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Birmingham Savings Bank
1827 - 1863
 
Financial and Statistical Data

The Financial Statements included in the Bank's Annual Reports consisted of two parts:

 

- a 'Charge and Discharge' Account; and

 

- an Analysis of the Funds held 'in charge' at the year end.

 

In common with other savings banks, the annual accounts were compiled at November 20th. A major feature of the Analysis of Funds was a breakdown of Depositors' Balances to illustrate to what extent the Bank was fulfilling its objective of providing a facility for small savings. The following is the analysis as at November 20th 1857:

 

Although double entry bookkeeping systems had been in use for centuries, 'Charge and Discharge' was still a popular form of accounting in the 19th-Century. This system was popular with certain industries including metallurgical, so may have been a common system in Birmingham. The basis was one of stewardship - the steward was charged with the sums for which he was responsible (opening balance, plus receipts) and discharged the payments to show the end balance kept in his charge for the next accounting period.

 

In the case of the Birmingham Savings Bank, the steward was the Trustees who would have delegated the responsibility to the Secretary, Treasurer, and Accountant.

 

Examining the 'Charge and Discharge' statement, plus the Analysis of Funds, it is possible to extract a Balance Sheet and calculate the Surplus or Loss made during the year. Using the Financial Statements produced as at November 20th 1857, the following Balance Sheet could be extracted:

 

Balance Sheet as at November 20th 1857
 
 Liabilities  Assets  
 Balance due to Depositors
 445,684 - 2 - 6
 Cash with Treasurer
 3,551 - 4 - 10
 Reserve
 900 - 0 - 0
 Invested with National Debt Commissioners - General A/c
 443,710 - 5 - 2
 Accrued Surplus
 1,577 - 7 - 6
 Invested with National Debt Commissioners - Reserve
 900 - 0 - 0
       
 Total Liabilities  448,161 - 10 - 0  Total Assets   448,161 - 10 - 0
The Bank was founded to provide a facility for small savings, and not to make a profit. However, the operation of the Bank did generate small surpluses. The only source of income for many years was provided by the difference in the rate of interest received from the National Debt Commissioners and that paid to depositors (the 'Interest Margin'). From 1851, income was also received from 'Rents' - presumably from letting the houses that formed part of the freehold premises recently acquired for the Bank's office (one of the houses was occupied by the Bank's Secretary). Management Expenses were low as there were few paid employees, the services of the Managers being provided free. The following table (rounded to the nearest ) is an extract of the Bank's 'Income & Expenditure' amounts, plus the amounts of annual Deposits and Withdrawals.
NOTES:
 
(1) Until 1842, Management Expenses were noted as including Salaries; Rent & Taxes; Printing & Stationery; Incidental Expenses; and Alterations to Offices, but no breakdown was provided.
 
(2) Few details are available regarding the salaries paid, except for the following Resolutions passed at AGMs:
- January 10th 1860: Resolved that Mr W Ashby Bolton be appointed Assistant Secretary, at 100 per year, and that he give security for 500
- January 10th 1860: Resolved that the Salary of Mr John Williams, as Accountant, be increased from 350 to 400
- January 8th 1861: The Committee having recommended that the Assistant Secretary's Salary should be advanced from one hundred to one hundred and twenty five pounds per annum, in consideration of his increased duties, consequent upon the addition to the open hours of the Bank. Resolved that such recommendation be approved and adopted.
- January 13th 1863: Resolved that an increase of 25 per annum be added to the salary of the Assistant Secretary.
 
The AGMs frequently pass Resolutions thanking "the Auditors and .... the Treasurer, for their gratuitous and very valuable services", so it is likely that the only paid officers were the Secretary, Accountant, and the Assistant Secretary.
 
(3) The Annual Accounts included the following payments (included above in Management Expenses):
 - 1849: Paid for Freehold Site for New Offices, and charges for conveyance .... 1,598 - 14 - 10
 - 1850: Paid on account of Erection of New Offices .... 1,505 - 11 - 0
 - 1851: Paid on account of Erection of New Offices .... 1,401 - 16 - 6
 - 1852: Painting &c of New Building .... 109 - 3 - 0
 
 
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  Deposits Withdrawals Interest Interest Balance Interest Rents Management Profit Accrued
      Received Capitalised Due Margin Received Expenses (Loss) Surplus
1827 10,613 346 33 33 10,300 0   0 0 0
1828 24,383 5,189 950 736 30,230 214   (291) (77) (77)
1829 25,788 13,314 1,431 1,179 43,883 252   (152) 100 25
1830 26,989 14,219 1,943 1,610 58,263 333   (288) 45 70
1831 26,495 26,612 2,187 1,812 59,958 375   (214) 161 231
1832 21,551 34,022 2,006 1,657 49,144 349   (255) 94 325
1833 25,764 14,475 2,067 1,715 62,148 352   (239) 113 436
1834 33,937 20,215 2,687 2,232 78,102 455   (276) 179 615
1835 36,905 23,613 3,226 2,684 94,078 542   (333) 209 824
1836 45,410 26,583 4,034 3,353 116,258 681   (477) 204 1,028
1837 39,226 43,163 4,375 3,633 115,954 742   (441) 301 1,329
1838 47,362 33,227 4,676 3,909 133,998 767   (725) 42 1,373
1839 48,545 53,308 5,133 4,272 133,507 861   (678) 183 1,556
1840 51,337 35,464 5,482 4,574 153,954 908   (570) 338 1,894
1841 59,298 45,739 6,212 5,192 172,705 1,020   (639) 381 2,275
1842 58,342 49,691 6,847 5,711 187,067 1,136   (669) 467 2,742
1843 67,835 46,857 7,635 6,370 214,415 1,265   (700) 565 3,307
1844 78,785 50,502 8,854 7,384 250,082 1,470   (776) 694 4,001
1845 93,749 63,915 8,664 7,611 287,527 1,053   (932) 121 4,120
1846 104,149 77,675 9,900 8,700 322,701 1,200   (1,008) 192 4,312
1847 102,988 102,441 10,672 9,390 332,638 1,282   (1,016) 266 4,580
1848 90,858 111,504 10,432 9,174 321,166 1,258   (1,074) 184 4,764
1849 102,765 86,028 10,742 9,461 347,364 1,281   (2,647) (1,366) 3,398
1850 103,432 110,509 11,200 9,798 350,085 1,402   (2,590) (1,188) 2,210
1851 109,574 98,449 11,749 10,315 371,525 1,434 51 (2,694) (1,209) 1,001
1852 114,685 101,257 12,380 10,870 395,823 1,510 59 (1,262) 307 1,310
1853 126,197 112,202 13,373 11,757 421,575 1,616 61 (1,308) 369 1,679
1854 117,944 118,918 13,857 12,146 432,747 1,711 62 (1,594) 179 1,858
1855 108,756 123,722 13,964 12,224 430,005 1,740 54 (1,585) 209 2,067
1856 118,063 122,232 14,030 12,296 438,132 1,734 65 (1,524) 275 2,344
1857 114,673 119,726 14,371 12,606 445,685 1,765 60 (1,690) 135 2,477
1858 110,593 114,861 14,277 12,562 453,979 1,715 61 (1,580) 196 2,675
1859 134,789 101,444 15,441 13,592 500,916 1,849 50 (1,607) 292 2,967
1860 151,757 114,673 17,218 16,672 554,672 546 64 (1,772) (1,162) 1,805
1861 141,827 146,979 18,062 14,352 563,872 3,710 49 (1,908) 1,851 3,656
1862 141,692 151,407 18,213 16,041 570,198 2,172 88 (1,980) 280 3,936
1863 153,386 156,660 18,859 16,538 583,462 2,321 70 (1,991) 400 4,330
                     
  2,970,442 2,671,141 327,182 284,161   43,021 794 (39,485) 4,330  
 
Birmingham Savings Bank