his own parish. This resolution was adopted, more from the convic- tion that it was the best means in his power of ultimately in- troducing the system to general notice, than from very sanguine views of benefit to his own parishioners. In point of local cir- cumstances, indeed, there are perhaps few parishes in Scotland where the scheme might not have been tried to greater advan- tage than in the parish of Ruthwell ; and there were discou- ragements of a peculiar kind, which it may not be improper to itate, that the success of the experiment may appear in its true light. One of these discouragements arose from the want of resident heritors, who might countenance the undertaking with their approbation, and support it with their purse and influence. — But there was a still more formidable difficulty to surmount. Notwithstanding by far the greater part of the inhabitants are poor villagers or cottagers, without manufactures, or any other means of subsistence than such as are usually to be found in a remote country parish, there was a great majority of the aduUs (no fewer than three hundred individuals out of a population of eleven hundred souls) already connected with Friendly So- cieties within the bounds of the parish. Tt was well known, that by far the greater part of these individuals were obliged to strain every nerve for a bare subsistence, and, so far from be- ing able to lay up any additional savings, found at times ex- treme difficulty in fulfilling their engagements to the establish- ed societies. As these institutions were under the immediate superintendance of the author, he was not ignorant of the facts stated ; but they did not seem to him to constitute an objec- tion sufficiently strong to deter him from making a trial of the projected scheme* He knew from experience, that he had to deal with a sober, virtuous, and well-informed population, and 35 «ii this single favourable circumstance he founded the convic- tion, that his attempt would not prove altogether abortive. He was not disappointed. The scheme was drawn up and put in execution in May, 1810, with the advice and co-operation of some of the most respectable inhabitants of the parish ; and since that time, the funds of the institution have risen to up- wards o( fourteen hundred pounds. Always keeping in view the benefit which might accrue from the general adoption of the system, the founders of the Huth- well Parish Bank took every precaution that circumstances would admit of, for encreasing its respectability and impor- tance, and presenting it to the favourable consideration of the public. With this design, the lord lieutenant, the vice-lieute- nant, and sheriff of the county, together with the members of parliament for the county and burghs of the district, were con- stituted ex ojfficio honorary members. Partly from the same motive, and partly from considerations already mentioned, such a form of constitution was adopted as might bring the scheme within the meaning of the Friendly Society act, and not only bestow on it the privileges conferred on these institu- tions by law, but also allow of its being publicly recognised by the Quarter-sessions as an establishment worthy of support.* Care was also taken from time to time to announce its progress in the public papers; and, with a similar intention, copies of the regulations were sent to various parts of Scotland, and a correspondence carried on with some public spirited individuals. • This statement, united with the considerations lormerly mentioned, will accoutrt f«)r the apparent splendour and complex nature of the parent esiablishment, which might, otherwise, perhaps, be considered ostentatious and cumbersome, by those who <' ther ftcm igmunc?, iiiaiiention, or prejudice, take a partial view of the sul>ject. 36 Meanwhile as the system was silently working its way in the pa- rish, and gradually rising to consequence, the time was fast ap- proaching when the experiment might be considered to be com- plete. It happened that one of the heritors of Ruthwell,* who was an extraordinary member of the Bank, was also a mem- ber of the Edinburgh Society for the suppression of mendicity, and this gentleman communicated to that most respectable and charitable body, a copy of the regulations of the Ruthwell in- stitution, together with such notices of its success as had been transmitted to him. This was during the currency of the year 1813, when the scheme had begun to make rapid advances in the parish, and to exhibit the most flattering proofs of its uti- lity. Some other circumstances, at this period, concurred to to give encouragement to the Society in Edinburgh for the adoption of a Savings Bank as one branch of their well-con- ceived system of benevolence. In several places, where a num- ber of labourers were employed in mines, manufactures, or other extensive works, it had occasionally been customary for ths managers of these works to retain part of the wages in their own hands, for the behoof of the workmen and their families in seasons of distress. This practice was known to have been attended, in various cases, with the most salutary effects. Nor were there wanting instances of a still nearer approach to the plan of a Bank for Savings. Some clergymen, in different parts of the country, had been in the habit of collecting the little earnings of their poorer parishioners, and placing them in situations of security and profit ; and there is one fact which requires to be particularly noticed, as it must be classed amongst those striking co-incidences which so frequently occur in the * Jamw Farquhar Gordon, Esq. W. S. 37 history of new invent ions. So far back as the year 1S07, aa institution, extremely similar to that of Rutlnvell, was esta- blished at West Calder, by the ingenious and intelligent mini- ster of that parish.* This society, which was founded nearly three years before that of Ruthwell, answered the intentions of its benevolent author within the bounds of his own parish, and it was not his object to increase the sphere of its operation, or make it more extensively known. In fact, the rules were ne- ver printed, and no public intimation was made of its establisli- nient, so that the founder of the Ruthwell Bank was not aware of its existence till the first edition of this Essay was ready for the press, and even then the only intimation he received of it, was through the medium of the report of the Edinburgh So- ciety for the Suppression of Beggars, where it is incidentally mentioned.f The circumstances I have stated seemed to establish the ex- pediency and practicability of a more general adoption of the scheme of Banks for Savings, and the founders of the society for the suppression of mendicity in the Scottish metropolis, were not slow to perceive and to avail themselves of the advanta- ges of an institution which had already borne the test of expe- rience. In January, 1814, therefore, a Savings Bank was open- ed at Edinburgh, which, although for the first twelve months its progress was by no means flattering, has at last assumed the most unequivocal appearances of success. This may be consi* * The Rev. John Muckcrscy. ■}■ This explanation I have thought necessary t» make, in ordcr^ to accooat for my silence in the forircr edition, with regard to the claim of priority which the West Calder Society certainly r.-sscsse?, and of which 1 was not aware till a tcr/ months aro. 38 iered as the most important era in the history of' the institu- tion. The weight given to the system by the high patronage it had now received, could not fail to add great force to the impulse already impressed on it, and the gradual but constantly progressive motion with which it advanced for some time in si- lence, was preparing the way for its finally bursting through every obstacle. In the mean time, the scheme began to gain ground in other quarters. The minister of Kelso,* with hh characteristic zeal for the welfare of society, had anxiously watched the progress of the institution from its first commence- ment in Ruthwell, and had taken the proper steps for receiv- ing regular information on the subject. Towards tile end of autumn, 1814, the author was induced to perform a promise he had some time before made to his friend, of paying him a visit, that he might assist him in making the necessary arrangements for the formation of a Bank for Savings in that town. The steps taken on this occasion were attended with the most flattering success, and the institution of the *' Kelso Friendly Bank" was the first event which introduced the scheme to general notice* His Grace the Duke of Roxburghe presided in the meeting at which it was founded, and the most respectable inhabitants of the town and neighbourhood became the zealous patrons of the infant establishment. Previous to this period, the gentlemen of Selkirkshire had taken into their consideration the propriety of instituting similar societies in their district, and, at a county meeting, had given directions for printing and circulating se- veral hundred copies of the Ruthwell regulations, together with an extract from a Dumfries newspaper, containing a detailed * Tie Rev. Robert Lundie. 39 account of the principle on which the scheme was founded. This publication began to be put in circulation during the au- thor's visit to Kelso, and, as the first fruits of its operation, he had the satisfaction, on his return, to be present at the erection of a Parish Bank in Hawick, which has since proved of the highest benefit to that manufacturing community. From this time, Banks for Savings began to be rapidly esta- blished on all sides, and before the end of the year, a very ge- neral interest was excited in favour of the system in every part of Scotland. This interest was greatly encreased by the pub- lication, about that period, of the second report of the Edin- burgh Society for the suppression of beggars, which was soon afterwards followed by a statement of the advantages of Banks for Savings, proceeding from the high authority of the Highland Society of Scotland. By these productions, not to mention the first edition of this Essay, which appeared in January, 1815, the advantages of the institution came to be universally known and duly appreciated, and, in the language of the third report of the Edinburgh Society, just published, it " has made more rapid progress, and has been more extensively adopted, in the course of a single year, than any similar measure ever attempt- ed for the comfort of the poor." Whilst the system has been flourishing so remarkably in Scotland, several attempts have been not unsuccessfully made to promote a similar object in the sister kingdoms of England and Ireland. To Dr Haygarth, of Bath, the credit is due, of having established a scheme of this kind, on an extensive scale in England, which appears to be well adapted to the iituation 40 and circumstances of the country * The plan has since been recommended by gentlemen of the first credit and respecta- bility. -|* Similar establishments have already been formed at Liverpool, Manchester, Exeter, Winchester, Southampton, Bristol, Carlisle, &c. With regard to Ireland, so far back as the year 1814, the author used some means to make the prin- ciples of the institution known in Belfast, as well as in other places of that country, to which he had access. Since this period, he has occasionally corresponded on the subject with a friend who resides in-that town, and he has now the satisfac- tion of stating, that a Bank for Savings is established there, which forms a most propitious commencement of the scheme, amongst this interesting part of our fellow subjects. In Dub- lin too, a meeting has lately been held of some of the highest and most respectable characters in Ireland, who have appointed a committee, for the purpose of considering the most effectual method of communicating the benefits of the scheme to every district of the country, a measure which will probably be fol* lowed by results of the greatest importance. * Dr Haygarth published his proposals in 1813. I am informed by that most wor- thy and venerable man, that Lady Isabella Dou;;ias, sister of the Earl of Selkirk, had, sometime before this period, suggested the plan of a Servants' Fund in Bath, on similar principles, which was carried into effect with some success. John Duncan, Esq. ha?, I understand, given an account of this scheme, in his " Collections relative to the Re- lief of the Poor," lately published See Appendix, where a farther account of Dr. Haygarth's scheme is given. f Amongst those gentlemen it may be proper to mention Mr Rose, who has already done so much good to the poor, by the judicious provisions of the Friendly Society Act, which was carried through Parliament by his zeal and influence, and which re- flects the highest credit on his enlightened benevolence. Whilst the present editioD was in the press, I bad the honour to receive a letter from this distinguished public character, in which he states, that he lias published " Observations on Savings' Banks,' a work which I regret I have not yet h?.d an opportunity to peruse. 41 It must not, however, be disguised, that neither England nor Ireland possess the same facilities for the introduction of the plan that are to be found in Scotland, In this latter country, there are some peculiarities in the character and ha- bits of the people, and in the nature of the ecclesiastical esta- blishment, extremely favourable to the propagation of the sys- tem, which do not exist, at least to the same degree, in either of the other divisions of the kingdom. But what must operate more powerfully than any other circumstance in retarding the success of the institution, is the system of poor rates so deeply rooted in England, with all its miserable train of idleness, meanness, and profligacy. On these discouragements it is pain- ful to dwell, and we may perhaps be permitted to take a more agreeable view of the subject, by adverting to the circumstances in which the operation of the poor laws has placed the monied part of the community — circumstances which cannot fail to animate their zeal in the cause, as they render it, with regard to such persons, not more a matter of benevolence than of personal interest. It would be delightful to record the most remarkable of those instances of disinterested benevolence which this scheme has called into action ; but where so many have cordially united in the same useful undertaking, it might be invidious to particu- larize. There is one gentleman, however, who has stood so prominently forward on this occasion, and whose ardent zeal has contributed so materially to the success of the plan, that it is impossible, even in this slight and imperfect sketch, to pass liim over in sUence, Those who know any thing of the his- tory of the institution, will readily understand that I allude to the Principal of the University of Edinburgh, whose character for moral worth and active virtue is too well known to require my eulogium. Dr Baird, having read the notices which were published in the newspapers, of the success of the Ruthwell Bank, applied to the author, in the month of Sept. 1814, for further information on the subject, and from that moment, de- voted himself to the propagation of the syslem, with an unwea- ried assiduity, which nothing but his characteristic regard for the best interests of society could have excited. Having had the happiness of carrying on a very active correspondence with him for several months after this period, the author has the best means of knowing, that the very remarkable impulse which, during the currency of the past year (1815), was given to the system — an impulse which has already diffused it over every quarter of Scotland, and carried it successfully into the less accessible regions of England and Ireland, was in a great measure owing to that gentleman'^s individual exertions and influence. Having now traced, very hastily, the first steps that have been taken for the establishm€nt of an institution, from which, without the danger of being considered too sanguine, I may be permitted to anticipate permanent and extensive advantages of a moral as well as a political nature, it may be expected that I should distinctly state the effect which the operation of the scheme has already produced, in increasing the industry and economical habits of individuals. On this subject, however, it is difficult t enter very minutely into detail, and the salu- tary influence of the institution is to be sought for, more in the gradual amelioration of the habits of the people, than in any sudden or striking incidents. — I can, however, say in general, that wian^ instances have occurred, in which persons in the 4d rank of servants, labourers, and mechanics, who had not laid up a farthing, and who would not, in all probability, at this day, have been in a better situation, have been induced, by the facilities and advantages held out by the Parish Pank, to com- mence a system of saving, by means of which they have, not- withstanding the recent establishment of the institution, accu- mulated greater sums than they ever before expected to be pos- sessed of. It cannot be desired, that I should particularize every such case which has come under my observations, — one or two intances shall suffice. Soon after the establishment of the Ruthwell Parish Bank, two of the author's parishioners, a respectable mechanic and his apprentice, having laid him under some obligation, for which they would accept of no pecuniary remuneration, he put a trifle into the Parish Bank in their names, sending each of them a duplicate of his account, together with a copy of the regulations. In a short time these individuals came to thank him for the present he had made them, and to add to the sum already placed for them in the Bank, a few shillings, which by dint of strict economy they had scraped together. By pursuing the system of saving which they had thus happily commenced, the sum that the master (who has a wife and family) had, in the commencement of the year 1815, accumulated in the Parish Bank, amounted to upwards of fourteen pounds, and the deposits of the apprentice (then a journeyman) amounted, at the same period, to no less than twenty pounds. The possession of these riches they attribute almost entirely the operation of the Parish Bank.* '*' This antcdotr, as well is the one unioediatelj succeedinf , wm mentioned >n th? 44 I shall mention another instance, not less worthy of notice, A young man, just about to begin a mechanical employment, had been able to save a few pounds of the government-allow- ance, to which he became entitled by serving in the local mili- tia. These he deposited in the Parish Bank, and having caught the laudable spirit of accumulation which this institution is calculated to inspire, he from that period became a regular de- positor ; and about the end of the year 1814, on lodging an ad- ditional suna, he took occasion to remark to the author, that his account amounted now to no less than thirty pounds ; declaring at the same time, that the greater part of this sum would have been entirely wasted, had not the Parish Bank given him the hope and the desire of acquiring a small capital. J In Dumfries also, notwithstanding the recent establishment of that Parish Bank, some highly gratifying proofs of the uti- lity of the system have occurred, and I cannot deny myself the pleasure of recording an anecdote, with which I happen to be ac- quainted, connected with that institution, as it places in a striking light the means which masters enjoy of doing good to their de- pendents, by judicious and well timed liberality. A gentleman, engaged in a flourishing concern in that town, being desirous of training the workmen employed in his business to habits of economy, lodged five shillings in the name of each of his journeymen and apprentices, in the Dumfries Parish Bank, on the first night in which it was open for the receipt of payments, and next day put into their hands the bank check-books, con- first edition of this essay. Since that period the little stock of the first of these individuals has continued gradually to accumulate, and the other, having'begun business for him- self, has been enabled by his savings to purchase an excellent set of tools for his workshop, and to comoicnce the world to much advantage. 45 taining the amount of the little presents he had so unexpected- ly made them ; giving them, at the same time, to understand, that they could not more acceptably show their gratitude, than by using every effort to increase their stock out of the earnings of their industry. The result was such as he had anticipated. The young men immediately began to vie with each other in the punctuality of their payments ; and, at the end of the year, out of eight persons who shared the bounty of their master, two obtained premiums from having been regular weekly depo- sitors, and all of them found their little stores considerably en- ereased. Of these two, one being an apprentice, is only in the receipt of eight shillings a week, and supports himself in lodgings without any assistance from his parents ; the other, a widower, out of the weekly allowance of a guinea, has deposi- ted not only upwards of 51. for himself, but also double that sum in name of an infant daughter, for whom he has also obtained the reward provided for regular payments. Of those who received premiums from the Dumfries Eank at the first anniversary meeting, one little boy, about ten years of age, particularly attracted the attention of the Direc- tors. — Out of the pittance of half-a-crown a week, which he re- ceives as an apprentice to a silver-smith, he has regularly lodged, at least one shilling every night in which the bank was open for the receipt of payments, and is now master of nearly three pounds, the fruit of his own industry. A small part of the money lodged in the Dumfries Parish Bank has been withdrawn, and it may be interesting to state, that in such instances as have come to my knowledge, the sums thu3 taken out bare been beneficially applied. On« poor man. 46 a carter, had, by small but frequent payments, been able tu raise his deposits to the amount of ten pounds ; and having had the misfortune to lose his horse, on which he depended for the means of subsistence, he found it necessary to have recourse to these savings, for enabling him to purchase another. This humble but respectable individual, sensible that, had it not been for the encouragement to economy afforded by the bank, he would have been destitute of funds for repairing his loss, and would have been unavoidably thrown out of employment, has recommenced his deposits, and has the satisfaction to see his little stock again rising to consequence, and gradually preparing for him a provision against any future disaster. Were it necessary, it would be easy to multiply similar in- stances ; but I shall only further observe, that a considerable part of the funds of the Ruthvvell Bank consists of money lodged by the depositors in single payments, being the little store which they had accumulated by the efforts of their in- dustry in the former part of their lives, or acquired by some other means. The author knows, that in almost every in- stance, the sums thus deposited were, before the institution of the Parish Bank, either lying in the houses of the owners with- out ever having been placed at interest, or intrusted to the care of private individuals, some of them of doubtful credit, with- out any proper security for their repayment. Those who hap- pen to have observed how often people in the lower classes are, under such circumstances, deprived of their little all by fraud, violence, or the failure of those who are indebted to than,* * In adverting to this remark, the friend to whom I ubmitted the MS, mentions the following affecting incident.—" I know s caw wher« two daughter*, with esem- 47 may have some idea of the value which such persons ouj;hi t» attach to a Parish Bank. SECTION III. Oil the propriety of uniting the Parish Bank system with that cj Friendly Societies. Amidst the exultation, which every good man must feel, when he reflects on the extraordinary success of a system that has fur its object the comfort and happiness of the great body of so- ciety, there is one consideration which has given some uneasi- ness to many reflecting minds. The institution of Friendly or Benefit Clubs has, for more than a century, been gradually gaining ground amongst that class of people for whose advan- tage the Parish Bank scheme was projected ; and, notwith- standing the discouragements which have attended its progress, and the failure of many individual establishments, we continue to see new societies springing up in all directions. The popu- larity of sudi associations is at once a proof and a cause of their utility ; and the speculative philanthropist, who without very plary affection, struggled fur years to save, for the benefit of their aged and infirm mother, a small sum from their yearly wages as maid-sctvants. They succeeded in accumulating each t:n pounds. The joint sum was placed in the hands of a person who soon after became bankrupt, and it was totally lost. I have seen the distreu oi the mother on the occasion, and the agony of her children, who have thus cruelly been deprived of the means of affording her support.— Every man may rtcoilcct simi- lir instances in his own neighbourhood." 48 serious examination into tlieir nature and advantages, should put forth his hand to destroy them, that he might erect a more favourite edifice on their ruins, would certainly exhibit more zeal than prudence. Unfortunately, hofVever, the ardour, which has gone abroad in favour of Banks for Savings, has had the effect of exciting some degree of hostility against this sister in- stitution. Friendly societies have been considered as the rivals instead of the useful coadjutors of Parish Banks, and, under this impression, the fatal effects which fraud, mismanagement, or mistaken calculations have frequently produced, have been exaggerated and misrepresented, till these accidental evils ap- peared inherent in the system. In a former part of this Essay, it has been stated that the calamities complained of arise, not from the Mse, but the abuse of the scheme, and in order t« prove the truth of this assertion, a few observations may be necessary. "^ In the first place it must be remarked, that the principle on which the plan of Friendly Societies rests is generally admitted to be, in its own nature, excellent. A very slight attention t» the subject, indeed, is sufficient to establish this point. The season of sickness or debility is that in which a man stands in need of the greatest number of comforts and conveniences ; unfortunately however, this is precisely the season when these comforts and conveniences are farthest removed from the reach of that humble but respectable class, who earn their subsistence '*' by the sweat of their brow." The poor are subject to the mis- fortune of being doomed to encounter hardships and privations at the very time when such calamities can with the greatest difficulty be borne. Their means of livelihood depending on their health and vigour, when these fail before they hare en- 49 loyed an opportunltj or made use of the precaution to lay up suitable provision, they are left helpless and destitute. The object of Friendly Societies is to remedy such evils, and in this respect they coincide with the design of Banks for Savings ; but they effect their purpose by a different method. A Friendly Society is in fact an insurance office for disease and old age. A certain monthly or quarterly premium is paid during the continuance of health, for which a specified allowance is made when this state is interrupted either by accident, sickness, or the decay of nature. Now it is supposed that where a great many individuals, in the vigour of life, unite in a scheme of this kind, the chances being greatly in favour of health, they may afford, by regular contributions, not only to make a seasonable allowance to such of their number as may be rendered incai)able of labour, but also to accumulate a considerable stock, out of which they may be able to make some provision for the exigen- cies of age. This, then, is the principle on which these Clubs are founded, and they possess two advantages to which I have alluded, but which it may be proper to mention again. One is, that the burden they impose is commensurate with the sea- son of health and vigour, when, if at any time, it is to be pre- sumed the labourer and mechanic are able to bear it. The other is, that, by a gentle violence, they compel those to be re- gularly employed in making a provision for their future wants, who would otherwise, in all probability, have neglected this prudential measure. In these respects, however, the superiori- ty of this establishment over that of Parish Banks may very fairly be doubted. But there is one point of view in which the Friendly Society scheme can claim a decided advantage. An individual belonging to the labouring part of the coramuni* 60 iy cannot expect, by making the most assiduous use of tke provisions of the Parish Bank, to arrive at sudden indepen« dence ; — on the contrary, it is only by many years of industry and economy ibat the flattering prospects held out by that sys- tem can be realised. But health is precarious, and an accident or disease may in a moment put an end to all the efforts of the most active and expert. It is under such circumstances that a very striking difference appears in favour of the scheme we arc considering. He who should trust to the progressive accumulation of his funds in a Parish Bank might now find himself fatally dis- appointed. If he had not been fortunate enough to realise ^ considerable capital before the sources of his subsistence were dried up, the illness of a few weeks or months might reduce him to a state of want and dependence, and cause him to experience the unhappiness of mourning over impotent efforts and abortive hopes. On the other hand, the man who has used the precau- tion to become a member of a Friendly Society, has made a comfortable and permanent provision against the sudden attack of disease and accident. The moment that he comes to ac- quire the privileges of a free member, which, by the rules of most of these institutions, is at the end of the third year after he began to contribute, he is safe from absolute want, and the regular manner in which his weekly allowance is paid him, enhances its value. Nor is this provision liable to any of those objections, which have been so strongly and so justly urged against the well-intended but mistaken system of poor-rates. Instead of degrading and vitiating the mind, its tendency is directly the reverse. The poor man feels that he is reaping the fruit of his own industry and forethought. He has purchased by his own prudent care an honourable resource against the most common misfortunes of life, and even when deprived af 51 the power to labour for a livelihood, the hoactt pride of ind^< pendente remains to elevate and ennoble his character. From this statement it appears very evident, that a Parish Bank cannot, in every instance, supply the place of a Friendly Society ; and that there are even daily occurrences in which the Utter scheme not only possesses advantages superior to the for- mer, but seems indispensible to the comfortable support of the lower orders. If these views are correct, they necessarily lead to the conclusion that the benevolent work in which the sup- porters of Banks for Savings are so laudably engaged, instead of being obstructed by the existence of Friendly Societies, can only be completed when the two establishments go hand in hand. I would therefore earnestly recommend to the serious consideration of those wh'o have at heart the interests of the lower orders, how far it might be desirable to form a union be- tween schemes, which seem so admirably suited to support and assist each other. Could this union be effected, whatever is deficient in the one institution would be effectually supplied by the provisions of the other, and a plan would be brought to per- fection, by which ample means and encouragements would be held out to the labouring classes of the community, for enabling them to maintain their independence, and even, under the pres- sure of disease and old age, to secure a comfortable subsistence by the exertions of their own industry. There are, however, certain objections to the Friendly So- ciety scheme, which, in treating of Parish Banks, I have al- ready incidentally adverted to, and which it may now be pro* per more fully to extmiat. 52 tst, It has been said, that the system is founded on erroneous principles, and must therefore, in the end, disappoint the hopes] of those who depend on its provisions. That establishments of this Icind are sometimes founded on very false principles, is not I to be denied ; and I am by no means desirous of palliating the I evil consequences which have arisen from the ignorance and mistaken views of those, who, without due consideration, have engaged in such undertakings. But the scheme is capable of being reduced, like the common principles of insurance on lives, to the test of calculation. On this subject, however, it is ne- cessary to observe, that in the present state of information, there is one material desideratum wanting to secure the calcu-l lations from error, which does not exist in the ease of life-in- surance. By means of the bills of mortality kept in various i parts of the kingdom, the chances of human life have, with great accuracy, been ascertained, and data, which may safely be depended on, have been acquired for founding calculations relative to insurances of this kind. But few tables have as yet been drawn up for ascertaining the chances of inability td labour,* and owing to this deficiency, no very accurate principles have been laid down for calculations respecting Friendly So- cieties, which, as I have already stated, are nothing more than ©ffices of insurance for such inability. A collection of tho transactions of a number of Friendly Societies in different partd of the kingdom, would be of the greatest use in supplying this defect ; and, with this view, the author has, for some time past, been making inquiries and gathering information on the subject, the result of which he hopes soon to have it in his * See Appendii. 53 power to lay before the public. In the mean time, It may be sufficient to state, that the communications he has already re- ceived relative to this question are highly flattering, and seem to prove, that Dr Price, in the data he assumes for his calcu- lations with regard to Friendly Societies, has made some mis- takes of considerable importance, the rectification of which will place the advantages of that system in a still stronger point of view. There can be little doubt, indeed, that the contributions commonly required in such societies are sufficient for enabling them to make good the usual allowances to free members for sickness. What, then, it will naturally be asked, has occasioned sa many disasters to these societies ? This question it is by no means difficult to answer, in perfect consistency with the prin- ciples already laid down. In the first place, it appears that many Friendly Societies have attached to them a Widows' Fund, on principles extremely false and ruinous. By attending to the calculations and statements in Dr Price's Dissertations on An- nuities, and comparing ihese with the provisions of the funds© successfully established in Scotland for the widows of ministers, it will be found, that the highest annuity which could with jafety be allowed to the widows of the members of Friendly Societies, would be something less than four times the amount of the yearly sum which these members contribute to the fund destined for the use of their widows ; that is to say, the yearly payment into the widows' fund, of owe pound, from the time when the husband arrived at the age of thirty till the period of his death, would entitle his widow to draw an annuity of four pounds. So totally, however, are the provisions of the Wi- dow 9' Funds attached to Friendly Societies in general miscal- Si ciliated, that the proportion between the contributions and the allowances, instead of being as one to /our, is frequently as one to ten, fifteen, and even twenty ! It is manifestly impossible that any institution can permanently subsist, the provisions of which are so totally inadequate. But this evil is greatly ag- gravated, in most instances, by the whole funds of the society being kept in one aggregate sum ; on which account, that part of them intended for the behoof of the members, cannot be se- parated from the other part, which forms the provision for the widows, a circumstance which has generally the effect, at last, of bringing both to ruin. What I have now stated tends not only to show the imprudence of connecting an ill-digested plan of a Widows' Fund with the Friendly Society scheme ; but teems to militate against the establishment of any scheme for behoof of the widows of the lower orders, even though founded on the most unexceptionable principles of calculation ; because the sum they might have it in their power annually to contribute to a Widows'" Fund, may probably be turned to better account by being paid into a Parish Bank, where it is not sunk, and oan be drawn out on any emergency. 2d, Another circumstance, unfavourable to the prosperity of Friendly Societies, is, that they cannot rely on a constant acces- sion of new members. Much of the success of an institution of this kind must depend on a constant influx of young and healthy contributors ; because it is evident, that its burdens must in- crease in proportion to the age and infirmity of those who have an interest in it. But, unfortunately, it frequently hap- pens, that when a society has stood for a number of years, and several of the first subscribers are advanced in life, young men spring up, who wi»b to have the credit of being tha fownders of 55 an establishment for themselves, or do not chuse to be under the control of their seniors. This gives rise to a new insti- tution, which materially injures the old, by depriving it of the means of recruiting its strength with young members. This misfortune might, in all probability, be effectually remedied, by a very simple addition to the Friendly Society act. Were the privileges of that excellent enactment to be confined to one society, in every parish which does not consist of more than a certain number of inhabitants, this might place a sufficient check on the capricious erection of new establishments, and secure ihe prosperity as well as the permanency of the old.* 3dy But, whatever be the excellence of the principles on which a Friendly Society may be formed, its funds are certainly, under the present system, liable to mismanagement. It must be con- fessed, indeed, that frequent instances of this kind do actually occur. Notwithstanding the additional security conferred on such institutions by the act of parliament already referred to, there can be no doubt that the imprudence or the knavery of those intrusted with the direction of their affairs, often brings these societies to a premature end. I have already explained the manner in which a similar disaster is guarded against in the constitution of Parish Banks, and the same kind of controlling power which is proposed in that case, might doubtless be equal- ly beneficial in the management of the sister establishment. It is therefore unnecessary to say any thing further on that sub- ject. Athy The expense of the mode of management practised in Friendly Societies, and the cabals to which the popular form •f * Set Apptndiz. 56 the institution sometimes gives rise, have also been urged as unfa^ vourable circumstances and formidable objections. Much ex- aggeration, I believe, has taken place on this subject, but what- ever truth there may be in the statements of the opponents of these establisments, the abuses complained of certainly are not the necessary consequences of the system, and the amended form adopted for Parish Banks seems sufficiently to counteract any supposed tendency of this kind. On the whole, I do not hesitate to say, that the scheme of Friendly Societies has already proved of the highest utility to the lower orders, and if established and conducted on principles more carefully digested, might be productive of still gteater be- nefits. I have suggested the idea of a union between these institu- tions and Parish Banks, and it may be proper to bestow a few words on this subject. I trust enough has already been said ta explain the kind of machinery by which tlie affairs of Parish Banks should, according to my ideas, be managed ; and there can be no doubt that the plan proposed is not less applicable to Friendly Societies, from which indeed it is chiefly borrowed. My proposal then is simply this : — That wherever it is practi- cable to organize a Parish Bank, the benevolent individuals, who interest themselves in that establishment, should also en- deavour to form a Friendly Society, on such principles as may- be both advantageous and permanent ; and that the committee of management belonging to the one institution, should also be employed to conduct the affairs of the other. This, for obviouj reasons, into which it does not appear at present necessary very minutely to enter, is probably as intimate a union as it would Ve prudent to form between these socictie.^. On this subject i may just mention, that were they united more closely, they might be materially impeded in their operations. Some indi- viduals, who might wish to become depositors in the one, might not find it convenient or agreeable to take advantage of the provisions of the other ; and the strictness in inforcing fines and forfeitures, which the Friendly Society scheme absolutely requires, might not always be compatible with the freedom from all restraint, which is one of the characteristic excellencies of the Parish Bank system. To a society, hovveverj so constitu- ted as to carry on both schemes as two separate and distinct branches of the same establishment, many advantages and faci- lities would accrue. Not to speak of the saving of time and expense which would result from employing only one set of managers, I would observe, in the first place, that the compuU iion, which the laws of a Friendly Society exercise over its mem- bers with regard to regular payments, would answer precisely the same purpose as the provision of a similar kind in the regiilations of the Riitlnv«U Parish Bank, and would entirely obviate the necessity of that provision. The members assem- bled in their monthly or quarterly meetings, would have an op- portunity of placing, in the Parish Bank, any little balance of savings which might remain in their hands, after discharging their debt to the Fnenf//j/ branch of the institution ; and the ne- cessity which impelled them to be regular in their payments to the one, would operate on their memory with regard to the other also. Again, a poor man has been prevented, perhaps, by some accidental circumstance from saving, during the last month or quarter, a sufficient sum for enabling him to pay hi^ contributions to the Fricndlj/ branch ; but in the Bank branch, •he ha«: enough to supply the deficiency, and he draws from the* I 58 one, that he may have it in his power to fulfil his engagements to the other. I formerly stated, that one material objection to the Friend- ly Society system is its unaccommodating nature, fixed down, as it necessarily is, to one uniform rate of payment, and re. <|uiring from the poorer class, larger sums than they can some- times easily afford to pay, whilst it rejects all additional con- tributions from the more wealthy. The inconvenience arising from this circumstance might, in a great measure, be remedied by the proposed union of the institutions. As the Bank branch would always be open for the reception of any surplus savings which the members might scrape together, it would be desira- ble that the contributions to the Friendly branch should be kept so low as to be easily within the reach of a poor labourer ; per- haps they should not exceed Is. or at the utmost. Is. 6d. in the quarter. This low rate of payment would be produc- tive of no material inconvenience, as the allowances to those incapable of labour, which such contributions could afford to yield, though not perhaps sufficient for their entire relief, would still be considerable, and might, if necessary, be made up by their occasionally drawing on their accounts in the Savings fund. It is easy to conceive, how, in many other instances, a kind of action and re-action would thus take place between the two systems thus united, which might be productive of the most salutary effects. I throw out these hasty observations rather as hints for the eonsideration of the benevolent, than as the outlines of a fully digested plan. On some future occasion I may probably recur to a subject in which I feel the most lively interest, should this 59 not be rendered unnecessary, as I earnestly wish it may, by the labours of some abler pen. Meanwhile, I cannot deny myself the pleasure of stating, that a scheme something like this is actually put in practice at West Calder ; and that in the parish of Inveresk, the intelligent managers of that Parish Bank have a similar establishment in view, whilst measures are taking for the same purpose in the parish of Ruthvvell. SECTION IV. Concluding remarks. The system of banks for the savings of the industrious has now received such a powerful impulse, that the only thing which seems necessary for diffusing its benefits universally throughout the United Kingdom, is the continuance of those liberal views by which it has hitherto been dbrected, and the adoption of such prudent measures as may prevent the interference of per- sonal jealousies and selfish passions, which, to a certain extent perhaps, attach to almost every human undertaking, and often intrude even into the hallowed ground occupied by benevolence. On a subject, so new that experience is still only a doubtful guide, and so important that to be a successful promoter of the cause is an object of laudable ambition, it cannot be sur- prising that differences of opinion should exist, or that indivi- duals should be solicitous of introducing to general notice such improvements as may honourably associate their names with the institution. — Such occurrences are not only to be expected but desired. No new schema ever rose to perfection at once. eo vThe suggestions ofingenully, and the test of actual practlee, are necessary, in order to correct the first cnide and imperfect efforts of those who engage in any recent and untried undertak- ing. But, in the delicate task of rectifying the errors of others, the exercise of candour and forbearance are of the utmost mo- ment. Where the strictest attention is not paid to this rule, very unpleasant consequences may be the result. Want of inge- nuousness on the one side naturally provokes retaliation on the other, and a spirit of hostility may be excited, where it is most of all desirable to encourage sentiments of harmony and brotherly affection. Deeply sensible of these truths, it is not without the utmost diffidence, that the author presents the fore- going remarks and statements to the consideration of the pub- lic. If he has been induced, on a few points of inferior im|x>r- tance, to differ from some of the enlightened friends of the sys- tem, he trusts that he will appear to have done so in the spirit of liberality. He has been influenced by considerations of uti- lity, erroneously, it may be, but certainly very strongly im- pressed on his mind ; and he may be pardoned, perhaps, if he should seem to feel too anxious a solicitude for the interests of an institution, which he views with the partial regard of a pa- rent, and the success of which is the subject of his most grati- fjing reflections. If, in looking back on what has already been done for pro- moting the prosperity of Parish Banks, there is ground for sa- tisfaction, it must not be forgotten that this satisfaction arises, more from contemplating the prospect they hold out of future benefit, than the good they have already accomplished. The establishment is at present but in its infancy, and though its astonishing progress ^ives a very flattering promise, yet much 61 remaing to be done, and many years must pass away, before it can arrive at the full extent of its operation. It has even ob- stacles and dangers to encounter which it would be less painful to anticipate, were it possible to provide an effectual remedy ; l)ut all the precautions of human prudence, caunol entirely pre- vent the abuses which arise from the prevalence of prejudice and ignorance, nor give security agamst the unforeseen calami- lies of accident or of fraud. Every thing, however, must depend on the activity, the zeal and the intelligence of those under whose management the sys- tem is conducted, and I cannot conclude without earnestly re- commending it to the continued and encreasing patronage of the public. Much may be done, with this view, in various ways, by persons in all the different stations of life. The rich may support it by benefactions, the poor by their example ; the prudent may promote its prosperity by their advice, men of rank by their influence, the active and skilful by their judi- cious exertions. But, perhaps, it is in the power of no descrip- tion of persons more essentially to advance the interests of the institution, than heads of families, and men engaged in trades and manufactures which require them to employ a number of dependants. Were it possible to persuade such persons of the immense importance of the object in view, we might from this circumstance alone indulge the most flattering hopes ; for it would be easy to point out to them a method, by which, with- out any expence or material inconvenience to themselves, they might have the satisfaction of being of incalculable service to the cause. The plan I allude to is that of a regulation, formal- ly made by common consent, and strictly adhered to, that, in hiring workmen and servants, an agreement sh-all be entered in- 62 to with them for paying part of their wages, not directly into their own hands, but into the nearest Parish Bank in their name. To render my meaning more plain, let us suppose, that a workman is hired to receive wages at the rate of fifteen shil- lings in the week. In this case his master might agree to pay hina, in ready cash^ thirteen shillings a-week if burdened with a family, or if unmarried, perhaps only ten shillings, and to deposit the remainder in his name in the Parish Bank, regularly as it should become due. A similar agreement might be made with domestic servants, apprentices, and other dependants. To pre- vent the possibility of fraud in the master, or the appearance of hardship or restraint, it would be necessary to commit the custody of the Parish Bank receipts to the individuals in whose name the deposits were made, so that they would always have it in their power to know the amount of their savings, and to draw out the whole sum or any part of it, if they were so in- clined. Under these circumstances, hov.-ever, there can be no doubt, that, in general, they would become too sensible of the advantage of the transaction to themselves to break in on this accumulating fund, without some pressing motive. The workman who should see himself at the end of a year, by th© operation of this principle, possessed of thirteen pounds, (which would, by the above supposition, be the annual savings of an unmarried man,) or even of the third part of that sum, fvould be incorrigibly thoughtless and improvident were he not strongly incited rather to encrease than diminish his little stock. The sum thus acquired would be doubly dear to him, from its being the fruit of his own labours — he would see that the con- tinuance of these labours must place the flattering prospect of comfort and independence at no great distance before him — a virtuous emulation would naturally arise between him and his 63 fellow workmen or comrades, and his character would quicklj be formed to habits of sobriety, diligence and economy. If the mere consideration of the benefit, which would be con- ferred on society by such simple and unexpensive means, is not sufficient to give rise to a general conbination of the kind I have mentioned, there are other motives which cannot fail to produce, on some minds, a more powerful effect The great complaint of masters and overseers is the idleness and intem- perance of those who are under their care. It is well known, that, in many manufacturing districts, the majority of the workmen regularly spend at the alehouse, the first day of the week, and very often the second and the third also, returning to their employments only when compelled by necessity. Those mas- ter manufacturers and tradesmen who have experienced thi» evil are too well acquainted with its extent, and with the los- ses and disappointments which it occasions to themselves, not to be strongly urged, by a regard to their own interest, to en- courage any scheme which holds out a rational prospect of checking it. It is, therefore, worth their while to consider, how far the preceding observations are correct ; for, if there be any probability that the Parish Bank system may be productive oi the effects I have ascribed to it — if it really has any tendency to put an end to the irregular habits of the labouring part of the community, and to make them more sober and industrious, such persons must be, in a more than ordinary degree, indiflo- rent to the prosperity of their business, if they neglect to use all their iniluence in promoting an object so desirable. I cannot omit this opportunity of adverting to an objection, which I have heard stated against the moral tendency of th*- 6% scheme I have been endeavouring to recommend. ' It has been alleged, that, in guarding against the idleness and profligacy of the lower orders, we are attempting to erect a system calculated to excite and to cherish the opposite vice of selfish niggardli- ness. Were this objection raised against an institution, the tendency of which was to increase the parsimony of those, wh© are already blest with independent fortunes, or even with a com- petency, no person could be more ready than myself to admit its force ; but it must not be forgotten, that the Parish Bank is intended for the benefit of the lower orders, in whom indus- try and frugality are not only themselves moral habits of the first class, but also the foundation of many kindred virtues; There is something noble and affecting in the struggle which a poor man makes to preserve his independence, and to rise su- perior to the difficulties and discouragements incident to his situation. The end he has view, and the privations he must undergo before he can attain that end, are such as must attract the applause and sympathy of every good man. When, from the scanty pittance which he has earned by his honest indus- try, and which, though it sufBfes to supply the common wants of nature, is inadequate to procure the conveniences or eomforts of life, — when, from that scanty pittance, he is able, by the exercise of a virtuous self-denial, to lay up a provision for the exigencies of his family, he exhibits a pattern of prudence and manly resolution, which would do honour to the highest station. The sentiments which give rise to this conduct are nearly allied to th6 best feelings of the human heart; and the man who can, with such becoming fortitude, deprive himself of present indulgences for the sake of future independence, will not readily stoop to the suppleness of duplicity, or the baseness ®f fraud. The fact is, that the most careful and industri- 66 ous are universally the most trust-worthy ; and he who has been accustomed to look forward with a steady eye to distant consequences, is not slow in discovering that honesty is the best policy. Feeling the comfort and the dignity arising from vir- tuous conduct, he acquires a more elevated way of thinking and of acting, and insensibly becomes superior in mental at- tainments, as well as outward circumstances, to the thought- less crew with whom he is surrounded, and who were formerly perhaps the chosen companions of his dissipated hours. Nor is the state of his feelings less favourable to religious impressions. A love of order naturally leads his affections to the " God of order." A habit of reflecting on the changes of life, teaches him to repose, with confidence, on the wisdom and goodness of that Being by whose will these changes are regulated, and his mind, trained to look beyond present enjoyments towards those that are future, is evidently in no improper frame for regarding, not so much " the things that are seen and temporal,"" as those that are " unseen and eternal." When we contrast this character with that which legal as- sessments for the support of the poor are calculated to form, we shall see the moral tendency of the scheme in a still more strik- ing point of view. Compulsory enactments, in whatever way they have been reduced to practice, have never failed to pro- duce an effect highly detrimental to the best interests of society. They have tended, not merely to impose a heavy and impolitic tax on industry, for the encouragement of idleness and dissipa- tion ; but, what is scarcely less injurious, they have contribut- ed to destroy those feelings of reciprocal affection between the lower and the higher ranks of life, which form the strongest and Biost delightful bond of society. When good offices arc K 6G voltintarily bestowed, a moral tie is constituted between the giver and the receiver : — in the one is excited a sentiment of gratitude, in the other a feeling of complacency and kindness ; and by cherishing these dispositions, the hearts of both are made better. But when law interferes — ^from that moment this mu- tual and endearing tie is destroyed. The one class demand with insolence what the Legislature gives them a right to ex- tort ; the other bestow with reluctance what they are sure wilV be received without thankfulness. Compulsory benevolence is, in fact, a contradiction in terms ; and the attempts that have been made to reconcile this contradiction have proved oppres- sive to one part of the community, and destructive of morality to the other. Another demoralizing effect of poor rates is the prostration of that manly pride and independence of mind which spurns the idea of subsisting by the charity of others, and, amidst circumstances of discouragement and difficulty, relies, under providence, on its own resources. In England, nearly one-fifth of the inhabi- tantsj. we are told, are supported, either wholly or in part, by public charity. This appears almost incredible to a native of those districts of Scotland which have not yet been visited with the calamity of poor rates. In this quarter, the dread of be- coming a burden on the parish is so strong, as in some instances to degenerate even into a vice ; but it is a vice of that generous and noble kind which it is scarcely possible to condemn. Our Scottish clergy are well acquainted with the delicacy and ma-- nagement,. frequently necessary for inducing persons, in the most destitute circumstances, to receive aid from the funds of the poor ; and instances have even occurred, in which individuals have chosen, rather to die from want, than submit to the disgrace of accepting relief from public «b«ritv .* 67 A very gratifying display of this independent spirit took placro tempore. Vlth, Should any number of individuals, not fewer than thirty, who have arrived at the age of fifty-six or upwards, whether depositors or not, be desirous of sinking, in the funds of the bank, any sum not less than twenty pounds nor more than an hundred pounds, on an annuity for life, they shall receive at the rate of 10 per cent, per annum on the amount of the sum they may respectively pay into a common fund for this purpose j — it being understood that the provision of this rule shall under no circumstances be allowed to encroach on the privileges and advantages of the deposit fund. 18/^, The auxiliary fund is to be applied first to the payment of ex- penses of management, and next in affording certain premiums for tht encouragement of regular weekly deposits, as follows, viz : — Each mem- ber who shall have regularly deposited at the rate of not less than one shilling every week, shall, for the first year be entitled to a premium of sixpence j for the second year, to a premium of one shilling j for the third year, to a premium of two shillings j for the fourth year, to a pre- mium of four shillings 5 and for every subsequent year, to a premium of six shillings j all which allowances shall be over and above the regular interest to which the said member shall have a right, by the other provi- sions of the institution : It being understood, however, that should the depositor at any time fail for four successive weeks to make regular pay- ments, it shall be optional to the committee, or general meeting, to grant or to withhold the above-mentioned allowances, and that, if the state of the funds shall not admit of such large premiums, lower rates shall be fixed by the general meeting. After this expenditure, should the auxiliary fund admit of further application, it shall be employed in increasing the allowances to those who shall have been regular weekly depositors for six years or upwards, with reference to the state of the said fund, and to the time the said members shall have been regular depositors. Should the auxiliary fund be in a state sufficiently flourishing, occa- sional loans may be made, to enable deserving members to repair some CRsual misfortune, or to prosecute their lawful business with advantage j 75 provided always that sufficient security be found by the said members for repayment, with interest at 4 per cent, of the sums that may be thu? advanced to them. This repayment to be made by such periodical instal- ments as may be agreed upon at the time of making the loan, or may be afterwards modified. NO. II. Extract from the Preface to the Rules of the Dumfries Parish Bank, The following table will show the ratio in which regular weekly deposits, in the Dumfries Parish Bank, of two shillings, will accumulate, provided at the beginning of each year an extra payment is made to raise the accumulated sum to even pounds, which secures the highest benefit. 1st Tear. 2d Tear. 3J Tear. Ath Tear. 5 4 2 11 6 13 6 11 4 U 8 l-l 10 7 n 4 3^ 14 li 2 23 4 5i 1 1-1 4 11 6 Interest Extra deposit Annual amounts. 6 1| 12 3^ 18 5 25 1 5th Tear. 6th Tear. Ith Tear. SM 7 ear. 30 4 1 1 7 ]| 6 3 37 4 21 1 14 1^ 6 16 45 4 4.J 2 2 1^ 6 7 6 53 4 OJ 2 10 1| 6 Interest,.. Premium Extra deposit Annual amounts. 32 21 40 44 48 0^ 56 2 9th Trar. 10th Tear. 11/// Tear. 12th Tar. CI 4 2 2 18 li 6 12 70 4 34 3 7 11 6 3 79 4 5; 3 16 1^ 6 14 89 4 7-i 4 6 l| G 4 Interest ■ . .•.. . Premium Extra deposit Annual amounts. 65 3^ 74 54 84 7^ 94 9 , On inspccling the above calculation, it will be found, ibat of the sum ef 941. Os, 9d. to which a weekly contributor of two shillings would in twelve years, be entitled, only 66l. 19s. 6d. would be actually deposi- ted by him, the remainder, viz. 271. Is. 3d. is profit, arising from the annual premiums, and from compound interest. A member continuing to make regular deposits to the above mentioned weekly amount, would in twenty years, be possessed of 1961. Os. lid. •, in tvventy-five years, of 2841. Os. 7ld. •, in thirty years, of 3951. j in thirty-five years, of 5371. Os. l^d. ; and in forty years, of 7191. Os. lOd. Of this last sum, 2231. 10s. 6d. would be the actual earnings of the depositor, and the remain- der would consist of 111. 3s. 6d. for yearly premiums, and 4841. fs. lOd. for interest, making in all the very large sum of 4951. 10s. 4d. of profit. This is given as a specimen of the manner in which regular payments of small sums accumulate, according to the principles of the Parish Bank ; and the astonishing result must operate as a powerful stimulus to economical habits among the industrious poor. NO. in. Account of the Rules of some Banks for Savings, which differ from those of the Dumfries Bank. 1st, Edinburgh Savings Bank. — The object of this bank is to con- duct the business as much as possible upon the same principles, and by the same rules, as is done in an ordinary bank in the country, which receives money at interest, and pays it out again in such portions as are required. No extraordinary encouragement is given for accumulation. Contributors do not become stockholders j they have no right to hold meetings for the election of office-bearers, or to enquire into the mode of management and state of the funds. Whenever the sum deposited amounts to ten pounds, the owner is required to withdraw it, that it may be deposited in a public bank, and a new account is opened for the small sums of his savings. 2d, Kelso Friendly Bank Society. — This bank allows a depositor t« lodge a sum not exceeding five guineas a year j 3 per cent, is allowed f«r the shortest time each pound remains in the bank j 4 per cent, after 77 It his been lodged six months j and 5 per cent, compound interest aftei it hns been lodged three years. The management of the society is com- mitted solely to the charge of those who give a donation to the institu- tion of not less than a guinea. The stock arising from such donations, with its accumulated interest, forms a fund to guarantee the payment of the stipulated rates of interest. At the end of eveiy five years, the pro- fit accruing from the surplus interest, after deducting the necessary ex- penses, is to be divided among those depositors who shall have money in the bank, during the currency of these years, in proportion to the amount of their respective deposits. 3^, Hawick Bank for the Savings of Industry. — This institution dif- fers from that of Dumfries, principally in the following provisions with regard to re-payments. If the money be demanded at any time within the year, from the commencement of the account, no interest is allowed j ifter one year, simple interest is allmved for three years j from which period, compound interest is allowed. At the end of every seven years, a dividend is to be made of the profits of the first five of these seven years, to such depositors as shall have made regular deposits during the whole period, in proportion to the amount of their respective deposits, A similar dividend is made by the Jedburgh District Bank. Ath, Gatehouse-of-FIeet Bank for Savings Triendly Societij, — This in- stitution is nearly the same as that of Ruthwell, except that it creates an an auxiliary, or, as it is called, a mutual relief fond, by deducting an- nually a penny for each pound of stock belonging to every individual member, and placing the sum thus raised, together with the voluntary contributions, surplus interest, &c. to the credit of that fund. The mu- taal relief fund ^ after defraying the expenses of management, is applied " to the mutual relief and maintenance of all and every the members of the society in old age, sickness, and infirmity j or in aid of the widows and children of deceased members \ or of those who are under such other circumstances as may require pecuniary assistance, the amount of which allowances shall be determined by the court of directors, according to the stale of the funds, and the situation of the individual craving relief." The principal design of this regulation is to bring the bank more cer- tainly under the provisions of the Friendly Society act, and thus secure for it the privileges granted by law to such institutions. bth^ Provident Institution of Batli.—'lhh society, which was founded in January, 1815, receives deposits from one shilling to any amount; a,nd by invcsling them in the public funds, secures to the depositors a 78 wrlain interest of four-fifths of thtir dividends, and a proporlionable share of the surplus of the other fifth, Avhich sliall remain at the end of five years, after payment of the incidental expenses. The principles of this establishment are thus stated in the first year's report. " 1st, The actual and immediate investment of the deposits in government securities. 2i/, The certainty which each depositor has of receiving four-fifths of this dividend, together with his contingent interest in the one-fifth re- tained. 3(/, The safety of the trustees and managers, in whose names and to whose management the deposits are invested and confided. 4/^, The provision made for receiving deposits on behalf of absent, infirm, disabled, or infant persons," This report affords ample evidence that such institutions may be adopted with success in England. In Bath, there are few manufactures, and no trade beyond the actual supply of the inhabitants. Its immediate vicinity contains but a small propor- tionate number of agricultural labourers, and its neighbouring manufac- tories are exclusively connected with the towns to which they adjoin, and to which the inhabitants resort. Yet under these circumstances, so obviously unfavourable to the collection of large and frequent deposits, the managers have, since the 5th of February, 1815, received lodge- ments to the amount of more ihanjve thousand pounds. It must be ob- served, that there is no limitation with regard to the amount of indivi- dual deposits, as is necessarily the case in those institutions which invest their money at 5 per cent, in the public banks of Scotland. The re- porters adverting to the situation of the English country banks, which cannot offer the same security as those of Scotland, earnestly recommend to other establishments of the same kind, " the practice of investing de- posits in government tecurities only, as essential to the safety of all par- ties, and productive of good consequences of such a description and ex- tent, as cannot be obtained by any other mode." It appears, indeed, that some peculiar advantages belong to this mode of investment, ever» as applicable to Scotland, and it might be worth while to enquire whe- ther or not these advantages are such as would in practice overbalance the inconveniences.* * JuJt as this last sheet was ready for the press I received a cop}' of Mr Rose'* " Observations on Banks for Savings," containing many useful remarks, and giving a detailed account of the Southampton institution, which differs considerably from that toablished at Bath. Ont mistake, arising no dtnibt from the hurry of publication, it 79 f,th, Lh€rf)Ool Mechanics^ Servants, end Lahourevi* /•>/«^ vested in the Navy 5 per cents, at such prices as to yield more than 5 per cent. When, however, we found that the fund was likely to increase to a very considerable extent, and that, as we were personally responsible for the money, we should always be liable to the lluctuation of stock, and might, upon any sudden disaster, have a run upon us, which would compel us to sell out, perhaps at a considerable loss, it was determined in future to limit the receipts Into the Mechanics' Fund to 51. for one individual, and to establish a higher bank, under the name of the Pro- vident Institution, into which the depositors might remove their money when it reached that sum (51.), and where it might be allowed to ac- cumulate to any amount. The principle of this bank is, that every per- niay be proper to correct. Mr Rose represent? me as "one of the early promoten of institutions for saTJngs called Manages" which, in a note, lie dcscribfs to partake of the nature of " Insurance Schemcj." I believe I was the first to take notice of such iostitutions which I did in a little Tract on Parish Banks, published lomc limt ajo, but certarnlj I never recooiRiendrd them as worthy of wpport. 80 son becomes a proprietor of stock to the amount of his depoKit, and shall receive the interest annually, after deducting ^^j^th for the neces- sary expenses of management. This -yV-h, together with the farthings, (which are not paid,) is reserved for the above purpose, and should any- surplus remain at the end of live years, it is to be divided amongst the then existing proprietors. One or more even pounds will be at any time received j but the fractions of pounds must always accumulate in the lower fund. By this means we have reduced the Mechanics' Fund to about 4501. •, the remainder has been transferred to the Provident In- stitution, and abaut 12001. have been deposited in addition to it since July h^t." No. IV. Abstract of the law relative to Friend! j/ Societies y and Cursory Oh- scroations on these Institutions, together with Tables, showirig the state of the Male and Female ^cieties of Kutkwell. ABSTRACT OF THE ACr RELATIVE TO FRIENDLY SOCIETIES. The following is an accurate account of the provision which the law has wisely made, in order to favour the establishment and promote th^ interests of associations for such benevolent purposes. (33d Geo. II L eap. 54.) 1st, Any number of persons may form themselves into a society for the purpose of mutual relief, and may raise amongst themselves a fund, make rules, impose fines, &c. j but, in order to obtain the benefit of the law, they must get their rules regularly confirmed and registered at the Quarter Sessions, which is done without any fee to the clerk, or other expense. 2dly, No confirmed rule or regulation of the society can be altered or Bcpealed, unless at a general meeting, convened by public notice in writ- ing ; (which notice is to be signed by the clerk, in pursuance of a re- quisition from at least three of the members, and publicly read at the two previoiis usual meetings) ; and unless the alteration or repeal shall be made by three four iks of the members present. A committee^ liew- 81 «ver, appointed for the purpose, is competent, under the sime precautions, to make the proposed change j which, in order to be valid, must, like the original rules, be confirmed at the (Quarter Sessions. 3dly, The society is authorised to appoint officebearers, to take se- curities for offices of trust, to nominate a standing committee, and com- mittees for special purposes, (which are to consist of not less than eleven members,) and to prosecute before the Court of Session, the treasurers, trustees, &c. should they misapply or embezzle the society's money, or refuse to refund, or to render an account of their transactions. 4thly, No fee is to be taken for any proceeding of the society before the Court of Session, the Lords being obliged to assign counsel learned in the law to advocate their cause ; and no stamp duty is chargeable for any such proceedings, or for any of the society's bonds. 5thly, Cn the death or bankruptcy of an office-bearer, who has mo- ney or effects of the society's in his hands, the society's debt is to be dis- charged in preference to any other demand whatever. 6thly, If any member think himself aggrieved by the society, he may complain to any two justices of the peace, who are authorised to take evidence, and determine the matter without appeal, unless the rules «f the society direct disputes to be settled by arbitration, in which latter case, the award of the arbiters shall be final. Ithly, The consent of five-sixtiis of the members, and persons intitlci t» benefit from the funds, is necessary before the society can be dissolved. CURSORY OBSERVATIONS. "Sir Frederick Eden, in his work on the state of the poor, deprecates the idea of any further legislative interference with regard to Friendly Societies, and gives as 3 reason for this, the alarm which such interfer- «ncc has already occasioned. It is with great diffidence that I venture to dissent from this most respectable authority j but so far as my ovva ©bservatlon reaches, I am convinced that the lower orders have received the enactments in favour of Friendly Societies as a very valuable boon, and that a few alterations in the law on this subject might be attended with the very best effects. I am perfectly satisfied, however, of the im- policy of any compulsory regulations. All the length that it is prudent for parliament to go, is merely to bestow peculiar privileges and immu- nities on societies establiihed on a particular plan, and managed in a certain vay. The act at present in existence is, in its principle »«!- 82 mirablc, and, so far as it goes, in its details unexceptionable. There are two circumstances, however, which do not appear to have been sufFl- ciently adverted to in the formation of this bill. One of these I have already mentioned, when speaking of the propriety of uniting this insti- tution with that of Parish Banks : — I mean the necessity of keeping up the funds of the society by the constant accession of young members j connected with the probability that new societies may be formed to the prejudice of the old. The remedy which I proposed for this evil was, to confine the benefits of the Friendly Society Act to one establishment in each parish, of a limited extent. The other circumstance to which I allude is the defective principles on which many societies are founded, I can think of no plan for removing this evil, so effectual as that of de- nying to societies, established on erroneous calculations, the benefits of the act ; and, with this view, detailing In the bill the principles on which such clubs shall be founded, in order to entitle them to the support and sanction of government. The act, indeed, in its present form, has at- tempted to provide a check on societies of this kind, by requiring that their rules shall be submitted to the review of the quarter sessions of the district. But it is well known that this check is totally nugatory,— no pains being taken by these courts to ascertain whether or not the provi- sions of the societies that come under their Inspection are adequate to the purposes for which they are instituted. Should any alteration of the law to the effect proposed take place, it would be proper to form tables of calculation for adjusting the provisions of societies under every sup- posable form, and to require that, with the assistance of these tables, some competent person should be employed to examine the adequacy of the regulations. According to the report of this calculator, the sanction of the quarter sessions should either be granted or withheld, and when it should be found necessary to deny that sanction, the clerk of court should be required to specify to the parties, in writing, the reasons on which the sentence was founded. This rule would operate as a pre- ventive without being an express prohibition, and though it might pos- sibly be viewed with some degree of jealousy at first, by those for whose benefit it was framed, would in the end, I doubt not, be highly benefi- cial. It is to be lamented, however, that at present there are no proper data on which just calculations can be formed with regard to sickness. The tables hitherto published are by no means sufficiently numerous, nor do they embrace a term of years sufficiently long to afford the ne- cessary information. The only attempts of this kind which I have beea 83 fortunate enough to meet with, are a few imperfect notices contained in Mr Acklanil's pamphlet, and in Sir Frederick Eden's work already mentioned. Having been for sonae time past engaged in making in- quiries on this important subject, whijch are not yet finished, I subjoin tables relative to the state of the Male and Female Friendly Societies of Ruthwell, to serve rather as a specimen of the kind of information I am endeavouring to obtain, than as data from which certain conclusions can be drawn. It would be extremely desirable that benevolent indivi- duals would use their influence with Friendly Societies, in order to re- move the difficulties which lie in the way of this attempt. The scanty tables which Sir F. Eden has published, were not collected without considerable expense and trouble, and he complains that " the per- sons who are entrusted with the management of the funds of a box-club, are even more reluctant than parish officers to gratify that curiosity which solicits information concerning receipts and disbursements." NO. V. Tables txhihiltng a view of the operations of the Male and Femak Friendli/ Societies of Ridhivell, frovi the first institution, to the year 181.5, inclusive. The Male Friendly Society of Ruthwell was founded in the year 1795. Its provisions are as follow, viz. :— For the Members^ Fund. Entry money, originally 5s. ; now 10s. — Quarterly contributions. Is. 6d. — A member becomes free, /. e. entitled to the benefit of the fund, after being in the society 3 years j from which period he receives, when incapable of labour, 5s. per week during the first 12 weeks, and 2s. 6d. after that period, till recovery. On the death of a free member his fel- low-members contribute sixpence each, out of their own pockets, for hi« funeral expenses, and a s«m equal to what is thus collected is added out of the fund. If the whole sum thus raised do not aaaount to 3l., the d«- 84 f:cicncy is made up out of the fund 5 If it exceed 51. the surplus is re- turned to the fund. On the death of a member's wife, the half of the above sum is raised in the same manner. For the Widows'* Fund, Quarterly contributions, ten-pence. All fines go to the increase of this fund, which may perhaps be equal to 2d. per quarter more for each member. On the death of a member his widow receives yearly — If he has been a member from 3 to 6 years, £l O Do. 6 to 10 do 2 10 Do. more than 10 do 4 If children survive their mother, -whether she was alive at the death of her husband or not, they receive the same allowance as she would have been entitled to, till the youngest child has completed its twelfth year. The Female Society was founded in the year 1801 ; its provisions are precisely the same as those of the members' fund of the Male Society, already stated, except that the entry money is only 3s, 6d. There i-^ n© fuod f©r widowers. (No. 1.) FROM I^. Members cacli i/i'ar COLLECII Years Total Members. Free Members. Sick Fu«d. Wid. 1796 38 18 10 6 5 1797 41 12 17 6 1798 40 21 13 10 4i. 7 1799 48 38 15 9 \n 8 1800 60 57 16 16 K 9 180] 1:0 35 59 6 8 14 1802 115 45 41 18 5 22 1805 H5 50 3Q 7 3 25 1804 116 98 59 19 22 1805 119 94 59 14 \n 22 1806 118 97 51 8 2 25 1807 120 104 41 7 2 21 180S 122 109 49 19 4 27 1809 120 109 58 8 2 34 181( 120 113 65 4 11 31 1811 125 115 55 7 5 29 1812 121 120 b2 6 8 53 1813 118 116 61 12 2 39 i 1814 120 114 64 17 7i 40 } 1815 118 111 80 7 n 45 1 'otal. I 855 9 8 475 N. B. The large amount of the Inci( the seasons of scarcity, for (No. 1.) GENERAL STATEMENT OP THE F U N D S ixutKjVuell jTrientJlji) ^ocietj?» FROM ITS COMMENCEMENT IN 1795, TO JANUARY, q Members each i/fn COLLEC IIUNS. DISBURSEMENTS. Sick Fuid. Widows Fund. 21 39 37 35 45 50 98 94 97 104 109 109 113 113 120 IIG 114 111 18 10 6 12 17 15 10 4 15 9 lU 16 16 5 39 6 8 41 IS 5 36 7 3 39 19 39 14 Hi 51 8 2 41 7 2 49 19 4 59 8 2 63 4 11 55 7 3 52 G 8 61 12 2 64 17 7 80 7 9 Total, ^"85 5 11 6 12 7 12 8 a 9 11 14 12 22 15 25 6 22 15 22 15 25 6 21 1 27 18 34 19 31 15 29 19 10 53 11 59 11 8 40 11 11 45 3 9 1 13 4 7 12 8 12 4 4 10 9 19 2 10 15 11 11 II 16 9 9 8 475 5 92 1 Sick Allowance 6 1 16 3 18 15 3 18 7 i7 18 10 2 10 17 10 12 13 15 6 2 2 7 5 13 14 5 12 10 10 2 1 1 6 11 9 1 38 12 17 26 3 13 3 23 5 10 10 15 7 4 8 2 19 71 9 15 101 16 3 8 7 12 9 8 1 12 lOi 2 16 2, 17 8 12 1 13 9j 8 4j 19 2 13 9 14 4j 6 1 8 3i, 19 94 156 5 6 ',824 14 7 N. B. The large amount of the Incidental Expenses, is principally owing to the Society having purchased meal, during the seasons of scarcity, for the supply of the members, by which a considerable loss was sustained. 87 ^ 8 fJ (u ^ V ^ ^ ^ • IP SHXV3a O-^-^CMOiOOOOl^O 1 CISl 1I8I tOOt>Cl' C5 t- C^ 'M -^ ^ Oj (^ „ ^ 0^ IISI « <>J o» ^ « s 0I8T o CO o o -* ^o o ^1 t^i to : -^ to OJ -. ^ 1 60S I O «.'• — CO Oi t- CiJ lo rt» r-i : rH CO CNt «-• ^ i 8081 C-» CO •TT- — iO ro 00 CJ lO t-i : 1— 1 CO Oi >— > "-^ §3 £08 1 C5^cD-toojc-ojcor^ : oi cw o> 'H « : i 9081 c- c/D cc cjD o o o lo Oi r-1 : rnOi f" r^ r-, GO ?08I C: to O 'O i-O 00 t- CN CO ; 10 c^ « --« . • = t08I -^ to rh to i> X i-0 to CN : : --H to Ol t"^ !—« . . CO £081 ^ CO CO ^ ^ X CO CO CN : ; ^ e08I •^co'^cococ^rfioiOi : : iS 108 1 toi>^oo;ocoi ^ « : . o 1—i 0081 o »-o ^ CO CO I- rr e< : : : s 66il CO G^i o o rf. o CO oi : : : ^ 8g:i CO 2J CO rh AO CO CO G^ ; : : ^ iGU o Qvj GO G^ ^ i-o oi c^ : : : 5 9GZI t- o I- -^ ^0 rf- ^ : : : : ^ f'GiT Oi iO c>i ^ rf< r:» CO : : : : ;;3 o u o < a c 1 c CO CO c Oi c o io 5^ s CO o 5 c CO rA to iG 56 to 61 61 to 66 66 to 71 Total No. of Members. 88 J .S _ _ , -"i* >. . I-H T— 1 03 |s ^OCO«>0"<*t-tO'HOtOCiCOC5Ci -H >» 3 ^ t; CiaOrH^'5i>«5aooJCi050Tj»-H.-. -,Oi OJ_H CO 0.? 0«5rfiC50^tOOiOi Oi l^ lO -I« CO rt it J>f-«M500C5'*^iOCO<©'^C5^(N Tj^ g s , ^gO. rf^-iO^OOOOOOOO?00©i Ci ^ 2 ^ CO «o 000 t CM : H S ."S oooooooo«oooo CO m g i 1 t2'^22'^J22^^*^"'*^ i> OiOjaD CO I-] rH I-H I-H 1-H 1-4 »>S < ■ •« • 1 _2i K Jg : : .-t-cocofNGQ^Oitocio^cvj Tf ^ " : : : oi ^ CM ^ Tf< 10 oj f^ «o to 5 is 00— l'-"ir5C0'r-lrf<05O'-^'^O^(N -IS V §1 aOO»-HCOOCOOiOOcOTjs *i c* _H rt '-' ^ '- ^ ^ '^OG^tO^OJCit-O^iOOOOiOOlO iO 1 31, OJG^OiG^COtOOiOlG^OJlOG^COtMCM ^ 1s6d • • •QC)-*«'>Ji>toto-«*'OaciC5aD % i-i^ : : :io^^o;oxicooi>co';cco '^ ^s = CO 'e « (U ^ 8^ t ^ .-tOitO'^^ot-aDCiO'— Oito-^o < aDQOGOCOaDGDQOaOXGDGDaDXQOaD 89 TABLES Showing the nature and form of the Books employed in a BANK FOR SAVINGS. Tables of this kind, but somewhat different in form, we fraction, if any, to the new addition, and continuing the operation till he has runt dwvn the whole money column. The account is thus prepared for filling up the number of days, and cakulating the interest.* John Wii-son, Tinsmith'' s Jppr€7iUcc^ High-slreei. j Date. 1 Dr. Repayments. Cr. Deposits. Sums at in- terest Days. Int. 21 4-2 317 580 1816. ! Jan. 6. ... 13. ... 20. ... 27. Feb.17. Dec 31.... /. s. d. I. s. d. 1 10 /. s. d. I 10 21 21x2 317 2 <3 2 1 3 2 17 1 9 1 9 1 6 10 Interest... Carried to N. A 1 8 10 u-u^^'j '"'"""' '""y ^^ calculated by days, weeks or months. A specimen is here eihibitcd of an ingeniouj and expeditioui method of calculating by d»yii, the figure* 92 FORM OF YEARLY STATEMENT, OR BALANCE- SHEET. In this, the whole of the depositors' names, their folio in the ledger, the balance of the sums deposited, the interest and the premiums due, and the total sums at their credit, must be in- serted in separate columns respectively. Those accounts which are finally closed, may be stated by themselves after the rest. For the sake of conciseness, I have only inserted the supposed additions of the different pages of the statement. Depositors' Names. o he 1- Deposits. Interest. B a!, Total. Addition of 1st page,... Do. 2d do. ... Do. 3d do. ... Do. 4th do. ... Do. 5th do. ... Do. 6th do. ... Do. 7th do. ... Net balance of deposits, with interest at 4 per cent •• .. ........... ... L s. d. 151 13 6 207 5 6 180 16 275 5 338 4 178 2 55 19 /. s. d. 3 12 11 4 8 6 4 6 6 5 19 6 6 12 1 1 11 9 2 8 s. d. 9 9 5 6 /. 5. d. 155 15 5 212 3 185 8 281 4 6 359 16 1 179 13 1 56 1 8 j382 5 26 13 11 23 6 1410 2 5 Interest on bank account, 37 18 8 37 18 8 Interest due to current depositors, and trans- ferred to account of each, per ledger, A... Interest paid to retired 26 13 11 19 4 1 3 (i 9 1 11 PrpiYiiiims Surplus interest transfer- red to auxiliary fund in the interest column being the number of days on which the interest of one pound is to be found. Thus, in the example given, lOd. is the interest of one pound for 380 days. Should this method not be approved of, it is easy to substitute a column for weeks or months, and for I. s. d. in place of (he preieot interest columns, that tht cal- culations may be made in the usual way. ERRATA. Page ♦. line 22. For highest, read high. — 27. — 1. of vote, for adopted, read adapted. — 4f. — 9. for observations, read observation. — 43. last line, for entirely th« operation, r#af/ entirely to ihe optration. DUMFltlEI : PRINTXD IT C. MITNRe &. C». mm- .c t nm^mm