to any pecuniary fund, and it is probable that the promoters of this system added "pietatis" to give it an air of religion, and thus to procure larger subscriptions. A bank of this kind was formed at Perugia in the year 1464; another at Rome in 1539; one at Naples, which was considered the greatest in Europe, in the following year, and it took the name of banco dei poveri—the bank of the poor. These institutions were opposed in France. An attempt was made to introduce them under Louis XIII. in 1626, but the managers were threatened with punishment, and the undertaking was relinquished. The Mont de Piété, at Paris, was established in the year 1777; and so largely has the public taken advantage of the accommodation this afforded, that it has been known to have in its possession forty casks filled with gold watches.

These banks were not only called Mounts of Piety, but they were also called Lombards, from the name of the original bankers, or money-lenders. A loan-bank, or a Lombard, was established in Russia in 1772,* to prevent the usury and the oppression to which the poor were exposed, and the profit was given to the foundling hospital of St. Petersburg. The "Lombard" lent on gold and silver three fourths of the value, on other metals it lent one half the value, and on jewels as much as the circumstances of the times would allow, the estimate being made by sworn appraisers. The rate of interest was established throughout the empire, in 1786, at five per cent. At the Lombard, one year's interest is taken in advance. Pledges that are forfeited are publicly sold; and if they produce more than the loan, the interest, and the charges, the overplus is given to the owners.

In 1695, Sir Francis Brewster published his Essay on Trade and Navigation, "printed for T. Cockerell, at the Three Legs, in the Poultry, over against the Stocks-market." He has a section upon "Banks and Lumbers." He recommends that in every shire a bank should be erected by Act of Parliament; and he states that it would be "the most effectual way for suppressing highwaymen; for that no man need travel with more than pocket-money for his expenses, when he may have bank tickets to any part of the kingdom where he goes." He afterwards observes, "that lumbers for poor artizans and others is an appendix to banks, and may by funds out of them in each * Oddy, on European Commerce. + Lumbers, i.e., Lombards.

county be supplied so as that the poor men have money to carry on their trade and employment on the pawns that may be so easy, and with the advantage of selling in public sales what they leave in pledge. And that what they borrow should be of more advantage and easy to them than if the money were lent them gratis, and may be of great use in the employment, and encouraging the manufactures of the nation, which are much discouraged by the necessities and hardships that are put upon the poor."

Loan banks, for charitable purposes, have, for a considerable time past, existed in Ireland. A voluntary association of this kind was established in the year 1756. This society was incorporated in 1780, under the title of "The Charitable Musical Society." They had their meetings at St. Ann's vestryroom, Dublin, on the first and second Tuesday in every month, for the purpose of lending money, interest free, to indigent tradesmen, in sums of not less than two pounds to any one person at one time, which sums are to be repaid at sixpence in the pound, weekly.

The Meath Charitable Loan Society was established in 1807. The committee of managers lent sums, not under five, and not exceeding twenty pounds, free of interest, to be repaid by weekly instalments of 18. 6d. for 5l.; 3s. for 107.; 68. for 207. Donations of 107. and upwards being vested in government securities, the interest only to be applicable to the fund, or thrown into the floating capital, at the option of the donor.

It seems highly desirable that in England also charitable loan banks should be taken under the protection of the legislature. These institutions might be organized in the same manner as savings' banks. In most parts of England there are probably some persons of affluence who would become personally bound for the repayment of such sums as the government might be disposed to advance; or, in other parts, the necessary funds might be raised by private donations. The funds might be employed in such a way as the committee might deem best adapted to promote the object of the institution. The loans might be made either in money, in raw produce, or in implements of labour. These might be recovered, if necessary by summary process. The state would thus become the Bank of the Poor. It would sustain the same relation to the humbler classes which ordinary banks sustain to the commercial classes.

It would be an intermediate party between the borrowers and the lenders. It could borrow, by means of savings' banks, from those who had money to lend; and lend, by means of loan banks, to those who wished to borrow.

SECTION XIV.

SAVINGS BANKS.

SAVINGS' banks are banks formed to promote saving. They are purely banks of deposit; they differ, however, from other banks of deposit in the following particulars :-First. Very small sums are received as deposits.-Secondly. All the money deposited is lent, upon interest, to the government.— Thirdly. The depositors are restricted as to the amount of their lodgments; these restrictions are designed to exclude from the bank all except the humbler classes of the community.

Loan banks, or institutions for lending money to the poor, are of ancient date; but savings' banks, or institutions for borrowing money of the poor, are entirely of modern invention. They were first urged upon the attention of the public and the legislature of this country, in the years 1815 and 1816, by the late Right Hon. George Rose. In his pamphlet upon the subject, he thus traces the origin of these establishments :—

"The idea was first suggested by the society for bettering the condition of the poor, of which I have long been a member, and it has been acted upon in Edinburgh and Bath with such a degree of talent, zeal, and perseverance, as to manifest the great advantage of it.

In other parts of Great Britain, however, the principle has been acted upon on a small scale, especially in Scotland, where the parochial institutions for saving are called Maneges; so full an account of these is given by Mr. Duncan, the early promoter of them, as to render it quite unnecessary to enter on any particulars respecting them here. But however well intended they are, there are strong objections to them. In any event, extended establishments are infinitely more to be desired, on account of the preferable management of them, as well as for the safe custody of the money. By a large district being included, gentlemen of property are found to become trustees and managers; and a fund is easily furnished by small voluntary subscriptions at first, and by the surplus of the interest allowed to the depositors afterwards, to meet all the expenses of the institution.

"Since the first publication of these observations, a controversy has

arisen by Mr. Duncan, the promoter of the parochial banks, insisting upon his having (by the establishment of the one at Ruthwell) been the first to bring the banks for savings into notice, in an address to Mr. Forbes, a gentleman of the highest respectability in Edinburgh, who was a zealous promoter of the banks there. The truth is, that the two establishments are perfectly dissimilar, as above stated, which will appear more manifestly to whomsoever will take the trouble of reading the pamphlet of Mr. Duncan and the answer of Mr. Forbes to it. As far as respects Scotland, it would seem that the Edinburgh plan has the merit of priority, for general advantage; but it may be hoped that in future there may be no contention, except how the public can be most benefited—it is of very little importance from whence the suggestion originated."

Mr. Rose proceeds to explain in detail the nature of these institutions, and points out the advantages they may be expected to confer upon different classes of the community :

"Apprentices, on first coming out of their time, who now too frequently spend all their earnings, may be induced to lay by five shillings to ten shillings a week, and sometimes more, as in many trades they earn from twenty-four shillings to fifty and sixty shillings a week.

“The same observation applies, though somewhat less forcibly, to journeymen in most trades (whose earnings are very considerable) from not beginning so early, and to workmen in several branches. With respect to these, it has been made evident to me, and to many members who attended the mendicity committee in a former session of parliament, that in numerous instances when the gains have been as large as above stated, the parties have been so improvident as to have nothing in hand for the support of themselves and families when visited with sickness, and have consequently with their families fallen immediately upon the parish. In some instances the tools and implements of their trade have been carried to the pawnbroker during illness, whereby difficulties were thrown in the way of their labour being resumed on the restoration of health. Domestic servants, whose wages are frequently more than sufficient for their necessary expenses.

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'Carmen, porters, servants in lower conditions, and others may, very generally, be able to make small deposits, without finding the slightest inconvenience from the diminution of their income occasioned thereby.

"With respect to day labourers, the full advantage cannot be expected to be derived at first, as far as relates to married men with families: it too frequently happens that when there are two or three children, it is all that the father can do to support himself and those dependent upon him with his utmost earnings; but the single man, whose wages are the same as those of his married fellow-labourers, may certainly spare a small weekly sum, by doing which he would, in a reasonable time, have saved enough to enable him to marry with a hope of never allowing any one belonging to him to become a burthen to the parish.

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Nothing is so likely as a plan of this sort to prevent early and improvident marriages, which are the cause, more than any others, of the heavy

burthen of the poor rates. When a young single man shall acquire the habit of saving, he will be likely to go on till he shall get together as much as will enable him to make some provision towards the support of a family, before he thinks of marrying.

"The welfare of the lower classes of society cannot be a matter of indifference to any, nor can it be doubted that their situation will be ameliorated by the adoption and promotion of these banks. The industry, sobriety, and economy among the lower orders of the people will thus be promoted by their being encouraged to make little savings for a provision against want and distress; and their moral improvement will be advanced, while their social comfort is augmented. By the plan which I here recommend, this beneficent and most important object will be obtained at no expense to the higher orders, or at so trifling a one as to be utterly unworthy of notice.

"This plan has in it the germ of valuable moral principles, and if it can be fairly brought into action, will tend more than anything to lessen the enormous and increasing burthen on the middle and higher classes, and at the same time to infuse into the minds of the lower order a legitimate spirit of independence. Its merits are so well expressed where its advantages were early experienced, that I cannot do so well as to quote a few words from one of the Edinburgh reports:-'It secures independence without inducing pride—it removes those painful misgivings which render the approaches of poverty so appalling, and often paralyze the exertions that might ward off the blow. It leads to temperance and the restraint of all disorderly passions, which a wasteful expenditure of money nourishes. It produces that sobriety of mind and steadiness of conduct which afford the best foundation for the domestic virtues in humble life. The effects of such an institution as this upon the character of the people, were it to become universal, would be almost inappreciable.””

In the year 1817, Mr. Rose obtained an Act of Parliament, entitled, "An Act to encourage the establishment of Banks for Savings in England." About the same time an Act was passed, entitled, "An Act to encourage the establishment of banks for savings in Ireland;" the provisions of which were similar to the preceding.

The establishment of Post-office Savings' Banks in 1861 (24 Vic. c. 14) has, by the greater facilities, and by the undoubted security which they afford, largely reduced the number of the (old) savings' banks, and still more largely the funds lodged in them. Government and the public are indebted to Mr. Sikes, manager of the Huddersfield Banking Company, for the suggestion, and for an outline of the plan, as well, of making the Money Order Offices contributory to the development of savings' banks.

Scotland has always had the advantage of savings' banks by