nioersitt) of ^ 4 a California ~a^ -->-^sa> ^xsr<~&^ SECOND EDITION. 'flrdrajj Imtlts, n VOL. I. JOINT STOCK BANKS (LONDON). BY WILLIAM HOWAETH, F.E.Hist. S., F.S.S., i> Author of " Our Clearing System and Clearing Houses," "Banking Statistics" " Somme Olde Curiosities," &c. &c. ^\\ B N A ft )7 OF THE UNIVERSITY PUBLISHED BY WALTER R. SKINNER, 26, NICHOLAS LANE, E.G. 1894. PRINTED BY DANIEL GREENAWAY, 30, CAMOMILE STREET, E.C, [Entered at Stationers' Hall.] S13N03HdS THIS BOOK * is RESPECTFULLY DEDICA T^D TO Xorfc 1Rotbscbfl&, IN TOKEN OF THE ADMIRATION IN WHICH HIS GREAT TALENTS, AS A FINANCIER AND BANKER, ARE HELD BY THE AUTHOR. 1988 lEorknmrs it* d|0. Managing Director: HENRY PORT. Secretary: E, C. FOWKE. CHIEF OFFICES; BROAD STREET CORNER, BIRMINGHAM. LONDON OFFICE: 2, WEST STREET, FINSBURY PAVEMENT. Mr. HKXRY PORT, Founder n,vl Managing 1\ rector. MR, HENRY PORT, Founder of the British Workmen's and General Assurance Company, is distinctly a man of the age. In the annals of the Nineteenth Oentury few men have devoted themselves with equal self-sacrifice and uninter- Tuptedness to a great social and economic purpose. The British Workmen's and General Assurance Company is indebted to Mm for its present high position. Founded in 1866 its annual income now amounts to 371,000, and there are not a dozen British Life Offices which enjoy so large an income. The Company stands foremost for liberality in its terms, and especially in tihe matter of surrender values. PREFACE. THE histories of the sixteen banks included in this volume have, for the most part, appeared in the Bullionist, and are now being brought out in this form in response to many requests from different parts of the country. In almost every case the histories have been checked by leading officials in the banks themselves, so that the information herein recorded practically bears upon it the official seal of accuracy, and consequently may be absolutely relied upon. It may be a cause for surprise that these particular six- teen banks have been selected, while such wealthy and important private firms as Messrs. Robarts, Lubbock & Co., Messrs. Barclay & Co., Messrs. Smith, Payne & Smiths, Messrs. Glyn, Mills & Co. have been omitted. They, together with many large private banks in the provinces, will form the subject of another volume. The author desires to take this opportunity of thanking the various General Managers and officials for the courteous treatment invariably accorded to him, and for the ready way in which any information he required was supplied. 10, CLIFFORD'S INN, E.C., October, 1894. ESTABLISHED 1836. Capital, 6,000,000. Paid-up, 8I8,2OO. Uncalled, 3,IO9,I6O. Reserve Fund, <6OO,OOO. DIRECTORS- JOHN DENT GOODMAN, Esq., Birmingham, Chairman. WM. GRAHAM BRADSHAW, Esq., London, Dep u ty-Ckairman. GEO. FREDERICK BOLDING, Esq., Bir- mingham. JOSEPH HICKS BUCKINGHAM, Esq., London. JOHN JAMES COUSINS, Esq., Leeds. Sir F. D. DIXON-HARTLAND, Bart., M.P., London. GEO. ALLEN EVERITT, Esq., Knowle. W. MURRAY FRASER, Esq., Manchester. JOSEPH GLOVER, Esq., Leamington. HARRY HEATON. Esq., Birmingham. ARTHUR KEEN, Esq., Birmingham. MAXIMILIAN LINDNER, Esq., Binning. ham. GEORGE SMITH. Esq., London. JAMES WATSON, Esq., Shrewsbury. WILLIAM FITZTHOMAS WYLEY, Esq., i Coventry. JOHN ALEXANDER CHRISTIE, EDWARD H. HOLDEN, , /-.,,-, ral Managers. ALFRED MARKS, London Manager, J. M. MADDERS, Birmingham Manager. WM. FRANKLIN GARDNER, Assistant London Manager. THOMAS MOORE, Secretary. WHINNEY, SMITH, AND WHINNEY, Auditors. Head Office :-52, CORNHILL, LONDON, E.G. BRANCHES: LONDON- Chepstow MANCHESTER continued* Bermondsey Bethnal Green Chesterfield Cleobury Mortimer (Sub. to Bradford Blackfriars Clerkenwell Bewdley) Coleshill Chester Road Corn Exchange Deptford Islington (Metro. Cattle Mkt). Mik End Newgate Street Rotherhithe Coventry Derby Derby Cattle Market Eastbourne Erdington D e a. n s g a t c High Street Moss Side Stretford Road Swan Street \g _*,_ Shafcesbury Avenue Shoreditch Tooley Street Tottenham Court Road West Smithfield Whitechapel BIRMINGHAM New Street Aston Street Ferndale (Sub. to Pontypiidd) Goole Hull ,, Billingsgate Hyde Kendal Kenilworth King's Heath (Sub. to Moseley) Kirkby Stephen Morley Mumbles (Sub. to Swansea) Newport (Mon.) Normanton (Sub. to Castleford) Northampton Orton (Sub. to Kendal) Ossett Pentre (Sub. to Pontypridd) Porth (Sub. to Pontypridd) Handsworth Moseley Road Sparkbrook Small Heath Knottmgley(Sub. to Pontefract) Knowle (Sub. to NewSt.,B'hm.) LEEDS- Park Row Pontefract Pontypridd Rothwell (Sub. to Castleford) Sandy (Sub. to Bedford) Jl^ rT L Smithfield Snow Hill Burley Road Kirkgate oedDergn Shap (Sub. to Kendal) CVukflC^M Warstone Lane Bramley onetnelcL Waterloo Street Ambleside Bedford Kewdley North Street Stanningley New Wort ley Cattle Market Skipton Snaith (Sb. to Pontefract) Southam Stourbridge Bournemouth Bowness (Windermere) Bradford ,, (Manchester Road) Leamington Leicester Lichfield Lye (Sub. to Stourbridge) Swansea Tarn worth Tonypandy(Sub.to Pontypridd) Treorky (Sub. to Pontypridd) Wakefield Brierley Hill MANCHESTER Walsall Brighton Cardiff Docks King Street Ardwick Warwick Wednesbury Castleford Chasetown (Sub. to Lichfield) Audenshaw (Sub. t Hyde) Ynysybwl (Sub. to Pontypridd) CONTENTS. CHAPTER PAGE 1 THE LONDON AND WESTMINSTER ... ... ... 9 2 THE LONDON AND COUNTY ... ... ... ... 15 3 THE NATIONAL PROVINCIAL ... ... ... ... 19 4 THE LONDON AND MIDLAND ... ... ... ... 25 5 LLOYDS ... ... ... ... ... ... 29 6 WILLIAMS, DEACON AND MANCHESTER AND SALFORD ... 34 7 THE LONDON JOINT STOCK ... ... ... ... 39 8 THE CAPITAL AND COUNTIES ... .., ... ... 44 9 PARR'S AND ALLIANCE ... ... ... ... ... 50 no THE LONDON AND SOUTH WESTERN ... ... ... 55 11 THE CITY ... ... ... ... ... ... 60 12 THE CONSOLIDATED ... ... ... ... ... 65 13 THE LONDON AND PROVINCIAL ... ... ... ... 70 14 THE NATIONAI ... ... ... ... ... 74 15 THE UNION BANK OF LONDON ... ... ... ... 79 16 THE METROPOLITAN AND BIRMINGHAM ... ... ... 83 OUR LEADING BANKS. UNIVERSITY &X CHAPTER I. LONDON AND WESTMINSTER THE first joint-stock bank in London that is the proud boast of the London and Westminster Bank, which started business - with a paid-up capital of 50,000 on the loth of March, 1834. By the original prospectus the capital was fixed at 10,000,000,. divided into 100,000 shares of 100 each, "in order that the mercantile and trading community, and the public in general who may become proprietors, may, by this extensive distribution of shares, acquire an interest in the prosperity of the establish- ment and participate in its advantages." The shares, however, went off but slowly, and only 10,000 were taken up when the business was started, under the management of Mr. James William Gilbart, at 38, Throgmorton Street. The same year the directors brought a Bill into Parliament to authorise the London and .Westminster Bank to sue, and be sued, in the names of their public officers, in the same way as those banks, whose offices were more than sixty-five miles from London. Although this Bill was carried through the Commons, it was- rejected in the Lords, and consequently the bank adopted the plan of sueing, or being sued, through Trustees. 10 The Bank of England was naturally jealous of its rival, and dreading, perhaps, too formidable competition, commenced proceedings in the early part of 1835 w i tn a v * ew to prevent "the London and Westminster Bank from accepting bills drawn at less than six months after date. In 1837 the Master of the Rolls granted the injunction sought ; but the country bankers immediately commenced drawing on the London and West- minster without acceptance. It will, doubtless, be of interest to our readers to glance at the following copy of the first balance-sheet issued by this pioneer of joint-stock banks in London : A STATEMENT OF THE AFFAIRS OF THE BANK, DECEMBER 3isT, 1834. DR. Due to the public on lodgments, and interest on deposit receipts 180,380 9 10 Due to proprietors for paid-up capital 182,255 Balance in favour of the bank 3o4Q 6 6 366,175 16 4 CR. Due to the bank on account of investments in Government securities, bills discounted, &c., and cash in hand ..-355,540 3 6 .Preliminary expenses ... ... ... ... ... ... 10,635 I2 IO 366,175 16 4 PROFIT AND Loss ACCOUNT. DR. 'Total current expenditure from loth March to 3ist Decem- ber, 1834 4>377 4 2 Interest due to the public on deposit receipts 521 i 8 Balance in favour of the bank 3>54 6 6 8,438 12 ~ 4 CR. Balance of interest account 8,438 12 4 ^Compare these figures with those which appeared on the balance-sheet issued in January of this year. One had almost :said that the total had been augmented by the addition of two noughts, the one total being three hundred thousand, the other -.thirty millions. When the first balance-sheet was issued II did the then directors ever contemplate in the most remote future the possibility of the balance of current and deposit accounts amounting to such a gigantic sum as twenty-six millions of pounds ? Compare the funds in hand in 1834 with the enormous amounts always kept available at the present time. One of the fundamental principles of the London and Westminster has always been to keep a large portion of its funds at all times in a convertible state. Glancing through the reports from 1834 onwards to the present time, we are bound to say that this principle has, throughout, been most religiously observed, the amount of available cash increasing with the liabilities. By the last balance-sheet we notice that the amount of cash in hand at Bank of England and at call on the 3ist December last amounted to no less than the prodigious total of 9,148,000, while the investments (almost all of which are securities of the Imperial Government) stood at 5,015,000. On the same day that the bank commenced operations in the City, a branch was opened in Waterloo Place, Pall Mall, as the Westminster branch, which was subsequently removed to St. James's Square. On the 4th January, 1836, branches were opened at 213, Holborn, and 87, Whitechapel. On the 2gth of the next month a branch was opened in Wellington Street, Southwark ; and on the I5th of June one at 155, Oxford Street. This latter has since been removed to Stratford Place, and is called the " Marylebone" branch. It seems that then the bank rested until 1855, in which year the Temple Bar branch was opened owing to the failure of the well-known firm of Strachan, Paul, and Bates. When the London and Middlesex Bank stopped payment in 1863 the London and Westminster opened the Lambeth branch, and next year purchased the business of Jones, Loyd and Co. In 1881 a branch was opened in Brompton Square, South Kensington ; in 1884 in Victoria Street, Westminster; in 1886 in Westbourne Grove, Bayswater, and one at Islington; in January, 1887, the Holborn Circus 12 Branch was started ; and the bank having erected premises at the corner of Holborn Circus the business has now been transferred to them. The following May the Tottenham Court Road branch was opened, and in March, 1890, a branch was. established at Hampstead. The same year a branch was started in Oxford Street, and the following year one in High Street, Kensington. Thus it will be seen that the London and Westminster has confined its business to London, whereas. the tendency with most banks at the present day-is to procure increased support by opening branches in the provinces. Again, whereas most of the London banks of to-day have built up their figures, to a great extent, by means of amalgama- tions or absorptions, the London and Westminster has only taken over two other banks the Commercial Bank of London and Jones, Loyd and Co. The paid-up capital, which stood at 182,255 m I 834, was 597,255 in 1836, and had reached 800,000 in 1842. In 1849 this important item stood at 1,000,000, at which figure it remained until 1866, when new shares were issued, which, by 1869, had brought the paid-up capital to 2,000,000. Further shares were issued in 1880, and when these were paid the capital stood at the substantial figure of 2,800,000, at which it has since remained. The reserve fund, which was 1205 in 1834, has steadily increased year by year, and occasionally by the profit made on an issue of new shares, until, in 1867, it stood at half a million. In December of the following year this was increased to a million pounds by the addition of 500,000, the premium on the issue of new shares ; and on the 3ist December, 1893, it stood at the enormous total of 1,655,620. The deposits did not reach seven figures until 1838, and, although competition began to get much, keener owing to the establishment of several other joint-stock banks, the balances of the London and Westminster steadily increased. In 1856 the current and deposit accounts turned the eight figures, the balance being 11,438,000; and, ten year* 13 after, the initial figure was altered, the total then being 22,672,000, while the December (1894) statement gives the balance 26,486,000. As has been already said, Mr. J. W. Gilbart was the first general manager, and, without question, much of the subse- quent prosperity of the bank was due to that able and talented gentleman. On the 3ist- December, 1859, Mr. Gilbart retired from the management and accepted a seat on the board, which lie occupied until his death in 1863. On Mr. Gilbart's retire- ment, Mr. Ewings became general manager, and acfted in that capacity until his death in 1871, when he was succeeded by Mr. W. S. Higley, who, however, died three years afterwards. Mr. William Astle was then made principal manager, and at the same time a superintendent was specially appointed for the supervision of the branches. Mr. Astle still holds his high position, and we trust he may long continue to do so. At the time when a considerable amount of attention is being directed to the payment of and provision made for bank clerks, it is gratifying to know that the London and Westminster has always made a point of carefully \vatching the interests of its staff. Not only are the clerks paid well and liberally, but there is a pension scheme in full working order, and also a certain system of life assurance. We have repeatedly heard the directors and managers of this important bank spoken of in the highest terms of praise for the liberality with which they treat their clerks in time or sickness or adversity. It would be hard to find a single office in London where the men work more harmoniously or are more satisfied. The present building in Lothbury has, of course, been frequently enlarged and altered, the business having been transferred to it from 38, Throgmorton Street, on December 26th, 1838. It will be very interesting to many of our readers to glance at the following paragraph, which we take from the first report issued : The opposition of the private bankers was manifested at an early period by their refusal to permit any clerk to attend at the Clearing House on behalf of this bank. The Clearing House has been in existence for upwards of sixty years, and although founded in the first instance for the accommodation of such London bankers as chose to avail themselves- of it, yet it has become entwined with the mode of settling accounts in several branches of business, and is, for all practical purposes, a public institution. The opposition of the Bank of England began by their refusal to grant to this Company the common convenience of a drawing account, a convenience granted, as a matter of course, to every respect- able firm who may choose to apply for it. The first report concluded with the following paragraph which, viewed now, sixty years afterwards, has evidently been more than justified : The directors congratulate the proprietors that, notwithstanding all this opposition, they have not only been able to stem the torrent, which, it must be evident, arose from private and not from public considerations, but they have seen, from the progressive advancement of business, that they occupy a more favourable position in public opinion ; and whether the ordinary power to sue and be sued be granted or not, whether the courtesies and facilities usual amongst all competitors be reciprocated or not, they entertain no doubt of the prosperity of this establishment, founded, as it is, upon liberal principles and upon a broad basis of security. That prosperity has been attained in a very marked degree. All opposition has long, long ago completely broken down ; the battle with the private bankers has been fought nearly half a century ago ; the doors of the Clearing House have years since been thrown open ; and now the London and Westminster, first in the field of joint-stock banks in London, occupies the proud position of being one of the largest banks in the whole of the country. CHAPTER II. THE LONDON AND COUNTY BANKING COMPANY. WHEREAS the London and Westminster have all their branches- situated in London, the London and County, although having 40 offices in and about the Metropolis, have no less than 134. branches in the provinces. Two years after the establishment of the London and West- minster Bank there was founded the Surrey, Kent and Sussex Banking Company, which, in 1836, commenced business in High Street, Southwark. In those early days competition with the- private bankers was exceptionally keen, they regarding the joint-stock principle with the most extreme disfavour, and determining, if possible, to crush it completely out of existence^ How they fought and contested every foot of ground is well known ; but they, with their century-old records, had to meet foemen worthy of their steel, the new joint-stock banks having " come to stay." That the London and County, or, as it was. then, the Surrey, Kent, and Sussex Banking Company, had no- intention of quietly allowing themselves to be crushed out can be gathered from the following paragraph which appeared in a circular issued in the early days of the bank : It (the bank) offers to individuals the opportunity of becoming their own bankers. As shareholders they participate in the profit of their accounts. If they require accommodation, a part of the consideration they pay for it returns to them. If they deposit, the amount is doubly fruitful. First, they receive from the bank interest on the sum deposited ; and, secondly, they share in the profit which the bank itself makes by the use of their investments. In a word, private individuals, instead of giving the profit of their accounts to private bankers, by becoming shareholders n this and other joint-stock banks, divide it among themselves. i6 In 1837 tne head office of the bank was removed to 71, Lombard Street, and in 1841 the business of Hector Lacy and Co., of Petersfield, and that of Emmerson and Co., of Sandwich, were taken over. The branches at Brighton, Maidstone, Canterbury, Sevenoaks, Croydon, Tonbridge, Lewes, Tun- bridge Wells, and Woolwich were started almost immediately -after the bank was opened. In 1842 the firm of Davenport, Walker, and Co., of Oxford, was absorbed, and in 1845 that of J. Stovell, of Petworth. The same year the head office was removed from 71 to 21, Lombard Street ; and it is interesting to note in this particular that many, many years previously this spot was the site of the "shop" of a private banker probably Thomas White or Thomas Williams. In the list of bankers published in 1793 we notice " Esdaile, Sir James, Knt., Esdaile, Wright, Hammet, and Co.," occupied this spot. The magnificent building now known as "21, Lombard Street " is one of the finest in that street so long recognised as the home of bankers. In 1849 the business of Trapp, Half head and Co., was taken over, and two years later the Berks Union Bank was absorbed. No further extension in this direction was effected till 1858, when the Western Bank of London, whose office was in Hanover Square, was bought. In 1860 a further absorption took place this time in Shoreditch the bank being a private one Robert Davies and Co. In 1870 the Manningtree branch was started by the business of Nunn and Co. being taken over. Since this date no further amalgamations of any importance have been effected, and hence the increase in the figures is entirely owing to an absolute increase in the business, aided by the opening of numerous branches in the Home counties. It may be interesting to our readers to note that on the balance-sheet dated December 3ist, 1837, the current and deposit accounts -and acceptances appeared as 84,741. The next year showed 17 an increase of rather more than 100,000. In 1839 this total stood at 351,000, which steadily increased, till, in 1844, the corner was turned, the seventh figure reached, and the balance showed no less than a million and a-quarter. In 1850 the initial figure was changed, and in 1852 the " 2 " was altered to "3," the total then being 3,281,000. In 1864 the balance-sheet showed that another figure had been added, the balance standing at nearly 12^ millions. After eight years had passed, the initial figure was again changed, the deposits and acceptances then being represented by no less than 213- millions. Still progress continued, and in 1884 the 2iJ millions had resolved themselves into nearly 30^ millions of pounds, and when the last balance-sheet (3Oth June, 1894) was issued this total stood at the enormous amount of 37 millions of pounds. And now a word or two as to capital. In 1837 this was repre- sented by 23,720, and year by year was increased, probably by payments on the shares, till in 1849 ** stood at 200,000. This amount was again augmented from time to time, till in 1857 it stood at 500,000, at which figure it remained till 1861, when 5,000 new shares were issued. A further issue of 12,500 shares was made in 1866, and in 1869 the paid-up capital stood at one million pounds. This in 1876 was increased to 1,500,000, and in 1883 to two millions, at which enormous amount it has since remained. With an old bank few points are of more interest than the reserve fund. In the case of the London and County this item appears to have been started in 1838 with 1,030, and to have been increased year by year out of profits from the business and from the issue of new capital. It was not till 1855 that it reached more than 100,000, and did not turn the next corner till 1864, when it stood at 240,675. When the capital was increased in 1869 to 1,000,000, the reserve fund was raised to 500,000, and when the capital stood at two millions in 1883 the reserve was half that amount, and ever since has i8 remained at that most substantial total 1,000,000. To enumerate the dates on which the various branches were opened would occupy far too much space ; suffice it to say that the bank has now no less than 174 branches and sub-branches. In fact, in nearly every leading town in the Home Counties one can see a branch of this bank, and in almost every case the buildings are an ornament. The organisation for the successful carrying on of so enormous a business with all its many ramifica- tions must be wellnigh perfect, and it is a remarkable sight to walk into the head office and note the cool, quiet, and collected manner in which the work is got through. No excitement, no fluster ; one might almost imagine that the business began and ended in that one building ; and it requires some little time to consider that from it, like so many nerves, branches are hard at work bringing grist to the mill in north, south, east, and west. For many years Mr. W. McKewan occupied the post of general manager, and on his retirement in January, 1890, the duties of administration were placed in the hands of Mr. William Howard, Mr. James Gray, and Mr. J. B. James, as joint-general managers. When Mr. George Gough retired from the Secretaryship in 1891, he died in 1892, the vacancy was filled up by the election of Mr. J. H. Atkinson, whose name is so well known to bank officials all over the country as being identified with the "Bank Clerks' Orphanage." It is quite needless to add that, not only are the clerks in the London and County Bank well paid, but pension and provident funds are, and have Jong been, in full working order. CHAPTER III. THE NATIONAL PROVINCIAL BANK OF ENGLAND. As far back as the year 1830 the formation of this bank was in contemplation, but no active steps were taken till three years later and the prospectus was issued in April, 1833. The capital Avas more than subscribed for, applications being lodged for 13,168 shares and only 8,340 being allotted. The first report is a most interesting document, which we should like, if space permitted, to give in extenso. It is, in length, a striking con- trast to the reports of recent years. From it we learn that the Gloucester branch was opened on New Year's Day, 1834, a branch at Brecon on the 26th March following, and at Walsall on April I4th, w r hile arrangements were then being made for ^establishments at Birmingham, Wotton-under-Edge, Boston, and Wisbeach. The statement of accounts placed before the Proprietors on the 8th of May, 1834, showed that the paid-up -capital then amounted to - 101,545. Compare this item with the 3,000,000 of to-day! It is interesting to note that the annual statements did not show the balance of current and deposit accounts until 1866, or thirty-three years after the foundation of the bank. The second report states: "The establishment, in its formation, has met with greater difficulties than probably any similar institution, and it is with no ordinary degree of .satisfaction that the directors have to congratulate the proprietors that these are now surmounted. "The unanimity existing among the directors will enable them to .apply their undivided attention to the proper and legitimate business ot 2O the company, and it is gratifying to them to be able to state that, from the short experience they have had, they feel confident that the expecta- tion originally entertained by the proprietors will be fully realized." We must be allowed to give the following quotation from a, circular issued by this bank un^er date : " BIDEFORD, 29 JULY, 1835. "The great feature which distinguishes a joint-stock bank from a. private banking partnership is the unquestionable security which it affords- to tha public for its notes, deposits and engagements of every description.. This security is obtained, in the first place, by the responsibility of the shareholders for all the liabilities of the bank; in the second place, by the amount of capital of the company ; and in the third place, the directors. are called upon annually for an account of their stewardship and to> declare a dividend on the profits they have made ; and it is beyond the limits of probable villainy, or possible fraud, that they should do this. otherwise than honestly With private banks in this country,, on the other hand, undoubtedly there are many which realize large profits. and are as solvent as any bank can be, but the public has no evidence of this." Although the latter part of this is unquestionably right and the statement is being more and more recognised each year., the assertions as to "probable villainy" or "possible fraud ' r have been again and again proved to be absolutely wrong. It is not, perhaps, generally known that, although the bank had a London office from the very first, it was not used for ordinary London banking business until 1865. The directors. of the bank appear to have thoroughly recognized the import- ance of an extensive country connection. During the year 1834-5 no l ess than twelve branch establishments were opened :: Bath, Cardiff, and Cheltenham being amongst the number.. The following year saw the opening of no less than thirty-two other offices amongst the towns selected being Aberystwith,. Bristol, Leicester, and Stowmarket. At Barnstaple the business. of the North Devon Bank was taken over; and the directors closed the branch at Walsall, "where the business had always. been dangerous, and where a large portion of the capital of the. company was absorbed which could be much better employed 21 in other quarters." In 1837 tne business of Messrs. Skinner and Co., private bankers, was absorbed, and this took the bank to Stockton and Darlington, while branches were also opened at Devonport, Plymouth, Kingsbridge, Manchester, Ramsgate, Exeter, and Newcastle-Emlyn. It is very interesting to know that the branch at Manchester was opened "with a view, in the first instance, of facilitating the operations of the other tranches of the company, especially those in North Wales." When we think, for a moment, of the magnificent building now occupied in Manchester, and consider the immense amount of business done, then one can only feel that the hope expressed on its establishment "that, at a fitting season, it may be rendered very serviceable to the interests of the company "- lias been more than fulfilled. When it is remembered that at the date of the fourth report the bank had fifty-six offices, we can quite imagine an amused smile flitting across the faces of our readers when they read the following quotation "The transfers between the branches average about 60,000 a-week, making a total of upwards of Three Millions annually!" In 1838 the Rugely, Tamworth, and Lichfield Banking Company was taken over, as was also the business of Messrs. Husband and Co., of Devonport, and that of Messrs. Browse and Co., of Brixham, while branches were opened at Southamp- ton and Portsea. In the report for this year it is notified that the premises in Bishopsgate Street had been acquired on favourable terms, and it was there that the next annual meeting of the shareholders was held. In 1841 the business of Messrs. Fryes, Andrews and Co. was acquired, and that of Mr. Fector (the Dover Bank) at Dover; while next year saw the absorption of Messrs. Cole, Holroyd and Co., of Exeter. In 1843 the National Provincial Bank absorbed Messrs. Loveband and Co., of Torrington ; Messrs. Ley and Co., of Bideford; and Messrs. Pretor and Co., of Sherborne; while the dissolution of the Isle of Wight Joint Stock Bank enabled them to open a branch at 22 Newport. Three years later the Stockton and Durham County Bank was absorbed; in 1854 tr - e private bank of Messrs. Kinnersley and Sons, of Newcastle-under-Lyme; and, in 1859,. that of Mr. William Moore, of Stone. In 1867 the business- of Messrs. Crawshay, Bailey and Co., of Newport, was taken over ; and, in 1870, that of Messrs. Morris and Co., of Carmarthen ; while, seven years afterwards, the Bank of Leeds was absorbed. This appears to be the last amalgamation or absorption. From time to time during the sixty years of its existence branches and sub-branches have been opened, and occasionally- several have been closed. By the last report, on the 3ist December last, there were 8 branches in London, 161 in the provinces, and 45 agencies, making, with the Bishopsgate Street establishment, no less than 215 offices. In 1853 the paid-up capital stood at 450,000, and in 1860 a portion of the profits were credited, to the extent of 20% on the paid-up capital, to capital account. The reserve fund then stood at 103,015. Subsequent issues of new shares brought the paid-up capital to 1,080,000 in 1866, while the reserve fund reached the substantial amount of a quarter-of-a-million pounds. In 1874 the paid-up capital reached 1,350,000,, in 1878 it was 1,687,500. In 1881 it had turned the two- millions, and now it stands at no less than 3,000,000. During this period the reserve fund was increased by leaps and bounds, standing at 900,000 in 1876, 1,615,000 in 1885, and 2,000,000 in 1893. With regard to current and deposit accounts the figures were first published in 1867, when they showed that on the 3ist December previously this most important item stood at 13,059,813. Three years later a further three millions were added, and by the 3ist December, 1872, the total exceeded twenty millions. In 1880 the initial figure was again changed, the amount then being 30,871,216. On the 3ist December, 1891, the total exceeded forty millions, and last December 23 stood at 41,826,804, and, be it remembered, acceptances are not included in these figures. What other bank is there which can show so magnificent a record? What other bank is there which can come within even measurable distance of the National Provincial? Cer- tainly none in the United Kingdom. Under the present splendid management its progress seems more rapid than ever. Mr. T. G. Robinson appeared for the first time as a general manager in 1876, when he was associated with Mr. W. Holt and Mr. R. Fergusson. In September, 1879, Mr. Holt retired, but it was not till 1881 that a third general manager was again appointed Mr. Churchward, from Cardiff, having the honour conferred on him. Directly afterwards Mr. Fergusson retired. Mr. William Fidgeon's name appeared first in the report for 1889, since which date there has been no change in the management. The bank was registered as an unlimited company in 1873, and as limited in 1880. In 1863 the directors "had come to the full conviction that the interests of the bank required that its operations should be extended to London at the earliest possible moment," and it is needless to say this was at once carried out with the most satisfactory results. The building in Bishopsgate Street, one of the finest in the City, has just been still further enlarged, the directors having recently procured the premises of the New Oriental Bank. Two other points and we must close this chapter. It is inte- resting to note that in 1853 the sum of 5,000 was voted by the shareholders to be disposed of "most advantageously for the good of the general staff." This raised the question of a pension scheme, which was not then matured, so that the following year the 5,000 was distributed as a bonus, and a Provident Fund was established. A life assurance scheme was then adopted, the bank paying half the premiums, and in the report of 1860 reference is made to a regular pension scheme. When the bank opened in London, loth January, 1866, the note issue had to cease, but * the Bank of England declined to grant the customary allowance except with the authority of the Lords of the Treasury, and this, we think, was never obtained. CHAPTER IV. LONDON AND MIDLAND. THIS bank was established in August, 1836, with a capital of 250,000. It was incorporated in 1873, registered as the Birmingham and Midland Bank, Limited, in July, 1880, and changed its name to the London and Midland Bank, Limited, on September gth, 1891. The first office was in Union Street, Birmingham, on the site, we believe, now occupied by the Prudential Assurance Company. But it was soon found that the accommodation was quite inadequate. So ground was procured in New Street, and the present magnificent building erected in 1869. We do not think there is any bank in the country from Land's End to John o'Groat's House which possesses a finer office than that belonging to the London and Midland in New Street, Birming- ham. Unlike the banks whose histories we have already given, this one started operations with the one office only ; nor was a single branch opened till 1851, when the business of Bate and Robbins, private bankers, of Stourbridge, was absorbed. Soon .afterwards the bank procured the business of the well-known private bankers, Nicholls, Baker, and Crane, of Bewdley, an old house dating back nearly a century. In 1875 a branch was opened at Wednesbury, and in 1882 one at Moseley Road, Birmingham. From that time till the present branches and sub-branches have been established in rapid succession; and to-day the bank carries on its business in no less than 108 establishments 89 branches and 19 sub-branches. Of these there are 15 offices in and about London, 10 in Birmingham, ii in Manchester, and 7 in Leeds. 26 The capital, which in 1836 was 250,000, was increased", several times, till in 1883 it stood at 333,688, at which amount it remained till 1889, wn en it was increased to 410,000. The following years it was again increased, standing at 637,500 in 1890, 761,125 in 1891, and 818,200 in 1892 the present figures. The first general manager was Mr. Charles Geach, at one time M.P. for Coventry. This gentleman, having been offered a seat on the board in 1847, was succeeded by Mr. Henry Edmunds, who also was made a director. Then came Mr. Goode, who retired on a pension after forty-two years' service- He was followed by Mr. G. F. Bolding, who remained in office from 1878 to 1887, when he received a retiring pension, was- made a director, and retired in favour of Mr. J. A. Christie, who had entered the service of the bank in 1871 as secretary.. In 1887 Mr. E. H. Holden was appointed assistant manager, and in 1891 that gentleman was made joint general manager with Mr. Christie. It has been under the able and energetic management of these two gentlemen that the bank has forged its way so rapidly ahead, there being few, if any, banks at the present time whose progress has been so rapid and continuous.. As evidence of this we need only remark that the deposits have increased nearly 300 per cent, within the last eight years. This, most important item was represented on the balance-sheet for the year 1886 by 2,672,715; in 1889 we note the corner had been turned, and the initial figure had been altered from 2 to 3 ; which, the following year, was again changed this time to 5.. In 1891, the date of the acquisition of the London business (to which we shall refer later), the deposits stood at 8,118,886,. and by the balance-sheet dated 3rd October, 1894, we find that on the ist of that month the figures represented the important total of nearly g-J millions of pounds. We have already referred to two banks acquired by this the then Birmingham and Midland Bank. It is of recent years that it has swallowed up all eligible banks that came in its path. . In 1883 the Union Bank of Birmingham, Limited, was taken over. Soon aft^r there were the Coventry Union Bank, the Leamington Priors' and Warwickshire Banking Company, and the Derby Commerical Bank. In 1890 amalgamations were effected with the Leeds and County Bank and the Exchange and Discount Bank of Leeds, and these procured for the " Midland " the most important of its Yorkshire branches and its extensive connection in that county. But by far the greatest step was taken in 1891, when terms of amalgamations were arranged with the Central Bank of London, Limited an important little bank, twenty-eight years of age, with a snug little business, ten branches, and a head office in the very heart of the City. By this move the Birmingham bank procured a good London connection, a London office, and a seat in the Bankers' " Clearing House. It was then that the head office was trans- ferred from New Street, Birmingham, to Cornhill, London, and powers were taken for the alteration of the name to the London and Midland Bank, Limited. Mr. Marks, the general manager, of the Central, was appointed London manager of the London and Midland. One might have thought that the ambition of this bank to stand in the front ranks would by this time have been satisfied. . Far from it. Hardly had Londoners got over the surprise which the announcement of amalgamation had caused when it was publicly stated that the very old private bank of Messrs.. Lacy, Hartland, and Co., of Bermondsey and West Smithfield,. had been absorbed. This, of course, gave the bank two more branches in London. Then for a short time there was a lull,, but the eyes of the management were on Manchester an important centre in which the bank was not represented at all. . The chance soon came : the Manchester Joint Stock Bank was taken over, thus adding twelve more to the already large number of offices open. This secured a good Manchester connection 28 -and a seat in the Clearing House of that city. Later on, nego- tiations took place between the Midland and the National Bank of Wales ; but these having fallen through, the former bank opened up several branches in South Wales, which at that time was quite new ground. Last year the Midland was fortunate -enough to secure the very old-established business of the Bank of Westmoreland, with offices at Kendal, Ambleside, Kirkby Stephen, Sedbergh, and Bowness. During the past year or "two the bank has opened several branches in the South Coast ; so that its offices are now spread all over the country, the principal centres, however, being London, Birmingham, Leeds, -and Manchester. Like the National and Provincial, the Midland did not for "many years publish a balance-sheet, the first bearing date 1879. Prom this we gather that the capital then stood at 300,000, the reserve at 210,000, and the deposits at 2,750,000. It is -somewhat interesting to compare these figures \vith the present ones. The liability for deposits on the 30 June, 1894, was 9,538,564, and against this the bank held in cash and money at call 2,074,726, or 21.7 per cent. ; in gilt-edged investments '{1,000,000 of which are in Consols), 2,002,595, or 20.9 per cent.; and in bills of exchange, 1,548,433, or 16.2 per cent. Thus the total available cash assets worked out at no less than 58.9 of the liability to the public, while the reserve fund stands at the very substantial amount, 600,000. For many years this bank has paid a high dividend to the shareholders from 1879 to 1886 at the rate of 16 per -cent., and since that date 15 per cent. The first dividend was paid on September ist, 1837, and was at the rate of 6 per cent. We understand that several members of the staff, who from time to time have had to retire through length of service, have "been treated liberally by the directors in the way of pensions, and we learn that at the present time a regular pension scheme Is under consideration. CHAPTER V. / LLOYDS. THERE are few, if any, joint-stock banks which have come- more prominently under the notice of the public in recent years than have Lloyds Bank Limited. Purely a provincial bank until 1884, they in that year came to London, and soon became one of the most important of Lombard Street banks^ and now, in 1894, tnev on ty & ve precedence to three others the National Provincial, the London and County, and the London and Westminster. It was on the 2Oth April, 1865, that Lloyds Banking Company, Limited, was incorporated with a nominal capital of 2,000,000, divided into 40,000 shares of 50 each. The bank was formed by the amalgamation of two old private houses Lloyds and Co. (better known as the Birmingham Old Bank), and Moilliet and Sons, also of Birmingham. It is. interesting to note that at the time of the amalgamation Lloyds and Co. had been in existence just a century. We take the following paragraphs from the original prospectus : "After allotting 12,000 shares to Messrs. Lloyds & Co. and Messrs.. Moilliet & Sons, it is proposed to issue 12,500 shares at a premium of 5 each, and this, it is estimated, will raise a sum equal to the amount required to be paid for the purchase of the goodwill, so that the whole amount to be received for deposits and subsequent calls may be available for the purposes of the bank. It is proposed that the remaining 15,000 shares shall be reserved for issue at such premiums, at such times, and to- such persons as the directors shall consider most conducive to the interests of the bank. The surplus premiums, if any, not required for the payment of the goodwill will be carried to the reserve fund, and it is intended that until such fund, arising from this source and from profits, shall amount to a sum equal to one-fifth of the paid-up capital, no dividend shall be paid exceeding 10 per cent, per annum on the amount of paid-up capital." It was arranged that a deposit of 5, in addition to the. 30 premium, should be paid on the shares issued, and that further calls on the shares should be 2 los. each. Then comes a -most important condition, which shews that from the very first the bank recognised the importance of a substantial amount of reserved capital, the paragraph continuing : "The aggregate calls will not exceed 12 los. per share; the remain- ing 37 IDS. is to be available only for the ultimate liability of the bank." The bank, being once started, soon received support, and rapidly rose in public favor. During the first year of its existence it absorbed the Wednesbury Old Bank (Messrs. P. and H. W. Williams), and when the first balance sheet was issued, the deposits had already reached one million pounds. We have before us a copy of the balance sheet for the year -ended 3ist December, 1893, and note from it that the deposit and other accounts on that date stood at the enormous total .24,708,000. With this aggregate in the mind, it is indeeJ interesting to glance over a copy of the first balance sheet, which was as follows : 31 DECK., 1865. s. d. Capital paid-up... ... ... ... .'.. ... ... 143,415 o o Deposit, Current, and other Accounts .., ...... 1,166,160 6 7 Keserve Fund ..................... 18,415 o o Profit and Loss... ... ... ... ... ... ... 18,323 2 9 i,34 6 3i3 9 4 s. d. 1 Cash in hand, at Bank of England, and at Agents ... 126,170 10 7 Bills of Exchange ... ... ... ... ... ... 655.435 o 2 Advances on Current Accounts, Loans on Stocks, Pur- ) chase Account and other Securities ...... j Bank Premises, Furniture, Fittings, &c .......... 8054 Preliminary Expenses, less amount written off ...... 535 o 3 In 1866, Lloyds absorbed the Warwick and Leamington Banking Company and the Stafford Old Bank (Stevenson, Salt and Co.), and two years later the Rugby Old Bank (Messrs. A. Butlin and Son) was taken over. In 1872 an amalmagati Dn was effected with the Wolverhampton Old Bank (R. and W. F. Fryer), and, in 1874, the Shropshire Banking Company was purchased. From the balance sheet of the following year we gather that the deposit and current account had by that date increased to rather more than five millions of pounds, the actual figures being 5,183,523. In 1879 the Coventry and Warwickshire Banking Company was bought, .and, in 1880, the purchase of the business of Beck and Co. onus of 8s. 4d. per share was similarly distributed, and, in 1863, 45. 2d. per share. In 1864 there was added to the capital 6,200, but in 1865 a bonus of no less than i8s. gd. per share was declared, thus making the shares 12 35. gd. paid, and the total capital 355,021 175 6d. The following year 30,051 i6s. i id. was added, out of surplus profits, to the capital, 21,875 in 1867, 12,500 in 1868, 6,250 in 1869, 10,000 in 1870, 5,000 in 1871, 6,250 in 1872, 11,250 in 1873, 7,500 in 1874, and 18,750 in 1875. In 1874, on tne acquisition of the business of Heywood Brothers and Co., 15,000 new shares were issued, so that by the close of the year the paid-up capital stood at 600,000. At a special general meeting, held in 1877, it was decided to create a further 25,000 shares, thus increasing the capital by half a million of pounds {nominal). These were issued from time to time, the amount paid up on the capital account on December 3ist, 1880, being 760,000. It remained at this figure till 1890, when, on the amalgamation with Williams, Deacon's bank, it was increased to its present solid total of 1,000,000. There are few, if any, other banks in the country which can show anything like such a record of surplus profits being added to capital, a policy which is not only gratifying to shareholders by increasing the value of their holdings, but also one which adds enonrcunly to the stability of the institution. 36 In 1866 the number of shares and the nominal capital of the bank were doubled, one share of 20, with 12 los. then paid- up, having been converted into two shares of 20 each, with 6 53. paid up. Thus, but for this change, two shares to-day, with 8 paid up on each, would have been one share with 16' paid up, of which 6 was paid by the shareholders and 6 out of the profits of the bank. It follows, therefore, that the divi- dend of 12! per cent., or i per share, now paid (2 on two shares), is equivalent to a dividend of 20 per cent, on an original share of 10. As has been already stated, the first year's profits were set aside to form the nucleus of a reserve fund ; and this most important reservoir of strength, in 1844, reached 50,000. This- sum was increased from time to time, till, in 1854, it amounted to 63,200 ; but the report presented to the meeting in February, 1855, stated that to meet losses, 13,200 had been withdrawn from it. However, in 1857, it again stood at 63,000,. and next year was increased to 78,000, At 1864 it amounted to the substantial figure of 100,000, and by 1875 had reached 200,000. At 1880 it had reached 340,000, and there remained stationary, whilst the price paid for the Bolton and Rochdale businesses was being gradually written off. In 1890 it was raised to 360,000, since which date it has been increased at the rate of 20,000 per year. In 1874 the Manchester and Salford Bank took over the business of the old private bankers Heywood Brothers and Co.,, of St. Ann Street, Manchester. In 1878 they absorbed the private bank of Hardcastle, Cross and Co., of Bolton, and some five years after that of Clement, Royds and Co., of Rochdale. In 1890 arrangements were made for union with Williams,. Deacon and Co., of London, and this move obtained for the Manchester Bank a seat in the Clearing House, a roomy London office in the very centre of the City, and a magnificent London business. 37 The bank was registered as an " unlimited company " in 1870, and as "limited" in 1881. In 1862 the bank opened a branch at Salford, and next year at Southport. The Ormskirk branch was established in 1865, Hulme in 1867, Chorley and St. Helen's in 1868, and since 1870 many have been opened in various districts, until to-day the business is carried on in sixty-two different offices. The first balance sheet we have before us bears date 1881, -when the deposit and current accounts stood at nearly 5^ millions ; the next year they amounted to rather over 6 millions and in 1890, after the amalgamation with Williams, Deacon and Co., they nearly touched 9^ millions. At the present time they are about 10^ millions. When the bank was inaugurated, Mr. Paul Moon James was appointed managing director, and he retained that office till 1853, dying in harness. He was succeeded by Mr. W T illiam Langton, who retired in 1876, in favour of Mr. T. R. Wilkinson, who was appointed ''general manager." This gentleman occupied that important post till 1890, when he retired, and Mr. Francis Kemp, the present genial general manager, was selected to fill the vacancy. For some ten years past a pension fund, based on the rules regulating similar funds of the Bank of England and the National Provincial Bank, has been in force. Space will not permit us to give a detailed account of the old private firm of Williams Deacon and Co., of Birchin Lane ; suffice it to say that from the "List of Bankers" for 1793 we oill the following : " Williams, Sons and Drury, 20, Birchin Lane" and this firm appeared in the " Directory " for 1779 as : "" Lowe, Vere, Williams and Jennings, of 20, Birchin Lane." Were the old house ai>le to state its experiences it would indeed be worth attention. May-be it existed in 1750, when, according to Gay, "not a guinea chinked on Martin's boards." There are few, if any, banks which ever enjoyed more wide- 38 spread respect than Williams Deacon & Co., of London, and certainly few, if any, had a firmer foothold in Manchester and the district than the Manchester and Salford Bank. The amalga- mation was in every respect a happy and fortunate one, each bank doing well for itself, each conferring a benefit on the other. Compared with the banks whose histories we have thus far given, Williams Deacon and the Manchester and Salford have effected fewer amalgamations. It was but recently tfrey took the important step of opening a new branch in the West-End of London a step, by the way, which they have had no cause to regret. BALANCE-SHEET, DECEMBER 3 isT, 1893. DR. LIABILITIES. s . d. To Capital: 125,000 50 shares, 6,250,000; of which Reserve Fund 420,000 o o 62,790 o o 553,227 9 5 403,499 13 4 22,772 18 3 10,463 o 4 Unpaid Dividends. . ... ... . -200 o o Dividend, December, 1893 62,500 o o Amount due on current, deposit, and other accounts 9, ,, Acceptances, credits opened, and bills negotiated ... Rebate account ,, Balance of profit and loss carried forward NOTE. This statement does not include the bank's r liability under the Baring Guarantee. 1 l ' 472,753 i 4. CR. ASSETS. By cash on hand and at the Bank of England .. ^1.^86,^70 o 2 . d. ,315,761 16 9, 971,562 3 8- 866,Ol6 12 IO- ,215,454 2 4 . ,450.792 18 8- 4 3.499 13 4 249,665 13 9. Money at call and at notice ... 929,182 16 7 755,000 Two-and-three-quarters per cent. Consols... \ 225,000 Two-and-Half per cent. Annuities L ,, 50,000 Local Loans stock ... ... ... ...) Guaranteed railway stocks, Indian Government secu- rities, Corporation and Colonial stocks, &c. ,, Advances on current accounts and loans on security 4 ,, Liability of customers on account of the Bank's acceptances, credits issued, and bills negotiated ,, Bank premises in London, Manchester, and twenty 11,472,753 i 4. CHAPTER VII. THE LONDON JOINT-STOCK. " FOR the purpose of enabling the inhabitants of the Metro- politan districts to participate more extensively than they can at present in the advantages offered by the new system of banking, by means of joint-stock establishments (the principles of which are proved to be in every respect as applicable to the Metropolis as they are to provincial towns, where private banking esta- blishments are rapidly merging into joint-stock banks), it has been resolved, after deliberate consideration, to form a Joint-Stock Banking Company, to be called ' The London Joint-Stock Bank,' with a capital of 3,000,000, divided into 60,000 shares of 50 each." Such was the announcement with which the London Joint Stock Bank heralded its existence in 1836, it then being arranged that the capital of the Company was to be 3,000,000 nominal, of which one-half was to be issued. Tem- porary offices were taken at 29, Coleman Street, and business was commenced, 2 per cent, being offered on current and -2% per cent, on deposit accounts. At the close of the first year a report was issued, with a balance-sheet attached ; the latter, as compared with the figures of the bank to-day, will be of great interest to our readers. So we reproduce it ; LIABILITIES AND ASSETS, NOVEMBER 20, 1837. THE LONDON JOINT STOCK BANK. DR. s. d. To Capital paid-up, being 7 per share upon 31,080 shares 217,560 o o ,, Amount due by the bank, including money taken upon security and their acceptances at not less than six months' date 594,101 17 4 ,, Balance carried to credit of profit and loss account ... 19,553 3 8 831,215 i Q 4 CR. s. d. By Exchequer Bills ... ... ... ... ... ... 206,300 12 6 ,, India Bonds 10,202 15 o Bills discounted, loans to customers, and cash in bank 590,521 19 9 ,, Building and preliminary expenses, a proportion of which will be annually written off 24,189 13 9 831,215 i o We have before us at the moment the balance-sheet for the 3Oth June, 1894, and, by its figures, we note that the progress made by the bank durii.g the fifty-eight years of its existence has been most striking, for it must be remembered that this is one of the few banks whose figures have not been run up by means of amalgamations. Side by side, the figures speak for themselves : 1837. 1894. Capital ... 217,560 1,800.000 Reserve riil. 1,163,215 Deposits ... 594,101 14,123,781 Acceptances nil. 1.340,204 Cash, money at call, bills discounted, and loans 590,521 13,581,925 Investments ... 216,503 3,200,276 Bank premises ... 24,189 301,965 A second issue of shares was made in 1840, and by it the capital was increased to 445,120. The following year 14,466 new shares were issued, the capital being augmented by 144,580, and then standing at 589,700. This amount was altered to 600,000 in 1842, at which figure it remained till 1864. The following year, by a further issue, the capital was raised to 1,080,000. In 1868 it stood at 1,200,000, and in 1884 it was increased by a further 600,000, thus bringing it to its present figure of 1,800,000. And now a w r ord or two as to the Reserve Fund. This, or the "Guarantee Fund" as the Joint-Stock call it, was founded in 1837 by the appropriation of the surplus profits, amounting to 2,932, and was steadily increased year by year till 1842, when- it stood at 93,214. The following year it was slightly decreased, in order to equalise the dividend ; but afterwards the 4 1 -total was again increased, and in 1847 it reached 121,919. By the end of 1858 the result of the constant additions from the profits was that the reserve amounted to 192,666, and the next year to 201,147. The year 1860 was a memorable one with the .bank, for, although the usual dividend was paid, a sum of no less than 60,000 had to be taken from the profits and set aside "to cover the losses incurred by the failure of Messrs. Streat- field and Co. and other houses connected with the leather trade." By 1865 the reserve had been increased to 305,000; .and on the 3Oth June, 1874, it stood at rather more than half a million. New Shares having been issued in 1884, the premium on them (500,000) was credited to the reserve fund, thereby increasing that important item to 1,167,642 at about which figure it at present stands. As has been already stated, the bank was opened in tem- porary offices in Coleman Street, but very soon afterwards was removed to Princes Street, Mansion House. The report forjune, 1872, stated that the directors had succeeded in purchasing the valuable freehold property known as the " Poultry Chapel," .adjoining the rear of the Bank premises in Princes Street. "This most desirable acquisition," continued the report, "will te immediately made available to meet the constantly increasing requirements for carrying on the business of the bank; and" the directors beg to congratulate the proprietors on that object having been secured at an outlay so comparatively moderate, considering the ulterior advantages that will accrue to the bank from the purchase." In 1840 a branch was opened in Henrietta Street, Covent Garden, but, very soon after, the premises previously occupied by Messrs. Hammersley, in Pall Mall, were procured, and the Covent Garden branch was transferred there. The Chancery Lane branch was opened in 1866, and two years afterwards the one in Smithfield. In 1870 the London Joint-Stock took over the business of the .Alliance Bank, in Southwark, and on July i8th opened a 42 branch at No. 255, Borough High Street. In 1870 the business of the Albion Bank, in Smithfield, was taken over. The report for the first half of 1872 stated that the directors had decided to- open a branch at Paddington. No further branches were opened for some twelve years, until, in 1883, business was. started in premises in Great Tower Street. Five years later the Leadenhall Street branch was opened, and in 1890 one at 55, Old Broad Street. In 1891 branches were started in Cam- berwell and Rotherhihe (the latter being discontinued in 1893), and in 1892 in South Kensington. In 1893 the London Joint- Stock Bank surprised London and, indeed, the country, by announcing that the Imperial Bank had been purchased. This, increased the figures by some three millions, added thirteen to the number of branches, and gave the bank a fine building in Lothbury. In 1865 it was decided that the Consols held by the bank should be written down to 90, and this was accordingly done- The step was an important one, and must be borne in mind when one considers that the present balance-sheet shows Con- sols 1,800,000. It is a pity that all banks do not follow this, wise precaution. In 1873 the bank was registered as an unlimited, and in 1882: as a limited company. In 1867 the Directors announced that " rules and regulations, for granting a retiring allowance to the staff of the bank" had been established, and we notice in the report for 1887 that 5,000 was voted to the credit of the " Superannuation Allowance Fund." As a rule, in the early years of the existence of our old banks the directors' reports are exceedingly lengthy, but in the case of the London Joint-Stock, there are many instances, where the report did not exceed two or three paragraphs. As a point of fa c% we do not think there is a single bank in existence whose statement to the shareholders can be more concise than the following: "The accounts which the directors. 43 have in the course of their duty to submit to the shareholders, . show that the net profits of the bank during the six months completed on the 3Oth ult. amount to 27,341 153. 7d. The payment of the dividend at the rate of 6 per cent, per annum, clear of income-tax, will leave the sum of 9,341 155. yd. to the credit of the profit and loss of the next half-year. The dividend will be payable on and after Friday, the 25th instant." That was the report presented to the Joint-Stock shareholders on the i;th July, 1851. The first manager of the bank was Mr. George Pollard, who retired in 1860 on a pension of 2,000 a-year. He was suc- ceeded by Mr. Fleming Hewett, who retired, owing to impaired health, in 1865, on an allowance of 1,000 per annum, having been in the service of the bank twenty-six years. His quondam colleague, Mr. John Whitaker Nutter, was then made general manager, which post he retained till his death in 1871, when Mr. W. F. Narraway, who had been manager of the country department of the head office for many years, was elected to- fill that most important office. CHAPTER VIII. THE CAPITAL AND COUNTIES BANK, FROM the sixtieth annual report of this bank (soth June, 1894), we learn that the dividend to be paid to the proprietors was at the rate of 16 per cent, per annum. When it is remembered that the payment of this dividend requires no less than 149,200 per annum, one can readily form an idea of the great extent and remunerative nature of the business carried on. The Hampshire Banking Company was established on May ist, 1834, with its head office in Southampton. The original capital was 300,000, divided into 6,000 shares of 50 each. At an extraordinary meeting of the shareholders, held on October 3oth, 1839, it was decided (i) to increase the capital by the creation of further 2,000 shares; and (2) to authorise the board to pay half-yearly instead of yearly dividends. These shares were issued at 3 premium. In 1848 a call of 5 per share was made ; and, nine years later, the directors proposed that 20,000 should be taken from the reserve, or guarantee, fund, and capitalised, by the issue to the then shareholders, pro rata, of 2,000 new shares at a premium of 2 per share. It is needless to say that the proposal was hailed with great satisfaction, and immediately carried into 'effect. In 1864, new capital being issued at a premium of 4 per share, raised the total paid up to 150,000, while the premiums increased the reserve fund to 50,000. In December, 1875, the capital stood at 200,000; and in 1877, when the :aiame was changed to the Hampshire and North Wilts Bank, a 45 further new issue increased it to 300,000. This amount was. again augmented in 1878 and 1883, at which latter date it was. represented by 400,000. After the amalgamations in 1886, the capital stood at 700,000; in 1891 it had reached 894,572, and the next year it was raised to its present figure 932,500. As already stated, the head office was originally at South- ampton. There it remained till 1876, when it was removed to London. Two years afterwards the title was changed to the Capital and Counties Bank, and the Company was. registered as a Limited concern in 1880. In the report for the year ended June 3Oth, 1877, we note the following paragraph, which will give an idea that the onward course of this well-managed bank was not always easy : " Shortly after commencing business in London, the directors applied to be admitted into the Clearing House ; but the com- mittee, which consists of London bankers, declined to accede to the application. This decision has caused considerable inconvenience to bankers generally, and admittedly to the London Bankers themselves, as it has thrown out of the Clearing House the transactions of fifty branch offices which, have hitherto passed through that channel and has also added to the risk attendant upon the collection, on both sides, of cheques and other cash documents payable in London. The directors have taken measures to mitigate, so far as possible, the inconvenience to their country correspondents, and they hope the time is not far distant when the London bankers, who at present have the exclusive privilege of entry to the Clearing House, will take a broad view of the situation and extend the advantages of the clearing to all bankers having City offices." We should be only too pleased to find the wish above expressed an accomplished fact, as bankers generally would benefit and the clearing clerks would have the satisfaction, of seeing a much larger " House " erected. 4 6 The first balance-sheet of the Hampshire Banking Company : issued to the public in 1857, was as follows : DR. To paid-up capital, being 10 per share on 8,000 shares... 80,000 o o Guarantee fund 20,990 i 4 ,, Amount due to customers on deposit and current accounts, and upon drafts in circulation 53*>392 3 10 ,, Profit 24,249 19 9 656,632 4 n CR. By cash at call, bills discounted, loans, and other securities ... 649,632 4 n ,, Cost of bank premises 7,000 o o 656,632 4 ii Thus it will be seen that twenty-three years after the establish- ment of the bank the deposits had only reached half a million ; but at the same time it must be remembered that in 1834 tne population of Southampton was only a little above 35,000. As compared with the balance-sheet for the year ended 3oth June, 1894, the difference is most striking. Now the capital is 932,500, the reserve fund 722,000 the deposits and acceptances rather more than 12 millions, the cash and invest- ments nearly 6 J millions, bills and loans nearly 7 millions, while bank premises reach the total of 330,000. With regard to the reserve fund, the balance of this most important item in 1853 having exceeded the sum of 20,000 the deed of settlement fixed the maximum at one-fourth of the amount of paid-up capital the sum of 1,600 was withdrawn and distributed to the shareholders by way of bonus at the rate of 45. per share. A similar bonus was paid the next year, and in 1855 one of 55. In 1856 and 1857 bonuses of 6s. per share were declared in the same manner, and in 1857, as already stated, 20,000 was withdrawn from the reserve and capitalised. In 1863, a resolution was passed raising the maximum balance to 50,000 ; and naturally this amount increased with the 47 increase of capital. The balance-sheet for December, 1875, showed the reserve fund as 100,000. In 1878 it stood at 210,000, at 300,000 in 1883, at 500,000 in 1886, at 692,000 in 1891, and at 722,000 in 1892, at which figure it remains at present. In 1840 an amalgamation was effected with the Southern District Banking Company, and this gave the bank several branches in the Isle of Wight. In 1854 tne private bank of Wickham, Baily and Rawlins (of Winchester), was bought, and in 1861 the business of Heath and Co. (of Andover) was absorbed. In 1863 the private bank of Atkins and Son (of Portsmouth) was taken over, and next year that of Seymour and Co., (of Basingstoke and Odiham). In 1873 the Hampshire Banking Company bought up the English and Jersey Union Bank of Jersey. The head office was removed to London in 1876, and next year the bank took a most important step by absorbing, or amalgamating with, the North Wilts Banking Company, and changing its title, as already mentioned, to the Hampshire and North Wilts Bank, which was soon afterwards altered to the present title. In 1878 the old firm of Willis, Percival and Co., of Lombard Street, having suspended pay- ment, the Capital and Counties Bank took over the business and the office. No further amalgamations took place till 1883, when the private banks of Haydon and Co. (of Guildford) and Locke, Tugwell and Meek (of Devizes), were taken over. An important absorption took place in 1886, when the Capital and Counties acquired the Gloucestershire Banking Company, with its forty-two offices in the West of England. The same year the firm of Knight and Son (of Farnham), was purchased. In 0:890 the Western Counties Bank and the Northampton Banking Company were absorbed, and in 1891 the two banks of Garfit, Claypon and Co., Limited (of Boston, &c.), and Watts, Whidborne and Co. (of Teignmouth, &c.), were procured. In 1893 the business of Messrs. Mellersh and Co. (of Godal- 4 8 ming), and that of Messrs. Wells, Hogge and Lindsell (of Baldock and elsewhere) were acquired. Thus it will be seen that the Capital and Counties have obtained the businesses of no less than eleven private and seven joint-stock banks. Of course while these various amalgamations were being effected, the bank opened up branches in whatever districts presented favourable opportunities for remunerative business, so that now it has no less than 117 branches and sixty-one agencies. Naturally, the totals of the deposit and current accounts have been materially assisted by the different banks purchased or absorbed, but still they show remarkable growth. The advance up to 1863 was rather slow, and it was not till then that the aggregate of the deposits exceeded 700,000. In 1865 another figure was added and the total stood at rather more than one million. In 1877 it had increased to 4 millions ; in 1866 it exceeded 7 millions ; in 1889, 9 millions ; in 1891 yet another figure was added, the total then standing at 10,835,306. On June 3oth last the deposits were represented on the balance- sheet by 11,920,188. Originally the Hampshire Banking Company issued its own notes; but arrangements having been made with the Bank of England, the issue was discontinued on January ist, 1841. The premises in Threadneedle Street have been twice enlarged, three additional houses (Nos. 39A, 38, and 37) having been taken. The present building is beautifully fitted up, and can compare favourably with any bank in the metropolis. The first manager was Mr. Thomas Trew, who died in 1845, being succeeded by Mr. E. Atkins. This gentleman retired on a pension in 1865, and was given a seat on the board, which he retains at the present moment. On the retirement of Mr. Atkins, Mr. T. Keeping and Mr. R. Legg were appointed joint managers, the former of whom resigned in 1872, and the latter died in 1873. Mr. W. S. Reid was then elected as general, manager, and he continued to conduct the affairs of the rapidly- 49 extending bank till his death in 1888, when Mr. Archibald Young, who had been City manager since 1877, was appointed his successor. Mr. Young retired owing to ill health in October, 1894, and was succeeded by Messrs. G. A. Harvey and E. D. Vaisey, as Joint General Managers. CHAPTER IX. PARR'S AND ALLIANCE. IN the days of long ago it was the custom for many merchants to carry on, to a certain small extent, the business of bankers, and many of the most renowned banks of the present time can trace their origin to this source. It was thus that Parr's Bank was founded in Warrington, but the date is uncertain. Enjoy- ing public confidence to a remarkable extent, the connections of Parr and Co. were extended to districts round, and the name of the bank became quite a household word. In 1865 a limited Company was formed, with a capital of one million pounds, divided into 10,000 shares of 100 each (of which 10 per share, or 100,000, was paid up), to take over the business of Parr and Company. The same year an arrangement was made by the directors of Parr's Banking Company to purchase the old-established business of Thomas Firth and Son, at Northwich, and two years later the Metropolitan and Provincial Bank, of Maccles- field, was acquired. A call of 5 per share was made in 1871, thus bringing the paid-up capital to 150,000. In 1874 a further call of 5 per share was made, and at the same time 4,500 new shares were issued, the bank having taken over the business of Woodcock, Sons, and Eckersley. In 1875 the paid- up capital was represented by 391,500, and, by sundry issues of new shares, it was raised from time to time until, in 1883, it stood at 560,000, at which figure it remained till 1890, when the issue of 2,000 new shares brought it up to 600,000. In 1891 it was again increased to 650,000, and the following year, on the amalgamation with the Alliance Bank, it was raised to its present amount, 1,000,000. These issues of new shares were frequently made for the purchase of other banks. In 1877 Parr's took over the private bank of F. W. Jennings, of Leek; in 1878 Dixons and Co., of Chester; and in 1883 an amalgamation was effected with the National Bank of Liver- pool. Parr's then rested for a few years, evidently on the look- out for a chance of getting a foothold in the Metropolis. An extraordinary general meeting of the shareholders was held in Warrington on July 25th, 1891, when the Chairman said: * 'The total turnover of the bank, amounted to a large sum in the past year, and of this amount rather more than one-half passed through London ; and it is partly for this reason, and partly also in order to take the place which we believe our large transactions and important banking position fully warrant, to secure the advantages of a share of London business, an open- ing to the London market for the employment of surplus funds, admission to the London Clearing-House, and to obtain greater capability for giving increased facilities in London to our com- mercial friends in Warrington, Liverpool, and elsewhere, that your directors have for some time past considered it desirable to seek an opportunity for an union with some good bank in the City of London, whereby the objects they had in view might be attained, and they have now the honour and pleasure of announcing that an arrangement for amalgamation has been concluded between the partners of the very old-established and much respected banking firm of Fuller, Banbury, Nix and Co., of 77, Lombard Street, London, and Parr's Banking Company, whereby your bank obtains entrance to London, and, by means of a first-class connection in the City, will command all the advantages I have enumerated, besides many others which such a position may be expected to afford." Londoners were sorry for the private bank ; but the Lombard Street bankers knew the advent of Parr's into the City meant 52 another keen competitor for London business, for Mr. John Dun had been known to them for many a long day as one of the smartest bank managers in the provinces. Very soon a. further announcement was made. It was patent to everybody that the Lombard Street premises, though large enough for the. business of Messrs. Fuller and Co., were miserably inadequate, for the business connection of Parr's, so it was understood that a further change would soon be made. But few were prepared for the announcement, in 1892, that an amalgamation had been effected with the Alliance Bank. By this step splendid premises and a magnificent brokers' and general business were procured,, and the deposits were increased by no less than 4^ millions.. Early this year an arrangement was made by which the old private bank of Sir Samuel Scott, Bart., and Co. was obtained a firm known all over the world ; and this year the little private bank of Shrubsole and Co., Kingston-on-Thames, has been taken over. For a long time rumours have been rife as to* another important amalgamation or absorption in contem- plation, and two or three names have been mentioned, but we. are unable to learn whether there be any truth or not in the statements. One thing is certain, Parr's have no branch in Manchester, although they extend all round it, and it is clear that their customers' connections with and transactions in that city must be both numerous and important. The reserve fund, which was started in 1865 with i,ooo r was increased year by year until 1871, when it reached 54,92 i r and 45,921 was written off as the balance of purchase account, a point with which we shall deal later. By the addi- tion of 16,000 the next year the reserve was brought up to 25,000, and ever since, by additions from the profits, and by premiums on new shares, this most important item has steadily increased. Thus it was 80,000 in 1874, 170,000 in 1875,. 269,650 in 1879, 300,000 in 1884, 370,000 in 1890, 390,000- in 1891. When the Alliance amalgamation took place, in 1892,, 53 the reserve was written up to one million, at which figure it remained until this year, when the directors wrote off 100,000 as the balance of the purchase account of the two last absorbed banks. Parr's seem to have already made a point of closing the purchase accounts at the earliest possible moment, a policy which is worth)'' of the highest commendation. On the first balance-sheet (1865) the deposits were put down at 905,000. Two years later the corner was turned, and the figures exceeded the million. In 1874 the total was 2,876,000 ; in 1883, 4,567,000 ; in 1888, 5,229,000 ; in 1890, 6,293,000 ; in 1891, 7,153,000; in 1892, 11,615,000; and on the 3Oth of June, 1894, 12,776,000. It may be of interest to many of our readers to compare the figures of the first and last balance-sheets. Here they are : 1865. 1894. Capital issued 1,000,000 5,000,000 ,, paid-up ... ... ... ... 100,000 1,000,000 Reserve fund nil. 900,000 Deposit and current accounts 905,361 12,776,204 Acceptances 1,208 1,223,247 Purchase account 100,000 nil. Balance of profit and loss ... ... 11,304 129,626 Cash on hand and at Bank of England money at call and short notice ... 150,631 4,768,802 Investments 67,948 1,291,627 Bills discounted and loans 839,086 8,529,530 Preliminary expenses 862 nil. Bank premises and furniture ... ... 5>577 215,869 When the first report was issued the bank had branches at Northwich (late Thomas Firth and Son), Runcorn, St. Helen's, Widnes, and Winsford, the head office being, as already stated, at Warrington. In 1891 the registered office of the Company was removed to Lombard Street, and when the amalgamation with the Alliance was effected the next year, the Bartholomew Lane premises were duly recorded as the registered office. The Alliance amalgamation gave Parr's a large number of London offices, and at the present time the business of the bank is carried on at sixty-four different centres. 54 We think we are right in saying that Parr's can claim the credit of being the first bank to pay quarterly dividends. For a long; time the high rate of 19 per cent, per annum has been main- tained, and when one remembers that, in addition to this, large sums have been written off property account and the Consols, have been written down to go, one can only assume that the management of the bank continues of the same able nature that has characterised it all through. Mr. John Dun, who joined the service in 1865, still retains the reins of power, acting^ in the dual capacity of general manager and director. The present directors are : Mr. Alfred Turner (Chairman). Mr. Cecil F. Parr (Deputy-Chair - . man). Mr. Edward Banbury. The Hon. Wm. St. John F. Brod- rick, M.P. Mr. Thomas H. Dixon. Mr. John Dun. Mr. Wm. Du*m, M.P. Mr. N. Ffarington Eckersley. Sir Horace B. T. Farquhar, Bart. Mr. Arthur P. Fraser. Sir Thomas G. Frost. Colonel Gamble, C.B. Mr. Alfred Hewlett. Mr. George McCorquodale. Mr. Henry Warren Meade-King.. Mr. Hugh B. Muir. Mr. Edward W. Nix. The Right Hon. Lord Playfair,. K.C.B. Mr. Hugh Cameron Ross. Mr. Peter Stubs. CHAPTER X. THE LONDON AND SOUTH-WESTERN. THIS bank is one whose progress is in no degree attributable to amalgamations. The steady and constant growth of the figures is entirely due to an equally steady and constant growth of business. When founded in 1862 there was no bank on the one side from the Elephant and Castle to Croydon, and on the other from New Road (now Euston Road) to Watford and St. Albans. The then directors of the London and South-Western Bank determined that they would cater for people living in the suburbs a policy which has wisely been followed ever since with the result that to-day they have no less than thirty-six branches in the southern districts, twenty-two in the northern, and fifteen in the eastern. There can be no question that the London and South-Western can claim to be the pioneer of sur- burban banking, and certainly more than any other establishment it considers the interest and convenience of persons residing in the outskirts of London. We do not recall a single suburb where we have not seen a branch of this bank, and, in nine cases out of ten, the buildings compare most favourably for architectural beauty with any in the neighbourhood. The head office in Fenchurch Street is not a very imposing- looking building, but everything has the appearance of stability and prosperity. By the courtesy of the general manager we had the opportunity of going over the building, and were surprised to find the extent of this valuable freehold property. We cannot help feeling that the directors have a second important reserve fund in their bank premises, since they record them on their balance sheet at 376,000 only. 56 The bank was started in 1862, and, premises being taken, the head office was established in Regent Street, and opened for business on July ist of the next year. Very soon afterwards branches were established in Camden Town and Bristol. The first balance-sheet showed capital 58,125; current and deposit accounts, 152,618; cash in hand and at call, 47,973; bills and loans, 151,000. These figures are of exceptional interest when one remembers that in the balance-sheet (dated 3Oth June, 1894) the capital is represented by 600,000, the current and deposit accounts by 5,822,000, the available cash by 1,233,000, the investments by 1,897,000, bills by 547,000, loans by 2,514,000, and, in addition, there is a reserve fund of 240,000. In 1865 the head office was removed to 29, Lombard Street and, in 1871, to 7, Fenchurch Street, where it remained till 1888, when the present building was erected, and the head office was transferred there. The paid-up capital of the bank, which appeared in the first balance-sheet as 58,125, was increased by subsequent issues of shares until, in 1877, it stood at 200,000, in 10,000 shares of 100 each, with 20 paid, having the large liability of 80 per share. This, it was found, prevented many persons of wealth and influence taking an interest in this bank by investing in its shares, and under these circumstances it was considered most desirable to reduce the amount of uncalled capital per share. The matter was brought before the share- holders at extraordinary meetings held in May, 1883, when it was unanimously resolved to divide each share of 100, with 20 paid, into two shares of 50, with 10 paid, it being under- stood that calls to the extent of 10 per share would be made, as the business of the bank required increased capital, in order to reduce the uncalled capital from four to two and a-half times the amount paid up on each share. Four calls of 2 los. each were subsequently made in the years 1883, 1884, 1888, and 1889, raising the total paid-up capital to 400,000, in 20,000 57 shares of 50, with 20 paid, and the amply sufficient liability of 30 per share. In 1890 it was decided to increase the subscribed capital, and, consequently, 10,000 new 50 (20 paid) shares were issued at a premium of (12 zos. per share, this bringing the paid-up capital to 600,000, and also giving a substantial sum for addition to the reserve fund. At the present time the subscribed capital is ij millions, and is held by some 1,700 proprietors. Now, as to the reserve fund. By the issue of new and unallotted shares in 1864, a profit of 14,500 was made, and this formed the nucleus of the present substantial reserve fund. Year by year a portion of the bank's profits have been set aside -sometimes more, sometimes less. In 1890, 10,000 new shares were issued at a premium of 12 los. per share, which were allotted to the old shareholders, the market price of the shares then standing at 39 40. The result of the steady provision against the proverbial rainy day, which we trust may never come, is that the bank now holds, as a reserve, nearly a quarter of a million of money. We are, moreover, very much disposed to think that the investments as represented on the balance-sheet and as saleable in the market are exceedingly different, and that, if the bank were to place them on the market to-morrow, there would accrue a surplus over the book prices which would compare very favorably with the present reserve fund. We have already called attention to the fact that the London -and South-Western Bank does not, in any degree, owe the .growth of its figures to the fictitious inflation caused by amalga- mation. So far as we can learn, no single bank hsv? been taken over. It is, therefore, the more interesting to glance at the figures representing the aggregate balances of current and deposit accounts. In 1864, or rather on Deceiiibci 3ist, 1863, these were 1525000, and steadily increasing : at the close of another five years they exceeded half a million. The million was turned in 1875, and in 1882 the initial figure was changed, 58 the total of deposits then held by the bank being represented by 2,143,000. In 1886 this item had been increased by another million, and on June 3oth, 1889, stood at 4,100,194. The- present total is 5,751,342. To illustrate what we mean by the steady and continuous progress of the bank, it is only needful to give the following figures, which may be taken as a fair sample : BALANCE OF CURRENT AND DEPOSIT ACCOUNTS. June 3oth, 1888 ... 3,601,297 June 3oth, 1892 1889 ... 4,100,494 1893 1890 4,778,688 1894 1891 5,100,044 5,446,290 The first general manager was Mr. George A. Addison, who- previsously was an inspector in the London and County Bank ;. and, on entering the service of the bank on its foundation, he persuaded his friend and colleague, Mr. G. T. Goodinge, also to- resign his post in the London and County, that gentleman being appointed chief accountant of the new venture. -Owing to ill- health, Mr. Addison retired in 1869, and shortly afterwards. died. Mr. H. M. Leslie was then appointed general manager,, and he retained that post till 1875, when, on his retirement, Mr. G. T. Goodinge and Mr. William Herbage were appointed joint general managers. It will be remembered that Mr. Herbage- died rather suddenly in September, 1892. Mr. Goodinge has since then conducted the business of the bank, being aided by Mr- F. Lubbock Jermyn and Mr. Alfred Wallis, as assistant managers. In 1881 the bank established an Officers' Guarantee and Pro- vident Fund, the directors undertaking to provide sufficient funds to pay compound interest at 5 per cent, on the balance of the amounts paid in by the members of the staff, who con- tributed at the rate of 5 per cent, on their salaries. At the close of last year this was divided and remodelled as a Savings *' Fund foi Ll:e staff simply, and a complete retirement scheme was drawn up, pleasing alike to directors and staff, the former obtaining the permission of the shareholders to vote for the- 59 future 2,000 every year out of the profits of the bank to the- Retirement Fund. The balance in hand at the present time is. considerable. It may be of interest to state that the premises, No. 7,. Fenchurch Street, at one time the head office of the bank, were previously occupied by Messrs. Hankey and Co., and the following story, although not new, may be repeated in this connection : " Late one evening in 1720, a carriage drove up to the door of Messrs. Hankey and Co.'s banking house, in Fen- church Street. A demand to see a partner was responded to, . and when the visitor had satisfied himself that he was in the presence of one of the firm he handed a packet, carefully sealed, . desiring it might be placed aside till he called for it. The request was singular, but it was granted. A few days passed a few weeks a few months but the stranger did not make iiis appearance ; and, after the third year had elapsed, the partners agreed to open -the mysterious parcel in each other's presence. - To their surprise, it contained 30,000, with a letter, which stated it was obtained in the South Sea Bubble. Directions- were added as to its investment, and the interest, the letter said r . was to be devoted to the relief, of the poor." CHAPTER XL THE CITY. THE charter of incorporation of the City Bank is dated July 2Oth, 1855, so that the bank is just forty years old. The doors were opened for business on August 6th in the same year, the -authorised capital being one million pounds. The following paragraph from the first report is significant, and we think that the statement made in it has been thoroughly carried out up to the present date : *' Although the steady progress which the City Bank has made has exceeded the expectations of your directors, they consider it necessary to ^tate that their great desire has been to establish the bank on sound principles rather than to realise large immediate profits." The paid-up capital, which was 150,000 originally, was increased by the issue of 1,500 new shares, at a premium of 8 per share, during the first year of the bank's existence, so that before the end of 1856 this item stood at 225,000. A third issue of shares this time at a premium of 10 per share was made in 1857, the paid-up capital being thereby raised to 300,000, at which figure it remained till 1861, when the directors issued 2,000 new shares, also at a premium of 10 per share. This increased the paid-up capital by 100,000, but the remaining 2,000 shares having been issued in 1863, the : following year the capital stood at half a million. On the igth of July, 1864, an extraordinary general meeting of the share- holders was held, at which a resolution was passed that the capital should be increased by the additional sum of 1,000,000, to be raised by the creation of 10,000 shares of 100 each ; and, -at another extraordinary general meeting, held on the i6th January, 1866, it was resolved that each 100 share of the Com- 6i pany should be divided into five shares of 20 each, and that the amount of capital then called up on each 100 share should be considered as having been called up in equal fifth parts OR each of the five -20 shares into which the 100 share should be divided. The effect of this resolution was that the capital stood at 500,000, or - 10 per share on 50,000 shares. In 1872 the directors made an issue of 10,000 20 shares, at a premium of 2 per share, and at an extraordinary general meeting, held on the 2Oth of January, 1880, in order to register the bank under the Companies' Acts, 1862 to 1879, as a limited com- pany, the nominal amount of each share was increased from 20 to 40 (thus raising the nominal capital from 2,000,000 to 4,000,000). At the same meeting it was resolved to issue 20,000 new shares at a premium of 2 per share. This* increased the paid-up capital to 800,000, and in September,. 1882, by the issue of a further 20,000 shares, the capital was raised to its present substantial amount of one million pounds. The frequent issue of new capital at a premium naturally helped much towards the building up of the present reserve fund of 500,000. At the first general meeting of the shareholders it was resolved to start a reserve fund with 10,000. That amount was increased to 30,000 by the close of 1858, and five years later reached 80,000. The share issue of 1863 bringing in 50,000 by way of premium, this amount was added to reserve, which was thereby raised to 130,000. The next year a further 10,000 was added, and this item remained at that figure till 1866. At the half-yearly meeting in July of that year the shareholders were informed by the chairman that bad debts were depending not in a state to be then definitely adjusted,, but that 19,961 i6s. 2d. had been written off the profits to meet them. The report for the December half of that year- contained the following significant sentences : Under the protracted depreciation of mercantile securities these debts have proved more serious than was at that time anticipated, and 62 "in order to entirely extinguish the loss the directors very much regret that it has been found necessary to trench materially on the reserve fund a fund, the primary object of which, under the deed of settlement, is to meet exigencies such as the present. The directors, however, feel con- fident, from the improved character and steady extension of this business, the surplus profits of the bank will enable them shortly to restore the reserve fund to its former amount. On that occasion the reserve was depleted to the extent of -82,060 I2S. 4d. The directors confidence was, however, well founded, since, by 1871, constant increments had once again brought this item up to 100,000; but the next year, "in con- sequence of recent failures," 35,000 had to be withdrawn to meet losses on bills. It must have been very gratifying to the board to report, at the close of 1875, that "11,445 6s. had teen recovered to that date from accounts previously provided for." This enabled them to vote 15,000 to be re-transferred to the reserve, and showed the wisdom of the policy under Avhich the bank was directed. From that year until 1883, the reserve fund was steadily augumented, sometimes out of profits, sometimes by the issue of new shares, and the report for December, 1883, stated that " 20,000 from profits and 100,000 premium on 20,000 new shares issued," being transferred to reserve, brought it up to 500,000, at which figure it has ever since remained. It may be asked, " If the bank could build up a reserve of 500,000, to a large extent out of its profits, what "has been done with the surplus profits for the last ten years, since which date the surplus fund has remained stationary ? " A glance at the balance-sheets before us, is sufficient to answer that question. On the last statement bank premises are recorded as 163,110 I2s. 5d. ; and when one considers for a moment the splendidly finished building in Finch Lane the recent alterations in, and addition to which alone cost 85,000 < and then remembers that the bank has fourteen other branches, all in first-class positions in and just outside the City, all handsome buildings, all either freehold or with long 63 leases, it is easy to understand that, at a moderate estimate, "bank premises" must be worth considerably more than double the value at which they are assessed in the accounts.. Since the date on which the reserve reached its limit of 500,000, it is .a common thing to read on the balance-sheets issued that 5,000 10,000, or even 15,000 were written off bank premises and furniture. Evidently, then, the bank has here a substantial second reserve. And now a word as to current and deposit accounts. On- the first statement (1856) these appeared as 786,000 so that evidently the bank received much patronage from the very start and in 1857 the million was more than turned. Two millions were exceeded in 1860, four in 1863, and three years later the balance of deposits amounted to nearly five millions and a-half. The following half-year showed a material drop of nearly one million and a-half, which the directors explained as being due from a reduction of liability on bills payable " and not from any falling off in the general business (which, on the contrary, had con- siderably increased)." The balance fluctuated naturally half-year by half-year, and it was not till 1873 that six millions were reached. From the last published balance-sheet we gather that the total of deposits and acceptances on the 3Oth June last was 7,538,748. This bank was admitted to the Clearing House on the ist October, 1856, and in 1863 opened a branch office in Old Bond Street. Two years later the Tottenham Court Road and Ludgate Hill branches were opened, and in 1872 another branch at Paddington. The following year a branch was .started in Knightsbridge, in 1876 one at Aldgate, in 1878 at Holborn, in 1880 at Old Street, in 1886 at Queen Victoria Street, in 1887 at Fore Street, in 1891 at Shaftesbury Avenue, in 1892 at Bedford Row, in 1893 at Old Kent Road, and this year in Oxford Street. The first manager was Mr. A. J. White, who, retiring 64 through continued ill-health in 1864, was granted a pension of 1,500 a year and was elected to a seat at the board. His post was filled by Mr. J. W. Duncan and Mr. A. G. Kennedy, the former of whom, retiring in 1871 (on a pension), the sole management devolved upon the latter, who in 1877 was assisted in his onerous duties by Mr. David G. H. Pollock, who was then appointed assistant manager. Mr. Kennedy, after nearly twenty-eight years' service as manager, was compelled to retire through ill-health in 1890, when Mr. Pollock was invited to take the reins of office. This position he has since filled to the satisfaction of directors, shareholders, and customers alike. He is ably assisted by Mr. H. W. Smart as deputy assistant manager, and by Mr. H. W. Lamb as secretary. From the above account it will be seen that the City Bank, throughout the forty years of its existence, has not absorbed, amalgamated with, or taken over a single bank private or joint-stock. We do not think there is any bank in the country at the present time with which the City Bank cannot favourably compare for the extent of its Foreign and Colonial business. The last dividend declared was at the rate of 9 per cent, per annum, one point lower than the 10 per cent, which has been regularly announced for several years past. The figures for 1894, as compared with 1854, are as follow : 1854. 1894. Capital paid-up 217,395 1,000,000 Reserve fund 12,000 500,000 Current and deposit accounts and acceptances 786,581 7,538,748 Liability on bills negotiated nil. 9>492 Cash in hand v 285,423 at Bank of England 610,779 at call V 940,752 5 8 5>ooo Bills discounted 1,246,621 Loans / 3,601,282 Investments 7 6 > I 59 94i 6 73 Bank premises 3 6 5 163,110 CHAPTER XII. THE CONSOLIDATED. THERE are few banks at present in existence which have a more interesting history than the Consolidated. It can claim to be an embodiment of one of the oldest joint-stock banks in the pro- vinces, and one of the oldest private banks in London. The Bank of Manchester, established in 1829, was the first joint-stock bank in that city. It carried on a more or less successful business till 1842, when, getting into troubled waters, the directors decided with the sanction of the shareholders, that the affairs of the Company should be wound up. The liquidation went on steadily for ten years, and at the expiration of that period, several friends of the bank, with their faith in its stability and old business connections still surviving, determined to resuscitate it and make a fresh start with the balance of the surplus assets then in hand. During the ten years of its quiescent state four joint-stock banks had ceased to exist, and three private banks had also gone. So, on April igth, 1852, the Bank of Manchester once more opened its doors, and very soon the directors saw that they had taken a wise step, since business came in freely. On October I5th, 1858, it was decided to register the Company under the Limited Liability Act a well-advised precaution, as possible shareholders were, of course, quite cognisant of the early misfortunes of the bank. In 1863 an amalgamation was effected with the old-established private bank of Heywood, Kennards and Co., of London ; and then the name was changed from the Bank of Manchester, Limited, to the Consolidated Bank, Limited. This amalgamation caused considerable alteration in the constitution of the bank, 66 six new directors being placed on the board, the capital being increased from 226,924 to 453,848, and Mr. Pemberton Heywood being appointed chairman. Londoners were not altogether pleased with the news. They recognised the fact that both parties to the amalgamation would benefit, but they did not like the idea of such a noted old bank as Heywood, Kennards and Co. throwing in its lot with a joint-stock concern and that a provincial one. The Consolidated directors, however, were quite able at that time to look after their own interest ; and so, continuing their progressive policy, they took over, in the autumn of the same year, 1863, the business and premises of Messrs Hankey and Co., of Fenchurch Street, who had been established for more than two hundred years. Next year it was decided to open a branch at Norwich, and this was accordingly done ; but in 1866 it was closed. We used just now the expression that "at that time" (1863) the directors were able to look after their own interests. Some at least of them appear to have lost their heads temporarily soon afterwards, as will presently be seen. In 1866 the Consolidated board decided to take over the Bank of London a joint-stock institution. This was known to be no exceptional bargain, but no one was prepared for what followed. The Times of May 2gth of that year contained a letter, " dated from Fenchurch Street, and signed by the chairman and seven London directors, to the effect that, having discovered serious errors in the list of Bank of London assets, they had taken the grave responsibility of closing the doors." This line of action, of course, necessitated the Manchester board doing the same. The most remarkable part of this very extraordinary action was that the London board acted entirely and absolutely without consultation with their Manchester confreres. What made it the more annoying was that there was practically no necessity whatever for the adoption of such drastic measures, and, had an average amount of common forethought been exercised, all difficulties might 6; very easily have been smoothed over. After six weeks' sus- pension the doors were once again opened, the capital having- been augmented by 200,000. The absorption of the Bank of London gave the Consolidated Bank the Threadneedle Street premises at present occupied. In 1867 the capital was raised to its present amount, 800,000. Even yet the misfortunes 01 the bank were not ended, as the report for the half-year ended June 3Oth, 1867, contained the following pregnant paragraph: The commitments of the bank to the Atlantic and Great Western Railway Company were fully stated to the shareholders at the meeting held on the 2ist June, 1866. Since that meeting the railway has sus- pended payment, and this event has now, for the first time, brought the bank under cash advance on the account. The total liabilities, present .and prospective, thus incurred, are 233,691, against which the directors hold as securities the obligations of the guarantors and of other parties, and their claim on the railway itself. Out of the profits for that half-year 10,000 were set aside to form a " special reserve fund." Similarly, at the close of the next five half-years, various amounts were voted to this account, until, on the 3oth June, 1869, it amounted to 39,000. On the 3Oth June, 1870, the directors had to report that " in the present balance-sheet they had written off from the amount of the two reserve funds the sum of 105,000, that being the net balance involved in the debt of the Atlantic and Great Western Railway Company. Against this debt the bank hold the Railway's 'Certificate of Debenture, 1868,' for 140,000." The same report stated that the Fenchurch Street premises had been disposed of at the figure at which they stood in the books. It may be interesting to our readers to learn that the purchasers were the London and South Western Bank. Matters then began to improve, the reserve fund amounting to 50,750 in 1870. Next year, in spite of the bank having " sustained 'an exceptional loss/' which, by the way, was met out of the current profits, a small amount was added to the surplus fund, which by 1874 a g am exceeded 100,000. Thenceforward grants were made when profits allowed, and invariably the 68 interest on the balance was added, with the result that now the Consolidated have a reserve of 263,310. Meanwhile, large amounts have been written off ''bank premises" account, this important item being recorded on the most recent balance-sheet as 190,000. There can be no question that there are few, if any, banks in the City possessing a more valuable site. The whole of the block belongs to the bank, and considerable space in the rear as well, and it all is freehold. When one considers the fabulous sums of money which changed hands over the sale of a much smaller freehold site (the old banking house of Prescott and Co.), in the same street, a short time ago, one can easily imagine that, were the Consolidated site in Thread- needle Street in the market, very considerably more tharr 190,000 would be realised. And then it must be remembered that, in addition, the Consolidated proprietors own premises at Charing Cross, London, and also have ten branches and premises in and about Manchester. There is no wonder that London bankers, handicapped for room, look with longing eyes at the fine, spacious building where the Consolidated clerks have done their work for so many years past. One cannot feel at all surprised at the many rumours of amalgamation with which the name of the Consolidated has so often been associated. The cupola at the end shows some fine specimens of carving well worthy of attention, and the T work in the lobby will be of great interest to all who know that it is old Roman.. When the present building was erected a Roman villa was dis- covered, and the paving being carefully taken up, was preserved and eventually used in the present splendid portico. Anyone who takes a glance in the bank will feel quite persuaded that in the building the proprietors have a handsome property, of great value, sufficiently commodious for the transaction of six times the present volume of business. The dividends paid were, for many years, at the rate of io> per cent. ; for the last two years the rate has been 9 per cent. 6g Below is a copy of the balance-sheet for the half-year ended 3Oth June, 1894: BALANCE-SHEET, SOTH JUNE, 1894. DR. s. d. To Capital paid-up: 200,000 shares 4 each 800,000 o o ,, Reserved surplus fund 262,000 o o .,, Amount due by the bank on current, deposit, and other accounts 3,157,427 n 5 .,, Acceptances ... ... ... ... ... ... 26,493 10 o . Rebate on bills not due ' 3^74 17 o .,, Balance of profit and loss account, 3ist December, 1893 5,&9 9 5 .,, Balance, being net profits for half-year ending 3oth June, 1894, after payment of all expenses, interest to customers, and making provision for bad and doubtful debts 36,533 r 3 42,102 10 8 4,291,898 9 i CR. s. d. By Investments in Consols and other Government stocks 305,968 15 6 ,, Cash in hand and at Bank of England ... 489,906 8 3 Money at call and short notice 382,000 o o .,, Bills discounted, loans, and other securities 2,897,529 15 4 .,, Liability of customers for acceptances, as per contra 26,493 10 o .,, Bank premises, London, Manchester, Salford, &c. ... 190,000 o o 4,291,898 9 i The first general managers of the bank were Mr. Joseph Rice and Mr. John Farrer, the latter of whom has since died ; but the former retired from the management and was elected a director. The first London manager was Mr. W. C. Boore, who was succeeded, in his turn, by Mr. James Tulloch, who retained the reins of office for more than twenty-one years. On his retirement Mr. William Lighten was appointed to the post, in which he is ably seconded by Mr. John Taylor, who has been sub-manager for upwards of eighteen years. CHAPTER XIII. THE LONDON AND PROVINCIAL THIS bank existed, in the first instance, as the Provincial Banking Corporation, Limited, and was duly incorporated, with an authorised capital of 1,000,000, in the early part of 1871. Since then its progress has been almost phenomenal. The first balance-sheet was issued in February, 1871, and showed a total due on current and deposit accounts of 482,000, while the following year this item exceeded half a million. Two years later a million was reached, and after another five and a-half years the total stood at 2,059,000. Three years later another million was added to the total, which was again increased to four millions in 1887. In 1889 the deposits exceeded five millions p in 1891 six millions ; and according to the last balance-sheet (3Oth June, 1894), they now stand at 6,756,788. This bank has done little or nothing to increase its figures- by way of amalgamation. In October, 1871, it took over the private firm of Fincham and Simpson, bankers of Diss and Eye, and in 1873 that of J. and \V. Walters, of Haverfordwest,, Pembroke Dock, and Narberth. The success of the bank started from its very commence- ment, when Mr. John Woodrow Cross, who had been in the service of the Provincial Banking Corporation, was made: General Manager. As its name indicates, this bank does a very extensive- provincial business, having at the present time no less than 101 branches, which have been opened year by year from its incorporation until the present time. The progress of the bank has been remarkably steady, so> that there is no cause for surprise that the capital of the bank has been repeatedly increased. Below we give in tabular form the figures at which the paid-up capital stood on various dates : 1871 101,000 1873 126,000 1874 150,000 1876 175,000 1877 200,000 1879 225,000 1880 250,000 1882 300,000 1886 350,000 1888 400,000 1891 450,000 1892 500,000 No new shares have been issued since 1892, and it is worthy of remark that on some of the occasions when new capital has been issued the shares have been allotted to customers, or pro- bable customers, of the bank at its various branches. It is needless to remark that many of these shares have been issued at a considerable premium, the whole of which has helped in no slight degree to pile up the magnificent reserve which the bank possesses, and which at the present time exceeds the paid-up capital by no less than 95,000. This is a feature which is well worthy of consideration. In glancing through the hundred rr so balance-sheets from various banks at present before us we find that the number of those whose reserve is equal to or larger than the paid-up capital is exceedingly small in fact, it is quite the exception. The London and Provincial started their reserve fund in 1871, when 1,500 was allotted to it out of the current profits. In 1873 it had reached 7,000 ; in 1876, 63,000 ; in 1877, 101,000 ; in 1882, 204,000 ; in 1886, 300,000 ; in 1888, 394,000 ; in 1890, 400,000 ; in 1891, 450,000 ; in 1892, 571,000 ; and at the present moment it stands at no less than 595,000. Nor is this all ; for the whole of this large amount is invested in Consols which have been written down as low as 90 ; so that if a realisation were necessary to-day the sale of the 661,111 2s. 3d. of Consols would realise not only 595,000, but also provide the bank with a substantial second reserve. Here we would remark that it would be a wise policy for all 72 banks in their balance-sheets to state the figures at which their various investments appear in their books. It is no uncommon thing for one to see a joint-stock company showing in its statement say, " Consols, 1,000,000 " ; but how is it possible to know whether these Consols were bought at 95 or 101 ? It is quite possible that in some instances until quite recently the market value of the securities representing the investments of various banks hi~> been considerably below the book value recorded in the balance-sheets. The heavy dividends paid by the London and Provincial have attracted an exceptional number of investors. We have looked into the histories of many leading banks, but there are few of them which can boast that their dividend has never tumbled. An unusually bad half-year has been the excuse probably a right one for decreasing the payments to the shareholders. In some cases the fall has been afterwards recovered, in many cases it has been followed by a further decline later on. We have before us at the present moment a complete file of the balance-sheets of the London and Provincial Bank ever since it was established, and, after carefully examining them, we find that in no single instance has the dividend ever been decreased. Thus in 1871 the shareholders received on their investments no less than 7^ per cent. : the following year this rate was increased to 9 per cent. ; in 1873 to 10 per cent. ; in 1875 to 12 i per cent., at which rate it remained for thirteen years, when another ij per cent, was added, bringing it up to 14. The next year the 14 was changed to 15, and for the half- year ended June 3Oth, 1892, the rate declared was 17 per cent., at which it has remained until the present time. In addition to piling up a reserve fund exceeding the capital by 95,000 and writing down the 1,250,000 Consols invest- ments to 90, the Provincial Bank have also adopted a very right line with regard to their bank premises. We have already alluded to the importance of every bank writing off periodically 73 ra certain sum from the nominal value of their premises. This item simply represents a locked-up investment. Several banks have decreased the nominal value of their bank premises to such an extent, that, as a point of fact, they have in them a substantial third reserve fund. In this particular the London and Provincial is not one whit behind the others ; as regularly, year by year, from 1871 to 1894, the bank has written off certain sums from this item. For the first year the amount used to reduce the value of the premises was 500. In 1872 it reached 1,000 ; in 1881, 2,500 ; and from 1888 to 1890, 4,000. The last three years the amount has been at the rate of 5,000 ; and in this way no less than 85,500 have been written off their premises, which at the present moment are recorded in their balance-sheet as 103,000. At the present time, when so much attention is being drawn to the importance of every bank having in working order in its establishment a pension fund for its staff, it will be interesting to note that in 1884 the following paragraph appeared in the report : The directors desire to commence making provision for the few pensions which have, in special cases, been granted to deserving officers on their retirement, and at the same time to form the nucleus of a general fund to be contributed to by the bank's officials in aid of future pensions or gratuities; and they recommend that the sum of 2, 500 be set aside out of the undivided profits to form the base of such fund, to be added to .from time to time as may be deemed expedient. CHAPTER XIV. THE NATIONAL IDENTIFIED with this bank is the name of the renowned Daniel O'Connell, a full-length painting of whom, by Sir David Wilkie^ hangs in the board-room of the head office in Old Broad Street. In the first instance the intention of the founders of this bank was to cater for the banking requirements of residents in Ireland,, and that every effort has been made and successfully too to- carry out that intention the long list of branches which have been opened in Irish towns and villages goes to prove. To-day there are nearly one hundred branches and sub-branches of this- bank scattered here and there from one end of Ireland to the other*. Originally, the National Bank of Ireland, as it was then called, worked on lines totally different from those adopted by any of the banks whose histories we have thus far given. In this- way : Each branch opened was treated in every respect as though it were a separate bank, always, of course, with the proviso that, in case of need, the parent office might be called upon to lend a helping hand. It was intended in the first instance to divide the profits with the local body of constituents- separately interested in each branch. Business was first com- menced at Carrick-on-Suir on January 28th, 1835, and steadily progressed. Fresh branches were constantly being opened, and the directors, with Daniel O'Connell as chairman, had every cause for congratulation. The following extracts from the first report, dated May 25th,. 1836, are very interesting. After a list of twenty offices opened up to that date has been given, the report continues : Severn; other towns are under consideration, and branches will be opened in them in the present year. The directors are now engaged upon the formation of a Metropolitan bank in Dublin, as a branch of" the National Bank of Ireland, with very extensive capital and objects,. 75 including a district hitherto neglected in banking accommodation, by reason of the privileges of the Bank of Ireland charter, and containing a population of 1,500,000 inhabitants; but the plan of the bank and its- connection with the National Bank of Ireland will be such as not to- interfere with any of those privileges, also it will be prepared to take advantage of any change made in them. The good work up to that time effected and contemplated is thus described : The directors cannot close this report without adverting to the good effects, in so short a time, already visible in Ireland, arising in some degree from the extension of their operations, combined with the high rate of agricultural prices in the past and present years, as compared with the former ones, the one enabling the agriculturist to dispose of his-. produce to advantage, and the other to discharge his obligations with punctuality. It is hoped that by due caution and the prudent develop- ment of the great resources of that country, many social evils will be mitigated, arid the National Bank of Ireland will be fully compensated for the part it has taken in promoting this permanent object, by the strong hold it has been the study of the directors to obtain lor it in the affections of the great body of the people. The London office was opened in 1854, when the name was altered to the present title. In 1865 new shares were issued,,., thereby increasing the paid-up capital from 600,000 to 1,200,000. By this issue a profit, by way of premium, was realised of no less than half a million pounds sterling, which substantial sum was at once added to the reserve fund. Sub- sequently, the directors decided to issue as a bonus the remaining shares ; and, it is needless to say, this proposal was hailed with the liveliest satisfaction, the necessary sum paid up per share namely, 300,000 being withdrawn from the reserve fund. This made the paid-up capital 1,500,000, at which amount it has ever since remained. The reserve fund, added to from the profits, and heavily augmented, as already stated, has on more than one occasion stood the bank in good stead. Thus, for instance, 300,000 was divided among the stockholders by way of new shares in 1865. In common with every bank in the United Kingdom,, the National keenly felt the strain of panic-stricken depositors-. 7 6 in 1866. The widespread disaster of that year culminating as it did on the ever-memorable Black Friday, the crashing of .banks all round, the suspensions of financial companies and -syndicates, the ruin of all commercial negotiations and concerns not absolutely sound at bottom, the terrible shock to credit, the scepticism engendered by the collapse of institutions hitherto considered perfectly strong these, one and all, taxed the resources of the bank to the utmost. The storm was weathered, but the bank for many a long day felt its effects. Whether the -directors, intoxicated by long-continued prosperity, deviated from the hard-and-fast chalk line which indicates sound business or not we cannot say. This much is certain, the bank sus- tained losses amounting in the aggregate to upwards of half a million pounds, which amount was at once written off the reserve fund a bold but exceedingly wise course to pursue. When this loss'was made the then chairman (Sir Joseph Neale M'Kenna) and the whole board resigned, and new blood was introduced, with the result that the bank soon recovered its lost ground, once again started on the road of prosperity, and ..-steadily built up a solid reserve which, according to the last .balance-sheet, now stands at 282,694. The first balance-sheet issued to the public bore date Decem- ber 31, 1835, an d was as follows: LIABILITIES. Capital .... ... ... 374,140 12 ii Circulation 521,745 Deposits 256,638 12 i Proprietors undivided fund 14,520 15 n 1,167,045 o ii ASSETS. Investments 155,740 12 6 Securities 826,638 i 6 Specie and cash at bankers 166,471 14 i London preliminary expenses, to be liquidated in four years , ... 8,547 3 & Branch ditto ditto, in five years 9*647 9 2 1,167,045 o n 77 Compare those figures with the present : 1835. ^ 1894. Paid-up capital 374,140 1,500,000 Rest or reserve fund 14,520 282,694 Deposits 256,638 9,576,088 Acceptances nil. 138,536 Notes in circulation 521,745 1,102,082 Cash in hand and at call 166,471 3,090,009 Investments *55,74O 1,595,49 Bills discounted and other advances 826,638 7,564,419 In 1847 the National Bank took over the London ancF Dublin Bank, and we believe this to be the only absorption or amalgamation the National Bank has ever effected. As usual with other banks, the National had a very hard fight before it obtained admission into the sacred precincts of London's Temple of Mammon the Bankers' Clearing House; but, once in (in 1859) the effect was immediately felt, and the directors recognised that the prize was richly worth .the struggle. In one particular the National stands almost alone amongst London clearing banks in that it still retains its note issue. It is true that the privilege is not exercised in London, but it evidently must be used very greatly in Ireland, since the notes in circulation on June 30 last (1894) exceeded in amount 1,102,000. We have before us at the present time the analysis of the figures of some 150 private and joint-stock banks in England, Scotland, and Ireland, and from it we notice that the only of these banks whose note issue exceeds the National is the Bank of Ireland, whose circulation on the same date was 2,306,000. Three or four of the Scotch banks have circulations varying from three-quarters of a million to a million pounds, but no English private or joint-stock bank can compare in this particular with the National. With regard to dividends, the present rate is 9 per cent., and for some years past it has varied between 9 and 10, although at one time a 12 per cent, dividend was no uncommon thing. The National is unquestionably a power in the City, and has as- 7 8 fine a London clientele as any bank in the House. It is only necessary to go into the Clearing House on a Stock Exchange settling day to see the vast amount of business carried through i>y the National. With double the ordinary staff, with the men working as by steam power, with as smart men as can be found in any banking establishment in the City, it is still frequently found to be almost an impossibility to carry through the work in the allotted time. The number of cheques flung in bundles on the desks of the poor 'clearers' is simply enormous, and, work as they will, until considerably past the time the clock has struck the closing hour, the last draft is not entered. Then comes the casting; then the agreeing and balancing. We do not think there are many banks with a finer stock- brokers' business, the most probable competitors being the London and Westminster and Parr's. The chief officer is the -Secretary, Mr. T. W. Enright. CHAPTER XV. THE UNION BANK OF LONDON. THIS important bank is one of the oldest joint-stock banks in London, having been founded so far back as February 4th, 1839. The original capital was 3,000,000, divided into 60,000 rshares of 50 each, 42,290 shares being issued, of which 5 per share was paid, and on which a call of 5 per share was made in 1841. The remainder were reserve shares, and were issued at a premium of 5 per share in 1854. In 1860 a portion of the reserved fund was capitalised, 2 per share being credited to the amount paid upon each share. In this way the paid-up capital was increased to 720,000. This year was a red-letter one with the bank, since in it occurred the great " Pullinger " frauds. Pullinger, the then chief cashier of the bank, embezzled something like a quarter of a million of money. The moment the directors of the bank heard of their loss they at once recognised the importance and advisability of adopting no half measures : they accordingly informed their shareholders by a circular, in which was stated, not only the magnitude of the loss, but also the means they proposed to meet it. This energetic line of action redounded to the credit of the bank, and probably contributed in no slight degree to its subsequent prosperity. The manner in which the loss was met was as follows : The amount credited out of profits to capital account, as stated above, was withdrawn ... ... ... 120,000 Written off reserve fund 100,000 Taken from current profits, say 30,000 Say 250,000 8o This was in 1860, and at once the Union began to rapidly recover from the shock. In fac% two years later, out of surplus- profits, the 120,000 was recredited to capital account. In January, 1864, a further 60,000, or i per share, was with- drawn from profits and credited to capital account ; in July of" the same year 120,000, or 2 per share, was placed to the credit of capital account. Thus each share was at that time credited with 15 paid. During 1864 the capital was increased to 4,000,000 nominal and 1,200,000 paid up, by the issue of 20,000 new shares, at a premium of 15 per share. In 1872 a. further 10,000 new shares were issued, also at a premium of 15, the amount received on account of premium being credited! to reserve fund. In 1874, out of surplus profits, the directors declared a bonus of los. per share by again crediting that amount as paid-up on each share on account of capital. When the bank was registered as a limited company in 1882, the nominal capital was increased to 11,000,000, and 20,000 new shares were issued at a premium of 12 los. per share. The whole of the share capital was doubled, 50 per share being added to the nominal or face value. This brought up each share to the nominal value of 100 (with 15 los. paid), and 50 of this was fixed as reserved liability, and therefore only to be demanded in the event of liquidation. The first Governor of the Union Bank was Sir Peter Laurie,, who died in 1861. He was succeeded by Mr. Peter Northall Laurie, who, retiring in 1876, w r as, in his turn, succeeded by Mr. R. C. Ferguson, who retained office till his death in 1884.. Mr. T. R. Grant being next elected, filled the important post until his death in 1893, when he was followed by the Right Honourable C. T. Ritchie, who is Governor at the present time. The reserve fund, always an important item on a bank balance-sheet, was started out of the very first profits made by the bank, and has ever since steadily progressed with the one exception already referred to until now it stands at the: substantial sum of 850,000. 8i The first head office of the bank was at 8, Moorgate Street, where it remained till 1845, when premises were taken at 2, Princes Street part of the present site occupied by the bank. In 1885 the premises w r ere rebuilt, the sites of the Azienda Insurance Company on the one side and that of the renowned "European" on the other having been procured. This gave the Union one of the finest sites in the City, and the present splendid building proves that the directors were well alive to the advantage such a site afforded. The first branch opened was in Regent Street, in 1840. In 1841 an office was taken^and a branch opened at Charing Cross. In 1855 the Union opened what was then called their "Temple Bar" branch, and in 1859 took over the business of Messrs. Dixon and Co., private bankers in that locality. Premises having been erected in Chancery Lane, the business has since been transferred there, and the name of the branch altered accordingly. In 1870 a branch was opened in Holborn Circus, and the Bayswater branch was started in 1882. Four years later the bank started a branch in Aldgate ; but this being subsequently moved into Fenchurch Street, is now known as Fenchurch Street branch. The same year the Union went into Tottenham Court Road, the Central Bank of London and the London and Westminster curiously enough selecting the same district at that time for fresh banking enterprise. In 1888 Chelsea was under consideration, with the result that the Sloane Street branch was opened in 1888. Thus far, it will be noted, the Union had remained a strictly London bank ; but in 1891 the old business of Chasemore and Robinson, private bankers of Croydon, having been procured, a branch bank was opened in that important town. Quite recently the business has been removed to new premises which have been erected near the Croydon Town Hall. The last branch opened by the Union Bank was in 1892, at Southwark. The first General Manager of the bank was Mr. W. W. 82 Scrimgeour, who retained that office from 1839 to 1865, when he was succeeded by Mr. J. A. Barton. This gentleman, retiring in 1872, was followed by Mr. G. H. Milford. In 1885 Mr. G. A. Tucker was appointed Town Manager and Mr. R. Slater, Country and Foreign Manager. Last year Mr. Tucker was made Manager, while Mr. R. H. Nunn was appointed as Deputy-Manager on Mr. Slater's retirement. The first balance-sheet issued by the bank was for the year ended June 30th, 1840, the total of the current and deposit accounts then standing at 377,000. To form a fair idea of the enormous progress made by the bank, one has only to remember that the corresponding figures for last half-year (June30th, 1894) were 13,136,000, and that, in order to properly complete the comparison, we must add to this enormous total a further sum of 2,248,000 for acceptances, thus making in all 15,384,000, as against 377,000 of 1840. The following are the principal items of the last half-yearly balance-sheet : Paid-up capital i7O5,ooo Reserve fund 850,000 Current and deposit accounts 13,136,000 Acceptances, &c 2,248,000 Cash in hand and at Bank of England 2,247,000 Cash at call and short notice 3,029,000 Investments 2,897,000 Bills discounted ... 3,876,000 Loans 3,346,000 Bank premises 501,000 It is needless to add that large sums have constantly been written off the book value of bank premises. CHAPTER XVI, METROPOLITAN. THE Metropolitan Bank (of England and Wales), Limited is one of the last of the big Joint Stock Banks which has come 4o London. It was incorporated as the Birmingham Banking Company, Limited, on the ist August, 1866, with its head office in Bennett's Hill, Birmingham. The authorised capital was one rand a half millions of pounds, divided into 30,000 shares of .5 each. Between August 1866 and June 1867 there were issued 16,684 of these shares. From time to time the capital has been increased : thus, in 1872 the authorised capital stood .-at two millions ; in 1880 at 3,500,000 ; in 1889, five millions, .-and in 1892 at 7,500,000. The paid up capital now is 470,000. It will be noticed that the dates of these large augmentations -correspond with those of big amalgamations, the Birmingham .Banking Co., making a practice of, in a great measure, clearing off their purchases of other banks by paying in shares mainly, .in cash partly. In 1880 the Stourbridge and Kidderminster Banking Company -was taken over, and nine years later the Staffordshire Joint Stock Bank, Limited. In this year (1889) the Birmingham Banking ^Company obtained their entre into London, by the absorption of the Royal Exchange Bank, Limited a little bank whose -career had been very chequered, but which had a seat in the Bankers' Clearing house. Then it was that the bank changed 4 its name to the Metropolitan and Birmingham Bank, Limited, and before the year was out, purchased the private bank of Cooper, Purton and Company, of Bridgnorth. The next important step was taken in 1892, when the banking world was startled by the announcement, that the " Metropolitan " had taken over the South Wales Union Bank, Limited. This was a bold stroke deftly carried out, and gave the Metropolitan a splendid connection in South Wales. The new venture necessitated another change of title, a new one was accordingly- registered in due course "The Metropolitan, Birmingham! and South Wales Bank, Limited." The next year the business; of the National Bank of Wales was purchased, and the name- changed to the " Metropolitan Bank (of England and Wales) r Limited. This last purchase was carried through quite unexpectedly, so far as the outside world was concerned. It came as a surprise, as it was an open secret that the National had been for some time negotiating with the London and Midland,, and, in fact, had transferred their London agency to that bank- A great deal of acrimonious correspondence appeared in the- South Wales Daily News, over the terms of purchase arranged with the Metropolitan, but this gradually dwindled down and down. The Metropolitan unquestionably made a good deal over the purchase, as they procured openings hitherto closed to them. The first branch was opened at Walsall in 1874, under the management of Mr. J. J. Shedden, the gentleman who still retains that important position. Ever since, branch establish- ments have been opened up most judiciously wherever chances for satisfactory business appeared, with the result that to-day the Metropolitan has no less than 119 branches and agencies. The year following the opening of the bank, the guarantee or reserve fund was started, and it must be highly gratifying to the officials to be able to state that on no occasion have there been any losses sufficiently serious to necessitate drawing upon this valuable source of strength. Steadily and surely the fund has been augmented by portions of the current profits and by premiums on share issue, until now it stands on equal footing with the paid up capital each being represented by 470,000. The bank from the very outset bid fair to be a success, since at the end of the rirst year the deposit and current accounts amounted to nearly half a million of pounds. Four years later the aggregate of these balances had doubled. In 1880 they were represented by 2,296,308, in 1889 by 4,016,154, in 1893 ^y 5>&57>95&> an d at the close of the last half year by ^6,076,251. The first manager was Mr. Thomas F. 9haw, who retired in 1876, and was succeeded by Mr. P. W. Walker. At the end of the same year Mr. Walker resigned, when Mr. James Leigh was appointed as general manager. Our readers will have already noticed that it was subsequent to that date, that all the most important steps taken by the bank occurred. All the amalga- mations and the changes in title were carried through under Mr. Leigh. He was known all over the country as one of the most astute of bank managers, one on an equal pedestal with Mr. John Dun, Mr. Howard Lloyd, and Mr. E. Hopkinson Holden; one who could lose himself and his own interests, in the affairs of the bank with which he was connected ; as smart a man at driving a bargain as any bank manager in Scotland, as able and go-ahead as any in England ; he was a man whose indomitable energy and perseverance overcame all obstacles and successfully combatted every difficulty. To him the Metropolitan owes by far the greatest measure of its success. From a small bank Mr. Leigh raised it to the proud position of "one of the large banks of Londpn." No wonder then that when he died last September his loss was regretted by his friends and rivals alike. 86 The last quarterly balance sheet issued by the bank, dated 27th September, 1894, was as folfows : LIABILITIES. s. d. Due by the Bank on Current, Deposit, and other Accounts ' 5,974,368 19 2 Seven Day and other drafts 20,738 4 2 6,004,107 3 4. Proprietors' Funds Paid up Capital 470,000 o o Guarantee Fund 470,000 o o Bank Premises Redemption Fund 24,123 3 o Balance of Profits carried Forward ... ... ... 2,623 15 6 966,746 1 8 6" 6,970,854 i 10. ASSETS. s. d. Cash in hand, and at the Bank of England 743,769 17 n Do. at Call and at Notice 250,552 9 9- 994,322 7 a Investments, viz British Government Securities 386,870 ii 4 Colonial Government Securities, Corporation Stock, and Deben- ture Bonds 204,080 3 8 590,950 15 o Bills of Exchange 1,035,293 7 3 2,620,566 9 ii Due to the Bank on Current and other Accounts, including advances on account of the National Bank of Wales Limited, secured by their Assets 3,965,723 i 4. Goodwill Account National Bank of Wales 115,000 o o Less Amount written off ... 12,000 o o 103,000 o o Bank Premises and Furniture at London, Birmingham, and 115 Branches and Sub-Branches 281,564 10 *_ 7 6,970,854 i 10. OF THE UNIVERSITY or THE METROPOLITAN BANK (OF ENGLAND AND WALES), LIMITED. PROPRIETORS' FUNDS: PAID-UP CAPITAL 470,000 GUARANTEE FUND 470,OOO BANK PREMISES REDEMPTION FUND.. 24,123 BALANCE OF PROFITS carried forward 2,624 966.747 Directors. SIB THOMAS LEA, BART, M.P., Chairman. J. SATCHELL HOPKINS, Esq., Deputy-Chairman. JAMBS TERTIUS COLLINS, Esq. EGBERT FOBBEST, Esq. SIB JOHN J. JENKINS, KT. ABBAM CRESWICKE KAWLINSON, Esq. LOBD EBNEST J SEYMOUR. WALTER E. WARDEN, Esq. CHAS. H. WILLIAMS, Esq. MOBGAN B. WILLIAMS, Esq. General Mnager-F. w. NASH. Assistant General Manager F. j. HUGHES. Secretary J AS. SMITH WOOD. London Manager-F. NALDER. London Sub-M anager-T. THOMSON. HEAD OFFICE: 60, Gracechurch Street, LONDON, E.C. COUNTRY OFFICE: Bennett's Hill, BIRMINGHAM. BRANCHES: Ab^rdare Alcester Banbuty Bangor Barmouth Barry Dock Bath Bethesda Bilston Birmingham Bennett's Hill Markets Blaenau Festiniog Blaenavon Bloxwich Bridgend Bridgnorth Brierley Hill Bristol Abergwynfi Acock' s Green Amlwch Blaengarw Briton Ferry Brownhilla Brynsiencyn Brynmawr Burry Port Cradley Heath Criccieth Bampton (Oxon) Brailes The Shares of 50 each are paid up to the extent of 5 onlp, leaving a reserve of 45 per share, or 4,230,000 in the aggregate, available to meet the liabilities of the Company, in addition to the Guarantee Fund of "5470,000. By the Articles of Association 25 per share in other words, one-half of the subscribed capital of 4,700,000 must always be left uncalled, for the security of depositors. Current Accounts" are opened on favourable terms. The Bank receives sums of 10 and upwards on deposit, repayable at call or upon fourteen days' notice, allowing liberal nttes of in'erest. Customers can arrange to receive money at, or pay money to, any of the Bank's Branches, or have money paid to any of the Bank's Corresi ondsuts and advised for their credit. Strong Booms are provided, free of charge, for the custody of Deeds and other property lodged by the customers of the Bank. Bromsgrove Llandudno Shipston-on-Stour Cadoxton Llandysiiil Stourbridge Cardiff Cardiff Docks Llanelly Llangefni Stourport Stratford-on-Avon Cardigan Llanrwst Swansea Carnarvon Chepstow Merthyr Tydfll Moreton-in-Marsh High Street Wind Street Chipping Norton Colwyn Bay Much Wenlock Neath Tredegar Walsall Conway Nevin The Bridge Cowbridge Newcastle Einlyn Park Street Darlaston Newport (Mon.) Warwick Dudley Oxford Wednesbury Haverfordwest Pentre West Bromwich Hednesford Pontypridd Willenhall Henley-in-Arden Portmadoc Witney Kidderminster Pwllheli Wolrerhampton Leamington Beading Worcester Llanberis Bedditch SUB-BRANCHES: Dowlais Mountain Ash Saltley Ebbw Vale Newborousrh Studley Ebenezer Newport (Pern.) Talysarn Ferndale Festiniog Penrhiwceiber Penrhyn-Deudraeth SS 1 " 17 Gilfach Goch Penygroes Treharris Glyn Neath Pontycwmmer Treherbert Lye Porth Treorky Maestpg Porthcawl Tynewydd Morristou Port Talbot Ystalyfera AGENCIES: Cannock Kineton Charlbury Shipton-under-Wychwood SOIMIIE] RELATING TO THE COMPILED FROM THE BEST AUTHORITIES BY W. HOWARTH. (imntotch : EDWARD G. BERRVMAN, 84, Blackheath Road, S.E. Paper Covers, 1/- Cloth, 2/-. PRESS OPINIONS. "An extremely interesting book." Greenwich au,t ,/t ord Chronicle. "The author has evidently been at considerable pains in getting together the mass of reliable information which the work contains, and we congratulate him upon the successful issue of his labors." Boro of Greenwich Observer. " The historical incidents and associations in which the town and neighbourhood are so rich, are concisely and accurately set forth." West Kent Courier. " A large body of persons will be greatly indebted to the author of this capital little work, for the facts which many of them will learn for the first time concerning the Royal Borough." Court Circular. "A neat little volume and an interesting one to boot." Phonetic Journal. PRIVATE OPINIONS. BARON H. DE WORMS, M.P., F.R.S., &c. " An interesting account of the Borough." T. W. BOORD, Esq., M.P. " Although brief, it contains many particulars of the highest interest to all who take pleasure in learning the history of the locality in which their homes are situated." INVALUABLE TO ALL BANK DIRECTORS AND MANAGERS. BANK BALANCE SHEETS. (30th JUNE, 1894) (Tabulated in Handy Form) BV WILLIAM HOWARTH, F.R. HIST. S., F.S.S. I " The Table gives in handy form the figures of nearly 150 private and joint-stock banks. To bank directors and officials the Table must be of exceedingly great service. Bank shareholders, too, will find the analysis of both interest and utility." Bullionist. " This sheet will be invaluable to bank directors and managers, and we think no share- holder should miss seeing it." Money Market Review. " The figures are arranged in tables, so that at a single glance one can see how any one bank compares with any other. To those connected with banking, the table will be of great Utility." Railway News. "This is an admirable publication, and represents at a glance the position in every particular of all the banks in the United Kingdom. A chart devoted to assurance companies, and prepared with equal care and accuracy, would be of great service to the insurance world." The County Gentleman. "A most useful table . . . Invaluable for the purposes of reference." Glasgow Daily Mail: " A very handy and convenient sheet showing the financial position of all the larger and more important banks of the country up to the 30th June last. . . . The list appears to be exceedingly complete." South Wales Daily News. TO BC OBTAINED or THE COMPILER W. HOWARTH, F.R. Hist. S., F.S.S., 10, Clifford's Inn London, B.C. FOR HISTORY OF onbon fl ribate iiank0, READ IS 'SOMME OLDE CURIOSITIES, BY A KNYGHTE OFFE Y E QUILLE. . LONDON AND MIDLAND 5. LLOYDS d. WILLIAMS DEACON AND MAN- CHESTER AND SALFOBD /. LONDON JOINT STOCK 3. CAPITAL AND COUNTIES 11. CITY 12. CONSOLIDATED 13. LONDON AND PROVINCIAL 14. NATIONAL 15. UNION OF LONDON 16. METROPOLITAN OF ENGLAND- AND WALES fn every case the Histories have been checked by leading officials in the themselves, so that the information recordel practically bears upon it the- official seal of accuracy, and, consequently, may be absolutely relied upon. READY SKORTi-Y- VOL. II. PROVINCIAL JOINT STOCK BANKS. To be obtained of Mr. W, HOWARTH, 10, Clifford's Inn, London. PRICE, TWO SHILLINGS. & BY WILLIAM HOWARTH, F.R. HIST. S. (Author of " History of Greenwich" " Our Clearing System and Clearing Houses," &>c., &<:.) DEDICATED (by permission) TO SIR SPENCER MARYON WILSON, BART., &c. PAPER COVERS, Is.; CLOTH, GILT LETTERED, 2s. 6d. LONDON: EFFINGHAM WILSON, 7, Royal Exchange. " A very interesting little work. The author's mastery of the subject enables him to deal -with it in the happiest manner." Da 2y Chronicle. " An infinite amount of information in but small compass." City Press. " Some interesting particulars of the history and present condition of the town of Greenwich." Dietetic Reformer. " The author has found abundance of material, and has brought a high order of intelligence to bear on the manipulation thereof, for his work bears testimony of careful research, skilful com- pilation, and considerable literary power." South Eastern He>-ald. "Mr. Howarth has done his work well, and from the first page to the last the reader will find pleasant jottings on places, men, and things. Several excellent illustrations are given." Fireside News. "A handy little volume." Greenwich Observer. " Mr. Howarth has now given us another treat in his little volume penned in so pleasant and readable a style." The Rock. Her Most Gracious Majesty the Queen, and His Royal Highness the Prince of Wales, have been graciously pleased to accept Copies. A Weekly Record of the movements of Capital. (Established 1885.) PUBLISHED EVERY SATURDAY. PRICE: ONE: F>ENNY. Annual Subscription, 6s. 6d., Post Free. The object of THE CAPITALIST is to deal with financial matters in such a way as to assist the judgment of investors and to maintain sound administration of Joint Stock business. As a medium for Company Advertisements THE CAPITALIST affords an opportunity of bringing these to the notice of the classes most interested in finding promising channels of investment. OFFICES: 26, NICHOLAS LANE, LONDON, E.G. Telegraphic Address : "CAPITALIST, LONDON." Telephone : No. 1323. SSleslminster LXIMIITIEID. (Established March, 1834.) Subscribed Capital, 14,000,000. Paid-up Capital, 2,800,000. Rest or Surplus Fund, 1,655,620 4s. 9d. DIRECTORS. RICHARD JAMES ASHTON, Esq. OTTO AUGUST BENECKE, Esq. JOHN NUTT BULLEN, Esq. Sir ALFRED DENT, K.C.M.G. BONAMY DOBREE, Esq. AUGUSTUS WM. GADESDEN, Esq. HENRY GOSCHEN, Esq. FERDINAND M. HUTH, Esq. CHAS. EDWARD JOHNSTON, Esq. WAI/TER LEAF, Esq. HENRY JOHN NORMAN, Esq. HOWARD POTTER, Esq. Right Hon. Sir HERCULES ROBINSON,. Bart., G.C.M.G. JOHN SANDERSON, Esq. HENRY PARKMAN STURGIS, Esq. MANAGERS. CITY OFFICE 41, Lothbury W. Astle. Country Department 41, Lothbury H. F. Billinghurst. WEST END OFFICE 1, St. James's Square G. R. Hemmerde. BAYSWATER BRANCH 133, Westbourne Grove, W. A. H. Daws. BLOOMSBURY BRANCH 214, High Holborn H. E. Keene. EASTERN BRANCH 130, High Street, Whitechapel C. Fisher. HAMPSTEAD BRANCH 106, Finchley Road, N. W. C. Hatfield. HOLBORN CIRCUS BRANCH 8, Holborn Circus, E.G. H. R. S. Massey. ISLINGTON BRANCH 269 & 270, Upper Street, N. I. G. Lindon. KENSINGTON BRANCH 94 & 96, High Street, W. E. N. Dennant. LAMBETH BRANCH 91, Westminster Bridge Road J. Bennett. MARYLEBONE BRANCH 1, Stratford Place, Oxford Street C. D. Millttt. OXFORD STREET BRANCH 112 & 114, Oxford Street W. D. Nichols. SOUTH KENSINGTON BRANCH 1, Brompton Square P. N. Herbert. SOUTHWARK BRANCH 6, Borough High Street J. T. Wallis. TEMPLE BAR BRANCH 217, Strand B. R. Ketchlee. [A. P. Plante,. TOTTENHAM COURT ROAD BRANCH. 44 & 46, Hampstead Road, N.W. VICTORIA STREET BRANCH 62, Victoria Street, S.W. W. H. Alexander. Secretary A. M. HAWTHORN. Inspector of Branches H. L. RUTTER. The present Subscribed Capital of the Bank is 14,000,000, in 140,000 Shares of 100 each,. held by upwards of 8,400 Shareholders. The sum of 20 has been paid on each Share, thus making the paid-up Capital 2,800,000. The Rest or Surplus Fund is 1,655,620 4s. 9d. Current Accounts are opened with, and the usual Banking facilities granted to, persons properly introduced. The Bank takes the Agency of private Country Banks, Joint Stock Banks, and other Public Companies in England or the Colonies ; attends to the Purchase and Sale of British and Foreign Stocks ; collects Dividends on Government Funds, Railway Stock, Foreign and other Securities, payable in England or abroad ; acts as Agents for the receipt of Military and other Pay and Allowances ; and generally transacts every description of Banking business. Sums of 10 and upwards may be deposited, repayable at call ; sums of 500 and upwards y be deposited upon seven days' notice of withdrawal. Interest is allowed thereon, according the class of Deposit, but subject to alteration by public advertisement in the Times newspaper. Cheques cannot be drawn against Deposit Accounts, nor will Depositors be entitled to ary of the usual Banking facilities of a Current Account. A Receipt is given for each Deposit, which is not transferable, and must be surrendered on repayment of the amount, according to the conditions. printed thereon. Circular Notes of 10, 25, and 50 are issued for the use of Travellers, payable in the principal towns of Europe, Asia, Africa, and North and South America. They are issued free of expense, and are payable by the Agents abroad, at the exchange of the day, without any deduc- tion whatever for commission. Letters of Credit are also granted, payable at all the chief towns- and cities abroad. They may be obtained at the Bank in Lothbury, or any of its branches. 'Ihe- Ojfficers of the Bank are not all <; II % tl : Colmore Row New Street Deritend Gt. Hampton Street High Street Aston Road Edgbaston Jamaica Row Temple Row Bristol Street Gooch Street Stratford Road Aberdare Dowlais Maidstone Shifnal Abergavenny Droitwich Malvern ; Shipston-on-Stour Atherstone Dudley Margate Shrewsbury Barry Docks East Grinstead Merthyr Tydfil Srnethwick Bath Ellesmere * Monmouth Solihull Brecon Enfield Moseley Stafford Bridguorth Evesham Newcastle (Staff.) Staple Hill (nr Bristol) Bristol Folkestone Newnham Stratford on-A von Do. Stokes Croft Gloucester Newoort (Mon.) Stroud Do. St. Philips Great Bridge ! Newport (Salop) Sutton Coldfield Do. Temple Gate Halesowen Northampton Swansea Broadstairs Handsworth Nottingham Tarn worth Bromsgrove Hanley Do. Alfreton Rd. Tenbury Broseley Harborne Oldbury Tonbridge Burton-on-Trent Hastings Oswestry Torquay annock Haverfordwest Paismton Tunbridge Wells Cardiff Hereford Pontypool Wai sail Do. Bute Docks Ironbridge Pontypridd Warwick Cardigan Kidderminster 1 Presteigne Wedne^bury Carmarthen Kingsbridge Redditch Wellington (Salop) Caterham Valley Kingswood (nr. Bristol) Ross Welshpool Cheltenham Leamington Rugby Cinderford Leominster Rugeley West Bromwich Westgate-on-Sea Clifton (near Bristol) Lichfield Rye Whitchurch (Salop) Coventry Llanelly St. Georges (nr. Bristol) Willenhall Darlaston Longton St. Leonards-on-Sea Wolverhampton Dartmouth Ludlow (Grand Parade) Worcester SUB.BRANCHES AM> AOENCIES. Albrighton Eccleshall Madeley Pershore Alvechurch Edenbridge Malvern Link Forth Astwood Bank Ferndale Malvern Wells Repton Bargoed Fishguard Montpellier, St. Davids Bexhill Godstone Cheltenham St. John's, Worc^. tar Bidford Hednesford Mountain Ash St. Leonards-on-Sta Birchington-on-Sea Hirwain Newbridge (Marina) Blackwood Horley Newcastle Emlyn Salcombe Bloornsbury, Kenilworth Newport (Pern.) Selly Oak Birmingham Kidwelly New Romney Soutbam Bloxwich Kineton Oakengates Southborough Brewood King's Norton Oited Tenterden Caerphilly Cleobury-Mortimer ColeshiU Ladywood, 'Birmingham Llandyssxil Panti'es, Tunbridge Wells Pembrey (Burry Port) Tonypantfy Treharris Wenlock Craven Arms Llantrissant Penkridge Weoblev Dawley Lydd Pentre Whitlacd THE EOBIN SOCIETY, (TJ 3ST.S B O T -A. K; I -A. 3ST) Offices: 390, NEW CROSS EOAD, LONDON, S.E. $J at von* : THEIR KOYAL HIGHNESSES THE DUKE AND DUCHESS OF YORK. HER HIGHNESS THE PRINCESS EDWARD OF SAXE-WEIJIAR. LADY GLYN. VISCOUNTESS PARKER. LORD KOTHSCHILD. THE EIGHT HON. THE EARL OF DARTMOUTH. SIR SPENCER MARYON-WILSON, BART. C. J. DARLING, ESQ., Q.C., M.P. J. MCLAREN SMITH, ESQ., M.A., F.S.S., &c. W. HOWARTH, F.K. Hist., F.S.S. H. DAWSON. 1. To give Christmas Treats to Poor Children. 2. To send Poor Children into the Country, or to the Sea-side, during the summer months. The First Eobin Breakfast was given in Deptford on Christmas Day, 1883, to 700' Poor Children. Year by year the number of invitations has been increased. Last season we arranged good, plain, substantial Breakfasts and Dinners for 25|OOO i n the following centres : The People's Palace, Mile St. Luke's Shoreditch Gray's Inn Eoad End, E. Lambeth South wark Drury Lane Woolwich Greenwich Peckham "The Guardian Angels," " S.S. Mary & Michael,"' Deptford Mile End Commercial Eoad Shoreditch, St. Giles' Hackney Hoxton Clerkenwell Poplar Marylebone Blackfriars Chelsea Limehouse Old Ford Stepney DISCOMBE ANERLEY ]', ALII AM MARKING BARNES I! \ I TKRSEA BAITER SEA PARK BKRMONDSEY BLOOMS BURY BOW BR1XTON HILL BRIXTON, NORTH BKIXI'ON, SOUTH BROXDESBURY CAMBERWELL CAM DEN TOWN CAT FORD CHARLTON CHELSEA CUE I SEA (KING'S ROAD) C HIS WICK CLAPHAM CLAPHAM JUNCTION CLAPTON C ROY DON DULW1CH BALING E A LING DKAN EARL'S COURT AND KENSINGTON FINCH LEV, CHURCH END COUNTRY BRANCHES BRIGHTON I HONITON BRISTOL KIXG&ION-ON-THAMK- FINCHLEY, EAST FINSBURY FINSBURY PARK FLEET STREET FOREST GATE FOREST HILL HACKNEY HAMMERSMITH HAMPSTEAD HANWELL HARLESDEN HARROW ROAD HEN DON HIGHGATE HOLLOWAY HORNSEY KENTISH TOWN KILBURN LAVENDER HILL LEVTON MILE END MORTLAKE NF.W BARNET NEW CROSS NEW CROSS GATE NOTTING HILL OXFORD STREET PECKHAM P1MLICO POPLAR PUTN EY 27, REGENT ST., S.W. ST. JOHN'S WOOD ST. MARYLEBONE SHEPHERD'S BU^H SHOREDIFCH SOUTH HAMPSTEAD SOUTH NORWOOD STEPNEY STOCK WELL STREATHAM STREATHAM COMMON? STROlTH GREEN SUTTON SYDENHAM TOOTING TULSE HILL UPPER NORWOOD UPPER PARK, E. VAUXHALL WALHAM GREEN WALLINGTON WALTHAMSIOW WALWORTH WANDS WORTH WANSTEAD WEST BROMPTON WEST KENSINGTON WEST NORWOOD WILLESDEN GREEN WIMBLKDOM \\IMBLEDON COMMON OTTKRY ST. MARY SID MOUTH Current Accounts are opened on the terms usually adopted by Bankers. In cases where a remunerative balance is not maintained, a small charge for commission is made. Deposits of 10 and upwards are received, subject to seven days' notice of withdrawal, and interest is allowed thereon at the rate advertised by the Bank in the London Newspapers from. time to time. Customers may pay in at any of the numerous Offices of the Bank for the credit of their accounts at Head Office or at any Branch.' The Agency of Country and Foreign Banks is undertaken, and every description of Banking business is transacted. Investments and sales of all descriptions of British and Foreign Securities, &c., are effected, and Dividends and Military and other Pay and Allowances are received. Ample Strong Room accommodation provided for custody of Securities, Plate, etc. Drafts on Demand, Circular Notes, and Letters of Credit, payable at the principal Town* abroad, are issued. The Officers and Clerks of the Bank are bound not to disclose the transactions of any of its rnstoniers. THE LONDON & PROVINCIAL BANK, LIMITED, SUBSCRIBED CAPITAL I,OOO,OCO. P X w JtiL JCa Jib Jt j ESTIMATES FREE ON APPLICATION. ESTABLISHED 1865. W, H, GERMAN, /Ifoercbants' & Bankers' ZCailor, 31, NEWGATE STREET, E.G. (FACING KING EDWARD STREET.) VALUE ABSOLUTELY UNEQUALLED. OVEECOATS in Black, Blue and Grey Cheviot FROCK COAT AND VEST in the New Black and Grey Cheviots and Black Vicunas MORNING COAT & VEST in Black and Blue Vicunas, Cheviots and Worsteds T A p T7"ri m QI A"M"n VTTQ'T'Cl 1*1 Bl a ck & Blu e Vicunas.Black, Blue and Grey Cheviots SUITS from the latest styles in Scotch Tweed TROUSERS from the latest styles in West of England Cloths and Scotch Cheviots 3 o/-, 35;., 42/-, 45/-, 50/- AND UPWARDS. /6 > 65/6 SO/, W^tt/-, 50/- 47/6 37/5, 42/-, 45/-, 50/-, 55/ AND UPWARDS , 13^ 16/6,^ 18/6 1 21/ Every order executed under my own personal supervision. CHUBB'S ARMOUR PLATE BANKERS' SAFES, PLATE SAFES, ETC. 68 GOLD MEDAL AND OTHER HIGHEST AWARDS, INCLUDING GRAND PRIX, ANTWERP, 1894. BANKERS INTERVIEWED BY EXPERIENCED ENGINEERS. TRUSTWORTHY WORKMEN SENT TO ALL PARTS OF THE COUNTRY. CHUBB & SONS LOCK & SAFE C<", LTD CHIEF WAREHOUSE- 128, QUEEN .VICTORIA STREET, LONDON, E.C.