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In presenting my Annual Report for the year ended 31st December 1927, I am pleased to be able to submit statistics which again show marked progress in all directions. The inference to be drawn from the figures is that we have not yet reached the stage when our development can be regarded as normal, but the larger number of branches available brings us nearer to the stage when expansion in that direction cannot be further contemplated. At the present time, however, there are a few districts where facilities are required, and where the prospects of success are good, such as:- New Inns, Handsworth; Chester Road, Erdington; Alcester Lanes End; Lichfield Road (near Aston Station).

 

In certain areas the Bank does not occupy the best position, and it may be wise to transfer to more favourably situated premises when opportunity offers. As examples, I may quote (1) Selly Oak, where the Bank is too near the town side to be attractive - shopping developments during recent years have been in the area beyond Selly Oak station; (2) Harborne, where the Bank lies between one shopping area and another, and sufficiently away from each to be unattractive; (3) Northfield, where the Bank is too near the town side - indications of developments towards Longbridge are noticeable.

 

The position in the Selly Park, Stirchley, and Cotteridge areas should be carefully considered. To cover this area, I expressed the view in 1919 that we should provide facilities at Cotteridge and Selly Park, leaving Stirchley out of our arrangements, as the Bournville Works Branch would cater largely for Stirchley people. The Committee, however, elected to open at Stirchley, and buildings are being erected at Selly Park. Neither of these facilities will cater for Cotteridge and Kings Norton, where facilities are called for, and yet I do not consider four branches in the Selly Park-Stirchley-Cotteridge area will pay their way.

 

The experiment we have tried in the Northfield area of opening sub-offices at Rednal, Rubery and Longbridge, has not been altogether successful. The business transacted at Rednal and Rubery Branches does not warrant special attendance being given. We could doubtless, do much better at Rubery if we were not restricted by the City boundary; but there is not a sufficient population at Rednal to justify a branch. At Longbridge the position is better, but the drawback to using branches conducted in too public a manner, as at the Institute, militates against success.

 

The branches conducted in wood buildings at Brookvale, Stechford, Pype Hayes, Perry Common and Billesley are developing satisfactorily, but it will be some time before they are ripe for conversion into daily branches. We are, however, committed to build at Stechford and Pype Hayes in a few years.

 

New Branches

During the year new buildings have been erected at Nechells, Birchfield and Hall Green, and opened as daily branches; while buildings, after reconstruction, have also been opened as daily branches at Farcroft and Witton. Evening branches have been opened at Pype Hayes, Billesley and Alum Rock.

 

Erections and Alterations proceeding

New buildings are proceeding at Selly Park and Kings Heath, the latter to take the place of the existing Bank. Structural alterations are also proceeding at Alum Rock and Sparkhill.

 

Buildings and Sites Purchased

During the year buildings or sites have been acquired at Bristol Street, Longbridge, Hobmoor Road, and Bearwood; while negotiations are taking place for sites at Yardley and Tyseley.

 

Head Offices

During the year the greater portion of the ground floor premises at Easy Row have been rented, and the House Purchase and Stationery Departments accommodated therein. Whilst relieving the congestion in the House Purchase Department, the transfer has brought no relief to the Savings Bank Department at Edmund Street. This shortage of accommodation at Edmund Street makes it impossible to deal with the business satisfactorily, and is a serious drawback. The cramped space behind the counters does not conduce to accuracy, and crowding together of depositors destroys that degree of privacy which is expected in a Savings Bank. The patience of the depositors is being tried, and we are likely to suffer in transactions. The present arrangements of part of the business being conducted at Edmund Street and another part at Easy Row, are extravagant. For Edmund Street premises we are paying £790 per year as rental, whilst for Easy Row the rental has been assessed at £650 plus £30 for heating, etc, making a total of £1,470. For such a yearly rental we ought to have premises adequate for our needs. The City Surveyor intimated that the Blue Coat School buildings would be available in about two years' time, and I strongly urge the Committee to secure that site for the Head Offices of the Bank, so that we may have a really permanent home. It has been urged that the Bank should be in close proximity to other civic buildings, but I do not think administrative reasons should outweigh the convenience of the public who use the Bank. The Blue Coat School is centrally situated from a Bank depositorship point of view, and I venture to assert that with such a prominent site business would increase substantially.

 

As a temporary expedient in providing relief at the counter, which will be necessary at the end of March, the screening forming the private offices might be removed, but it will mean that enquiries would have to be dealt with across the open counter.

 

Accommodation for Safe Deposits

The practice of depositors placing documents, etc, with the Bank for safe custody is increasing, and we are finding it difficult to provide the necessary room. If adequate premises were available it would be possible to introduce the system adopted by the German Banks, which is self-supporting.

 

Payments on demand

At present payments on demand are limited to £5 at branches, with discretionary power vested in me to pay on demand sums of a higher amount. In turn, I have authorised the Branch Managers to meet cases of demand payments up to £10, on being satisfied as to the desirability. The Branch Managers have to specially record these transactions, thus adding to their work without any advantage. I suggest that all Branch Managers be authorised to meet cases of emergency (either by demand payment or shortened notice), as may suit the depositor, whenever they can do so without difficulty.

 

Cash Orders

The issue of Cash Orders to Branch Managers is rendered laborious owing to the small balance retained at Branches over-night. This balance represents £50 in addition to sums under notice, and was fixed when the business was small as compared with to-day. I suggest that daily branches be authorised to retain cash balances of £250 in addition to sums under notice, and thus avoid using so many Cash Orders and making so many journeys for cash to the Joint Stock Bank.

 

Pass Books

The present type of depositors' pass book is hardly in keeping with the standing of the Bank, and does not compare favourably with pass books used by other Savings Banks. I recommend that we should introduce a better quality pass book when the present stock is used up.

 

Leaded Light Windows

The introduction of this type of window in the earlier branch Bank alterations has not turned out satisfactory, and the type has been abandoned in later alterations. The dullness of these windows, arising from condensation, gives a bad impression from the outside, and I recommend that they be gradually replaced by the newer type of window, which gives satisfaction.

 

Excess and Short Cash

During the year the short cash (including the £20 shortage at Duddeston which has not yet been cleared) amounted to £48. 3. 5d, whilst the excess cash amounted to £40. 14. -d. A sum of £1. 2. -d short cash in the previous year was recovered during the present year, and in order to recoup the shortage for the year it is recommended that a cheque for £47. 1. 5d be drawn on the General Account and credited to the "Under and Over" Account.

 

Corporation Accounts

The collection of Corporation Accounts, which may now be regarded as part of the Bank's duty, has proceeded very smoothly. The fact that the Gas and Electric Supply Departments have adopted the "tear off" system of receipt, whereas the Water Department continue with the old form, adds to our difficulties when dealing at pressure with the accounts. It would be an improvement if the different accounts were uniform, and distinguishable by colours, and I suggest the Committee might recommend accordingly. Irritation caused by the Bank being unable to accept payment for Rates at Bank counters continues to be manifested. Depositors and others assume the Bank to be responsible for the difficulty, and despite assurances given to the contrary, the public generally believe this to be so. The Committee are urged to bring this matter to a head, one way or the other.

 

The present arrangements in respect of the collection of Gas and Electricity Accounts limit the receipt of such accounts at Bank counters up to the discount date. All accounts presented after that date cannot be accepted, and have to be referred to the respective Departments. This causes much unpleasantness, and despite the fact that the account clearly states that the Bank can only accept accounts up to the discount date, late accounts, with payment in full, continue to be presented. The present arrangements are harsh, and it is difficult to understand why any limitation should be imposed. As the Departments are advised daily by the Bank of all accounts dealt with, there should be no difficulty in dealing with defaulters. There is no objection, so far as the Bank is concerned, to dealing with late payments at Bank counters, and I recommend representations being made to the Departments on the matter.

 

The question of accepting payment of Corporation accounts at branches on Mondays and Saturdays should be considered. Depositors complain that the primary business of making deposits or withdrawals is being seriously interfered with. It is a fact that when many Corporation accounts are presented ordinary Bank business is delayed, and depositors have to wait. As the collection of accounts is of secondary importance, I have directed that preference must always be given to ordinary banking transactions, but it would be helpful if an intimation was conveyed to the account-payer, either by a notice on the face of the account or a special slip attached thereto, that consumers should avoid presenting the accounts for payment on Mondays and Saturdays. By using the mid-week period for this work, the business of a branch can be levelled up, and the heavy strain of Monday and Saturday business relieved.

 

School Savings Banks

Although unable to report any change in the arrangements, discussions have taken place between the Education Committee, the Bank Committee, and the Chief Officers, as a result of which there is a likelihood of other arrangements being made for dealing with School Savings Bank work in the near future.

 

Health of the Staff

The number of days lost through sickness amongst the staff during the year totalled 733, the most noteworthy absentees being Mr Jackson 157 days, Miss Abel 75 days, Mr Sutherland 60 days, and Mrs Buckley 27 days. In the case of Mr Jackson, his illness was of a serious nature, and it was thought, at one time, that he would be unable to resume. He is, however, back on duty in the House Purchase Department, but it is doubtful if he will be able to continue. In the case of Miss Abel, the illness was certified to be Colitis; while Mr Sutherland contracted Diphtheria; and Mrs Buckley was away with Rheumatism.   

Messrs J W Raftery and S F Jones have now completed the syllabus of the Institute of Bankers, and have received their Certificates as Associates of the Institute.

 

Messrs Brotherton, Lewis, Ling, Oldham, Robottom, and Woollons have completed Part I, and received their Memoranda from the Institute.

 

Again, the Bank students figure prominently in the Prize lists, the following being successful:-

D W S Woodcock                 Institute of Bankers (Birmingham Local Centre Prize of £1. 1. -d) - Practice & Law of Banking, Part II

S W Lawrance                     Institute of Bankers (Birmingham Local Centre Prize of £1. 1. -d) - Commercial Geography, Part I

C H Massey                          Midland Bank Ltd (The "Holden" Prize of £5) - Practice and  Law of Banking, Part I and

                                                    Institute of Bankers (Birmingham Local Centre Prize of £1. 1. -d) - Economics, Part I

 

while W A Camwell secured Distinction in the examination for Commercial Geography, Part II.

 

Staff Changes

During the year the following changes have taken place:-

Resignations                       Junior Clerks                       S E Dawes

                                                                       C E Cane

                                   Female Clerks          Miss    B Manning

                                                                          "        N A Plant

                                                                          "        L D Haddleton

                                                                          "        W Keatley

                                                                          "        D M Foster

                                   Caretakers                 A Taylor

                                                                       Mrs M D R Taylor

Appointments           Clerks-in-Charge      W James

                                                                       W L Hannah

                                                                       R H Earp

                                                                       W J R Tooby

                                   Cashiers                    J A Duff

                                                                       R T Piper

                                                                       E J Cope

                                                                       J Hastie

                                                                       G H Humphries

                                   General Clerks         J Manners

                                                                       E J Grant

                                                                       J C Wright

                                                                       W H Frith

                                   Junior Clerks             A Auger

                                                                       N Roberts

                                                                       M R Redman

                                                                       E Chamberlain

                                                                       P D Smith

                                                                       F C Batstone

                                                                       R W G Rowe

                                   Female Clerks          Miss    L W McLean

                                                                          "        A W Fullbrook

                                                                          "        E H Owen

                                                                          "        F A Ridge

                                                                          "        E M Kirtland

                                                                          "        E A Wright

                                                                          "        M H Cawdell

                                               Caretakers     F G Kirtland

                                                                       Mrs E E Kirtland

 

Treasury Committee on Municipal Banks

The long-expected Report of this Committee is not yet available, although promised for June last. Many local authorities are holding up consideration of the matter pending the issue of the Report, but one or two municipalities, not content to wait, are including clauses in their forthcoming Parliamentary Bills.

 

History of the Bank

During the year the History of the Bank has been written and published in book form, 5,000 copies of a popular edition and 1,000 copies of a library edition were ordered. Up to the end of 1927 the sales were 1,292 of the popular edition and 187 of the library edition. The issue of the book in the month of July was not the most favourable opportunity for a rapid sale, but having regard to the statement in the House of Commons that the Report of the Treasury Committee would be available in June, the work was speeded up to coincide. No doubt, when the Report is available there will be a further demand for the book from outside sources, whilst local sales will doubtless be increased. The book has had an excellent press review, no adverse criticism having been offered.

 

I am much indebted to the Right Honourable Neville Chamberlain, MP for furnishing so much of the earlier information relating to the Bank, writing a Foreword, and reviewing much of the matter; also to Mr W J Chamberlain, who is President of the Local Institute of Journalists, rendered me the invaluable assistance in collating and revising the matter.

 

German Municipal Banks

Perhaps the outstanding feature of the year was the visit paid to Germany by the Chairman, with Alderman Lovsey, the City Treasury, and myself. The Committee have had a preliminary report on the visit which gave an indication of the remarkable influence which Municipal Banks wield in Germany. Further information on the subject has been unavoidably held up because of the difficulties of securing translations of some of the more important publications received. This difficulty is, however, being overcome by Dr Liddell and Professor Smith of the Birmingham University, and it is hoped before long to issue a further report, after a study of the translations.

 

Further Powers

The hope is expressed that the Committee will press for the inclusion in the next Parliamentary Bill of powers to extend the usefulness of the Bank, particularly in setting up a special investment department. I feel convinced that money leaves the Bank which might be retained if deposits could be accepted on longer notice and at higher rates of interest. This matter, together with the question of issuing bonds to depositors, is occupying the attention of the Chairman, the City Treasurer and myself.

 

British Industries Fair

The Bank stand attracted much attention at the Fair in March last, and many distinguished visitors made enquiries as to our operations, amongst whom may be mentioned the Prime Minister (the Right Hon. Stanley Baldwin, MP) and the Lord Mayor of London (Sir Rowland Blades). This year the Bank will not be represented at the Fair, as the Corporation have decided against a composite exhibit.

 

Enquiries

These continue to come along from all parts of the world, and to each prompt attention is given. Several deputations have visited Birmingham in order to familiarise themselves with the activities of the Bank.

 

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