THE INCREASE IN THE NUMBER OF BANKS AND BRANCHES IN THE METROPOLIS: THE ENGLISH COUNTIES: SCOTLAND AND IRELAND, DURING THE TWENTY YEARS, 1858-1878, WITH DEDUCTIONS RELATING TO THE CLEARING-HOUSE RETURNS, THE INCREASE ON THE AVERAGE CIRCULATION OF BANK OF ENGLAND, &c.

BY

ANNUAL

WILLIAM NEWMARCH, F.R.S., Corr. Memb. Inst., France.

It has appeared to me for some time past that among the class of facts most needful to be carefully collected and compared as aids and guides in the discussion of banking subjects in this country, are the facts which exhibit the increase and decrease of Banks (private and joint stock), and of branches belonging to them in the Metropolis, the English counties (according to character), and in Scotland and Ireland, during the last twenty years, or from 1858 to 1878.

I have had a strong impression that the increase in the number of banks and branches during these twenty years has been far more extensive and important than is generally supposed: but I must say that the increase shown by the detailed results of the investigation now concluded has surprised even myself, and I believe will still more surprise most of the persons who take an interest, professional or general, in these subjects.

As explained in the Note prefixed to the Tables, all the materials of the investigation have been obtained by a careful analysis of the returns of the Banking Almanac for each of the thirteen years 1867-79, and for the year 1859, so as to obtain the facts for the years preceding, viz., 1866-78 and 1858.

The Tables in the Appendix exhibit the results in detail, giving the names of the several banks, private and joint stock; and, as regards provincial England, arranged in the groups of counties adopted by Mr. Dun, in his exhaustive volume of 1875.

I considered it important to specify the several banks, for many reasons. The tendency of late years has been to extend the facilities of banking by means of numerous branches and agencies belonging to large concerns or companies, until in some cases the branches approach a couple of hundred. It is probable that this policy has been pushed to an extreme: but its progress and results can only be tested with accuracy by observing for a series of years the rapidity with which the branches of any particular bank have been extended: and hence the inclusion in the tables of the thirteen consecutive years, 1866-78, and the single antecedent year, 1858.

As stated in the Explanatory Note, I cannot hope that the tables are free from errors, but I do not think that the errors are many; and I beg permission to assure any institution which may find the entries relating to itself not quite accurate, that nobody will regret the inaccuracy more than myself; and that its occurrence arises entirely from those many liabilities to error inseparable from the collecting, arranging, and printing of a large body of scattered material.

For the purpose of exhibiting the general results of the inquiry, Four Years have been selected, viz., 1858, 1866, 1872, and 1878. The year 1866 terminated the "Prosperity period,' 1862-65. The year 1872 was in the middle of the "High-price period" 1871-3: and 1878, it is to be hoped, will have to be regarded as the close of the "Depressed period," 1874-8. The following three tables summarise the results for these four years, as follows:

Table A. (1.)—Metropolitan Area.

(A) METROPOLIS-BANKS AND METROPOLITAN BRANCHES-FOUR SELECTED YEARS, 1858, '66, '72, AND '78, AND COUNTRY BRANCHES OF LONDON BANKS (Abstract of Table p. 19). (1) METROPOLITAN AREA.

Bks. Bchs Bks. Bchs Bks. Bohs Bks. Bchs. Bks. Bchs Bks. Behs.

Bks. Bchs Bks. Bobs Bks. Bobs Bks. Bchs.

25 77

::

13 4

124

i

**39

**88

::

20 45

9 41

980

3 188