Personal Recollections of Birmingham and Birmingham Men

by Eliezer Edwards

"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 assistance 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 circumstance 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 assets of the bank are, however, still very considerable, and there are real estates of great value belonging to the bank, and but slightly encumbered. 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 assets 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 assets 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 assets 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, passed 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 illustrious 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 soirées 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 passed; 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 circumstances 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.