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About Omaha daily bee. (Omaha [Neb.]) 187?-1922 | View Entire Issue (Nov. 8, 1903)
.OWN OIIiMER SPEED, naval his- torlan and yachting expert, turn from sea adventures and exploit to the more prosaic subject of money saving and contributes to Ihe current Issue of Success an Interesting article on "The Romance of Saving Banks." lie says In part: Thrift and romance are generally consid ered to be antipodean, and generally they are quite so. It Is most fitting, however, that there should be, even about the practi cal working out of a very practical Idea first formulated by a great story teller, much that .is romantic, even sentimental. In the popular mind In America, at least Benjamin Franklin seta the credit for hav ing suggested savings banks. This Is prob ably due to the confident belief that he could hitve suggested them If he had tried, because pretty nearly everything, at one time or another, was turned over In his Wonderfully comprehensive and busy mind; also because It was in Philadelphia that uch banka were llrst on this continent successful. No doubt Franklin could have deserved the credit If he had tried, but the Idea had been suggested before his time by Daniel I'eFoe, the writer of "Robinson Crusoe." In what we may call savings bank litera ture, however, it la Jeremy Bentham who gets the credit as father of this great Idea, which has assisted thrift most potently, and In millions of instances has done more to alleviate poverty than ail the ideas and works of the socialist Marx and his follow ers combined. Whether Bentham' got his Idea directly from DeFoe or not there Is no present means of knowing. But when, toward the end of the eighteenth century, the former wrote on the subject, the latter had been on record for more than 100 years. The author of "Robinson Crusoe" may have anticipated the stealing of his thunder when he wrote In his essay, "Second Thoughts Are Best." "Nothing la more easy than to discover a thing already found out." It Is certain that DeFoe was far In advance of his time, and It Is likely also that tha English, of whom, ha made such a lot of fun, did not take him seriously,, though, to be sure, they did take the trou ble, now and then, to put him In Jail. At any rate, Bentham gets the credit, for. before his Influence had waned, "frugality-banks" had been started In England and Scotland and also on the continent. The banka were reasonably successful from the start, and soon the British par liament enacted a general law to control and regulate them. The Idea came to America by means of the English news papers, and aoon public-spirited men In Massachusetts, New York and Pennsyl vania were at work establishing institu tions for the benefit of the thrifty poor In America. Tbe politicians In the state leg islatures, particularly In New York, did not take kindly to the Idea- They saw infinite danger In it. The managers, some of the legislators maintained, would accumulate great sums of money belonging to other people, and wou'd become too powerful to be safe In a country where no one was very rich, and where, though all were trying their very best to get wealth, riches were looked upon as aristocratic and aristocracy was considered a menace to republicanism. Besides this, the established banka were hostile to the notion. They said, in effect, "It one bank In ach center be desig nated and then a special clerk in each such bank could attend to the savings depart ment." But the men who unselfishly had Interested themselves In the projects were not deterred by this opposition and went on with their pluna. Here Is how the Idea took form In Philadelphia, which was then, and la now, In my opinion, one of the most American cities In the country: "On or about November 20, 1K16, Condy Raguet, having noticed in the recently received English journals accounts of the establishment of savings banka in that country, and having met. on the same day, when on his way to his office, Richard Peters, Jr., at the southeast corner of Fourth and Chestnut streets. Introduced the subject to him of the expediency of establishing a similar Institution in Phila delphia. They subsequently, on the same day, met Clement C. Kiddle and Thomas Hale, and dlHcusaed and agreed upon es tablishing a savings bank in this city. It was decided to call a meeting of a few prominent cltlsens on the following Monday to consider and at once act upon the sug gestion of Condy Raguet." This neighborhood way of doing business must have been very effective, for we find that 'The Philadelphia Savings Fund So ciety" as established and began business December 2, 1816, though It was not In corporated for more than two years. The first savings bank In America is still In existence and is one of the largest and most prosperous Institutions of the kind la tha world. After clghty-slx years this Old-established bank has SO. 839 depositors, to whom la due on account of deposits $ti7, (C4.190.67, while the contingent fund or sur plus amounts to the very comfortable sura f t6.020.4u8.OA. Surely Condy Raguet did not foresee this when ha mada his sug gestion to Richard Peters, jr., on tha south oast corner of Fourth and Chestnut streets. And it la not at all likely that tha fear- legislature did, either, when It Romance of granted a charter. If the legislature had, the projectors, no doubt, would have knocked at the doors In vain., Singularly enough, or naturally enough, perhapa, these savings banka, with their great accumulations of wealth, are as far as possible from being a menace to our republican Institutions. On the other hand, they make more for conservative security than any other banka. The depositors con stitute a great conservative army which numbers 8.770.8G7 men women and children. This army has on deposit the Immense sum of $2.772,388,lfM. with an average to each depositor of $409.3, while the esti mated surpulus brings the total wealth of the savings banks of the country to more than 13,000.000,000. which Is nearly one-half In excess of the principal of the public debt of the United States. This means that the savings of the thrifty people who have placed their little hoardings In these Insti tutions Is sufficient to wipe out the public debt of the country and have an Immense surplus left over. So long as this great conservative force holds together, the demagogues and fanatics with cure-all panaceas, either financial or political, must reckon with It as an Insurmountable Im pediment In their progress toward national ruin. A statement of the Philadelphia Savings ' Fund society shows that the women de positors slightly outnumbered the men. This Is the case pretty nearly everywhere In the country. It does not show neces- ' sarlly that women are better savers than men, though T am by no means prepared to deny them this power, but Jt proves that the man who makes the money very fre quently, and very, very properly, turns it over to their wives to take care of. This brings me to the first Illustration of a savings bank romance that was ever brought to my notice. Indeed, It brought savings banka to my notice as well, for I was at the time a lad who in Ignorance be lieved that all hjs father hod to do was to put his hand In his pocket and bring forth money in any quantity desired. The Idea that the pocket could get empty he had never entertained; of the source of replen ishment he had no thought. But one day he heard a very moving tale. A friend and neighbor with a young family had met with misfortune; his money was all gone and he was In debt. The next day, however, things looked brighter, for his careful wife had been placing money In a savings bank, and with this the husband could make a fresh start. I recall, after thirty years, the way this woman was spoken of. No praise was too great for her. In the eyes of her neighbors and friends she seemod splendid, and her husband was heard to say with Mark Tapley optimism, that even bankruptcy has lessons of comfort. Sev eral years later I came across a story simi lar to this told by Washington Irving, and then I knew that my instance was not soli tary. In talking with savings bank people I have learned that, If such Instances are not frequent, they are not by any means unheard of. Are such things romantic? Yes, Just about as romantic as they are satisfactory. When they do happen they raise the commonplace out of 1U plodding May Goelet, Coming Duchess T HERE are few American women better fitted to grace a ducal drawing room than Miss May Ooelet, whose marriage to the duke of Roxbursrhe takes nlace In New York City next Tuesday.- Her whole life has been spent in the environ ment of which she Is soon to form a fixed part with the added glory of a title. Nearly eighteen of her twenty-flve years have been spent abroad, most of them In Eng land, where her father was a great favorite with the prince of Wales, whose friendship was a sesame that opened every door In England. Miss Ooelet began her experience abroad at the age of 5, when her advent with a retinue of maids and teachers caused her to be hailed aa "the American princess." She learned , her European geography by walking on It. and her German and French by living In it. For ten years she whirled In the disxy circles of Itndon. Paris, Ber lin, the Riviera, always within the pre cincts of the elect. Her father was one of the first Americana to be received every where In Europe and he achieved a so clul success not since duplicated by an American. It was he who offered an in ternational cup for yacht racing in the Mediterranean, and on the occasion of the rat (which was won by the prince of Wales' cutter Britannia) he entertained the future king of England more than once. Some time afterward when Mr. Ooelet re turned to Newport and opened his house there, it was rumored that tbe prince was to pay America a visit as his guest. This, however, did not transpire. About seven years ago, or two years before her father's death at Cowea, Miss Ooelet became the object of the first matrtnionlal gossip that touched her name. Oddly enough, It af fected a duke one who has since taken an American bride Miss Zimmerman of Cin cinnati. Nothing came of It, but since that time and up to the present the future duchess of Roxburghe has been reported engaged to various English, German, Savings Banks and place It for a moment upon higher levels. The entire respectability of the great bulk of savings bank depositors is attested by the infrequency with which frauds are at tempted. To be sure, there are not many ways In which these banks can be de frauded, as long experience has enabled the officials to safeguard the deposits very se curely. About the only way open to would be tricksters is by overdrawing their ac counts, or by forging the names of other depositors. All savings banks, however, compare a depositor's book with the books at the bank every time a draft Is made, so that a depositor can never, except through a clerical error, draw out more than is to his credit In the bank. One bank makes It a practice never to write the full name of a depositor . upon his pass book. The Ini tials only are written, except In the sur name, as "J. M. Smith." Any finder of the book is deterred from an attempt at forgery by Ignorance of the real name of the de positor. It may be "John Marshall" Smith, or It may be "Jeremiah Moses" Smith. The real name of the depositor Is kept on the bank's books, and an attempt at for gery of the simple name "J. M. Smith" would be met at the .bank with a request for the full name. If, however, a dishonest person secures possession of a depositor's bank-book, and is able to answer the questions asked, and Is also able to forge the name of the depositor, he is- pretty apt to get the money. This. Is most fre quently done, of course, by those who have convenient access to the depositor's pass bookthat is by some wayward member of his family. An account In a savings bank never dies. So long as there shall exist a human being entitled to the sum on deposit, so long will that sum lie In the vaults to await the call of Its unknown owner. The law of New York is that an account ahall be deemed quiescent after twenty-two years, but no bank waits so long. Some begin to search for the owner as soon as the account book has not been presented to the bank for three years. Others wait until after a con tinuous absence of the depositor for about fifteen years. The owner of the money. If found, is requested to come to the bank, and to deposit or draw out $1. This will keep the account alive. If, after twenty two years, no owner la found, Interest on the deposit, whatever Its amount, ceases. If a person has an Idea that an ancestor deposited money In some bank in New York or any other city, years ago, he must com municate with such bank or with all the banks within the territory named. They will at once search through their Indexes, which are kept ready for such Investiga tion, and Inform the Inquirer. Letters of this kind are received every day and form a regular part of the mall. One man Is kept constantly on the trail to hunt down accounts like a ferret. A search for one depositor often opens a way to find others. Community of Interests forms a connecting link between banks, enabling one to help out another. Every year or so lists of unclaimed accounts ore published all over the country. Hundreds of letters are sent out to persons who seem likely to be able to furnish information. Ticnch and Russian noblemen. Indeed, when Duke Boris of Russia paid his memorable visit to this country last year a certain distinguished woman, to whom the leadership of Newport is generally ac corded. Is reported to have bluntly taxed him with the purpose of coming over here to win the hand of Miss Goelet. Others to whom she had at various times been re ported engaged are Prince Henry of Teck, the earl of Shaftesbury, Prince Hohenlohe and a host of brilliant and rich Englishmen who have since sought and found wives less favored by fortune. I'nder her father's will Miss Goelet re ceived SoOO.000 when she reached the age of 21. The Income from personal property Is also divided between the two children, who will eventually share the principal, both real and personal. The total Income of the Ogden Goelet estate is probably close to $1,000,000 a year. Miss Goelet U her own mistress as far as her personal In come la concerned. Bhe has enjoyed an Income of probably $400,000 a year for nearly seven years and she has been under little expense, comparatively. ' WltM a total in come in seven years of almost $3,000,000 and a lump sum of $500,000 at her command, she will have no difficulty In making a sub stantial marriage settlement. Tbe personal Income of the duke is said to bo about $t0,0U0 a year. The Impression that Miss Goelet's pros pective husband is a landless and penny less Scotch nobleman U erroneous. It is true that he la Scotch, but he' Is by no means a poor man, unless by comparison with the great fortune of his fiance. The expense of maintaining his estate Is close to a quarter of a million, and it la said that Ms rent roll are well outside that figure. The duke is only three years the senior of Mia. Ooelet. He 1. a trained soldier Who has Seen service, an enthuslastlO sportsman, has social gifts commensurate With his klgb Station. Some time In the fifties there lived fn New York a good family of French descent. The members were not rich, and when the father died suddenly their " circumstances were considerably straltene-l. The eldest son had been at work for neveral years, and had accumulated a little money In a savings bank. For Immediate use the mother had borrowed $125 from a friend and given her note at six months. The maturity of the note was approaching, and she was worried terribly because she could not meet It, Learning this, the son withdrew from the bank the amount that was needed, and the note was paid. But he did not close the account, as he left, as he himself ex pressed It when telling of the incident, "a few dollars for politeness." The young man was employed In Wall street, and. In a few years, became so busy a principal In that bustling mart that he forgot all about the "polite balance" In the savings bank. Years panned and he be came a very rich and important personage. A short while ago. In his personal mall, ha found In an envelope a clipping from tha New York Herald of an advertisement of dormant accounts In a great savings bank. There appeared to be some $500 to his own credit. He was sure there was some mis take. He called at the bank, however, and, after examining all the records, recalled the circumstances. When he looked at the envelope which had held the advertisement he found that it had been sent to him by the son of his mother's friend, to pay whom the account had been drawn on more than forty years before. This was surely a case of casting bread upon the waters and get ting It back after many days. The banks really take much trouble to And the owners of these Inactive accounts. They correspond with German officials, and publish lists in Germany, and send lists to Irish priests to be read to their parishioners In Ireland. These methods have frequently brought deposits to the notice of owners and heirs. Accounts become dormant from many, leave the country; they lose their minds, and so on. If, In such an instance, the bank causes; depositors are killed In battle; they book has been left at the bank by the de positor, the heirs may not know anything of any deposit. Another cause la when the depositor draws out all his money, and there Is some Interest still owing, but not ready to be entered. Thus It stands on the bank's books, but not on the depositor's, and he never knows anything about It. There was once a popular belief that these dormant accounts made an enormous amount, and that they were used for erect ing splendid bank buildings. This caused a strong feeling against the banks. This charge is entirely untrue. The unclaimed accounts are maintained as liabilities to be met just as much as the accounts which are to be paid every few days. The only difference Is that, if the depositor stays away twenty-two years, he gets no dividends after that time. In 1894 the report showed 6,122 accounts In the state of New York, netting $1,443, 808.97, which had not been disturbed for twenty years or more. This has now been greatly reduced. If a bank closes up its business, the money lying dormant Is placed In the hands of the superintendent of banks, who deposits it In some solvent sav ings bank. In his own name, In trust for the depositors and creditors of the closed bank. A certain dormant account was found to belong to an old woman who sold apples " on the sidewalk near one of the banks. One day she brought two books Into the bank to have them settled up. The first was her own book and the other belonged to her sister. A bank officer asked her If she did not have a third book. She did not know of one. He made a diligent search, and. sure enough, found an account In the bank In the name of the parents of this old wo man and was able to pay to her the com fortable sum of $4,000. On reflection the old woman said that she did have an Indis tinct recollection of a bank book that had belonged to her father, but that It had disappeared and she had forgotten It entirely. YOU ARE TOO THIN! 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