The Savings Bank in the School
Fergusson & Mitchell Dunedin Princes Street Printers And Stationers.
Notes In Support.
1.—"Habit makes everything easy and casts difficulties upon the deviation from a wonted course."—Lord Brougham.
2.—" A mind trained to reflect on consequences, to guide conduct, and to forego immediate enjoyment for the sake of greater good to self or others, may he produced without reading or writing, and is a far nobler product of education than the mere power to read or write, however neat the penmanship, or correct the pronunciation."—Dr. Hodgson, at the Social Science Congress, 1873.
3.—"Instruction means communicating knowledge; education implies the repetition of certain modes of action until they have become habits,...... Train up (educate) a child in the way he should go, and when he is old, he will not depart from it says Scripture; but it does not promise the same result from merely instructing the child."—Geo. Combe, in his Essay on Education.
4.—"The power of enjoying the present without anticipation of the future or regard of the past, is the especial privilege of the animal nature, and of human nature in proportion as it has not been developed beyond the animal."—Geo. MacDonald in Robert Falconer.
5.—"What we contend for is this, that habits of prudence and forethought in money matters are far from being common, and that to endeavour to encourage them, is one of the most practical forms, which a really thoughtful benevolence can assume, that a large part of the suffering which we all deplore, is caused by want of habits of economy and forethought, and that the habit of saving, so as to be beforehand with the world, if it is to be acquired at all, must be acquired early,"—Lord Derby, on Thrift.
6.—"To teach habits, is the very master power of education,"—Mrs. W. Gray, at the British Association for the Advancement of Science, 1874.
7.—"Education means something more than merely learning lessons out of a book; and habits, early implanted, last longer even than leases, districts, or towns."—Quoted by Dr. Hodgson from John Hollingshead in Ragged London.
8.—"Never treat money affairs with levity: money is character."—Quoted by Smiles, in Self Help, from Sir E. Bulwer Lytton.
9.—"Action in conduct and in work, is at once the practical expression of the character and the intellect, but finds little room to show itself in the ordinary systems of education,"—Fröbel's Kindergarten Schools.
10.—"L'école ne doit pas seulement instruire, elle doit aussi élever les enfants, et nous insistons sur l'épargne, comme moyen d'éducation, comme instrument de moralisation,"—La Caisse D'Epargne dans les Ecoles de Gand.
11.—"The extent to which teaching and training can create habits of saving and self-denial, will be seen by comparing the conduct of a well informed and prudent man with that of the untutored savage...... We have no hesitation in enumerating this quality (habit of saving) among the virtues, inasmuch as its prevalence is indispensable for individual and national well-being,"—Richard Dawes, M.A., Dean of Hereford.
The Savings Bank in the School.
Mr. J. G. Fitch, of London, one of her Majesty's Inspectors of Schools, on a recent visit to Ghent, made himself familiar with the details of a remarkable experiment now being carried on in connection with the schools of that city. The results of his observations he contributed in a paper to Macmillan's Magazine, and of which, the present pamphlet is an adaptation to suit the conditions of life in the Colony, as distinguished from those in England. Here and there, remarks have been suppressed or added as occasion seemed to require; or the phraseology has been merely altered by some slight turn of language to suit existing circumstances. The paper is now published with the desire of enlisting the active sympathy of all who are interested in the grand work of education, and more especially with the earnest hope that it may be the means of diverting attention to that particular phase of it which may be called "moral," the cultivation of which, in the school—to judge from the almost entire absence of allusion to it in the usual codes—is deemed unnecessary, or at least impracticable. By the introduction of the Savings-Bank into the school, an opportunity would be presented which, from information already gathered, the more intelligent of our teachers would gladly avail themselves of, as a means by which they could foster and encourage the formation of habits that would have a life-long influence for good, in those whose training has been committed to their care.
Mr. Fitch sets out by remarking that prudential warnings against thriftlessness and waste, have become so trite, and devices for encouraging the practice of saving are now so familiar to most of us, that a little diffidence may well be felt by one who ventures to again expatiate on this well-worn subject. Not only in the chief cities of the colony, but in remote townships page 6 and far "up-country"—be that north or south, or east or west—New Zealand is far from behind in having its Savings-Banks, Building Societies, and numerous other provident associations, and few even of the far out-lying districts remain long unvisited by the Government lecturer on the advantages of life assurance; but the extent to which any or all of these, influence the habits of the people as a whole, is comparatively insignificant. The proportion of earnings drawn from immediate consumption and reserved as part of the capital of the future is very small, and the number of persons who habitually save is relatively still smaller. The constantly recurring instances of pecuniary demands upon us for the support of families suddenly plunged into the depths of poverty by the death, or temporary suspension from work by accident or illness, of the bread-winner of the household, furnish ready proof of this. It would seem as if all the economic truisms about the sin of improvidence and the duty of saving were spoken to the winds or written on the sands of the sea-shore, so insufficiently are they in practice recognised. The experiment in the Belgium schools furnishes a forcible and striking example of the triumphant results of practice during a period of six or seven years, over many times that number in endeavouring by precept merely, to bring about similar results. It is, in fact, a bright and happy illustration of the favourite motto—"Deeds, not Words."
Ghent is a thriving town of about 121,000 souls; it contains a Free (i.e., a non-clerical) University and many Primary Schools, which are said to be very efficient, and are under the supervision of a Communal Council. This Council, though it sustains the schools and periodically inspects them, does not dispense with voluntary aid, and two important societies—the Société Caller and the Cercle pour l'Encouragement de l'Instruction Primaire—co-operate with the Council, by the offer of prizes in the schools and by various forms of stimulus and help to the teachers. Some seven years ago it occurred to M. Laurent, the Professor of Civil Law in the University, that much might be done through the agency of the Primary Schools to familiarize the people while young with habits of economy and forethought. Accordingly he called the teachers of the Ghent Public Schools together, explained to them his plans, and page 7 having inspired them with some of his own enthusiasm on the subject, proceeded, with their full concurrence, to visit the schools one by one, in order to give simple economic lessons to the children. He went from class to class enforcing and illustrating the advantages of saving, and showing how it might be practised. A plan was devised by which the teacher of each division undertook to receive the little savings of the children from day to day, even a single centime (about the tenth part of a penny) at a time. As soon as the deposits of a pupil amount to 1 franc (10d.) he receives a Savings-Bank book, and a deposit account is opened in his name with the State Savings-Bank, which gives interest at the rate of 3 per cent. Each school also opens at the Savings-Bank its own separate account, in which all the smaller deposits are placed from day to day, the pupil's deposit being transferred under an arrangement with the bank into his or her own name as soon as it amounts to a franc. Simple books and cards of account are provided by the administration of the bank, and the children receive duplicates to be carried home from time to time for the information of their parents, but generally to be preserved at the school. The signature of a parent or guardian is required whenever any money is to be withdrawn.
By these simple arrangements the opportunity of making little savings was brought closely within reach of every child of the Ghent Schools, and the moral influences of gentle and kind persuasion were brought to bear by Professor Laurent and the teachers with singular success. The response made by the children and the parents to his appeals, has been marked during the last six years by an emphasis and a steady persistence, which are well deserving the attention of all who have the future well-being of the young people of New Zealand at heart.
The public schools of the city of Ghent fall into four classes: those most numerously attended are the Free Primary Schools, maintained in great part at the expense of the Communal Council. In these there are 4,315 boys and 3,674 girls, in all 7,989. Then there are the Ecoles Payantes, primary schools of the same educational character, but not gratuitous, and designed for children of a higher social rank. In these there are 1,079 scholars. In the Ecoles Gardiennes, or Free Infant page 8 Schools, there are 3,039 children, and in the Adult Schools, which are held in the evening or on the Sunday, there are 3,285 men and women under regular instruction. Out of this total of 15,392 pupils, no less than 13,032 are this year in possession of accounts in the Savings-Bank. The uniformity and steadiness with which the system has taken root in the schools may be estimated from the following tables.
Thus the average sum now standing to the credit of each depositor is about 35 francs. It will be seen that relatively to the numbers, the largest success has been attained in the schools of the first class, the scholars in the ordinary juvenile schools being necessarily more amenable to influences of this kind than those of the second class, older and more thoughtful than those of the third, and with habits of extravagance which, if acquired at all, are less confirmed than those of the fourth. The work has been done without Government page 9 authority or pressure of any kind, but simply through the energetic initiation of one earnest man, aided by the sympathy of the teachers and local managers. The reports show that there is also a steady growth in the interest with which the parents regard the experiment. At first the act of economy was mainly that of the child, who was induced to put by the half-pence he would otherwise have spent to indulge his appetite. Now, children are often intrusted by their parents with small sums expressly for the purpose of being added to their store. And the general result, that in a single town of moderate size upwards of 10,000 children have opened separate accounts in the Savings-Bank, and that nearly £15,000 are deposited in their names, is one which is full of encouragement to the thoughtful philanthropists who devised the plan, and which has already produced a very marked effect on the social and moral life of the working classes of Ghent. The experiment has created great interest throughout Belgium.* In Antwerp, in Bruges, and in the the rural districts, successful efforts have been made to secure the adoption of the same plan, and last year a new association for the special encouragement of saving has been formed under distinguished auspices, with its head quarters at Brussels, and designed to operate on all the Communal and State Schools of the country in a systematic manner.
* A mutual friend had requested Professor Laurent to forward to a correspondent in New Zealand the latest intelligence concerning his interesting work. Writing in March of the present year, he says, "ll m'est impossible de donner des renseignments statistiques sur le mouvement de l'épargne, puisque il se répand partout par une action individuelle sans l'intervention du gouvernement. Je sais seulement que l'épargne à l'école fonctionne dans les Pays Bas, dans le Grand Duché de Wurtemburg, en France, en Italie et dans quelques parties de l'Allemagne." Mr. Fitch also mentions in a recent letter, that since the publication of his paper, every day brings him letters expressive of interest and of further enquiry concerning the movement. See also the Leisure Hour, for October of last year.
It is surely unnecessary to dwell on the significance of these humble but useful efforts in their bearing on our own social and industrial life in the colony. Our labouring classes are better paid than those of any other country, but they are not richer, perhaps with one exception—the ploughman or yearly agricultural servant—and they do not as a rule economise their resources, and a very small proportion of them make provision for the future. The same remarks may apply to numbers of tradespeople, and many others who regard their social standing as above that of either the tradesman or artisan. Reckless spending is the rule. Compared with Great Britain or the Continent of Europe, money is a plentiful commodity with everyone, but by very many never realized or capitalized in any of those permanent forms by which the dignity of family life is established and sustained. But until a man begins to care about this and some of the many substantial comforts and blessings which accumulated savings can alone procure, he has no motive to put forth his best energies to become a first-rate workman, a respected tradesman, or a confidential and trustworthy clerk, but every temptation to degenerate into a drunkard or a gambler. The degree with which a man cares about such things forms, in fact, the measure of his prosperity, and his self-respect is the surest guarantee for his future industry and happiness. With those who receive their income in the form of weekly wages, economy and page 11 thrift may be somewhat difficult, but they are also more necessary when the horizon of a man's resources and of his expenditure is narrowed by the inevitable circumstances of his life; and a man is enriched and ennobled in just the proportion in which this horizon is enlarged, and in which he learns to see the actions and the sacrifices of to-day in their relation to to-morrow. Dr. Johnson's famous sentence, "Whatever makes the "past, the distant, or the future predominate over the "present, advances us in the dignity of thinking beings," expresses with characteristic solemnity an indisputable truth. The difficulty, however, is to convert a truism like this into a practical maxim for the conduct of daily life.
It is not in the natural order of things for employers, even when they see the need of frugality and temperance, to take measures for urging the duty upon those they employ. In this direction, in the home country, many and various efforts have been made, some employers going so far as to offer a bonus of so much per cent, over that allowed by the banks upon all sums deposited, but nowhere has the experiment succeeded. Motives, it is supposed, were misinterpreted, and the deposits that had been made on the first impressions were generally withdrawn. Perhaps, however, the true cause of failure might be attributed to the fact that, when first yielding to the proposals, the workmen acted under persuasion, not conviction—teaching had begun with them too late in life.
* Messrs. Reith and Wilkie, Booksellers, Princes-street, Dunedin, have kindly agreed to procure a supply of these books.
It may seem like special pleading to identify very high qualities too closely with so worldly a matter as the management of money; yet in truth there is no one problem or duty of life that calls into exercise so many moral attributes, or connects itself in so many subtle ways with the growth of the whole character. He who said "that a right habit of getting, of saving, "and of spending money argued a perfect man," was scarcely guilty of exaggeration. From, the very beginning of responsible life the inclination to spend the whole of what we possess, becomes a potent temptation to spend or to enjoy a little more than we possess. And the records of our law courts and our police courts show that impecuniosity and extravagance are the parents not merely of much of the crime of the world, but of shiftiness, of evasion, of false-hood, and of the sins which enfeeble and degrade men most. The best remedy for this evil is to train children very early in the habits of distinguishing between real and unreal wants. "Artificial wants," says M. Laurent in his pamphlet, "which are at once "the sore and the curse of riches, are not unknown "among the humbler classes." Everyone who can refuse to satisfy one of these, however slight, or who puts aside any portion, however small, of the resources of to-day to make part of his supply for future use or enjoyment, is, in a sense, a capitalist; and in this sense not only every man and woman, but every boy and girl who has the command of a single luxury, should be encouraged to become a capitalist.
It may be argued that it is cruel and unwise to interfere with the joyousness of childhood by prematurely burdening the mind with thoughts of the future; but I do not believe that the objection, however natural on a first view, would long be seriously maintained by any careful thinker. The penurious spirit, the calculating, page 14 hard, and grasping habit of mind, has doubtless its dangers; but it is not the fault to which colonists are at all prone, nor against which it is needful to take any elaborate precautions. The tendencies of colonial life are unquestionably in the opposite direction; Our dangers are of another kind; and, in truth, we are not encouraging a hurtful egotism and suppressing generous instincts when we invite children to set aside the pence with which they would otherwise satisfy a craving of the appetite. To spend money for such a purpose is in no sense more generous or unselfish than to reserve it for some future gratification in the choice of which thought and judgment shall be exercised. Both are self-regarding actions; but the one has elements of sacrifice and of wisdom in it, the other is a mere act of careless and short-sighted indulgence.
Such is a sketch of the simple and judicious experiment initiated and carried forward by Professor Laurent and his friends in the Belgian schools. It may be considered as having passed its time of trial. As has been previously stated, it has been introduced to the Home public by Mr. Fitch, who earnestly recommends its imitation by the thoughtful and benevolent interested in the well-being of the rising population of Great Britain. In a like spirit it is now recommended to the consideration of the same classes of persons in New Zealand; more especially could it be wished that an active interest in it would be taken by our clergymen and teachers, in whose hands rest, it may be said, the training for good or evil of the great majority of our young people. In this movement we see an engine to mould of great might and strength. With the exception of the societies alluded to at the commencement of this paper, little or nothing has been done amongst us to foster and encourage the practice of thrift. Many of the members of these societies, we are aware, feel it as no small hardship to save for their weekly or monthly payments, notwithstanding the indisputable fact that the income of all of them is more, and of most, from two to four times greater, than that of which they were in receipt at home, and this also in the face of the necessaries of life being much less expensive. It arises, no doubt, from the single circumstance that the restraint necessary to save has been begun too late in life. What is needed is to make the page 15 habit of thrift part of the child's education—to make him store and save up his pence, for, in his eyes, their own sake, but in the eyes of the teacher the far-reaching effects the training to such a habit will have in the future life of the child. Here, indeed, were the practice of this began in the school, would be introduced that teaching, that' education, which is, apart from mere book knowledge, the beginning of the realization of a dream—a fond hope of many a despairing soul. Dr. Hodgson, whose name has already been mentioned, was among the first to urge the teaching of economics in schools to both boys and girls. In one of his lectures on the subject he remarks, most truly, that the evils arising from their ignorance retard our social progress, deform and disgrace our civilization, and make good men despair of any remedy or even serious abatement. "I am utopian enough," he says, "to believe that it is "in the school-room that the work of teaching economics "can be done. Thirty years' experience of old systems "and of new, gives me confidence in the issue of such an "extension of the scope of our school teaching, high and "low, as shall amount, in spirit and in purpose, to a "radical reformation.... Some readers may well "think that I imagine a vain thing;' nevertheless "I know what I am saying. Economics I hold to be a "part, and no small or unimportant part, of morality; "they are, indeed, at the very root of practical morals, "for morals decay alike amid squalid poverty and "thriftless waste. Into all social relations does money "somehow enter—in getting or spending, in lending or "borrowing, in sowing or reaping, as well as buying "and selling. Money means independence, leisure, "culture, peace of mind, freedom from corroding and "debasing care, the power and the right to be generous,. "to direct and pay labour, individual and social pro-"gress; and the disregard of it, so loudly professed by "some; is cither stupidity or hypocrisy, or both. Few "things are, indeed, more important than money, the "means by which it is acquired, the ways in which it "is employed. Wealth may be abused, and so "may health, but that cannot be used which is "not possessed. What training then is given in this "most vital theme?"
Dr. Hodgson deplores that in schools the subject should be almost ignored. He says that in the few page 16 where it is taught, experience goes to prove that no other subject has more interest for the pupils, or is more easily taught without loss, nay even with gain, to other ones. The need of such teaching appears on every hand, to all whose eyes are not blinded that they cannot see. Has not, as Carlyle's Professor would say, has not custom hoodwinked us in New Zealand, and has not prejudice been our lawgiver? There are honourable exceptions, but we cannot find, that generally, the science of economics form any part of the programme of studies in the public schools of the Colony.
But to return to the subject proper of this paper, and to keep more to Mr. Fitch's remarks. Some may say that there are Post-office Savings-Banks everywhere, or at least, that they increase in number as townships make way in outlying districts. This is doubtless true, but it must be remembered that these banks themselves, however numerous, can never be brought close enough to the children while the habits of their life are in process of formation. Nor is it possible that the banks should ever receive sums so small as those by which the habit of saving must be formed. Let the habit be taught in the school, and when the child grows up he is already familiar with that truly useful institution: and this is a great step, indeed, more than half the battle gained.
The last report of the Postmaster-General shows that Savings-Banks were established in New Zealand on the 1st of February, 1867, and on the 31st of December of that year there were 2,156 depositors, with an average of £33 0s. 5d. to the credit of each; in 1870 the number had risen to 8,317, with an average of £35 10s. 3d. to the credit of each; while in 1873 there were 17,132 depositors, or 1 in 17 of the population, with an average of £38 168. 1d. to the credit of each. This will compare favourably with the published reports of the Victorian Savings-Banks, in which, in 1874, the number of depositors was only 1 in 30 of the population, with an average amount of £37 7s. 10d. to the credit of each. And yet in New Zealand the full development of the Post-office Savings-Bank system is hindered by several causes; there are many districts in which no bank is yet attached to the Post-office, and the rule which limits each deposit to a minimum of 1s., and forbids the receipt of sixpences even when tendered with larger page 17 amounts, and which is most noticeable in the case of half-crowns, acts unfavourably in encouraging the practice of the smaller economics; and the fact that the banks are closed in the evenings, especially on the Saturday evenings, when working-men generally receive their wages, is also very unfavourable for the timid and irresolute. Suggestions for reform and improvement in these matters of minor detail have, however, seldom had a better chance of being favourably regarded than at the present moment. The position of Postmaster-General is held by the Hon. Sir Julius Vogel, whose career has been characterized by so much administrative capacity, and whose readiness to adjust means and measures to suit the circumstances of every class of colonists is proved by the admirable provisions recently made for encouraging life insurance. It is far from likely that he regards the department of the Post-office Savings-Bank as nothing more than a mere source of revenue or an instrument of public convenience; and it is not too much to believe that the present movement will have in him a deep and active sympathiser, and by his help and wise administration the Post-office Savings-Bank of New Zealand may thus be made a potent teacher and an unfailing aid in the grand and glorious work of true education.
That great results can be accomplished with the aid of the teachers, even with the resources at the command of the scholars in the district schools, is manifest from the fact that upwards of 10,000 children in a single town, where the earnings of the parents are far below those of the colony, have saved sums averaging 30s. each. It is probable that very little, if any, of this money would have found its way to the bank but for the agency of the school. The work is one the success of which will much depend on the spontaneous efforts of the teachers, combined with those of the school committees, and the influence brought to bear upon children individually by benevolent and thoughtful people. Each province can now boast of a well-organized system of public instruction, but even with that there is still much room for the exercise of that personal zeal and that affectionate interest in the welfare of the scholars which have always characterized both the parochial and the voluntary systems in the old country, and for the exercise of such exertions, here is one field in which the page 18 harvest truly may be great. In proportion as our schools increase in number, and the advantages of education become better understood, so will school attendance be prolonged and the number be greater; in like ratio a larger proportion of children become amenable to such simple reasonings and influences as have proved so efficacious at Ghent. And those who will take the trouble to associate themselves with the teachers in bringing the Savings-Banks into the school, and making the simple arrangements by which the business part of the matter may be done smoothly and in proper order, may fulfil a most useful function. They will aid the work of true education in an effectual way, not only by thus giving practical and experimental lessons in economic science to the scholars, but also by enlarging their comprehensions and increasing their power of self-control. It is, however, not a panacea. If adopted ever so earnestly and successfully, it will leave much improvidence unremedied; but in its daily practice as part of the discipline of life, it may, with the Divine blessing, prove one instrument for establishing such a basis of character in the rising youth of New Zealand as shall elevate the whole of their social and moral life.
Fergusson & Mitchell, Printers, Princes Street, Dunedin