1. On the declaration of War, 21 of our staff enlisted. To avoid filling such posts I arranged to eliminate certain routine work and reduced the staff at certain Branches on the assumption that our normal transactions would fall. Returns for the month of September confirmed my opinion. 

2. The reduction in Joint Stock Bank hours, however, compelled me to engage 5 temporary clerks to deal with the banking of cash at Branches where only 2 clerks are employed. 

3. The conversion of three Evening Branches to Daily openings called for a staff of 6 officers. These were found by using the entire staff of 6 Reserve officers. 

4. To help the City Treasurer and Town Clerk in their organisations for AFS [Auxiliary Fire Service] and Report Centres, I loaned 9 officers of experience from the 6th September, but had to engage temporary clerks to replace them. 

5. This was followed by a request for my assistance in the payment of ARP [Air Raid Precautions] and AFS wages to over 7,600 persons each week. This additional work counterbalanced the reduction in normal Banking transactions, and, consequently, Branches had to be restored to full strength, necessitating the engagement of 12 temporary clerks. These 12 clerks would not be required if this extra work did not fall upon the Bank, and therefore I consider that the cost of wages of such 12 clerks is a proper charge upon the ARP and AFS Services and should not be defrayed out of Bank funds. 

6. Ten days ago I was pressed to arrange for the collection of evacuation fees at Branches, and consented to do so. I was told that some 15,000 contributors would have to be dealt with each week, but no indication could be given as to the districts where pressure was likely to be the greatest. The Chairman and I decided that Branches in the evacuated areas (especially those staffed by 2 officers) must have an extra clerk, and accordingly 20 temporary appointments were made. The system which has been introduced without any opportunity being given to the Bank to consider the same, is not suited to quick handling at counters, and is wasteful from the point of view of staffing. I have prepared a new and simpler scheme which can be worked along with our normal procedure for dealing with Corporation Accounts, and if this scheme is adopted the extent of additional assistance required will be less than at present. The expense of such extra assistance is not a charge which should fall upon the Bank, but one which the Education Committee or the appropriate Government Department should meet.

 

J P Hilton.

 

November 13th 1939.

The Military Authorities, under the directions of the Secretary of State for War, have taken possession by requisition, of certain land and buildings on this estate under the Defence Regulations, and troops are in occupation of a number of houses. These houses were empty at the time the Military Authorities took possession, but would have been let to tenants in the ordinary way, and the Bank has advanced sums by progressive instalments on such houses. 

Mr Edward Boot of the First National Housing Trust Ltd has discussed the matter with me, because the Military Authorities are pressing for the erection of further houses, in respect of which financial arrangements will have to be made. 

The position at the moment in respect of Bank Loans is that Sections 1 to 9 comprising 1220 houses have been completed. Final advances have been made for all these Sections. The total amount advanced thereon is £417,015 and each of these separate mortgages now comes on the repayment basis, ie a fixed monthly instalment of principal, plus interest on balance outstanding. 

On Section 10, comprising 88 houses, the Bank has advanced £28,743. 15. 0. leaving £1,181. 5. -. still to advance. This Section is now complete and Mr Wilde's certificates for 10 houses in the 4th and 5th stages will be issued next week. 

On Section 11, comprising 134 houses, the Bank has advanced £26,190, leaving £19,440 still to advance. Mr Wilde will issue next week certificates for 6 houses for the 4th and 5th stages; 30 houses for the 3rd, 4th and 5th stages; 10 houses for the 3rd and 4th stages; 20 houses for the 3rd stage; 26 houses for the 2nd and 3rd stage, and 2 houses for the 2nd, 3rd, 4th and 5th stages. The remaining 40 houses have been fully dealt with. 

On Section 12, comprising 98 houses, the Bank has advanced £28,059. 15. -. leaving £4,88. 5. -. still to advance. This Section is now complete except fences and Mr Wilde's certificate will be issued next week. 

Mr Boot agrees that the houses covered by mortgages for Sections 10, 11 and 12 should be completed according to existing arrangements. 

With regard to further houses it is proposed to erect the same to a modified specification, ie the houses will be to the original plans and designs but without internal partitions, doors, joinery, finishings, baths, WCs, internal plumbing, grates, ranges, copper, floor tiling, outside paving and fencing, but will include land sewers, services and roads. The present cost of erection of such houses to the modified specification will be £320 per house, and to bring the houses after the war to the same standard as other houses already erected will cost approximately £130 per house. The War Office would make an advance payment on occupation of £57. 10. -d. per house in respect of the excess cost and the rent to be paid by the War Office for occupation of such houses would be £18. 4. -. per annum for each 3 bedroom type house, and £16. 9. 4. per annum for each 2 bedroom type, the War Office to pay all rates and water charges. The War Office would also pay £3 per house to cover the cost of extraordinary dilapidations and make good all repairs, replacements or breakages or re-instatement of alterations during or arising from the War Office tenancy. 

The existing arrangements between the Bank and the First National Housing Trust Ltd, are that progressive advances shall be made on Mr Wilde's certificates and on the amount so advanced the Trust will pay interest at the rate of 4% per annum. As soon as the final progressive advance has been made the Trust will commence the repayment of the loan, by a fixed monthly instalment of principal, plus interest for a period of five years, the instalment being calculated on a loan for 25 years. At the end of the five year period the  Trust will make an equated monthly payment, representing principal and interest calculated on the balance of the loan outstanding, being repaid in a period of 25 years. 

Mr Boot states that the Trust cannot proceed with the erection of the modified type of houses unless advances can be made subject to the payment of 4% interest only until the War Office hand back the houses to the Trust. If the Bank are not willing to meet this position the Trust would have to secure financial assistance elsewhere, but Mr Boot would prefer to deal solely with the Bank. 

He suggests that any such advance made by the Bank should be based on the certified value of the houses as completed to meet the War Office requirements and secured by Mortgages in the same form as previous mortgages; that the Trust should give the Bank an undertaking that as and when the houses are handed back by the War Office they will be completed in accordance with the original specification; the Bank to give an undertaking that when finally completed further advances will be made on Mr Wilde's certificates; the further advances to be secured by a charge endorsed on each mortgage which would only require stamping to cover the further advance. Any legal action to cover this position to be agreed between the Town Clerk and the Solicitor to the Trust. 

The present practice is to make progressive advances as follows: 

20% when up to first floor joists.

25% when roof, eaves gutters and downspouts are fixed.

20% when plastering is done, floors laid and partitions built.

20% when internal fittings have been fixed and drains connected.

15% when painting is completed, fences erected and houses ready for occupation.

 

Mr Wilde states that he would issue his certificates in the usual way in respect of houses erected to the modified specification up to the third stage, less 5%. In other words the total advance on such houses would be 60% of his valuation, the 5% being deducted on the 3rd stage certificates. 

The War Office require the roads to be completed, and Mr Boot is proceeding accordingly. As completed the roads are to be taken over by the Aldridge Council. 

At the moment 700 additional houses are required and it is urgent that Mr Boot should make the necessary arrangements.

 

J P Hilton.

 

July 13th 1940.

War Damage to properties mortgaged to the Bank. 

Your [House Purchase] Sub-Committee append hereto a copy of report of the General Manager on this question. They recommend that the comments therein indicated for the procedure to deal with War damage to properties mortgaged to the Bank be confirmed, and that the principles outlined in the report with regard thereto be adopted until such time as it may be desirable to revise them in the light of further experience. 

A conference has taken place between the Chief Officers of the Public Works Department, Public Health Department, Estates Department and the Bank, and Mr Frank Wilde, as to the procedure which should be observed in dealing with damaged houses, and the following arrangements have been made: 

1. The Estates Department will carry out "first aid" repairs on ascertaining that a house has been damaged. 

2. Where a house in mortgage has suffered damage, the Bank will notify the Public Health Department, who will take no steps towards carrying out more permanent repairs until the Bank has decided whether or not to take such action. 

3. The Bank will instruct Mr Frank Wilde to inspect the property and give an estimate of the cost of more permanent repairs. 

4. On receiving Mr Wilde's report, the Bank will decide whether to carry out the repairs in order to preserve the security, or whether the matter should be left to the owner in conjunction with the Public Health Department. 

The question of procedure to be adopted by the Bank in cases of mortgaged property damaged by enemy action was considered by the Chairman (Alderman Barrow), Alderman Morland, and Councillor Cooper, on the 20th September, at which meeting Mr Frank Wilde was also present, when the following principles were laid down: 

(a) Where the difference between the amount outstanding on the loan and the valuation is more than £200, any necessary repairs should be left to the Public Health Department in conjunction with the owner. 

(b) Where the difference between the amount outstanding under the loan and the valuation is less than £200, the case will be considered on its merits. If the cost is small the case would be left to the Public Health Department in conjunction with the owner. If the cost would amount to a large sum, the borrower will be given three alternative methods of repayment: 

(1) The amount to be added to the loan and repaid by monthly instalments, plus interest, spread over the unexpired period of the loan.

(2) The amount to be added to the loan and interest only paid thereon until the mortgage is discharged, when the cost of the repairs would be payable by the borrower, but may be spread over a period of years to be mutually agreed.

(3) The cost of the repairs to be met on demand by the borrower, thus saving any interest charges. 

With regard to houses damaged beyond repair, it will be for the owner to complete the demolition and satisfactorily clear the site or instruct the Public Works Department to do so on his behalf. If the house is leasehold the owner will have to give notice of disclaimer or notice of retention to the Lessor. Damage by enemy action does not affect the liability of the mortgagor to continue his payments in accordance with the terms of his mortgage, but each of such cases will be the subject of special consideration and report after conferring with the mortgagor. 

Up to the date of this report, 141 houses have been damaged by enemy action. In 45 cases there is no need for the Bank to take any action and the Public Health Department have been so informed. In four cases the houses are damaged beyond repair, and are the subject of consideration at the present time. The remainder of the cases will be dealt with as reports come to hand from Mr Wilde.

 

J P Hilton.

 

October 10th 1940.