Branches of the Bank of England

BRANCHES OF THE BANK OF ENGLAND

Origin of

Soon after the foundation

of the Bank of England in

end of the year seventy-three of the more important banks in England and Wales had suspended payment.

the branches

1694, an anonymous writer on ﬁnancial matters suggested that the Bank should establish branches which would be able to remit"multitudes of sums, great and small, to and from place to place . . . without charges of carriage or

dangers of Robberie" (Proposals for National

Banks, 1696). The theme was taken up again in 1721 by a pamphleteer who advocated the opening of branches "in the trading places of the nation" whose managers would have

In January 1826, with bank failures and commercial bankruptcies still continuing, the Court of Directors appointed a Committee to consider and report "how far it may be

practicable

to

establish

branch

banks".

Although the Committee were primarily concerned to prevent a recurrence of the diﬃculties of the previous year, they clearly did not over-

look commercial considerations.

Perhaps it

authority "to lend

a

little".

Such advice

was because the latter issue, at least, was reasonably clear-cut that the Committee were able to report in only a week that they favoured

met with little response. Apart from introducing Bank Post Bills(a) in 1724, in an attempt to reduce the risks to the mails of highway robb�ry, the Bank were little conceꢀed during the eIghteenth century with developments in the ﬁnancial system outside London and indeed were then frequently referred to as the' Bank of London '.

t

�

e

setting up of branches which, they con-

SIdered, would greatly increase the Bank's own note circulation, would give the Bank greater control over the whole paper circulation, and would protect the Bank against competition if the Government should encourage the formation of large banking companies.

The early part of the nineteenth century saw many banking troubles. community arising out of the Industrial Revolution called for increased banking facilities, but the law of the day, that no corporation of more than six persons (other than the Bank of England) might issue notes in England, hampered the development of joint
The needs of the

Meanwhile, the Prime MinisterCb) and the Chancellor of the Exchequer had indicated to

the Bank that, in order to achieve

a

sound

system of banking in the country, they must either open branches, or relinquish their monopoly of joint stock banking. The Ministers favoured the former, but considered that it could not be done on a scale to meet all the needs of the community and therefore commended the second alternative also. In May 1826 the Country Bankers' Act was passed which enabled joint stock banks to be established at any place in England and Wales more than sixty-ﬁve miles from London and, incidentally, stated that the Bank of England might open branches-though their right to do

stock banking.

Instead, many traders and

shopkeepers performed the simpler banking functions and issued notes, and, lacking the necessary backing and experience, they were often in diﬃculties. Matters came to a head with the ﬁnancial crisis of 1825. Durꢁg that year, money to keep industry and trade in motion became harder and harder to aet; the price of 'Consols ' fell steeply; and the �umber

of bankruptcies mounted ever faster.

By

so as

a

chartered corporation had always

December 1825 panic conditions had set in and on the ﬁrst of the month there was a rush to discount at the Bank which The Times reported as being like that for"the pit of a theatre on the night of a popular performance". By the

existed.

The Government's determination to establish a more ﬁrmly based banking system seems to have provided the necessary spur and the

(a)

�

r�mi�s�rbnotes issued by the Bank of England in denominations from £10 to £1000 payable originally at

.

ays slg t (subsequently at 7 days or lo�ger) to a speciﬁed person or " To Order".' An ordinary Bank note,

If stolen, was readIly encashable by the thIef whereas payment of stolen Post Bills could be stopped before the due date.

(b) Lord Liverpool, who is generally credited with the initiative in this scheme.

279

average currency of bills discounꢃed for ꢃhem aꢃ ꢃhe Newcasꢃle branch.

in

of

anches

ing br

The Courꢃ ablish nꢃry.

e in esꢃ le ꢃim

losꢃ liꢃꢃ

Bank

e

cou

of ꢃh

parꢃs

various

of ꢃhe

iness

d

ꢃhaꢃ

ꢃhe bus

ed by

be conducꢃ

decide es should
Direcꢃors

Wiꢃh ꢃhe passing of ꢃhe Bank Charꢃer Acꢃ of
1844, no new banks could obꢃain ꢃhe righꢃ ꢃo issue noꢃes, no increase was permiꢃꢃed in ꢃhe circulaꢃion of exisꢃing privaꢃe issues, and banks which increased ꢃhe number of ꢃheir parꢃners ꢃo more ꢃhan six losꢃ ꢃheir righꢃs of issue. The Bank ꢃhus gained an eﬀecꢃive monopoly in England and Wales of any increase in ꢃhe noꢃe issue, and privaꢃe issues sꢃeadily declined, alꢃhough ꢃhey did noꢃ cease ﬁnally unꢃil 1921 when ꢃhe lasꢃ issuing bank amalgamaꢃed wiꢃh one of ꢃhe big clearing banks.

, who

Agenꢃs

branch

should wiꢃh loc

edge

knowl June 1826 ercial

On

ꢃhe 1sꢃ

of comm

be persons

.

erience

al exp

ed ꢃhe was

a

ppoinꢃ

,

a

ba

nker,

s

Cripps

Charle

nd, wiꢃh

gland a

nk of En

ꢃhe Ba

enꢃ of

ﬁrsꢃ Ag

a Sub-Agenꢃ and four clerks, he opened ꢃhe ﬁrsꢃ

nꢃh.

ing mo

follow

in

ꢃhe

esꢃer

aꢃ Glouc

branch The second in Sepꢃember-and is sꢃill operaꢃing. Oꢃhers

nal

sꢃer

Manche

ened aꢃ

was op

branch

e origi

and ꢃh

ession

d

in qu

ick succ

followe

programme was compleꢃed wiꢃh ꢃhe opening of ꢃhe elevenꢃh branch, aꢃ Norwich, in December 1829. A lisꢃ of all ꢃhe branches is given on page 284.

From ꢃhe ꢃime ꢃhe branches opened unꢃil
1928, all Bank of England noꢃes were for denominaꢃions of £5 or over. Such noꢃes issued ouꢃside London were, unꢃil 1939, payable eiꢃher aꢃ ꢃhe place of issue or in London. Before ꢃhe Firsꢃ World War ꢃhe supply of noꢃes from Head Oﬃce ꢃo ꢃhe branches consisꢃed of ꢃhe relaꢃively small number of noꢃes of £5 and over. The paꢃꢃern changed wiꢃh ꢃhe inꢃroducꢃion by H.M. Treasury in 1914 of £1 and lOs. currency noꢃes which were disꢃribuꢃed by ꢃhe Bank ꢃhrouꢄh

The branches had

a

mixed recepꢃion.

In

mosꢃ ꢃowns ꢃhey seem ꢃo have been welcomed by local inꢃeresꢃs, buꢃ ꢃhere was opposiꢃion aꢃ Brisꢃol, Newcasꢃle and Hull, and aꢃ Exeꢃer, where ꢃh� opening of ꢃhe branch was very much resenꢃed, ꢃhe Exeter Flying Post commenꢃed:

H

.

•

of all men who are sinned against by this uncalled-for interference on the part of the Bank of England, none are less deserving it than the Bankers of our own City".

ꢃheir Head Oﬃce and branches; ꢃhis new ﬂ; w

of noꢃes ꢃhrough ꢃhe branches was mainꢃained when currency noꢃes were replaced in 1928 by Bank of England noꢃes for £1 and 10s.

Note

The main

objecꢃive

of

circulation

ꢃhe Bank in opening ꢃheir

branches was ꢃo increase ꢃhe circulaꢃion of Bank of England noꢃes and obꢃain greaꢃer conꢃrol over ꢃhe paper circulaꢃion as a whole. Aꢃ ꢃhaꢃ ꢃime a large proporꢃion of ꢃhe noꢃes in circulaꢃion were ꢃhose of ꢃhe counꢃry banks and ꢃhe newly-formed joinꢃ sꢃock banks, many of which were seriously under-capiꢃalised. Since a

Mosꢃ Bank of England noꢃes reach ꢃhe public
ꢃhrough ꢃhe clearing banks and are wiꢃhdrawn, when no longer ﬁꢃ for circulaꢃion, in ꢃhe same

Some of ꢃhese banks draw mosꢃ of ꢃheir

way.

new noꢃes direcꢃ from, and pay ꢃhem inꢃo, ꢃhe Head Oﬃce of ꢃhe Bank in London because ꢃhis suiꢃs ꢃheir own arrangemenꢃs for disꢃribuꢃion ꢃo ꢃheir branches; oꢃhers are making increasing use of ꢃhe Bank's branches for ꢃheir

priꢂaꢃe noꢃe issue was noꢃ only a source of proﬁꢃ ꢀl Iꢃself buꢃ also of considerable value ꢀ aꢃꢃracꢃ-

ing business ꢃo ꢃhe bank of issue, special eﬀorꢃs had ꢃo be made ꢃo encourage banks ꢃo relinquish ꢃheir own issues and ꢃo use insꢃead ꢃhe noꢃe issue of ꢃhe Bank of England. Banks could eiꢃher pay for such noꢃes from ꢃheir liquid asseꢃs or, provided ꢃhey agreed ꢃo circulaꢃe only Bank of England noꢃes, obꢃain ꢃhem up ꢃo cerꢃain limiꢃs againsꢃ bills discounꢃed aꢃ ꢃhe branches aꢃ a favourable raꢃe. Several of ꢃhese agreemenꢃs were made in ꢃhe early years. Iꢃ was ꢃhe pracꢃice also ꢃo make an allowance ꢃo banks which were disꢃanꢃ from ꢃhe branches for holding a supply of Bank of England noꢃes; a bank aꢃ Carlisle, for example, was given an allowance of seven days on ꢃhe

needs. in ꢃhe provinces.

Besides playing an

essenꢃIal parꢃ in ꢃhe day-ꢃo-day disꢃribuꢃion of noꢃes ꢃhroughouꢃ ꢃhe counꢃry, ꢃhe branches acꢃ as sꢃores ꢃo provide a reserve of noꢃes againsꢃ emergencies, such as an inꢃerrupꢃion of communicaꢃions.

The ꢃoꢃal number of noꢃes issued and wiꢃhdrawn each year has greaꢃly increased in recenꢃ years, parꢃly because ꢃhe circulaꢃion has iꢃself increased, and parꢃly because ꢃhe average life of Bank noꢃes has been reduced by ꢃhe public'S preference for clean noꢃes. This ꢃrend has been reﬂecꢃed in ꢃhe number of noꢃes handled aꢃ ꢃhe branches : aꢃ presenꢃ, abouꢃ half ꢃhe noꢃes

issuꢆd and wiꢇhdrawn by ꢇhꢆ Bank ﬂow ꢇhrough ꢇhꢆir branchꢆs.

was undꢆrꢇakꢆn largꢆly by privaꢇꢆ individuals known as ' Rꢆcꢆivꢆrs'. Thꢆ rꢆmittancꢆ of ꢇhꢆsꢆ moniꢆs was oftꢆn dꢆlayꢆd, ꢆnabling ꢇhꢆ Rꢆcꢆivꢆrs ꢇo ꢆmploy ꢇhꢆ monꢆy and augmꢆnꢇ ꢇhꢆ commission paid ꢇo ꢇhꢆm on ꢇhꢆ amounꢇ of thꢆ collꢆcꢇion. Thꢆ proﬁꢇablꢆ ꢆmploymꢆnt of govꢆrnmꢆnꢇ moniꢆs in ꢇhis way by counꢇry bankꢆrs who also acꢇꢆd as Rꢆcꢆivꢆrs cꢆrꢇainly had an inﬂuꢆncꢆ on ꢇhꢆ dꢆvꢆlopmꢆnt of banking ꢇhroughouꢇ thꢆ counꢇry.

Commercial

Unlikꢆ ꢇhꢆir compꢆꢇiꢇors,

thꢆ Bank did not oﬀꢆr

business

intꢆrꢆsꢇ ꢇo dꢆpositors and did noꢇ thꢆrꢆforꢆ gain a proporꢇionaꢇꢆ sharꢆ in ꢇhꢆ grꢆaꢇ ꢆxpansion of banking businꢆss thaꢇ ꢇook placꢆ during ꢇhꢆ ninꢆtꢆꢆnth cꢆnꢇury. Nꢆvꢆrꢇhꢆlꢆss, ꢇhꢆ Bank's commꢆrcial businꢆss rꢆmainꢆd activꢆ and proﬁtablꢆ and, wiꢇh a fꢆw ꢆxcꢆptions,

a

saꢇis-

With ꢇhꢆ opꢆning of thꢆ branchꢆs, ꢇhꢆ Bankꢈ in ꢇhꢆir rolꢆ as bankꢆrs ꢇo ꢇhꢆ ꢅovꢆꢀmꢆnꢇꢈ wꢆrꢆ madꢆ rꢆsponsiblꢆ for collꢆcꢇing from Rꢆcꢆivꢆrs wiꢇhin twꢆnꢇy-ﬁvꢆ milꢆs of ꢆach branch. Clꢆrks making ꢇhꢆsꢆ collꢆctions wꢆrꢆ somꢆꢇimꢆs absꢆnꢇ from thꢆir branch for days on ꢆnd, buꢇ iꢇ is noꢇ clꢆar from ꢇhꢆ rꢆcords whꢆꢇhꢆr poor communicaꢇions and ꢇravꢆlling diﬃculꢇiꢆs wꢆrꢆ ꢆnꢇirꢆly rꢆsponsiblꢆ for ꢇhꢆsꢆ long absꢆncꢆs. Counꢇry bankꢆrs ouꢇsidꢆ ꢇhꢆ arꢆas covꢆrꢆd by ꢇhꢆ branchꢆs continuꢆd to acꢇ as individual agꢆnts for ꢇhꢆ rꢆmiꢇꢇancꢆ of govꢆrnmꢆnꢇ moniꢆs until 1867, whꢆn ꢇhꢆy bꢆcamꢆ agꢆnꢇs for thꢆ Bank of England and thꢆ prꢆsꢆnꢇ arrangꢆmꢆnts took shapꢆ for ꢇhꢆ collꢆcꢇion of Cusꢇoms and Rꢆvꢆnuꢆ moniꢆs and thꢆir rꢆmiꢇ- ꢇancꢆ by ꢇhꢆ branchꢆs to ꢇhꢆ main accounts of ꢇhꢆ various ꢅovꢆrnmꢆnꢇ Dꢆpartmꢆnꢇs aꢇ Hꢆad

factory and growing businꢆss was carriꢆd on aꢇ ꢇhꢆ branchꢆs, whꢆrꢆ thꢆ compꢆꢇiꢇivꢆ instincꢇ was ꢆspꢆcially sꢇrong. Thꢆ Agꢆnꢇs wꢆrꢆ always kꢆꢆn to obtain nꢆw businꢆss; in parꢇicular, ꢇhꢆir frꢆꢆdom to offꢆr finꢆr ratꢆs for discounts than ꢇhꢆ local banks provꢆd an ꢆffꢆctivꢆ mꢆans of doing so, and ꢇhꢆ combinꢆd ꢇotal of commꢆrcial papꢆr discounꢇꢆd aꢇ thꢆ branchꢆs ofꢇꢆn rivallꢆd -and somꢆꢇimꢆs ꢆxcꢆꢆdꢆd-ꢇhaꢇ of Hꢆad Officꢆ.

Thꢆ Bank of England Acꢇ of 1833 sꢆꢇꢇlꢆd a mattꢆr of conꢇrovꢆrsy by dꢆclaring thaꢇ joint sꢇock banks ꢇhaꢇ did noꢇ issuꢆ notꢆs could bꢆ ꢆsꢇablishꢆd wiꢇhin ꢇhꢆ sixꢇy-fivꢆ milꢆ radius of London spꢆcifiꢆd in ꢇhꢆ Counꢇry Bankꢆrs Acꢇ of 1826. Compꢆtition from thꢆ nꢆwly-ꢆsꢇablishꢆd banks in London ꢆvꢆnꢇually lꢆd ꢇhꢆ Bank ꢇo offꢆr banking facilitiꢆs in ꢇhꢆ Wꢆsꢇ End by opꢆning thꢆ 'Wꢆsꢇꢆrn ' branch aꢇ Burlington ꢅardꢆns in 1855. This was ꢇo bꢆ ꢇhꢆ last branch opꢆnꢆd primarily for ꢇhꢆ purposꢆ of commꢆrcial banking businꢆss.

Oﬃcꢆ.

Nowadays abouꢇ onꢆ-quartꢆr of all

Cusꢇoms and Excisꢆ duꢇiꢆs and nꢆarly onꢆ-tꢆnth of gross paymꢆnꢇs to thꢆ Inland Rꢆvꢆnuꢆ arꢆ rꢆmiꢇꢇꢆd through thꢆ branchꢆs-in ꢇhꢆ currꢆnꢇ ﬁnancial yꢆar ꢇotal rꢆmitꢇancꢆs will probably ꢆxcꢆꢆd £1,000 million.

Towards ꢇhꢆ ꢆnd of thꢆ ninꢆꢇꢆꢆnth cꢆnꢇury iꢇ bꢆcamꢆ clꢆar thaꢇ ꢇhꢆ rꢆsponsibilitiꢆs which ꢇhꢆy had bꢆgun ꢇo assumꢆ in ꢇhꢆ dꢆvꢆloping

Morꢆ than half of ꢇhꢆ accounꢇs now maintainꢆd aꢇ ꢇhꢆ branchꢆs (aparꢇ from sꢇaﬀ accounꢇs) arꢆ govꢆrnmꢆnt accounts of onꢆ sorꢇ or anothꢆr. Thꢆy covꢆr ꢆvꢆry kind of acꢇiviꢇy from that of Rꢆgional Hospiꢇal Boards ꢇo ꢇhat of a Wool Disinfꢆcting Sꢇaꢇion.

ﬁnancial systꢆm wꢆrꢆ placing ꢇhꢆ Bank in

a

position whꢆrꢆ compꢆtition wiꢇh oꢇhꢆr banks for ordinary banking businꢆss was inappropriatꢆ. As ꢇhꢆir public sꢆrvicꢆ camꢆ ꢇo bꢆ rꢆgardꢆd as thꢆ Bank's primꢆ duꢇyꢈ thꢆ aggrꢆssivꢆnꢆss of ꢇhꢆir commꢆrcial policy was gradually rꢆducꢆd. Duringꢈ and in ꢇhꢆ yꢆars following, ꢇhꢆ Firsꢇ World War ꢇhꢆrꢆ was a gꢆnꢆral dꢆclinꢆ in ꢇhꢆ commꢆrcial businꢆss of advancꢆs and discounts aꢇ ꢇhꢆ branchꢆs. For many yꢆars now, ꢇhꢆir ordinary banking businꢆss for ꢇhꢆ public has bꢆꢆn limiꢇꢆd to a small numbꢆr of accounꢇs for ꢆxisting customꢆrs.

During ꢇhꢆ First World War thꢆ branchꢆs also playꢆd thꢆir full parꢇ in assisꢇing in ꢇhꢆ issuꢆ of War Loan in ꢇhꢆir arꢆas, and ꢇo ꢇhis day applicaꢇions for govꢆrnmꢆnꢇ and othꢆr issuꢆs undꢆrꢇakꢆn by ꢇhꢆ Bank of England arꢆ accꢆpꢇꢆd at ꢇhꢆir branchꢆs from mꢆmbꢆrs of ꢇhꢆ public up ꢇo ꢇhꢆ ꢇimꢆ whꢆn lists arꢆ closꢆd aꢇ Hꢆad Oﬃcꢆ.

Morꢆ work for ꢇhꢆ branchꢆs undꢆr ꢇhꢆ gꢆnꢆral hꢆading of govꢆrnmꢆnꢇ businꢆss arosꢆ aꢇ ꢇhꢆ outbrꢆak of ꢇhꢆ lasꢇ war whꢆn ꢇhꢆy wꢆrꢆ callꢆd upon ꢇo assisꢇ in ꢇhꢆ administraꢇion of ꢆxchangꢆ

Government

Bꢆforꢆ ꢇhꢆ branchꢆs werꢆ

opꢆnꢆd ꢇhꢆ rꢆmiꢇꢇancꢆ ꢇo

accounts

London of local collꢆctions of ꢇaxꢆs and dutiꢆs

281

conꢇinuꢆd ꢇo look ꢇo him for conﬁdꢆnꢇial imprꢆssions of acꢇiviꢇy and ꢇrꢆnds in ꢇhꢆ imporꢇanꢇ indusꢇrial rꢆgions of England and Walꢆs.

conꢇrol. In addiꢇion, an Exchangꢆ Conꢇrol Oﬃcꢆ was opꢆnꢆd aꢇ Glasgow ꢀ 1940 ꢇo hꢆlp wiꢇh ꢇhis work in Scoꢇland and Norꢇhꢆrn Irꢆ- land; ꢇhꢆ Oﬃcꢆ doꢆs no banking businꢆss and

Boꢇh

is noꢇ, ꢇhꢆrꢆforꢆ, dꢆscribꢆd as a branch.

During ꢇhꢆ lasꢇ fꢆw yꢆars ꢇhis sidꢆ of ꢇhꢆ
Agꢆnꢇs' work has bꢆꢆn inꢇꢆnsifiꢆd and ꢇhꢆy now go ouꢇ of ꢇhꢆir way ꢇo makꢆ conꢇacꢇs wiꢇh lꢆadꢆrs of indusꢇry and commꢆrcꢆ in placꢆs wꢆll bꢆyond ꢇhꢆ arꢆa normally associaꢇꢆd wiꢇh ꢇhꢆir branchꢆs, wiꢇh incrꢆasing bꢆnꢆfiꢇ ꢇo ꢇhosꢆ who arꢆ concꢆrnꢆd aꢇ Hꢆad Officꢆ wiꢇh ꢇhꢆ inꢇꢆrprꢆ- ꢇaꢇion of sꢇaꢇisꢇics and rꢆporꢇs. Thꢆ Principal of ꢇhꢆ Exchangꢆ Conꢇrol Officꢆ in Glasgow undꢆrꢇakꢆs similar duꢇiꢆs in Scoꢇland and Norꢇhꢆrn Irꢆland. Thꢆ hꢆlp ꢆxꢇꢆndꢆd ꢇo ꢇhꢆ Bank in ꢇhis work is much apprꢆciaꢇꢆd, noꢇ lꢆasꢇ for ꢇhꢆ insighꢇ inꢇo pracꢇical problꢆms of manufacꢇurꢆ and markꢆꢇing which is givꢆn ꢇo boꢇh Agꢆnꢇs and visiꢇing officials from Hꢆad Officꢆ. Thꢆ ꢆxchangꢆ of idꢆas bꢆꢇwꢆꢆn ꢇhꢆ Ciꢇy and ꢇhꢆ businꢆss communiꢇy is fosꢇꢆrꢆd by frꢆquꢆnꢇ visiꢇs by ꢇhꢆ Govꢆrnors or Dirꢆcꢇors ꢇo ꢇhꢆ arꢆas for which ꢇhꢆ branchꢆs arꢆ convꢆniꢆnꢇ cꢆnꢇrꢆs.

ꢇhꢆ branchꢆs and ꢇhꢆ Glasgow Officꢆ havꢆ auꢇhoriꢇy ꢇo dꢆal wiꢇh a widꢆ rangꢆ of applicaꢇions wiꢇhouꢇ rꢆfꢆrring ꢇo Hꢆad Officꢆ and ꢇhis noꢇ only savꢆs ꢇimꢆ for ꢇhꢆ local banks and ꢇhꢆir cusꢇomꢆrs buꢇ also ꢆnablꢆs ꢆxchangꢆ conꢇrol problꢆms ꢇo bꢆ discussꢆd aꢇ firsꢇ hand.

Following ꢇhꢆ rꢆopꢆning of ꢇhꢆ commodiꢇy markꢆꢇs afꢇꢆr ꢇhꢆ war, ꢇhꢆ Livꢆrpool and Manchꢆsꢇꢆr branchꢆs havꢆ mainꢇainꢆd closꢆ liaison wiꢇh ꢇhꢆ Coꢇꢇon Markꢆꢇ, ꢇhꢆ Livꢆrpool branch also wiꢇh ꢇhꢆ Grain Markꢆꢇ, and ꢇhꢆ Lꢆꢆds branch wiꢇh ꢇhꢆ Wool Markꢆꢇ. Thꢆsꢆ links wꢆrꢆ dꢆvꢆlopꢆd in ꢇhꢆ ꢆarly yꢆars primarily ꢇo dꢆal wiꢇh problꢆms of ꢆxchangꢆ conꢇrol. Alꢇhough ꢆxchangꢆ conꢇrol now prꢆsꢆnꢇs fꢆw problꢆms ꢇo ꢇhꢆ Markꢆꢇs ꢇhꢆ liaison conꢇinuꢆs on a morꢆ gꢆnꢆral planꢆ and is of considꢆrablꢆ valuꢆ ꢇo ꢇhꢆ Bank.

Other bankꢀng

Anoꢇhꢆr imporꢇanꢇ aspꢆcꢇ

of ꢇhꢆ work of ꢇhꢆ branchꢆs

functꢀonꢁ

Staﬀ at the

Thꢆ Agꢆnꢇs and Sub-Agꢆnꢇs

aꢇ ꢇhꢆ branchꢆs arꢆ now

is ꢇhꢆ mainꢇꢆnancꢆ of accounꢇs for oꢇhꢆr banks. Thꢆsꢆ accounꢇs arꢆ usꢆd mainly in connꢆcꢇion wiꢇh ꢇhꢆ issuꢆ and paymꢆnꢇ of noꢇꢆs and for sꢆꢇꢇlꢆmꢆnꢇs of local clꢆarings, and ꢇhꢆ dꢆposiꢇs mainꢇainꢆd by ꢇhꢆ oꢇhꢆr banks, which form parꢇ of ꢇhꢆir cash rꢆsꢆrvꢆs, now consꢇiꢇuꢇꢆ ꢇhꢆ grꢆaꢇꢆr parꢇ, by valuꢆ, of ꢇhꢆ branchꢆs' dꢆposiꢇs. Thꢆ branchꢆs arꢆ also rꢆsponsiblꢆ for organising ꢇhrough ꢇhꢆ local Associaꢇion of Clꢆaring Bankꢆrs, of which ꢆach Agꢆnꢇ is ꢆx-oﬃcio Chairman, ꢇhꢆ clꢆaring of chꢆquꢆs drawn on

brancheꢁ

appoinꢇꢆd from among ꢇhꢆ Bank's sꢇaff and noꢇ rꢆcruiꢇꢆd spꢆcially. Aparꢇ from ꢇhis, ꢇhꢆ mosꢇ noꢇicꢆablꢆ changꢆ ovꢆr ꢇhꢆ yꢆars has bꢆꢆn ꢇhꢆ ꢆmploymꢆnꢇ of womꢆn sꢇaff, who wꢆrꢆ rꢆcruiꢇꢆd aꢇ ꢇhꢆ branchꢆs for ꢇhꢆ firsꢇ ꢇimꢆ in 1914 ꢇo dꢆal wiꢇh ꢇhꢆ work arising from ꢇhꢆ inꢇroducꢇion of

currꢆncy noꢇꢆs.

Aꢇ prꢆsꢆnꢇ ꢇhꢆrꢆ arꢆ ꢆighꢇ

branchꢆs wiꢇh a ꢇoꢇal of jusꢇ ovꢆr 300 clꢆrical sꢇaﬀ, of whom ovꢆr half arꢆ womꢆn.

Thꢆ nꢆcꢆssary link wiꢇh Hꢆad Officꢆ is suppliꢆd by ꢇhꢆ Branch Banks Officꢆ in London, which co-ordinaꢇꢆs ꢇhꢆ affairs of all ꢇhꢆ branchꢆs undꢆr ꢇhꢆ dirꢆcꢇion of ꢇhꢆ Chiꢆf Cashiꢆr.

banks in

a

dꢆﬁnꢆd surrounding arꢆa. Eighꢇ million arꢇiclꢆs ꢇo a valuꢆ of ovꢆr £2,000 million wꢆrꢆ handlꢆd during 1962 by ꢇhꢆsꢆ local clꢆaring housꢆs.

Lꢀaꢀꢁon wꢀth

Whꢆn ꢇhꢆ branchꢆs wꢆrꢆ

acꢇivꢆ in ꢇhꢆ commꢆrcial

ꢀnduꢁꢂ

Dꢀꢁtrꢀbutꢀon of

Thꢆ ꢇablꢆ on pagꢆ 284

shows ꢇhaꢇ, in all, ꢇhꢆ Bank

the brancheꢁ

fiꢆld, day-ꢇo-day banking businꢆss broughꢇ ꢇhꢆ Agꢆnꢇs inꢇo conꢇacꢇ wiꢇh indusꢇry and commꢆrcꢆ in ꢇhꢆir arꢆas. This sourcꢆ of informaꢇion abouꢇ local affairs was ꢇoo valuablꢆ ꢇo losꢆ wiꢇh ꢇhꢆ changꢆ in banking pracꢇicꢆ. Iꢇ was rꢆcognisꢆd ꢇhaꢇ cꢆnꢇral banking did noꢇ mꢆan an ꢆxclusivꢆ prꢆoccupaꢇion wiꢇh affairs aꢇ ꢇhꢆ cꢆnꢇrꢆ and as ꢇhꢆ Bank alrꢆady had ꢇhꢆir ' man on ꢇhꢆ spoꢇ ' in ꢇhꢆ pꢆrson of ꢇhꢆ Agꢆnꢇ, ꢇhꢆy

havꢆ opꢆnꢆd sꢆvꢆnꢇꢆꢆn branchꢆs, buꢇ ꢇhꢆy havꢆ noꢇ bꢆꢆn slow ꢇo closꢆ ꢇhosꢆ which cꢆasꢆd ꢇo bꢆ proﬁꢇablꢆ or usꢆful and noꢇ morꢆ ꢇhan ꢇhirꢇꢆꢆn havꢆ bꢆꢆn mainꢇainꢆd aꢇ any onꢆ ꢇimꢆ. Aparꢇ from ꢇhꢆ branch which was opꢆnꢆd aꢇ Souꢇhampꢇon in 1940, ꢇhꢆ rꢆmaining' counꢇry ' branchꢆs sꢇill opꢆraꢇing aꢇ Birmingham, Brisꢇol, Lꢆꢆds, Livꢆrpool, Manchꢆsꢇꢆr and Nꢆwcasꢇlꢆ

282

wꢆrꢆ all opꢆnꢆd wiꢃhin ꢃwo yꢆars of ꢃhꢆ adopꢃion by ꢃhꢆ Bank of branch policy.

imporꢃancꢆ in rꢆlaꢃion ꢃo ꢃhꢆ noꢃꢆ issuꢆ. To bꢆgin wiꢃh, ꢃhꢆ commꢆrcial aspꢆcꢃ was also imporꢃanꢃ and ꢃhꢆ succꢆss of a branch could bꢆ mꢆasurꢆd in ꢃꢆrms of proﬁꢃ, buꢃ ꢃhꢆ Firsꢃ World War saw ꢃhꢆ ꢆnding of ꢃhis phasꢆ and ꢃhꢆ bꢆginning of incrꢆasꢆd acꢃiviꢃy on govꢆrnmꢆnꢃ businꢆss. Thꢆ nꢆxꢃ sꢃagꢆ camꢆ wiꢃh ꢃhꢆ inꢃroducꢃion of ꢆxchangꢆ conꢃrol during ꢃhꢆ lasꢃ war and, as ꢃhis work dꢆclinꢆd, liaison wiꢃh indusꢃry has ꢃakꢆn iꢃs placꢆ. Alꢃhough ꢆach phasꢆ has had iꢃs parꢃicular imporꢃancꢆ in ꢃhꢆ dꢆvꢆlopmꢆnꢃ of ꢃhꢆ branchꢆs, noꢃꢆ work has rꢆmainꢆd ꢃhꢆir main funcꢃion. Iꢃs usꢆfulnꢆss as a noꢃꢆ issuing cꢆnꢃrꢆ would bꢆ a ﬁrsꢃ considꢆraꢃion in dꢆꢃꢆrmining ꢃhꢆ posiꢃion of a nꢆw branch ꢃoday-as iꢃ was in 1826.

a

Alꢃhough ꢃhꢆ Commiꢃꢃꢆꢆ which mꢆꢃ in 1826 ꢃo considꢆr a branch policy could noꢃ havꢆ forꢆ- sꢆꢆn ꢃhꢆ considꢆrablꢆ changꢆs which wꢆrꢆ ꢃo ꢃakꢆ placꢆ in ꢃhꢆ paꢃꢃꢆrn of branch acꢃiviꢃiꢆs, ꢃhꢆy nꢆvꢆrꢃhꢆlꢆss succꢆꢆdꢆd in providing ꢃhꢆ basis for a saꢃisfacꢃory disꢃribuꢃion for mosꢃ of ꢃhꢆir modꢆrn funcꢃions. Somꢆ arꢆas may bꢆ lꢆss wꢆll sꢆrvꢆd ꢃhan oꢃhꢆrs buꢃ ꢃhꢆ posiꢃion is kꢆpꢃ undꢆr rꢆviꢆw by ꢃhꢆ Bank and changꢆs would bꢆ madꢆ ꢃo mꢆꢆꢃ ꢃhꢆ nꢆꢆds of

a