Happy 125th anniversary

HSBC Archives Please join us in wishing our Burnley branch a very happy HSBC has an international pedigree which is unique. Many of its principal companies opened for business over a century ago and they have a history which is rich in variety and achievement. 125th anniversary

HSBC Archives are among the most important and heavily used bank archives in the world. The archivists are responsible for the collection and management of the records, which span more than two centuries of financial and international history.

Our collection The archives contain historical records from The archivists are able to carry out research many of the banks which make up the modern in response to specific enquiries. Typical HSBC Group. Types of records include: questions include:

Board minute books  My grandfather worked for the bank. Annual reports  Can you give me any details about his Staff records career? Photographs of branches, staff and  How long has HSBC been operating in local scenes Malaysia? Adverts and promotional videos  When did Midland Bank become part of the HSBC Group?  Can you provide images for publications and film productions?  Can you tell me more about the history of my local branch? Contact us Email: history@.com

Please write to us at HSBC Archives, Level 41, 8 Canada Square, E14 5HQ, or visit www.hsbc.com/history.

HSBC Archives is open to researchers Monday to Thursday. Admittance is by appointment only. www.hsbc.com/history

Issued by HSBC Archives, part of HSBC Group Management Services Ltd Further Information: HSBC Archives, 8 Canada Square, London, E14 5HQ

01/18 ©HSBC UK 2018. All Rights Reserved. Happy 125th anniversary Did you know

The Story of our Burnley branch

2019 marks the 125th anniversary of Did you know

HSBC’s Burnley branch  The Hongkong and Shanghai Banking  In Hamadan, Iran the manager of the Imperial Corporation was the inspiration of Bank of Persia branch (now HSBC Bank Thomas Sutherland, then the Middle East) turned his branch into a famine The Burnley branch was opened by the Preston and 16 sub-branches across the North-West. Banking Company on Chancery Street in January William Howard became the branch’s first Superintendent of the Peninsular and relief centre when fighting, bad weather and 1894. With support from local manufacturers manager upon leaving Midland Bank (now HSBC Oriental Steam Navigation Company. speculation caused major food shortages in and merchants, the bank itself had been formed UK) to take up the role. Having seen the branch northern Iran in 1918. by Royal Charter 50 years earlier in April 1844 in through its first two months on his own, Howard  HSBC’s hexagon symbol was developed order to meet the growing demand for robust recruited Charles Sutcliffe in March 1894 to work from the bank’s house flag: a white  In 1952 the Manhattan Savings Bank credit facilities as the town became an important alongside him as a junior member of staff. rectangle divided diagonally to produce (later part of HSBC) opened a new office hub in the cotton and weaving industry. The a red hourglass shape. Many Hong Kong on Madison Avenue. The bank did not The Burnley branch set off to a roaring start and rapidly expanding local textile industry fuelled the companies established in the nineteenth want to spend huge amounts of money on was taking record profits – however the branch early business of the Preston Banking Company, century were set up by Scottish expatriates, advertising and media coverage. So instead would only be part of the Preston Banking as much as it was supported by it. By 1850, and like many other company flags of that the bank’s President hit upon the idea of Company for a matter of months. The bank’s when the bank’s paid-up capital was £100,000 era, the design is thought to be based on the attracting potential customers through total deposits had now reached £1.8m and its and deposits totalled £300,000, it began to Scottish flag, the cross of St Andrew. the front door with in-bank entertainment. paid-up capital totalled £200,000. With Midland expand outside of Preston with a new branch Performers included cartoonists and Bank seeking representation in the industrial opened in Lancaster. However despite the bank’s  HSBC has been issuing bank notes in magicians as well as the installation of regions of Lancashire, the Preston Banking initial successes, it was heavily impacted by Hong Kong since its inception in 1865 comfortable sofas in the banking hall. Company, which by this time was the twentieth the cotton famine which struck North America and has also played a pioneering role in Huge queues quickly formed around the largest provincial bank, was acquired by Midland in the early 1860s, as many of its customers introducing paper money into some of the building and 100,000 people visited the Bank in July 1894. Burnley became part of the relied on imports of raw cotton from this region. latter’s rapidly expanding branch network and countries in which it operates. bank in just two days. Numerous local firms were dependent upon the Howard found himself a Midland Bank employee bank during the cotton industry depression and once again, not long after pursuing a new  Sir Thomas Jackson was the chief manager  2005 saw HSBC become the first carbon-neutral the bank was in turn heavily impacted by their banking career elsewhere! of the bank at the turn of the twentieth bank in the world, with its global operations failure. With £400,000 locked up in loans to two century and helped to develop HSBC into contributing zero net carbon dioxide into the failed businesses, the Preston Banking Company By 1898, when the small team of two expanded the foremost financial institution in atmosphere. suspended payments in 1866. to four members of staff, Howard resigned during that period. He was so well known as manager and was succeeded by Edwy The bank made huge efforts to revitalise its across Asia – a letter addressed simply ‘T J, Dunderdale, who had transferred from the Hull business. Attempts to restore its accounts in the China’ was sent from London for a bet – and branch. Tragically, Dunderdale died just one year 1870s ensured renewed success, and by 1880 subsequently arrived safely on his desk at later in 1899, and the position of manager was deposits once again exceeded £1 million. By HSBC without delay or question. assumed by Henry Dewse. By 1904, Robert 1894 when the Burnley branch was opened, the Dixon had taken over this role and the little Preston Banking Company had 10 full branches branch continued to thrive. As the number of A Global History The Story of our Burnley branch

staff and customers continued to grow, a new of staff. Herbert Eastwood was recruited to the premises for the branch was deemed necessary role of manager in 1935 and led the branch A Global History and in the spring of 1912, the decision was made through the turbulent years of the Second World to move from the original building on Chancery War. Like Dixon and Airey before him, Eastwood Street to a new office designed by the architects was faced with the challenge of retaining Woolfall and Eccles. Located on the corner of staff as eight men enlisted to join HM Forces. Manchester Road, the spacious banking hall and To overcome this hurdle, in the early 1940s, tasteful apple-coloured décor of the new branch four temporary members of male staff were were described in detail by the Burnley Express employed along with eight female colleagues. in March 1912. Two of these women had in fact joined the bank during the First World War, continuing as At the outbreak of the First World War in 1914, permanent staff, until one left in January 1943 to Dixon was still working as branch manager join the Armed Forces. Happily, all the men and before being succeeded by James Airey in 1916. women who enlisted during this war returned Like Midland managers across the country, they safely home to join their colleagues in Burnley. faced significant staff shortages as men left their branches to enlist with the Armed Forces. Banking was still heavily focused inside the Of the seven men who left Burnley, six happily branch in the 1950s, with the vast majority of returned to re-join their colleagues after the war. transactions conducted onsite rather than in Sadly, they would not welcome their colleague centralised processing centres. As business at Septimus Waugh back to the branch. Septimus the busy branch continued to grow, the shop was born on 8 February 1888 in Brampton to next door was acquired to allow extension of James and Catherine Waugh. He was introduced the premises. Banking records continued to to the Brampton branch of Midland Bank by his be paper-based, with staff relying on manual father in December 1903, at the age of 16. He typewriters, ledger-posting machines and Your branch’s history forms part of HSBC’s reserves and to a timely, temporary, move of began his career on a modest starting salary hand-written reference cards. As the twentieth global heritage. HSBC is one of the largest head office to London. In the changed post- as a junior, before joining the Burnley branch in century progressed, life at the Burnley branch banking and financial services organisations war world the bank sought new opportunities 1911 and progressing up the ranks. Septimus gradually began to transform, especially as new in the world and has a unique international for expansion as its China market contracted. left Burnley and entered into the Armed Forces technologies were introduced during the 1960s pedigree. The bank opened its doors for Acquisitions in the 1950s in the Middle East in September 1914, eventually rising to the and the accounts at Burnley were computerised business in Hong Kong in 1865. It focused on and India began the transformation of HSBC rank of Sergeant of the 9th Battalion Yorkshire on 20 May 1971. the finance of international trade and quickly into a truly international business - the purchase Regiment. He had been stationed in France Today Burnley’s customers continue to access established a network of branches in ports of Midland Bank in the UK in 1992 signalled since 1916 and died in Flanders on 7 June 1917, a wide variety of services in the branch, from having been killed by a shell as he went over throughout Asia and into and the US. Its a step change in this process with the move of discussing mortgage options to opening a the top of the trenches. A report in a local paper reputation grew as it began providing financial its Head Office to London. In the twenty-first savings account. Transactions, such as cashing noted that, “Septimus was beloved by all and the support and loans to Asian countries, and by century HSBC’s diversification and its core values cheques and arranging for the payment of bills, news of his heroic death made every one of us the early twentieth century it was the foremost of financial strength and stability have stood it can still be carried out at the counter or via feel as if we had lost a brother, he is a great loss financial institution in the East. The Second in good stead in the recent global turbulence express self-service machines, whilst the advent to the Battalion.” World War saw the majority of branches in economies and markets, and it remains well of mobile, online and telephone banking offers occupied but the bank survived thanks to its placed to deal with an uncertain world. In the inter-war period, the branch continued to even more choice when it comes to managing thrive and expanded from eight to 10 members money in the twenty-first century. Happy 125th anniversary A History of HSBC UK

Post-war innovation The branch The bank’s post-war history is dominated by innovation in the range of banking services experience it provided. Gift Cheques, introduced in 1955 were the first of their kind in the UK. Midland also became the first British bank to advertise “Be liberal in your lending and meet every on television in 1956. Soon afterwards, in At the time of the branch's opening in 1894, legitimate demand you can” 1958, it became the first bank to offer non-

banking would have been a markedly different Sir Edward Holden, Chairman, to his secured personal loans which added to its customer experience to what we have come branch managers upon the outbreak of the reputation as a trend setter. This innovation to expect today. Opening hours were designed First World War in 1914. was to continue for the rest of the century, to coincide with local market days. Very another example coming in 1989 when the few branches began to open daily until the bank launched .It was the UK’s first mid-twentieth century. On entering the branch, The world’s largest bank telephone bank with no branches. It offered customers would have approached a line of By the end of the First World War, in which a full range of banking products and services clerks standing behind a counter surrounded 40% of the bank's workforce served in the from current accounts to mortgages through by large ledger books that would be used to armed forces, Midland's customers had access its telephone lines which were always open, record the day’s business. to over 1,400 branches, The bank was also 24 hours a day, 365 days a year. beginning to become a force in international The range of services tended to be limited banking and developed into the biggest to providing businesses with advice and bank in the world at that time. In the 1920s “We begin the new year small loans; receiving deposits; authorising and 1930s Midland sought new business by in a better position, our constituency is growing, and withdrawals and cashing cheques. At this time if expanding the branch network, especially in there is no doubt that we a customer wanted to make a withdrawal from fast-growing metropolitan and suburban areas. shall continue to grow as their account, their signature would be taken and The Second World War halted this growth and we have done in the past.” carefully checked in several ledger books which brought widespread destruction to the branch Manager of Harrogate held a copy of every single customer’s signature. network, with over 1,350 reports of damage. branch reporting to Head Office in 1887. At the end of every day all the various books Part of a global group would be meticulously inspected to ensure that In 1992 HSBC Holdings plc acquired full every penny that came into and left the branch ownership of Midland Bank, in one of the was accounted for. This would sometimes mean largest acquisitions in banking history. Midland that staff had to stay in the branch many hours was renamed HSBC Bank plc in 1999. In 2015 a after closing time if the manager was not new brand – HSBC UK – was announced and the satisfied that the day’s accounts added up. bank celebrated the ground-breaking ceremony for a new headquarters to be built in , where the story had begun back in 1836. Happy 125th anniversary A remarkable founder

A History of HSBC UK A remarkable founder

The early years A regional powerhouse The foundation of Midland Bank was down to the Birmingham was a remarkable hive of The bank acquired its first branch in 1851 efforts of one 28 year old Bank of clerk, business enterprise in the early nineteenth when it purchased the Old Bank. Charles Geach. Geach was a remarkable individual century. The region was the homeland of the Some years later, when an industrial and financial whose story is as notable as the history of the industrial revolution, with Birmingham as its depression overtook Birmingham in 1878-79, bank he founded. In 1831 the had centre of employment and finance. Initially the bank decided to broaden its customer base promoted Geach to the post of Second Inspector the banking needs of the confident business and began to open new branches and acquire at their branch in Birmingham. However, he soon community were served by private firms of rival banks across the region. This expansion became frustrated by the lack of meritocracy and bankers but, especially after the banking crisis of continued in the 1890s when the directors moved opportunity within the organisation. He already had 1825-26, these firms were desperately seeking Midland’s headquarters to London. Under the good contacts in the local business community a more secure financial platform provided direction of Edward Holden, who would later as he had assisted in the establishment of a by a joint-stock bank (one that is owned by become managing director and chairman, the local joint stock bank, the Birmingham Town and its shareholders as opposed to the bankers bank conducted a succession of amalgamations. District Bank, in 1836. When this bank failed to themselves). It was in these demanding appoint Geach as its manager, he joined forces with conditions that the Midland Bank first opened another group of businessmen and founded Midland for business in Union Street, Birmingham, on Bank later the same year. On this occasion, he was Monday 22 August 1836. appointed as the bank’s manager.

The early decades of Midland’s life were a Geach’s business acumen was widely regarded testing period in English banking with several to have helped the young bank to survive the regional and nationwide economic crises. turbulent economic conditions of the 1840s and Fortunately the bank emerged from this time 1850s. Aside from his financial nous, he was also with a strong and loyal customer base. Under prepared to defend the business he founded. the leadership of its founder, Charles Geach, During the Birmingham Bull Ring Riots of 1839 a Midland developed lasting connections with mob threatened to attack the bank. Geach sent major industrial and commercial houses in his staff to the roof, armed with stones and bricks, the West Midlands region. By the 1850s it whilst he rode through the mob to fetch support could count railway companies, iron founders, from the nearby barracks – thus his quick thinking utilities and municipal corporations amongst its saved the day. corporate customers. Happy 125th anniversary Our timeline

1844 1894 1912 1914-1918 1939-1945 2018 The foundation of the Preston The opening of the Burnley The branch’s address Burnley staff served their Burnley staff served their HSBC Banking Company branch of the Preston changed from Chancery country in the First World War country in the Second celebrates Banking Company Street to 12 Manchester World War its 125th The Preston Banking Company Road The HSBC Archives staff registers anniversary opened for business in April 1844 The Burnley branch opened show that seven employees from the The HSBC Archives staff registers 1970 at the Burnley in January 1894 on Chancery The branch moved into a Burnley branch left to join the war show that eight employees from Burnley branch was branch Street and the first manager new premises designed effort. The war card for one of the the Burnley branch left to join the computerised on 20 was William R Howard by the architectural firm, men, Septimus Waugh, is shown here war effort May 1970 Woolfall and Eccles 1894 From 20 May 1970 The Preston Banking Company was onwards banking acquired by Midland Bank (now transactions made at HSBC UK) the Burnley branch were stored on computers In July 1894 an agreement was signed by the 1958 rather than paper Preston Banking Company to amalgamate Midland Bank becomes the first with Midland Bank (now HSBC UK) British bank to offer non-secured 1992 personal loans Midland Bank becomes a wholly Such was the success of the loans, the owned member of the HSBC Group. then Prime Minister, Harold Macmillan, wrote to the Midland’s chairman In one of the largest acquisitions commenting: “You certainly put the in banking history Midland becomes part of the cat among the pigeons. I shall send my HSBC Group. In 1999 it is renamed HSBC Bank plc. application in due course.” 1989 1907 Launch of a new concept in banking Midland employs its first 2015 female member of staff Midland launches first direct in October Miss Anne Tulloch becomes the bank's 1989. It is the first business to offer a HSBC UK announces its person-to-person telephone banking first female employee plan to relocate back to service 24 hours a day, 365 days a year. the city of Birmingham.

Our timeline

1830 1835 1840 1845 1850 1855 1860 1865 1870 1875 1880 1885 1890 1895 1900 1905 1910 1915 1920 1925 1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 The Hongkong HSBC acquires HSBC HSBC Holdings and Shanghai HSBC’s famous the Mercantile Bank Holdings plc plc launches Banking Corporation HSBC issues China’s lions make their HSBC returns and The British Bank becomes HSBC and the (HSBC) is established first public loan first appearance to Hong Kong of the Middle East the parent hexagon symbol company as its worldwide The bank opens its first office HSBC issues China’s first public loan – The pair of bronze During the war HSBC These purchases of the Group brand. in Hong Kong, followed the ‘Foochow’ loan. Thereafter, it is lions are unveiled at had been forced by the extended the bank’s soon after with premises in involved in the issue of nearly all of China’s the opening of the occupying authorities network across Shanghai and London. public loans. The loans are for major bank’s newly-built to issue banknotes. the Indian sub-continent infrastructure projects such as railway Shanghai office. These ‘duress notes’ are and Middle East, construction, and other developments They became so honoured in full by the helping to increase such as shipping and coal mines. popular that two bank after the war. This HSBC’s global reach. lion sculptures can action is credited as a be found guarding key factor in sustaining many of the HSBC the territory’s economy in offices around the the immediate world today. post-war years.