It may naturally be asked, who shall be the officers of these banks, if they are not to be chosen by the contributors themselves, either out of their own body, or from the higher classes? To this I might answer, by referring to the highly respectable self-constituted banking companies in every part of Britain; but I am aware, that the analogy between these and Saving Banks is by no means complete. The object of the one is the profit of the partners, whereas that of the other ought to be to promote the welfare of the labouring classes; and, on this account, the services of its managers should be either altogether gratuitous, or paid for at so low a rate, as to hold out no inducement, in the shape of emolument, to such men as it would be safe to intrust with its funds. But if there be a want of benevolent individuals among the higher classes, of their own accord to incur the responsibility, and assume the direction of those Saving Banks, which by their constitution exclude popular elections, it does not readily appear, that the circumstance of being elected by the members, perhaps in the face of much opposition, will inspire benevolence, or ensure efficiency. For, let it be observed, that whether the officers be or be not named by the depositors, it is indispensable to the success of the establishinent, that they should be men of property and education, much above the level of the depositors themselves. Even Mr Duncan, the founder of the Ruthwell Bank, and the advocate of the popular system, has confined the choice of its office-bearers, in the first instance, to the donors and annual benefactors of the society. It cannot well be doubted, that there are in almost every country parish, and certainly in every town, a few respectable individuals, able and willing to undertake the management of a Saving Bank, who might not, however, choose to attempt the far more arduous task of preserving order in a large assembly, or of appearing in it as a candidate for nomination, and mixing in the discussions, which, on such an occasion, can hardly fail to be introduced.

It may be said, however, that there can be no need for going out of the society itself for the necessary officebearers; and the organization of Benefit Societies may be adduced in proof of the competency of the depositors in

a Saving Bank to the management of all its details; and the success of these Societies as a further proof of the advantages to be expected from the choice of their own functionaries by the depositors. But a Saving Bank and a Benefit Society are usually as different in the information and circumstances of their members, as in their objects. The frequent meeting of benefit societies, or of their committees, is necessary for the admission of new members, and for carrying into effect, as occasions require, the very purpose of their establishment. The cases of applicants must be speedily examined, and such allowances made to them, out of the funds, as they are entitled to receive by the rules of the society. The responsibility of the managers is not confined to the security of the funds, but extends also to the mode in which they are employed, and the receipts and disbursements must therefore be investigated at short intervals. Every member has an equal and undivided interest in the welfare of the concern, from which he cannot withdraw himself at pleasure, like the depositor in a Saving Bank. The partners of a company in which the members reciprocally ensure one another, are held together by a bond of connexion, which can terminate only with their lives, or the dissolution of the partnership. Every member must therefore be known to the great body of his associates, all of whom are nearly on the same level. But it is of importance to observe, that this level is placed somewhat higher than that of the great body of depositors in Saving Banks. The most numerous members of benefit societies are not of the class of common labourers, but men bred to trades, who have had the advantage of being educated in their youth, or have since acquired that knowledge of business which is necessary to success in their professions, in which many of them arrive at independence. From the very different object and materials of a benefit society, therefore, it cannot be inferred, that the principle of their organization is either necessary or suitable to that of a Bank for Savings.

If we are to look forward to the general establishment, and to the permanence of Saving Banks, some fears may be entertained for the constant and effective operation of that part of the ma

chinery which is composed of the benevolence of the higher orders. It is not altogether improbable, when these banks have become very numerous, and stood so long and so firm, as to seem to require only that protection which the law confers on all the honest pursuits of private interest, that the zeal of that class, from which it is proposed the managers should be drawn, may not always be found sufficient for the conduct of their affairs. Should this apprehension be realized, much stronger reasons than at present will then be felt for having recourse to the alternative of the popular system; and with much less danger of inconvenience, after all the details of management have become familiar by long practice. But though I am not so well acquainted with the local arrangements of England, as to suggest the mode of eventually supplying this desideratum, by means of the resident magistracy or clergy; yet, if Saving Banks shall be found in any considerable degree to operate favourably upon the habits and condition of the lower classes, and particularly in diminishing poor-rates, there is every reason to hope, that the voluntary and gratuitous services of men of property and education will always be supplied in abundance. In Scotland, there is perhaps still less reason to fear the want of such talents and disinterestedness. In every parish there are at least two respectable individuals, the clergyman and schoolmaster, who may be confidently expected to undertake the executive department; and the landed proprietors of this country, justly alarmed at the progress of poor-rates in England, and anxious to ward off the evil from themselves, certainly would not hesitate to give the most ample security for the faithful administration of all the affairs of the institution.

From these remarks on the object of Saving Banks, and the principle on which they should be forined and conducted, it will be seen that I am decidedly averse to the measure that has been recommended, of combining with them a scheme for converting the deposites into annuities. Those who, from the best motives, would thus hasten to rear the superstructure before the stability of the foundation has been proved, ought to consider, that the more complicated and laborious the duties of the managers may become,

the less probability there is of their being faithfully discharged by men who give their services without a pecuniary reward. The benefit to which the depositors would be entitled, if their stock were converted into an annuity, must depend upon a variety of circumstances, in particular upon their age; and the errors in calculation, which may justly be expected to occur, if an annuity scheme were ingrafted upon a Saving Bank in country parishes, would, in all probability, soon bring ruin upon the whole establishment. It may be doubted, indeed, how far it may be advisable to urge it as a duty in the lower classes, to save a part of that income which barely suffices for their own maintenance, or to excite a blind zeal for accumulation, even though, as in the case of Saving Banks, they be allowed to withdraw their deposites at pleasure. In proportion as the zeal of all concerned may at first be somewhat immoderate, so is the danger that disappointment may be succeeded by indifference. All that is really necessary, or perhaps expedient, is to afford to the labouring classes the opportunity of depositing their earnings under safe custody, and of drawing them out again with interest, when they are too small in amount to be received by mercantile banks; and if the advantages of the measure do not form a sufficient inducement to them to avail themselves of it, it were idle to expect success to Saving Banks, as it is unjustifiable to seek it, by any other means of excitement.

To obviate the objections which I am aware may be made to this exclusion of popular interference, I must beg leave to conclude this part of the subject with observing, that hitherto I have chiefly had in view the Saving Banks of Scotland, in which the depositors are understood to be, at least the far greater number of them, of the very lowest description of accumulators. It is for such people, principally, that there is felt a want of Saving Banks in this country; for all our mercantile banks are in the practice of receiving so small a sum as £10 in one payment, and returning it on demand with interest; and their agents are spread throughout almost every part of the country. But I can easily suppose, that a higher class of depositors may avail themselves of this institution in

England, where it is not customary for the mercantile banks to allow interest even upon the largest deposites. If associations of this kind, in that country, should, therefore, comprise a large proportion of men of information, and the number of their members be consequently very limited, they may certainly find their account in managing their own affairs; but the character of such societies has but a very slight affinity with that of Saving Banks.

Having been led to notice the remarkable difference in the conduct of English and Scottish banks, in regard to the advantage they allow to depositors, I cannot avoid observing, that the practice of the latter, in paying interest on deposites of so small an amount as £10, has materially contributed to diffuse among the lower orders of this country, that abstinence and foresight by which they are so favourably distinguished from the same class in England. The desire of accumulating a little capital is never, except among the very worst paid labourers, or such as have large families, repressed in this country, by the difficulty of finding for it a secure and profitable depository. Partly to this circumstance, perhaps, though it has been generally overlooked, it may be owing that so many Scotsmen have been enabled to rise from the class of labourers; and, by habits of application and economy, which are very generally combined, establish themselves in a few years in the learned professions, or arrive at independence through the more lucrative pursuits of commerce. In England, on the contrary, there is no such facility to the secure and profitable investment of small savings: monied men,-at least bankers, the most convenient and accessible of this description,-pay no interest; and landed proprietors cannot always be safe depositories, while the laws of England protect their estates from the just demands of their

creditors.

On a future occasion I may probably offer you some remarks on the moral effects to be looked for from the introduction and increase of Saving Banks, when I shall venture to examine what I think is a most injudicious, and by no means impartial, article on this subject, in the Part of the Supplement to the Encyclopædia Britannica

recently published. It is written with so much ability, and with such an appearance of precision and of close reasoning, that those who take a deep interest in so promising an institution, cannot fail to be astonished, as well as somewhat alarmed, at the extraordinary opinion of its author, when, after a very imperfect, though an imposing view of their probable utility, he comes to this conclusion,—that, "taken by themselves, it is at least a doubt whether Saving Banks* may not produce as great a quantity of evil as good." Hi.

It is a curious circumstance, that an appropriate term for those banks should still be wanting. "Savings Banks," though the most common appellation by which they Edinburgh reviewers long since found fault are known, seems to please nobody. The with it as it was then printed. The writer of the article referred to in the text tells us, that some adjunct is wanted to distinguish this from other species of banks, and no good one has yet been found. He rejects

Provident Institution," and " Frugality Bank," equally with " Saving Bank"

and thinks that "Poor's Bank would be

the best, if it were not humiliating. Mr ample title of the Parish Bank Friendly Society of Ruthwell." The Quarterly reviewers will not consent to this, and propose the term " Friendly Bank," with the name of the place prefixed. But the Edinburgh and other banks, in which the depos. itors are strangers to each other, and do not interfere in the management, are not very unless it be understood to apply to the manaptly designated by this latest invention, agers exclusively.-Be so good as insert this note for the purpose of exercising the ingenuity of your readers.

Duncan gave the Ruthwell Institution the

Hi.

a grass glebe; the china cups were already arranged, and the savoury teapot stood basking on the ledge of the grate, when the servant maid entered, and told Mr Grumple that there was one at the door who wanted him.

We immediately heard a debate in the passage,-the parson pressing his guest to come ben, which the other stoutly resisted, declaring aloud that "it was a' nonsense thegither, for he was eneuch to fley a' the grand folk out o' the room, an' set the kivering o' the floor a-swoomin." The parlour door was however thrown open, and, to my astonishment, the first guests who presented themselves were two strong honest-looking colleys, or shepherd's dogs, that came bouncing and capering into the room, with a great deal of seeming satisfaction. Their master was shortly after ushered in. He was a tall athletic figure, with a black beard, and dark raven hair hanging over his brow; wore clouted shoes, shod with iron, and faced up with copper; and there was altogether something in his appearance the most homely and uncouth of any exterior I had ever seen.

"This," said the minister, "is Peter Plash, a parishioner of mine, who has brought me in an excellent salmon, and wants a good office at my hand, he says, in return." "The bit fish is naething, man," said Peter, sleeking down the hair on his brow; "I wish he had been better for your sake-but gin ye had seen the sport that we had wi' him at Pool-Midnight, ye wad hae leughen till ye had burstit.' Here the shepherd, observing his two dogs seated comfortably on the hearthrug, and deeming it an instance of high presumption and very bad manners, broke out with "Ay, Whitefoot, lad! an' ye're for being a gentleman too? My certy, man, but ye're no blate!-I'm ill eneugh, to be sure, to come into a grand room this way, but yet I wadna set up my impudent nose an' my muckle rough brisket afore the lowe, an' tak a' the fire to mysel-Get aff wi' ye, sir! An' you too, Trimmy, ye limmer! what's your business here?"-So saying, he attempted with the fringe of his plaid to drive them out; but they only ran about the room, eyeing their master with astonishment and concern. They had never, it seemed, been wont to be separated from him either by night or

by day, and they could not understand why they should be driven from the parlour, or how they had not as good a right to be there as he. Of course, neither threats nor blows could make them leave him; and it being a scene of life quite new to me, and of which I was resolved to profit as much as possible, at my intercession matterswere made up, and the two canine associates were suffered to remain where they were. They were soon seated, one on each side of their master, clinging fondly to his feet, and licking the wet from his dripping trowsers.

Having observed, that when the shepherd entered he had begun to speak with great zest about the sport they had in killing the salmon, I again brought on the subject, and made him describe the diversion to me.-") man!" said he, and then indulged in a hearty laugh—(man was always the term he used in addressing either of us-sir seemed to be no word in his vocabulary)—“ O man, I wish ye had been there! I'll lay a plack ye wad hae said ye never saw sic sport sin' ever ye war born. We gat twall fish a'thegither the-day, an' sair broostles we had wi' some o them; but a' was naething to the killin o' that ane at Pool-Midnight. Geordie Otterson, Mathew Ford, an' me, war a' owr the lugs after him. But ye's hear:-When I cam on to the craigs at the weil o' Pool-Midnight, the sun was shinin bright, the wind was lowne, an' wi' the pirl* being away, the pool was as clear as crystal. I soon saw by the bells coming up, that there was a fish in the auld hauld; an' I keeks an' I glimes about, till, faith! I sees his blue murt fin. My teeth war a' waterin to be in him, but I kend the shank o' my wastert wasna half length. Sae I cries to Geordie, "Geordie," says I," aigh man! here's a great chap just lyin steeping like a aik clog." Off comes Geordie, shaughle shaughlin a' his pith; for the creature's that greedy o' fish, he wad venture his very saul for them. I kend brawly what wad be the upshot. "Now," says I, "Geordie, man yoursel for this ae time. Aigh, man! he is a terrible ane for size-See, yonder he's lying." The sun

was