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WHEN YOUR LOCAL BANK WAS A LOCAL BANKKindly contributed by Malcolm Lobley FCIBarticles home | Bank note & cheque images | York City & County Bank Ltd | Richmond Bank Cheque & £1 1s Note An amazing number of people include Penny in the name when talking about Yorkshire Bank even though it is 40 years since the name was shortened. Perhaps it was the recollection of the weekly school saving that puts it in mind.Does anyone remember their local Banks name before it became Barclays or Midland? Not many I suspect they will need to be close on 90 to do so! We do have a wonderful heritage of banking in Wensleydale and Swaledale and tracing its local roots reflects the maturing Dales economy in the 19th Century. Putting the clock back to 1872 , The Darlington District Joint Stock Banking Company had branches at Hawes, Leyburn and Bedale as well as Northallerton. Edward Wm. Beetham was the Manager at Bedale whilst Matthew Frier enjoyed the title of Agent for the Bank at Leyburn. Messer’s Backhouse Jonathan and Co Bankers with a Head Office at Darlington also opened every Tuesday at Bedale. We would also have found Christopher Other Jnr (from a famous local banking family) Manager of the Head Office of the Swaledale and Wensleydale Banking Co in Market Place, Richmond. Also in Richmond were the highly respected banking partnership of Roper and Priestman. The Swaledale and Wensleydale Banking Co by then had branches at Hawes and Market Place Bedale where a sub Manager William Breaks was in charge. A similar title was given to John Grime who represented the Bank in Leyburn. Why do we now only see Barclays and Midland (even this has now started trading under the name of its' parent - HSBC) Banks - names not familiar in Yorkshire until this century. Barclays Bank whose origins go back to the 17thC conducted banking business under the sign of the Black Spread Eagle in Lombard St. London from 1728. Midland Bank founded in Birmingham much later, had successfully built a strong base in London by the end of the 1800s. It was not until the turn of the century that their names appeared in our local dales. Historically in Yorkshire, banking as a separate business was slow to develop. Even as late as 1750 there is no evidence that any firm engaged solely in banking existing anywhere in Yorkshire although several merchants conducted banking transactions as an adjunct to their principal business. However the economic climate in the decades following resulted in a huge upsurge in the number of Banks being established. Regulation was minimal and merchants and others whose credit was good were able to undertake banking business and issue their own Bank Notes. Needless to say some acted recklessly and hardship resulted as the paper money they issued became worthless and their fledgling banks collapsed. Following a crises in the winter of 1825/26 which resulted in bankruptcy for many private banks the Government acted and over the next two decades enacted legislation to put banking on a sounder footing .The formation of Joint Stock Banks came into being with a stronger capital base than the previous banking partnerships of credit worthy individuals. Following the 1844 Bank Charter Act no new banks were able to issue their own banknotes and restrictions were placed on the note issues of banks amalgamating. Wensleydale was the home of a very sound banking partnership, which became the cornerstone of a substantial part of our existing bank network in the Dale. Around 1804 a John Robson who had been a clerk with a banking partnership in London joined the firm of Hutton, Other and Co (who had offices at Richmond and Leyburn) and undertook the management of the Bank at Leyburn. It is possible but not certain that Leyburn was the birthplace of the Bank and that the Darlington branch was an offshoot. By 1812 there was a full complement of six partners (the maximum allowed by law) and the firm was Hutton, Wood, Other, Robson, Ellis and Simpson. John Hutton was a considerable landed proprietor who resided at Marske Hall Richmond and Thomas Simpson also originated from Richmond. Messrs Robson and Ellis came from London but Mr Wood lived at West Burton and Thomas Other was of Elm House Redmire. The banking partnership enjoyed the confidence of the district and their notes were accepted without question. They styled themselves Richmond & Swaledale Bank (See picture of one of their banknotes issued in 1812). In those days before the railways the dales seemed unmoved by the financial panics that affected the larger commercial centres and the Bank never had to contend with a `Run` (depositors all wishing to withdraw their monies at once). They survived the difficult days of 1825 in spite of the collapse of their London agents Sir Peter Pole,Bart.,and Co. Many other sound provincial banks failed though their London agent’s demise as surplus funds were often deposited with them. Taking advantage of the new Government legislation the bank converted into a joint stock Company titled Swaledale and Wensleydale Banking Company in 1836.The partners disposing of their business were given as John Hutton,Christopher Other (of Elm House)William Ware of Leyburn and Isaac Fisher of Richmond. The new Bank thrived with branches at Bedale, Hawes, Leyburn and Masham. The Head Office was at Richmond. The Bank issued its own banknotes, which featured Richmond, and Bolton Castles and they circulated widely in the dales. (see example of £5 note) Although the Bank was very strong directors in 1890s realised that it might be vulnerable view of its narrow business customer base and amalgamation with a larger London based would make sense. must have been hard decision to take. Thus the business was acquired by Barclay and Company Ltd in 1899. Rivalry for the Swaledale and Wensleydale Banking Co in the dale arose from the establishment of a branch network by the Darlington District Joint Stock Banking Company which was founded in 1831(an early customer was the Darlington and Merrybent Railway). The Bank very quickly established itself in seven nearby towns including Hawes and Leyburn. Over 50 years later in June 1883 the speculations of the manager at Bedale caused a loss of £22,000. When news of the defalcation spread a slight run on the Bank took place. Following from this the York City and County Bank made an offer for the business, which was accepted, and a new Bank name became familiar. The York bank pressed forward a vigorous policy of opening branches and of amalgamations. Because of its size the Banks note issue would have been a common sight to businessmen in the area. In spite of a tremendous growth rate which by 1900 had eclipsed its local rival the Yorkshire Banking Company (no connection with the present day Yorkshire Bank), the trend towards larger banks and the need for association with London became overwhelming. The predator was from the industrial heartland of England. The Birmingham and Midland Bank was a highly successful and acquisitive bank that in the late 1800s moved to amalgamate with London banks as well as suitable candidates in the north of England. They offered economies of scale and a widespread and diverse customer base not reliant on a single industry. In 1901 the Yorkshire Banking Co succumbed whilst the York City and County Bank amalgamated with the London Joint Stock Bank in 1909 which itself amalgamated with Midland in 1918. Backhouse and Co who it was mentioned opened one half day a week in Bedale appear to be the oldest banking establishment in the area founded in Darlington in 1774. With its own notes issue the partners opened branches in the North East but from 1836 parts of the business were sold off to different banks. In 1896 Backhouses was one of the three lead banks in the amalgamation of Backhouse, Gurney and Barclay, Bevan & Company to become Barclay & Company Limited(Barclays current Darlington address is Backhouses Bank Business Centre!) The Yorkshire Banking Co had an agency at Northallerton but did not come further into the dale. The Knaresborough and Claro Banking Co had a branch at Masham. This bank was absorbed by banks that eventually became National Westminster Bank. In Kellys directory of 1913 an agency was shown for the Halifax Commercial Banking Company Ltd in Hawes. Edward Allen was the Agent. The Bankers Almanac for 1912 does not mention the agency for the Bank nor does the 1914 edition. Does anyone know any details of this apparently short lived bank branch? The present fashion for bank amalgamations seems to be repeating what happened 100 years ago So what of the only remaining bank with a local name? Yorkshire Bank PLC formerly The Yorkshire Penny Bank with its emphasis on personal savings had for many years branches at Hawes and Leyburn.Sorry:- I am afraid it was sold to the Australians in 1990. At least they had the good sense to keep the name! Malcolm W Lobley November 1998 If any reader knows the whereabouts of any photographs of bank premises showing the old names the author would be interested to hear. Please e-mail Malcolm at mlobley@aol.com The author wishes to acknowledge the following sources for this article:-
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