Evening Republican, Volume 21, Number 18, Rensselaer, Jasper County, 30 January 1918 — Page 3

The First Savings Bank

DepMita Afcowt «800 First Year Overcame Poverty la Uttle Scottish Village

By S.W. STRAUS

(Priatiwf New Ytck sad CUctfe Bahar)

One hundred and ten years ago there ■were no savings banks. The savings bank is an institution which was founded in the year 1810 by Rev. Henry Duncan in the little Scottish village of Ruthwell. Before that time, poverty seemed to be the normal condition of half the population of the British Isles. Pauperism was so common as to cause no Comment. Hundreds of thousands in Scotland alone lived on charity and it was generally accepted as a hopeless fact that “the poor we have always with us.” Doctor Duncan was of sturdy Scotch covenantor blood. He was a man of unusual strength of character, originality and resource and extraordinary talent for making friends. The distress of his parishioners preyed heavily on Doctor Duncan’s mind and he felt if there was some way of teaching them to be thrifty he would have an effective remedy for the poverty he saw all around him. The chief trouble was that the smallest sum the public banks would accept was £lO and comparatively few of the Scottish villagers had so large a sum, about $48.75 in American coin. So, Doctor Duncan conceived the idea of a poor man’s bank, as he called It, which would receive deposits of any amount, however small. After studying the subject long and carefully, he published a pamphlet to call attention ito. his project, so, as he said, as to render this measure suitable not for one locality only but “for Scotland and the world.” The only banks the poor had In those days were a stocking, a chink In the wall, or a loose board in the floor. They were often robbed and the temptation to use a portion of this precious nest egg was often too strong. Doctor Duncan argued shrewdly that if their funds were transferred to a bank, they not only would be safe from theft but the owners would hesitate to break Into them except in cases of urgent need. • In his pamphlet he says: “If any method then could be devised for giving to the artisan a place of security, free of expense, for that part of his gains which the immediate

“WAMPUM” Indian Money

How Indian Deities Were “Tipped)” Origin at Term “Bucketahop”

By S. W. STRAUS

(Prominent New York and Chicago Banker)

Here is the story of “wampum,” the first money to be used in the United States. It consisted of clam shells, little tubes made out of clay, beads and the like. All these the Indians called by the general name of wampum, and •when the white man set foot upon these shores he found the wampum convenient for his use, not only in trading with the Indians but with other whites. The Indian name was sewan, but the European immigrants gave this legal tender the name of wampum, by which it has been known ever since. Wampum was not entirely devoid of intrinsic value. Most of the shells from which it was made wefe rare. These were made largely into beads, highly polished and strung on strings. 'Chiefs, sachems, and me'dlcine men wore great strings of these beads on 'Ceremonious occasions. Every treaty was. corroborated by laying down belts of beads. Friendships were cemented and alliances and marriages were always solemnized with an exchange of wampum. Wampum was chiefly of two kinds, white and dark purple. The white was made from the edge of the clam shells and the purple made from the shell’s heart, and was worth double the white. Considerable labor cost went into the manufacture of wampum, for a writer in the year 1714 tells us: “All wampum is made of shells which are found on the coast of Carolina, which are very large and hard, so .they are very difficult to cut.” He adds that “some English smiths have tried to drill this sort of shell money and thereby thought to get advantage, but it proved so hard that nothing could be gained.” When an Indian was buried, strings of wampum were always placed in the grave with him for convenience in purchasing the necessary supplies in the next world, pnd for use as tips to various minor Indian dieties, who ■the Indians believed were as greedy as modern head ■* " In. 1641 the use of wampum was legalized by the common council of New Amsterdam, now New York. This was next followed by an epidemic of counterfeiting, which caused a great deal of difficulty and led to the rapid depreciation of wampum as a medium of exchange. Old Peter Stuyvesant pegged around on his wooden leg and did his best to solve the problem by

wants of his family do not require, with the power to reclaim all, or part of it, at pleasure, It would be a most desirable thing, even if no interest should be received.” Ot course tnere were pessimists and suspicion and prejudice to overcome, but at last in 1810 the bank was opened in a Uttle shingled cottage. There were no vaults, but a large iron strong box, too heavy to move by hand, answered the purpose. In view of the suspicion which he says was entertained by many, Doctor Duncan provided three locks for the strong box. He held one key and two elders of his church each held the others. Of course the box could not be opened without all three keys, in the presence of all three trustees, r; In the first year the deposits amounted to £lsl. In the second year £176 was deposited. This grew to £241 in the third, and £922, or more than $4,000, in the fourth. For a poverty-stricken village these deposits, aggregating more than $7,000, were regarded as remarkable, since it must be remembered that all deposits were in small sums. The effect of the opening of the savings bank on the village was all that Doctor Duncan hoped for. Within a year there was a remarkable decrease in the number of those who sought charity. Thrift and happiness replaced poverty and discontent. Within a few years there was scarcely a pauper in the village, as Doctor Duncan records. In the meanwhile the fame of this remarkable little institution began to spread and Doctor Duncan soon found that his labors as a minister were swallowed up by those of a banker. His correspondence Increased day by day; letters poured In from all over England and the continent of Europe and from America asking for information. In 1814 he published a book on savings banks, which was widely circulated, and savings banks began to spread throughout the British Isles. It seems strange at this time to read that savings banks could have aroused opposition. This, however, was a fact. There was a bitter fight in parliament before the first savings bank act was passed in 1817. Cobbett, the best known editor of his day, used his powerful Influence against the plan, but Doctor Duncan was a fighter as well as a philanthropist. He went before the committee of parliament himself and so Impressed both lords and commons with his sincerity, the force of his personality and the justice of his cause, that the bill was passed. This was in 1817. Savings banks spread rapidly over Great Britain and then over all the rest of the world.

declaring unstrung wampum no longer to be legal tender. This was going to the opposite extreme, and the little Dutch colony came near a financial panic. Six months later loose and imperfect wampum had to be declared legal tender. In Massachusetts wampum became legal tender in 1640, but twenty-one years later the coining of silver was authorized, and this more stable medium soon drove wampum beads out of circulation. After the Revolutionary war money was so scarce that wampum came into use again. It persisted here and there as money until the nineteenth century, and, indeed, wampum’ In various forms, including pipes and moons, were considerably used in the United States until as late as 1830. The financial requirements of the Revolutionary war resulted in the establishing of America’s first banks. The initial undertaking was the Bank of Pennsylvania, which was started in July, 1780. It was described by the well-known financier Morris as “nothing more than a patriotic subscription of continental money for the purpose of purchasing provisions for a starving army.” In the decade 1780-1790, three other financial Institutions were launched; the Bank of New York, Massachusetts Bank and the Bank of North America. This latter is generally considered to be the first bank in the United States and was capitalized at $10,000,000. Actual subscriptions, however, were very hard to secure and only $70,000 was obtained. The government contributed $200,000 in specie. The New York Stock Exchange has been traced back to a meeting of twen-ty-four brokers under a tree opposite 60 Wall street, May 17, 1792. The purpose of the meeting was to agree on uniform commissions. Thereafter the brokers met at “Tontine Coffee House,” Wall and Water streets. The final organization of the Stock Exchange was completed in 1817. The Philadelphia Stock Exchange also started in a coffee house. The malodorous “bucketshop” received its name from* England. On the east side of London loafers had a custom of going from street to street and draining every keg of beer they could find. The liquor was placed in a bucket. After it was .filled these hard characters retired to some out of the way corner and caroused, passing the bucket from one to another. The term “bueketshop,” at first meaning assemblages of this kind, came to be applied to any establishment of doubtful reputation.

Duly Explained.

“What are pauses?” the teacher asked the first class in grammar. “Things that grow on cats and dogs.” answered the smalelst girl.— Pearson’s Weekljr. “A dog is man’s .best friend.” “I think a lot of a dog,”, commented the worried-looking man: “but the way things are going now, gimme a cow or a hen!”

THE EVENING REPUBLICAN, RENSSELAER. IND.

Quiet in Color, Simple in Design

Since it is expected that the everyday serviceable dress of today, will be quiet as to color and simple in construction, great demands are made upon the ingenuity of designers. Their cleverness must come to the rescue — to redeem frocks from somberness and lift them out of the commonplace. In the face of these restrictions, they have done wonders with the means at hand. We are more charmed with their original ways of doing things than with any of their past achievements. They have thought out ways of combining black with gray or beige or any neutral color, that more than reconcile us to the absence of bright color. Other dark colors are managed with the same cleverness. The dark blue, one-piece frock shown in the picture is a fine example of good designing. Imagine it in velours or duvetyn with gray duvetyn providing the needed contrast. A band of the gray set in about the neck makes place for a cut-out applique in blue. The front of the bodice is extended below

The last hats of winter, like autumn leaves, herald their departure by becoming more brilliant than at any cither time of the year. They abdicate in favor of spring millinery much earlier in the year than they used to; for Fashion takes to satin or even straw hats before the snow is off the ground. Anything that looks like spring makes a strong appeal in the lands of long winters, and furthermore, Northern tourists’ hats, displayed in Northern shops, lure women into being illogical. And there Is no particularly good reason why a flower hat, or a hat of malines, should not be worn In midwinter. Two of the hats in the group above are of velvet and the third is of satin. At the center, a high, soft crown and a wide brim, with easy, flowing hues, make a lovely variation of the always pleasing picture hat. A handsome ostrich feather proclaims the return of the plume to the best of places for it. This hat Is essentially beautiful; It can never look out of date. A hat with narrow brim and round crown, shown at the left of the group, is another becoming shape that is always good style. It is gay, with a spray of brilliant flowers, the black velvet of the hat serving as a wonderful frill for their color and sheen. The hat at the right Is the most popular of small shapes, and is made in dark, brilliant straw braids, as well as in satin and velvet Its first purpose is to l>e becoming and Its'otber reason for existence is the support of the gorgeous ■ garnlmre of black satin rib-

The Last Hats of Winter

the waistline and two large disks of the gray cloth find the best of positions on it. The same odd applique is stitched to them. The frock is plaited across the front in the skirt portion and where it joins the bodice, small disks of the gray cloth answer to the roll call of the plaits. There is a belt of the blue material, which is fastened to the front of the bodice at each side with a large flat bone button. _ A band of blue, piped with gray is wrapped about the sleeve at the wrist. It is wide at one end and narrow at the other, the narrow end rounded and overlapping the other, is fastened down with a button. This is a very simple finish for the sleeves, but no one seems to have thought of it before. Considering that the designer made such a success of this use of gray with blue he was justified in adding a soft cape collar of gray crepe georgette, although the frock would still be a success without it.

bon, brocaded with gold, which covers the top of the hat The ribbon is arranged In a bow with two loops at the front. It is noteworthy that each of these hats depends upon a single trimming feature for its adornment, and that they bespeak variety in new millinery. One carries a plume, one a flower, and one contrives its magnificence with ribbon. Hats are worn far* down over the eyes this winter, and coat collars far up about the face. Just about all that is to be seen of the face is a pair of eyes, when milady cuddles down into her fur collar. **■

New Blouses in Simple Fabrics.

In the newest assortment of blouses are some from Paris which indicate a marked preference for fine material* and simple lines. They have special reference to their affiliation with suits; although several of them are so constructed that they may be worn as gulmpOs with the sleeveless frock of satin or of serge. There are models made of handkerchief linen whose only trimming is in hand fagoting; others are delicately trimmed with drawn work or have insets of real filet lace. The new high collar is featured, although in deference to the wishes of many American women. Paris has sent blouses that have the familiar V-npdt with the sailor ur round collar.

Co-Operation, Not Competition Must Govern Business in Future

By GEORGE W. PERKINS.

that principle depends not only the industrial welfare of this country m the future, but the social status of our people as well. When war was declared, this country was saddled with the incubus of the lack of vision of our so-called political leaders of the last twenty years. Politicians had decreed that ruthless competition should rule industry. .... We have had all the evils that flow from unrestricted competition costly trade wars between economic units that were fighting for the same market; adulteration of product and bad trade practices, rebating, secret agreements, price cutting, low wages, child labor and all their attendant evils. ■’ Have we profited by our mistakes? Have we awakened to the necessities of the future? Are we ready to prepare with all possible speed for the new economic conditions that face us? ’ Are we ready to accept the new principle, viz., that co-operation is henceforth to be the life of trade and that ruthless competition is no longer the life of trade? The problem, brought fully before us in the events of the past year, is the most important and also the most fascinating of any that this country has ever solved. It calls for the most supremely unselfish and patriotic effort that the people of our land are capable of giving.

History Proves That War Will Bring Prosperity to United States

Any man who can read may learn for himself that history proves every war has stimulated trade. God knows we would be willing to banish that stimulant along with the others by an act of congress, but the fact remains that after the shock of 1861, the greatest years m business-the highest prices for stocks and bonds—came in ’62 and ’63. And in 1864 and 1865 business had big years. In 1861 New York’s bank clearings were $6,000,000,000. In 1862 they were seven billions; 1863, fifteen billions; 1864, twenty-four billions; twenty-five billions in 1865, and twenty-nine in 1867. In 1861, the bad year of the Civil war—possibly corresponding to the period we are now going through-there were s 2o '’ o^ ures in the United States, and this had dropped to only $23,000,000 m ’62, and to seven and eight millions in ’63 and ’64 respectively, while there was but little increase in the succeeding several years. The reason for this, according to Senator Theodore Burton, was tha “the great demand incident to the war, and the enormous employment of labor, plus the withdrawal of a large body of men as soldiers, prevented the possibility of depression.” We are in a better position today than our country was during the Civil war, because, prior to our own entrance into the present war, Europe poured hundreds of millions into our business treasuries, and we became a creditor instead of a debtor nation.# And now all the money that has been loaned the allies is being spent here in addition to billions for our own military purposes. It makes no difference what fallacies of economy may be enumerated by men in high or low position, you cannot affect the unalterable laws of supply and demand, and men in business may confidently count upon ? '’rowing demand for their products and upon growing prosperity. They should not be discouraged by small setbacks or by reactions that will occur in a sensitive country during a time of war. We will soon get*' rumors, true and false, and our system nationally will become immune to the shocks.

Nation Has Responded Nobly But Still Greater Sacrifices Must Be Made

Liberty and democracy! These have been the underlying words, the basic principles, of the loans which the men, women and children of the country have been asked to make to the United States government. The magnificent response to the appeal has been due not only to the fact that the loans were the safest investment in the world but rather because, in this form, the people could show their faith, could participate in the war which is to end the slaughter of innocent noncombatants and the ruthless destruction of homes .and villages and the laying waste o fruitful lands. . The government of the United States will go on tAing Its people to give its pennies, its dollars, its thousands and its milhonsuntd ths war is won, confident that every patriot will sacnfice m every other dnrw tion that he may have a share in helping this great cause in these trying yß The people have no cause to blush for’what they have done in th. first nine months of the war. The government has every reason for grabtude The big thing which Hares instantly into view when the effort of 1917 is reviewed are the two Liberty loans, oversubscribed, nol only willingly but joyously, and with the utmost enthusiasm. Splendid as have been the sacrifices and responses of the Amental people’ they have yet to make greater sacrifices and to increase: g» erositv The wealthy must pay heavier tar«_and lend more money to th. gmvrnment, mid tlm wage earner and small salaried man mart man.gi to give his proportion. The necessity for economy by everyone >s making itself felt slowlv but surely. Everyone must not only giro np that he really wants, but he must, make that sacnfice count for the gow ernment’a efficiency io winning the war.

America is face to face with the necessity of revolutionizing her attitude toward business. The events of our first war year have demonstrated that we are as unprepared for peace as we were unprepared for war. And unless we learn the lesson that this year’s events ought to have taught us, industrially and economically, the United States is in for a very severe trial not only during but after the close of the war. The new principle of business that our unpreparedness has taught us is that co-operation and not competition is the life of trade. On our acceptance of

By RICHARD A. FOLEY

By CORA RIGBY

Business and Financial Expert