A history of savings banks in the United States from their inception in 1816 down to 1874

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Preface

The relation sustained by the writer for a number of years to the Savings Banks of the State of New York is set forth with sufficient detail in the progress of these volumes. That relation and its incidents were considerations in his favor in undertaking the preparation of a History of Savings Banks. It is unfortunate, however, that his claims to special fitness fbr such a work should not extend beyond the foregoing ; that the favorable conditions mentioned could not be supplemented in him by literary culture, by the genius or the habit of authorship, nor yet by that release from engrossing pursuits, which, faithfully employed, might serve to atone for the deficiencies herein acknowledged.

That a record of the origin, growth and achievements of an interest w^ich in its present development ranks among the first in magnitude and importance in our country, is desirable, it is believed will not be questioned ; that it is desirable now, before much pertaining to its inception and early progress shall pass beyond our reach, receding into the obscurity of the boned past, is scarcely more open to question. It is in this conviction that the author has entered upon the preparation of these volumes. He bespeaks for their faults no tenderness of criticism, for upon these he has none himself to bestow. His ideal of such a record is as high as tha^ of any one can

IV PEEFAOB.

be, and no one can know better than he how far short of that

ideal is what is here offered for acceptance. Still, he cannot

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resist the conviction that, despite its defects, the work has a certain value that justifies its submission to the public.

Dropping the stiffness of the impersonal form, — I can assert with truth, that into the preparation of these volumes I have put my conscience most thoroughly. Upon many of the elaborate tables in the second volume, I have spent as much time, and have been as careful and painstaking in the processes for reaching approximate accuracy, where perfect accuracy was unattainable, as though the result would affect the balance of some poor depositor's account. ^Of course such care and pains make no record of themselves, for even very considerable errors would pass wholly unnoticed and would not appreciably affect the grand aggregates into which they must enter. Haste, carelessness and indifference might have been indulged with impunity, for no one could challenge the substantial accuracy of estimates and calculations for whose results the only claim asserted is, that of a rational approximation from which the elimination of all errors is simply impossible.

In further justice to myself upon another point, I may mention that, had I known when I set out, how voluminous would be the material which I could command, or which would be required for such an exposition of the subject as would satisfy my own sense of completeness in its treatment, I should have rejected some and condensed more in the earlier portion of the work. Besides, had the idea of two volumes presented itself at the inception of the work, I should have aimed to make a more natural division of the subject matter between the two volumes, than was possible under the circumstances as they occurred.

PREFACE. V

I desire herein to acknowledge my obligation to the New York State Library, at Albany, for important, indeed indispensable, material, in the preparation of this work, and not

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elsewhere attainable. Under an intelligent administration, not always seconded by corresponding liberality in legislative appropriations, this library has become, probably, more thoroughly furnished with the early laws, documents and ot&cial transactions of the several States than any other in the country, not excepting that of Congress, at Washington. Not the least of the many pleasing features which distinguish the management of this valuable library, are the courteous attention and cheerful aid rendered by those in charge to students or others seeking information.

I am likewise indebted for many courtesies to the Librarian, of the Vermont State Library, and to the Secretary of State, *jtnd the Auditor of State, in Rhode Island.

Bhookltn, N. T., Moyy 1876.

CONTENTS OF VOLUME 1.

FIRST SECTION.

nrrBODucTOBT.

Chapter 1 — Theorj' of Savings Banks, pp. 1-14 ; Chap. 2 — Inception of the Idea in Europe, pp. 15-24; Chap. 8 — Antecedent efforts of Philanthropy, pp. 25-34; Chap. 4 — Order and Plan of the work, pp. 35-37.

SECOND SECTION.

SAYINGS BANKS IN THB STATE OF HA8BACHU8BTT8.

Cliapter 5 --Inception and Growth, 1816-1883, pp. 38-45; Chap. 6 — General Sayings Bank Law, 1834, pp. 46-^; Chap. 7 — Course of Legislation, Sapervision and Reports, 1838-1860, viz.: First Savings Bank Re port, 1888; Investments, 1841 ; Reports, 1846; Taxation of Savings Banks; Division of Profits; Growth of the Savings Bank System; Deposits of Minora ; Savings Banks and Banks of Discount; Legislation in 1858 ; Suggestions and Legislation 1859-60; Multiplying Savings Banks — pp. 55-68; Chap. 8— Bank Commissioners' Report, 1861, pp. 69-84; Chap. 9 — Course of Legislation. 1862-1873, pp. 85-89; Chap. 10 — Statistics of Growth and Prog^ss, viz.: 1. Of Certain Institutions as Furnished hy Themselves; 2. In General as a System as shown hy Tahles — pp 90-117.

THIRD SECTION.

SAYINGS BANKS IN THB 6TATB OF CONNBCTICUT.

Chapter 11 — General Course of Legislation, viz. : Inception ; Organization ; Notice of Incorporation ; Investments ; Purchase of Real Estate ; Later Legislation ; Surplus ; Limitation of Individual Deposits ; Dividends or Interest ; Taxation of Deposits ; Compensation of Officers ; Borrowing of Funds; Penalty for Violation of Law; Rate of Interest on Loans; Withdrawal of Deposits ; Saving and Building Associations — pp. 118-140 ; Chap. 12— Of Supervision and Reports, pp. 141-154; Chap. 18— Statistics of Growth and Progress, viz. : 1. Of Certain Institutions ; 2. In General as a System as shown hy Tahles — pp. 155-165.

Vlll CONTEN'IU

Jj^OUBTH SECTION.

SAYINOS BANKS IK THB BTATB OF RHODE ISLAND.

Chapter 14 — Inception and oourae of Legislation, viz.: Form of Organisation ; Investments ; lleports and Supervision ; Dividends ; Limitation of Amount of Deposits; Withdrawal of Deposits; Prohibitions; Deposits of Married Women and Minors — pp. 1«6-181; Chap. 16 — Statistics of Growth and Progress, viz. : 1. Of Certain Savings Banks; 2. In Geneml as a System —pp. 18^194.

PJFrH SECTION.

BAVI190S BA17KB IN THE 8TATK OF NBW HAMPSHIRE.

Chapter 16 — Inception and history of Portsmouth Savings Bank, pp. 195- 203; Chap. 15 — Course of Legislation, viz. : Supervision ; Examination, etc.; Organization ; Investments ; Taxation of Savings Banks ; Compensation to Officers ; Use of Funds by Trustees ; Bonds of Officers — pp. 204- 210; Chap. 18 — Statistics of Condition and Progress, viz. : 1. Early Reports of Certain Institutions; 2. As a System shown by Tables — pp. 211-224.

SIXTH SECTION.

BAYING8 BANKS IN THB BTATB OF HAINE.

Chapter 19 — Inception and Development, pp. 225-229; Chap. 20 — Charac. ter of Legislation,. viz.: Provisions of Early Charters ; Savings Banks Made Subject to Examination ; General act of 1869 ; Supplementary and amendatory Legislation — pp. 230-236; Chap. 21 — Progress as shown by Reports, presenting in full first Report, 1855, and Abstracts of Subsequent Reports, pp. 237-256 ; Chap. 22 — Statistics of Growth and Progress, viz. : 1. Of Certain Institutions; 2. In General as a System as shown by Tables — pp. 257-267.

SEVENTH SECTION.

BAYlNaS BANKS IN THE 8TATB OF TERIIONT.

Chapter 28 — Conditions of Development, pp. 268-^72; Chap. 24 — Course and Character of Legislation Concerning Investments, pp. 278, 274; Chap. 25 — Supervision and Reports; Subsequent Legislation, pp. 275-285; Cliap. 26— Statistics of Growth and Progress: 1. Of each Savings Bank from organization onward ; 2. Summary of the Progress of the System from year to year — pp. 286-^302.

CONTENTS. IX

EIGHTH SECTION.

8AVINGB BANKS IN THB 8TATB 07 NBW YOBK.

PABT I.

IKCKFTION OF THB IDBA AND INOOBFORATION OF THE BANK FOB 8AYIN08.

Chapters? — Preliminarj, Showing Order, Plan and Division of thia Section, pp. 80S-306; Chap. 28 — Dawn of Phihinthropic Effort, viz. : Vint yolontary Association, 1816 ; Savings Banks in the Legishitaie, 1817 ; A Side Issue — New York Interest Bank -^ pp. 807-814 ; Chap. 29 — Reorganisation and Benewed E£fort, Statement thereon of Hon. P. W. ^^g»» PP- 815-822; Chap. 80 — Message of Oovemor Clinton, 1818; Another Side Issne — New York Interest and Savings Bank, Petition therefor — pp. 828-381 ; Chap. 81 — Introduction, Progress and Passage of the Act Incorporating the Bank for Savings, pp. 882-840; Chap. 32 — Practical results. Success Popular as well as Successful ; First Report of Bank for Savings ; First Fruits, Alhany Savings Bank — pp. 841-353.

PART 11.

INO SAVINGS BANKS.

Chapter 83 — Policy of Legislation as Illustrated in the Form of Organization, viz. : Constituency of Boards of Trustees ; Quorum ; Qrounds of Exclufdon from Membership — Discusssed under relation of Savings Banks to. Banks of Deposit — Extract thereunder from Special Report on Savings Banks, 1868 ; Exceptional Forms of Organization Noted — pp. 854-375; Chap. 84— Of Investments, 181&-1846, pp. 876-886; Chap. 85- — Investments Continued, 1846 — A New Point of Departure ; " AvMlable Fund" (first appearance); Report of Assembly Committee on New Features Introduced into Charter of Buffalo Savings Bank — pp. 887-400; Chap. 86 — Investments Continued — Legislation under Foregoing Precedents; General Act of 1858 ; Subsequent Legislation to 1874 ; Deposi to in Banks ; do. in Trust Companies — pp. 401-414 ; Chap. 37 — Of Dividends to Depositors, Extract thereon from Special Report, 1868, pp. 415-420; Chap. 88— Of Surplus, Extract thereon from Special Report, 1868; do. from Annual Report, 1870; pp. 429-^488.

Conclusion of Pabt n, in Yolumb n.

tjhivbrsitt;

HISTORY OF SAVINGS BAMS.

FIRST SECTION;

INTRODUCTORY.