NATIONAL PROVINCIAL BANK LIMITED. This great British banking institution, one of the "Big Five" (see BANKS, HISTORY OF), has over 1,200 branches in London and the provinces. The amalgamation movement wrought great changes in the English banking system, and the National Provincial bank has been closely identified with it, particularly during the period from 1918 to 1924. The most important amalgamation effected by the bank took place in 1918, when it took over the Union of London and Smiths bank, Limited. In the same year, the business of the Bradford District bank Limited was acquired. The Shef field Banking company Limited was absorbed in 1919, the Northamptonshire Union bank Limited in 1920 and the Guernsey Banking company Limited in 1924. A number of private banks also were absorbed; in 1920 and 1924 respectively Coutts and Co. and Grindlay and Co. Ltd. became affiliated, though both organi zations continue business in their own names.
The parent bank was founded in 1833. At the time of its estab lishment, the creation of joint stock banks had but recently been legalized, and any such banks conducting business within 65 miles of London were denied the right of issuing notes, at that time a lucrative privilege. It was decided to confine the banking activ ities of the new company to the provinces, thereby securing the right of note issue, and to maintain control from an administrative office in London. The first office was opened at Gloucester on January 1, 1834, and by 1838 there were 6o offices open. After some years the directors decided that the advantages of con ducting business in London would outweigh those of retaining their note issue. Accordingly, business commenced in 1866 in Bishops
gate, London. At that time the bank was given a seat in the London Bankers' clearing house, a privilege hitherto withheld owing to the antagonism of the private banks to their joint stock rivals. In 1880 the institution was registered as a limited liability company.
The growth of the National Provincial bank is shown in the following figures :— On December 31, 1927, the accounts of the National Provincial bank disclosed a balance of current, deposit and other accounts amounting to over /273,000,000 and the manner in which these funds were utilized will be seen from the following summary of the balance sheet as at that date.
Whilst the bulk of its resources is employed in various interest earning capacities, the bank keeps available in the form of cash in hand and balance at the Bank of England the substantial sum of 132,000,000. The item, money at call and short notice, of over 121,000,000, represents advances to the bill brokers and discount houses, chiefly against deposit of treasury bills or first class bank bills. These advances, as their name indicates, are very liquid and are repayable at short notice. Bills discounted include a large proportion of treasury bills and the item investments includes over £30,000,000 of British Government securities.
A large part of the bank's funds is employed in advances to customers. Trading and industrial concerns borrow considerable sums in the normal course of business and bank advances there fore occupy an important place in the economic structure.