Geraint welcomed a full house to the March meeting. There were two new members: Alwyn Batley, Vice-President of the Radnorshire Society, from Llandrindood; and Mrs Williams from Crossgates.
Geraint introduced Richard Davies who, as well as marrying into the Thomas family is a retired Barclays Bank Manager, to take this session on:
Banking in Penybont
When the Bank in Penybont closed in 1988 it brought to an end a banking tradition going back to 1770 and a banking service founded on the principles:
“Security, Stability, Honesty, and Fairness”
The Bank building was built and opened in 1934. It was initially a Sub-Branch of Llandrindod Wells where Mr Moseley was the Manager, but elevated to the status of Branch in 1936 when Huw Glyn Thomas. Mr. Thomas lived at Haulfyn, by coincidence where Richard and Mary now reside.
Mr Thomas was assisted by Mr Fred Colley and lunchtime security guards (2 on duty at a time) Jim Humphreys, Stan Davies, Percy Lane, Vic Morgan (Grandfather of Richard Morgan, now of Penybont Hall), Bill Miles, and Morley Harper. Also working at the Bank were Judith Davies, Helen Cochrane, and Mike Price. Managers who followed on from Mr Thomas were: 1945 Mr Daniels; 1955 Mr Bembow; and 1960 Mr Hughes. The Bank cleaners were Mrs Violet Edwards and Mrs Doris Powell.
The Bank was central within an active commercial sector in, and around, Penybont, including the farming community, Severn Arms Hotel, the Market (Smithfield), a number of other businesses, and including the needs of families in the local community.
6 or 7 of the members present had had accounts at the Bank. A wide range of services were provided, including:
Money in and Money out, using cash, cheque accounts, and change; Current accounts, Deposit accounts, Insurance (Managers had Agencies with different Insurance Companies and some earned more for their commission than they did from their salary.); loans and Over Draft facilities; Safe Deposit Boxes; Foreign Currency; Investment Advice; Wills. Gwen remembered having a savings box, Richard wondered if it had been an ‘elephant box’, but Gwen did not remember.
Richard remembered a much more personal service where there were no security screens but there were however no toilets, kitchen or rest room.
Pre-dating this newly built bank, it was previously located at Green Fields. There is some mystery about when it came to Greenfields as it is thought it came in 1875 but it is not mentioned in Worral’s Directory (The Directory describes a village of 1000 inhabitants with a Post Office, first class hotel, Radnorshire Coal Company, Blacksmith, Grocer, Tailor, Saddler, Ironmonger, Watchmaker, as well as many Farms) of that date. James Hamer was resident at Greenfields and is referred to as the Agent for the Estate at Penybont Hall with John Cheesement Severn. There is a suggestion that James Hamer had connections with the County Bank at Kington which John Price had been involved in founding. In bringing the Bank back to Penybont this re-established the connection with John Price and Penybont and a continuity of Banking from around 1772 when it is thought John Price established the Radnorshire Bank and became involved in the development of the Kington, later to become County Bank and eventually the Midland Bank.
John Price was an entrepreneur whose importance to Banking in Mid Wales, and indeed Wales as a whole, cannot be overstated. John’s father, Edward, a Burger of Cefnllys, moved to Penybont in 1730 to establish a shop. This predated the village of Penybont, the area was then known as Rhyd-y-Cleifion with its association to a ‘leper colony’. We can speculate that his intention was to trade with the Drovers who were on route from Strata Florida, through Abbey-cym-hyr, to Hereford, and beyond. Edward died in 1734 and John, who was his second son, took over his estate from the age of 11 years.
By 1755 John was doing sufficiently well to build Penybont Hall as his residence, appoint a Manager for the shop, and build a new Inn in the village, which became known as the Fleece. It is well known that the Drovers carried out some banking as part of their duties and it is not difficult to speculate that John learnt skills from them and began lending money through the shop. Careful not to over extend himself he began to build an extensive estate across the area based upon prudent lending in an area where it was difficult farm due to the altitude and vagaries of the weather.
John was ready to put the shop and Inn out to managers in 1772 and to start, or to have already established his Bank, the Radnorshire Bank. John did not pass down records of his business and so we do have to speculate. We do know however that he was successful and left an Estate of £100,000 to his illegitimate daughter MaryAnne. The Radnorshire Bank did not survive John and seems to have been wound up a year before John’s death in 1798. John, who had been High Sheriff in 1787 and a Trustee of the Radnorshire Turnpike, got involved in a complicated deal for £20,000 with Charles Gore. John had £4000 in cash but needed to borrow the £16000 at an interest payment of 5%. John died just before he needed to make the final payment. This resulted in more complications when it came to settling John’s estate. The estate was sold when MaryAnne reached the age of 18 years, thus settling the debt and providing her with a healthy dowry for her union with John Cheesment Severn, High Sheriff of Radnorshire.
As a ‘pioneer’ banker John led the way in Mid Wales and was one of the earliest Bankers in Wales. There is reference to a Bank in Aberystwyth as early as 1765 and one in Brecon from 1770. More generally Banks did start to appear in the early part of the 19th century. There was a bank in Montgomery from 1794 but this failed by 1816. Llanidloes Bank was established in 1800, Newtown 1822, Knighton 1850. Small banks had difficulty raising large sums and subject to the fluctuations of the market and they were particularly vulnerable at times of war. As a result many failed or were taken over by the London Banks.
Legislation protecting Banks was already established by the early 19th Century. In one case Sarah Chandler (34 years and mother of 6 children) was convicted of having altered a £1 note to a £5 note. She was sentenced to death. Some friends managed to help her escape on recapture 3 years later she was sent to Australia.
The Egyptians, Greeks and Romans all had Banking systems, but it was the Jews who first developed banking in the UK. A Germanic tribe, Longobardi, who previously settled in Lombardy, came to London in the reign of Edward I, and settled in and around Lombardy Street. Banking the reign of Elizabeth 1 was closely aligned with the Goldsmiths. Seventy six resided in Chepe and twenty one in Lumberde Streete. By 1677 thirty seven goldsmiths were running ‘cashes’ at Lombard Street, twenty five of the banks were ‘private and ten were joint stock banks. These Lombard Bankers introduced systems that we know today such as creditor, debtor, ledger, journal, and librae (pounds), solidi (shillings) and denarii (pence) LSD. These German traders were called ‘Easterlings’ and their money was ‘pounds easterling’ – giving rise to pounds sterling.
Banking developed in the cities through the practice of depositing valuable items with goldsmiths during the seventeenth century, and licenced Drovers were increasingly used to to take valuable stock to markets while at the same time these ‘trusted’ individuals could be manage business transactions in different parts of the country.
Two similar but different problems with money management led to the development of banking systems that gave rise to the banks that we know today. In the cities the pubs needed a way of managing their cash takings and to avoid being susceptible to robbers, and in the countryside the Drovers became increasingly a target for highwaymen.
It was most probably the Drovers that gave rise to the initial success of the Shop in Penybont and the subsequent Banking history that is associated with John Price. Many small private banks opened up around the country during the early part of the nineteenth century. Some succeeded, but many failed, and they became under increasing pressure as the Industrial Revolution gained pace. The small banks could not cope with the financial demands and they began to merge.
In Mid Wales the Bank at Brecon was probably the first bank in Wales. It metamorphosed into the Black Sheep and then the Black Horse that is synonymous with Lloyds Bank today. Around the beginning of the nineteenth century banks emerged in Aberystwyth and Tregaron Montgomery, Llanidloes, Welshpool, and Newtown. The early banks, including the John Price Bank, issued promissory notes which acted as currency. Richard had a number of early examples to show the group including a ten shilling note issued by the Machynlleth Bank.
John Price’s involvement wit h the County Bank at Kington, mentioned above, provides a very good example of the way in which Banks evolved over the years, as well as giving us a fascinating insight into how Banking has changed in the village.
Prior to 1770 John Price lent money against surety of land and property and thus acquiring considerable wealth
1770 – 1772 Set up the Radnorshire Bank and issued promissory notes
1770 – 1798 John Price involved in the development of the County Bank which seemed to be based at Kington
1789 Establishment of Bank in Kington by Davies, Banks and Co.
1797 John Price’s Banks were wound up a year prior to his death. We are still uncertain about what link there may have been between John Price and the Banks family of Hergest Croft but it seems reasonable to assume that there was some link between these two Banks that were at that time based in Kington.
1875 Davies, Banks and Co was taken over or merged into the Kington and Radnorshire Bank . Mr. James Hamer had the Agency and he operated the Bank from Bank House in Penybont. (James Hamer is the father of RP Hamer who subsequently established the Market in Penybont) This seems to establish that Bank House was so named because of its connection with Banking and not because it was near the bank of the River Ithon. The Bank however moved at an unrecorded date to Greenfield.
1910 The Kington and Radnorshire Bank became the Metropolitan Bank of England and Wales.
1914 The Bank became the London City and Midland Bank and the Bank at Greenfield became known as the Midland Bank at Greenfield.
1934 The Bank moved to its final resting place in the centre of the village as Midland Bank
1988 The Midland Bank in Penybont, that had already changed to HSBC, was closed. In an interesting aside Richard regaled us from a time when he was working for Barclays Bank in London and how he had become involved in the changes within Banking that led to the closure of many sub-branches and mergers of full branches with sub-branches. He lamented this policy change at the time which he saw as a move away from providing a ‘service’ (Security, Stability, Honesty, and Fairness) to a more hard headed and ruthless business approach.
The building, which is now a private residence, still retains some features of the Bank and a screen from the Bank is held within the Thomas Shop.
Geraint reminded us the the next session would be on William Lewis of Esgairwy by Julian Lovell on Monday 7th April 2014 at 10.30 a.m.
(Unfortunately we have subsequently learnt that Julian is away at present and Geriant will himself be leading on a session: “A History of Llanbadarn Fawr Church” )
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