[137] Since writing the above, it is only fair to say, that we find this writer has taken no pains at all over the matter, but has simply benefited by the industry of another, without in any way acknowledging his obligations. Mr. Edward Taylor of Rochdale, in a pamphlet now before us, published several years before Mr. Scratchley's book, entitled “Savings Bank: ought Government to make good past losses in Savings Banks?” supplies the whole of the quotations given, and even the setting for them.
[138] The preamble of the first Act (Act 57 George III. c. 130, 1817) runs thus: “Whereas certain Provident Institutions or Banks for Savings have been established in England, for the safe custody and increase of small savings belonging to the industrious classes; and it is expedient to give protection to such institutions, and the funds established thereby,” &c. &c. The preamble of the Act of 1828 runs exactly to the same effect.
[139] Much to the same purpose a well-known writer in the London Review says: “As long as Savings Banks are Savings Banks, based, on the one hand, on the confidence of the poor, and, on the other, on the benevolence of the local clergy and gentry, acting as trustees and managers without fee and reward, and therefore without such bounden obligations as men can be called to account upon, so long will frauds periodically arise, opening up great gulfs of deficits, strewing thorns upon the pillows of the poor, and driving sharp pangs of despair into their hearts.” Dr. Hancock, in one of his admirable pamphlets, alluding to the system of checks relied on by the managers of many banks, says: “It is impossible, in the nature of things, to devise a perfect system of checks. So long as the work has to be done by human agency there must always be some risk. To secure the performance of actions by human agents, three forces commonly operate: 1, A morel sense of duty; 2, A fear of large pecuniary loss from liability, in case of the non-performance of duty; and 3, A fear of judicial punishment, if non-performance be made a penal offence. The limit placed on the liability of the managers effectually took away or reduced to a minimum the fear of loss and of punishment, and the divided responsibility there has always been between Government and the trustees, by weakening the sense of duty, did the rest.”
[140] The case of the Edinburgh Savings Bank, another excellently managed institution, is still more to the point, where unusual facilities produced an unusual amount of depositors and deposits.
[141] According to an excellent authority, Mr. Smiles, to whose admirable article in the Quarterly Review (Oct. 1859) we are indebted for some of our particulars of the history of this movement, it would appear that the first proposal for Regimental Savings Banks was made in 1816 by Paymaster Fairfowl, but allowed to drop; it was taken up again in 1827, when Colonel Oglander, commanding a regiment of Cameronians, brought the project under the notice of the Duke of Wellington. The Duke could not see any benefit to be derived from the proposal, and wrote the following characteristic memorandum upon the papers: “There is nothing that I know of to prevent a soldier, equally with others of his Majesty's subjects, from investing his money in Savings Banks. If there be any impediment, it should be taken away; but I doubt the expediency of going further.” He added something further, however, which, also eminently characteristic, opened up a new feature in the case, and closed the door to such proposals till after the Duke had left the service. “Has a soldier,” continued he, “more pay than he requires? If he has, it should be lowered, not to those now in the service, but to those enlisted hereafter.” Colonel Oglander had no idea that the soldier should have less than his “thirteen pence a day, and a penny beer money,” and therefore suffered his proposals to be simply negatived.
[142] The deposits in Seamen's Savings Banks—
| In 1861 | were | £17,112, | and withdrawals | £12,681 |
| 1862 | " | 17,089 | " " | 15,343 |
| 1863 | " | 17,098 | " " | 14,090 |
[143] To the Honorary Secretary of this bank, Mr. W. W. Morrell, we are greatly indebted for much information on the Penny Bank movement; and, as an ardent Savings Bank reformer, for much information on our subject generally.
[144] Any of our readers who may desire fuller information on the subject of Penny Banks, or particulars as to their management—information which we should have been glad to have furnished, had our space permitted—could not do better than get an admirable little pamphlet on “Penny Banks,” by the Rev. J. E. Clarke, of Derby. (Bell and Daldy, 1859.) Mr. Smiles, in his Workmen's Earnings, Strikes, and Savings, also devotes a short chapter to describing, in his usually effective way, their results on the provident poor.
[145] The first Preliminary Savings Bank in Scotland was started at Annan, in Dumfriesshire, and Mr. Sikes was consulted about it. A correspondent writing to Mr. Sikes a few years ago, says: “It may gratify you to know that I some time since met with the Rev. James Mackenzie of Dunfermline, formerly of Annan, who told me that he had ten Penny Banks at work at Dunfermline! I believe the Annan one was father to them all, and you to the Annan one, so that your family is spreading rapidly, and becoming a great multitude throughout the entire kingdom!”