Paper for presentation at Economic History Society Annual Conference, 28-30 March 2008, University of Nottingham Britain and the end of the first globalization: ‘financial crisis’, contagion and the British financial system authors



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Notes:


Big Five = Barclays, Lloyds, Midland, National Provincial and Westminster banks

BoE = Bank of England A = member of Accepting Houses’ Committee

* = merged with Bank of London and South America in 1936 ** = F. Huth & Co. taken over by British Overseas Bank in 1936

† = taken over by Lloyds 1929 + = taken over by Royal Bank of Scotland in 1939



# = taken over by Royal Bank of Scotland in 1930, losses to BoE reflect losses on pre-takeover lending by Williams Deacon’s
‘support’ usually took the form of loans.
This table excludes ‘normal’ bad debt losses and Standstill debts/losses.
For comparative purposes, when the City of Glasgow Bank failed in 1878, the shortfall to the shareholders with unlimited liability was £5.2m (Collins, 1989, p. 504), equivalent to £9.1m at 1931 prices and £465m at 2007 prices. £1m in 1931 is equivalent to approximately £51m at end-2007.


Table 5: Bank deposits, 1930-2
Table 5a: Changes in banks’ deposits, 1930-2





deposits (£m)

index of deposits 1930 =100







1930

1930

1931

1932

Big Five













Barclays

347.9

100

96

109

Lloyds

364.6

100

92

105

Midland

399.6

100

90

105

National Provincial

291.5

100

90

100

Westminster

291.6

100

93

102
















other clearing banks










District

52.4

100

96

108

Martins

78.6

100

97

109

Williams Deacon’s

32.0

100

91

106
















Scottish banks










Bank of Scotland

32.3

100

101

96

Clydesdale

30.2

100

93

106

Royal Bank of Scotland

50.4

100

98

111
















British international banks













Anglo-South American

49.8

100

82

51

Bank of Australasia

34.2

100

107

111

Bank of London and South America

39.4

100

87

105

Barclays DCO

62.7

100

109

114

Chartered

40.8

100

95

107

Hongkong

50.6

100

110

115
















merchant banks













Baring Brothers & Co.

17.6

100

100

99

Erlangers

4.1

100

30

41

Hambros

18.4

100

58

58

S. Japhet & Co.

6.2

100

37

32

J. Henry Schröder & Co.

8.8

100

50

38
















aggregate data










UK banks

2396.0

100

93

105

Joint stock banks of England and Wales

1976.8

100

92

104

London clearing banks

1903.4

100

92

104

London clearing banks, average of monthly statements

1801.0

100

98

99

notes:
‘Deposits’ represents ‘Deposit and other accounts’ at year-end dates, except for ‘average of monthly statements’ for London clearing banks.


The year-end date is 31 December for all banks except: Anglo-South American (31 October); Bank of Australasia (30 June); Barclays DCO and Bank of London and South America (30 September); Hambros (31 March in following year); Hongkong (31 August); Royal Bank of Scotland (11 October 1930, 10 October 1931, 8 October 1932);
sources: authors calculations. Bank of Scotland: Saville, 1996, p.962, Table A8; Clydesdale Bank: Munn, 1988, p.340; merchant banks except Schroders: Truptil, 1936, pp. 336-7, 339, Appendices III and V; Schroders: Roberts, 1992, p.530, Appendix IV (i); British international banks: Jones, 1993, Appendix 5; other banks: annual reports; aggregate data: Sheppard, 1971: pp. 116-9, Tables (A) 1.1, 1.2, pp. 130-3, Tables (A) 1.8, 1.9, pp. 138-9, Table (A) 1.13.

Table 5b: Monthly indices of aggregate deposits of London clearing banks


January 1930 = base month:-










1930

1931

1932













January

100.0

103.8

95.0

February

97.0

100.8

91.9

March

95.3

97.7

92.9

April

96.9

96.2

93.1

May

98.6

96.3

94.1

June

101.1

98.7

97.8

July

101.4

99.0

99.9

August

99.9

96.7

99.9

September

99.8

94.8

103.3

October

101.3

95.5

104.9

November

101.8

94.5

105.2

December

103.9

96.2

109.9

average for year

99.8

97.5

99.0

source: authors’ calculations from Capie and Webber, 1985, Table III.(4), p.444



Table 6: Summary weekly data for deposits for Westminster and District banks, 1931




Westminster

District

annual average

100

100

standard deviation

3.41

2.79

minimum

95.02

95.67

maximum

109.92

108.16

date of minimum

24 September 1931

8 April 1931

date of maximum

1 January 1931

21 January 1931

data are summarised for ‘Deposits and other accounts’



source: authors’ calculations from weekly balance sheet data, RBS, WES/561 and DIS/102
Table 7: Composition of banks’ aggregate balance sheets, main asset categories, percentages from 1860-1913, 1920-32


Decade

Cash and near-cash

Bills discounted

Investments

Advances
















1860-69

13

31

11

45

1870-79

17

27

12

48

1880-89

21

26

17

38

1890-99

22

17

21

42

1900-09

24

11

18

46

1910-13

26

13

16

45

1920-29

21

13

20

44

Year













1930

22

14

19

43

1931

21

12

21

44

1932

20

16

28

34

sources: 1860-1913 decadal averages: Collins and Baker, 2001a, p.183, Table 2, sample basis described pp. 172-3; 1920-29 decadal average, 1930-32: Sheppard, 1971, pp. 116-7, Table (A) 1.1



Table 8: Ratios of ‘true’ capital to published capital and reserves, 1930-39


Year

Barclays

Lloyds

Martins

Midland

National Provincial

Westminster






















1930

1.24

n/a

n/a

1.17

1.24

1.58

1931

1.25

n/a

n/a

1.31

1.26

1.64

1932

1.21

1.24

1.44

1.28

1.21

1.62

1933

1.22

1.24

1.47

1.38

1.20

1.62

1934

1.22

1.27

1.45

1.39

1.26

1.61

1935

1.21

1.31

1.41

1.42

n/a

1.68

1936

1.24

1.34

1.46

1.47

n/a

1.72

1937

1.27

1.25

1.41

1.45

1.41

1.72

1938

1.22

1.24

1.39

1.47

1.46

1.74

1939

1.22

1.25

n/a

1.52

1.46

1.60
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