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1
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-
84980218173
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-
For an analysis of the crash see L. S. Pressnell, Country Banking in the Industrial Revolution (Oxford, 1956), pp. 433, 497–8; F. W. Fetter, Development of British Monetary Orthodoxy ( Cambridge, ; The Bank of England, Cambridge, 1944), 11, pp. 96–109; E. V. Morgan, The Theory and Practice of Central Banking, 1797–1913 (Cambridge, 1943), pp. 76–86; I. Bowen, ‘Country Banking, the Note Issues and Banking Controversies of 1825’, Economic Journal, 68, 88
-
(1965)
, pp. 111-122
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-
-
2
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-
84980274113
-
-
For an analysis of the committee reports, negotiations and opposition see Clapham, Bank, 11, pp. 102–9; Morgan, Theory, ; Fetter, Development, pp, 120, 6
-
-
-
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3
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-
84980268661
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-
The two Acts were: 7 Geo IV c. 6, 26 Mar. 1826 and 7 Geo IV c. 46, 26 May 1826.
-
-
-
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4
-
-
84980261545
-
By 1827 branches had been established at Gloucester, Manchester, Swansea, Bristol, Birmingham, Liverpool, Leeds, and Exeter. W. M. Acres
-
The Bank of England from Within, 1694–1900, (. A number of authors have observed that these centres were not necessarily those in need of ‘financial rehabilitation’. See R. O. Roberts, ‘Bank of England Branch Discounting, 1826–29’, Economica, xxv, 1958), p. 230; L. H. Grimmond, Manchester Banks and Bankers ( Manchester, 2nd edn, 1978), p, 223; Bank, 11, p. 114; M. Collins, The Bank of England at Liverpool, 1827–1844, xiv, (1972), p., 158.
-
(1931)
Business History
, vol.1
, pp. 428-429
-
-
-
5
-
-
84980258375
-
-
S. G. Checkland, ‘The Birmingham Economists, 1815–50’, Economic History Review, 2nd ser. I (1948), pp. 1–19; D. J. Moss, ‘Thomas Attwood: the Biography of a Radical’ (unpublished D.Phil, Thesis, University of Oxford, 1973), chs. IV and V.
-
-
-
-
6
-
-
84980274124
-
-
R. K. Dent, Old and New Birmingham (Reprint, Wakefield, 1973), 111, p. 496; P. L. Cottrell, Industrial Finance, 1830–1914: the Finance and Organization of English Manufacturing Industry
-
(1980)
, pp. 32
-
-
-
7
-
-
84980268665
-
-
Bank of England Correspondence, Birmingham Letter Books (hereinafter B.O.E. Corres.). G. Nicholls to H. Hase, 29 Jan. 1826. This correspondence can be found in the Bank of England archives, Roehampton.
-
-
-
-
8
-
-
84980297664
-
-
Taylors & Lloyds had been founded in 1765; Moillet, Smith & Co. in 1780; Attwoods & Spooner in 1791; Gallon & James in 1804; and Freer, Rotton & Co. in 1805.
-
-
-
-
9
-
-
84980258903
-
-
B. O. E. Corres. G. Nicholls to H. Hase, 10 Dec. 1827.
-
-
-
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10
-
-
84980305853
-
-
The Birmingham banks had correspondents in virtually every major industrial centre in Great Britain. (See, for example, the bill books of Taylors & Lloyds, Lloyds Bank Archives, London.).
-
-
-
-
11
-
-
84980313222
-
-
Taylors & Lloyds had saved themselves only by making arrangements to have gold sent by post‐chaise from London. (Birmingham Journal, 17 Dec. 1825, Taylors & Lloyds letter books, No. 323, Letter to Rathbone & Co., Liverpool, 11 Aug. 1827 et. seq.) Similarly, Attwoods & Spooner had to be helped by a cousin of the former family, John Attwood. He lent the bank £60,000 by buying up a stock of bills drawn on London which were, for the moment, virtually worthless (B. O. E. Corres. G. Nicholls to R. Elsey, 2 Nov. 1832). Of the other houses, Paul Moon James, a partner in Gallon & James met demands by selling exchequer bills and government stock well below market levels. (Report from the Secret Committee on Joint Stock Banks, P.P. 1836, IX, Q. 802.).
-
-
-
-
12
-
-
84980313229
-
-
Morning Chronicle, 16 Jan. 1826. B. L. Add. MS 40384, f. 56, 67, 21607 (Peel Papers).
-
-
-
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13
-
-
84980261569
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-
Aris Birmingham Gazette, 10 Apr., 1826. They were promised £300,000.
-
-
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14
-
-
84980258908
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-
George Nicholls (1781–1865) was an excellent choice in that he brought a wealth of business experience to the post. He had been offered the position of agent for the Bank of England at Gloucester, where he had managed the Gloucester and Berkeley Ship Canal, but he had declined. Later he became a Poor Law Commissioner in England and in 1836 was sent to Ireland to report on conditions in that country. He was eventually knighted.
-
-
-
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15
-
-
84980291606
-
-
For an analysis of the applications submitted to the branch bank for discount privileges see C. Wood‐head, ‘The Bank of England's branch at Birmingham, 1827–44’ (in preparation, University of London).
-
-
-
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16
-
-
84980258911
-
-
B.O.E. Corres. G. Nicholls to H. Hase, 3 Jan. 1827.
-
-
-
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17
-
-
84980291604
-
-
T. Attwood and Sir John Sinclair, The Late Prosperity and the Present Adversity of the Country Explained
-
(1826)
, pp. 55-58
-
-
-
18
-
-
84980297671
-
-
Attwood offered to provide sovereigns for the branch bank and thus save it the expense of transporting gold from London. Although Nicholls agreed to the arrangement, the sovereigns were never deposited.
-
-
-
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19
-
-
84980297680
-
-
B.O.E. Corres. G. Nicholls to H. Hase, 29 Jan. and 7 Mar. 1827.
-
-
-
-
20
-
-
84980306182
-
-
Clapham outlines the procedures used by the branch banks (Clapham, Bank, 11, p. 183).
-
-
-
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21
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-
84980306188
-
-
B.O.E. Corres. G. Nicholls to H. Hase, 21 Sept. 1827. Even the new Savings Bank, which kept its deposits at the Bank of England, did not escape criticism.
-
-
-
-
22
-
-
84980231566
-
-
Ibid. G. Nicholls to H. Hase, 19 Oct. 1827. The first move in the campaign orchestrated by Burgess did not, however, involve Birmingham. In September, the Circular to Bankers proposed that individual bankers buy £500 of Bank stock and so gain the right to vote at the court meetings of Bank proprietors. For an analysis of the initiative see Pressnell, Country Banking
-
-
-
-
23
-
-
84980291596
-
-
Attwood wrote six letters in all. These were later published. See T. Attwood, The Scotch Banker (Birmingham, 1828).
-
-
-
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24
-
-
84980306122
-
-
B.O.E. Corres. G. Nicholls to H. Hase, 21 Sept. 1827; Birmingham Chronicle, 13 Oct. 1827. The following year the privilege of compounding was extended to all, and Henry Burgess launched a campaign in his Circular to Bankers to encourage the adoption of the practice.
-
-
-
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25
-
-
84980305821
-
-
Aris Birmingham Gazette, 17 Dec. 1827. The sincerity of these technical complaints can be gauged by the refusal of the meeting to accept an offer of support from a group of country M.P.s led by Lord Clive, all small note enthusiasts, on the grounds that such an alliance would have confused the real issues.
-
-
-
-
26
-
-
84980282442
-
-
B.O.E. Corres. G. Nicholls to H. Hase, 22 Jan. 1828.
-
-
-
-
27
-
-
84980234604
-
-
Ibid. 26 Oct. 1827, 12 Jan. 1828.
-
-
-
-
28
-
-
84980306143
-
-
Ibid. G. Nicholls to H. Hase, 1 Apr., 15 Apr., 31 May, 15 July 1828.
-
-
-
-
29
-
-
84980234610
-
-
Taylors & Lloyds letter books, No. 323, 23 June 1828, 10 Apr. 1828, 31 July 1828. Although there is no direct evidence that the other private banks adopted this method, the letters hint that it had become common practice.
-
-
-
-
30
-
-
84980306141
-
-
Circular to Bankers, 12 Sept. 1828.
-
-
-
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31
-
-
84980274088
-
-
B.O.E. Corres. G. Nicholls to H. Hase, 13 Sept. 1828.
-
-
-
-
32
-
-
84980224982
-
-
Ibid. G. R. Elsey to G. Nicholls, 15 Sept. 1828.
-
-
-
-
33
-
-
84980261497
-
-
Taylors & Lloyds letter books, No. 323, 20 Sept. 1828, 27 Sept. 1828.
-
-
-
-
34
-
-
84980261514
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-
B.O.E. Corres. G. Nicholls to H. Hase, 20 Nov. and 31 Dec. 1828.
-
-
-
-
35
-
-
84980305827
-
-
Ibid. G. Nicholls to H. Hase, 24 Mar. 1829. A drawing account carried no interest on credit balances, so one would not expect the amount deposited to be large. The advantage lay in the entitlement of the holder of cheap remittance facilites.
-
-
-
-
36
-
-
84980282472
-
-
Ibid. G. Nicholls to H. Hase, 31 Dec. 1828.
-
-
-
-
37
-
-
84980261520
-
-
This estimate probably errs on the conservative side. On 1 Jan. 1815 Attwoods & Spooner had a circulation of £160,354 16s. od. (Miscellaneous Papers, Attwoods & Spooner Cash Book, 1 Jan. 1815) kept at Lloyds Bank, Birmingham.
-
-
-
-
38
-
-
84980234618
-
-
Attwoods & Spooner Cash Book, 1820–3. Attwood, when speaking in public claimed to have reduced the bank's circulation from £120,000 to £50,000, and this has been reported elsewhere. The exaggeration was typical of the man and his efforts to inflate the importance of his bank and his experience. (Circular to Bankers, no. 282, 22 Mar. 1833. B.O.E. Corres. G. Nicholls to T. Rippon, 21 Sept. 1829).
-
-
-
-
39
-
-
84980274101
-
-
Pressnell, Country Banking
-
-
-
-
40
-
-
84980305839
-
-
Second Report from the Select Committee on Banks of Issue, 1841 (P.P. 1841, V) Q. 1457. B.O.E. Corres. G. Nicholls to T. Rippon, 21 Sept. 1829. The circulation of Gibbins & Lovell was very small.
-
-
-
-
41
-
-
84980282485
-
-
Circular to Bankers, 24 Apr. 1829.
-
-
-
-
43
-
-
84980224713
-
-
Select Committee on the Bank of England Charter (P.P. 1831–2, VI), Q. 5731.
-
-
-
-
44
-
-
84980207268
-
-
B.O.E. Corres. G. Nicholls to T. Rippon, 24 May 1830. Nonetheless, the Birmingham branch continued to do the highest volume of discount among the eleven established (Clapham, Bank, 11, 115).
-
-
-
-
45
-
-
84980222361
-
-
Burgess was gleefully convinced that this rivalry accounted for many of the branch banks problems (Circular to Bankers, 29 Oct. 1830).
-
-
-
-
46
-
-
84980211058
-
-
Clapham
-
Bank
, vol.11
, pp. 116-120
-
-
-
47
-
-
84980207283
-
-
B.O.E. Corres. G. Nicholls to T. Rippon, 9 Apr. 1831.
-
-
-
-
48
-
-
84980306355
-
-
B.O.E. Corres. G. Nicholls to T. Rippon, 5 Apr. 1831. Given the special concessions allowed the Company by Taylors & Lloyds, the figure does not seem excessive. The cash balances held by Attwoods & Spooner at the branch bank fell from £5,003 on the last day of 1830 to £1,383 on 1 July 1831 and could be taken to indicate severe difficulty. Book‐keeping methods leave closer inspection difficult but other evidence offers some support in that the balances held were generally at £10,000 and rarely below £2,000. However, as a complication it must be noted that on 31 May, almost two months after the crash but before the July balance, Attwood deposited £5,000 in the account (G. Nicholls to T. Rippon, 31 May 1831).
-
-
-
-
49
-
-
84980224699
-
-
Circular to Bankers, 18 May 1831.
-
-
-
-
50
-
-
84980231537
-
-
B.O.E. Corres. G. Nicholls to T. Rippon, 31 May 1831. This loan service had become available by banking and commercial customers in October 1830.
-
-
-
-
51
-
-
84980222355
-
-
Ibid. G. R. Elsey to G. Nicholls, 22 and 23 Nov. 1831. The terms requested were those given to the Birmingham Banking Company. It is remarkable that the directors had allowed the informal arrangement to continue for so many months. The Bank was supposed to have a policy of active discrimination against issuing banks. Under Horsley Palmer, the rules began to be enforced more rigorously as he followed ideas which approximated those advocated by the ‘Currency School’. For an analysis of the Bank's use of theory see Collins, ‘Bank’, pp.
-
-
-
-
52
-
-
84980207255
-
-
B.O.E. Corres. G. R. Elsey to G. Nicholls, 23 Feb. 1832.
-
-
-
-
53
-
-
84980207250
-
-
Ibid. G. Nicholls to G. R. Elsey, 22 June 1832. The figures are of course estimates, the number 20 being arbitrarily assigned by Nicholls to the circulation of Taylors and Lloyds in 1830 and used as a base to express relationships. Attwoods & Spooner cash book shows that the ratios for 1830 and 1832 are reasonably accurate, but the major decline came not at the end of the former year but in the last few months of 1831.
-
-
-
-
54
-
-
84980305778
-
-
Circular to Bankers, 23 May, 1832.
-
-
-
-
55
-
-
84980282397
-
-
It was floated from the private bank of Loveli, Goode & Stubbs which was itself only three years old.
-
-
-
-
56
-
-
84980217525
-
-
The Bank of England's share of the discount business also fell sharply as the result of the opening of joint stock banks. See Table 1. Recovery thereafter was quite slow.
-
-
-
-
57
-
-
84980282396
-
-
R. S. Sayers, Lloyds Bank in the History of English Banking (Oxford, 1957), p.
-
-
-
-
58
-
-
84980305776
-
-
W. F. Crick and J. E. Wadsworth, A Hundred Yean of Joint Stock Banking (3rd edn.); R. E. Cameron, ‘England, 1750–1844’, In, Cameron, ed. Banking in the Early Stages of Industrialisation (1967), pp.
-
(1958)
, pp. 23-29
-
-
-
59
-
-
84980261469
-
-
Collins, ‘Bank’, pp. 158–9; Roberts, ‘Bank’, pp.
-
-
-
-
60
-
-
84980305812
-
-
Roberts, ‘Bank’, p. 242; W. C. T. King, History of the London Discount Market
-
(1936)
, pp. 58
-
-
-
61
-
-
84980217534
-
-
Woodhead is of the opinion that the first factor was the primary cause (Woodhead, ch. 2). However, my research into the activities of the Plymouth branch—moved from Exeter in 1834—which encountered similar conditions, casts doubt on this theory.
-
-
-
|
