Birthday Memories

Sun (Auckland), Volume 1, Issue 65, 8 June 1927, Page 8

Birthday Memories

Auckland Savings Bank BIRTHDAY colours floated to-day over the Auckland Savings Bank's buildings. It is eighty years since the institution—long a power in the prosperity of Auckland—opened its doors on June 9. 1847, and to-day’s anniversary is therefore an occasion calling for more than casual notice.

QUARTERED first in the humble shack housing the old Mechanics’ Institute, the bank twice occupied other temporary offices before it acquired a Queen Street site in 1557, and replaced an early oyster saloon with the forerunner of the present building. Many were the financial vicissitudes of the early days, and in these the

bank shared. Not until it had been open for five days was £10 —the first recorded deposit—paid in by one Matthew Fleming. In its early career the bank was open for only on hour daily, as well as for two hours each Saturday evening. To-day clients throng its building, which now goes through to Lome Street and is undergoing further processes of remodelling and enlargement. Community Thrift Through successive years the bank has followed its original guiding principle, the inspiration of thrift in the community. Eighty years ago it was a bank for the workers, and it is that still. Investments are now close on £5,000,000, with deposits (£4,794,810) approaching the same figure, and the

sum of £190,000 added annually to Auckland’s tvealth through Interest channels. In its first year the bank had nineteen depositors. To-day they number 119,527. The progress has been astonishing. As a savings bank for the people it was in the field 20 years before the State institution, which celebrated its jubilee only last year. Features of difference are the interest rates (Auckland’s is higher), and the fact that the State bank does not lend to depositors. The funds are held for the benefit of the State, whereas in the Auckland Savings Bank advances are made on freehold mortgage, preference being given to loans of £I,OOO and under, and the depositors themselves get the use r of the money. Always encouraging thrift, the bank has at various times introduced the penny bank and school bank, for school children, and thrift clubs for workers in big warehouses and factories. BANK’S SAGE ADVISERS Its progress closely allied with Auckland history, the bank has had notable citizens to guide its destinies. Hung round the board-room are pictures of celebrities of the past. J. Logan Campbell and James Dilworth, in 18.47, acted as hon. secretary and hon. accountant. Present at the first annual meeting were the Hon. Andrew Sinclair, Rev. J. F. Churton, Rev. Thomas Buddie, T. S. Sorsaith, W. Connell, David Rough, A. Kennedy, and the Hon. C. A. Dillon. J. J. Montefiore, A. Shepperd, Archibald Clark, W. C. Daldy and David Nathan were others associated with the early history of the bank. They founded the stability of an organisation that has grown with Auckland and has, on the principle of distribution of surplus profits, disbursed over £IOO,OOO (including £50,000 to the War Memorial Museum, and £IO,OOO to the Technical College), for the benefit of deserving causes in the city. How a “Run” Started

Only once did its depositors doubt its stability, and that was in 1894, whenr-a client, owing to an irregularity in his withdrawal slip, was not paid. The maritime strike of 1893 had left the financial world in a touchy condition, and the over-suspicious depositor, leaving the bank, told passersby that it w*as stopping payments. Immediately began a run which lasted all the morning, and well into the afternoon. But before the bank closed the people had realised how baseless were their fears, and were returning sheepishly to restore their deposits.