The Birkbeck Bank.

Manawatu Herald, 20 September 1892, Page 2

The Birkbeck Bank.

The following particulars as to the Birkbeck Bank, of which we have heard so mtrch the last few days, will be read with interest :—" The title of the bank grow* out of the fact that it was established as an extension of the Birkbeck Institute,, which was founded by th« lateJDr Birkbeck in 1823. He was avoxy berievolent man, who made th# question of how best to provide the working classes with reasonable opportunities' for thrift one of the principal objetfta of his life. He was a Yoi-kshireman, having been born in Settle in 1776, btrt he spent a lartfe portion of his life in London. where he died in 1841. One of the principal features of the Birkbeck Institute was the formation of building societies. The societies were permanent, and were always popular* although in later years £übjecfc©ai to. the conipetio'n of what are called the " Star-Bowkett " societies, from the name of their founders. In these societies all the members pay contributions till a certain sum— usually £300— is obtaitfetfy when there is a ballot as to which" tHerober shall hare the loan. The BirkbetflK froeieties are are more in the nature of saving ban'js, as deposits of any amount. are-, taken, and if a loan to purchase a, house or plot of land is negotiate, the transaction is a purely business* one, no ballots or other elements of uncertainty being introduced. From the nature of these societies grew the idea of establishing a bank pure and simple, and in 1851 the Birkkeck Bank was established. The most attractive novelty offered was interest on current accounts, under certain prudent regulations, and practically the current rate of interest (at present 3 per cent is being paid) was; allowed on all deposits being withdrawable on demand. Small sums are received; and as soon as the deposits reach a total of £1 interest commences.- Exchange.