Early in the Bank's history, the restriction imposed by the enabling legislation that the BMB could not lend on property outside the
city boundary, was the cause of much disappointment to residents in adjoining areas. This was particularly so for depositors at Bearwood
branch (many of who resided in Smethwick) and at Quinton branch, where many depositors lived in Oldbury, Halesowen, and Blackheath.
The situation in Quinton was equally frustrating for the Bank where much of the housing development was close to the branch, but outside
the city boundary. The only solution to this situation would be a change to the 1919 legislation.
At a Special Meeting of the
Bank Committee held on July 7th 1924, the Chairman stated that the meeting had been called to consider certain amendments to new regulations
that the Bank wished to have implemented, and to consider the question of the Bank obtaining further powers. The Town Clerk was present
at the meeting and stated that extra powers might be obtained by a Bill being promoted by the Corporation in the ensuing session of
Parliament.
After considering the comments of the Town Clerk, the Committee asked him to prepare draft clauses for submission
to the next meeting of the Committee. One of these clauses was to obtain:
Power to enable the establishment of Branch Banks for Savings
purposes only in the area of adjacent local Authorities, at the request or with the consent of such Authorities.
The Committee
then resolved that the "General Manager be directed to ascertain the views of the adjacent Local Authorities on the question of obtaining
powers to establish branches for Savings purposes, in areas outside the City, with the consent of the Local Authorities concerned."
However,
the Town Clerk reported in October 1924 that the question of obtaining further powers by promoting a Bill in Parliament had been considered
by the City's General Purposes Committee who had decided not to proceed with the matter. In the meantime, the General Manager had
informally communicated with the Treasurer of certain local authorities, with a view to ascertaining their attitude regarding the
establishment of BMB branches in areas outside the city. Replies in favour were received from West Bromwich, Smethwick and Perry Barr
(the latter then being outside the city), but Sutton Coldfield did not consider that the establishment of a branch would have any
attractions for the town's residents. No reply was received from Wednesbury.
The next opportunity for the Bank to obtain the
power to establish branches outside the city arose in 1925 when the Bank's General Purposes Sub-Committee produced the following report,
dated June 15th 1925:
Proposed Clause for inclusion in Parliamentary Bill.
The Town Clerk has asked to be informed by the first week in July whether the Bank desire, in the event of a Parliamentary Bill being promoted in the next Session of Parliament, to include Clauses for further powers.
In this connection your Sub-Committee are informed that the question as to the possibility of savings facilities being afforded by the Bank in the Borough of Smethwick has been raised recently at a meeting of the Council of that Borough, and arrangements have been made for a meeting to take place between the General Manager and the Town Clerk and Borough Treasurer of Smethwick to discuss the question. In the event of any proposal arising out of such meeting, it has been suggested that representatives of your Committee and the Borough of Smethwick should meet to go further into the matter.
In view of the above
action, and the steps privately taken by the Mayor of Smethwick in this matter, your Sub-Committee feel that should official representations
be made by the Borough of Smethwick in favour of the Bank seeking powers to afford savings facilities in that Borough, the Town Clerk
should be informed that the Bank may desire a draft Clause included in the projected Bill to enable the establishment of Branch Banks
in the area of adjacent local Authorities at the request or with the consent of such Authorities.
As described by the General
Manager in his 1927 history of the Bank, Smethwick was one of a number of local authorities that were keen to establish Municipal
Banks. These other towns and cities wished to see their residents benefitting from two factors that applied in Birmingham: a better
rate of interest on deposits than that obtainable elsewhere, and those deposits being placed with the local authority at an attractive
rate. The Government opposed all attempts to establish more Municipal Banks, but Smethwick endeavoured to circumvent this opposition
by making a special arrangement with Birmingham.
This arrangement followed two meetings held by representatives of the BMB with
representatives of both Smethwick and West Bromwich. The first meeting was held on June 22nd 1924 at the Smethwick Council House,
and was attended by the following:
|
The Mayor (Alderman Betts) |
|
|
Alderman Willietts |
|
|
The Town Clerk |
Representing Smethwick |
|
The
Borough Treasurer |
|
|
Alderman Bache |
|
|
The Town Clerk |
Representing |
|
The Borough Treasurer |
West Bromwich |
|
Councillor
Appleby |
|
|
The Town Clerk |
Representing |
|
The Treasurer |
The Bank |
|
The General Manager |
|
The representatives
of the two Boroughs expressed a desire to have branches of the Bank in their area, but it was explained that under the Birmingham
Corporation Act 1919, the Bank could not operate to its full extent outside the City area. However, Birmingham's Town Clerk ruled
that the Bank possessed sufficient authority to open branches in other areas and could transact Savings Bank business but not House
Purchase business. He further stated that it could be argued that such an extension into other areas was against the spirit of the
Act, and the Treasury might (without consulting the Corporation) limit the Bank's activities to the City only by prescribing the Regulations
accordingly. The alternative would be for Birmingham to apply for Parliamentary power to meet the position, in which case Smethwick
and West Bromwich would have to be prepared to support such application. The representatives of the two Boroughs stated that they
were willing to do so.
It was agreed that the Bank should prepare a suitable scheme and the following attended a meeting in the
City Treasurer's office on June 24th 1925 to consider a document prepared by Councillor Appleby:
The Borough Treasurer of Smethwick
A
representative on behalf of the Town Clerk of Smethwick
The Town Clerk of West Bromwich
The Borough Treasurer of West Bromwich
Councillor
Appleby
The Deputy Town Clerk of Birmingham
The Treasurer of the Bank
The General Manager of the Bank
After consideration of the document, the meeting decided to submit it to the respective authorities, and if adopted to proceed by
way of inserting an appropriate clause in the next Parliamentary Bill promoted by Birmingham City Council.
COUNTY BOROUGH OF WEST BROMWICH
Town Hall,
West Bromwich
TC/Y 6th August, 1925
F.H.C. Wiltshire, Esq.,
Town Clerk,
Council House,
Birmingham.
Dear Sir,
MUNICIPAL BANK
This matter has now been before the Finance Committee who have approved it in principle by arrangement with Smethwick.
Enclosed herewith is draft scheme for the establishment of a branch Bank. No doubt you will arrange for a conference in due course.
I shall be away until practically the end of the month.
Yours faithfully,
(Sd.) Alfred Wickham,
Town Clerk.
COUNTY BOROUGH OF SMETHWICK
Council House,
Smethwick
7th August, 1925
The Town Clerk,
Birmingham.
Dear Sir,
Municipal Savings Banks
With reference to the Conference held at the City Treasurer's Office, Birmingham, on the 24th June last, regarding the establishment of Branch Banks in Smethwick, West Bromwich and neighbouring areas, the West Bromwich and Smethwick Authorities have since considered the Scheme which was then submitted by the Birmingham Corporation for their consideration, and I now send you herewith such Scheme as amended by the West Bromwich and Smethwick Authorities.
With reference to paragraph 7 of the Scheme, before finally agreeing to the provisions contained in such paragraph, my Committee would be glad if the expense or loss referred to, and which may fall to be borne by this Authority, could be more particularly defined.
I presume that a further Conference between the three Authorities will be necessary, and I shall be glad to know when and where you propose such Conference should be held.
Yours faithfully,
(Sd.) Frank Chapman,
Town Clerk.