BIRMINGHAM BANKS: OLD AND NEW.

At the close of the French war in 1814, the Bank of England commenced preparations for the return to specie payments. Immediate "tightness"

in the money market was the result. Prices fell. Trade became dull.

Credit was injured. The return of peace seemed, to the unthinking, a curse rather than a blessing. Alarming riots were frequent, and general distress and discontent existed. The Government, in some alarm, resolved to postpone the resumption of cash payments until 1819.

In the meantime, the subject of the proper regulation of the currency underwent a good deal of discussion, and in the year 1819 the Act known as "Peel's Bill" was pa.s.sed. It provided that after 1821 the bank should be compelled to pay its notes in bullion at the rate of 3 17s. 10-1/2d. per ounce, and that after 1823 holders of notes might demand at the bank current coin of the realm in Exchange. The same Act abolished the legal tender of silver for any sum beyond forty shillings.

This made matters worse. Banks became more stringent. Prices of all commodities fell. Numbers of people were thrown out of work. Poor's rates increased in amount and frequency, and general discontent prevailed. Corn and agricultural produce no longer fetched war prices.

Landlords insisted upon retaining war rents, which farmers were unable to pay. To meet this difficulty, Parliament pa.s.sed the Corn Laws, hoping thereby to keep up prices. These new laws produced the contrary effect. Wheat fell from 12s. to 5s. the bushel. Rents could not be collected. Mortgages upon land could not be redeemed, and land became practically unsaleable.

Things at length attained such a condition, that Government became seriously alarmed, and brought into Parliament five distinct money bills in one night. These bills were hurried through both Houses as fast as the forms of Parliament would allow. All of them had for their object the relaxation of the stringency of the money laws; and one Act permitted the issue of one pound notes for ten years longer, _i.e._, to 1833.

Trade immediately revived. Labour became abundant, and everyone, high or low, in the country, felt immediate relief and benefit.

Unfortunately, with the return to prosperity came the usual unwise rebound in public feeling. Everything became _couleur de rose_. The wildest joint stock enterprises were projected. Capital, obtained on easy terms of credit, was forced into every branch of commerce. Trade was pushed beyond legitimate requirements. Imports of cotton, wine, and silk increased so far beyond their usual amount, that the rates of exchange turned against this country. The Bank of England, in self-defence, "put on the screw." Money invested in distant countries, in speculative operations, was now badly wanted at home. Suspicion arose, and confidence was shaken. Merchants, in default of their usual help from bankers, suspended payment. Bankers themselves, having depended upon the return of their former advances, were in great peril. Alarm having become general, there was a simultaneous run for gold throughout the country, with the result that in a very short time seventy-nine banks stopped payment, of which no fewer than fifty-nine became bankrupt. The whole kingdom was in a frightful state of consternation. Failure followed failure in rapid succession. The whole circulation of the country was deranged, and at the beginning of December, 1825, the Bank of England stock of cash amounted only to a very few thousand pounds.

Ministers were called together in haste, and Cabinet Councils were daily held. It was decided to issue two millions sterling of Exchequer bills, upon which the bank was authorised to issue an equal amount of notes. The bank was also "recommended" to make advances of a further sum of three millions, upon the security of produce and general merchandise.

At this moment a fortunate discovery was made which did more to allay the excitement than the measures just mentioned. The bank had ceased to issue one pound notes six years before, and it was thought that they had all been destroyed. Accidentally, and most opportunely, when things were at the worst, one of the _employes_ of the Bank, in searching a store-room, found a case of the 1 unissued notes, which had escaped observation at the time of the destruction. They were at once issued to the public, by whom they were hailed with delight, as the first "bit of blue" in the monetary sky. Under these re-a.s.suring circ.u.mstances the panic soon subsided, but it left its blighting legacy of misery, ruin, diminished credit, and general embarra.s.sment.

The banking laws were soon after altered. The Bank of England was induced to forego its exclusive monopoly of having more than six proprietors, and the formation of joint stock banks consequently became possible. A new era in banking commenced, which, modified from time to time, has existed down to the present time.

It will be seen that the close of the war, in 1814, was the commencement of the great and violent monetary changes I have attempted to describe. There were then six banks in Birmingham. Two of these are altogether extinct; the other four have merged into existing banks. For convenience sake, I will sketch the extinct banks first, and afterwards show the processes by which the others have been incorporated with existing inst.i.tutions.

At the period mentioned, the firm of Smith, Gray, Cooper, and Co.

had the largest banking business in the town. They carried on their operations in the premises in Union Street now occupied by the Corporation as offices for their gas department. This bank did a large business with merchants and wholesale traders, and it "was a very useful bank." After several changes, the firm became Gibbins, Smith, and Goode. In the great panic of 1825, one of their customers, a merchant named Wallace, failed, owing them 70,000. This, with other severe losses, brought them down. They failed for a very large amount.

Such, however, had been their actual stability, that, after all their losses, and after payment of the costs of their bankruptcy, the creditors received a dividend of nineteen shillings and eightpence in the pound. Mr. Smith, of this firm, was a man of great shrewdness and probity, and was greatly esteemed by his friends. The late Mr. Thomas Upfill had, in his dining-room, an excellent life-size portrait of Mr.

Smith, taken, probably, about the year 1820. This portrait is now in the possession of a lady at Harborne. The face is a shrewd and observant one, and it always struck me as having a remarkable likeness to the great James Watt, the engineer. Of Mr. Gibbins and Mr. Goode we shall hear more as we go on, but "Smith's Bank" became extinct.

The firm of Galton, Galton, and James had their offices in the tall building in Steelhouse Lane, opposite the Children's Hospital. They weathered the storm of 1825, but, some years later on, Mr. James accepted the post of manager of the Birmingham Banking Company, whereupon the remaining partners retired into private life, and the bank was closed.

Messrs. Freer, Rotton, Lloyds, and Co. had offices in New Street, now pulled down. They had a large number of customers, princ.i.p.ally among the retail traders and the smaller manufacturers. The firm underwent several changes, being altered to Rotton, Onion, and Co., then Rotton and Scholefield, and finally to Rotton and Son. The banking office, in the meantime, had been removed to the corner of Steelhouse Lane, in Bull Street. Upon the death of the elder Mr. Rotton, the business was transferred to the National Provincial Bank of England, Mr. Henry Rotton becoming manager. This gentleman, whose death only recently occurred, held this position for many years, and was universally respected. His mental organisation was, however, too refined and feminine to battle with the rough energy of modern trading. The bank, under his management, was tolerably successful, but it remained a small and somewhat insignificant concern in comparison with others.

An arrangement, satisfactory on all sides, was at length entered into, under which he resigned his appointment. His successor is Mr. J.L.

Porter, a man of different stamp. Under his st.u.r.dy and vigorous management the business has rapidly increased. The premises were soon found too small. They were, shortly after he came, pulled down, and the present magnificent banking house in Bennetts Hill was built upon the site of its somewhat ugly and badly-contrived predecessor.

The firm of Coates, Woolley, and Gordon occupied, in 1815, the premises in Cherry Street now held by the Worcester City and County Bank. The business was, at a date I cannot learn, transferred to Moilliet, Smith, and Pearson, and this was subsequently changed to J.L. Moilliet and Sons, who carried the business on for many years, finally transferring it to Lloyds and Company Limited. This company removed it to their splendid branch establishment in Ann Street. Mr.

Moilliet, the senior partner in the Cherry Street Bank, was a Swiss by birth, and lived in Newhall Street. In a warehouse at the back of his residence, he carried on the business of a continental merchant. The mercantile firm became afterwards Moilliet and Gem, who removed it to extensive premises in Charlotte Street. Here, under the firm of E. Gem and Co., it is still carried on.

Taylor and Lloyd's Bank was established in 1765, at the corner of Bank Pa.s.sage in Dale End. Mr. Taylor had been a very successful manufacturer of j.a.panned goods, and made a very large number of snuff-boxes, then in universal use. He produced, among others, a style which was very popular, and the demand for which became enormous.

They were of various colours and shapes, their peculiarity consisting entirely in the ornamentation of the surface. Each had a bright coloured ground, upon which was a very extraordinary wavy style of ornament of a different shade of colour, showing streaks and curves of the two colours alternately, in such an infinity of patterns, that it was said that no two were ever found alike. Other makers tried in vain to imitate them; "how it was done" became an important question. The mystery increased, when it became known that Mr. Taylor ornamented them all with his own hands, in a room to which no one else was admitted. The fortunate discoverer of the secret soon acc.u.mulated a large fortune, and he used to chuckle, years after, as he told that the process consisted in smearing the second coat of colour, while still wet, with the fleshy part of his thumb, which happened to have a peculiarly open or coa.r.s.e "grain." It will be seen at once that in this way he could produce an infinite variety. Mr. Lloyd, the other partner, belonged to a very old Welsh family, which, as landed proprietors, had been settled for generations near Llansantfraid, in Merionethshire. There are some very ancient monuments of the ancestors of this family in the parish church there.

Somewhere about twenty-five years ago, the business was removed to the present premises in High Street, and a few years later on, the death--at Brighton--by his own hand, of Mr. Taylor, left the business entirely vested in the Lloyd family. About ten or twelve years ago it was decided to convert it into a limited liability company, and a very searching examination was made by public accountants, as a preliminary step. Just as the thing was ripe, the stoppage of the Birmingham Banking Company was announced. This deferred the project for a time, but the Messrs. Lloyd, with great judgment, published the accountants'

report. As soon as the excitement had abated, the prospectus was issued. The shares were eagerly subscribed for, and the company was formed. Moilliet's bank was included in the operation, and the bank, under the able presidency of Mr. Sampson Lloyd, commenced the energetic course of action which has resulted in its becoming the largest banking concern in the Midland Counties.

I cannot at the moment ascertain the date of the formation of the firm of Attwood, Spooner, and Co., but in 1815 the partners appear to have been the three brothers--Thomas, Matthias, and George Attwood, and Mr. Richard Spooner. Matthias Attwood seceded, and went to London. Of Thomas, it is unnecessary to say one word to Birmingham people; his statue in our princ.i.p.al street shows that he was considered to be no common man. He was one of the first Members for Birmingham upon its incorporation, and was re-elected in 1837. Although he had been so great and successful as a popular political leader, he made no "way"

in Parliament; and soon after the riots of 1839 he retired, being succeeded by Mr. George Frederick Muntz. The last time I saw Mr.

Attwood was in 1849, at the exhibition in Bingley House. He was then a thin, wasted, and decrepit old man. It was about this time that he retired from the bank.

George Attwood--his brother--was a man of different type. He was not a politician. He was, in his best days, energetic, prompt, and far-seeing. As he advanced in years he became fond of the pleasures of the table, and the quality of his port wine became proverbial. His intellect became dimmed, but his spirit of enterprise was active as ever. He speculated in mines and other property to a very large extent, and had not, as of old, the clear head to manage them properly. There is little reason to doubt that here lies the secret of the failure of the bank some years later.

Richard Spooner was a remarkable man in many respects. Like many others who in their later years have become "rank Tories," he began his political life as a Liberal, contesting the town of Stafford unsuccessfully in that interest. After the change in his views, he, upon the death of Mr. Joshua Scholefield, in July, 1844, was elected to be one of the Members for Birmingham, in opposition to the candidature of Mr. William Scholefield. At the general election in August, 1847, this decision was reversed; and Mr. Spooner, to this day, is remembered as having been the only Conservative Member Birmingham ever sent to Parliament.

Mr. Spooner was afterwards chosen to represent North Warwickshire, a position he held until his death, at the great age of 85, in November, 1864. He was quite blind for some years before his death. He had a great horror of photographers, and refused all requests to sit for his portrait. One was at length obtained surrept.i.tiously. On a fine summer day, he was persuaded, for the sake of the fresh air, to take a seat in the yard, which then existed at the back of the bank. Mr. Whitlock was in attendance, and succeeded, greatly to the delight of Mr. Spooner's friends, in obtaining a very good portrait of the blind old man, as he sat there, perfectly unconscious of what was going on. I believe this was the only portrait ever taken.

At the death of Mr. George Attwood--which preceded that of Mr. Spooner by some years--the firm had been re-const.i.tuted, and became Attwood, Spooner, Marshalls, and Co. The partners in the new firm were Mr. Thomas Aurelius Attwood, Mr. R. Spooner, and Messrs. William and Henry Marshall, who had been clerks in the bank all their lives. The deaths, in a comparatively short period, of Mr. T.A. Attwood and Mr. W.

Marshall, followed soon after by that of Mr. Spooner, left Mr. Henry Marshall the only surviving member of this firm.

Soon after Mr. Spooner's death, it was announced that an amalgamation of this bank with the Birmingham Joint Stock Bank in Temple Row had been agreed upon, and satisfaction with this arrangement was universally expressed. On Sat.u.r.day March 10, 1865--only four months after Mr.

Spooner's decease--the town, and in fact the whole country, was electrified by the announcement that the bank had stopped payment.

People were incredulous, as it had been thought to be one of the safest banks in the kingdom. An excited crowd surrounded the bank premises during the whole day, and a strong force of police was in attendance to preserve order. In the course of the day a circular was issued, of which the following is a copy:

"It is with feelings of the deepest concern and distress that we announce that we are compelled to suspend payment, and this at the moment when, after several months of anxious negotiation, we had confidently trusted we should obtain such a.s.sistance as would enable us to carry into effect, on our part, the preliminary agreement for the amalgamation of the bank with the Birmingham Joint Stock Bank.

In this hope we have been disappointed. Sums of money to a large amount were drawn out of the bank some years since by the family of the Attwoods. To this circ.u.mstance it can be clearly shown, at the proper time, our failure is to be attributed. For the last ten years every effort has been made to redeem the loss thus occasioned, but this has only been partially accomplished. The a.s.sets of the bank are, however, still very considerable, and there are real estates of great value belonging to the bank, and but slightly enc.u.mbered. We hope that in now suspending payment we shall be considered as taking the best and only step to ensure a just and equal distribution of our a.s.sets among our creditors."

Upon a full investigation of the state of affairs, it was found that the total amount of liabilities amounted to the large sum of 1,007,000, and that the a.s.sets consisted chiefly of landed and mining properties of a very speculative nature. There was also a very large amount of overdrawn balances due from customers. After many projects had been launched, it was announced that the committee of investigation had, subject to the approval of the general body of creditors, disposed of the entire a.s.sets to the directors of the Joint Stock Bank, they undertaking to pay the creditors of Attwood and Co., in immediate cash, a dividend of 11s. 3d.

in the pound. This arrangement was carried into effect, and "Attwood's Bank" became a memory only. Mr. Henry Marshall is, however, still living in retirement at Weston-Super-Mare, and is, notwithstanding his great age, in vigorous health, both of mind and body.

The old familiar premises have now, too, pa.s.sed away. The inconvenient old office, with its rows of leather buckets, and its harmless array of antiquated blunderbuses; its old-fashioned desks, dark with age, and begrimed with ink spattered by successive generations of bygone clerks; the low ceiling and quaint elliptic arches; the little fire-place near the counter, where Aurelius Attwood, with his good-humoured face, used to stand warming his coat-tails, and greeting the customers as they came in, were all so much in harmony with the staid, gray-headed clerks, and the quiet, methodical ways of the place, that when there, one might fancy he had stepped back for fifty years, or was looking upon a picture by Hogarth.

It was stated a few pages back that the Bank of England, after the great panic of 1825, consented to forego their exclusive privilege of joint-stock banking. This, however, was not done without an equivalent, for the Act of 1826, ratifying this consent, gave them the power of establishing branch banks in the large towns of England. In pursuance of the powers thus granted, the first branch was opened at Gloucester on July 19th of that year. Others were started at Manchester, September 21st, and Swansea, October 23rd. On New Year's Day, 1827, the Branch Bank of England commenced business in Birmingham, occupying the premises of the defunct firm of Gibbins, Smith, and Goode, in Union Street, now the Gas Offices of the Corporation. The first manager was Captain Nichols, who brought with him, from the parent bank, a staff of clerks. One of these, a mere youth at the time, was destined to fill an important position in the town and in the country. This was Charles Geach; a very remarkable man, of whom I shall have more to say by and by.

Captain Nichols was succeeded by Captain Tindal, brother of the ill.u.s.trious jurist, Lord Chief Justice Tindal. During this gentleman's tenure of office the business was removed to the premises in Bennetts Hill, vacated by the unfortunate "Bank of Birmingham," of which more hereafter. Here the business has ever since been conducted.

Captain Tindal was a good man of business, and under his management the bank was very prosperous. He was a man of highly-cultivated mind.

He took a very active interest in all local matters connected with literature and art, and he was a very liberal patron of the drama.

Those who had the pleasure of being present at the pleasant _soirees_ at his house, to which he was accustomed to invite the literary and artistic notabilities of the neighbourhood, will not easily forget how pleasantly the evenings pa.s.sed; how everyone enjoyed the charades and theatricals which were so excellently managed by the gifted Miss Keating, then a governess in the family; how, too, everyone was charmed with the original and convenient arrangement for supplying visitors with refreshments. Instead of the conventional "sit-down suppers" of those days, Captain Tindal had refreshment counters and occasional tables dotted here and there, so that his friends took what they pleased, at the time most convenient to themselves. One room was very popular. Within its hospitable portals, hungry bipeds of the male persuasion were supplied, to their intense satisfaction, with abundant oysters, and unlimited foaming Dublin stout. Oysters were then five shillings the barrel of ten dozens! _Tempora mutantur; spero meliora!_

It was a great loss to social and artistic Birmingham when Captain Tindal was removed to London, twenty-one years ago. The Bank of England opened a "West End" branch in Burlington Gardens, London, and the Captain was appointed its first manager. This new branch was opened October 1st, 1856. The resolution of the Board of Directors to appoint Mr. Tindal to this position seems to have been taken suddenly, for Mr. Chippindale, who had been sub-manager for some years, and was now placed at the head of the Birmingham branch, did not know of it until he was informed of his appointment by a customer of the bank.

This gentleman, who was a merchant in the town, tells me that he "was the first to tell him of it. He said it was not true, and he must go out and contradict it. I told him I _knew_ it _was_ true, but even then he was incredulous." Mr. Chippindale has recently retired, and has been succeeded by Mr. F.F. Barham.

Soon after Mr. Chippindale's appointment, a friend of mine received from New York a large sum in four months' bills upon Glasgow, which he wished to discount. He was well known in Birmingham, but had no regular banking account. The bank rate in London was four per cent. He took the bills first to the National Provincial Bank, where Mr. Henry Rotton offered to "do" them at four-and-a-half. This he thought too high, and he next took them to the Bank of England. Mr. Chippindale told him that the rule of the bank was not to discount anything having more than ninety days to run; but, if he left the bills as security, he could draw against them for the cash he wanted, and, as soon as the bills came within the ninety days' limit, they could be discounted at the London rate of the day. This arrangement was entered into, but, unfortunately for my friend, a sudden turn in the market sent the rate up three per cent. within the month, so that, when the transaction was completed, he had to pay seven per cent. It made a difference to him of between 200 and 300.

From the time of Mr. Chippindale's appointment, the branch bank has gone quietly on in its useful course. It does not compete much with the other banks in general business; indeed, its office seems to be rather that of a bank for bankers. Now that none of the local banks issue their own notes, it is a great convenience to them to have on the spot a store of Bank of England paper, available at a moment's notice, to any required amount.

The ten years from 1826 were very fruitful of joint stock banks in Birmingham. Some have survived, but many are almost forgotten. I will mention the defunct ones first. The "Bank of Birmingham" was promoted by a Quaker gentleman, named Pearson. He had been, I believe, a merchant in the town, but was afterwards a partner in the firm of Moilliet Smith, and Pearson, from which he seems to have retired at, the same time as his partner, the well-known Mr. Timothy Smith. The Bank of Birmingham started with high aims and lofty expectations. The directors built for their offices the substantial edifice on Bennetts Hill, now occupied as the Branch Bank of England, and they prepared for a very large business. They, however, much as they may have been respected, and successful as most of them undoubtedly were in their private affairs, were not men of large capacity, and they had not the quick and sound judgment of character and circ.u.mstances necessary in banking. Nor were they very fortunate in their manager. Mr. Pearson, although he might have been taken as a model of honesty, truthfulness, and straightforwardness, was a phlegmatic, heavy man, and his manners were, to say the least, unprepossessing. The bank was not a success.

Negotiations were, a few years after, entered into, and arrangements resulted, by which the Birmingham Banking Company took over the business, on the basis of giving every shareholder in the Bank of Birmingham a certain reduced amount of stock in their own bank, in exchange.

Some time before the transfer took place, a member of one of the most respected and influential mercantile families in the neighbourhood suspended payment, owing a large sum to the Bank of Birmingham, upon which he paid a composition. He afterwards prospered, and some twenty-five years afterwards, all those shareholders in the defunct bank who still held, in the Birmingham Banking Company, the shares they had been allotted in exchange at the time of the transfer, received cheques for the deficiency, with interest thereon for the whole period it had been unpaid. A relative of my own received, in this way, several hundred pounds. I am not aware that this circ.u.mstance has ever been made public, but it is due to the memory of the late Mr. Robert Lucas Chance that so praise-worthy an act should be on record.

Mr. Pearson, after the closing of the bank, commenced business as a sharebroker, which he continued until his death. He was one of the last to retain, in all its rigour, the peculiar dress of the Society of Friends. His stout, broad-set figure, with the wide-brimmed hat, collarless coat, drab "thoses" and gaiters, will be remembered by many readers.

The Commercial Bank had offices at the corner of Ann Street and Bennetts Hill. Mr. John Stubbs was an active promoter of this bank, and Mr. James Graham was manager. It had a short life. Mr. Graham went to America, and died somewhere on the banks of the Mississippi.

The Tamworth Banking Company opened a branch in High Street, opposite the bottom of Bull Street. It was open as late as 1838, but was eventually given up, and the premises were occupied by Mrs. Syson as a hosier's shop, until pulled down for the Great Western Railway tunnel.

The Borough Bank was promoted by Mr. Goode, of the defunct firm of Gibbins, Smith, and Goode. It was connected with the Northern and Central Bank of England. The office was in Bull Street, in the premises now held by Messrs. J. and B. Smith, Carpet Factors.

This bank was unsuccessful, and when it closed, Mr. Goode opened a discounting office in the Upper Priory, which proved to be successful.