THE FIRST SAVINGS B A N K
Was gazetted on the 17th December, 1838, its first Trustees being Captain William Lonsdale, Rev. Messrs. J. Clow and J. C. Grylls, Captain B. Baxter, and Messrs. Craig and A. J. Smith, merchants. All these gentlemen are now dead, except Baxter, who is still in the colony. It was not opened for business till the ist January, 1842, with the following formidable list, of w h o m all but the Accountant were honorary:— President, His Honor C J. Latrobe, Superintendent; Vice-President, James Simpson, Esq, J.P.; Trustees, Messrs. Thomas Wills, S. Craig, James Graham, J. A. Smith, G. W . Cole, J. D. L. Campbell, C. Hutton, R. Martin, Revs. A. C. Thomson, James Forbes, A.M., and P. B. Geoghegan; Accountant, Mr. James Smith ; Office, Melbourne Chambers, Collins Street; Bank of Deposit, Bank of Australasia. For several years the operations of this bank were rather limited, and I recollect it yvas kept on the first story of a smart-looking building in Collins Street, nearly opposite the Bank of Australasia—the Bank Staff consisting of the Manager and a boy ; and a rather original customer the Manager was. All old colonists knew Mr. James Smith—better known as " Jemmy." H e yvas dry, cautious, yet simple-minded, and had acquired an alias of an "inexpressibly" musical character. H e was a pluralist in small appointments, some honorary and some stipendiary; the right-hand m a n of M r . Latrobe, a Justice of the Peace, Visiting Justice at the gaol, and one of the Council of three Licensing Magistrates, w h o for years dispensed favours or frowns to the publicans of Melbourne. A s to the bank, Mr. Smith was its Comptroller, Secretary, Actuary and Cashier; and no bank in the world ever had a more scrupulous or painstaking officer. The Savings' Bank was a sort of mania with him. It was not a hobby—for Mr. Smith was not partial to riding—it was rather his baby; and no mother ever nursed herfirst-bornyvith more parental solicitude than " J e m m y " cradled the bank. H e "dry-nursed" it well, and m u c h of his existence seemed so interwoven with it, that anyone opening a half-crown account there might safely calculate upon " J e m m y ' s " good offices. I have known more than one designing scamp curry favour with the old m a n in this way ; for a Savings' Bank depositor was, to his mind, a something almost incapable of wrong-doing. In 1843 the Bank tookfireone night, and I met " J e m m y " next day in Collins Street. H e was in great tribulation, and after m y short condolence, informed m e , yvith a laugh (something between a chuckle and a cackle), " that the cash was all safe, for he always sent it over the way to his friend, Mr. McArthur, of the Bank of Australasia, and the books and papers had been luckily saved." T h e bank still held on, and " J e m m y " held on to it until its increasing business, and his increasing years rendered his retirement a necessity, when he left the colony and lived many years in England, where he was gathered to his fathers not very long ago at the ripe old age of between eighty and ninety. Mr. Smith had many little oddities, but at heart he was honest and kind; and though he sat on the Police Bench at a time when a magisterial colleague took bribes right and left, no one ever suspected " J e m m y Whistle " of soiling hisfingersin such a way. T h e bank atfirstused to discount good endorsed bills, and advance on mortgages. It allowed 5 percent, on deposits, and after the first year increased the rate to 7 ^ . In 1844 this fixed rate was discontinued, and one substituted by which the interest allowed would depend on the amount of profits, provision being made for a security fund. A n Act of Council was also passed doing away with bill-discounting, and restricting the mortgage loans to one-third of the funds—the residue to be invested in Government securities or bank shares. In the most perilous times this institution seemed to have been piloted with extreme caution, and little or no losses were made, owing mainly to thefosteringcare of its ever-vigilant manager. " OUR UNCLES AND OUR AUNTS."
On tne Jacilis decensus avemi principle, the transition from banking to the avuncular mode of «financing" popularly known as pawnbroking, is a short one. In modern times a town can hardly be said to be complete without its "three golden balls," hung out as a bait, but which convey the fact that "all that glitters is not gold, yet pawnbroking does notfigureamongst the very early money-making ventures in Melbourne It m a y be accepted as an indication of the then general prosperity of the community. Certain it is that m early Melbourne the publicans, butchers, and bakers, were the most prosperous of the
