Financial London

The figures as to bank clearings in London during 1924 are interesting when compared with those of Manhattan. Last year, the clearances of London banks totaled practically $200,000,000,000 --an increase of about 8% over 1923. Even so, however, this 1924 total is only 83% as great as the grand total of the Manhattan Clearing House, which was in the neighborhood of $240,000,000,000. Also, Manhattan clearances are only about half of those of the U. S., while those of London are probably 90% of those of England.

The greater concentration of banking in London as compared with Manhattan is due to the British practice of branch banking, which is mainly forbidden by law in this country. In England, consolidation of banks has gone on steadily for years, and particularly rapidly since the War. As a result, the London money market is practically in the hands of six institutions--the historic Bank of England, and the "Big Five" (the Midland, Lloyds, Barclays, the Westminster and the National Provincial). Collectively, the deposits of these five institutions total about $7,000,000,000. The largest of them is the Midland Bank which, with deposits of $1,800,000,000 and 2,230 branches, is larger than any public banking institution in the U. S.

In addition to the purely British banks, there are 36 branches of foreign banking institutions in London.