Suffolk County, Massachusetts - The whole text, 1894 (part 9 of 17)

Metropolitan National Bank

The Metroptjlitan National Bank was organized in 1875, with a capital <;>£ $5011, (100. The original officers and directors were as follows: President, Spencer W. Richardson ; cashier, S. D. Loring ; directors : Clinton Viles, James S. Cumston, James W. Roberts, Edward D. Adams, William Fosdick, Henry G. Crowell, J. M. Roberts, S. D. Loring, Francis Child, and .Spencer W. Richardson. Increase E. Noyes, the present president of the bank, was elected in November, 1891, and George Howe Davis has served since October 1, 187(). The board of directors for 1892 is composed of the following members: Clinton Viles, Peter S. Roberts, Alfred D. Hoitt, C. H. B. Breck, D. M. Anthony, Luther Adams, Increase E. Noyes, Charles Weil, and Richard F. Bolles. Clinton Viles is the only member of the board of directors who has served since the organization of the bank.

The financial condition of this bank, as reported to the comptroller of the currency at close of business, March (i, 1S',);5, was as follows:

Winthrop National Bank

The Winthrop National Rank is the sticcessor of the Merchandise National Bank, chartered in l,sT5, with an authorized capital of ,$.i(l(),( )(>(). I. G. Whitney was president, and E. O, Rockwood, cashier. It was intended as an institution to loan money on merchandise, and for a time was condticted upon this line. This featttrc, however, has been done away with. The bank was reorganized as the Winthrop National Bank in 18'.i(.). Wilmot R. Evans, who has since been president, was for eighteen years connected with the National Bank of the Commonwealth. Charles H. Ramsey, the cashier, also served in the National Bank of the Commonwealth for eighteen years. The original capital of the bank was at one time increased to $1, (KM), ()()(), then reduced to $5(K), ()()(), and is now .i)i:iO(i,()ii(). The directors for 1892 are: Albert H. Davenport, William E. Russell, Alonzo H. Evans, Albert A. Pope, James H. Eaton, Arthur Hobart, Wilmot R. Evans, A. Pierce Green, Thomas Appleton, and P. W. Sprague.

Fourth National Bank Lincoln National Bank

The Lincoln National Bank was orj^anized in December, 1882, with a capital of $300,000. The first officers of the bank were as follows: President, Joseph Davis; cashier, Edward C. Whitney; directors, Joseph Davis, Elisha Atkins, Oliver Aines, William T. Parker, John Shepard, Benjamin F. Spinney, Nathaniel J. Rust, Asa P. Morse, Isaac P. T. Edmands, Irving O. Whiting, Samuel N. Brown, and Frank M. Ames.

The capital of the bank was increased to $500,000 on May 3, 189'^. Nathaniel J. Rust succeeded Mr. Davis as president in 1884, and is still serving in this capacity. Mr. Riist is one of Boston's prominent business men, and has held many positions of trust in city afl:aii"s. Mr. Whitney has continued as cashier since the organization of the bank. The directors for 1893 are as follows: Nathaniel J. Rust, William T. Parker, John Shepard, Isaac P. T. Edmands, Irving O. Whiting, Frank M. Ames, Owen J. Lewis, Edward K. Butler, B. W. Currier, G. W. Williams, Oakes A. Ames, and George A. Litchfield.

The Lincoln National Bank began operations in the Equitable Building, but in January, 1893, a removal was made to the Hancock Building where convenient and attractive banking apartments have been secured.

Commercial National Bank

The Commercial National Bank was organized in 1888, and has a capital of $250,000. The officers of the bank are as follows: President, Otis Hinman; cashier, Geo. B. Ford; directors: Otis Hinman, Wm. O. Blaney, Frank B. Dole, Kilbj- Page, Edmund Reardon, I. W. Adams, Charles A. Baldwin, R. H. Chamberlin, D. S. Emery, Israel E. Decrow, and Sidney R. Baxter.

South End National Bank

The Soiith End National Bank was organized in 1889, with a capita^ of $200,000, and the following officer.s: President, John A. Pray; vicepresident, Henry E. Cobb; cashier, F. N. Robbins; directors: John A. Pray, H. E. Cobb, OHver L. Briggs, Nathan B. Goodnow, J. G. Blake, Joshua C. Dana, and J. J. McNutt. There has been but one change among the officers of the bank from the time it commenced operations until the present time, that of Henry E. Cobb, vice-president, who died in 1891, and was succeeded by Joshua C. Dana.

As an interesting- summary of the condition of the banks of Boston, and also as a more convenient ff)rm for reference, the followina: table is given, made up from the reports of ]March 0, 1893, showing the capital, the surplus and undivided profits of each bank, with other items which directly bear upon their condition. As will be seen, the sixty national banks of Boston represent a capital stock paid in of $54,600,000. The banks also show a surplus of $14,881,558, and undivided profits of $7,488,908. Expen.ses and taxes paid amount to $1,213,981. The undivided profits, less expenses and taxes paid, were $6,275,987. A comparison with the returns for December 9, 1892, shows the followingchanges: The surplus has increa.sed $400,100, the undivided profits have increased $1,828,945. The undivided profits, less expenses and taxes paid, have increased since the last statement $1,285,382. The amount of United States deposits held by the various depo.sitory banks of the city at the date of this statement was $249,465, divided among two banks as follows: Shawmut, $204,206; Merchants, $45,259.

Note. - The writer of the fore.i;oing chapter on the history of the financial institutions of Boston was greatly indebted to gleanings from the files of the (.«//«/i/iv,j/ AV^/W///, which contained valuable material on this subject.

Boston Clearing-House

TiiERK are now in the city of Boston and vicinity about one hundred banks, of which the sixty national banks of Boston represent a capital of $54,(500,000. Of these sixty banks, fifty-three with a capital of $52,700,000 are associated together to form the Boston Clearing-house, which, though an entirely voluntarj^ association without any corporate privileges, wields a mighty power.

Each of these banks in its daily dealings receives large amounts of checks and drafts on other banks, so that at the close of the day's business every bank has in its drawers a large number of checks and drafts thus due it by other banks. It is also the debtor of other banks which have during the day received its bills and checks drawn upon it.

Before the establishment of the Clearing-house, on March 29, 1850, it was necessary for each bank every morning to make up its account with every other bank, and to send its porter to present the bills and checks so received to the debtor banks for payment. The balances of their indebtedness were adjusted by payments in gold. This course, which became laboriotis, complicated, and even dangerous, was obviated by means of the clearing-house system, through which the settlements are so quickly effected that the exchanges adjusted through it, amounting in one day to $31,321,- 877, were settled within an hour and the balances within a short time afterwards.

The exchanges are prepared at the bank by sorting the checks received according to the banks on which they are drawn, the totals held again.st each bank being entered upon a blank called the "Settling Clerk's Statement," of which a sample is given below, the "first debit" representing the checks received the day prior to the clearing, and the second or "total debit," the total including tho.se received in the nidrning mail. The column "Bank's Credit" is left vacant and is filled up at the Clearing-house.

The mode of doing btisiness at the Clearing-house is as follows; Each bank is represented at the Clearing-house by a settling clerk and a messenger. These representatives assemble at the Clearing-house at or before 10 o'clock every morning. Each settling clerk brings with him first, his settling clerk's statement made up at his bank before leaving, which he retains; secondly, a credit ticket, which he hands to the manager on entering, which is filled up on a blank in the following form:

The figures from the credit tickets are rapidly entered by the manager or clerk in a blank called the "Clearing-house Proof" in the column headed "Banks Cr. ," representing the amount of the checks brought by the different banks to the Clearing-house. When these entries are made they are footed while the exchanges are in progress.

Each bank has a number in the Clearing-house and a desk numbered to correspond with the number of the bank. At precisely 10 a. M. every .settling clerk must be in his place inside the desk appropriated to his bank, with his settling clerk's statement. On the outside is each messenger having the actual checks or other matter to be exchanged with the other banks. The manager calls the Clearing-house to order and soimds the gong at precisely 10 .\. 11. At the sound of the gong each messenger moves one desk forward or to the left and deposits the checks and other Clearing-house matter drawn on that bank with its settling clerk, and at the same time drops in a small aperture in the desk an exchange slip, so called, as follows, showing the totals drawn upon that bank:

Blackstone Mtional Bank From

In this manner the messengers advance from desk to desk, depositing with each the checks drawn upon the bank there represented and the exchange slip, until each has passed entirely around to all the desks and comes back again to the point from which he started in front of the desk of his own bank. This occupies usually five minutes.

The messenger then receives from the settling clerk of his bank the checks and other matter left at the desk by the other messengers, and returns with them to his own bank.

The taking up of the exchanges usually occupies three minutes more, so that within about eight or ten minutes from the time the exchanges begin at the sounding of the gong they have been fully completed, and the messengers have left for their respective banks with the checks they have received. When received at the bank they are delivered to the Clearing-house clerk, by whom they are examined and entered, or returned, as the case may be. All checks not good must be returned by one o'clock.

As fast as the exchange slips and checks are received they are entered in the settling clerk's statement in the last column headed " Banks Cr. " and rapidly footed.

Each settling clerk, as soon as he has footed the credit column of his statement and carefully revised the work, strikes a balance between the total debit and the total credit exchange, which shows how much his bank is to receive or pay.

These balance sheets as fast as they are filled out are passed to the manager. Some of them are handed up almost immediately after the close of the exchanges, perhaps by ten minutes past ten, and they continue to come in until nearly half-past ten, by which, time the proof must be made under a penalty of a fine upon the delinquent bank according to a scale fixed in the Clearing-house regulations.

The total of the amount received, as shown by the balance ticket, is entered on the Clearing-house proof in the column headed "Banks Dr. " and the balance in the proper column. The amounts received and the balances are then footed. If the totals on both sides agree, the work is correct, the proof is made and the clerks are at liberty to go. If they fail to agree, it is evident that an error must have been made, as the amount of checks brought and the amount of checks carried away must be exactly the same. For instance, on a certain morning there is a discrepancy of $199.90. The manager immediately announces, "The error is $199.90." The clerks immediately proceed to examine their figures for the error. In a few minutes one of the clerks reports that he has discovered an error of ten cents, which makes the error $200, which is announced by the manager. The clerks continue to examine their figures and in five minutes more, at 10.40, the error of two himdred dollars is discovered and corrected, the proof is completed and the clerks are allowed to withdraw. The two banks whose clerks have thus detained the whole force for ten minutes are subjected to a fine of $3.00 each.

Boston Clearing-House Proof, 189

After the completion of the exchanges the next step is the payment of the balances. The debtor banks are required to pay their balances at the Clearing-house on or before 12: 15 p. w., and the creditor banks to receive them on or before 1 : 30 p. m. The manager gives a receipt to each of the debtor banks paying balances and receives one from the creditor banks. Balances must be paid either in coin or in such other currency as the laws of the United States require, or in such certificates as shall be authorized by the Clearing-house Association, except that sums less than $1,000 may be paid in bills of the debtor bank. vShould any bank fail to pay the balance due from it at the proper hour, the amount of such balance must be immediately furnished to the Clearing-house by the several banks in proportion to their re,spective balances against the defaulting bank resulting from the exchanges of that day, and the manager makes requisition accoi'dingly. The amounts so furnished to the Clearing-house constitute claims on the part of the responding banks respectively against the defaulting bank. Any such responding bank may cancel its exchanges of the day with the defaulting bank by tendering repayment to the debtor bank of the amount, if any, of the checks and other items received by it (the creditor bank) through the exchanges of the day at the Clearinghouse, from or on account of such defaulting bank, and receiving in return all the checks and other items delivered to the defaulting bank. If the defaulting bank shall fail to return such checks, the creditor bank may notify its depositors and customers from whom said checks and items were received of the non-payment and detention of such checks, which notification shall be equivalent to the return of such checks and items to depositors of the same, and the amounts thereof may be charged to their respective accounts, it being understood that the banks receive such checks and items payable by other banks for collection and as agents only. Errors in the exchanges and claims arising from the return of checks or otherwise must be adjusted between the banks directly and not through the Clearing-house, and checks not good must be returned at or before 1 o'clock.

The New York Clearing-house, - the first in this country - had been in operation nearly two years, and its usefulness had been fully demonstrated before steps were taken to establish a similar institution in Boston. A meeting of the representativ^es of the Boston banks to consider the expediency of establishing a clearing-house, was held at the rooms of the Merchants' Bank on Thur.sday, September 27, 1855. Franklin

Haven, president of the Merchants' Bank, was chosen president of this meetinjjf and WilHam Thomas, of the Webster Bank, secretary. The president read a paper prepared by Waldo Flint, president of the Eagle Bank, in favor of the establishment of the clearing--house, which document had been approved by twenty of the Boston banks, representing more than two-thirds of the banking capital of the city. A committee of eight was thereupon appointed to carry out the objects named in this paper. This cominittce was composed of the following gentleinen : Andrew T. Hall of the Tremont Bank, Waldo Flint of the Eagle Bank, Benjamin E. Bates of the Bank of Commerce, Thomas Lamb of the New England Bank, Almon D. Hodges of the Washington Bank, George W. Thayer of the Exchange Bank, Franklin Haven of the Merchants' Bank, and Daniel Denney of the Hamilton Bank.

As one of the obvious effects of establishing a system of daily settlements between the banks would be to compel the less conservative institutions to curtail their operations, some opposition was developed to the change. It was urged that the money market was already stringent and the rates of interest high and that the clearing-house, by bringing bank transactions to a strict daily specie test, would restrict loans and increase the stringency. To this it was answered that the tightness of the market was due to the encouragement given to speculation by some of the banks and that the conservative influence of the clearing-house settlements was just the thing needed to remedy the evil. The opposition proved of no avail. The committee appointed September 27 proceeded with their work and prepared a constitution and rules for the Clearing-house, which were presented, adopted and signed at a meeting of bank officers held at the Merchants' Bank on January, 15, 185(). At this meeting Franklin Haven was chosen chairman of the association and William Thomas secretary. A Clearinghouse Committee was also chosen as follows: Andrew T. Hall, Tremont Bank ; Waldo Flint, Eagle Bank ; Thomas Lamb, New England Bank; Almon D. Hodges, Washington Bank; Benjamin E. Bates, Bank of Commerce. Henry B. Graves was chosen manager.

Rooms were engaged on the third floor of the Granite Building, formerly owned by the New England Bank, at the corner of State and Kilby streets. The site with other adjoining land is now covered by the " Exchange Building," so called. The clearings were made in this room until the association removed to its present more commodious and convenient quarters at (iii State street on October 'i^, 1883. Of the orip'inal officers Franklin Haven is the sole survivor.

The Clearing-house commenced operations March 39, 1850. The following banks, twenty-nine in number, - the constituent members of the association - participated in the first day's clearings:

In June, 1850, the Globe, National and Maverick Banks joined the association. The Freemans and Boylston became members June 1, 1857; the Hide and Leather in Ma}', 1858; the Bank of Mutual Redemption in October, 1858; the Bank of the Metropolis in November, 1858; the Safety Fund (now First National) in February, 1859; the Revere May 10, 1859; the Bank of the Republic February 5, 1800; the Continental and Mount Vernon November 14, 1800; the Third National June 1, 1864; the Everett National and National Security April 1, 1808; the Broadway National in February, 1870; the National Bank of the Commonwealth in June, 1871; the Central National in May, 1873; the Manufacturers' National in July, 1873; the Fourth National in July, 1875; the Metropolitan in August, 1875; the Merchandise in November, 1875; the Lincoln in 1883; the Mechanics' and Commercial in 1888. The Globe National and Maverick Banks were represented in the original organization, but did not perfect their membership until later. The Mechanics' Bank was expected to join as number thirty, but did not actually enter until 1888, when it came as in number fifty-five, the original number thirty reserved by it never having been used. The Bank of the Metropolis, number thirty-eight, ceased to be a member and discontinued business as a corporation in 1863, the proprietor, >S. A. Way, continuing as a private bank under the old name. The Maverick Bank, number thirty-five, failed and was expelled from the association November 2, 1891. This is the first and only failure that has ever occurred among the banks associated in the Boston Clearinghouse. Great care has generally been exercised in admitting banks to the privileges of the association.

In 1876 A. I. Benyon, who had been cashier and then president of the Exchange Bank, was removed from the presidency of this bank because of alleged irregularities if not criminal practices. Public (mercantile and business) opinion at the time was considerably divided as to the degree of his moral culpability ; at any rate, there were enough who had confidence in Mr. Benyon, to enable him and others within about a year, on November 12, 1877, to establish the Pacific National Bank, of which he was president. The Clearing-house Association retused first in 1877 and again in 1878 to admit this bank into its membership, and the Pacific was obliged to clear through another bank. Although this action was said by many to be because of ill-advised personal feeling against Mr. Benyon, it was fully justified by the result, as the bank suspended in November, 1881. The bank (its affairs having been partially adjusted) resumed business March 18, 1882, but was for the third time refused admission to the Clearing-house and continued only until May 20, 1882, about three months, when its complete failure brought ruin to a number of well known persons. The examinations that followed developed the rascality of Benyon, who was thenceforth a fugitive from justice; but the effect of the failure upon the business community in general was said to have been by no means as serious as it would have been, had not the action of the Clearing-house kept this bank from ever obtaining the status of the other banks, by allowing it to come into the association.

Bos Ton Cle A Ring- Ho Use

The whole number of different banks that have belonged to the Clearing-house since its organization has been fifty-five, and the present number is fifty-three, with a capital of $52,700,000.

Besides the banks belonging to the Clearing-house forty-two other banks and trust companies efi^ect their exchanges through members of the Clearing-house, so that its transactions now (April, l.S'.ili) include the exchanges of ninety-three banks with a capital of about $()-to,()00.()0. The banks outside thus availing themselves of the Clearing-house, their location and clearing agents are as follows:

Private banks were not formerly admitted to the privileges of the association, either directly or indirectly, these privileges being restricted to incorporated banks. The only exception ever made until recently was in the case of Way, Warren & Co., doing business under the name of the Bank of the Metropolis, which, havang formerly been a member, was allowed in 1800 to clear through the Hide and Leather National Bank.

The Clearing-house had been established only about a year and a half when the financial crisis of 1857 furnished an additional demonstration of its necessity and usefulness. Many of the banks of New York city suspended specie payments October 13, 1857, and the residue with those of Boston suspended October 14. On this latter date the Clearing-house Committee met and resolved to recommend to the associated banks as an aid in effecting their daily settlements that the bills of any of the associated banks be received in liquidation of their daily balances, instead of specie, within the following limits :

Any excess of balances above these figures was to be paid in specie as usual. The notes so received in settlement of balances were to be sent to the Clearing-house with the exchanges of the next day, and the committee was to have the right to call itpon any bank for satisfactory collateral security to secure the payment of its bills so received, these bills being so received and held at the joint risk of the associated banks in proportion to the amount of their respective capitals. The interest on the notes so paid in was to be settled daily in the payment of balances. An agreement embodying these recommendations was drawn up and signed by the banks. This measure produced at once a favorable effect in enabling the banks to extend a degree of aid and accommodation to their customers which they could not otherwise have done. The moral effect of such a step in checking the panic was also important. The results were most satisfactory and fully met the expectations of its projectors. The Clearing-house report of 1S5S saj's: " By no other form or association among the banks could such a spirit of harmony and concert of action have been inspired and kept in being as that which grew out and resulted from our present clearing-house system, and under which we feel confident much evil has been averted that otherwise must have been felt in our business circles."

For the purpose of avoiding the inconvenience and risk of handling coin in paying balances, the Clearing-house early in its history adopted the policy of making one of its members a depository to receive coin from the other members and issue clearing-house certificates against it to be used in settling the daily balances. The Merchants' Bank was selected as this depository of coin, and it had at the time of the annual meeting, March '21, ISOO, issued certificates to the amount of $14,590,500, of which $11,750,000 had been redeemed, leaving $2,840,000 in circulation, as compared with $3,100,000, March 31, 1859, and $3,425,000, March 31, 1858. The great financial changes wrought by the war, including the disappearance of coin from circulation and the establishment of a legal tender paper currency, made the further use of coin certificates needless and impracticable, and they ceased to be issued. Their place was subsequently supplied by United States certificates of deposit issued pursuant to Act of Congress, approved June 8, 1872, in denominations of not less than $10,000, and expressly made available for the payment of Clearing-house balances, and also as a part of the reserve of national banking associations.

In 1879, after the resumption of specie payments, the Merchants' National Bank was again selected as a depository of coin, and issued Clearing-house certificates for paying balances, first in denominations of $5,000 and later of $1,000. October 19, 1881, it declined to act longer as a depository.

combine their resources for the purpose of assisting the g-overnment, to which the associated banks of the three cities of New York, Boston and Philadelphia in 18(31 advanced $150,000,000 in three amounts of $50,000,000 each, taking in return obligations which they distributed among the people. This was done during the early months of the war and before the government had saicceeded in getting its financial arrangements adjusted to the tremendous efforts it was compelled to make. But for this timely relief the government would have been well nigh paralyzed for want of funds on the very threshold of the war. Throughout the great struggle the clearing-house machinery gave strength and regularity to the nation's financial operations, which were strikingly in contrast with the conditions prevailing during the war of 1812, when no such bulwark to our financial system existed.

The value of union and organization among the banks in the Clearing-house was strikingly illustrated during the financial crisis of 1873. The storm, which culminated at New York on September 18, 1873, in the failure of J. Cooke & Company and other large banking-houses, did not begin to produce serious disturbances in the money market of Boston until the latter part of September, when a steady drain of greenbacks, in payment of checks from New York and other cities, set in, which threatened speedily to exhaust the bank reserves. With a view to the highest utilization of their resources, a meeting of the presidents of the banks of Boston was held at the Clearing-houise on Saturday afternoon, September 27, 1873, at which every bank in the city was represented. After some discussion the following resolutions were unanimously adopted :

Whereas, the banks in all the large cities in the United States have deemed it prudent and expedient to suspend currency payment for large amounts, therefore.

Resolved, That the Boston banks, as a precautionary measure for themselves and the mercantile community, and to prevent the consequent drain of currency from them, do, from this date and until further notice, adopt the same measure.

Resolved, That a committee of five be appointed by the chair who shall have the power to issue loan certificates to the amount of $10,000,000 upon substantially the same basis as they are issued by the banks of New York city.

In accordance with the last resolution, the chair appointed Messrs. Franklin Haven, George C. Richardson, Benjamin E. Bates, Thomas Lamb, A. I. Benyon, and James H. Beal as a committee to issue these certificates. By Tuesday, September 30, the certificates, which were in denominations of $5,000 and $10,000, began to be issued. Each bank desiring them was required to deliver to the committee acceptable securities, for which it received in certificates 75 per cent, of the face value of the securities less the interest, which was paid for sixty days in advance at the rate of 7^^ per cent, per annum. The banks had the privilege of taking up these certificates previous to December 1, if they desired. Each bank that received the certificates was obliged to guarantee the committee jointly and severally against any loss that might arise from a change in the market value of t!|ie securities held by them as collateral for the loan certificate issued to such bank, and in case of depreciation in the value of the securities, to furnish additional or other securities satisfactory to the committee. For the further protection of their reserves the banks also adopted the practice, which continued to a greater or less degree for nearly two months, of pacing all checks thrcftigh the Clearing-house, and one individual from the country noticing the inscription on his check " Payable only through the Clearinghouse," actuall_y went to the Clearing-house to get his check cashed. The total number of certificates issued to October 30 had reached $4,800,(100, by which time currency which had been previously hoarded had begun to return to the ordinary channels of circulation. The measures adopted by the associated banks proved highly successful in protecting their reserves and in enabling them to extend the necessary assistance to the mercantile community. Their reserve of legal tenders, which was $9,010,300 for the week ending vSeptember 15, and $8,183,- 700 the week following, reached its minimun in the week ending October 30, when it was $7,850,900, showing a loss as compared with September 15 of $1,105,400. The recovery was rapid, and by the week ending, November 3, the reserve had more than recovered its former figures and stood at $0,045,400.

The carrying out of these arrangements involved much labor in the calculation of so much interest and the adjustment of it as between the different banks. At the end of the term for which the certificates were issued, an extension of those outstanding (then about $5,000,000), was authorized for the further period of sixty days, but it was not found necessary to use this privilege to the full extent, and before the end of December the banks had begun to take up and cancel their certificates. Notice was issued that interest would cease on the certificates after Monday, December 39. The legal tender reserve of the banks for the week ending December 15, was $10,789,000, and on the 18th of Decern-

During a portion of this period a remarkable condition of things existed. The banks had suspended currency payments, and loans of currency often commanded two per cent, interest per month. Yet bank notes resting upon the credit of the government were everywhere received on a par with the legal tender currency, thus affording an illustration of one of the great benefits of the national banking system. During this period legal tenders and national bank notes were alike hard to obtain, and frequently commanded a premium of two or three per cent. The currency of the mercantile community for all large amounts consisted for a considerable time almost wholly of certified checks, payable only through the Clearing-house. Without the strength and confidence inspired by the union of the banks in the Clearinghouse, such a circulating medium could never have obtained the credit which enabled it to perform for so long a period the functions of money.

During the severe stringency prevailing in the autumn of 1890, similar loan certificates were again issued. On the 17th day of November, 1890, at a meeting of the Clearing-house Association the following resolution was unanimously adopted.

Resoh't'ii, That a committee of five be appointed by the chair, of which committee the chairman shall also be a member, to receive from banks, members of the association, bills receivable and other securities, to he approved by said committee, who shall be authorized to issue therefor to such depositing banks, loan certificates, bearing interest at seven and three-tenths per cent, per annum, and such loan certificates shall not be in excess of seventy-five per cent, of the market value of the .securities or bills receivable so deposited, and such certificates shall be received and paid in settlement of balances at the Clearing-house.

Resolved, That any loss arising from the issue of loan certificates shall be borne by the banks comprising the Clearing-house Association pro rata, according to the average daily amount which each bank shall have sent to the Clearing-house during the preceding year.

It was also voted that this resolution shall be ratified by the board of directors of the respective banks belonging to the association, and a certified copy of such consent delivered to the chairman of the loan committee.

with this committee securities in accordance with the proceedings of a meeting of the association held November 17, 1890, upon which this certificate is issued.

This certificate will be received in payment of balances at the Clearing-house for the sum of five thousand dollars from any member of the Clearing-house Association.

On surrender of this certificate by the depositing bank above named, the committee will indorse the amount as a payment on the obligation of said bank held by them, and surrender a proportionate share of the collateral securities held.

Any bank desiring these loan certificates was required to deposit the necessary security and also to execute and deliver an obligation in the following form : of the Boston Clearing-house Association loan certificates issued by said committee in pursuance of a vote of said association, passed November 17, 1890, to the amount loan certificates on the terms set forth in said vote, and agrees to pay the amount of said certificate with interest thereon as provided in said vote.

The loan certificates authorized by the foregoing resolution were first issued on November 1'.), 1890, and the last were issued on December 6, 1890, at which latter date the issue had reached its maximum of $5,- 0(J5,000. The last of the issue was withdrawn from circulation on January C, 1891.

In the latter part of October, 1891, it coming to the knowledge of the Clearing-house Committee that the Maverick Bank, belonging to the association, was not transacting business in accordance with sound business principles, they called a meeting of the association, held November 2, 1891, at which the bank was expelled from membership in the association. The comptroller of the currenc}', being informed of the conditi(jn of affairs, sent to the bank examiner to close the bank, which was done Monday morning, November 2.

Boston, Nov. 2, 1891. The National Bank examiner, acting under the instructions of the comptroller of the currenc)% has closed the Maverick Bank.

The Clearing-house Committee of the Boston banks has called a meeting of the members of the Clearing-house at 9.30 a. m. this morning to take action on a proposition recommended b}' the committee, that all the banks composing the association unite in making advances in cash to the depositors of the Maverick Bank.

The Clearing-hou.se Association voted to allow each Maverick Bank depositor a certain per cent, of the money he had on deposit in that bank, on condition that he would leave his book as security that he had the amount of money in the bank, after it had been certified by the bank.

The importance of the Clearing-house Association in sustaining both public and private credit was again demonstrated in a meeting of the associated banks held on Monday, April 24, 1893, to consider what action the Clearing-house would take in reference to sustaining the United States government in its policy of maintaining gold payments for treasury notes. At this meeting George Ripley of the Hide and Leather National Bank presided, and every bank was represented. The following resolution was presented and upon a roll-call unanimously adopted :

The associated banks of Boston, relying upon the ability and determination of the government to maintain gold payments, hereby tender the secretary of the treasury one-half of the gold reserve now held by them in exchange for legal tender notes, and the Clearing-house Committee is hereby directed to carry out the terrnsof this resolution.

This action, the first of its kind taken by any clearing-house association in this country, is a matter of no small importance, and must be reckoned as one of the most patriotic and praiseworthy' steps ever taken by the association.

For about three months past, from June to September, IS'j:!, the countr}' has been passing through a financial ordeal more nearly resembling that of 1873 than anything that has been witnessed for twenty 3^ears. Indeed the conditions have been in many respects similar to those then prevailing. Currency payments, owing to general distrust and consequent hoarding of currenc)', have been partially suspended, and currency has been at a premium of two to three per cent.

The banks of Boston have successfully met this crisis hy resorting to the expedients employed in 1873 and 1890. Loan certificates have been issued on a pledge of securities to the amount of $11, 44,5, GOO, thus enabling the banks to extend accommodations to their customers to a much larger extent than would otherwise have been possible, - another illustration of the very great value and utility of our clearing-house machinery.

The issue of certificates began about July 1, and the amounts outstanding, as shown by successive statements of the associated banks of Boston, have been as follows :

The issue reached its maximum August 20. The acute stage of the crisis is now apparently past, and the banks are rapidly surrendering their certificates, over $3,000,000 having been withdrawn within the last week covered by the above statement.

The Clearing-house Association has had four presidents, as follows: Franklin Haven, 1850-59, three years; Daniel Denny, 1859-71, twelve years; James H. Beal, 1871-88, eighteen years; George Ripley, 1888 to date, five years.

Its first secretary was William Thomas, who held the office three years to March 31, 1859, when he was succeeded by Charles G. Nazro, who held the position eleven years until March 31, 1870. He was sue- ceeded by Henry B. Grove, then manager, since which time the offices of secretary and manager have been combined in the same person. Mr. Snelling succeeded Mr. Grove on the death of the latter in 1877. The following named bankers have served as members of the Clearing-honse Committee :

Andrew T. Hall, 1856-72, sixteen years; Waldo Flint, 1856-57; Thomas Lamb, 1850-83, twenty-seven years; A. D. Hodges, 1856-79, twcnt3'-three years; Benjamin E. Bates, 1856-78, twent3'-two years ; J. Amory Davis, 1857-66, nine years; S. H. Walley, 1866-78, twelve years; John Cummings, 1873-86, fourteen years; H. A. Rice, 1878-81, three years; A. W. vStetson, 1878-83, five years; Wm. Perkins, 1879-83, four years; Geo. Whitney, 1881-8-1, three years; R. E. Demmon, 1883- 88, five years; C. O. Billings, 1883-88, five years; C. A. Vialle, 1883-86, three years; .S. A. Carlton, 1884:-85; Geo. Ripley, 1886-88; G. S. Bullens, 1886-90, four years; W. S. Blanchard, 1887-91, four years ;T. N. Hart, 1888-90; T. P. Beal, 1888-92, four years; A. L. Newman, 1889- 93, four years; Moses Williams, 1890-93; Phineas Pierce, 1891-93; Franklin Haven, jr., 1891-93; John Carr, 1892-93; S. N. Aldrich, 1893. The Clearing-house has but two managers, Henry B. Grove, whose term of service extended from the organization of the Clearing-house in 1856 to his death in April, 1877, a period of twenty-one years. He was succeeded by Nathaniel G. Snelling, who had been assistant manager from 1861 to 1877, and who still continues in service as manager, having been officially connected with the Clearing-house for about thirty-two years. The assistant managers have been Nathaniel G. Snelling, 1861-77; Fred S. Hodges, 1877-79; C. W. Esterbrook, 1879- 85 ; Charles A. Ruggles, 1885-93. Eben Staniford has served as clerk from the organization of the Clearing-house in 1856 to the present time - a period of thirty-seven years, being the longest term of service of any person ever connected with the association.

The present officers of the association, elected March 31, 1893, are as follows: President, George Ripley of the National Hide and Leather Bank ; secretary and manager, Nathaniel G. Snelling ; assistant manager, Charles A. Ruggles; clerk, Eben Staniford; Clearing-house committee: Phineas Pierce, Moses Williams, Franklin Haven, jr., John Carr, S. N. Aldrich.

The expenses of the Clearing-hou.se amount to about $18,000 annually, as compared with aboiit $16,000 in 1877-78, and $13,000 in 1867-08, when the exchanges were less than two billions, as compared with upwards of five billions during the last year. In either case the expenses

The regular clearing-house year ends March 31, but the following table shows the number and capital of the banks associated, and the clearings and balances by calender years, which for some purposes is more convenient:

When it is stated that the annual exchanges of the Boston Clearinghouse amount to nearly three times the total annual foreign commerce of the United States, and that the total exchanges to date represent about fifty-five times the annual aggregate of the nation's imports and exports, some idea may be formed of the important place which this institution occupies in the commercial world.

Savings Banks

The savings bank system of Massachusetts really commenced in 181G, when the Legislature chartered the Provident Institution for Savings in the town of Boston. Since then, under the fostering care of the State government, the idea has grown and spread, so that at the present time there are in the State one hundred and eighty-four savings banks and institutions for savings, with combined assets of $415,- 898,159.44, which if divided among the people of the Commonwealth, on the basis of the United States census of 1890, would give to each person a sum exceeding $185. This accumulation is a vast sum and enters largely into the construction and basis of the financial interests of the State. It is the result of the good management of these institutions under the guidance and control of the vState government, a control which has sought to keep the investments as near to absolute safety as is within its power. Such has been the fidelity .shown in their management that of the hundreds of millions of dollars deposited in these banks since 1816, but one-seventh of one per cent, has been lost from failure and discontinuance of banks. The increase in the deposits of all the banks of the Commonwealth in 1893 over 1891 was $23,493,470.54, the largest for any year in the history of the banks except 1870 and 1871. The increase in number of deposits was 200,- 545, and in the amount deposited $9,130,099.07. This result is very gratifying, for there is no institution that can care for the savings of the poor man with greater safetj^, with more intelligence, and so little expense, and at the same time earn a greater return on the deposit consistent with safety. It is worth}' of note, in this connection, that though the assets of the savings banks are $415,898, 159. 14, the expense of investing and caring for this vast sum is only $936,829.59, or less than one-quarter of one per cent.

The following account of the Provident Institution for Savings, as well as the deductions from a valuable experience and close observation of the savings bank system, both in the United States and abroad, was written by Col. Henry Lee :

Provident Institution For Savings

" The first savings bank in this country to do business was the Philadelphia Savings Fund Association, in November, 181C ; it started before it was incorporated.

" On the 13th of December, ISlii, the Provident Institution for Savings was incorporated. The forty-eight persons* named in the act of incorporation included the lieutenant-governor, the United vStates marshal, two judges, four lawyers, three clergymen, thirty-two merchants and tradesmen and five mechanics, some of them eminent, all of them respectable citizens.

"The first officers were William Phillips (lieutenant-governor), president; James Prince (United States marshal), treasurer; and James Savage (lawyer), secretary.

" There is a tradition that the bank was founded partly at the urgent request of good Bishop (afterwards Cardinal) Cheverus, - that his people (as he called his flock) might have a place of deposit and so not spend or lose their little savings, and that a few years later, also at his request, the partial withholding of earnings and five years' surplus dividends were adopted to induce these same people to keep, as well as to put their money into the bank.

"Founded as a charity- by thoughtful, conscientious, disintefested men, it has steadily developed for seventy-seven years from 9G1 accounts at the end of 1816, with a deposit of $70,000, to 90,000 accounts at the end of 1892, with a depo.sit of $35,590,000, and during this period not the loss of a dollar by dishonesty. The average deposit at present is $3S8. The range is from the minimum received, $1, to the maximum

2 Bishop John de Cheverus arrived in Boston in October, 1796, at which time there was but one Catholic priest in the city, and but few adherents of the Catholic faith. A man of scholarly attainments, of kind and lovable ways, he drew around him men of all shades of religious beliefs, and exerted a wide influence for good. In 180S he was appointed Bishop of Boston, and after more than a quarter of a century of earnest and effective work he was recalled to France in 1823 and made Bishop of Montauban. He died in 1S36, a short time after having been created a cardinal archbishop.

"The bank, in starting, paid five per cent, per annum on its deposits; later the rate was reduced to four per cent., and in addition to this regular dividend an extra one paid every five years, as mentioned above, often amounting to an additional four per cent., making an average per annum of from seven to eight per cent, to the depositors of that date, if their mono)' had lain there the whole five years, and proportionatel)^ to those whose money had lain a fraction of that period. As these dividends, unless called for, were added to the principal, the depositors received compound interest. More than half of the depositors are either foreigners or children of foreigners, the Irish the earliest and most numerous, and after them the Germans and representatives of all nations. Of late years dividends and interest on funds have declined, and the rate has been reduced to four per cent. Of the amount now on deposit in this bank, say $35,590,000, there are invested in city and town bonds, $7,358,000; bank stock, $1,287,000; railroad bonds, $3,785,000; loans on mortgages (sixty per cent, loaned on assessors' value), $10,001,000; personal, with legal collateral, or three names and collateral (not over one year to run), $10,568,000; loans on public' funds, bonds, stocks, $1,00-I:,000 ; real estate and cash, $!)87,000.

" The paid officers are the treasurer, assistant treasurer, and fourteen clerks, and the annual expenses, including taxes, average onehalf per cent, on the deposits. There are twelve vice-presidents and twent3^-four trustees (in all thirty-six trustees) chosen annually by the corporation. There are about I'^O members of the corporation living out of about 500 members elected from the commencement to the present time.

" The uninterrupted success of this institution is due to the qualitv of men chosen into the corporation, and from that into the board of trustees, but more especially to the board of investment elected yearly by the trustees. This board, composed of nine, including the secretary, meet the treasurer once a week, receive and dispose of all applications for loans, and decide upon investments, and the seventy-seven years' prudent, skillful management of these vast funds b}' unpaid trustees, taken from the busiest, most high priced lawyers, merchants and manufacturers, is one of the most creditable chapters in Boston's history. The directors of a manufacturing company, of an insurance company, of a bank, have a personal interest as stockholders in the

Saivxgs Banks

" The averag-e service of the members of this responsible body has boen ten years, of three of them thirty years; men whose services as trustees, etc., are in demand for all their working hours, but it would he invidious to single out any one of them for mention save Mr. James Savage who may be considered the founder of this great charity, and who, as secretary, treasurer, and president, and above all as president of the board of investment, rendered invaluable service for over forty years. In the face of ridicule and distrust, which deterred many of the leading men from co-operation, and turned back some of the original undertakers, the project might have been abandoned had it not been for his courage and resolution. He made the first deposit of $10 ; he paid the

' James Savage was bom in Boston, July 13, i;84, and was a descendant of Major Savage, who, in 1663, undertook to erect a barricade in the harbor for the security of the inhabitants against a fleet then expected from Holland. This barricade grew in less than forty years to Long Wharf. Major Savage is buried in King's Chapel burying ground. Major Savage's first wife was Faith, daugh-er of Anne Hutchinson. His grandfather, Habijah Savage, was a graduate of Harvard College in '695. He held many civil and military positions. His father was Habijah Savage, a merchant, who married Miss Tudor. In 1795 James Savage received a Franklin medal, and subsequently continued his education at the Derby Academy, in Hingham, and the Washington Acalemy, at Machias, Me. He entered Harvard College, and was graduated in 1S03. He received the degree of A.M. in 1806, delivered the Phi Beta Kappa oration in 1812, and the degree of LL.D. was conferred upon him in 1841. After the completion of his collegiate course he studied law with Chief Justice Parker, Samuel Dexter and William Sullivan, and became a member of the Suffolk bar in 1807. After the organization of the Provident Institution for Savings, in which he was a foremost spirit, he w^as connected with it in an official capacity, until the infirmities of old age had impaired his faculties. July 4, iSii, he delivered the oration before the city authorities. In 1820 he was a delegate to the Constitutional Convention ; 182:; and 1S25, a member of the Common Council ; 1826, a State senator; 1827-28, an alderman. He was one of the founders of the Boston Athenaeum, and one of the editors of TAe Month'y Anthology^ and for many years one of the contributors to The North Atmrican Review, and to the .V('7<' Eftgland Magazine. He was for more than sixty years a member, and for fourteen years the president of the Massachusetts Historical Society, and honorary membership of many literary and historical societies at home and abroad was conferred upon him. Winthrop's *' History of New England, with notes," and a " Genealogical Dictionary of the First Settlers of New England," a'e his literary monuments. He traveled extensively in Europe and the West Indies. During the War of the Rebellion he proved a generous, high-minded and patriotic citizen ; but the death of his only son. Col. James Savage (October 22, 1862), who was wounded and taken prisoner at the battle of Cedar Mountain, proved a severe blow. One of the last occasions on which he spoke in public was in 1864, when the death of Jared Sparks was announced to the Massachusetts Historical Society. He died March 8, 1873. Hon. George S. Hillard has said of him : " Mr Savage's literary labors were given to the early history of New England, wherein in accuracy and extent of knowledge he had no rival. And in his own person he was an illustration of the saying, abcunt studia in mores,'* for his character seemed to have been moulded, in a measure, on his studies. He was eminently a New England product and the flavor of the soil was recognized in all his life and acts. He took from the Puritan fathers of New England all that made them admirable, and rejected all that made them unlovable. He had their religious faith, their inflexible sense of duty, their heroic spirit, their purity of life ; but he had not their narrowness, their austerity, or their bigotry."

first extra dividend for five years out of his own pocket, to be refunded when it could be without disturbing the investments. His faith, his good sense, his aggressive honesty, his independence, combined to estabHsh and maintain the bank upon its proper basis, so that through all th';.=-c years it has been conducted strictly as a charity to the poor and helpless; security, rather than profits, .aimed at.

"Some banks having allowed, and even courted deposits of many thousands, either to swell their assets, or to oblige influential customers, a law was passed in 18TG, limiting deposits to $1,000 each, a limit self-imposed by the Provident Institution from the beginning.

"The withholding of a portion of the income not onh' served to check withdrawals in hope of an extra dividend every five years, but it also furnished a reserve fund to meet losses. But as most banks did not adopt this practice, and as those which did were periodically left destitute, the Legislature recognizing this normal condition, and the need of a permanent reserve to guard against insolvency in the event of a run upon the banks, decreed that from one-eighth per cent, to one-fourth per cent, on the deposit should be set aside annually for a reserve fund. Since 1876, when this law was passed and from oneeighth per cent, to one-fourth per cent, of the earnings per annum added each year to the reserve, no five years' extra dividends have been declared by the bank.

"Unscrupulous persons have imposed upon the bank by opening several accounts as trustees and subsequently withdrawing the deposits without the concurrence of the persons interested. The doubt as to the existence of these beneficiaries has led to a law requiring the trustees to give their names, but it would be safer to insist upon the presence of both beneficiary and trustee when the money is deposited and when withdrawn.

"The accounts are balanced every six months, and are audited and the assets examined every twelve months for the board of investment by a sworn and accomplished auditor, who is changed every two years, and also by the bank examiners and by a committee of the corporation.

"The enormous amount of $;J9:>,000,000 deposited in the savings banks in this State December 31, 1893, might lead one to suspect that the law limiting the individual deposit had been to some extent evaded. But the increase in the aggregate deposits, while irregular, ranging from one-half per cent. 1876-77, to twenty per cent. 1852-53, has been uninterrupted, averaging from 1834 to 1894(1 assume the rate of progress from 1892 to 1894, a period of sixty years), fourteen per cent, per annum.

"The very small addition to the deposits from December, 1876, to December, 1877, of only one-half per cent., may perhaps be ascribed to the law enacted in 1876 fixing the maximum at $1,000 each, and the consequent withdrawal of the large sums dropped by persons who shamefully misused these charitable institutions. The ratio of increase of deposits from 1864 to 1874 was two hundred and forty-seven per cent. ; from 1874 to 1884, twenty-one per cent. This reduction is due to a diversion of savings from the banks to the endowment orders, so called.

" What limit, if any, shall be fixed upon the total in any one bank has never yet been determined. The views of the trustees of the Provident Institution have been expanding since Mr. Savage said ' that if ever the bank should have $10,000,000 on deposit it would be time to close the doors,' until now they have over $35,000,000, and stand ready to receive more.

"If the banks go on receiving- deposits, two questions arise: first, whether the business of considering and making investments and regulating the policy of the bank will not occupy the whole time of the board of investment and involve their being compensated; second, whether the increased assets can be satisfactorily invested without extending the list of possible investments.

" Up to this time the board adheres to the present circumscription of investments,- and anticipates no difficulty in investing what moneys they receive.

"All legislation should be based upon the understanding of the original intention of the founders of this great charity. As savings banks have been long established in Great Britain, and as the whole subject has been very frequently discn.ssed and very thoroughly investigated from 1817 to 1803, it may be worth while to recount briefly their experience and their conclusions derived from that experience.

"Security rather than a high rate of interest is chiefly regarded by the class for whom savings banks were instituted, and interest rather than security by those for whom they were not instituted, has been constantly urged by those entitled to know, and abundantly proved by the increase of deposits of the former and the withdrawal of the deposits of the latter class under the gradual reduction of the rate of interest from four and one-half per cent, in 1817 to three per cent, in 18G1, when the complete security provided by the post-office savings banks, then established by Mr. Gladstone, but allowing only two and one-half per cent, interest, rapidly depleted the old savings banks with their higher dividends but imperfect security.

"The experience in England, as well as in France, Germany, Holland and Switzerland, has further demonstrated that the millions deposited in savings banks prudently invested will not, year by year, yield a higher income than the best government securities, and that as the deposits, and consequently the investment, increases, the difficulty increases, and that the security of the principal is in inverse ratio to the interest.

"An investigation into the workings of savings banks in Great Britain for forty years revealed a loss to the government, who received the deposits of the savings banks, of $22,000,000 on a payment of $1 92,000,000, or about twelve per cent. - about one-third per cent, per annum - a portion of which was incurred by loss of interest on a necessary cash balance, on funds not at once invested, but principally by an invariable loss on the sales and purchases of consols ; and an analysis of the records of our savings banks would confirm this experience, for, as by their fundamental conditions savings banks are bound to receive and repay deposits at the will of the depositors, it is obvious that the immediate or almost immediate investment of deposits as they are received entail the frequent purchase of stock at high prices in prosperous times, when deposits are pouring in, and that immediate repa^'ments of deposits on demand must, conversely, involve the frequent sale of stock at low prices in times of depression, when deposits fall off and withdrawals are numerous. The expense of conducting the banks - rent and salaries, etc. - which in England is defrayed by the one-quarter per cent, difference in rate of interest allowed by the government to the banks and that allowed by the banks to the depositors, would here have to be taken from the interest earned, and "reduce still further the amount credited to the depositors.

" This loss incident to the average transactions of savings banks is especially and wantonly aggravated, not by those who from time to time deposit their surplus earnings only to be withdrawn in case of absolute necessity, but by those who abuse this charity by temporarily depositing large sums in several banks when interest is low and stocks high, and withdrawing as soon as the rise of money and the decline in stocks allow of a more profitable investment.

"To prevent this abuse of savings banks, imposing extra work and responsibility upon unpaid benevolent trustees, and entailing certain loss of assets, no person is allowed to deposit in moi-e than one bank in Great Britain, under pain of forfeiting his deposit, and to prevent fraudulent trusts, no person making a deposit as trustee can withdraw such deposit except in the presence of and with the receipt of the other party. To lessen the loss consequent upon immediate withdrawals and immediate conversion of stocks into cash in times of depression, notice is demanded proportionate to the amount to be withdrawn.

"These are wise precautions, tending to limit the privileges of savings banks to those who need them, and tending to secure to those who withdraw and to those who leave their deposits, repayment of principal and interest ; but there still remains the fact that savings banks are peculiarly exposed to losses without compensating gains.

upon the statistics of many years; tlie value of their investments is not affected by fire or death or disasters by sea, and yet the fire companies with all their accumuhited profits could not withstand a conflagration, nor could the life companies endure a prolonged visitation of the cholera. Much less could any savings bank, without any accumulated profits, and whose range of investments, necessarily limited, and forced upon the market when money is tight, declining rapidlv with every sale, cash any considerable portion of its deposits, principal and interest, and at the same time guarantee principal and interest to the remaining depositors, unless a considerable reserve fund be accumulated out of the interest received.

" A surplus or reserve fund is needed to guard against insolvency from the fluctuations of values and the normal conditions of a savings banks, without anticipating any prolonged panic which might exhaust any reserve the banks would deem reasonable, and drive the savings banks to suspend, as did some of those in Holland a few years ago, owing to the great decline in government stocks ; or to demand an exr tension, as in France in 1848.

" We must legislate for the good of the whole, not for individuals, and a large reserve is essential for the safety of the whole body of depositors.

" The maximum deposit upon which interest is allowed abroad ranges from $-.'()( I in the French to $750 in the English banks. Here it has gradually run up from $500 to $1,000, and while the latter limit seems unnecessarily large, if a low rate of annual dividends is insisted upon and fraudulent trusts prevented, the prowlers who prey upon this charity may be driven away and this advanced limit only availed of by persons who deserve the privilege. In New York one rate of interest is allowed on all sums not exceeding $500, one per cent, less on surplus over $500 and up to $1,000, and one per cent, less on the excess over $1,000.

"The defalcations in the savings banks in Great Britain from 1814 to 1857 amounted to $1,330,000, of which the depositors lost about onehalf, the balance was made up by government and the trustees, but the distrust and recklessness caused by these frequent and wide-spread frauds was out of all proportion to the pecuniary loss. As the most effectual safeguard against malversation, it was enacted that not less than two persons, being trustees, managers, or paid officers employed for this specific purpose, shall be present on all occasions of public business and be parties to every transaction of deposit and repayment so as to form a double check on every cash payment, and this precaution, practiced in many of our savings banks, should be enforced in all of them.

" The responsibility of trustees has been the subject of much discussion and legislation in England, where their function is limited to superintendence and to the faithful transfer of the funds to and from the Government Commission, and not extended, as here, to their judicious investment. At one time trustees were made pecuniarily liable to a limited extent, but at present, as in 1828, they are only accountable for wilful neglect or default.

"The savings banks in Great Britain are subject to frequent unapprized audits and inspections, a process more simple and practicable there than here, because limited to the accounts and cash, the funds being, as I have stated, in the custody of a government commission, but all the more important here as including the value of investments, and perhaps practicable if a board of at least three upright and competent commissioners are selected and adequately compensated for the service.

"An inspection and comparison of the books of depositors with the bank ledgers has been urged as the only thorough mode of testing the accuracy and verity of the entries, but although most desirable it was found to be impracticable except in very small banks. A uniform system of bookkeeping is insisted upon in England, and should be prescribed here, in the interest of the banks, the inspectors and depositors."

William Phillips, the first president of the Provident Institution for Savings, was succeeded by Gardiner Greene. The presidents succeeding the latter in order of service have been as follows: Jonathan Phillips, Peter C. Brooks, William Appleton, James Savage, Francis C. Lowell, John A. Lowell, James S. Amory, William Perkins and Col. Henry Lee, the last named having served since 1887. James Prince continued as treasurer until his death, February 14, 1831. His successors, with time of service, have been Elisha Tichnor, four months ; Gardiner Greene, three years; James Savage, fourteen years and six months; P. W^ainwright, thirty-five years, and C. J. Morrill, the present treasurer, with nineteen years of service. The secretaries to the board of investment who followed Mr. Savage, the first official in that capacity, have been James Bowdoin, Benjamin Guild, Robert C. Winthrop,

William Parsons, Edward Wigglesworth, Amos A. Lawrence, Charles Brown, William T. Andrews, Henry Lee, Francis E. Parker, William S. Dexter, Edward I. Browne and Henry Parkman, the last named having served since 1882.

The following- figures, compiled from the records of the bank, will show the growth of the Provident Institution for Savings from July, 1817, to the same month of 1893:

Institution For Savings In Roxbury

The Institution for Savings in Roxbiiry and Its Vicinity was incorporated Febriaary 22, 1825. The persons named in the act of incorporation were Nathaniel Dorr, Charles Davis, Jonathan Dorr, Isaac Dorr, John Lemist, Enoch Bartlett, Eliphalet Potter, John Bartlett, Samuel ]. Gardner, Joseph Curtis, Ralph Haskins, Samuel Guild, Samuel Dog-gett, John Prince, David S. Greenough, Ebenezer Crafts, Stedman Williams, Benjamin Weld, William H. Spooner, Benjamin Billings and Jonathan Richards. David S. Greenough was chosen the first president of the bank and John Bartlett treasurer. The first board of trustees was composed of A. A. S. Dearborn, Nathaniel Dorr, John Lemist, Edward Bartlett, Samuel G. Gardner, Ralph Haskins, Benjamin Billings. Ebenezer Seaver, Joseph Harrington, Samuel Guild, vSamuel Doggett, Ebenezer Crafts, Benjamin Weld, William N. Spooner, Henry Gardner, Jonathan Richards, David A. Simmons, Sherman Leland and Jonathan Richards.

Following will be found the names of all who have served as presidents of this institution from the beginning to the present time with period of service :

Assets

The number of open accounts at date of foregoing report was 14,317. The amount of deposits for the year ending at that time was $l,:)()(i,- 820, 00, representing 17,629 deposits. During this same period, $1,1()9,869,32 was paid out to depositors.

Warren Institution For .Savings

The Warren Institution for Savings stands twelfth among the 184 savings banks of the State in years, it having been chartered in 1829. It is the eighth as regards the total amount of its deposits, and it can also be said of the Warren Institution for Savings that it has never closed its doors to depositors, and never, since it was incorporated, passed a semi-annual dividend or called in a loan, except for breach of its conditions on the part of the borrower. Its management from the beginning has been conservative, so much so, that at times it has been termed "old fogy, "but the history of the institution shows the wisdom of this careful management of its finances, and among the savings banks of the vState none is considered more safe or substantial than the Warren Institution for Savings, of Charlestown. Many of our prominent citizens have been connected with it since it was chartered, and are to-day, their counsel so shaping its affairs as to promise a long continuance of the able management of the past and present.

Warren Institution for Savings was organized in 1830, and was the first savings bank established in Charlestown, There are in existence to-day in the State but eleven savings banks whose charters antedate that of the Warren, and they are the Provident of Boston, established IS Id; Salem Savings Bank, established 1818; Newburyport Savings liank, established 1820; Roxbury Savings Bank, established 1825; New Bedfcjrd Savings Bank, established 1 835 ; Lynn Institution for Savings, established 1820; .Springfield Institution for Savings, established 1827; Worcester County Institution for Savings, established 1828; Provident Institution for vSalisbur)' and Amesbury, established 1828; Fall River Savings Bank, established 1828; and Plymouth Savings Bank, established 1828.

The act incorporating the Warren Institution for Savings was passed by the House of Representatives February 20, 1829, and received the sig-nature of Governor Levi Lincoln the following day. In the act the names of the incorporators are given as follows: David Stetson, John Sweetser, Loammi Kendall, Elisha L. Phelps, Joseph Hunnewell, John M. Robertson, Lot Pool, James K. Frothingham, Henry Jacques, Simeon Flint, Edward Adams, Joseph Carter, Thomas Pike, Reuben Hunt, John Gregory, Benjamin Brintnall, and Benjamin Whipple.

In the sixty-three years that have elapsed since the first board of officers assumed the direction of the affairs of this institution, many changes have taken place. Of the first board not one is alive to-day.

neither is there a single survivor of the incorporators, or of any of the members of the institution admitted prior to 1830. In 1839 there were admitted to membership James Dana, James Adams, Charles Thompson, William Tufts, Edward Lawrence, Richard Frothingham, Henry K. Frothingham ; the last named is the only one of these now living.

Timothy Walker, the first president, held office until 1835, and was succeeded b}' John Skinner, who held the office until 1840. He was succeeded by Benjamin Thompson, who held the office until 1843. Chester Adams held the office from 1843 to 1850, and Nathan A. Tufts from 1850 to 1855. In 1855 James Adams was elected president, and he held the office a quarter of a century, until his death in 1880. Timoth}' T. Sawyer, the present incumbent of the office of president, was elected Mr. Adams's successor in 1880, he having been a member of the institution since 1840.

The first treasurer of the institution, Thomas Marshall, held the office until 1843, and was succeeded by Henry Jacques, who was treasurer four years - until 1847. vSamuel P. vSkilton next held the office three years, 1847, '48 and '40, and Henry L. Jacques in 1849, '50 and '51. He was succeeded by Joseph F. Tufts, who held the office in 1851, '52, '53 and '54, and next came John Skilton, who held the office eleven years, from 1854 to 18G5. In 1865 George F. Tufts was elected treasurer, and he still occupies that position.

The first secretary of the institution, John J. Fisk, held the office ten years, from 1829 to 1839, and he was succeeded by Thomas Browne, jr., who held the office in 1839, '40, '41 and '42. Henry Jacques then held the office one year, and he was succeeded b}' James K. Frothingham, who held the office from 1843 to 18(i4. Geo. F. Tufts then held the office one year, 1804 to '65, and then being elected treasurer to succeed John Skilton, Geo. S. Poole was elected secretary, and he now holds the office, to which he was elected in 1865.

The following table, giving the number of depositors and the total amount of deposits at intervals of five years since the institution was incorporated, goes to show the gradual increase of the business since the first year of its existence :

The present membership of the Warren Institution for Savings is lU(j, and its officers are as follows, the date against each name denoting the year he became a member of the institution: President, Timothy T. Sawyer, 1840 ; vice-presidents, Henry K. Frothingham, 1830 ; George Hyde, 1840; Henry Lyon, 184(5; John Stowell, 1861; Isaac P. T. Edmands, 1868 ; Nahiim Chapin, 1866 ; trustees, Thomas R. B. Edmands, 1808; John S. Whiting, 1871; Gharles E. Daniels, 1866; Nelson Bartlett, 18:5; John Turner, 1880; Charles F. Fairbanks, 1868; Thomas G. Frothingham, 1870; Everett Torrey, 1868; Charles R. Lawrence, 1875; Willi-im R. Austin, 1886; Nathan F. Tufts, 1875;

The present board of investment, which has, subject to the approval of the board of trustees, the entire charge of the finances of the institution, consists of Timothy T. Sawyer, John Stowell, Nahum Chapin, Thomas R. B. Edmands, Nelson Bartlett, John Turner, Charles F. Fairbanks.

The membership of the institution is not restricted to depositors, section 2 of article I of the by-laws reading .as follows: " Any citizen of this State may be elected by ballot a member of the corporation at the annual meeting, the name of such person having been proposed in writing to the secretary by a member of the corporation one month previous to such meeting ; and any person may cease to be a member by filing a written notice of his intention so to do with the treasurer three months at least before such meeting. No person shall continue to be a member after removing from the State, or becoming an officer in another such corporation."

The following incident goes to illustrate the benefit of savings banks and the rapidity with which deposits will increase if allowed to remain imdisturbed. December 15, 1830, there was deposited in the Warren Institution for Savings by a person the sum of %\i. Since that time it has remained undisturbed, the depositor neither adding to it or withdrawing any portion of thedepo.sit. The interest has been compounded semi-annually, and to-day there stands to the credit of this depositor the handsome sum of $;58.'').7'0.

Hon. Timothy T. vSawyer, the president of the Warren Institution for Savings, is a native of Charlestown, where he has always lived since his birth, January 7, 1817. He was educated in its public schools, after leaving which he entered the employ of an uncle who carried on the hardware and ship chandlery business in Boston, and afterwards carried on the business himself for a number of years. In 1842 he embarked in the ice business as a member of the firm of Gage, Hittenger & Company, afterwards Gage, Sawyer & Company. He remained in this business until 1800, and then withdrew from active mercantile pursuits. Mr. Sawyer has always taken an active interest in matters calculated to promote the welfare and prosperity of his native place, and has been called by his fellow-citizens to fill many places of public trust. When Charlestown was a town he was a member of the Board of Assessors, of the Committee on Finance, and for several years a mem- ber of the School Committee. After Charlcstown became a citv he served several terms in the Common Council and was elected president of that body in 1854, but declined the honor. In December, ISol, he he was elected mayor of the cit}', and served in 1855, "50 and '57. He has also represented the city in both branches of the Legislature. He was chairman of the School Committee nine years, commencing in 1855. He was president of the Mystic Water Board for several years previous to annexation, and after the cities of Charlestown and Boston were joined he held the office until the Mystic and Cochituate Water Boards were joined and made the Boston Water Board, when he was appointed chairman of that board and held the office three years. He was previously appointed a member of the Boston Fire Commission and held the office three years, and in 1882 he was again appointed a member of the Boston Water Board by Mayor Green, and held the office one year.

Mr. Sawyer was largely instrumental in establishing the Charlestown Public Library, which was opened in January, 18(i2, in the upper story of the building now occupied by the Warren Institution for Savings. He was president of the board of trustees of the library from the date of its organization until 1873, when it passed into the hands of the city of Boston. Mr. Saw3'er retains a lively interest in the library and visits it frequently. He was the first president of the Charlestown Trainingfield School Association, in which organization he still takes much interest. His connection with the Warren Institution for Savings dates from 184G. He has been a member of the board of trustees for thirtyseven years and of the board of investment thirty-four years, of which board he is now chairman, by virtue of his office of president, to which he was chosen in 1880, to fill the vacanc}^ caused by the death of James Adams, who devoted twenty-five years of his life to promoting the prosperity of the institution.

The late Mr. Nathan A. Tufts was a member of the board of trustees twenty-nine years ; Mr. James Adams forty years ; Mr. Edward Lawrence forty-two years.

George F. Tufts, the treasurer of the institution, is also a native of Charlestown. In early life he was for some years in the employ of Lane, Lamson & Company of Boston, French goods importers, and afterwards with James Hunnewell in the Sandwich Island trade. In 1855 Mr. Tufts visited the islands and made a trip round the world with the son of Captain Charles Brewer (Charles Brewer & Company). He has occupied his present position of treasurer for twenty-seven years.

Georye ^S. Poole, the seeret;iry, is a brother of William F. Poole, the distinguished librarian, formerly of the Boston Athenseum, now the Newbury Library of Chieago. George S. Poole came to Charlestown from Peabody, Mass., in 1801, and was the first librarian of the Charlestown Public Library. While holding this position he was appointed an assistant in the Congressional Library, Washington, and served there two 3'ears until his election to the office he now fills in the bank, and which he has held for twenty-seven years.

The Suffolk Savings Bank For Seamen And Others

The original title of this bank was The vSaving Banks for Seamen in Boston, under which it was granted a charter by the Legislature March 7, 1833. It was the last bank incorporated prior to the passage of a general law relating to savings banks, and it is a peculiar fact that the word " bank " appears for the first time in connection with corporations of this character in its title, all previous charters having been granted to savings institutions. The first ofHcers of the bank were : Pliny Cutler, president ; Daniel C. Bacon, vice-president ; Thomas K. Davis, secretary; Samuel H. Walley, jr., treasurer; George Hallet, William W. Stone, George W. Crockett, James Means, Josiah W. Blake, Charles Scudder, Peleg Churchill, Charles H. Brown, William B. Reynolds, Benjamin Seaver, William Worthington, Benjamin Rich, Thomas Vose, William Goddard, Alfred Richardson, Enoch Train, William Sturgis, Thomas Motley, Newton Willey, Lot Wheelwright, Nathaniel Dana, William W. Motley, Phineas Sprague, and Henry K. May, managers.

The original object of this bank was " to aiiford greater facilities and inducements for a safe and profitable investment of the earnings of seamen and others connected with a sea-faring life," and its first books issued to depositors bore upon the outside a device in which the words " Sailors' Rights " were prominent, and stated that the office was in "Commercial street adjoining the Market Bank opposite the east end of Market House," a location evidently selected for this class of depositors. But it was soon seen that the restriction of receiving deposits only from such persons, and which was actually a part of its charter, was to materially limit the scope of its usefulness, and as early as May, 1833, a committee was appointed to petition the Legislature for such an amendment as would allow it " to receive money from all persons." The difficulty was removed, however, without special legislation, for in 183-4 a general law was passed regulating all the savings banks in the

Ccimmonwealth, and for the first time placing- them under publie supervision. It has from that time to the present received a large proportion of the deposits made by sea-faring persons, but with the gradual decline of shipping the amounts have been materially reduced, until now these sums form but a small per centage of the total accumulalations. The present title of the bank was secured by a legislative act approved March 1, 1842.

While the foregoing gives the term of office of each individual in the several capacities named, it does not in many cases show the length of time that such persons were or have been connected with the bank. Plin}' Cutler, its first president, was connected with the bank in an official capacity for nineteen years. Thomas Lamb, for forty-one j-ears its president, served altogether for fifty-one years as an officer. Samuel H. Walley served for forty-four years. Charles Henry Parker, its present treasurer, has been connected with the bank for fifty-three years, while among the trustees or managers George Wm. Bond served for fifty 3-ears, and William Perkins for thirty-eight years. Charles G. Nazro, the oldest trustee in point of service, has served for forty-five years, while there are many whose terms of office as trustee range from twenty-five to forty years.

The vSuffolk Savings Bank has been one of the conspicuously successful institutions of its kind in Massachusetts. The total amounts standing to the credit of its depositors, divided into periods of ten years commencing with the 30th day of October, 1841, are as follows: 1841, $261,077.39; 1851, $1,108,262.67; 1801, $2,812,942.03; 1871, $6,167,- 723.17; 1881, $15,009,648 25; 1891, 24,835,468.74. These figures indicate a surprisingly rapid growth, which is still more made plain from the fact that while the growth of all the savings banks throughout the iStati, taken collectively during the past fifty-j'ears, has been about 5,500 per cent., that of the Suffolk Savings Bank has been about 9,500 per cent., an indisputable evidence that it has received its full measure of public appreciation.

The total number of open accounts at date of foregoing report was 59,703. The deposits for the year ending at that time amounted to $5,556,253.00, and the sum paid out to depositors during the same period amounted to $4,843,192.75.

Saj7Ngs Banks East Boston Savings Bank

The East Boston Savings Bank was organized on October 4, 1848. The first board of trustees was composed of Samuel W. Hall, Benjamin Lawson, James Cunningham, Ebenezer Atkins, Henry Brevoort, George W. Brown, Phineas M. Crane, Thomas D. Dermond, William C. Ford, Samuel Hall, Richard Humphrey, Daniel D. Kelly, Donald McKay, Mark Geogins, Stephen Locke, John Pierce, William R. Lovejoy, Joseph Robbins, Noah Sturtevant, George Sturtevant, Richard Soule, jr., William Fittyplace, and O. M. Tufts. James Cunningham was the first president of the bank. Succeeding him was Ebenezer Atkins, then .Samuel Hall, next Phineas M. Crane, the latter being elected in 1808. Mr. Crane was followed by the present president, George T. Sampson. Mr. Sampson has been a trustee of the bank since I860, and his counsel and earnest efforts have always been directed toward promoting the success of the institution. Albert Bowker served as treasurer and secretary from the organization, of the bank until April, 1880, when he was succeeded by the present incumbent, William B. Pigeon. Mr. Pigeon has been with the bank since 1870, beginning as clerk and earning his promotion by efficient service. He is a son of Henrj' Pigeon, the well known sparmaker, and one of the oldest residents of East Boston. The board of investment for 1892 is composed of John Thompson (also vicepresident), Nathaniel M. Jewett, William B. Pigeon, Ebenezer M. Mc- Pherson, George L. Thorndike, Rufus Cushman, and Robert Crosbie. The trustees for 1892 are as follows: George T. Sampson, Henry Pigeon, Frederick Pease, Albert Bowker, Henry B. Hill, John Thompson, Nathaniel M. Jewett, Rufus Cushman, William B. Pigeon, William H. Grainger, Ebenezer M. McPherson, James Smith, George L. Thorndike, Robert Crosbie, Emery D. Leighton, Randall J. Elder, James L. Walsh, Wesley A. Gove, William Waters, jr., Joseph W. Robbins, James Frame, F. A. Woodbury, Peter Morrison, T. B. Grimes, and G. H. Libby.

Boston Five Cents Savings Bank

The Boston Five Cents Savings Bank was incorpurated April 7, 1854, the persons named in the act of incorporation being Edward Edmunds, Rollin H. Neale, B. T. Loring, John E. Thayer, George W. Crockett, Benjamin Bangs, James Lawrence, William Beals, Nathaniel Thayer, Tolman Willey, George W. Chipman, Charles Hudson, Henry Andrews, Charles C. Barry, George W. Warren, George Allen Otis, William P. Mason, Anson Burlingame and Phineas Stowe. The present officers of the bank are as follows: Alonzo H. Evans, president ; William Claflin, Edward Edmunds, Roland Worthington, William O. Grover, James A. Woolson and vS. R. Payson, vice-presidents; Curtis C. Nicliols, treasurer; J. C. Holmes, assistant treasurer; Edward Edmunds, clerk of the corporation. The trustees are: Roland Worthington, William O. Grover, J. H. Cannell, James A. Woolson, E. C. Fitz, Rufus S. Frost, Alonzo H. Evans, Samuel R. Payscm, William Claflin, Nathaniel N. Thayer, Henry F. Coe, William A. Tower, Oliver Ames, S. A. Carlton, William R. Dupee, W. P. Tilton, Leander Beal, Edward Edmunds, E. S. Converse, C. C. Nichols, A. H. Davenport, George Hutchinson, Wilmot R. Evans, Albert A. Pope, and D. Webster King. The president of the bank, Alonzo H. Evans, was treasurer from the organization of the bank to 1874, when, upon the retirement of Paul Adams, he became president. He is one of the best known financiers and bankers of Boston, and is a director of the Winthrop National Bank.

The number of open accounts at date of foregoing report was 130,- 548. There was deposited during the year preceding the report, $5,809,882,86.

Charlestown Five Cents Savings Bank

The Charlestown Five Cents Savings Bank was incorporated April 7, 1854. The present president of the bank, Amos Stone, took an active and leading part in its organization, and was elected one of its trustees and its first treasurer, holding the latter position until 1887, when he was elected to his present position, succeeding his brother, P. J. Stone, who had been president from the incorporation of the bank. Mr. vStone has been a prominent factor in Ihe political and financial histor)- of

Charlestown. When Char]estown was incorporated as a city in 1847) he was elected its first city treasurer and collector of taxes, which office he held for eight years. In the fall of 1855 he was elected treasurer of the county of Middlesex, and held that office for thirty years, until January 1, 1880, when he declined a re-electi(jn. For more than ten years he, as treasurer, with the assistance of the president, performed all the labor of the bank without any compensation. The bank has proved one of the most prosperous and successful in the Conimiinwealth, the result largely of Mr. Stone's efforts in its behalf. A. M. Andrews is treasurer of the bank and Benjamin F. Stacey clerk of the corporation. The committee charged with the investment of its funds is composed of George S. Pendergast, Francis Hall, Emrie B. vStetson, Augustus W. Stover, and Amos vStone.

Franklin Savings Bank

The Franklin Savings Bank of the city of Boston was incorporated March 15, 1801, with thirty-six directors, of whom but two are now connected with the bank, one being the present president of the bank, Frederick W. Lincoln. The first president of this institution was

Osym Brewster, who remained at its head for twenty-six years. Henry Whitteniore served as treasurer for twenty-five years. Frederick W. Lincoln, the present president, elected in January, 1889, has served for seven years as mayor of Boston, including the years from 1858 to 1861, and from 1863 to 1867. He is manager of the Boston Storage Warehouse Company ; a director of the Continental National Bank, and the Boston Safe Deposit and Trust Company, while many of the other officials of the bank are closely connected with the management of national banks in Boston. Ebenezer Alexander has been treasurer since July, 1886, and George A. Fisher has been clerk since January, 1887. The board of trustees for 1892 is composed of the following gentlemen: Alexander Wadsworth, Thonias Gaffield, William H. Baldwin, James B. Richardson, Thomas J. Whidden, Stephen M. Crosby, M. P. Kennard, John C. Haynes, John J. Haley, Chaiies M. Seaver, S. B. Stebbins, James Longley, Otis Norcross, D. R. Emerson, George H. Eager, Curtis Guild, Abraham Avery, O. H. Davenport, Joseph vSawyer, Albert E. Pillsbury, William H. Learnard, Francis H. Hastings, James P. Tolman, William B. Rice, George C. Appleton, William H. Emery, J. E. Whitney, Arthur Hobart, Joseph A. Brown, Jacob A. Dresser, F. W. Lincoln, jr., George V. Leverett, John Avery, Warren S. Dame, Wni. H. Leatherbee, Samuel N. Brown, George H. Phelps, Charles B. Cumings, James Arthur Jacobs, Charles F. Curtis, Henry S. Shaw, S. H. Williams, jr.

This bank for seventeen years was located at 52 Boylston street, but in April, 1893, was removed to the new building erected by the bank at 6 Park Square. This is a six-story office structure, which, in addition to the counting room and offices of the bank on the ground floor, contains thirtN'-five offices, and is one of the best arranged bank and office buildings in Boston.

For the year endinjj at date of foreofoino- report there were received in deposits $1,855,345.53, representing 14,900 deposits; $1, -407,010.13 were paid to 11,440 depositors diu-ing the same period. The number of open accounts at date of report was 16,183.

Brighton Five Cents Savings Bank

The Brighton Five Cents Savings Bank was incorporated March 1801, the incorporators named in the act being Charles Noyes, R. H. Green, H. H. Larnard, David Collins, J. F. Taylor, James Stetson, .Samuel Bigelow, H. W. Jordan, W. W. Warren, James Dana, William Warren, George H. Brooks, John Ruggles and Theodore Matchett. The officers for 1892 are as follows: N. Warren Sanborn, president; Benjamin M. Fiske, vice-president ; George E. Brock, clerk and treasurer. The trustees are N. Warren Sanborn, Benjamin M. Fiske, Seth J. Thomas, W. F. Warren, G. A. Fuller, J. A. Hathaway, J. S. Duncklee, P. Moley, S. N. Davenport, F. G. Newhall, G. F. Parker aud George E. Brock. The condition of the bank is shown by the following report made October 31, 1892:

South Boston Savings Bank

The South Boston Savings Bank was incorporated on March :3, 18613, and organized July 28, of the same year, with the following officers: Henry Souther, president; D. M. B. Thaxter, treasurer; Benjamin Dean, Benjamin F. Bayley, Henry A. Drake, Hiram Emery, Eben Jackson, Samuel Leeds, Harrison Loring, Zibeon Southard, Samuel S. R. Spinney, Alpheus M. Stetson, D. McB. Thaxter, M.D., Lewis C. Whiton, Joseph Whiton, Joseph Winsor, Thomas Leavitt, and Albert J. Wright, trustees. Henry Souther served as president from 18i;3 to 18(i',.i; Frederick McKerson, 1869 to 1877; George E. Alden, 1877 to 1881; Thomas Hills, 1884 to present time. The treasurers have been: D. McB. Thaxter, from 186-3 to 1874; George W. Ellis, 1874 to 1884; and Edward H. Barton, 1884 to present time. Benjamin Dean, who has served as vice-president since 1870, was at the time of the incorporation of this bank a member of the city government and of the lower hou.se of the Legislature, and since that date has been a member of the State Senate and of Congress. Mr. Drake served for many years on the School Committee. The Drake School-house was named for him. Messrs. Emery, Jackson, Leeds, Spinney, and Whiton have served as aldermen of Boston, and Messrs. Southard and Leavitt as representatives in the Legislature. Mr. Nickerson was one of the early directors of the L^nion Pacific Railroad, and has been upon boards of management of South Boston banks. Mr. Alden served as president during the panic era, and by his careful and wise management safely carried the bank through this rough financial period. Mr. Hills was a member of the Massachusetts House of Representatives in 1860, 1861 and 186.5, and was elected an assessor of Boston in April, 1865, and since 18(i7 has been chairman of the board.

The South Boston Savings Bank is located in the midst of a population of wage earners, and has been of great service to the community. At the anniial meeting in January, 189-2, the deposits amounted to $2,500,019, and assets $2,095,499. It had at this time 18,992 open accounts. During the preceding years it had 18,8T9 deposits, amounting to $759,141, and payments were made to 11,471 depositors, amounting to $001,392. Semi-annual dividends of two per cent, have been regularly declared for man)' years past.

The Eliot Five Cents Savings Bank

William S. Leland was president until his death in 1809. He was succeeded by Henry Bartlett, who died in 1872, and was followed by William C. Appleton, who continued to hold the position until his resignation, April 13, 1880. John Carr, the president of the First National Bank, was chosen Mr. Appleton's successor, and has since served in this capacity. He is also president of the First National Bank of Boston.

Charles R. Washburn, the first treasurer of this institution, served until his resignation, July 0, 1808. He was succeeded by George C. Leach, who held the po.sition until his death on July 30, 1889, after which the present treasurer, Frank E. Granger, was chosen. Mr. Granger has been in the service of the bank for twenty-one years.

Sailings Banks. 4-37

George H. Monroe, the first secretarj', resigned April 13, 18C9, and was succeeded b)- John F. Newton, who has continued to serve in this capacity up to the present time.

The other officers of the bank, serving at the present time, are: Vice-presidents, Ivory Harmon, and Charles Whittier; trustees: John Backup, Judson Baldwin, L. W. Morse, Gorham Rogers, F. O White, George S. Curtis, Isaac Y. Chubback, Ivory Harmon, John Carr, S. B. Hopkins, Charles Whittier, William (). Curtis, Joseph Houghton, Timothy vSmith, William ,S. Leland, Francis A. White, Edward G. Morse, Henry M. Harmon, G. C. George, John F. Newton, Frederick Guild, and Walter R. Means.

Boston Penny Savings Bank

The Boston Penny vSavings Bank was incorporated April 0, 1804. The incorporators named in the act were Amos B. Merrill, Edward A. Raymond, Pliny Nickerson, Alden »Speare, Moses Kimball, Albert J. Wright, R. K. Potter, Zibeon Southard, John P. Robinson, George H. Davis, Job A. Turner, Joseph F. Paul, Jesse Holbrook, A. A. Ranney, C. A. Richards, Judah Sears, Hiram Emery, Benjamin Smith, Charles G. Greene, Francis J. Parker, William Brigham, vStephen Smith, William F(jx Richardson, George Eaton and Joseph T. Bailey. The officers of the bank for 1892 are as follows: George W. Pope, president; Pliny Nickerson, Nathan Crowell, J. A. Paige, John Sweetser, Asa H. Caton, W. A. Rust, J. y. A. Brackett, Frederick Allen, Richard Leeds, J. H. Hathorne, John J. McNutt and Dexter N. Richards, vice-presidents; Henry R. Reynolds, treasurer and clerk of the corporation. The trustees are John Goldthwait, Frank B. Thayer, J. A. Pray, T. N. Hart, J. D. Morton, E. P. Wilbur, Charles L. Damrell, B. F. Rollins, H. S. Potter, Henry R. Beal, George Nowell, Francis H. Williams, F. K. Piper, Silas W. Loomis, A. H. Higgins, James D. McLellan, Charles H. Crump, Franklin Crosby, M. Everett Ware, J. L. Whiting, Charles C. Harvey, Joseph H. Goodspeed, George B. Woodward and James L. Pope.