MIDLAND BANK LIMITED. This British joint-stock company was in 1928 the world's largest commercial banking insti tution and had for chairman the Right Hon. Reginald McKenna, a former chancellor of the exchequer during the World War. It had 13,000 employees, with 2,000 branches in England and Wales and over 1,250,000 customers.
The bank was formed under a deed of settlement in 1836 and opened in Birmingham under the title of "The Birmingham and Midland Bank," with a paid-up capital of £28,000. A first divi dend of 6% was paid in 1837, and thereafter the rate was raised from time to time until it reached a maximum of 23% in 1876. During this period the paid-up capital had been increased to B00, 000 by capitalizing undivided profits and by issuing further shares.
In 1851 and 1862 the bank undertook its first two amalgama tions, and in 1873 was registered as an unlimited company under the Companies Act of 1862. In 1880 it became a limited company with an issued capital of 24,00o shares of L6o each, of which LI21 was paid up, £124 callable and £35 reserved. It then had only three branches, besides its head office in Birmingham, but there after the twin policies of amalgamation and branch extension came into full play. The inspiration for this policy came mainly from Mr. (later Sir) Edward H. Holden, who, joining the bank as ac countant in 1881, occupied in succession various important posi tions until finally (1908-1919) he held the dual office of managing director and chairman of the board. To his foresight was due very largely the progress of the bank and its development as a British national institution.
A third absorption was effected in 1883, but from 1889 amal gamations followed rapidly. The policy pursued was distinctive, 3o of the 33 institutions taken over were joint-stock banks as opposed to private firms. Moreover, fusions were complete, with managerial control centralized in the head office of the absorbing bank. The most important of the earlier amalgamations was that with the Central Bank of London, in 1891, which gave the provin cial institution a footing in the metropolis and a seat in the Lon don Bankers' Clearing House, and resulted in the transfer of the head office to London. The name was changed to "The London
and Midland Bank Limited," and in this year the bank, under the Companies (Memorandum of Association) Act, 1890, substituted a memorandum and articles of association for its old deed of set tlement. The position was further reinforced by the absorption of The City Bank in 1898, when the title became "The London City and Midland Bank Limited." The largest amalgamation, that with The London Joint Stock Bank, in 1918, led to a further change to "London Joint City and Midland Bank Limited." The present name was adopted in 1923. Meanwhile, in 1917 the control of the Belfast Banking Company had been secured by an exchange of shares, and in 1920 and 1923 the Clydesdale Bank and the North of Scotland Bank were also acquired. The Midland owns the capi tal of these affiliated banks, which, however, have preserved their autonomy. In August 1928 the Midland group possessed 2,450 offices. None of these was outside the United Kingdom.
In 1905 the overseas business of the bank was concentrated in a special department, later known as the overseas branch. This branch has sub-offices in important industrial centres and in ti Atlantic liners, and a shipping department. The Midland B, Executor and Trustee Company Limited was formed in 1909. has a paid-up capital of £200,000, all held by the bank, a rese fund and undivided profits of £163,000, and branches in four la provincial centres. Various other departments were formed fr year to year, and the progress of the bank is thus indicated : The paid up capital was L13,320,000 in 1928, held by 65,000 individual shareholders. The new head office is in Poultry, London.
(L. C. M.)