Report of the General Manager to the Bank Committee on the working of the Bank for the Year Ended March 31st 1923

 

I have pleasure in presenting my Report on the working of the Bank during the past year.

 

Accounts.

A copy of the Income and Expenditure Account and Balance Sheet is sent herewith. The Auditors to the Bank have examined and agreed the figures, and their report for publication to depositors will be prepared and issued in course. During the year the Auditors have maintained a continuous audit and check upon the work of the Bank, and have been active in making comparisons of depositors' pass books with the personal accounts in the Ledgers. They have further carefully examined the deeds and other papers in connection with the House Purchase Department and found everything in order. The accounts are in the main self-explanatory, and there is little need for me to review them in this report, apart from the matters to which I draw attention below.

 

Transactions. 

The test of usefulness of a savings bank is to be observed by the number of its transactions, and in this respect it is pleasing to note the increase from year to year as disclosed by the following figures:

 

7 months period to 31st March 1920	163,787
Year ended 31st March 1921	385,466
"        "        "        "      1922	442,383
"         "        "       "      1923	577,717

 

No of depositors. 

The number of open accounts in the Bank is another sign of progress, and the following figures illustrate the position:

At the 31st March 1920	40,130
"    "    "        "      1921	62,119
"    "    "        "      1922	76,230
"    "    "        "      1923	100,245

 

Amount deposited. 

The total sum taken in deposits shows a remarkable increase, as the following figures indicate:

 

During period ended 31st March 1920	£  873,705.   9.   8.
Year    "       "          "     1921	£1,226,321. 10.  2.
Year     "      "          "     1922	£1,279,293.    7.  0.
Year     "       "          "    1923	£1,950,916.  10. 11.

 

Amount withdrawn. 

The total sum withdrawn year by year is as follows:

 

During period ended 31st March 1920	£   136,099.   7.   3.
Year     "       "          "    1921	£   567,327.  11.  4.
Year     "       "          "    1922	£   815,675.  11.  3.
Year     "       "          "    1923	£1,010,165.    3.  3.

 

When it is realised that these figures cover a period of unparalleled depression in industry it is gratifying to find that demands have not been heavier than is indicated. There are many evidences of care being exercised in withdrawals by depositors who have fallen on to short time or become unemployed.

 

Amount standing to credit of depositors. 

The building up of such a large sum as £2,883,942. 4. 2. in the short space of 3½ years is, in itself, a remarkable achievement, and it places the Bank within the six largest savings banks in Great Britain, most of which have been established over a century. The growth of depositors' balances has been as follows:

 

At March 31st 1920	£   746,984.   -.   11.
"     "        "     1921	£1,405,977.  19.  9.
"     "        "     1922	£1,869,595.  15.  6.
"     "        "     1923	£2,883,942.    4.  2.

 

It will thus seen that the average amount per depositor in the Bank works out to £28. 15. 4.

 

An impression appears to have been formed in some quarters that the money being taken in the Bank was not received from what is termed the working classes, and that abnormal transfers were being effected from the Joint Stock Banks and other sources. Such impression is not according to fact, as the Committee who periodically visit the Branches know. Anybody who has seen the Monday and Saturday clientele of the Bank can only be struck by the fact that we are reaching the class for whom the Bank was set up, and the Monday and Saturday transactions of the Bank constitute 60 to 70 percent of the total business.

 

In order that the Committee may know the correct position as regards the depositorship of the Bank, I have extracted from the Balances certain information which proves that over 97 per cent of the depositors have accounts of less than £200. The extraction shows as follows:

 

	Cases
Sums not exceeding £200	97,321
Sums over £200 but not exceeding £300	1,631
"        "    £300   "     "          "        £400	592
"        "   £400   "     "           "       £500	297
"        "    £500   "    "           "        £750	269
"        "    £750   "     "          "        £1000	69
"        "   £2000  "    "           "       £5000	53
"        "    £300   "    "           "        £400	9
"        "    £5000	4
Total	100,245

 

Mortgages. 

The House Purchase Department continues to prove the need for such an institution in this City, and it is clear that had it not been for the assistance which the Bank can and does render, many persons would not be in the position of tenant-owners of houses as they are to-day. The total number of mortgages effected since the Bank was established is 1,543, and the amount so advanced represents £433,248. Of these mortgages 289 have been paid off entirely, leaving 1,251 in force at the end of the year, representing an indebtedness to the Bank of £284,996. 10. 7. This gives an average indebtedness of £227. 16. 3, and is made up as follows:

 

	Cases
Not exceeding £100	180
Over £100 but not exceeding £200	454
"     £200  "     "           "        £300	315
"     £300  "     "          "         £400	162
"     £400  "    "           "         £500	77
"     £500  "     "           "        £750	56
"     £750  "     "          "        £1000	7

 

The monthly repayments of principal and interest have been well maintained, and only in a comparatively few cases has it been necessary to exert pressure to obtain the repayments. The cases of arrears are always carefully watched, and it is a testimony to the character of the borrowers to find that in only 8 cases have the Bank had to appoint a Receiver. Of these the money owing to the Bank has been recovered in 4 cases, and at the end of the year a Receivership was in force in only 4 cases, one of which has since been cleared by full payment of the amount outstanding.

 

Land Settlement. 

Advances have been made during the year under the Land Settlement (Facilities) Act 1919 to 16 persons at the request of the Corporation, and to one person at the request of the Warwickshire County Council, the amount of these advances totalling £920. At the 31st March there were 31 loans in force representing £2,180. The loan in every cases is guaranteed by the Local Authority, and must be repaid within a stated period of years. Interest is charged at the rate of 5 per cent.

 

National Savings Certificates. 

Business in this connection is but slight, certificates representing a cash value of £3,204. 16. -, having been sold during the year.

 

Water Accounts. 

The popularity of the system introduced, whereby the public can pay their water accounts at any Branch of the Bank, cannot be questioned. During the year 15,700 accounts were dealt with by the Bank, and a total sum amounting to £26,072. 1. 4 received and paid over to the Water Department. The system has worked quite smoothly and has undoubtedly introduced depositors to the Bank.

 

Rates. 

1,922 depositors gave authority to the Bank to transfer to the Overseers sums represented by their demand notes, and a total sum of £16,494. 15. 7 was so transferred. There has been an expenditure of £22. 10. 8 in printing and stationery in this matter which ought to be defrayed by the Overseers who have not, as yet, made any contribution to the funds of the Bank in respect of the services of the Staff in dealing with these transactions.

 

School Savings Banks.

The work of collecting monies from school children has been carried out by the teachers under the directions of the Education Committee as heretofore. A total sum of £42,556. 14. 8 has been received and £41,322. 6. 5 paid out. Only 59 transfers to the Municipal Bank have been made by the children leaving school totalling £170. 15. 10. One cannot regard the system as a success, and efforts should be made to introduce a better and more effective system.

 

Housing Bonds.

The cashing of Interest Coupons on behalf of the Corporation has proceeded during the year on the lines laid down, and 4,117 Coupons have been so dealt with.

 

Home Safes.

Saving by means of Home Safes was introduced in December last, and at the end of March 2,469 Home Safes were held by depositors. By this method a sum of £1,687. 5. 8. has been received.

 

Cash in Transit. 

The amount of cash in transit between Head Office and Branches has given much anxiety in the past, but the introduction, as from the 1st April 1923, of the system of Branch Managers obtaining supplies of cash from the nearest Branch of the London Joint City & Midland Bank on production of authorised Orders, should do much to reduce the risk and ease anxiety. Every precaution has been taken to ensure the proper use of such Orders and suitable limitations have been fixed in respect of amounts. The system further enables the banking of monies to a closer margin, thus avoiding the necessity of retaining large sums at Branches from day to day.

 

Purchase of Branch Bank Premises. 

During the year there has been a constant lookout kept for premises suitable for the purposes of a Branch Bank, and many purchases have been made. At the end of the year the following premises were owned by the Bank:

 

2-4 Soho Hill

22 High Street, Aston

101 Aston Road North

525 Moseley Road

117 & 118 Great Lister Street

73 High Street, Kings Heath

299 & 300 Monument Road

155, 157 & 159 Dudley Road

523 & 525 Bristol Road

479 Coventry Road

161 & 163 Stratford Road

797, 799 & 801, Stratford Road

while land has been bought at Handsworth for the erection of a Branch Bank.

 

Since the year closed premises have also been bought in Pershore Road, Stirchley, Rookery Road, Handsworth, and High Street, Harborne.

 

Alterations to Premises. 

There has been considerable activity in the direction of altering and adapting premises to suit the needs of the Bank, and permanent Branch Banks have been opened during the year as follows:

 

Apl   24 1922	Kings Heath	by Councillor Appleby
Sept  4 1922	Balsall Heath	" Mr Hallas
"    25 1922	Small Heath	" the Lord Mayor
Feb 10  1923	Selly Oak	" the Lord Mayor
"    17 1923	Aston	" Alderman Lovsey
Mch 17 1923	Duddeston	" the Lady Mayoress

 

while the Aston Cross Branch is to be opened by Councillor Gelling on Saturday next.

 

Alterations are nearing completion at Rotton Park, and the work of demolition at Ladywood, preparatory to the erection of new premises, is proceeding. The contract has been let for the new Bank at Handsworth, and plans etc are being prepared for alterations at Hockley and Stirchley.

 

Heating and Lighting. 

During the year efforts have been made to improve the heating and lighting arrangements at Branches, and there is now being installed at all permanent premises a Hot Water Circulatory Heating System. Where this has been in operation during the cold periods of the last Winter the reports from the Staff have been favourable, and it is hoped all permanent Branches will be so equipped before next Winter.

 

The lighting arrangements are receiving attention at the present time, with a view to affording a light which, while being satisfactory from a working point of view, will not be injurious to the eyes.

 

Installation of Telephones. 

The Committee decided during the year to install telephones at all Daily Branches, so that quick communication can be obtained with Head Office. This has proved of great service at the Branches where it has been installed and is much appreciated by the Staff.

 

Advertising. 

During the past year appropriate advertisements have been inserted in the newspapers and other advertising methods adopted. The principal and most successful method  had been the fixing of large enamel signs on tramcars and omnibuses. These signs have attracted much attention in the City. Efforts are now being made to secure a more permanent type of advertisement on the tramcars and omnibuses, as the "life" of the plates can only be taken at 3 to 5 years.

 

Amendment of Rules & Regulations. 

The amended Rules and Regulations decided upon have not yet been laid before HM Treasury, as it was felt desirable to first obtain the opinion of Counsel on the legality of dealing with Water Accounts, and Rates at the Bank, and on certain other points. The negotiations with Counsel are still proceeding, but it is anticipated that at an early date the whole position can be laid before the Committee.

 

Joint Committee on Housing. 

A joint Committee has been set up consisting of representatives of the Finance and Estates Committees and the Bank, to deal with the question of sale of Corporation Houses and the advancing of money to builders and others undertaking to erect houses. The schemes are prepared, but are held up pending the final decision of Parliament on the question of subsidy.

 

Deputations and Enquiries. 

As in previous years numerous deputations from other towns have visited Birmingham, and many enquiries have been made relative to the working of the Bank. To all, the fullest information permissible has been given, and opportunities have been afforded of inspecting and examining the work at the Branches.

 

Staff. 

The health of the staff during the year has been satisfactory, considering the conditions under which they have had to work. The improved arrangements, I know, have been appreciated by the staff.

 

Of the general work of the staff I can speak in the highest praise. The ability they have displayed and the enthusiasm shown in their work augurs well for the future of the Bank.

 

The scheme introduced for affording a short period of training at Head Office of the Branch Managers has given me opportunities of testing the knowledge and ability of the various men, and has enabled me to correct wrong impressions formed by the requirements of savings bank law and practice. Considering the fact that all the men came new to the work they have done remarkably well, and I have no doubt the short educational training taken at Head Office will be of assistance to them when they return to a Branch.

 

Of the female clerks I can speak in the highest terms. They are a very capable staff.

 

The junior clerks have shown much promise and will do well. The encouragement which the Committee have shown to this Branch of the service by paying the fees of the youths attending selected educational classes in the Winter, and the granting of small monetary prizes on the results is a pleasing sign of the interest taken in such youths by the Committee. The last report of the Head Master of the School of Commerce where the youths attend is sufficient testimony to the high standard attained. Attached will be found a more detailed account of their work.

 

Three of the staff have passed the school examination in connection with the Institute of Bankers examinations, and will proceed another year with their studies in this direction, while one member has passed the Intermediate examination of the London Association of Accountants.