Until the year 1825, no kind of savings-bank existed in Russia. The
farmers and peasants, residing for the most part in remote and
scattered habitations, were accustomed to keep their little store of
money in common earthen-pots buried in the ground, whence it was not
unfrequently stolen. It also often happened that, owing to the sudden
illness or death of the owner, the place of concealment was unknown to
any one; thus the savings were lost, and much family trouble and
difficulty arose. In March 1825, a truly patriotic young merchant,
Frederick Hagedom, junior, of Libau, in Courland, perceived the
advantage of savings-banks in other countries of Europe, and the
disadvantages of the system pursued by his poor countrymen. He
resolved, therefore, to institute a savings-bank in Libau. The
patronage of the governor-general was obtained, and one of the
magistrates of the town appointed superintendent: Frederick Hagedom
and two other gentlemen were chosen directors. The public of the town
soon testified their approbation of the good work, by bringing in
their silver rubles and copper kopecks at the appointed hours--namely,
from five to seven every Saturday evening, and at two periods of the
year daily--from the 1st to the 12th of June and December. The
peasants, however, did not display the same alacrity and confidence as
indeed was to be expected. Their kind benefactor perceiving this,
wrote and circulated a short pamphlet in the Lettish language of the
country, explaining the intention, object, and advantages of the new
savings-bank. This convinced the ignorant country-people that their
old way of keeping their money, even if safe, was not profitable. The
pastors of the village churches also took occasion to speak to their
people on the subject, being persuaded, like the benevolent founders
of the savings-bank, that it was a plan which could not fail to
improve the moral and religious character of the peasantry. These
exertions did not fail to produce the desired effect.
To accommodate the country-people who came from a distance, it was
soon found advisable to open the savings-bank for their attendance
daily from twelve to one--the Saturday evenings being reserved for the
inhabitants of the town. All classes now became desirous of taking
advantage of the savings-bank, and brought in silver rubles and
kopecks, instead of keeping them hoarded and useless.
A sum under five rubles receives no interest--is merely saved and
kept--which is, however, no slight benefit to the poor peasant. Above
that sum, 4 percent, interest is paid. The owner is at liberty to
withdraw the principal at will. The tables published in 1845, after
twenty years' existence, afford a most satisfactory and interesting
result. The increase of members who partake of the benefits has
steadily advanced. One-third of the number are inhabitants of Libau,
the remainder are from the country. A very important gain was also
perceived to arise from the system: a large portion of the silver
rubles and Albert-dollars paid in, had evidently been for many years
kept entirely out of circulation, buried in pots in the earth, and
consequently in such a condition, that it was often necessary to have
the coin carefully cleaned, before it was fit to be sent out into
circulation again. Besides the pecuniary advantage, the improvement in
the character of the people has been remarkable. The savings-bank has
strengthened in a singular degree the love of order, industry, and
temperance. How many cheerful hopes and anticipations are connected
with savings! It has been ascertained, both in England and France,
that since the establishment of savings-banks in those countries, no
criminal has ever been found to have been a member of one. How true a
benefactor to his country has the young merchant Hagedom proved
himself to be! May he live long to direct the savings-bank of his
native town of Libau! And, to conclude with the words of the last
report of the institution: 'May a gracious Providence continue to
prosper this first and oldest institution of the kind in the empire of
Russia, and preserve this institution, so highly beneficial to the
economical and moral state of the people, in its full prosperity, to
future generations!'[7]