Chapter 7

From this time forward there seems to have been great want of a strong head and a steady eye amongst the directors. The plausibilities of Mr. W.H. Beaumont--who had succeeded his father as manager--seem to have put them off their guard, and they followed where he led until it ended in ruin. It is useless now to say all one knows, or a quarter of what has been said; but it has always been my opinion, and always will be, that if Charles Shaw, or a man with half his courage and ability, had been at the helm, the Bank would not have closed its doors. Had they only sought counsel of their larger shareholders, there was amongst them one man, still living, who not only could, but would, have saved the bank from shipwreck.

Few men in Birmingham are likely to forget "Black Saturday," the 14th of July, 1866. Had a French army suddenly opened a bombardment of the town from Highgate, it would possibly not have caused greater astonishment and dismay. That very week shares had been sold on the Stock Exchange at a high premium; and now, by the culpable weakness of a few unquestionably honest and well-intentioned gentlemen, the hard-earned life's savings of aged and infirm men, the sole dependence of scores of widows and hundreds of orphans, was utterly gone. No wonder that pious, God-fearing men ground their teeth and muttered curses, or that women, pale and trembling, tore their hair in wild terror, while some poor sorrowing creatures sought refuge in suicide. No wonder that even now, more than eleven years after, the memory of that day still rises, like a hideous dream, in the minds of thousands.

I have been shown a copy of a lithographed daily newspaper, printed on board the "Great Eastern" steamship, then engaged in laying the first successful Atlantic cable. In the number for July 14th, is an account of the stoppage of this bank, which had been telegraphed to the ship in mid-ocean by means of the cable then being submerged.

Upon full investigation it was ascertained that the total liabilities amounted to L1,805,469 10s. 5d. All the capital was lost. A call of L10 per share was made upon the unfortunate shareholders, and the debts were paid. Some time afterwards the new "limited" company which had been formed upon the ruins of the defunct bank took over some unrealised assets, and this resulted in a return of L1 per share, leaving a clear total loss, taking the shares at the market price, of L43 per share.

On Thursday, July 19th, a meeting of the shareholders was held in the large room at the Exchange, nearly 500 being present. Mr. Edwin Yates, the Mayor, presided, and in his opening remarks pointed out that the resuscitation of the bank was impossible, for various reasons which he mentioned. The discussion which followed was marked by great moderation. There was little excitement, and not much expression of angry feeling. Mr. William Holliday, in a very masterly speech of great length, showed the difficulties in the way of reviving the bank, and suggested that the only way of saving the property of the shareholders, was by the establishment of a new bank on the ruins of the old, the shareholders in which were to have priority in the allotment of shares. This, having, been discussed by several speakers, was eventually decided upon, and a committee was appointed to carry the resolutions into effect.

The new bank, under the name of the "Birmingham Banking Company Limited," was formed with all speed. Josiah Mason--then plain Mister--was the first chairman, and Mr. T.F. Shaw manager. The shares "came out" at a small premium, from which they gradually rose. From that time it has gone on steadily and surely. It has secured a good _clientele_, and is doing a large and profitable, business. It pays good dividends, and its shares stand well in the market. Mr. Shaw retired, from "continued ill health," in May, 1876. Mr. P.W. Walker was appointed manager _pro tem._, and at the end of the year, Mr. James Leigh, who had been manager of the Birmingham branch of the Worcester Bank, took the helm. May the bank under his guidance have, _fortitudine et prudentia_, a long career of prosperity and usefulness before it!

I shall now have to go back again to the year 1836. At this time trade was good and everything looked prosperous. Mr. Geach, who was still a clerk in the Bank of England, conceived the idea of starting a fresh bank, and having secured the adhesion of a few influential men, the prospectus was issued of the Town and District Bank, capital L500,000, in 25,000 shares of L20 each. The shares were taken up readily, and the branch commenced business in Colmore Row, on the 1st of July, 1836. The directors were Messrs. George Bacchus (chairman), Edward Armfield, George J. Green, George C. Lingham, John G. Reeves, Josiah Richards, and Philip Williams.

Although the bank had been started entirely through the exertions of Mr. Geach, who naturally expected to be appointed the manager, he was left out in the cold, and the appointment fell upon Mr. Bassett Smith. This gentleman had been a clerk to the firm of Gibbins, Smith, and Co., until their stoppage, and he afterwards was manager of a bank at Walsall, which appointment he threw up when he came to the District Bank. He held his position as manager here for many years, but was eventually induced to retire; He certainly was not a great banking genius. He was led more by impulse and feeling than by sound business judgment and coolness, and he often made mistakes in his estimate of the customers. Some--whom he liked--would "get on" easily enough, while others, equally worthy of attention, might ask in vain for slight accommodation. Nor was his manner judicious. I was in the bank one day, when a highly respectable man brought some bills to the counter to be placed to his account. The clerk took them to Mr. Smith, who was near the counter; he turned them over in his hand, and giving them back to the clerk, with a contemptuous gesture, said, loud enough to be heard by everyone there, "No!--a thousand times no!" Had the customer been a swindler he could not have been treated with greater insult and contumely. It was a fortunate thing for the bank when Mr. Barney became manager. From that time the bank has assumed its proper position. Under its new designation of the "Birmingham and Dudley District Banking Company" it has taken rapid strides. There is every reason now for thinking it is highly prosperous, and is likely to have a future of great use and profit. The new premises are an ornament to an ornamental part of the town, and are very conveniently arranged; but to people with weak eyes, the light from the windows, glaring in the face as one stands at the counter, is most unpleasant, and some steps to modify its effect might be judiciously taken.

Immediately after Mr. Bassett Smith had been appointed manager of the District Bank, some gentlemen, amongst whom Mr. Gammon, of Belmont Row, was very prominent, thinking that in all fairness Mr. Geach should have been elected, seeing that he was the originator of the scheme, and had done the greater part of the preliminary work, determined to form another bank. There was to be no mistake this time, for Mr. Geach's name was inserted in the prospectus as the future manager. He was at this time only 28 years of age. He had been resident but a very few years in the town, but had already the reputation of being one of the most able young men in the place. His manners, too, were singularly agreeable. On the faith of his name, the public readily took up the necessary number of shares. So great was the energy employed, that in seven weeks from the opening of the District Bank, its competitor, the Birmingham and Midland Bank, had commenced business.

Having been so long in the office of the Bank of England, in Union Street, the young manager naturally thought it the best locality for the new bank; and as there was a large shop vacant in that street, a few doors below Union Passage, on the right-hand side going down, it was taken, and in these temporary premises the bank commenced, on the 23rd of August, 1836, its prosperous and most useful career.

Mr. Robert Webb was the first Chairman of the Board of Directors; Mr. Thomas Bolton, merchant, of New Street, was one of the most active members. Mr. Samuel Beale, after a time, joined the board, and was very energetic. He soon formed a friendship for the manager which only terminated with life. Mr. Henry Edmunds, who so recently retired from the post of managing director, but who still holds a seat at the board, was sub-manager from the opening; and Mr. Goode, who now fills the manager's seat, went there as a clerk at the same time.

The tact and energy of the manager, and the shrewd business capacity of the directors, soon secured a very large business. In a very short time the building now held by the Conservative Club, which the bank had erected a little higher up the street, was occupied, and here the business was conducted for more than twenty-five years. The building included a very commodious residence for the manager, and here Mr. Geach took up his abode with his family.

During the preliminary disturbances in 1839, which culminated in the Bull Ring riots, Mr. Geach received private information one afternoon, which induced him to take extra precautions for the safety of the books, securities, and cash. While this was being done, the clerks had collected a number of men and some arms. They also obtained, and took to the roof, a great quantity of stones, bricks, and other missiles, which they stored behind the parapets. The men were so placed, that by mounting an inner stair they could ascend to the roof, from which spot, it was proposed, in case of attack, to hurl the missiles upon the mob below. News was soon brought that the mob was congregating in Dale End and that neighbourhood. At the request of some of the magistrates who were present, Mr. Geach started off for the barracks, galloping through the mob, who threw showers of stones, brick-ends, and other disagreeable missiles at him, and shouted, "Stop him," "Pull him off," "He's going for the soldiers," and so on. His horse was a spirited one, and took him safely through. He reached the barracks and secured assistance. He then came back by another route to the bank, and the expected attack was averted. There is no doubt that his energetic conduct that day saved the town from violence and spoliation.

It is not my intention in this paper to sketch the character of Mr. Geach. I have now only to deal with him in reference to the bank, which he so ably managed, and in which down to his death he felt the warmest interest. About 1839 or 1840 he began to engage in commercial transactions on his own account, and these growing upon him and requiring much of his personal attention, he, about 1846 or 1847, resigned his position as manager, and was succeeded by his old friend and colleague, Mr. Henry Edmunds. Mr. Geach, however, though no longer engaged in the active management, was appointed managing director, and in this capacity was generally consulted on all the more important matters.

Mr. Edmunds is a man of altogether different type to his predecessor. Mr. Geach had been bold in his management, to a degree which in less skilful hands might have been perilous to his employers. Mr. Edmunds's principal characteristic, as a manager, was excessive caution. But, although so utterly varying in character, both men were peculiarly fitted for their post at the time they were in power. Boldness and vigour gave the bank a large connection, and established an extensive business. Caution and carefulness were quite as essential in the times during which Mr. Edmunds guided the destinies of the bank. In that speculative period of twenty-five years, his prudence and cool judgment were valuable qualities, and they served good ends, for the "Midland," under Mr. Edmunds, was pre-eminently a "lucky" bank. He had no occasion for the more brilliant qualities of his predecessor; the bank was offered more business than it cared for; and his caution and hesitation saved his directors much trouble, and his shareholders considerable loss.

As in process of years the business increased, the old premises were found to be too small, and the directors contemplated enlargement. Some energetic spirits on the board advocated the erection of a new building. It was debated for some time, but it finally resulted in the erection of the present palatial banking house at the corner of Stephenson Place. It is no secret that Mr. Edmunds disapproved of the step, and, indeed, at the dinner given to celebrate the opening of the new premises, he expressed, in plain terms, his opinion that they had made a mistake, and that they had better have remained where they were.

Be that as it may, the business was removed to New Street in 1869, at which time, I believe, Mr. Samuel Buckley was Chairman of the Board of Directors. One can imagine the satisfactory feelings of his mind as he reflected that within a very few yards of the magnificent bank, of which he was then the head, he, comparatively unknown, took years before a situation in the warehouse of a merchant, Mr. Thomas Bolton, which then stood on the site of the Midland Hotel. In this business Mr. Buckley rapidly rose in the estimation of his employer, becoming, first his partner, and subsequently his successor. The business, when the old premises were required for other purposes, was removed first to Newhall Hill, and finally to Great Charles Street, where it is still carried on as Samuel Buckley and Co.

Shortly before the removal to New Street, Mr. Edmunds began to wish for a less laborious position. Following the precedent in Mr. Geach's case, he was made managing director, and Mr. Goode took the well-earned position of manager. This arrangement existed until about twelve months ago, when Mr. Edmunds retired altogether from the active administration of the business. He retained, however, a seat at the board as one of the ordinary directors. On this occasion, the board, with the sanction of the shareholders, to mark their sense, of his admirable judgment and unceasing industry, voted him a retiring pension of L1,000 a year. His portrait now hangs in the board-room at the bank, near that of his friend, Mr. Geach. May the walls of this room, in the future, be adorned by the "counterfeit presentment" of successive managers as good and true as these two, the pioneers, have proved themselves!

Mr. Goode's qualifications for the post he occupies are not only hereditary, but are supplemented by the experience of more than forty years in this bank, under the able guidance of the two colleagues who have preceded him. His acute perceptions and great financial skill qualify him admirably for the post, whilst his undeviating courtesy has made him very popular, and has gained for him "troops of friends."

Notwithstanding the enormous increase in the business of the town and neighbourhood, there was no other bank established in Birmingham for more than twenty-five years. One reason, probably, was that, by a clause in an Act of Parliament, it was made incumbent upon all banks established after it became law, to publish periodical statements of their affairs. This seemed to many shrewd men to be an obstacle to the success of any new bank, although it was felt that there was ample room for one. The passing of the Limited Liability Act opened the way. It was seen that by fixing the nominal capital very high, and calling up only a small portion of its amount, there would always be so large a margin of uncalled capital, that the periodical publication of assets and liabilities could alarm no one. Taking this view, and seeing the probability of a successful career for a new banking institution, a few far-seeing men--notably the late Messrs. John Graham and Henry Clive--soon attached to themselves a number of influential colleagues, and at the latter end of 1861 the prospectus of the Birmingham Joint Stock Bank was issued. Mr. G.F. Muntz was chairman, Mr. Thomas Short, vice-chairman, and Messrs. John Graham, H. Clive, R. Fletcher, J.S. Keep, W. Middlemore, C.H. Wagner, and W.A. Adams were directors. The capital, to the required extent, was eagerly subscribed. Mr. Joseph Beattie, of London, was appointed manager, and the bank opened its doors, in Temple Row West, on New Tear's Day, 1862.

The directors, at their preliminary meetings, had come to some very wise resolutions, having for their tendency the creation of public confidence in the good management and complete stability of the new venture. One of these was that no one of the directors could at any time, or under any circumstances, overdraw his account at the bank. Recollections of what had been done aforetime showed the public the wisdom of this step, and the shares became consequently in good demand, and soon reached a fair premium. The directors, with great judgment, had made a large reserve of unallotted shares, and now that they had become a popular investment, they offered them to large traders at par, on condition of their opening accounts at the new bank. Other inducements were held out to attract business, and in a very short time the bank was doing at least as large a business as some of its competitors.

The appointment of Mr. Beattie was a most judicious one. He is, unquestionably, a very able man of business; and his untiring energy and perseverance are very remarkable, even in these days of hard work. Under such management, and with so good a board of directors at his back, it is no wonder that the bank now occupies a foremost place amongst its fellows.

The Worcester City and County Bank is the last, but it bids fairly to become by no means the least, amongst the banks of the town. The parent bank was established in Worcester in 1840. It was a prosperous and successful local bank of no great celebrity until the failure of Messrs. Farley and Co., of Kidderminster, in 1856. The directors then opened a branch establishment in that town, which was successful beyond expectation. Encouraged by this, they afterwards opened branches at Atherstone, Bridgnorth, Bromsgrove, Cheltenham, Droitwich, Evesham, Ludlow, Leominster, Presteign, Malvern, and Tenbury, and in 1872 they resolved to establish a bank at Birmingham. Lloyds and Co. had just removed from Moilliet's old premises in Cherry Street, to their new bank, in Ann Street, and, rather unwisely, left the old place in Cherry Street to be let to the first comer. The Worcester company became the tenants, and opened their bank in 1872, under the management of Mr. J.H. Slaney. This gentleman retired in about twelve months, and was succeeded by Mr. James Leigh, the present manager of the Birmingham Banking Company. When he accepted his present post, Mr. F.W. Nash took the helm. The bank seems, in the short time it has been established, to have been very successful, for the premises, after having been twice enlarged, are, it is said, now too small; and it is understood that a plot of land in Ann Street, near the corner of Newhall Street, has been secured, and that Mr. F.B. Osborne is engaged upon plans for the erection, on this site, of a new banking house, which will be no mean rival to those already in existence, adding another fine architectural structure to the splendid line of edifices which will soon be complete from the Town Hall to Snow Hill.

There only remains one more bank to mention, and I cannot remember its name. It was opened some ten or twelve years ago in the tall building at the west corner of Warwick House Passage, now occupied by Mr. Hollingsworth. It was under the management of Mr. Edwin Wignall, who had been sub-manager at the District. It had but a short life. The careful manner in which the stone pavement of the vestibule and the steps leading from the street were cleaned and whitened every morning, and the few footmarks made by customers going in and coming out, gained for it the name of the "Clean Bank," by which title it will be remembered by many. The business that had been collected was transferred to the Midland, and the New Street bank was closed.

My sketch of the Birmingham Banks is now complete. It is very satisfactory to reflect that in the long space of sixty-three years over which it ranges, there have been only two cases in which the creditors of Birmingham banks have suffered loss; and really it is greatly to the credit of the good old town that these losses have been, comparatively, so insignificant. In the bankruptcy of Gibbins and Co., in 1825, the creditors received 19s. 8d. in the pound. In the more recent case--that of Attwood and Co.--they received a dividend of 11s. 3d. Both these cases compare favourably with others at a distance, where dividends of one or two shillings have not been infrequent. The banking business of the town is now in safe and prudent hands, and there is strong reason for hoping that the several institutions may go on, with increasing usefulness and prosperity, to a time long after the present generation of traders has ceased to draw cheques, or existing shareholders to calculate upon coming dividends.

As I stood, not long ago, within the splendid hall in which the Birmingham and Midland Bank carries on its business, my mind reverted to a visit I once paid, to the premises, in the City of Gloucester, of the first county bank established in England. Perhaps in all the differences between bygone and modern times, there could not be found a greater contrast. The old Gloucester Bank was established in the year 1716, by the grandfather of the celebrated "Jemmy Wood," who died in 1836, leaving personal property sworn under L900,000. Soon after his death, I saw the house and "Bank," where he had carried on his business of a "banker and merchant." The house was an old one, the gables fronting the street. The upper windows were long and low, and were glazed with the old lead-framed diamond-shaped panes of dark green glass. The ground-floor was lighted by two ancient shop windows, having heavy wooden sashes glazed with panes about nine inches high by six wide. To the sill of each window, hung upon hinges, were long deal shutters, which were lifted up at night, and fastened with "cotters." There were two or three well-worn steps to the entrance. The door was divided half-way up: the upper portion stood open during business hours, and the lower was fastened by a common thumb latch. To the ledge of the door inside, a bell was attached by a strip of iron hooping, which vibrated when the door was opened, and set the bell ringing to attract attention. The interior fittings were of the most simple fashion; common deal counters with thin oaken tops; shabby drawers and shelves all round; one or two antiquated brass sconces for candles; a railed-off desk, near the window; and that was all. In this place, almost alone and unassisted, the old man made his money. I copy the following from "Maunder's Biographical Dictionary:" "In conjunction with the bank, he kept a shop to the day of his death, and dealt in almost every article that could be asked for. Nothing was too trifling for 'Jemmy Wood' by which a penny could be turned. He spent the whole week in his banking-shop or shop-bank, and the whole of the business of the Old Gloucester Bank was carried on at one end of his chandlery store."