BARING BROTHERS Monday evening, Mar. 13. Some fragments for use in text. My grandfather kept the letters he received in his long correspondence with the Barings and water-press copies of those he wrote, meaning to use them in writing a history of his time when he was through, which would have at least, he wrote "be true." But he unwisely mentioned it in a letter to one of the Baring firm, written near the end, and they ,alarmed lost things should come out they might not wish it to give the public, asked my unole who succeeded in the agency, to burn the whole, which he did, without e ven examining the cononts for historical material, as his son, Thomas Wren Ward the second, who is living still, in his early nineties, told me with a few years since, looking baok through his doing it at your his father's bidding, when he first the office. H Every generation sees such material in great quanitity go to destruction but it would be a wonderful source of material of study not only for the study of the passing times but, which go so quickly by, but for the study of human life and character, which, far more than history in the t broader sense would furnish the material to make better. man 2 2. March k13 But one chestlamong many which my grandfather filled left 9 filled with more personal matter, came into my mother's hands and through her to me and I have found it full of interest. Some day a portion of this I hope plan may be given to the public. Barina copy 2 rough copy January 18, 1943. Curiously enough, the origin of the great banking house of Baring Brothers, in its times the greatest in the world, traces back, not to an English named Baring source, but to a pastor of the Lutheran Church in Bremen, who U.S such was called to London. He had, among others, a son named John who established himself as a cloth- maker in Larkbeer in Devonshire. John, the cloth-maker, had four sons, two of whom, John and Francis, established themselves under the firm name of John and Francis Baring at London, originally with a view to facilitating their father's trade in disposing of his goods, and to be in position themselves to import the raw material re- uired by their father, such as dyestuffs and the like, directly from abroad, Presently, their business prospering, they extended it to enter into that of general bankers and as such were frequently called into council by the Government on financial matters, under the ministry of Lord Shelburne. In 1793 the title of baronet was conferred upon Francis Baring. After a time John, content with his gains, withdrew to Exeter in Southern Devonshire, leaving Francis alone to carry on the business. Francis Baring had three sons: Thomas, Alexander and Henry, who entered the London estahlishment. Bain (note) 2 Baring Later, Thomas, being offered a baronetcy, assumed the title of Sir Thomas and withdrew from the House, having become A man of wealth and content as had been his uncle, John, before him, with his gains. HenryBaring, who developed, with money aplenty in hand, a taste for gameling inthe gay society of the time in Paris, was asked for its 000 name , to withdraw from the firm, leaving Alexander alone of the original Baring family with his father, Francis, to carry on the business. Alexander Baring had commenced his mercantile career in the house of Messrs. Hope of Amsterdam, where a friendship sprang up between him and Mr. Peter C. Labouchere, which led to the latter's marriage with his sister, Miss Maria Baring. When the Messrs. Hope retired to England in consequence of the occupation of Holland by the Revolutions my Army under Pichegrue in 1795, Alexander Baring, quitting the House of Hope, determined to visit the United States where the business of the Baring firm was rapidly increasing and see things for himself. While there he married, in 1798, the year after his arrival, when he was twenty-four years of age, the dau hter of William Bingham of Philadelphia, then reputed with three million dollars -- the wealthiest man in the United States, and a Senator at Washington. 3 Baring Jame 1943 In seeking use for his capital, Mr Bingham was at that time investing extensively in the wild forest lands of Western Pennsylvainia and the District of Maine. In illustrati of this it may be told here that the lands bordering Oldfarm to the south on Frenchmans Bay were still held by the Bingham heirs when acquired for private ownership in 1876, along tracts with other extensive on Mount Desert Island. Alexander Paring, after a prolonged stay in America, returned with his wife and childre n to England, where in 1810 he became on the death of his father, Francis Baring, head of the firm of Baring Brothers and Company, himself retiring from the firm and entering the House of Lords under the title of Lord Ashburton that same year. Some years before this a change in the organiza ion of the Baring House had been brought about, owing to the death of the mana ing partner, Mr S. C. Holland. Mr. Joshua Bates of Massachusetts, former agent for the important House of William Gray, the great Salem merchant, had in 1823, two years before the death of Mr Holland, set up an ffiliated house with Mr John Baring, third son of Sir Thomas Baring, under the firm name of Bates and Baring. This young house was not intended to replace the older firm but was established by it to give John Baring the training and experience it was thought desirable he should have before being taken, along with Mr Bates, into the original firm, which was done two years later. A 4 Baring have from the star, Mr Bates transferring his residence to England, that it was not long before it was taken into the original firm. suggested to Thus it came about that Mr Bates soited my grand- fahher, Thomas Wren Ward, whom he had known from boyhood on William wards through his father's and his own connection with William Gray, till my grandfather's retirement from the sea to become a that ke sole merchant in his own right, to take over as agent the American business of Baring Brothers and see what ha could make of tx This led to the exchange of letters which, with the omission pof a few lost, is here published. A This correspondence in the most intimate when reveals manner the habits of thought, the ways of business and the ideals and prejudices of two leading merchants of that period an SO has seemed desirable to publish in its original form, as by a rare chance the letters have c'ome down to me. And this the more be cause in one of his last letters to the House of Baring my grandfather said, in anticipation of his retirement, that he would find ample occupation in his leisure, as he had saved, in letters and copies , his entiere correspondence as agent. This, he said, would enable him to write the full commercial history of the period, a history which would have, at least, the merit of being true. To this the Barings made no reply till after my grandfather's death in 1858, when they lost no time in writing my uncle, Samuel Gray Ward, who had succeeded his father as agent, to destroy the whole correspondone; and this he did. [G.D.DORR] the when A alon Ban 9/22/2017 XFINITY Connect Sent Re: "Harvesting Power," Barings, and Thomas Wren Ward Ronald Epp 10:36 AM To Thomas David Finger Dear Tom, Good to hear from you. I am pleased to hear of your interest in the Ward Papers at MHS. As you likely know, there are several prominent 19th-century Ward families, the two best known being that of Bostonian Barings agent Thomas Wren Ward and his sons Samuel G. and George C. who took over the business, moving it after TWW's death to NYC. Here they encountered another unrelated Ward, Samuel Ward (1814-1884), the grandson of Colonel Samuel Ward and son of banker Samuel Ward (1786-1839). This confusion of names and banking expertise has led to unintended scholarly errata, You have focused on the Prime, Ward and King brokerage in chapter three of your dissertation, referring (page 81) to them "with Thomas W. Ward a partner both in the U.S. firm and a Barings agent after 1832.." While there is some ambiguity in this phrasing, it is important to stress that TWW was not a partner in or an employee of Prime, Ward and King. Before his engagement with Barings, TWW conducted business in NY in partnership with Jonathan Goodhue (Goodhue & Ward) before returning to Boston in 1817, which Peter Austin restates in his 2007 study. Of course there were overlapping transactions that involved communication and perhaps even cooperation between the Boston and NYC agencies. As documented in the Barings Archive (5.1.2) TWW was appointed Barings agent with the power of attorney in the U.S. as of 28 October 1829 (not 1832), the "anchor" of Barings operations on this side of the Pond. There is much about the business and academic engagements of TWW that I must explore further. Since TWW was a major influence on the life of his grandson George Bucknam Dorr, there is much archival material to investigate. I hope we can share some of our findings and that my quibbling about the reference on page 81 does not give offense. Let me know if your travels take you to New England or the Middle Atlantic States. Best, Ron Ronald H. Epp, Ph.D. 532 Sassafras Dr. Lebanon, PA 17042 717-272-0801 603-491-1760 (cell) eppster2@comcast.net On September 21, 2017 at 2:41 PM Thomas David Finger wrote: Dear Dr. Epp (or Ronald, if I may), Alexander Baring, 1st Baron Ashburton - Wikipedia, the free encyclopedia Page 1 of 3 Alexander Baring, 1st Baron Ashburton From Wikipedia, the free encyclopedia Alexander Baring, 1st Baron Ashburton PC (27 October 1774 - 13 May 1848) was a British politician and financier, and a member The Right Honourable of the Baring family. Baring was the second son of Sir Francis The Lord Ashburton Baring, 1st Baronet, and of Harriet, daughter of William Herring. PC His grandfather, John Baring (1697-1748), emigrated from Germany and established the family in England. Contents 1 Business career 2 Political career 3 Family 4 Quotes 5 References 6 External links President of the Board of Trade Business career In office 15 December 1834 - 8 April 1835 Alexander was brought up in his father's business, and became a Monarch William IV partner at Hope & Co. He was sent to the United States for various Prime Minister Sir Robert Peel, Bt land deals, and formed wide connections with American houses. In 1807 Alexander became a partner in the family firm, along with Preceded by Charles Poulett Thomson his brothers Thomas and Henry, and the name was changed to Succeeded by Charles Poulett Thomson Baring Brothers & Co. When Henry Hope died in 1811, the Master of the Mint London offices of Hope & Co. merged with Baring Brothers & Co. In office Political career 23 December 1834 - 8 April 1835 Monarch William IV Baring sat in parliament for Taunton between 1806 and 1826, for Prime Minister Sir Robert Peel, Bt Callington between 1826 and 1831, for Thetford between 1831 and Preceded by Hon. James Abercromby 1832 and North Essex between 1832 and 1835. He regarded politics from the point of view of the business man and opposed Succeeded by Henry Labouchere the orders-in-council for "the restrictions on trade with the United Personal details States in 1812," and, in 1826, the act for the suppression of small Born 27 October 1774 banknotes as well as other reform. He accepted the post Chancellor of the Exchequer in the Duke of Wellington's projected ministry of Died 13 May 1848 1832; but afterwards, alarmed at the men in parliament, declared Longleat, Wiltshire "he would face a thousand devils rather than such a House of Nationality British Commons. "[1] Political party Tory Baring was Master of the Mint in Robert Peel's government and, Spouse(s) Anne Louisa Bingham on Peel's retirement, was created Baron Ashburton on 10 April (d. 1848) 1835, a title previously held by John Dunning, 1st Baron Ashburton. In 1842 he was again sent to America, and the same year concluded the Webster-Ashburton Treaty. A compromise was settled concerning the north-east boundary of Maine, the extradition of certain criminals was https://en.wikipedia.org/wiki/Alexander_Baring,_1st_Baron_Ashburton 7/2/2015 Vol. 54. Page 542. Warranty Deed. Dower not released. Dated March 1st, 1828. Recorded April 26, 1831. Alexander Baring and Henry Baring both of the City of London in the County of Middlesex and Kingdom of Great Britain, Esquires, Joseph R. Ingersoll of the City of Philadelphia, in the county of Philadelphia and State of Pennsylvania Esquire, John Richards of Boston in the County of Suffolk and Commonwealth of Massachusetts and William Miller of Philadelphia aforementioned, Esquire Devisees in trust of the estate of William Bingham of said Philadelphia Esquire, deceased and John Richards and Joseph R. Ingersoll aforementioned in our own right for one thousand dollars conveys to Benjamin and Enoch Spurling, John Manchester , Junior Samuel Gilpatrick and Aaron Wasgatt all of Mount Desert, in the County of Hancock and State of Maine. "A certain tract or parcel of land lying and being in Mount Desert Island, in the town of Eden and Mount Desert aforementioned, and butted and bounded as follows, viz: Beginning at the north west corner bounds of lot number seventy three which is the south east corner bounds of lot number seventy one, thence running south eighty nine degrees east, on the head line of the shore lots, four hundred and sixty rods , to the northeast corner bounds of lot number eighty five, occupied by John Clements, thence continuing the same course, one hundred and eighty rods to a cedar: thence north, one degree east two miles and one hundred rods; thence north eighty nine degrees west, crossing the southern end of the northern 6' The Organization and Functions of Anglo-American Merchant Bankers, 1815-1860 I P RIOR to the Civil War in the United States much of the economic development of the country was financed by means of European credit, extended for both short and long terms. The flow of capital was chiefly from England and considerable Continental capital moved through England to the United States. A few firms in England were the chief instruments in this process of financing American trade and marketing American securities. These Anglo-American merchant bank- ers are the subject of this paper. Certainly any light that can be shed upon the history of international private finance should be a welcome addition to our historical knowl- edge. In almost any period that might be mentioned the man in the street has regarded the banker, especially the international banker, as offering no service except a repository for the inflowing shekels. Even economic historians have tended to consider the functions of Anglo- American houses as primarily of a banking nature. This paper consti- tutes little more than a sketch of the organization and functions of these merchant bankers, but details and qualifications of generalizations must await more extensive publications at a later date. Before going further perhaps I should answer the question, "What is meant by the term, 'merchant banker'?" This entire paper is intended to answer that question, but at this juncture I refer to a small group of firms, located chiefly in London, which performed a large variety of services in forwarding American business enterprise, both domestic and foreign, in the period under discussion. The firms, all doing business under the label of "merchants," belonged to at least two categories. One type specialized in financing the export of some particular product from the United States: Dennistoun and Company of Liverpool, predominantly concerned in moving American cotton to northern English consumers, is an example of this kind of business enterprise. In contrast, the group of firms discussed in this 1 This paper is based on the research of Muriel E. Hidy on George Peabody, Merchant and Financier (unpublished thesis, Radcliffe College, 1939) and that of Ralph W. Hidy on the history of Baring Brothers and Company, Ltd. 53 Sexton completed his D.Phil. at Worcester College, JAY SEXTON . DEBTOR DIPLOMACY Finance and America foreign Relations n the Civil War Era 1937-1873. Oxford I2 Introduction Introduction Clarendan Pass, 13 2005 The unprecedented power of an elite group of investment banks and In the United States, as well, leading figures possessed connections to international financiers also contributed to the convergence of finance and both the financial and political spheres. American agents of the top diplomacy. The mid-nineteenth century witnessed the great British- British firms, such as August Belmont, the Rothschilds' representative based banking houses reach the pinnacle of their power and influence in based in New York, and Barings' consultants in Massachusetts, Thomas American affairs. Led by Baring Brothers, the Rothschilds, and George TWW Wren Ward and Daniel Webster, were also highly influential politicians Peabody and Co. (the predecessor to the house of J. P. Morgan), banks in and lobbyists. Belmont, after a brief stint as U.S. minister to Belgium, the City of London were the architects of nearly every facet of the served as the chairman of the Democratic National Committee (from Atlantic economy. In addition to negotiating loans and marketing Ameri- 1860 to 1872), while Webster, in addition to being a leading Whig can securities abroad, banks such as the Barings and Rothschilds under- politician of the era, twice served as secretary of state (1841-3, 1850-2). wrote transatlantic trade, provided insurance, exchanged currencies, and Similarly, American expatriate bankers in London, such as Joshua Bates compiled influential market reports. 27 Directing the westward flow of of Baring Brothers and George Peabody and his partner J. S. Morgan capital across the Atlantic, however, remained the central function of the (father of P.), served as conduits between financial and political leaders leading transatlantic banks. Lured by high interest rates and the per- on both sides of the Atlantic. Maintaining intimate relations with leaders ceived fidelity of fellow Anglo-Saxon debtors, these London-based banks in both nations, men such as Bates are the forgotten, though vitally connected Britain and the United States through their (and their clien- important, actors in nineteenth-century American foreign relations. In- teles') investments in American securities. Ninety percent of the United deed, New York bankers and merchants of the period SO considered States' foreign indebtedness in 1861 was of British origin 28 themselves experts in foreign affairs because of their experience in inter- The financial and commercial power of leading transatlantic financiers national trade and finance that they referred to themselves as "states- extended to them significant political and diplomatic influence on both men. "32 sides of the Atlantic. In addition to possessing the power to bail out These transnational banks established a network of high finance and foreign governments in financial straits, leading British bankers, such as high politics that connected Britain and the United States and merged Thomas Baring, Lionel de Rothschild, and William Brown (head of the international finance with international relations. The involvement of Liverpool firm Brown Brothers), also served as members of Parliament. these financiers, many of whom were British, in American politics was "There are six great powers in Europe," a French statesmen declared in nothing new. Baring Brothers, for example, had long served as the official 1818, "England, France, Prussia, Austria, Russia and Baring Brothers. financial agency of the U.S. Government in Europe and extended credit The Barings and Rothschilds, Lord Byron asserted in Don Juan, "are the to Washington for purposes ranging from the Louisiana Purchase in 1803 true lords of Europe. Recent British scholarship has emphasized the to propping up the Bank of the United States in the 1820S and 1830s. The political power of financiers in the City and their close links to politicians direct participation of financial leaders in the diplomatic settlements of and statesmen in Westminster. The work of Niall Ferguson, P. J. Cain, the mid-nineteenth century, however, superseded this previous overlap- and A. G. Hopkins all point to the existence of a politically active group of ping of finance and diplomacy. At several times in the years of this financial leaders who helped shape British foreign policy, imperial ex- study_namely the Webster-Ashburton Treaty of 1842, the Joint Claims pansion, and, in the larger picture, the diplomacy of Europe's great Commission of 1853-5, and the preliminary talks of the Treaty of powers. 31 Washington in 1870-financiers doubled as diplomats and were directly 27 Ralph Hidy, "The Organization and Functions of Anglo-American Merchant involved in negotiating international agreements. Bankers, 1815-60," Journal of Economic History, I (1941), pp. 53-66. In these instances, financiers sought to promote Anglo-American 28 Davis and Cull, International Capital Markets, p. 17. This percentage only declined to peace by assisting and, at times, prompting policy-makers to calmly and 83 percent in 1875. 29 Philip Zeigler, The Sixth Great Power: Barings, 1765 1920 (London, 1988). 30 Byron quoted in Ferguson, The Cash Nexus, p. 280. 1. For a recent study that highlights the overlap and connection between leaders in finance and politics during this period, see Sven Beckert, The Monied Metropolis: New York 31 Cain and Hopkins, British Imperialism, p. 13; Ferguson, The Cash Nexus: and Fergu- City and the Consolidation of the American Bourgeoisie, 1850 1896 (New York, 2001). Quote son, The House of Rothschild. from P (if 14 Introduction Introduction 15 rationally disentangle cantankerous and oftentimes complex diplomatic At no time was the power of leading financiers in London more apparent, disputes in isolation from the extreme demands made by public opinion. nor Americans' need for foreign capital greater, than during the Civil "I consider your interest and mine, and that of the country," Ward War. Lacking the infrastructure and the means to fund a protracted war, informed Bates during the Maine boundary dispute, "identical with both the Union and the Confederacy sought foreign financial assistance. soundness and stability and good order.'(33 At other times financial Each side quickly integrated plans to attract foreign capital into their interests functioned as behind-the-scenes lobbyists and planted favorable larger diplomatic strategies. Within weeks of the bombardment of Fort articles in the British and American press. All of this, of course, was in Sumter and even before Congress had authorized a foreign loan, U.S. addition to their normal duty of deciding whether and on what conditions Secretary of the Treasury Salmon P. Chase dispatched Rothschild to grant loans requested by the federal and state governments of the American agent August Belmont across the Atlantic to negotiate a loan United States. However, as we shall see, though the intervention of with a British banking house. The newly formed Confederacy was not far the financial lobby and the objective of restoring confidence in the behind as Southern emissaries in Britain sought takers for Confederate financial markets helped preserve peace and often laid the groundwork bonds in the war's first year. Even after these early efforts failed to attract for treaties, this did not always translate into thorough and far-sighted foreign investment, Union and Confederate statesmen attempted diplomatic agreements. throughout the war to procure the financial backing of a European There can be little question that the political and financial power of bank. Other financial operations-such as denigrating the other side's European financiers made them key figures in mid-nineteenth-century finances and obstructing the enemy's purchasing operations-also be- international relations. Accordingly, their views regarding American came significant components of the international strategies of the Union politics, diplomacy, and, of course, investment opportunities are central and the Confederacy. to this study. Even in issues concerning domestic American politics, the Given the importance of finance and diplomacy in determining the views of financiers across the Atlantic yielded direct consequences. For war's outcome, it is surprising that more attention has not been devoted example, outside investment in the American South after the Civil War to this subject. It is also surprising given the recent wave of publications was essential to Republican plans for the economic and political recon- on the international dimensions of the Civil War. British public opinion, struction of the former Confederate states. Indeed, the Republican state Confederate diplomacy, and the threat of European intervention have all governments in the South might have been able to cling to power longer been the subject of recent monographs. 35 Despite this scholarly interest had European financiers been willing to provide investment capital for in the international history of the war, however, the financial aspects of Southern states and railroads, thereby assisting Republican efforts to the conflict remain largely neglected. Indeed, it has been more than modernize the Southern economy and mitigating the effects of the twenty years since Richard Burns admitted that "one of the oddest Panic of 1873. How foreign capitalists viewed the South and why they aspects of Civil War historiography is the lack of good studies of the chose not to invest in the region after the war, therefore, is a question of war's economic impact overseas. "36 Some "economic" aspects of the war, great significance-a question, it should be added, that historians have of course, have attracted the attention of historians. The so-called "cotton not only failed to answer, but one that they have generally failed to even ask. In this sense, European financiers were players on the international is For recent work on the international dimensions of the Civil War, see Howard Jones, stage who, though not always given a leading role in treaty negotiations Union in Peril (Chapel Hill, 1992); R. J. M. Blackett, Divided Hearts: Britain and the American Civil War (Baton Rouge, 2001); Alfred Grant, The American Civil War and the and policy decisions, were vital supporting actors who shaped the course British Press (Jefferson, N.C., 2000); Charles Hubbard, The Burden of Confederate Diplomacy, of mid-nineteenth-century foreign relations. (Knoxville, 1998); Howard Jones, Abraham Lincoln and a New Birth of Freedom (Lincoln, Neb., 1999); Dean Mahin, One War at a Time (Washington, 1999); Robert Young, Senator 33 James Murray Mason: Defender of the Old South (Knoxville, 1998); Martin Crawford, The Ward to Bates, 6 January 1839, Thomas Wren Ward Papers, Massachusetts Historical Ingla American Crisis of the Mid-Nineteenth Century: The Times and America, 1850-1862 Society. (London, 1987). The standard works on the topic remain D. P. Crook, The North, the South, 34 For a work that does briefly consider this issue, see Mark Summers, Railroads, and the Powers, 1861 1865 (New York, 1974); and Brian Jenkins, Britain and the War for the Reconstruction, and the Gospel of Prosperity: Aid under the Radical Republicans, 1865 1877 Union, 2 vols. (I London, 1974 80). (Princeton, 1084). in Richard Burns, Guide to American Foreign Relations since 1700 (Oxford, 1983), p. 293. The Baring Years, 1837-1861 21 Daniel Webster. Given the power and influence of the firm, it is impos- I sible to understand American foreign relations, particularly with Britain, without considering the prominent role played by Baring Brothers. Other The Baring Years, 1837-1861 British-based banks also developed relationships with the United States in this period. Firms such as George Peabody and Co. and, in later years, the Rothschilds entered the American market and became active in both "Ask about anything" concerning American securities, one American financial and political matters. TWW traveler in Britain remarked in the 1850s, "and the reply is, 'What does The formation of American foreign policy in the decades preceding the Mr. Thomas Baring say or think?' Indeed, contemporaries and histor- Civil War, of course, was not determined by decisions taken in the ians alike have not disputed the prominent position Baring Brothers bank headquarters of London banking houses. The ideology of "Manifest enjoyed in American finance in the decades before the Civil War. 2 The Destiny, "4 the desire to obtain Pacific ports and expand the nation's London firm dominated its European rivals in the business of American export markets, 5 and the aspirations and anxieties of leading statesmen securities and, in the early years of this period, was one of the leading and propagandists6 dominated the era and merged, particularly under the merchant houses in the cotton trade. Barings were kept informed of Polk administration, to fuel the remarkable extension and consolidation political and economic developments across the Atlantic through their of the United States' continental empire. American foreign policy in this correspondence with scores of American banks and agents. The bank's period, as one historian has aptly put it, was "the diplomacy of annex- position in American finance was further underscored by its position as ation." The very process of this expansion, combined with the need to the official financial agency of the U.S. Government in Europe. Barings develop the nation's infrastructure, however, necessitated large sums of enjoyed a comparable status with several states, canal companies, and foreign capital. The twenty-five years preceding the Civil War thus railroads. The firm's supremacy in Anglo-American business was SO witnessed an unprecedented increase in the nation's foreign indebted- complete that in 1846 Joshua Bates, an American partner in the London ness. As we shall see, the United States' reliance on foreign capital created house, declared that "as we now stand the permanent means of the House problems for American diplomats during the border disputes of the 1840s would enable us to buy out all our competitors and have a half million to and the attempts to construct an isthmian canal in the 1850s. Moreover, spare. "3 the depression that followed the Panic of 1837 led several states to default What is rarely mentioned. however, is that the financial and commer- and/or repudiate their debts-actions that not only provoked foreign cial prominence of Baring Brothers imparted tremendous political and creditors to intervene in state politics, but that also led European capit- diplomatic influence to the firm. It was no accident that the bank became alists to differentiate the states north of the Mason-Dixon line from those intimately involved in American politics and foreign relations during this south of it in the run-up to the Civil War. period Correspondence between Joshua Bates in London and the bank's agent in the United States, Thomas Wren Ward, was as concerned with politics and diplomacy as it was with finance and business. Moreover, the 4 Albert Katz Weinberg, Manifest Destiny: A Study of Nationalist Expansionism in firm maintained close relationships with leading statesmen on both sides American History (Baltimore, 1935); Reginald Horsman, Race and Manifest Destiny: The of the Atlantic, particularly with the Whig leader from Massachusetts Origins of American Racial Anglo-Saxonism (Cambridge, Mass., 1981); Anders Stephanson, Manifest Destiny: American Expansionism and the Empire of Right (New York, 1995). 5 Norman Graebner, Empire on the Pacific: A Study in American Continental Expansion 1 Ward to Bates, I June 1852, Thomas Wren Ward Papers, Massachusetts Historical (New York, 1955); Kinley Brauer, "Diplomacy of American Expansionism, 1821-1860," in Society (henceforth MHS). William Becker and Samuel Wells (eds.), Economics and World Power (New York, 1984). 2 For the best works on the Barings, see Ralph Hidy, The House of Baring in American 6 Frederick Merk, Manifest Destiny and Mission in American History: A Reinterpretation Trade and Finance (Cambridge, Mass., 1949); Philip Zeigler, The Sixth Great Power: (New York, 1963); Thomas Hietala, Manifest Design: American Exceptionalism and Empire Barings, 1765-1929 (London, 1988). (Ithaca, 2003). 3 Bates to Ward, 5 April 1846, Ward Papers, MHS. 7 David Pletcher, The Diplomacy of Annexation: Texas, Oregon and the Mexican War (Columbia, Mo., 1973). 40 Debtor Diplomacy The Baring Years, 1837-1861 4I bluntly informed another American agent, "and that he has told you that ations with Lord Ashburton, however, Webster chose not to expend the they cannot borrow a dollar, not a dollar. "79 "The condition of American political capital that would be needed to secure passage of the forthcom- credit in Europe," Robinson concluded, "is a source of deep humiliation ing treaty on a very unpopular resolution that was nakedly in the interests to every American who visits that section of the world. "80 of foreign capitalists, particularly his employers. Denied access to the corridors of power in Washington, Barings opted to go public with their grievances against defaulting states. In the age of rigid Victorian morality The RESTORING AMERICAN CREDIT and piety, Barings American agent Thomas Wren Ward hoped "acting on the public sentiment through the press and keeping up a constant Despite the humiliation of Americans abroad, it was European creditors, annoyance and moral pressure" might be the best tactic to get states to 1844 not American debtors, who labored to correct the actions of the nine resume the interest payments on their debts 85 defaulting American states. As we have seen, leading European banks The state of Pennsylvania offered a perfect testing ground for such an unsuccessfully pressed the Tyler administration to exert its influence on approach. If there was a state that could be compelled to honor its the delinquent states in 1841. The following year British holders financial obligations through moral and religious appeals, it was Pennsyl- of defaulted American securities composed an "Appeal by Holders of vania, home of the Quakers and a hotbed of religious revivalism. The American State Stocks" in the London Times and petitioned Edward state was also one of the wealthiest in the Union and, in Philadelphia, Everett, head of the U.S. legation in London, and Foreign Secretary housed many of the nation's leading banks and merchant firms. Further- Lord Aberdeen to censure the offending states. Again, nothing came of more, Barings "had a large stake with the Pennsylvania Banks" and, as we the appeal except Aberdeen's statement that the British Government had have seen, more than two-thirds of the state's $34 million debt was held "no concern with the securities in question and no power to compel abroad. 86 Accordingly, Baring Brothers earmarked £2,000 for a public payment of the sums required. "81 Even the nationalistic Foreign Secre- campaign to restore the financial integrity of Pennsylvania in June 1843. tary Lord Palmerston stated that "British subjects who buy foreign Within weeks, five other European investment banks, including Hope securities do SO at their own risk and must abide the consequences. "82 and Co., Overend, Gurney and Co., and Jones, Lloyd and Co., joined In his famous circular of 1848, Palmerston informed British capitalists Barings and pledged funds to the propaganda campaign to compel that the government would not help them recover their defaulted invest- defaulting states to resume payment. 87 Organized under the rubric of ments in foreign securities that could have been employed "in profitable the "Committee on State Debts," these banks engineered a "restoration undertakings at home. "83 campaign" comprised of public meetings of bondholders, insertions into With no hope of assistance from the British government, leading the press, the lobbying of state officials, and the enlisting of "the clergy to investment banks in London took matters into their own hands. Baring point out from the pulpit the moral wrong and danger to the people of not Brothers first urged Daniel Webster to push "some strong Resolutions acting honestly. "88 against repudiations" through Congress. 84 Preoccupied with his negoti- Barings' agent Thomas Wren Ward executed this campaign from his Two 79 office in Boston. Politically connected, yet aware of the need to be "kept Duff Green to Calhoun, 24 January 1842, in Meriwether (ed.), The Papers of John C. Calhoun, vol. 16, pp. 83-6. See also Bates to Ward, I August 1842, Ward Papers, MHS; out of sight" to avert the charge of foreign meddling in American affairs, Leland 80 H. Jenks, The Migration of British Capital 1875 (London, 1927), p. 105. Ward was ideally suited for such a weeks, the Boston 81 For Robinson's mission, see House Doc. No. 197, 27th Congress, 3rd Session, pp. 1-6. McGrane, Foreign Bondholders, pp. 51-2. 82 Quoted in Reginald McGrane, "Some Aspects of American State Debts of the Forties," American Historical Review, 38 (July 1933), pp. 673-86. 85 Ward to Baring Brothers, 30 January 1844, BP. 83 86 Bates to Ward, 18 April 1842, Ward Papers, MHS. For Palmerston's circular, see The Economist, 21 April 1849, p. 436; D. C. M. Platt, 87 Baring Brothers to Ward, 3 July 1843, BP. The two other banks were Denison and Co. Finance, Trade and Politics in British Foreign Policy, 1815-1914 (Oxford, 1968), pp. 34-41, 398-9. and Reid, Irving and Co. 84 Bates to Webster, 13 June 1842, DWPC, 5, pp. 218-20; Bates to Webster, I5 April 88 Bates to Ward, 3 October 1843, Ward Papers, MHS; Baring Brothers to Ward, 18 July 1842, Ward Papers, MHS. 1842, BP. Ward to Baring Brothers, 25 July and I August 1843, BP. 42 Debtor Diplomacy The Baring Years, 1837-1861 43 banker established a network of prominent figures from politics, the Baltimore and Ohio Railroad and former secretary of state and secretary pulpit, and the press to carry out his instructions from London. Ward of the treasury under Andrew Jackson (McLane had supported the Bank convinced many Presbyterian and Baptist leaders in Pennsylvania of the of the United States to the annoyance of his superior). Coordinating his need for "the religious world to speak out" against the sin of financial efforts with the larger campaign, Latrobe inserted reprints of Nathaniel infidelity. Led by Francis Wayland of Brown University, religious leaders lale's articles into the Baltimore press, distributed pro-resumption lit- distributed antirepudiation literature to their congregations and inserted erature to state politicians, and drafted memos and bills that influential similar articles into their church publications. 90 Politically, Ward hired friends introduced in the state legislature. Baring Brothers was not the William B. Reed, a former state senator, and Elihu Chauncey, a promin- only British bank that had a vested interest in Maryland's financial ent Whig banker, as special aides in his behind-the-scenes lobbying and integrity. George Peabody, who began his business career in Baltimore, petitioning of the state government. For the public dimension of the was also one of the state's largest creditors. In 1845, Peabody joined this campaign, Ward appointed Nathaniel Hale, the editor of the Boston Barings in contributing £1,000 to the Whig party and to the gubernatorial chamming Daily Advertiser. Under Hale's leadership the Advertiser became the campaign of Thomas E. Pratt, who advocated full repayment of the organ of foreign and domestic financial interests and espoused the state's debt.95 moral, legal, and economic benefits of the repayment of state debts. Two prominent articles published in the Democratic Review and the Hale's articles soon began to reappear in journals in New York, Balti- North American Review, and republished as pamphlets on both sides of more, and even New Orleans after Ward would send newspaper editors the Atlantic, were the most visible products of the restoration campaign. clippings along with a check. Payments were typically $10 for the inser- Authored by Alexander Everett and future Supreme Court justice Ben- tion of an article that advocated the resumption of payments on state jamin Curtis, respectively, these publications were secretly commissioned debts and $20 for an editorial. ¹1 by British banks and were based on outlines provided by Thomas Wren As Ward's efforts in the press demonstrate, the campaign in Pennsyl- Ward. 96 "The providence of God," Curtis's piece in the North American vania soon became an effort on a national scale to condemn financial Review averred, "persuades us not to repay [His] kindness by breaking delinquency and to encourage all defaulting states to honor their com- His law of justice." There were more than just religious and moral mitments. Once the Pennsylvania campaign was underway, Ward turned reasons, however, for states to resume debt repayment. "The conduct his attention to Maryland. In addition to financing the Chesapeake and of a few States," Curtis accurately pointed out, Ohio Canal Company and the Baltimore and Ohio Railroad Company, has not only destroyed their own credit, and left their sister States very little to Baring Brothers was the foreign agent of the state. "It is the only state," boast of, but has so materially affected the credit of the whole Union, that it was Joshua Bates wrote, "which our fame would suffer by in case of de- found impossible to negotiate in Europe any part of the loan authorized by fault. "92 Unfortunately for Bates, the state did default even after a bailout Congress in 1842 It is the truth, and it should enter into the heart of every loan from Barings in January 1842.° 93 After corresponding with the state's American, that this loan was refused because Europe doubted the honor of this treasurer, Ward went straight to the governor with his message that the country. 97 only "important point is to get the state to commence paying its inter- This argument was particularly close to the heart of Daniel Webster. est. "94 Ward received assistance in the Maryland campaign from John H. After his successful negotiations with Ashburton failed to materialize into B. Latrobe, a Baltimore attorney, and Louis McLane, the president of the the loan Baring Brothers promised, Webster offered his services to Ward 90 in the restoration campaign in order to further his cause of attracting Hidy, The House of Baring, pp. 318-19 For Whig evangelicals and the state debt issue, see Richard Carwardine, Evangelicals and Politics in Antebellum America (Knoxville, 1997), pp. 78-9. 05 Dorothy Adler, British Investment in American Railways, 1834-1898 (Charlottesville, 91 Ward to Unknown, 13 January 1844, BP. 1070), p. McGrane, Foreign Bondholders, p. 97; Baring Brothers to Ward, 18 July 1845, 92 Bates to Ward, 3 November 1841, Ward Papers, MHS. HP Maryland Treasury to Ward, 27 March 1843, BP; Baring Brothers to McLane, 18 966 Curtis took no money for his article. See Ward to Baring Brothers, 20 November and 8 January 1841, BP. I December 1843, BP. 94 Ward to Baring Brothers, 6 December 1842, BP. 97 North American Review 58 (January 1844). p. 150. 44 Debtor Diplomacy The Baring Years, 1837-1861 45 British investment to the United States. Webster, however, was also meet the interest payments due on its debt in 1845 (much to the chagrin motivated by another consideration. "He is desirous of sustaining his of European capitalists, half of each coupon was paid in paper money) reputation as a great statesman and in all he does will have a view to that," Ward reported to Barings' headquarters in London, "but, he wants and before fully resuming its obligations in 1847. In Maryland, a resumption must have money-and will in what he does or omits look very much to its bill passed in 1847, but only after Latrobe kept one legislator sober result to himself. "98 Webster was, Ward would later put it, "a sort of enough to vote and blackmailed a few more. 103 Illinois, Indiana, and public property. In need of money to resume his political career after Louisiana resumed payments in the mid-forties, though the Barings resigning as secretary of state, Webster saw the Barings' campaign as an were less active in promoting resumption in these states. In Michigan, the matter was complicated by the failure of the state's financial agencies opportunity to advance both his political agenda and his private interests. (the Bank of the United States and the Morris Co.), which went under Accordingly, Webster condemned defaulting states in a public speech and offered his opinion to Barings regarding the legality of the Maryland owing the state roughly $2 million dollars of a bond issue it marketed. debt. He then sent a bill to Ward along with a recommendation for The state resumed interest payments on the bonds it had received Barings to issue a loan on behalf of a canal company of which he also payment from in 1846 but refused to do the same for the unpaid bonds. served as legal counselor. 100 "It is a humiliating fact," Ward wrote, "that In 1855, the state partially converted these bonds to new issues but, in the the first talents in the country even must be bought and paid for in the process, repudiated a portion of its debt. 104 We shall return later to the highest causes." Because of his high asking price and the bank's fears that debts of Mississippi, Arkansas, and Florida. "the fact of his being paid would lessen his influence," Webster's services The resumption campaign of the 1840s illustrates at once both the United States' need for foreign capital and the power and influence were never fully used during the campaign. 101 After all, Webster's ition regarding state debts was set: as a Whig who advocated investment pos- yielded by British banks, particularly Baring Brothers. Despite prevailing for internal improvements, he would condemn the defaulting states hostile attitudes to foreign capitalists, few Americans resisted the inter- regardless of whether he was paid for it. Barings recognized this and, in vention of European financiers into the internal affairs of several states. order to avoid charges of bribery and meddling in American politics, kept Part of this was a result, no doubt, of the care Barings and others took to Webster at an arm's length during the restoration campaign. In this stay out of public view. However, this was also a consequence of the simple fact that American leaders, even those at the state level, recognized matter, the Barings were both politically and financially shrewd. Even without the assistance of their most powerful American ally, that they would need foreign capital in the future. "It appears that states Baring Brothers' campaign to restore the financial integrity of the United repaid," the economic historian William English maintains, "in order to States began to pay off by the middle of the decade. 102 In Pennsylvania, maintain their access to international capital markets. "105 Repudiation a plan advocating increased taxation drawn up by Ward provided the was simply not a viable option for a developing nation that was in need of basis for a bill passed by the state legislature. The state began to partially investment during a transportation revolution. To make this point to American leaders, Baring Brothers was willing to spend tens of thousands 98 of dollars on a behind-the-scenes lobbying and propaganda campaign. 99 Ward to Baring Brothers, 15 September 1843, BP. 100 Ward to Bates, I5 January 1846, Ward Papers, MHS. The bank's ability to do all of this-collaborate with its European com- Ward to Baring Brothers, 21 September 1843, BP; Ward to Bates, 14 November 1843, petitors, use its network of American correspondents, enlist the support for Ward Papers, MHS; Webster's legal opinion, 019184, BP. Webster served as legal counselor of prominent journalists, politicians, and even evangelicals-illustrates the Chesapeake and Ohio Canal Co. He urged Barings to issue a loan on behalf of the company "in efforts to restore the credit of Maryland, and to enable her to complete her that it had political, as well as financial, capital in the United States. July great work." See Webster to Bates, 30 July 45, DWPC, 6, pp. 91-4; Webster to Ward, 31 pp. 98-9. 1845, DWPC, 6, pp. 95-6; Webster to Baring Brothers, 14 October 1845, DWPC, 6, 101 Quoted in McGrane, "Some Aspects of American State Debts of the Forties," 101 Hidy, The House of Baring, p. 328. 10- pp. 673-86; Ward to Baring Brothers, 30 March 1844, BP. See also Bates to Ward, 4 Ratchford, American State Debts, pp. 112-14; McGrane, Foreign Bondholders, November 1844, Ward Papers, MHS. pp. 143 67. Michigan repudiated an estimated $2 million of its debt. 102 Important, as well, was the end of the economic depression. 101 English, "Understanding the Costs of Sovereign Default," pp. 259-75- See, for example, Morris to Corcoran, 10 September 1843, Corcoran Papers, Library of Congress. 46 Debtor Diplomacy The Baring Years, 1837-1861 47 What Baring Brothers could not seem to do, however, was to prevent can annexation of Texas, Thomas Wren Ward articulated the familiar cantankerous border disputes from jeopardizing its business in American position that the national interest of avoiding war-with Mexico, Britain, securities. Similar to the jittery reaction of British capitalists to the or any other potential rival-far outweighed any territorial advantages Northeastern border controversy earlier in the decade, controversy sur- that were to be had. 109 Ward was fortunate that this was also the position rounding the annexation of Texas and the Northwestern border in the of the Whig party and, in particular, presidential candidate Henry Clay. Oregon territory left its mark on the financial markets. Because of the In his public "Raleigh Letter" of April 1844, Clay argued that annexation threat of conflict developing from these issues, British dealers of Ameri- would upset domestic and sectional harmony, divert resources from can securities were unable to reap the rewards of their restoration cam- development, and, most of all, run the risk of provoking a war with paign that had produced action against repudiation in the high-profile Mexico. Considerations of public finance also factored into the opposition state of Pennsylvania in 1845. "It would be a pity," Joshua Bates admit- to annexation. In the same letter, Clay contended that the financial ted, "to disturb this state of things by any doubts about the relations condition of the United States made it unpropitious to assume the between the two countries. "106 The depression in American securities in debts of Texas, a likely consequence of annexation. 110 Although Clay's London, however, was not without its advantages. Baring Brothers was opposition to annexation struck a chord amongst conservative financiers on the lookout for bargain deals SO the bank "can make money, for such as Ward and may have helped him energize the Whig base in certain American stocks are very cheap. "107 Aside from such speculations, the Northern states in the election of 1844, it failed to counter in electoral and diplomatic disputes were neither in the interests of British capitalists nor political terms the Democratic position that annexation would extend their American debtors. individual liberty without upsetting domestic harmony. 111 In contrast to the Webster-Ashburton negotiations of a few years With expansionism gaining ground in the United States, the position earlier, financial interests found themselves largely on the diplomatic of British capitalists on the Texas question became all the more import- sidelines, particularly in the United States, during the Texas and Oregon ant. Although the prospect of a free-trading Texan republic appealed to questions. The triumph of the darkhorse Democratic candidate James capitalists in Britain (as did a potential antislavery bulwark to American Polk in the election of 1844 and clamor in the Democratic press about the expansion), their support of British involvement in Texas was limited. As nation's "Manifest Destiny" put expansionism at the top of the agenda. Lelia Roeckell has shown, British financiers were more interested in To be sure, American capitalists were attracted to the possibility of protecting their investments in Mexico than they were in schemes to acquiring new land, markets, and ports on the Pacific and were thus not incorporate Texas into their economic orbit (indeed, Alexander Baring entirely opposed to territorial expansion. However, particularly had represented British holders of Mexican bonds in the 1830s). 112 To be amongst the nation's financial leaders who were intimately connected sure, an independent Texas promised future profits and, by ending the with European creditors, the overriding objective of maintaining inter- conflict with Mexico, could be the best means of restoring stability in the national peace mitigated the appeal of Manifest Destiny. Thus, American region and protecting British investments. Thus, British bondholders financiers collaborated with their European partners in an effort to guide the currents of expansionism in a direction that would avoid the great 109 See, for example, Ward to Baring Brothers, II December 1843, 22 and 29 April 1845, calamity of Anglo-American war. This was no easy task, least of all BP. because traditional transatlantic financial interests such as the Barings 110 Henry Clay, "To the Editors of the Washington Daily National Intelligencer," 17 had few ties with the Democratic Polk administration. April 1844, in Melba P. Hay (ed.), The Papers of Henry Clay, vol. IO (Lexington: University Press of Kentucky, 1991), pp. 41-6. Nonetheless, the Barings did what they could to promote policies that 111 For the Texas issue in domestic politics, see Michael A. Morrison, "Westward the would maintain Anglo-American peace. In regard to the potential Ameri- Curse of Empire: Texas Annexation and the American Whig Party," Journal of the Early Republic, IO (1990), pp. 221-49. For the view that Clay's opposition to annexation might 106 Bates to Ward, 3 May 1845, Ward Papers, MHS. have helped him in the North in the election of 1844, see Lex Renda, "Retrospective Voting and the Presidential Election of 1844: The Texas Issue Revisited," Presidential Studies 107 Bates to Ward, I December 1845, Ward Papers, MHS. 108 For the fullest presentation of this argument, see Graebner, Empire on the Pacific; and Quarterly, 24 (1994), pp. 837-54. 112 Lelia Roeckell, "Bonds over Bondage: British Opposition to the Annexation of Hietala, Manifest Design. Texas," Journal of the Early Republic, 19 (Summer 1999), pp.257-78. 48 Debtor Diplomacy The Baring Years, 1837-1861 49 supported diplomatic efforts to secure and guarantee the republic's when American statesmen demanded all territory south of the 49th independence and were involved in an effort for Texas to assume a parallel, while their British counterparts were willing only to have the portion of Mexico's debt in exchange for British mediation in 1840. 19th as the border as far as the Columbia River. Controversy over the Nonetheless, the limited nature of British financial involvement in Texas disputed area north of the Columbia and south of the 49th increased in should be stressed. There is no evidence in the records of the major the following decades when the British Hudson's Bay Company set up transatlantic banks, for instance, that suggests they were involved in shop in the area and American merchants and businessmen demanded schemes to extend a loan to Texas in exchange for emancipation, a staple access to the deep water port of Juan de Fuca Strait, particularly after a of Democratic pro-annexation propaganda. Nor did their limited involve- naval mission concluded that the mouth of the Columbia River was too ment in Texan finance constitute a threat to American national security shallow to serve as a port. 117 Matters were further complicated in the years (though the perception amongst Democrats that they did comprise a after the Panic of 1837 when thousands of unemployed Americans sought threat no doubt contributed to the appeal of annexation). Indeed, as the it better life in the West and blazed the Oregon Trail. The White-Hastings annexation drama unfolded and the futility of British policy became clear wagon train of 1842 alone doubled the American population in the Oregon in the mid-184os, British capitalists backed away from supporting Texan territory. 118 The explosion of the American population in Oregon served independence. When Tyler signed the joint resolution that annexed as the basis of John C. Calhoun's policy of "masterly inactivity" during his Texas in early 1845, the Barings in London contended that the British brief stint as secretary of state in 1844-5- Ownership of the disputed government should acquiesce to the action in order to promote Anglo- American harmony. 114 territories, Calhoun calculated, would be solved not by diplomats but by the natural westward migration of American citizens. Overall, the Barings and other transatlantic financial interests played little role in the Texas question. This was primarily the result of the Newly elected President James Polk was more proactive in his efforts to secure American demands in Oregon. In his inaugural address, Polk limited scope of British economic interests there and a reflection of declared that American claims in Oregon were "clear and unquestion- how the annexation controversy only tangentially concerned Anglo- able. "119 Despite this provocative rhetoric, in the summer 1845 Secretary American relations and the foreign indebtedness of the United States. 115 of State James Buchanan offered Richard Pakenham, the British minister The Barings were much more active in the Oregon dispute, which to the United States, all territory north of the 49th parallel, in addition to directly threatened their business as dealers of American securities in Britain. the whole of Vancouver Island. Although Britain had consistently rejected similar offers in the past, American statesmen hoped that the "I think I could settle the Oregon question very soon," Bates declared, boom in American settlers in the region might lead the British to recon- "but professed diplomatists will never settle it. "116 The dispute, however, sider. Pakenham, however, rejected the offer and insulted the Polk was more complex than Bates was willing to admit. Attempts to establish administration in the process by not consulting his superiors in London the border during the Anglo-American Convention of 1818 foundered before doing so. Polk responded by withdrawing the offer, an action that escalated tensions and appeared to express his solidarity with Midwestern 114 113 For this episode, see Rocckell, "Bonds over Bondage," pp. 264-5 Brothers, I June 1845, BP. For Anglo-American relations and the Texas issue, see Sam For Barings and Texas, see Baring Brothers to Ward, 4 April 1845; Ward to Baring Democrats who, in their slogan of "Fifty-four forty or fight," were demanding the entire Oregon territory (which extended to the northern Haynes, "Anglophobia and the Annexation of Texas: The Quest for National Security," in latitude of 54° 40"). Polk's growing belligerence was confirmed in his Haynes and Morris, Manifest Destiny and Empire: American Antebellum Expansionism (Arlington, Tex., 1997), pp. 115-45; Lelia Roeckell, "British Interests in Texas, 1825- annual address to Congress in December 1845 in which he revived the 1846," D.Phil. dissertation, University of Oxford, 1993; Ephraim D. Adams, British Interests Monroe Doctrine (which had laid dormant since 1823) and asserted and Activities in Texas, 1838-1846 (Baltimore, 1910). For an interpretation that stresses the activism 115 of British policy, see Pletcher, The Diplomacy of Annexation. Rocckell contends that "British influence was minimal" in Texas and that "few direct trading links were established between Britain and Texas." See Roeckell, "Bonds over 117 For more on Pacific ports and the Oregon controversy, see Norman Graebner, Empire Bondage," p. 275. on the Pacific (New York, 1955). 116 Bates to Ward, 3 May 1845, Ward Papers, MHS. 118 Jones and Rakestraw, Prologue to Manifest Destiny, p. 175. 119 Quoted in Jones and Rakestraw, Prologue to Manifest Destiny, p. 202. 50 Debtor Diplomacy The Baring Years, 1837-1861 5I American claims to the entire territory. "The only way to treat John the United States were enacted in the summer 1846 just after the Bull," Polk declared, "was to look him straight in the eye. "120 settlement of the Oregon controversy. The economic benefits of freer Staring down the British Government, however, was not the best way trade between the two nations-which would facilitate the British im- to treat British investors. Polk's message sent American securities tum- portation of American grains to help feed the starving Irish who were in bling on the London Stock Exchange, countering the improvement that the midst of the Great Potato Famine-seemed to far outweigh the followed the peaceful annexation of Texas in early 1845. "Business," advantages to be gained in acquiring extra territory in the remote wilder- Joshua Bates reported, "becomes less safe. "121 Accordingly, financial ness of Oregon. "I should hope those belligerent Gentlemen in Congress interests pressed statesmen on both sides of the Atlantic to find a com- would feel quite ashamed of their war speeches," Joshua Bates declared, promise to avert war. Once again, agents of Baring Brothers were at the "when they find they are to have such a market opened to them. 126 center of this behind-the-scenes lobbying effort. In the United States, There was also the question of how the United States would fund a war Thomas Wren Ward personally pleaded with Polk to peacefully resolve against Britain, its largest creditor. "It should be remembered that the dispute in 1845 122 Daniel Webster, having regained his seat in the monied men, for the most part, think very unfavorably of belligerent Senate, publicly called for the now compromise border of the 49th measures for the acquisition of Oregon," one American pamphleteer parallel while he privately advised British leaders to "avoid sharp points" wrote, "and would not deem it prudent to invest money in any govern- regarding Oregon with the United States. 123 Across the Atlantic, Joshua ment stock issued for the purpose of asserting a claim to a worse than Bates pushed for a compromise plan of the 49th parallel as the boundary useless territory on the coast of the Pacific. "127 "The merchants, traders, line, sugarcoated with free navigation of the Columbia River for the shipowners, and capitalists of America are opposed to war," The Econo- duration of the charter of the Hudson's Bay Company (which would mist opined, "the politicians alone are in favour of it!"128 expire in 1859). 124 Upon Bates' prompting, the British economist Nassau Thus, as in the Anglo-American treaty deliberations concerning the Senior endorsed this plan in a prominent article in the Edinburgh Review, Northeastern boundary a few years earlier, there were powerful economic which drew the support of Foreign Secretary Lord Aberdeen. 125 The incentives to peacefully resolve the Oregon dispute. Though the drive for new U.S. minister to Britain Louis McLane, who, prior to being more territory and access to ports on the Pacific coast, as Norman appointed to his post, had assisted the Barings in the restoration cam- Graebner famously argued, pushed Americans westward, economic con- paign in Maryland, also favored the compromise offer of the 49th parallel. siderations also cut the other way and provided a motive for comprom- In addition to the standard economic arguments for avoiding war, ise - particularly if statesmen could arrange a deal in which territory and transatlantic financiers pointed to the likelihood that a decrease in tariffs ports were equitably distributed to both sides. Such was the plan advo- would occur on both sides of the Atlantic if diplomats could settle the eated by Joshua Bates and other financial leaders. This is not to contend, border dispute. Both Peel's Tory and Polk's Democratic governments it should be stated, that financial concerns were decisive to the settlement desired to lower trade barriers between the two nations. Indeed, both the or that some secret free-trade bargain led to the Oregon settlement repeal of the Corn Laws in Britain and the low-duty Walker Tariff in (a contention disproved by historians). 129 Unlike four years earlier 120 Quoted in Walter LaFeber, The American Age (New York, 1994), p. 113. 120 Bates to Ward, 3 February 1846, Ward Papers, MHS. Even before the repeal of the 121 Bates to Ward, 3 May 1845, Ward Papers, MHS. Corn Laws, the Peel government used Baring Brothers to arrange for £100,000 of American 122 Hidy, The House of Baring, p. 127. corn to be shipped to Ireland during the famine. Baring Brothers to Ward, 3 December 123 Webster to Denison (forwarded to Lord Aberdeen), 26 February 1846, DWPC, 6, 1845, BP; Merk, The Oregon Question, p. 312. pp. 126-7; Webster to Haven, 2 February 45, DWPC, 6, pp. 73-4; Pletcher, The Diplomacy 177 A Disciple of the Washington School, Oregon: The Cost, and the Consequences (Phila- of Annexation, p. 304. 124 delphia, 1846). Bates to Ward, I December 1845 and 16 January 1846, Ward Papers, MHS; David 12N The Economist, 3 January 1846, pp. 4-5. Dykstra, The Shifting Balance of Power: American-British Diplomacy in North America, 1842 129 Gracbner, Empire on the Pacific, pp. 137-41; Merk, The Oregon Question, pp. 309-36. 1848 (Lanham, Md., 1999), pp. 85, 104, 120. For the view that trade issues led directly to the Oregon settlement, see Thomas P. Martin, 125 Frederick Merk, The Oregon Question (Cambridge, Mass., 1967), p. 287; Pletcher, The "Free Trade and the Oregon Question, 1842-1846," in Arthur H. Cole, A. L. Dunham, and Diplomacy of Annexation, p. 250; Paul Varg, Nem England and Foreign Relations 1789 1850 N S. B. Gras (eds.), Facts and Factors in Economic History: Articles by Former Students of (London, 1983), p. 182. Edwin Francis Gay (Cambridge, Mass., 1032), pp. 470-91 52 Debtor Diplomacy The Baring Years, 1837-1861 53 when a pro-British, pro-business secretary of state, and a pro-American British financier negotiated the Webster-Ash Treaty, the Oregon With the Oregon question settled and the state debt crisis largely dispute was dominated by the bellicosity of Midwestern Democrats and resolved, British banks anticipated a new boom in investment in Ameri- threats of a third Anglo-American war. "I only regret sometimes," can securities. As Baring Brothers had reported a year earlier, when "the Thomas Ward lamented during the Oregon dispute, "that my influence Texas and Oregon questions are settled and Pennsylvania pays her is not in some degree commensurate with my conviction of the import- August dividends, we should look for some demand for American stock ance of the views I entertain as to the policy of both countries." 130 for there is great want of employment for capital. '133 Indeed, as soon as Although Ward and other financiers may have felt powerless to individu- the Senate passed the Oregon Treaty, Barings began to inquire about ally shape policy, there can be little question that the larger financial and negotiating a new loan for the U.S. Government. 134 commercial interdependence of Britain and the United States that they embodied connected the two nations to such an extent that leaders on both sides of the Atlantic desired to avoid war at all costs. Even Demo- THE MEXICAN WAR LOAN OF 1848 cratic leaders such as John C. Calhoun and Thomas Hart Benton recog- nized by late 1845 that Oregon was not worth a war with Britain and Renewed European interest in U.S. securities came none too soon as the pushed for a compromise settlement at the 49th parallel. 131 In sum, as federal government was in need of cash following the outbreak of the Joshua Bates put it, "for America and England to go to war would be Mexican War in May 1846. Within months, the government's inlays were perfect madness. "132 insufficient to cover the increased expenses of arming and supplying It would also be madness for the United States to get involved in two armies engaged in offensive operations in central Mexico. In 1847, the wars, fought on two fronts, at the same time. A conflict with Mexico U.S. Government ran a deficit of more than $30 million, its largest to loomed in the immediate future in the spring 1846 and, combined with date. The Treasury, under the leadership of Robert J. Walker, responded Britain's deployment of thirty warships to North American waters, by issuing an $18 million, six percent loan. The Polk administration gave prompted American leaders to reconsider their position on the Oregon first priority on the new loan to the Washington, D.C. firm of Corcoran territory. Seeking a way to resolve the crisis without losing face, Polk and Riggs, headed by the Democratic supporter William Corcoran. The deferred the decision to the Senate. On 18 June 1846, the Senate passed bank soon purchased $14.7 million of the issue and attempted to resell the the Oregon Treaty by the comfortable margin of 41 to 14. The final six percent bonds to American investors at a premium. Although there settlement looked much like the plan advocated by Joshua Bates in was much initial demand for the new loan on American markets, by the preceding years: the 49th parallel marked the division between the January 1848 Corcoran and Riggs encountered difficulty in finding takers United States and Canada, Britain received Vancouver Island, and the for the bonds. British banks, in trouble of their own during the London Juan de Fuca Strait and the Columbia River remained open to both financial crisis of 1847, were in no position to bale Corcoran out. 135 Only nations (but the latter only until 1859). Thus, for the second time in Walker's cooperation in postponing the Treasury's collection date, com- less than five years, cool heads prevailed during a diplomatic crisis. bined with the firming of the market in the United States, saved the firm National honor and interest were maintained for both sides, while the from bankruptcy. 136 disastrous economic consequences of an Anglo-American war were avoided. 133 Baring Brothers to Ward, 18 June 1845, BP. 134 Baring Brothers to Ward, 13 July 1846, BP; Baring Brothers to Grinnell, Minturn and Co., 3 June 1847, BP. 135 See, for example, Peabody to Corcoran, 18 October 1847, Corcoran Papers, Library of 130 Ward to Baring Brothers, 22 April 1845, BP. Congress (henceforth LC). 131 For the conciliatory views of some Southern Democrats, see Joseph A. Fry, Dixie 136 This paragraph draws from Henry Cohen, Business and Politics in America from the Age pp. 60-1. Looks Abroad: The South and U.S. Foreign Relations, 1789-1973 (Baton Rouge, 2002), of Jackson to the Civil War: The Career Biography of W. W. Corcoran (Westport, Conn., 1971), pp. 31-61; Timothy Roberts, "The American Response to the European Revolutions 132 Bates to Ward, I January 1846, Ward Papers, MHS. of 1848," D.Phil. dissertation, University of Oxford, 1998; Timothy Roberts and Daniel Walker Howe, "The United States and the Revolutions of 1848," in R. J. W. Evans and BIBLIOGRAPHY MANUSCRIPT AND ARCHIVAL SOURCES Adams, Charles Francis, Diary, Letterbook, and Reminisces of his Trip to England, 1861-2, Massachusetts Historical Society (microfilm). Bates, Joshua, Diary and Letterbook, ING. Barings' Archives (Baring Brothers Bank), London. Baring Brothers, Papers and Records, Library of Congress, Washington, D.C. (microfilm). Baring, Thomas, Letterbook, ING. Barings' Archives (Baring Brothers Bank), London. Belmont, August, Miscellaneous Papers, Library of Congress, Washington, D.C. Bigelow, John, Papers, New York Public Library. Bright, John, Papers, British Library, London. Brown Brothers and Co., Papers and Records, New York Public Library. Boutwell, George, Papers, Library of Congress, Washington, D.C. Chase, Salmon P., Papers, Historical Society of Pennsylvania, Philadelphia. , Papers, Library of Congress, Washington, D.C. , Papers, University Publications of America, Library of Congress, Washington, D.C. (microfilm). Clayton, John M., Papers, Library of Congress, Washington, D.C. Cobden, Richard, Papers, British Library, London. Colfax, Schuyler, Papers, Library of Congress, Washington, D.C. Corcoran, William, Papers, Library of Congress, Washington, D.C. Cushing, Caleb, Papers, Library of Congress, Washington, D.C. Disraeli, Benjamin, Papers, Bodleian Library, Oxford. Fraser, Trenholm and Co., Business Records, Library of Congress, Washington, D.C. (microfilm). Gladstone, William E., Papers, British Library, London. Granville, Earl, Papers, Public Records Office, Kew, England. Great Britain, FO 5/ 1298, Conferences at Washington, Public Records Office, Kew, England. , FO 5/ 1331, Case of the Alabama, Public Records Office, Kew, England. Hotze, Henry, Papers and Letter Book, Library of Congress, Washington, D.C. Kenner, Duncan, Papers, Library of Congress, Washington, D.C. Lincoln, Abraham, Papers, Library of Congress, Washington, D.C. Mason, James M., Papers, Library of Congress, Washington, D.C. Maury, Matthew, Papers, Library of Congress, Washington, D.C. McCulloch, Hugh, Papers, Library of Congress, Washington, D.C. Rib 1/06 Bates John Ward The Sixth pp pp 2084; 220 Som i' G. ward Great Power A history of one of the greatest of all banking families, pp the House of Barings, 1762-1929 PHILIP ZIEGLER ALFRED A. KNOPF New York 1988 Baring Bates: 1827-1847 113 moves round this seems to be now forgotten; and as your House is 7 not a common House, it is not to be measured by common rules - and I have no doubt that the judgment, character and talent which conducts its operations will give it a standing even higher than it has Baring and Bates yet attained.'3 It was freely surmised that Baring's retirement from banking was 327-1847 the step on the road to the peerage he sought so earnestly. 'He has money and lands and Parliamentary influence enough to procure anything he may desire," Bates told Ward.4 Only his everyday associ- ation with commerce seemed a bar. Bob Smith lives here, With Holland dead at the end of 1827, Alexander Baring taking ever Billy Pitt made him a peer, less interest in the bank and Francis discredited, it was clear that Bar- And he took the pen from behind his ear, ing Brothers needed reinforcement, not only at the top but in the ran the jingle when Pitt ennobled Robert Smith as Lord Carrington middle echelons as well. in 1797.5 Now Baring's pen had been taken from behind his ear as Alexander was still in charge, but he was disenchanted with rou- well. For him to become a peer would still have been something tine and resentful of the fact that Holland's death forced him to freakish. He would only have been the second banking creation, and spend more time than he liked in the partners' room. He was rich no industrialist or heir to an industrial fortune was to become a lord enough to live in style on his estates without bothering about his for twenty years. 6 But the possibility, even the probability, existed. income from the bank and his main interest was now in the world of That Baring wanted a peerage seems evident. He had already mar- public affairs. In 1830 he retired. T. W. Ward wrote in alarm: 'I do ried his son into the aristocracy, and in 1830 engineered a match for not think it would be advisable for Mr Baring to leave at a time when his daughter Harriet with Lord Henry Thynne, future Marquess of the eyes of the World are on the House as the sheet anchor of mer Bath. It cost him £50,000, as against the £10,000 his son-in-law put cantile safety and confidence.' In the United States everyone would into the marriage pool, but he felt the money well spent.7 'As the be asking how much money had been withdrawn and whether the Barings want connection and he wants money, it was a natural mar- house could now meet its commitments. Joshua Bates, one of the riage for all the world to insist upon, commented Emily Eden. 8 Yet if two new men brought in to take over Baring Brothers, scoffed at such title was indeed his primary objective, he behaved with remarkable fears: 'For my part, I cannot say I regret it, he said of his senior part independence of mind. All his political life he had been a Whig; then ner's retirement. There was plenty of talent left, and capital too when the Whigs were at last in office, and he might hope to reap the 'Besides, it is ridiculous to have a partner who has long since given up rewards of loyalty, he defected to the Tories. all connexions with mercantile men. The Americans who come over - some of them - expect that Mr Alexander Baring will shew them His waning enthusiasm for the Whig cause had long been appar- If in ent. His conservatism was notorious. In July 1830 he had done his some attention, and they go back dissatisfied if he does not. losing Mr Baring we lose the advantage of his individual respectabil best to restrain his colleagues from an all-out onslaught on the wilt- ity and great wealth as a security for the funds placed in our hands ing Tories9 and he inveighed publicly against the perils of mob we are called on to use double diligence and endeavour to acquire rule. 10 'Such a finished blockhead as the great Baring is, I never wit- that fame for ourselves that he has so justly attained.'2 Six months nessed,' complained O'Connell. 11 He was somewhat offended when later Bates concluded that time had proved him right: 'As the wheel offered no job by Grey in the Whig administration and still more put 112 120 The Sixth Great Power Baring and Bates: 1827-1847 121 responsibility in the matter.'49 But he took offence if he thought living alone and modestly and giving the surplus of his income to the no he was being slighted. In 1845 he discovered that Barings had given poor. 'He is one of the best and most pure-minded of men,' wrote their closest associates in Paris, Hottinguers, power to sign for them. Bates. 56 'I do not understand upon what principle this is done when I am on His brother Thomas was altogether more formidable. Tactful, the spot,' he wrote indignantly, 'and I cannot for one moment allow witty, affable, yet with the Baring aptitude for ensuring that he was any business to be carried on in a manner which I consider as a reflec- taken seriously, he was as ready as his brother to relax when the occa- tion upon myself.'5 His cousin John Baring good-naturedly apolo- sion offered, but far more ready to work when the need was there. 'I gized - 'If there has been any error or irregularity it is I who must feel a want of the desk, and a yearning after the dear Bankers' book cry peccavi's1 - but they had done the same thing in the past and were and the insinuating book of acceptances, he wrote when on holiday to do SO again. in Paris.5 But in fact the book of acceptances was far from being his Thomas Nixson, clerk promoted partner, had retired in mid-1828, favourite reading. He hankered after the more glamorous side of SO that Humphrey Mildmay was the only other partner surviving banking and like Alexander before him preferred the world of high after Holland's death. His new partners treated him with affection finance and international loans to the more humdrum business of ate contempt. 'He is a most estimable man and his punctuality and the counting house. He not merely enjoyed such work, but he was attention to business deserve great praise,' wrote Joshua Bates, but outstandingly good at it. 'Tom Baring writes you about stocks,' Bates he 'suffers from weak nerves, and having had but little experience his told Ward. 'He does that sort of correspondence to admiration - SO natural timidity is thereby heightened.'52 On one occasion he pan- much better than I can that I have made him take charge of that icked, decided the house would need at least £400,000 within the department.'58 next few weeks and wrote letters appealing for help to Hope and Co., In 1835 he joined the family contingent in the House of Com- Hottinguers and other close friends. Bates went into the matter and mons; a conservative like his uncle, and thus at odds with his father found Barings had funds perfectly adequate to meet any conceivable and brother. In 1843 he fought a particularly spirited by-election in need - 'Some arrangement must be made by which I can avoid this the City of London. 'You must read Tom's speeches,' Bates told annoyance of Mr Mildmay's weak nerves. '53 Ward. 'He has astounded everybody by his readiness and even elo Sir Thomas's third son John, was one of the new partners who quence, his manner and fluency are quite remarkable.' '59 Unfortu- began work in July 1828. A curiously elusive figure, his main signifi nately he was opposed by the Anti-corn Law League, who had been cance to the house was that he had gone into business with Joshua stirred up by the great financier, Lord Overstone. Overstone, a pas- Bates and now brought his partner back to join Barings in London sionate free-trader, denounced Baring as being at the best lukewarm 'Able but indolent,' was how Ward described him, and all the - not on the theme. 'I see by the papers that you have given me a very hard very plentiful - traces of his tenure in London suggest a man who hit, which falls the heavier on me as it had not been expected,' was affable, easy-going and somewhat diffident. 'The truth was I was Thomas Baring wrote to his fellow banker. 'I hope you do not very tired of the thing,' he told Bates, when he retired in 1837. If he approve of the coarse manner in which Mr Pattison speaks of Lord had been senior partner it might have been different, 'but being Ashburton and my family' - a reference to the claim of his opponent junior I could not give myself airs, particularly as my seniors are that Baring was standing only to satisfy the ambitions of his uncle workers, and as really it requires pretty close working and watching and had quarrelled with his own family in consequence. 60 to keep the house at its present pitch'.54 After ten years in the busi Baring spent £5485.6.3c on the City of London election but lost ness he retired with £180,000; 'probably the largest fortune gained by 6367 votes to 6532. The following year, however, he enjoyed a by any one individual in business in which there is very little specula walkover at Huntingdon. 'Our business is in good order now and we tion,' commented Bates. He flourished in retirement for fifty years, can spare one or two partners a portion of the time, wrote Bates. 122 The Sixth Great Power Baring and Bates: 1827-1847 123 'Tom will do us credit. He should be Chancellor of the Exchr.'6 Peel recommended him that led Alexander to make the experiment. did in fact seek to push him forward, asked him to second the Clearly he had the experience and skills to be a useful partner; address in February 1845 and proposed that he become President of whether he had the temperament took longer to establish. the Board of Trade a few months later. Baring refused - 'the Bates was pawky dour. charmless; with little imagination and less Bishopsgate House has too many temptations yet,' wrote Bates, but humour. 'His tone was dry, his words few,' wrote Samuel Ward, it was felt by most people that he would become a minister within a whose father T. W. Ward was an ardent admirer and protégé of his few years. 62 fellow countryman. He could be touchingly naive. He noted in his He never did. The following year he joined his uncle in opposing diary that he was charmed by Boswell's Johnson: 'perhaps this partly Peel's policy on Free Trade. Disraeli much admired his performance owing to the fact that I find Johnson's opinion on many subjects 'The member for Huntingdon brought the great name of Baring, and coincide with my own, and as I have never derived any great advan- all the authority of his pre-eminent position in the commercial tage from Books, never having read much, this is greatly in favour of world, to support the principle of regulated competition. His mas- my intellect'.6 A man of grinding conscientiousness, his joy was tery of the subject would under any circumstances have commanded work: 'You are the most uniformly laborious man I know,' wrote attention. The house liked to receive the latest and most authentic T W. Ward. 68 Bates sometimes tried to persuade himself that there information as to the state of the markets from the greatest merchant were other pleasures in life than those of the counting house. 'I in the country. Nor was this praise exceptional; in 1848 Disraeli would rather make a quarter of the money I do and free myself from was extolling Baring for 'one of the best speeches ever made in the the necessity of that day and night attention to business which House of Commons. Few more combine mastery of the case with becomes irksome to me,' he told Ward. 69 No doubt he believed it at parliamentary point than this gentleman.' the time, but if ever he tried to put it into practice he quickly found In time Disraeli was to press him to join his government, but for himself pining for the delights of trading. 'The man was illiterate and the moment Baring was more than satisfied with the back benches ignorant but possessed a strong mind and much business ability,' Not that his freedom from ministerial office meant that he was was the verdict of one of the many Americans who visited him in under-employed. 'The fact is,' said Bates, 'he is the best worker I ever London, and it does not seem unfair. saw. This, combined with his ability, makes him sought after as Bates displayed in his private life the same rectitude and Chairman and on Committees, Irish relief, etc.'6 He tried to do too meticulousness as in the office. 'From this date Mrs Bates to be much, and as a result was often in bad health. His frequent absences allowed £150 per year for her dress, thread, tapes, needles, pins and also imposed an additional burden on the third of the new partners for charitable purposes; Tolls, expenses in carriage, ices at Gunter's,' introduced by Alexander Baring in 1828. Fortunately it was a burden he noted in his diary.71 It was not ungenerous, but woe betide Mrs Joshua Bates was well able to bear. Bates if she exceeded her allowance. Bates was a hard man. 'My Bates was the most imaginative of Alexander Baring's appoint gardener seems to be much in debt,' he noted. 'He has too many chil- ments: not a member of the family, not an Englishman, not even dren, which is the great difficulty with all labouring men. I must dis- with a particularly brilliant career behind him. Massachusetts born charge him. '72 Another time two of his house servants fell in love and and bred, he had spent much of his career in the counting house of a conceived a child. They were ready to marry but Bates dismissed Boston merchant specializing in trade with Russia and Calcutta. He them. It was 'more important to set a good example to the other ser- had worked in Europe and had an unrivalled knowledge of Ameri yants than redeem these servants'. But he could be as coolly realistic can business and businessmen. His association with John Baring had about himself as about others. In 1833 the Edinburgh Review been soundly if not sensationally prosperous, and it must have been described him as 'the first Merchant of the country' and "unques- the fact that both his partner and Peter Labouchère confidently tionably the ablest'. 'The Quarterly will probably style me the most The Sixth Great Power Bari and Bates: 1827-1847 125 124 insignificant,' commented Bates. 'These periodicals cut one up or showed no such arrogance in his attitude to his partner. Indeed, he praise one just to suit their own purpose. '73 treated Bates to all intents and purposes as the senior partner. He 'has a trial in his wife as great as almost any person living', Though Baring made the running where international loans were in wrote Ward.74 Another American described her as an 'audaciously question, Bates ruled supreme over all the routine trading business vulgar old woman'. She had been complaining that her daughter had and the administration of the office. In particular, he took responsi- nowhere fit to live, in spite of the fact that she had huge houses in bility for the rapidly increasing American business. He was a first both London and the country: 'This kind of whining comes from a port of call for all important American visitors to London and woman who was born in a four roomed log house in Massachusetts regarded by most of them as the ultimate fount of wisdom on British and never saw a carpet until she was a woman grown. '75 Mrs Bates and international affairs. 'Have you letters for Mr Bates?' Charles must have been one of the factors that made it hard for Bates to win Summer asked his brother. 'You will find him a person of sterling the place he felt he deserved in British society. In theory he despised honesty and sense.'81 Louis McLane advised his successor at the the fripperies of fashion, in fact he hankered after them. One of his American Legation to use Schultz as his tailor and Adams as his hos- few weaknesses, Ward felt, was undue deference to wealth and tler. 'Lady Wellesley will instruct you in the mysteries of fashion rank. Bates believed he got the balance just right. He told Ward and Mr Bates, your Banker - whom you will find the kindest man in that a certain new American arrival in London was too voluble and the world - will instruct and aid you essentially in all matters of busi- noisy, 'but that will wear off. A residence of one year in London ness and housekeeping.'82 would make a perfect gentleman of him In London no Thomas Baring and Joshua Bates liked and respected each other, extravagance of word or gesture is allowed in good society and since and admirably complemented each other's abilities. On them I have got a little into it I am charmed with that which I at first depended the future of Baring Brothers. When Alexander Baring thought objectionable."77 retired in 1830 he left five partners: his brother Francis, his son-in- He wrote thus confidently as early as 1831, but his progress into law Humphrey Mildmay, his nephews Thomas and John, and high society was in fact slow and arduous. It was from the Barings Joshua Bates. In theory three partners had to endorse any decision of themselves that he received the most painful rebuffs. Lord importance, but with Francis often in Paris and generally ignored Ashburton's return from the United States in 1844 'renewed the and John withdrawing in 1837 and anyway disposed to follow his mortification and pain I have always felt in consequence of my social brother's lead, the practice became that the three managing partners position. On joining the house of Baring Brothers and Co. when did all the business and only invoked the other two in case of dis- Lord Ashburton was a partner, I found that he and Mr Mildmay did agreement.8 At the end of 1835 there had been something of a con- not consider that by forming a co-partnership with me they had frontation, when Mildmay had tried to limit the house's free capital incurred the so-called necessity for any intercourse with me and my at any one time to £100,000 and had recruited Lord Ashburton to family.'78 He was almost never invited to the Grange and only to din- support him. Bates argued that £500,000 was the minimum essential ner in London when there were American visitors - and even then for a reserve sufficient to embrace any profitable business that might Mrs Bates was not included. 'This must not continue, wrote Bates come along, established that John and Thomas agreed with him, and angrily, but it did. 79 When Bates asked if Lady Ashburton would pre- convinced Ashburton that Mildmay's course 'would reduce the sent his wife and daughter at Court, Ashburton found some polite profits of the House in a short time SO much SO as not to make it excuse. 'This is the first favor I have asked of this family and it will be worth anyone's attention to the business'.84 He won the day, but the last. '80 remained dissatisfied. 'Too much falls on me,' he complained in his Fortunately Thomas Baring, more easygoing and good-natured diary. 'To talk to everybody, sell the goods, draw the plans for opera- than his uncle, and with a far clearer appreciation of Bates's qualities, tions which require a vast deal of thought and hard thinking too; North America: 1828-1848 145 144 The Sixth Great Power 1829 to consider how best Barings' business should be built up. The Barings should do business, to assess their credit-worthiness, probe obvious course was to appoint an agent, but Bates had doubts about their weaknesses, gauge their honesty, secure information on their this. an Agent, unless he is a very clever man and stands high, bank balances. His instinct was to expect the worst: 'My own confi- does an injury to any House,' he had written while he was still work- dence in our mercantile community as a whole was never great, and ing in Boston. 'People are perfectly sick of the name of Agent, both is now lessened by what I see. We have bad habits, and not easily here and in New York.'3 Baring was quite ready to echo this opinion cured.'9 His assessments of the people concerned were brisk and to - 'In general agents don't succeed here," he concluded while in New the point: in a typical list, one was 'poor and miserable'; one 'doing York4 - but by the time he reached Boston he found Bates had nothing, safe'; one 'snug, has some property'; one 'capable, an only changed his mind. 'This relieves me from the decision of a question son and his father is rich'.¹0 Barings meanwhile responded with of which I can be in no way a competent judge,' he wrote with some information about their clients in England; one was very safe and relief.5 The favoured candidate was T. W. Ward, who had unfortu- very respectable'; another was a '3rd or 4th rate cotton broker. Habits not the best.' But it was not just people about whom Ward kept nately just blown off his left hand in a gun accident and was in peril from lockjaw; but once this hazard was overcome, Baring Barings informed: political trends, projected railroads, prospects for crops, all were relevant; even the level of the Mobile River was of thought well of him. Thomas Ward was an old colleague of Bates; slow, somewhat interest, since this affected the shipping of cotton and might give unprepossessing, brusque and graceless in manner: 'What would Barings a chance to dispose of stocks in Liverpool.¹ you think of a man, asked Bates, 'so forgetful of himself and every- The branch of Barings at Liverpool was one of the most important one else as to come into your room while your family was at break- factors in the development of their American business, putting them fast, put his hat, gloves and spectacles down on the breakfast tray, into direct competition with one of their most formidable rivals, take a sausage with his fingers out of the dish and, holding it by its W. and J. Brown and Co. in the United States, Brown, Shipley in Brit- two ends, bite off the middle and put the two ends back into the dish ain. It did a healthy export and import trade in many commodities, without a word being said?' But Ward was honest, meticulous, and but cotton was its speciality and the huge resources Barings could with an encyclopaedic knowledge of American business and busi- deploy quickly made it one of the largest importers. The business nessmen. Trading on his own account he would never have made a was conducted on the lines Bates had laid down in London - dispose fortune; as Barings' agent his value was immense. On 1 January 1830 of a consignment quickly and accept a smaller profit rather than he took up his duties at a basic salary of £2000 a year. Bates told him hold and risk a loss. For this they were criticized, sometimes with later that he had the entire confidence of the house and that they had reason, but it stood them in good stead in times of crisis. 12 permitted him to enjoy power which no one partner would have 'I feel quite satisfied with the position of the House in the United been allowed to exercise in London. In fact he was constantly being States,' wrote Ward in 1831. 'The foundation is good, the business enjoined to do this and eschew the other, but he was still given wide increasing You can hardly do justice to the great increase of trade discretion. He took his duties with becoming seriousness. His new in this country. There is much competition, but you cannot fail to role, he wrote in his diary, 'makes it important I should rise early and take the lead and the best business We lose none, and gain from others and take the best of the new ones.' Traditionally the fiercest do up my business in the morning, that I should keep a memoran- dum or diary of occurrences If I am to succeed as an agent I must opposition came from 'the three Ws', the long-established 'Ameri- be more attentive to the minor modes of pleasing others, and mix can houses' of George Wildes and Co., Thomas Wilson and Co. and more with the busy world. The great object, however, is to do what I Timothy Wiggin and Co., but W. and J. Brown and Co. was growing think right on all occasions, and to be deliberate in my decisions.'8 fast - 'This house,' admitted Barings in June 1831, 'or rather this fam- His main task was to select the individuals and houses with which ily of houses, commands an immense business in the US. 13 146 The Sixth Great Power North America: 1828-1848 147 Rothschilds were inconsiderable in the commercial field, but after country with which ever a collision is likely to occur, but moreover in their setbacks in 1830 in France they began to look with interest at the hands of a banking house whose close connection with a mem- the United States. In 1834 this brought them into direct conflict with ber of the House of Lords puts the accounts of this Government Barings. The new administration under President Andrew Jackson almost under the immediate eye of the British Cabinet'. 20 Ingenious was known to be violently opposed to Nicholas Biddle's Bank of the though his arguments were they availed him nothing, and the United States, with which Barings were closely allied, and Barings Rothschilds in London did little to urge him on. It was more than had also been somewhat less than sympathetic when the Secretary of twenty years before Barings finally lost the agency, and then only to the Treasury carelessly drew a bill without first appropriating the an American bank. necessary funds. It seemed possible the United States government might wish to change its agent. Rothschilds evidently volunteered for the role, for in July 1834 the Treasury Department wrote to thank Ward felt that Barings did not use their pre-eminence in Anglo- them: 'The high standing and character of your house is well under- American trade to full advantage, and that they underestimated the stood in the United States, and I take pleasure in saying that the potential of the New World: 'You have altogether too low ideas of Government of this country will probably avail itself of yr offer.'14 American resources and wealth, intelligence, efficiency of labour, The first Barings heard of it was a brusque note from the Secretary extent of production, ease of subsistence.'21 Bates had said scoffingly of the Treasury telling them that the account would be transferred in that there were 3000 houses in England as powerful as the largest in just over two months. The news was received, wrote the historian the United States and that the capital of Barings was almost equal to of Rothschilds, with 'un mélange d'orgueil froissé et d'amertume'.16 that of Boston. 'We have 15 millions of people active, intelligent, Certainly the identity of their replacement caused them more dis- industrious, full of eager competition and free of taxes,' retorted tress than the loss of the account, which in financial terms was more Ward. 'We have a fertility of soil unexampled So far as wealth trouble than it was worth. They might have written us a more civil consists in commodities, good land, houses, people, power, roads, letter,' was their temperate comment. 17 They comforted themselves canals, it would seem that we have both wealth and the means of with the reflection that they had kept the far more profitable US increasing it.'22 When things were going badly Barings were too Navy account, and that since the change had been a political one, quick to apply restrictions: 'By acting with freedom I have done you 'and as parties are rapidly changing, it is probable that we shall have great good Is it not desirable that your commercial correspon- it back in two or three years'.18 dents should feel that in times of security they can have some In this they were proved right. In 1843 Tyler became President, advantage from the resources of so great a House in delay or accom- with Barings' staunch friend, Daniel Webster, as Secretary of State. modation? Is it not very important to keep up the impression that At once the account was restored to Barings. Webster then resigned. there is nothing like Barings, and is there no danger that the charm Rothschilds' man in America, August Belmont, saw a chance to may be broken?'23 When things went better they were too slow to regain the prize. 'It would be an easy matter to get the account back,' relax: 'Two years ago,' Ward wrote in 1835, we seemed to be monop- he wrote, provided, however, the place is not filled by a creature of olizing the business of this country, but various causes have com- Webster's, who for weighty reasons is very attached to Barings.'19 bined to lessen the proportion you have of the American business. Some months later, he was pointing out to all and sundry the merits Your prudence has been a leading cause.'24 of transferring the account to Rothschilds in Paris, arguing 'how He scored the occasional debating point. When, in 1832, the impolitic it is on the part of the United States Government to keep Hamburg firm of Sillem and Co. closed with considerable loss to her accounts for the disbursement of her diplomatic agents and Barings among others, Ward wrote with barely concealed satisfac- a great portion of her foreign fleet not only in England, the only tion: 'I must say I am surprised at such an event so near you, and that 208 The Sixth Great Power North America: 1848-1890 209 with his own comparative ill treatment, but the story was right in he did much to maints if not enhance, the standing of Barings in essentials. Ward had been talking about retiring since 1845 and was American trading. now anxious to go: 'I am growing old, and cannot do what is neces- Writing from Havana in 1859 Baron Alphonse de Rothschild told 1845 sary for Messrs Barings interest and my own satisfaction.'4 his cousins in London that Barings were the chief among a handful Bates was undismayed by the prospect. He was apt to claim that of houses making all the profit from commission, credits and the vast increase in American business had come in spite of and not consignation - 'Barings has immense connection everywhere in because of Ward: "The liberality and high character of the House America and I have no doubt, my dear Cousins, should you enter drew the business and not T.W.W.'s influence, which was rather a business in this country with some confidence, you will find enough drag. After talking to Ward in Boston he complained that he was so to extend greatly the already existing sphere of operations in Amer- slow and prolix that it took twenty-four hours to establish his views ica. Rothschilds were never to challenge Barings' supreme posi- about the future. It was high time he went. But when it came to tion in the field of credit. Others did better, notably Brown Brothers. deciding on a replacement, the problem grew more difficult. The Browns were the more aggressive and picked up much business most obvious course was to follow the move of big business to New which Barings either scorned or let slip by. Yet in 1855 Brown, York and establish a new agency there, but though Bates accepted Shipley, Browns' English associates, were still complaining that 'we this, he was a loyal Bostonian and found himself reluctant to take the aim, and with perfect right, at a rank and position equal to Barings,' step.7 T. W. Ward's son Samuel was put forward as a possible but were still far from achieving it. 12 Barings' credits on American replacement for his father. Bates was at first unimpressed. 'Sam has account rose from £1.3 million at the end of 1848 to £2.6 million in no energy and the whole agency would be a rickety concern," he told 1852, £3.2 million in 1857 and £3.6 million in 1860. The totals were Thomas Baring.8 Sam was an unprepossessing figure; small, with a impressive enough, what was still more remarkable was the quality nasal twang and mustachios curling up to his eyeballs. But he was of the accounts involved. Throughout this period Barings could pick there. Bates's attitude towards him softened. The two men had a their clients almost as they chose. In 1867, Brown, Shipley reported, long talk and Bates decided Sam was 'not wanting in ability and Kidder Peabody were beginning to issue credits for use in the East seems to have the right view of things' Perhaps T W Ward should and South America; "They rely on Barings being able to do less than be persuaded to stay on for a few years longer in partnership his formerly, which would be a reasonable expectation from Mr son. 'The great prosperity of this Country, assisted as it will be by Ward's limited powers and not acceptable manner. 13 Yet, reason- immigration and Californian gold, will lead to hazard, and Ward is able or not, the following year they were bewailing the fact that they just the man to hold people back and keep them safe.'9 had just lost another customer to Barings. 14 Viewed in terms of the From London Thomas Baring was sceptical. He declined to give expansion of the American economy and the growth of its rivals, advice - 'How can we at this distance give an opinion as to people we Barings' position was slipping; but the change was self-willed, at any have never seen?' - but wondered whether the retention of Ward moment they had the ability to take on whatever business they felt would achieve the main objective, that of setting up an agency that judicious. 'The great house of B B and Co [is] now decidedly the first would last for many years. 10 Bates persisted, however, and the in the world in the estimation of the Americans,' announced Bates agency in fact lasted another thirty years. When T. W. Ward finally smugly in 1849. 15 'The Administration is entirely in the hands of 1852 retired in 1852, Sam Ward was appointed sole agent. It proved an Barings' friends, Belmont told Rothschilds in despair. 16 They had unexpectedly successful solution. Sam Ward was as much a stick-in- their setbacks, and the Administration in particular did not always the-mud as his father and lacked the latter's knowledge of American remain SO securely in their hands, but the authority of Barings business, but he was shrewd, conscientious and much the more af remained virtually unshaken until the great crash of 1890. fable and approachable of the two. His contacts were excellent and The possibilities for involvement in the flood of new American 220 The Sixth Great Power North America: 1848-1890 221 had been closely associated with them since 1878. Ward's sub-agent same letter he complained about Kidders' recruitment of a Mr H.L. in Boston (the headquarters of the agency had now been transferred Griggs, sharp and active enough, to be sure, but 'a disagreeable to New York), perhaps saw a threat to his own position in the con- hog..76 Revelsteta was dubious. The sort of arrangement his brother nection - at any rate, he deplored it, 'they were not the sort of people had in mind would entail Barings giving up all their New York and you have heretofore corresponded with, over-sharp, standing low in Boston business to another house and abandoning their own indi- public esteem, 'the arrangement would create great surprise in Bos- viduality. For Kidders to take in Tom Ward as a partner would avail ton'.70 Barings paid no attention. Even Ward, who had shared his nothing. The only way the new arrangement could be acceptable sub-agent's doubts about the future of the house, was impressed by would be to have 'a partner in New York who would really represent their profits, capital and leadership. 'Mr Kidder is in good health and us and safeguard our interests'. Would Tom Baring be that man?77 attends actively to business. He is 59 years old. Peabody, 10 years With some reluctance Baring agreed he might. younger, [is] the genius of the concern; his health suffers from over- The proposal was duly broached to Mr Kidder, who was work and [he] absents himself a good deal in winter. Magoun is disconcertingly unappreciative of the honour being done him. 'He entirely devoted to business yet seems to take it easy and I believe appears altogether to ignore the value of our offer, wrote T. C. Bar- that your experience shows that he does it well.'7 ing indignantly. 'Perhaps what we should bring to his firm would at On the whole Sam Ward had served Barings well. Extolling his the outset not be very much, but it involves the potentiality of the own achievements when it was proposed to cut his pension, he best and largest American credit business, not only in New York but claimed that the credit business had doubled in value during his throughout the United States and Canada. His firm would no doubt time as agent. He had maintained a virtual monopoly of the East have to work for this, but it would be our standing that would make India business so long as that business existed, sorted out the prob- it attainable. '78 Kidder flatly refused to accept Tom Ward as a part- lems of the Eastern Railroad, carried on the great battle over Iron ner - 'he thinks him absolutely useless, even as a clerk' - and did not even seem very gratified by the thought of Tom Baring joining the your Mountain: 'What House in the American business can show such a record during all that time?'72 He had a good case, but by 1884 the firm; 'he is afraid of taking in a partner who might very shortly be the ward days of glory were far behind him. He was a sick man, whose ability chief and controlling influence in the firm, was Baring's somewhat to transact business efficiently depended on his taking long and fre- complacent explanation.79 quent holidays. His brother George suffered from 'softening of the Possibly Kidder wanted not to appear too anxious to grasp at what brain' and what Sam described as interest and mental sluggish- was, in truth, an enticing proposition. Negotiations were quickly ness'. 73 His son Tom was very deaf. Tom Baring started with a poor under way and virtually completed by October 1885. Now it was (view of his namesake but gradually thought better of him; Magoun, Tom Baring who was anxious not to seem too eager. 'I wish it to be however, described him as 'quite infantile, absolutely incapable of most clearly understood that I do not ask to be sent to New York,' he understanding business matters'.74 Old clients were being lost and reminded Revelstoke. 'On the contrary I should much prefer to stay new not gained. It was only too plain that if Barings' business in the here [Liverpool] and I only go to New York because the firm desires United States was to survive, rapid changes were essential. me to. Therefore I hope I may assume that by thus going away I do Ward's proposed solution was to bring in the newly appointed not forfeit or lose any claims or rights that my partnership of 15 years sub-agent in New Orleans as reinforcement. To Revelstoke signing may have given me.'80 Presumably he received a satisfactory assur- himself thus for the first time - this seemed wholly inadequate.75 ance. He joined Kidder Peabody as a full partner taking 20 per cent Tom Baring agreed and had no doubt that the future should lie in a of the profits (which had recently totalled some £36,000 a year). Tom closer association with Kidder Peabody - they could not possibly be Ward did not get his partnership but was taken into the office at in safer hands, he commented; a generous verdict, seeing that in the $7500 a year. 81 262 The Sixth Great Power The Baring Crisis: 1890 263 daughter, Ruth, nearly died of a broken heart at having to leave her ing told Lidderdale, 'W have no alternative but to recommend it home and in consequence of the great anxiety they passed to the Board. '83 through. '78 In April 1893 he disposed of the last of his pictures to Early in 1893, with the guarantee due to run out in November, the Agnews for £25,000, making the total value of the sale £43,000.79 Even as far away as Boston Sam Ward suffered in the disaster. For a Bank of England began to press for faster action in disposing of the various assets of the old house: 'We shall be glad to hear from you time Barings kept his and other pensions going but the slow rate of what you are doing with a view to accomplish this, what sales of improvement finally forced them to suspend all those where no acute hardship was involved. Ward acquiesced but protested when securities you can shortly effect, and what arrangements have been he saw references to what appeared to be a surplus in Barings' made for disposing of the partners' private property, which latter we accounts. It was a paper surplus, Francis Baring explained, and pro- feel must now be dealt with.'84 Argentine securities were not the only duced nothing for the firm. 'To tell the truth my conscience has been assets which proved difficult to dispose of. Revelstoke's house in a good deal strained the last 4 years by continuing any pensions at all Charles Street was put on the market but found not a single bidder. and if things had gone hopelessly wrong there would have been a In the previous three years, said the agents, only two houses of com- very unpleasant discussion with the guarantors. parable size in London had been sold, Mr Brassey's Bath House in After all, you must be a richer man at present than any of us and the old arrange- Piccadilly (oddly enough, itself once the property of Lord Ash- ments would seem almost absurd.' '80 burton) and Count de Santurce's palace in Carlton House Terrace. The death of T. C. Baring in April 1891 may have eased John Both had been sold at a considerable sacrifice and to foreigners. 'We Baring's efforts to establish the new house but seriously complicated consider your house quite unique in its way, being freehold in the the liquidation of the old. 'You know he behaved SO nobly all first place and having been almost rebuilt and then arranged and through lacrise,' wrote Lady Revelstoke to Everard Baring, decorated in a style that is not equalled in any London mansion and that it is just possible to wind up the Fairy Tale by his leaving his million to having all the modern appliances such as Electric Lighting from its Papa on condition he becomes chairman of the Reconstruction!!! own Dynamos, Hydraulic Lifts etc. There are absolutely no buyers but I fear not even could such a thing figure in an Arabian Nights story for this sort of House at the present time.'85 The house was still or Monte Cristo Financially I believe it makes no difference as he unsold when Lord Revelstoke died four years later. Nor was it always executed a deed making the whole of his personal estate responsible easy to pick the right moment to sell pictures. A sale of pictures at for the liabilities of the New House for 5 years. '81 Revelstoke did not Christies had to be postponed because a particularly important col- get his second chance, nor were the financial consequences as Lady lection of French pictures came on the market. In the end sales through Christies yielded £215,000 - £50,000 from 37 Charles Revelstoke had hoped. When T. C. Baring died he still had £113,000 at Barings, the last part of his capital which had not been due for Street, £40,000 from the Mildmays' house at 46 Berkeley Square, withdrawal until the end of 1890 and which he therefore considered £30,000 from the Hodgsons' at 50 Grosvenor Street, £50,000 from Flete and £10,000 from Membland. 86 to be liable to the risks of the business and not to be included among the house's liabilities. His executors, however, were told that the By April 1893 it was clear that more time was going to be needed. The Bank of England recommended extension of the guarantee by a money was as much due to his estate as if he had been an ordinary depositor. 82 They felt themselves 'bound to take the most strenuous year to November 1894, with the option to renew for a second and final year. On the record of this debate Lidderdale minuted: 'We had steps' to recover the £113,000 plus interest, even if it meant forcing an immediate bankruptcy. Eventually they were persuaded to accept a hard fight to get the extension of time - several Banks and the 50 per cent in full discharge; 'and though we feel that the payment of Rothschilds standing out for a long time.'87 Since the guarantee only even this amount is quite contrary to T.C.B.'s intentions,' John Bar- needed to be for a quarter of the original amount and it was almost certain that two extra years would be more than enough to meet 394 The Sixth Great Power Notes 395 8. H. S. Ferns, Britain and Argentina Americano y Universidad Libre 42. Falconnet to Barings, 20 March 14. 12 Nov. 1830. Northbrook. in the Nineteenth Century (Oxford, de Berlin. 1843. Baring Mss (G) MS 18321. Journals and Correspondence, op. 1960), p. 132. 22. 27 Aug. 1825. Simon Gratz HC4. 14. cit., p. 70. 9. Vera Blinn Raber, British Collection, op. cit. 'Francis 43. Falconnet to Barings, 20 March 15. John Gore, Creevey (London, Mercantile Houses in Buenos Aires Baring'. 1843. Baring Mss (G) MS 18321. 1948), p. 339. 1810-1880 (Harvard, 1979), 23. 18 Oct. 1825. Baring Mss (B) HC4. 1. 14. 16. Monypenny and Buckle, p. 116. HC1. 204. 44. For a lucid exposition of this Disraeli, op. cit., vol. I, p. 204. 10. 24 Oct. 1824. Baring Mss (G) MS 24. Annual Register, 1844. p. 348. imbroglio see Ferns, Britain and 17. Bates to Colonel Thomas Perkins, 18321. HC4. 1. 3. 1B. 25. Sydney Smith to Lady Grey, 17 Argentina, op. cit., pp. 122-4. 14 May 1832. Baring Mss (G) MS 11. 'El Primer Empréstito Argentino', July 1844. Letters of Sydney Smith, 45. 29 Oct. 1845. Ward papers, op. 18321. HC8. 1. 10B. Revista de Economia Argentina. op. cit., p. 841. 18. Michael Brock, The Great Reform cit. Tome XIII. Nos 75-76 (Sept.- 26. Bates to T. W. Ward, 3 July 1844. Act (London, 1973), p. 294. Oct. 1924). Ward papers. Massachusetts 19. 13 May 1832. Three Early 12. e.g., R. Scalabrini Ortiz, Política Historical Society. Nineteenth Century Diaries, op. Británica en el Rio de la Plata 27. Barings to Manning and CHAPTER 7 (pp. 112-26) cit., p. 251. (Buenos Aires, 1965) or Eduardo Marshall, 22 Oct. 1832. Baring 1. Ward to Bates, 4 Jan. 1831. Ward 20. The Taylor Papers, ed. Ernest Duhalde, Baring Brothers y la Mss (G) MS 18322. Vol. III. Papers, op. cit. Taylor (London, 1913), p. 344. Historia Política Argentina 28. 15 June 1824. Hansard. NS2. Vol. 2. Bates to Ward, 7 Nov. 1830. 21. Greville Memoirs, op. cit., vol. II, (Buenos Aires, 1968). 174. 1404. Ward papers, op. cit. p. 299. 13. e.g., Juan Carlos Vedoya, La 29. 6 July 1847. Hansard. NS3. XCIII. 3. Bates to Ward, 5 April 1831. 22. Letters of Sydney Smith, op. cit., verdad sobre el Empréstito Baring 1298-1306. Ward papers, op. cit. p. 590. Brothers (Buenos Aires, 1971) and 30. Ferns, Britain and Argentina, op. 4. Bates to Ward, 24 Nov. 1830. 23. Alexander Baring to Peel, 15 Dec. Arnando Chiapella, El Destino del cit., p. 209. Ward papers. cf. Nolte, Memoirs, 1834. BM Add Mss 40405 f221. Empréstito Baring Brothers. 1824 31. Ferns, Britain and Argentina, 24. Disraeli to Sarah Disraeli, 15 Nov. op. cit., p. 287. 26 (Buenos Aires, 1975). pp. 220-2. 5. Roger Fulford, Glyn's, op. cit., 1834. Monypenny and Buckle, 14. Baring Mss (G) MS 18321. HC4. 32. 'El Primer Empréstito Argentino', Disraeli, op. cit., vol. I, p. 265. p. 199. 1. 13. 18. cf. Ernesto J. Fitte, op. cit., p. 14. 6. Edward Strutt, 1st Baron Belper. 25. Obituary of 15 May 1848. Historia de un Empréstito: La 33. García to Parish, 31 Dec. 1831. Ralph E. Pumphrey, 'The 26. Ashburton to Croker, 7 April Emisión de Baring Brothers en Baring Mss (G) MS 18321. HC4. Introduction of Industrialists into 1844. The Correspondence and 1824 (Buenos Aires, 1962). 1.6. the British Peerage', American Diaries of John Wilson Croker, ed. 15. Robertson to Holland, 5 May 34. 30 June 1832. Baring Mss (G) MS Hist. Rev. LXV (1959), pp. 1-16. Louis Jennings (London, 1844), 1825. Baring Mss (G) MS 18321. 18322. Vol. III. 7. F. M. L. Thompson, English vol. III, pp. 17-18. HC4. 3. 6. 35. 6 Feb. 1833. Baring Mss (G) MS Landed Society, op. cit., p. 100. 27. 15 March 1843. Life and Letters of 16. Robertson to Holland, 14 Dec. 18322. Vol. III. 8. 19 Oct. 1829. Miss Eden's Letters, the Fourth Earl of Clarendon, ed. 1827. Baring Mss (G) MS 18321. 36. 1832 and 1835, undated. Baring Sir Herbert Maxwell (London, op. cit., p. 185. HC4. 6. Mss (G) MS 18321. HC1. 11. 9. The Journal of Mrs Arbuthnot, ed. 1913), vol. I, p. 241. 17. I am indebted to Dr Samuel 37. Barings to Francis Falconnet, 5 Francis Bamford and the Duke of 28. Ashburton to Peel, 9 May 1839. Amaral of the Instituto Torcuato Oct. 1842. Baring Mss (G) MS Wellington (London, 1950), vol. BM Add Mss 40426 f262; and 29 di Tella for drawing my attention 18322. Vol. III. II, p. 369. Aug. 1841. BM Add Mss 40486 to this fact. 38. Instructions of 30 March 1842. 10. Gentleman's Magazine. New f209. 18. 23 April 1825. Baring Mss (B) Baring Mss (G) MS 18321. HC4. Series, vol. XXX, p. 89. 29. Peel to Ashburton, 3 Sept. 1841. DEP 193. 74. 2. 1. 13. 18. 11. 9 Feb. 1830. The Correspondence of BM Add Mss 40487 f150. 19. Henry Ward to Canning, 30 Oct. 39. Falconnet to Barings, 15 June and Daniel O'Connell, ed. Maurice 30. 24 Dec. 1841. The Letters of Queen 1825. PRO. FO. 50/15. 12 July 1842. Baring Mss (G) MS O'Connell (Dublin, 1971), vol. IV, Victoria. 1837-1861, ed. Arthur 20. Francis to Thomas Baring, 22 18321. HC4. 1. 14. Benson and Viscount Esher p. 124. July 1817. Baring Mss (G) MS 40. Falconnet to Barings, 24 Oct. 12. Feb. 1831. Three Early Nineteenth (London, 1907), vol. I, p. 462. 18321. HC 20. 5/1. 1842. Baring Mss (G) MS 18321. Century Diaries, ed. A. Aspinall 31. 12 Feb. 1843. Letters of Queen 21. Reinhard Liehr, 'La Deuda exterior HC4. 1. 14. (London, 1952), p. 9. Victoria, vol. I, p. 579. de México en la primera mitad del 41. Falconnet to Barings, 20 Feb. 13. 13 March 1831. Hansard. Third 32. Melbourne to John Russell, 7 siglo XIX y los merchant bankers 1843. Baring Mss (G) MS 18321. Series. Vol. II. 1305-17; and 14 Oct. 1842. Lord Melbourne's británicos, Instituto Ibero- HC4. 1. 14. July 1831. Ibid. Vol. IV. 1286-8. Papers, ed. Lloyd Sanders 396 The Sixth Great Power Notes 397 77. Bates to Ward, 21 Dec. 1831. 10. From the Books and Papers of (London, 1889), p. 515. Baring Mss (G) MS 18321. HC 33. Ashburton to Peel, 18 Oct. 1842. Ward papers, op. cit. Russell Sturgis, ed. Julian Sturgis 20. 7. BM Add Mss 40492 f250. 55. Bates's diary, 1 Jan. 1838, op. cit. 78. Bates's diary, 24 June 1844, op. (Privately printed, Oxford), 34. Peel to Ashburton, 16 and 22 56. Bates's diary, 1 Nov. 1838, op. cit. cit. p. 108. Oct. 1842. BM Add Mss 40517 79. Bates's diary, 30 April 1836, op. 11. Ronald Knox, Patrick Shaw- 57. Thomas Baring to Barings, 17 ff5 and 9. Stewart (London, 1920), p. 81. Aug. 1832. Baring Mss (G) MS cit. 35. Peel to Ashburton, 4 Nov. 1844. 18321. HC 1. 20. 4. 1. 80. Bates's diary, 17 Feb. 1838, op. 12. Ward's diary, August 1828, op. BM Add Mss 40553 f244 and cit. 58. Bates to Ward, 31 Jan. 1843. cit. Ashburton to Peel, 6 Nov. 1844. Ward papers, op. cit. 81. Charles to George Sumner, 30 13. April 1838. Cit. Hidy, The House BM Add Mss 40576 f41. 59. Bates to Ward, 18 Oct. 1843. April 1842. Memoirs and Letters of of Baring, op. cit., p. 138. 36. Ashburton to Peel, 30 Jan. 1846. Charles Sumner, ed. Edward La 14. Bates's diary, 4 March 1837, op. Ward papers, op. cit. BM Add Mss 40584 f18. Pierce (London, 1878), vol. II, cit. 60. The Correspondence of Lord 15. Woodham-Smith, The Great 37. Peel to Ashburton, 30 Jan. 1846. Overstone, ed. D. P. O'Brien p. 207. BM Add Mss 40584 f20. (Cambridge, 1971), vol. I, pp. 82. John A. Munroe, Louis McLane Hunger (London, 1962), pp. 54-7. 38. G. D. H. Cole, The Life of William (New Jersey, 1973), pp. 281-2. 16. Minute of Board of Treasury of 9 338-40. 83. Nolte, Memoirs, op. cit., p. 287. Dec. 1845. Copy in Baring Mss Cobbett (London, 1924), p. 367. 61. Bates to Ward, 2 May 1844. 39. George Harding to Lady Ward papers, op. cit. 84. Bates's diary, 1 Nov. 1835, op. cit. (B) DEP 193. 74. Ashburton, 23 Nov. 1864. Baring 85. Bates's diary, 27 Dec. 1835, op. 17. Trevelyan to Barings, 26 62. Bates to Ward, 3 Feb. 1845 and Mss (B) DEP 37. cit. Aug. 1846. Baring Mss (B) DEP T. W. Ward's diary, 31 Aug. 1845. 86. Bates's diary, 3 Sept. 1837, op. cit. 193. 74. 11. 40. Francis Baring to his wife, 23 Ward papers, op. cit. Nov. 1830. Northbrook Journals, 63. B. Disraeli, Lord George Bentinck. 87. Ward's diary, 30 Aug. 1845, op. 18. Bates to Ward, 7 Nov. 1830. op. cit., p. 75. A Political Biography (London, cit. Ward papers, op. cit. 41. Greville Memoirs, op. cit., vol. III, 1852), pp. 87-8. 88. Francis Baring to Barings, 10 Aug. 19. Bates to Ward, 20 April 1833. p. 213. 1847. Baring Mss (G) MS 18321. Ward papers, op. cit. 64. B. Disraeli, Lord George Bentinck. 42. Greville Memoirs, vol. VI, p. 62. HC 1. 20. Chapman, Rise of Merchant A Political Biography, op. cit., 43. 2 Sept. 1841. Letters of Queen p. 526. 89. Bates to Ward, 3 Nov. 1847. Banking, op. cit., pp. 25-6. Ward papers, op. cit. 21. Bates to Ward, 13 Jan. 1831. Victoria, op. cit., p. 395. 65. Bates to Ward, 19 April 1847. 44. 2 Aug. 1841. Northbrook Journals, Ward papers. Bates's diary, 6 Dec. Ward papers, op. cit. 1830, 15 Dec. 1830, 9 Jan. 1831, op. cit., p. 179. 66 Samuel to T. W. Ward, 21 Sept. CHAPTER 8 (pp. 127-42) 45. 8 Aug. 1839. Northbrook Journals, 1846. Ward papers, op. cit. op. cit. op. cit., p. 142. 67. Bates's diary, 3 Jan. 1836, op. cit. 1. 24 Jan. 1830. Baring Mss (B) DEP 22. Bates's diary, 5 Feb. 1831, op. cit. 46. 8 Aug. 1839. Northbrook Journals, 23. Barings to Stieglitz, 18 Feb. 1831. 68. Ward to Bates, 25 July 1853. 193. 13. op. cit., p. 147. 2. Chapman, Rise of Merchant Baring Mss (G) MS 18322. Vol. I. Baring Mss (B) DEP 193. 26. 1. 47. Francis to Thomas Baring, 21 69. Bates to Ward, 4 Jan. 1832. Ward Banking, op. cit., p. 13. 24. Bates's diary, 30 Nov. 1831, op. cit. Oct. 1843. Northbrook Journals, papers, op. cit. 3. 13 Jan. 1831. Ward papers, op. 25. Bates to Ward, 30 Jan. 1832. op. cit., pp. 192-3. 70. 26 Sept. 1864. The Journal of cit. 48. Nolte, Memoirs, op. cit., 287-8. Benjamin Moran, ed. Sarah 4. Bates's diary, 24 May 1834, op. Ward papers, op. cit. 49. Francis Baring to Barings, 21 May 26. Bates's diary, 8 Sept. 1833, op. cit. Wallace and Frances Gillespie cit. 1845. Baring Mss (G) MS 18321. (Chicago, 1948), vol. II, p. 1331. 5. Charles Blake to Thomas Baring, 27. Bates's diary, 14 Oct. 1833, op. HC 7. 17. 11 Nov. 1848. Baring Mss (G) MS cit. 71. 25 April 1831. 50. Francis Baring to Barings, 28 72. Bates's diary, 16 May 1853, op. 18321. HC 1. 14. 3. 18. 28. Instructions to Francis Booth Wells of 12 Dec. 1839. Baring Nov. 1845. Baring Mss (G) MS cit. 6. 31 Dec. 1832. Mss (O) MG24. D21. Vol. 124. 18321. HC 1. 20. 5. 1. 73. Bates's diary, 14 Oct. 1833, op. 7. Regulations of 1 June 1845. 51. John to Francis Baring, 1 Dec. cit. Baring Mss (B) PF 323. Staff 29. Bates's diary, 28 Feb. 1835, op. cit. 1845. Baring Mss (G) MS 18322. 74. T. W. Ward's diary, 30 Aug. 1841, Memoranda. Vol. 15. 8. Eleanor F. Rathbone, William 30. Hidy, The House of Baring, op. op. cit. 52. Bates to Ward, 10 July 1833. 75. 6 May 1858. The Journal of Rathbone. A Memoir (London, cit., p. 359. Ward papers, op. cit. 31. Bates's diary, 30 July 1832, op. Benjamin Moran, op. cit., vol. II, 1905), p. 94. 53. Joshua Bates's diary, 2 Oct. 1835. p. 308. 9. Alfred Mildmay, 'Notes and cit. 32. Thomas Ashton, Iron and Steel in Copy in Baring Mss (B) DEP 74. 76. Ward's diary, 30 Aug. 1841, op. Recollections'. Baring Mss (B) the Industrial Revolution 54. John Baring to Bates, Dec. 1837. cit. DEP 135. 398 The Sixth Great Power Notes 399 (Manchester, 1924), pp. 2-3. Baring Mss (G) MS 18322. Vol. MG24. D21. Vol. 3. 24. Ward to Bates, 4 April 1835. 33. Bates's diary, 25 April 1845, op. 12. 4. Thomas Baring to Barings, 30 Baring Mss (O) MG 24. D21. Vol. cit. 57. Mildmay to Bates, 13 Dec. 1846. June 1829. Baring Mss (G) MS 25. 34. Bates's diary, 6 May 1845, op. cit. Baring Mss (G) MS 18321. HC 1. 18321. HC 1. 20. 4. 25. Ward to Bates, 29 May 1832. 35. Mildmay to Thomas Baring, 16 20. 2. 5. Thomas Baring to Barings, 21 Baring Mss (G) MS 18321. HC 5. Nov. 1845. Baring Mss (G) MS 58. Bates's diary, 31 May 1835, op. Sept. 1829. Baring Mss (G) MS 1.4. 18321. HC 1. 20. 2. 18. cit. 18321. HC 1. 20. 4. 26. Barings to Ward, 30 Jan. and 14 36. Thomas Baring to Bates, 11 Dec. 59. 26 June 1848. RAL T8/83. 6. Bates to C. B. Young and Thomas Feb. 1833. Baring Mss (G) MS 1844. Baring Mss (G) MS 18321. 60. 7 Dec. 1844. Baring Mss (G) MS Baring, 18 May 1849. Baring Mss 18322. Vol. 3. HC 1. 20. 4. 18321. HC 1. 20. 4. (G) MS 18321. HC 1. 20. 8. 27. P. Perit to Ward, 16 Dec. 1836. 37. 3 Aug. 1846, Ward papers, op. cit. 61. 7 Dec. 1844. Baring Mss (G) MS 7. T. W. Ward diary, 30 Aug. 1841, Ward papers, op. cit. 38. 4 Oct. 1846, op. cit. 18321. HC 1. 20. 4. op. cit. 28. Clapham, Bank of England, op. 39. Bates to Ward, 6 Feb. 1831. Ward 62. Francis Baring to Barings, 8 8. T. W. Ward diary, 19 Oct. 1829, cit., vol. II, pp. 151-4. papers, op. cit. March 1847. Baring Mss (G) MS op. cit. 29. Journal of Thomas Raikes. Vol. III 40. Bates to Ward, 6 Feb. 1831. Ward 18321. HC 1. 20. 5. 1. 9. Ward to Bates, 12 Aug. 1829. (London, 1857), p. 157. papers, op. cit. 63. See, in particular, Platt, Foreign Baring Mss (G) MS 18321. HC 5. 30. Ward to Barings, 21 May 1837. 41. Bates to Ward, 21 June 1832 and Finance in Continental Europe, op. 1. .2. Baring Mss (O) MG24. D21. Vol. 6 July 1833. Ward papers. cit., pp. 18-24. 10. Memorandum for 1833. Baring 27. 42. Baring Mss (G) MS 18321. HC 3. 64. Anselm de Rothschild to London Mss (G) MS 18321. HC 31. Alexander Baring to Barings, 27 52. 1B. cf. Emden Money Powers Cousins, 6 May and 8 May 1843, 11. Ward to Barings, 11 Feb. 1840. Nov. 1828. Baring Mss (G) MS of Europe, op. cit., p. 73. RAL T18/128 and 129. Baring Mss (O) MG24. D21. Vol. 18321. HC1. 20. 1. 43. 23 July 1839. Baring Mss (G) MS 65. Bates to Ward, 29 Oct. 1845. 31. 32. Irene D. Nev, 'Edmond J. 18322. Vol. 9. cf. Clapham, The Ward papers, op. cit. 12. Hidy, The House of Baring, op. Forstall. Banker of New Orleans.' Bank of England, op. cit., pp. 168- 66. Platt, Foreign Finance, op. cit., cit., pp. 185, 285-8. Copy in Baring Mss (B) DEP 22 70; Gille, Maison Rothschild, op. p. 20. 13. Barings to Ward, 18 June 1831. (ii)c. cit., vol. I, p. 292. 67. 25 March 1846. Baring Mss (G) Baring Mss (O) MG24. D21. Vol. 33. Bates to Ward, 21 June 1832. 44. 2 Dec. 1839. RAL T35/85. MS 18322. Vol. 16. 7. Ward papers, op. cit. 45. Bates to Ward, 5 April 1846. 68. 11 Oct. 1831. Baring Mss (G) MS 14. Levi Woodbury to Rothschilds, 2 34. Bates to Ward, 10 July 1833. Ward papers, op. cit. 18322. Vol. 2. July 1834. RAL T49/6. Ward papers, op. cit. 46. 13 Sept. 1847. Baring Mss (G) 69. Barings to Hopes, 30 Nov. 1832. 15. Bates's diary, 26 Sept. 1834, op. 35. 24 Nov. 1839. RAL T35/81. MS 18321. HC 1. 20. 4. 2. Baring Mss (G) MS 18322. Vol. 3. cit. 36. 14 June 1838. Baring Mss (O) 47. Bates to Ward, 3 Nov. 1847. 70. Hopes to Barings, 5 Feb. 1842. 16. Gille, Maison Rothschild, op. cit., MG24. D21. Vol. 122. Ward papers, op. cit. Baring Mss (G) MS 18321. HC 8. vol. I, p. 405. 37. Bates to Stockmar, 1 Sept. 1838. 48. Bates to Ward, 3 Nov. 1847. 1. 17. Barings to Ward, 29 Sept. 1834. Baring Mss (O) MG24. D21. Vol. Ward papers, op. cit. 71. Mildmay to Thomas Baring, 1 Baring Mss (O) MG24. D21. Vol. 122. 49. 21 Aug. 1848. Baring Mss (G) MS Dec. 1846. Baring Mss (G) MS 9. 38. Jenks, Migration of British Capital, 18321. HC 1. 20. 7. 18321. HC 1. 20. 2. 26. 18. Bates's diary, 26 Sept. 1834, op. op. cit., pp. 88-90. 50. John Baring to Bates, 30 Dec. 72. Ashburton to Thomas Baring, 30 cit. 39. Mildmay to Thomas Baring, 22 1847. Baring Mss (G) MS 18321. Nov. 1846. Baring Mss (G) MS 19. Belmont to Rothschilds, 25 June July 1829. Baring Mss (G) MS HC 1. 20. 7. 18321. HC 1. 20. 1. 9. 1843. RAL T54/173. 18321. HC1. 20. 4. 51. Bates to Ward, 13 Jan. 1831. 20. Belmont to Rothschilds, 29 Nov. 40. Bates's diary, 8 May 1831, op. cit. Ward papers, op. cit. 1843. RAL T54/190. Ward to Barings, 17 Oct. 1831. 52. Barings to Hottinguer and Co., 1 CHAPTER 9 (pp. 143-57) 21. Ward to Bates, 8 Dec. 1835. Baring Mss (G) MS 18321. HC5. March 1847. Baring Mss (G) MS Baring Mss (G) MS 18321. HC 5. 1. 3. 18322. Vol. 17. 1. J. N. Vaughan to James Madison, 1.5. 41. Bates's diary, 24 April 1836, op. 53. Jenks, Migration of British Capital, 21 Oct. 1829. Baring Mss (B) DEP 22. Ward to Bates, 20 Nov. 1835. cit. op. cit., pp. 127-30. 36. Baring Mss (O) MG 24. D21. Vol. 42. Thomas Payne Govan, Nicholas 54. Disraeli, Endymion (London, 2. Bates to Ward, 30 Oct. 1833. 26. Biddle (Chicago, 1959), p. 318. 1881 edition), p. 356. Ward papers, op. cit. 23. Ward to Bates, 7 June 1833. 43. Jenks, Migration of British Capital, 55. 24 Jan. 1836, op. cit. 3. Bates to Thomson, Bonar and Baring Mss (O) MG 24. D21. Vol. op. cit., pp. 95-6. 56. Barings to Hopes, 28 Oct. 1842. Co., 2 Feb. 1828. Baring Mss (O) 24. 44. Barings to Jaudon, 23 Aug. 1839. 406 The Sixth Great Power Notes 407 38. Journal of Benjamin Moran, op. MG24. D21. Vol. 19. 1883. Baring Mss (B) Letter 77. Revelstoke to Thomas Baring, cit., vol. II, p. 807. Books. 25 Aug. 1885. Baring Mss (B) 96. 27 Aug. 1853. Baring Mss (B). 39. New York Tribune (15 Oct. 1875). DEP 193. 39. 59. Ward to Barings, 14 Dec. 1880. Letter Books. 40. Baring Mss (G) MS 18322. Vol. Baring Mss (B) HC5. 2. 30. 78. T. Baring to Thomas Baring, 97. George Glyn to A. T. Galt, Nov. 33. 1857. Cit. Fulford, Glyn's, op. 60. Tom Baring to Revelstoke, 18 29 Aug. 1885. Baring Mss (B) 41. T. W. Ward to Bates, 26 Jan. April 1886. Baring Mss (B) HC5 Letter Books. cit., p. 154. 1851. Ward papers, op. cit. Bates 1. 27. 79. Thomas Baring to Revelstoke, 9 98. Galt to Thomas Baring, 26 June to Ward, 14 Feb. 1851. Ward 61. Vincent P. Carosso, More Than a Aug. 1885. Baring Mss (B) HC1. 1859. Baring Mss (G) MS 18321. papers, op. cit. Brown, Shipley Century of Investment Banking. HC5. 15. 24. 145. to Brown Brothers, 22 Sept, The Kidder Peabody and Co. Story 80. Thomas Baring to Revelstoke, 8 99. 14 July 1860. Baring Mss (G) 1860. Brown Brothers papers, (New York, 1979), p. 22. Oct. 1885. Baring Mss (B) HC1. MS 18321. HC5. 15. 24. op. cit. Brown, Shipley to Brown 62. Tom Baring to Revelstoke, 1 100. Galt to Thomas Baring, 3 Aug. 145. Brothers, 17 May 1865. Brown Feb. 1889. Baring Mss (B) HC5. 81. Barings to Kidder Peabody, 15 1860. Baring Mss (G) MS 18321. Brothers papers, op. cit. 1. 27. Oct. 1885. Baring Mss (B) Letter HC5. 15. 24. 42. 18 March 1869. Baring Mss (O) 63. Tom Baring to Revelstoke, 6 101. Bates to Thomas Baring, 30 July Books. MG24. D21. Vol. 23. Oct. 1889. Baring Mss (B) HC5. 82. Carosso, Kidder Peabody Story, 1858. Baring Mss (G) MS 18321. 43. Ellis Oberholtzer, Jay Cooke. 1. 27. HC1. 20. op. cit., p. 20. Financier of the Civil War, Vol. 2 64. 20 Nov. 1889. Baring Mss (B) 83. Cecil Baring to Revelstoke, 26 102. Bates to Young, 2 Nov. 1860. (Philadelphia, 1907), pp. 209- Letter Books. Jan. 1886. Baring Mss (B) HC5. Baring Mss (G) MS 18321. HC1. 10. 65. 1 Feb. 1877. Baring Mss (B) 20.8 1. 27. 44. The Herald (9 Oct. 1875). HC5. 2. 30. 84. An admirable portrait of Cecil 103. Bates to Young, 25 Aug. 1858. 45. Ward to Barings, 26 Sept. 1873. 66. Thomas Baring to Barings, 13 Baring is to be found in Daphne Baring Mss (G) MS 18321. HC1. Baring Mss (B) HC5. 2. 30. Feb. 1877. Baring Mss (B) HC5. Pollen's I Remember, I 20. 8. 46. Barings to Ward, 11 Oct. 1873. 2. 30. 104. Thomas Baring to Bates, 26 Remember, op. cit. Baring Mss (B) Letter Books. March 1861. Baring Mss (G) MS 67. Francis Baring to Barings, 8 85. Thomas Baring to Revelstoke, 9 47. T. C. Baring to Thomas Baring, 18321. HC1. 20. 8. Sept. 1877. Baring Mss (B) HC5. Aug. 1885. Baring Mss (B) Letter 2 Feb. 1866. Baring Mss (O) 2. 30. 105. D. G. Kerr, Sir Edmund Head. Books. MG24. D21. Vol. 23. 68. Ward to Barings, 14 Dec. 1880. 86. Lord Frederic Hamilton, The A Scholarly Governor (Toronto, 48. Barings to Hopes, 27 Feb. 1871. Baring Mss (B) HC5. 2. 30. Days Before Yesterday (London, 1954), p. 214. Baring Mss (B) Letter Books. 106. D. G. Kerr, Sir Edmund Head. 69. Thomas Baring to Revelstoke, 1920), p. 251. 49. Belmont to N. M. Rothschild, 12 Nov. 1890. Baring Mss (B) 87. Thomas Baring to Revelstoke, 5 A Scholarly Governor, op. cit., p. 23 Jan. 1873. RAL T58/134. HC5. 2. 30. April 1888. Baring Mss (B) HC5. 190. 50. Hopes to Barings, 1 Feb. 1873. 70. Ward to Barings, 24 Aug. 1878. 107. Heather Gilbert, Awakening 1. 27. Baring Mss (B) HC8. 1. XV. Baring Mss (B) HC5. 2. 30. 88. Thomas Baring to Revelstoke, 7 Continent. The Life of Lord Mount 51. Chapman, Rise of Merchant 71. Ward to Barings, 28 Feb. 1882. Nov. 1890. Baring Mss (B) HC5. Stephen. Vol. I (Aberdeen, 1965), Banking, op. cit., p. 97. Baring Mss (B) HC5. 2. 30. 27. pp. 160-1. 52. Barings to Ward, 6 June 1874. 89. Barings to Hincks, 12 Jan. 1849. 108. Beckles Wilson, The Life of Lord 72. Ward to Barings, 19 Feb. 1891. Baring Mss (B) Letter Books. Baring Mss (G) MS 18322. Vol. 19. Strathcona and Mount Royal. Vol Baring Mss (B) HC5. 2. 30. 53. Barings to Ward, 17 Aug. 1875. 73. Thomas Baring to Revelstoke, 4 90. Thomas Baring to W. Cayley, 8 II (Boston, 1915), p. 120. Baring Mss (B) Letter Books. Aug. 1885 and Sam Ward to Jan. 1858. Baring Mss (O) 109. Hopes to Barings, 24 July 1885. 54. Barings to Ward, 23 Dec. 1875. Revelstoke, 18 June 1885. MG24. D21. Vol. 24. Baring Mss (B) HC8. 1. XVII. Baring Mss (B) Letter Books. Baring Mss (B) HC1. 145 and 91. Fulford, Glyn's, op. cit., p. 152. 100. Gilbert, Awakening Continent, 55. Barings to Lee, Higginson and HC5. 2. 30. 92. Bates's diary, 10 Nov. 1858, op. op. cit., p. 179. Co., 13 Oct. 1876. Baring Mss 74. Thomas Baring to Revelstoke, 4 111. Cecil Baring to Revelstoke, 26 cit. (B) Letter Books. and 6 Aug. 1885. Baring Mss (B) 93. Barings to Hopes, 3 Jan. 1860. Jan. 1886. Baring Mss (B) HC1. 56. Russell Sturgis to Mr Roosevelt, HC1. 145. Baring Mss (G) MS 18321. HC8. 1. 27. 22 Feb. 1877. Baring Mss (B) 75. Revelstoke to Ward, 9 July 1885, .9. Letter Books. Baring Mss (B) Letter Books. 94. Bates's diary, 5 and 18 Jan. 1860, CHAPTER 13 (pp. 229-43) 57. Barings to Ward, Nov. 1882. 76. Thomas Baring to Revelstoke, 3 op. cit. Baring Mss (B) Letter Books. June 1886. Baring Mss (B) HC5. 95. Thomas Baring to John Ross, 8 1. Thomas Baring to Hottinguers, 58. . C. Baring to Ward, 2 Aug. 1. 27. April 1853. Baring Mss (O) 24 June 1863. Baring Mss (G) MS FIG. 1 John Baring of Larkbear, Exeter (1697-1748) m. 1729 Elizabeth Vowler (d. 1766) John Thomas (Sir) Francis Baring Charles Elizabeth (1730-1816) (1733-58) (1740-1810) (1742-1829) m. 1757 (1744-1809) m. 1758 m. 1767 m. 1767 m. 1780 Anne Parker Elizabeth Parker Harriet Herring Margaret Gould (d. 1765) John Dunning (later (d. 1804) I (d. 1812) Lord Ashburton of 2 sons first creation) leaving issue 4 daughters 1 son (Sir) Thomas Alexander Henry William George (1772-1848) (1774-1848) 5 daughters (1776-1848) (1779-1820) (1781-1854) see fig. 2 see fig. 3 see fig. 4 m. 1810 m. 1806 Frances Paulett-Thompson Harriet Hadley D'Oyley (d. 1877) (d. 1833) I I 1 son 4 sons 1 daughter 8 daughters Sir Thomas Baring (1772-1848) m. 1794 Mary Sealy (d. 1846) Francis Thornhill Thomas John Charles 5 daughters (1796-1866) (1799-1873) (1801-88) (1807-79) m. 2nd 1846 later 1st Baron Nortbbrook unmarried m. 1842 m. 1st 1830 m. 1st 1825 m. 2nd 1841 Amelia Porcher Mary Sealy Caroline Kemp Jane Grey Lady Arabella Howard (d. 1846) (d. 1840) (d. 1885) I I (d. 1838) (d. 1884) 2 sons 1 son 1 daughter 2 daughters Francis (1850-1915) Thomas 1 son (d. an infant) m. 1878 (1826-1904) 3 daughters Lady Grace Boyle later 1st Earl of Northbrook (d. 1935) m. 1848 Elizabeth Sturt Francis Arthur John Rupert (d. 1867) (1882-1947) (1885-1956) (1891-94) 4th Baron Nortbbrook Francis George Arthur 1 daughter m. 1st 1914 m. 2nd 1941 no issue no issue (1850-1929) (1854-70) Evelyn Charles Constance Griffin 2nd Earl of Northbrook (d. 1919) (d. 1976) m. 1st 1894 m. 2nd 1899 Ada Davidson Florence Abercromby Francis John no issue (d. 1894) (d. 1946) (1915- ) 5th Baron Nortbbrook no issue no issue m. 1951 Rowena Manning I 1 son 3 daughters APPENDIX II Partners of Baring Brothers & Co., 1762-1890 and Managing Directors of Baring Brothers & Co. Limited, 1890-1929 PARTNERS 1762-1776 Charles Baring 1762-1800 John Baring 1762-1804 Francis Baring (later Sir Francis, 1st Bt) 1781-1795 James Mesturas 1781-1809 Charles Wall 1804-1809 Thomas Baring (later Sir Thomas, 2nd Bt) 1804-1823 Henry Baring 1804-1830 Alexander Baring (later 1st Baron Ashburton) 1809-1823 John Deacon 1809-1828 Thomas Nixson 1815-1827 Swinton Holland The Hon. Francis Baring (later 3rd Baron 1823-1864 Ashburton) 1824-1847 Humphrey Mildmay 1828-1837 John Baring 1828-1864 Joshua Bates 1828-1873 Thomas Baring 1843-1867 Charles Baring Young 1851-1882 Russell Sturgis from 1856* Edward Baring (later 1st Baron Revelstoke) from 1856* Henry Mildmay 1867-1888 Thomas C. Baring 1867-1870 James Price 1867-c.1872 William Moir 1867-1878 Kirkman Hodgson 1867-1889 Charles Norman 371 Jessica u. Lepler so The Many Panics of 1837. N.Y: Cambrodge friversity Pisss, 2013. The Pressure of 1836 5I Cambreleng's speech, however, found an eager audience in Britain, Atlantic loans. "43 On the day after the Times published Cambreleng's Ignoring the partisan motives of the text, the editor of the Times asserted speech, Bates recorded in his diary that "the Newspaper contains accounts that Cambreleng's words and numbers had "greater importance" in of the great increase of Banks in the United States and expressed fears that London because they demanded a reevaluation of the security of the entire wrem were founded that a crisis may happen in consequence." Echoing the American financial system rather than just the policy of surplus distribu limes's opinion that "reflecting men" recognized a coming crisis, he wrote tion. In statistic-starved England, Cambreleng's data provided evidence in himself, "we must prepare for consequence. 44 June that democratized banking and decentralized control of the currency had Bates immediately strengthened the conservative strategy for the brought this important trade partner and potential test case of the joint American trade that he had begun formulating in 1835. Baring Brothers stock system to the brink of crisis. Given the sums British investors had supplied American merchants and banks with credit in the form of risked on American ventures, the Times editor believed that the figures exchange accounts that allowed these clients to write bills of exchange, cited by Cambreleng needed "to be made known and carefully watched in He immediately sent a letter to his Boston agent, Thomas Wren Ward, this country." He expressed the hope that the "utility" of publishing undering him not "to have any more exchange accounts at present," to Cambreleng's statistics would not be to cause "very extensive mischief" withdraw credit from several American state banks, and to "be cautious in but rather "that it may possibly, by exciting similar caution on the other granting credits in New York to houses having other accounts open in side, avert altogether the otherwise inevitable consequences. By mid I ondon." With this last request, Bates evidenced his loss of confidence not June, the Times concluded that "the rate at which the increase of bank only in the profitability of American paper but also in his fellow London capital is going on in the United States is quite portentous, and must bankers. He feared that if Americans failed to pay their bills of exchange, accelerate the crisis in that country for which all reflecting men are now English bill brokers who had extended credit across the Atlantic and tied prepared. News of American financial instability generated by the up their capital in this paper would not be able to pay their debts. By I American bank war was no longer merely ammunition in the English refusing credit to New Yorkers with other London accounts, Bates sought 7/22/1836 bank war; negative interpretations of American finance began to influence to prevent his firm's ensnarement in this web of dubious credit.45 By investors' confidence in the financial system itself. reacting early to the news, Bates anticipated a shift in confidence that extended far beyond his personal doubts. But he did not broadcast his Thanks to the Times articles and news from "the best private letters," the concerns. He did not need to; the Times had made American banking City's most important financiers began to express concerns about their important British news. investment in America. Joshua Bates penned his doubts in his diary. Into these swirling currents of doubt about American and British bank- These writings, unlike newspapers and letters, were not meant to circulate ing flew the carrier pigeon with news of Rothschild's death. Transacting but to relieve the pressure in the mind of a man at the center of transatlantie international negotiations while leaning on the same column of the trade; few financiers found time for this kind of reflection. In May 1836, , hange for more than thirty years, Rothschild had been characterized as he had already heard "a good deal of talk about gold going out and a # "pillar" of the exchange - a component of the architecture of the sentiment of money matters in the City." Although Bates believed that Empire's currency. 47 Attending his son's wedding in the German city of inquiry into American specie flows would "probably do good," he was Franklurt am Main, the fifty-nine-year-old Rothschild died of an infection concerned that "if carried too far it must end in panic. that spread from, as his son described it, "a most terrible boil on his As the summer wore on, the talk in the City spread to networks of bottom. The financial world grieved with memorabilia such as mourn- investors outside the square mile. Having recently agreed to sell a bond ing lings and silk scarves, which provided a balance sheet of his profits and issue for the Citizens' Bank of Louisiana, Bates's correspondents in philanthropy. A funeral procession of seventy-five carriages attracted a Amsterdam, lope & Co., complained that "the paragraphs in the Times growd "so great that many of the shops were shut to protect the windows respecting the unparalleled extension of Banking and Paper issues in the from the pressure." Nevertheless, pressure built in the streets and in United States are not calculated to strengthen the confidence in trans money markets. Several months later, one financier referred to Rothschild's death as "an event of some importance in the derangement The Many Panics of 1837 The Pressure of 1836 53 of the circulation of the country." He argued, "Iattribute much of the late their trust was not enough, the Josephs were willing to back up their claims embarrassment to the loss of that activity, zeal, and enterprise, which he with a "guarantee" of their own credit and capital. 58 Had Rothschild lived always displayed in times of financial difficulty. Without Rothschild's to read this letter, he may have reconsidered his faith in Hermann and creativity, few imagined a cure for the credit contraction. Confronted with signaled a different prediction for America's financial future. daily accounts of evil portents, most just wanted to survive. In his absence, Rothschild's sons met with Hermann and converted the Rothschild's survivors were no exception. "We shall be glad to learn general gloom about American business into policy. They declined to what effect the death of Mr. Rothschild is likely to have in London and "open a Banker's account" for Hermann. In a letter to the Josephs what measures will be taken for the continuation of his establishment," acknowledging the New Yorkers' "very favorable observations" about wrote Hope & Co. to Bates. 52 Less than two weeks after the funeral, Hermann, the Rothschilds cited "the unfortunate event which has lately Samuel Hermann would learn the "measures" Rothschild's widow and taken place" as a reason "not to have more bills out than we can avoid." sons intended to take as they faced the daunting task of continuing his Presumably, the "unfortunate event" referred to their father's death. 59 The global business. After months of travel, first from New Orleans to New vague phrase, however, could be interpreted differently. Across a busy York and then across the Atlantic to London, Hermann learned of intersection from their office, another "unfortunate event" was unfolding Rothschild's death. Undaunted, he continued with his mission to establish within the BOE. a line of credit for his expanding business; he may even have thought After the financial crisis in 1825, the BOE mapped a survival strategy Rothschild's death worked in his favor. for the currency based on the directors' belief in the Palmer Rule, which In 1834, Hermann had written to Nathan Mayer Rothschild proposing required evaluating the BOE's discounting business. James Pattison, gov- that his firm "may be in many instances useful to you - for this place [New ernor of the BOE, saw in the numbers recorded in his ledgers evidence of Orleans offers yet great chances for stock & exchange business." He approaching danger. Gold was vanishing, but no thief had penetrated the argued "the rising condition of this city requires a large capital - & vaults. The discount rate at the BOE had been low for several years, money may be placed at any time with perfect security either for a series encouraging trade, circulating the bank's gold supply, and producing of years or for a short period." He offered references from firms in Paris, shareholder profits; in July, the directors voted for a half of a percent Hamburg, and even Baring Brothers, but his letters failed to convince increase in the rate. 60 This increase suggested a subtle shift in the priorities Rothschild to invest in his firm. The next summer, the ebullient of the BOE from private profits and free trade to national security and Hermann decided to make his case to Rothschild in person. They were, protectionism. after all, both successful German-Jewish expats from Frankfurt. Just After Rothschild's death, Pattison examined the books of the BOE to before the two men met, a newspaper in Hermann's native district, the determine the effect of the rate increase on the currency. He found in the Stadtteil of Roedelheim, recounted his rags-to-riches story and described ledgers that over several months leading up to August, the BOE's bullion him as the "head of the first commercial firm in New Orleans." Similarly, diminished by several million pounds sterling. 6I This large drop in the shortly after Rothschild's death, newspapers eulogized him as a "self made bank's supply of gold left Pattison concerned that the BOE had not man," and a playwright described him as "the Honest Jew of Frankfort."56 achieved the desired ratio between gold and paper currency Connecting Similar biographies, however, did not translate into trust. In 1835, the Times articles with the ledger's data, Pattison became convinced that Rothschild chose not to invest in Hermann.5 his institution was losing specie because London investors sent it to The indefatigable New Orleanian planned a return trip in 1836. High America to supply capital for America's many new banks. As Bates warned prices in Liverpool combined with an anticipated bumper crop suggested a Ward in carly July, "the Governor of the Bank pretends to be or really is very profitable future to Hermann. Armed with a letter from the extensive most alarmed about the gold going to America and the amount of 7/6/1836 bill brokers, J. 1.. & S. Joseph & Co., who also served as Rothschild's New American bills in circulation. 62 For Pattison, the Times's reporting on York agents, I lermann again sought credit from the world's wealthiest the American bank war was no longer evidence to support his bank's banker. The Josephs assured that Hermann "enjoy[N] unreservedly our answer to the currency question but a direct threat to his nation's financial perfect confidence and therefore we recommend him to you." In case security. 54 The Many Panics of 1837 The Pressure of 1836 55 Unable to constrain the paper circulation of American banks and coins had not physically crossed the Atlantic. 68 If large quantities of satisfied that he had done all he could to diminish the paper circulation European gold sailed across the ocean, the money was French indemnity of British banks, Pattison devised a strategy for defending the BOE's gold. payments not British specie shipments. 69 Finally, as the BOE "lost" about Although he could have prevented the discounting of bills of merchants $17 million in gold and the United States imported only $7 million in the who traded with any corner of the globe, he would specifically target the twelve months before September 1836, some economists argue that those English firms that offered commercial credit to American merchants and involved in the market wrongly associated the BOE's specie with the sold American bonds and stocks to British investors. During the week prior American trade. 70 Of course, it is possible that Pattison had evidence to the August 24 meeting of the Committee of the Treasury, Pattison and that has not survived in the paper records. At more than a century's the directors informally decided to stop discounting the paper of seven remove, the destination of the BOE's gold remains a mystery to scholars. American houses. 63 But in some ways it does not matter, because Pattison's interpretation - Although the directors must have debated whether these American that American loans threatened British specie - fueled the BOE's policies. houses had exceeded the bounds of safe banking and were now threatening By August 1836, the English directors of both private financial institu- the currency of Britain, they left no paper evidence in the BOE's official tions, like Bates and the Rothschilds, and quasi-public institutions, like records. Instead, the clerk's pristine handwriting recorded that toward the Pattison, put in motion policies designed to protect themselves from the end of the very long Committee of the Treasury meeting, Pattison "laid financial crisis they predicted based on intelligence interpreted out of before the committee an account of the acceptances of certain Mercantile context. Houses in the hands of the Bank at stated periods. 64 The Committee of the Treasury "resolved that the said account be laid before the Court of Directors. The next morning, August 25, 1836, the Court of Directors, If the directors meant to keep their decision to stop discounting American the world's most powerful collection of financiers, officially began to bills of exchange a secret, they failed. Even before the directors recorded reconsider their confidence in America. Turning intelligence into policy, their official concerns in the BOE minute books, "an active intelligent the directors of the BOE set in motion the crisis they were trying to avoid. director of the Bank of England" informed one of the seven merchant Governor Pattison's presentation of the American houses' accounts banks, T. Wiggin & Co., that "more British capital has been absorbed by suggests that he blamed the American trade for the BOE's specie shortage. American and continental houses than can be spared." T. Wiggin & Co. More than a century later, economic historians argue that this may have immediately wrote to its agent in New York that the new policy threatened been an erroneous assumption on Pattison's part. The doctrinal belief of the reputations of individual firms, "however high may be their standing or nearly all bankers of the nineteenth century that adequate specie reserves credit," as well as investors' confidence in the larger Anglo-American prevented crises is now believed false; many other factors, including infor- trade. "This decision places all houses in jeopardy that do business with mation asymmetry and the velocity of money, complicate more modern American dealers in British merchandise," the letter warned. In response to models. 66 But assuming that the specie ratio was a valid indicator, the BOE the BOE's policy, T. Wiggin & Co. announced that it would contract the directors did not adequately monitor their supply. Troubled about specie credit it offered to American merchants. levels when the vaults emptied, the directors examined the forces with- Shortly after T. Wiggin & Co. sent this letter, the BOE directors drawing gold from the vaults more carefully than those that had deposited changed their minds. Bates explained to Ward, "We are indebted to the gold before 1836. The coffers of the BOE may have been artificially interest of the Liverpool cashier [of the BOE branch] for the first informa- swollen from the end of the East India Company's monopoly on trade tion of these foolish proceedings of the Bank, for he notified all the Banks at with China as well as the 1835 sale of the loan to compensate West Indian Liverpool which excited such alarm that a deputation came immediately to slave owners that troubled Bates during Forstall's visit to London. London which procured the recall of the obnoxious edict at once." In this Perhaps this capital had been loaned to the American houses, but economic single sentence, Bates combined two distinct stages of BOE policy making. historians have demonstrated that the specie supplies in America were The directors first decided to stop discounting the bills of the American composed primarily of Mexican silver, not English gold thus, the BOE's houses and then retracted this decision. 9/6/1836 Francois Forstenberg , N.Y. Penguen Press, 2014. WHEN THE UNITED STATES SPOKE FRENCH Franco-American Networks and Polite Atlantic Spaces 5 Refugees who Steped a Naton Morris's senior partner in Willing, Morris, and Company, the firm at after Noailles introduced his friend and business associate comte Alexan- which Bingham made his fortune while acting as its agent (and the agent of dre de Tilly to the Binghams. Tilly had landed in Philadelphia penniless, the U.S. Congress) in Martinique during the Revolution. The Bingham like many others, and as he sank under a mountain of debt he was deter- daughter Ann Louisa, in turn, married Alexander Baring, scion of the Brit mined to get back on his feet. A frequent guest at the Binghams' mansion, ish banking family that invested in lands with William Bingham. Ann's he drew the notice and then the affections of Maria Bingham, Anne and sister Maria Matilda would later marry Alexander's brother Henry, solidi William's youngest daughter; the love-struck fifteen-year-old sent him fying the bonds between one of the most important firms in America and chocolates and fruit from her parents' garden. Late one April night the two the rising mercantile star in the British financial galaxy.83 can off and were married. Her parents were frantic: Anne was said to be The French émigrés entered these circles in much the same way. Tal "very ill" and William to have "lost his senses." They sent a series of over- leyrand's companion Beaumetz married Henry Knox's sister-in-law. Knox wrought letters to Maria urging her to come home-just to talk, they a pillar of Federalist social life, was partnered with Bingham in a major claimed, though when she complied they promptly whisked her out of nancial investment in lands in the province of Maine. Beaumetz's friends town. Lawyers were mustered, legal suits threatened. Then the merchants warned him about what they considered to be an ill-advised marriage: "We jumped in. Negotiations ensued. Through the mediation of some of the tried to advise him against this union with a widow who has many children great bankers of the age, including Alexander Baring and Thomas Willing, and no fortune, but he was in no mood to listen to our arguments," Moreau Tilly named his price. For £5,000 cash plus an annual pension of £500 (and reported. "He got married and for his sake we agreed that his future wife all apology from Baring, who had struck him), he would agree to a divorce should have our interest and affection." Louis-Philippe, duc d'Orléans and leave the country. And SO the deal was done. Poor Anne Bingham: the who was now in the line of succession to the French throne, fell in love with episode became the talk of elite Philadelphia. "Now you see my dear," Rob- Thomas Willing's daughter Abigail (Anne Bingham's sister). One Philadel or Morris wrote to his daughter from debtors' prison, where he remained phian recalled seeing "a fine miniature likeness" that Orléans had drawn of in the wake of his spectacular financial collapse, "large fortunes do not al- Abigail placed on the mantel in the Binghams' reception room: "The Prince ways give happiness."89 was said to be fascinated by her handsome person, polished and graceful The more we examine such relationships, the more it becomes clear deportment." After a public courtship, the duc asked Thomas Willing, the that these marriages played a subtle but significant economic role in the conservative banker sometimes referred to as "Old Square Toes," for his United States and the Atlantic world. One of the great themes of this period daughter's hand in marriage. Willing refused; he allegedly told Orléans in of young ambitious men marrying into wealth and launching illustrious then a penniless exile-that he was "no match for my daughter." However, careers. William Bingham's marriage into the Willing family, Alexander Willing is supposed to have added, "If you ever become King, she will be no Baring's into the Bingham family, and Alexander Hamilton's into New match for you." York's Schuyler family are all different expressions of the same basic phe- Some relationships were more hidden than others; of a few, one gets Romenon. Marriage was the way two less eminent figures-William Ste- only tantalizing glimpses. Alexander Baring, for instance, reported to his phens Smith and William Jackson-made their entrée into these exalted father that Noailles' "very great influence in the Bingham family (stems) transatlantic networks: by marrying Abigail (Nabby) Adams, Smith be- from certain female reasons you will easily understand." If Sir Francis Bar same John Adams's son-in-law; Jackson married Anne's sister Elizabeth, ing easily understood these "female reasons," they remain more oblique to Becoming Willing's son-in-law. The young men had much in common. posterity. Other relationships became embarrassingly public, as happened Both had served on George Washington's staff during the Revolution. Both WHEN THE UNITED STATES SPOKE FRENCH Franco-American Networks and Polite Atlantic Spaces were dashing, polite, and endowed with fine manners, possessing little lerence to your decision if you knew that I was engaged to the daughter of family wealth but well educated and highly ambitious. Both served in a Sir Francis Baring?" he asked.8 series of appointed offices in the years after the war: in Europe as minor And that was how young Pierre-César Labouchère became a partner figures in U.S. foreign missions, as secretaries to more distinguished at Amsterdam's most important firm and married into one of the most il- figures-Jackson under John Laurens during the Revolution, and Smith lustrious banking families in history. under John Adams after. Both later used the international contacts they had forged in these diplomatic missions to advance their business interests and their family prospects. And both proved to be disappointments to their WHEN ONE begins to see how marriage and kinship facilitated upward mo- relatives. Smith's marriage and career were notorious failures. As for Jack bility and forged mercantile connections, the centrality of women's roles in NON, if his marriage-at a wedding attended by Washington and Jefferson these networks becomes ever more interesting. Success was as much a among others-brought him obvious financial advantages, the benefits for function of kin and social networks as it was a matter of individual uplift the Willing clan were less apparent. "The Major in general did not please, (II hard work. The émigré constituants were, with only one exception, sin- one witness reported. "It is whispered in the Court of Scandal that family gle men traveling across the Atlantic. But the world they encountered in circumstances rendered the event necessary."86 Philadelphia, which opened up all kinds of social and economic opportuni- Certainly no case of marriage into a prominent family was more dra lies, was shaped by women and their elaborate family networks. TRUST matic, or brought more financial rewards, than that of the young banker Trust means everything in long-distance trade and finance. That is Pierre-César Labouchère, Born in The Hague in 1772 to a French Protestant why personal, social, religious, and familial networks have played a crucial family that had fled France after the revocation of the Edict of Nantes, role since the earliest days of capitalism. Without trust, capitalism breaks Labouchère was sent to his uncle's firm in Nantes at the age of thirteen, down. This was true for fourteenth-century Italian city-states like Florence where he was trained in finance. In 1790 he began work as a clerk with the (II Genoa and eighteenth-century merchants and bankers, and it is still true Hope firm of Amsterdam, then the Netherlands' most important merchant for modern financial actors. Just as politics worked through personal rela- bankers and financiers. At the age of twenty-two, already chafing under lionships before the infrastructure of political parties had fully developed, the restraints of his lowly position, Labouchère traveled to London, where NO did business work through personal networks of trust in an era before he began to court Dorothy Baring, the daughter of Sir Francis Baring, the the infrastructure of the capitalist economy (rapid communication, credit Hopes' British associate. According to family lore, it was then that he asked reports, etc.) had fully developed. Friends and political associates became Sir Francis for permission to marry his daughter. Not surprisingly, Baring business partners; business partners became family by marriage. The let- refused, on the grounds that a mere clerk was no match for his daughter lets of introduction that circulated across the Atlantic, allowing émigrés "Would it make any difference to your decision if you knew that Mr. Hope to penetrate the social networks of American life, paralleled the letters of was about to take me into partnership?" Labouchère asked. Sir Francis ad credit and bills of exchange transmitted through the same channels, mak- mitted it would. Pierre-César then rushed back to Holland, where he de ing 11 possible to conduct business in far-flung places at a time when en- manded that Henry Hope make him a partner. Of course, the powerful suring the reliability of information across the vast distances of the Atlantic banker had no intention of promoting a mere clerk to the partnership, But world was perhaps the most pressing issue for international merchants and now Labouchère had a trump card up his sleeve: "Would it make any dif speculators. Indeed, letters of introduction were carried by the same net WHEN THE UNITED STATES SPOKE FRENCH Franco-American Networks and Polite Atlantic Spaces works of circulation that tied the Atlantic economy together. "You will have Sunceive," Baring continued in the same letter, "that dishonour to their many ways to correspond by the route of commerce," Talleyrand wrote to Signatures on a very small sum would totally incapacitate them for drawing his friend Madame de Staël, "which I prefer to the means of ambassadors Hapence."90 The importance of social networks to transatlantic finance was plainly The merchant John Swanwick was a case in point. Swanwick had risen evident to Alexander Baring, scion of the rising Baring Bank, when ha In prominence through Robert Morris, becoming a partner in the firm landed in the United States in 1795. "I have been introduced to most of Renamed Morris, Willing, and Swanwick in 1783, and then serving as ca- the respectable characters in town much to my satisfaction & information thier of the United States under Morris. A leading stockholder in the Bank he wrote to his Dutch business partner John Williams Hope shortly after al the United States, Swanwick acted as a principal broker for major Amer- his arrival in Boston. "I am constantly out in some company & am ban and Dutch investors. In 1796 his fortune was estimated at nearly ways collecting information of [a] different kind." Alexander Baring's fu $85,000. By the time Baring arrived in Philadelphia in the mid-1790s, ture brother-in-law, Pierre-César Labouchère, would make the connection Wanwick had entered politics and joined the Democratic-Republican between sociability and economic interest even more explicit a few years Party as a vocal supporter of Genet and an organizer of various pro-French later. "Nothing can be done here without mixing as much as possible in the political events. Now separated from the Willing firm, he nevertheless world," he wrote to Francis Baring from Paris. "It is even at the theaters that continued to do substantial business with the Barings. But Alexander Bar- one derives information, and Coffee House clerks are as the lowest Ebh the quickly became critical of Swanwick, calling him a "Jacobin," "a ras- Much of this information was spread through rumor and seemingly idla lal." and a "brouillon" on various occasions. He urged his father to end talk-Baring's letters are littered with phrases like "it is here said," or "It their connection-but only after having settled accounts. "You should I considered here," or, best of all, "it is whispered." In such a context, one's think liquidate his account," Alexander wrote to Francis in late 1796, "and social connections, one's reputation, and one's access to timely and reliable and il to him as soon as possible and when the ballance is setled tell him information could easily mean the difference between fabulous wealth and Plainly that you withdraw all credit which will of course close your con- devastating bankruptcy.89 tion." To cut him off too soon would have left the Barings stuck with Credit was the key term. "Credit in this country is a delicate subject Awanwick's notes, which would rapidly depreciate when the word spread. Alexander Baring wrote to his father, as he traveled down the East Coast But once they balanced the account, they could withdraw their credit and checking in on his family's business relationships and exploring invest Bolity the merchant community.9 ment opportunities. Some partners, like Thomas Willing, he found trust And that is exactly what happened: Swanwick blamed his collapse in worthy, and by broadcasting his confidence to associates and acquaintances 1297 "on the secret rejection of his bills of exchange on the Baring Broth- he could actually increase the value of Willing's bills of exchange. "The Crushed financially, Swanwick was forced to auction off his posses- uniform support you have given to Willings," Baring wrote to his father Mon. including his library of thirteen hundred volumes. He was bankrupt "the footing I am on with them, and the positive manner I speak to my and depressed, and one observer thought he would die of a "broken heart." friends here of them has placed their paper in the very first rank and they was not his heart, however, but yellow fever that killed him some months have made and can still constantly make a higher exchange than their later. at the age of thirty-nine. Swanwick had seemingly forgotten-or neighbours whose bills are occasionally disgraced." On the other hand, the infored the importance of social networks to his financial and indeed consequences of Baring's disapproval could be disastrous. "You may easily physical well-being, and it had cost him dearly. ¹ 257. WHEN THE UNITED STATES SPOKE FRENCH Transatlantic Land Speculation in 1795, they brought so much gold that the Royal Navy sent a frigate to All this mobile capital needed guidance. It needed careful, intelligent, escort them. Investors in the United States waited to see where all this cap= and, most of all, trustworthy intermediaries. If the Scioto Company scan- ital would wash up. The triumphant French armies would oblige "a quan dal had shown anything, it was that unscrupulous men on the make played lity of riches Capitalistes hollandois to quit their homes," Théophile too central a role in international speculation. This had no doubt been true Cazenove wrote to Alexander Hamilton in January 1795, just before French since the earliest days of long-distance finance, but how to distinguish be- forces entered the city. "These émigré Capitalists will probably have taken a Iween the unscrupulous and the visionary became an acute problem in large amount of various debt instruments issued in Amsterdam." Even the times of revolution. Were they two sides of the same coin? Those who spec- considerable financial demands of the British state were unable to absorb ulated were almost by definition risk takers. They were the audacious ones the deluge. As interest rates in Europe declined-keeping British borrow who looked down into the abyss-and took the plunge. Sometimes they ing costs low and helping fund its war against France-this itinerant capital landed safely and sometimes they didn't. William Duer had seemed like began searching further afield for more profitable outlets. "Given the po- a safe bet-until he wasn't and sought refuge from his many creditors litical state of Europe," commented Talleyrand, "there is surely some capi in debtors' prison. Robert Morris, much more famous and successful than tal looking to escape." It was a remarkably modern way of thinking about Duer ever was, had seemed like a far safer bet-until he wasn't, either. In the circulation of capital: as Talleyrand put it, of "funds which seek new the fall of 1798 he watched the progress of another outbreak of yellow fever employment." And what better haven existed than America? "In a state from a cell in debtors' prison. "Death will soon enter the door opposite which is approaching prosperity as rapidly as America," he wrote, "the mine," he wrote to his former partner John Nicholson, another prominent most liquid and extensive capital is strongly attracted." As Talleyrand financier about to join Morris in prison. Whom were Europeans supposed toured the American backcountry in 1794 he found himself "wishing that to trust? Perhaps there might be a role after all for men like Talleyrand and it part of the considerable capital that was coming to shelter itself in Amer- Liancourt, Noailles and Cazenove-intermediaries who could more wisely ica would be used in clearing the land and for large-scale agriculture." channel mobile capital into the United States.42 As for Liancourt, the more he traveled, the more persuaded he was of the potential profits from land speculation. Everywhere, it seemed, farm values were steadily rising: "New lands, cleared under his own supervision, IN JUNE 1796, while Volney was traveling through the Ohio valley, an un- IN still perhaps the most profitable investment for the father of a family," usually distinguished traveling party left Philadelphia. Among them were The same was true of uncultivated tracts. "The increase of the price of land William and Anne Bingham with their two daughters, who after nearly a is uncommonly great," Liancourt marveled. "It has more than doubled year of private lessons with Volney were growing increasingly fluent in within the last three or four years." Everyone seemed to be making money, French; Anne's sister Elizabeth Willing, now married to William Jackson; "Every step we take in America, either in towns or in the country, shows the vicomte de Noailles, described by this time as "a necessary family ap- that a fortune is available for one who takes the trouble to seek it." It was pendage and also an agreeable travelling companion"; Mr. Richards, a not long before he decided on land investments as the pillar of his finan Briton being groomed to become a land agent; and Alexander Baring, the cial strategy, writing to his wife that he would invest "in well chosen lands future Lord Ashburton. From Philadelphia the party traveled overland to of America, which will double in value, increase ten-fold, perhaps, in the New York, along the road that had become so familiar to Talleyrand and space of eight to ten years. It is a capital idea. It is the one that is, for future the other émigrés who shuttled back and forth between the country's two events, the possible foundation of the comfort of our family." principal commercial cities. From there, they boarded a ship on the south- WHEN THE UNITED STATES SPOKE FRENCH 259 Transatlantic Land Speculation ern tip of Manhattan and headed north along the East River, through the characters who frequented Anne Bingham's salon in Philadelphia, includ- Hell Gate, which opens into Long Island Sound, passing the remnants of a ing not just Noailles but also Liancourt, Talleyrand, and Cazenove. It began British frigate that had been cast on the rocks during the Revolution by the with Henry Knox, another pillar of Federalist high society, the founder of dangerous mix of currents and tides. They arrived in Newport, Rhode Is- the Society of the Cincinnati, who began his career as a Boston bookseller land, and traveled from there by land to Providence and Boston. After but got his real launch by marrying into a wealthy family with extensive spending several days socializing in the salons of Boston's elite, they sailed interests in Maine lands. During the Revolution, Knox rose in rank to be- for Maine in mid-July. Finally they arrived at their destination: Henry come the youngest major general in the U.S. Army. The defeat of the British and Lucy Knox's four-story, 3,025-square-foot-per-floor mansion named Empire pushed out the Loyalists who had laid claim to much of Maine- Montpelier, in Thomaston-"very fine, Baring described it, "bordering on then still part of Massachusetts-creating opportunities for ambitious magnificence." This was the centerpiece of Baring's newest American in- Americans eager to get their hands on backcountry lands. But the war vestment on behalf of his family's firm and the Hope firm: £100,000 placed ended with land rights in Maine hopelessly confused, forcing Knox to the in two million acres of Maine land.43 Massachusetts courts, which, thanks in large part to his political connec- The travel party was just that- a public relations stunt as much as a tions, obligingly cleared the title to various legally dubious patents in 1785. business trip. "The projected excursion makes a deal of noise here & will It was a good time to buy. The country was in the midst of a postrevolution- do all over the country where we pass," Alexander Baring wrote to Henry ary depression, with the circulation of specie at a nadir; few legislators lope. With "such fine ladies in traveling every lady's curiosity is raised wanted to risk raising taxes and fomenting popular discontent. It was much to the highest. The Ladies' company & presence on the lands will be of in- easier to pay off the wartime debt by selling off huge tracts of land to finite benefit." Even President Washington had heard about the expedition, wealthy merchants and financiers.45 writing to William Bingham and "wishing him, Mrs. Bingham and the Teaming up with the ever-resourceful William Duer, Henry Knox laid Party, a pleasant journey, and Safe return." Learning about the trip from claim to huge tracts of land in a series of secret purchases; by 1792 they London, the Hopes and Alexander's father, Sir Francis Baring, offered pub- owned nearly 3.5 million acres in Maine, with payments to be forthcoming. licity tips from across the Atlantic. "I am aware, that your purchases, the l'he next step was to raise the funds to pay the initial installment. Knox journey, and various circumstances," wrote Sir Francis somewhat crypti- and Duer turned first to some French emigrants-hapless former investors cally, "may occasion an éclat, and perhaps excite a degree of enthusiasm in the Scioto Company. Forming an outfit called "The French Company of which must be siez'd and promoted at the moment." With the public's eyes the Union, planned for a colony of exiles," they traveled to Maine in 1791 to on Maine, it would be a good time to sell land. Anything that might drum negotiate with Duer and Knox, with Aaron Burr apparently providing legal up attention was encouraged. "You will with your ladies have ample scope advice. They could not agree on terms, however.46 to exercise your ingenuity in finding names for our districts and town When Duer fell into bankruptcy in 1792, the entire venture verged on ships," wrote Hope. Even Sir Francis chimed in with suggestions: "What do ollapse, and Knox searched desperately for a savior. Théophile Cazenove they think of the following as additions to their Henry, I leave to sent an agent to Maine to assess the quality of the lands but decided against themselves, but there remains Adrianople-Philip ville or Phillipsburg- purchasing on behalf of his Dutch investors. It was then that William Bing- Williamstown in the North as a counterpart to the Williamsburg in the ham stepped in, agreeing to acquire Duer's stake. (He later vowed that he South. would never again buy a million acres of land without seeing it first.) The deal had been a long time in the making. and included many of the holdings consisted of two large tracts, one along the coast, and the other, 261. WHEN THE UNITED STATES SPOKE FRENCH Transatlantic Land Speculation the "Kennebec tract," in the remote inland reaches of Maine. Even with THE MAINE LAND PURCHASE Bingham's considerable support, however, the investors needed more capi- tal in order to meet the payments promised to the Massachusetts legisla- ture. "It will not be long," Talleyrand predicted, before Bingham himself would become overextended, "if he does not dispose of several million acres which he has acquired in the north of America." None of this, more- over, counted the infrastructure improvements that would be necessary to Quebec unlock the value of undeveloped land. "American capital,' (Bingham wrote to Knox in 1795, getting increasingly desperate, "is not sufficiently exten- sive to embrace all these vast objects. We must have recourse to Euro- pean capitals and engage them in our concerns."47) Bingham and Knox first courted Talleyrand, who was then planning to tour the backcountry. Armed with a letter of introduction from Knox to prominent Bostonians, Talleyrand traveled in August and September of 1794 with his friend Beaumetz to investigate the Maine lands, spending several days at Knox's home, Montpelier (it "would even be beautiful in Europe," commented Talleyrand). Talleyrand was always a shrewd ob Bingham Alexander. server, but in this case he paid particularly close attention. "We were on the Baring property of the people to whom we were the most attached in America," H Bangor Talleyrand reported, "and we looked at the territories of Mr. Bingham and the General Knox with the greatest care and interest." Cazenove was evi- Hope Gouldsboro dently still pondering some sort of investment, since he gave Talleyrand a Augusta list of printed questions about the lands before he left Philadelphia, and Thomaston sent a Dutch companion to accompany him and Beaumetz through Maine, In addition to the long report he prepared in response to Cazenove's ques. Portland tions, Talleyrand also forwarded a brief account of the lands to Alexander Baring.48 NEW Miles 100 HAMISHIRE Overall, Talleyrand was favorably impressed with Maine, its health, its 0 Kilometers 100 word?" fertility, and its extensive water system. Talleyrand noted in particular the deep harbors, excellent for shipping, shipbuilding, and naval support; the William Bingham and Henry Knox owned two large tracts of Maine near the contested U.S./Canada border. (They spent several years soliciting purchasers, hosting potential in- network of rivers that allowed for easy communication and transporta vestors in Knox's mansion in Thomaston Talleyrand and Liancourt among them-and tion; and the forests and trees, which offered rich resources for commerce sending agents to London and Paris to lure foreign capital into Maine's forested lands, and navies. Indeed, it was Maine's prodigious lumber supplies that would entice Baring two years later; "The Southern states, as well as the West In WHEN THE UNITED STATES SPOKE FRENCH MDI 263 Transatlantic Land Speculation Given an adequate financial commitment, Talleyrand believed, the region dies are supplied entirely from Maine, the old countries being exhausted." rand met some local inhabitants who thought they "recognized in him an illegitimate son of the pretty daughter of a fisherman and the captain of a would take off. The more he traveled, the more convinced Talleyrand be- French national ship which had been there about the year 1758." Thus was came that the key to this new society was capital investment. "Agriculture," born the rumor that Talleyrand, scion of one of France's noblest families, he decided, "could very usefully absorb much more capital than it cur- was in fact the illegitimate child of a Mount Desert, Maine, fisherman's rently uses. daughter.51 The émigrés had long studied the relationship among commerce, agri- Having failed to entice Talleyrand and Cazenove, Knox and Bingham culture, and economic development. "Agriculture is the basis on which all began to court Liancourt. Not long after Talleyrand's return to Philadel- States are founded," Talleyrand wrote in his memoirs. "It is agriculture, phia, Noailles made Liancourt a proposal on Bingham's behalf. Within and I say this with the économistes [Physiocrats], that forms the chief wealth days, Liancourt had made a short excursion outside the city to visit some of the State, that teaches respect for property, and signals that our interest lands that Bingham wanted to sell. A month later, Liancourt dined at No- is always blind when it interferes with the interests of others; it is agricul- milles' with Bingham. "Spoke about the lands in the province of Maine," he ture that points out to us, in the most immediate way, the indispensable noted in his diary. Liancourt did not specify the nature of the proposal, but relationship between the duties and the rights of men; it is agriculture that, il probably involved sending him to London or Hamburg to find investors. by binding the tiller of the soil to his field, binds men to their country." No Months later, Bingham was still hoping that Liancourt might "be disposed wonder he and Liancourt were friends. The influence of French liberal to undertake some part of the business relative to the sale of the Maine thought could not have been clearer. "We saw society at its origin," Talley- Lands in Europe." It was a common practice, one the Scioto associates had rand wrote to Cazenove with wonder. "We have witnessed the birth of a employed by sending Barlow to Paris. "In general there are few rich people people arriving on the theater of the world destined by nature to play an in America & Opportunities for investing Money very numerous," noted a important role in the American federation."30 Dutch investor with close ties to the United States. "Many therefore bought In the end, though, Talleyrand concluded that the region, for all its more than they were able to pay for & thus often dispatched Emissaries to potential, had too many flaws. He was unimpressed with Maine's residents, Europe to dispose of part again by the Lump with some advance." Lian- whom he called lazy and avaricious. He worried about their loyalty to the court had all the right qualities for such a mission. "His intelligence, his state. If those who tilled the soil were bound to their country, what about activity and his private character all favorable," Bingham observed. But the many fishermen who populated Maine, sending salted cod to Europe most of all, he was well connected: "a person of credibility," benefiting from and the Caribbean? "To which country does a resident of the sea belong?" the "weight of personal character, to support the recommendation," of the Add to its residents' general predisposition their distance from the federal lands, someone who would be trusted by "the great capitalists of Europe." government and their persistent dislike of taxes, and Talleyrand wondered Knox agreed. "No man would be more industrious or impressive" as their about the future of the province of Maine. Would it even remain part of the representative in Europe, he wrote, evidently thrilled by the possibility. "He United States? Ultimately, he concluded, Maine wasn't agricultural enough, is really a man of business and perfectly calculated for this country. Unas- and its economy not diversified enough. And SO he chose not to invest, and suming and persevering, and at the same time he would be delighted with gave the same recommendation to Cazenove. Though Talleyrand's Maine such a work of creation, as would be in his power." Liancourt's qualities, his travels did not result in an agreement They did produce at least one endur- connections, and most of all his reputation would surely lure foreign buy- ing anecdote. While he and Benumetz wandered the Maine woods, Talley- ets. "A man of his character being an active member of it company." Knox 281 UNITED STATES SPOKE FRENCH Transatlantic Land Speculation ne daily," he complained in 1810, "would require the Buffalo-also on company lands. In 1817 the Holland Land Company do- he United States to supply."75 nated one hundred thousand acres to provide a route for the canal and to support its financing. When the canal route was finalized, Ellicott raised the price of company land by $1.50 per acre, and estimated the increase in teenth century, broad swaths of the U.S. backcoun land values at $1.2 million. But that was not all: when the first loan to fund gn investors or reliant on foreign investment. Euro the Erie Canal was floated in 1817, more than a third of it was taken by two ed its long fingers from the coast of Maine, across London investors, and there is some evidence that the director of the Hol- New York to the Great Lakes, along river routes land Land Company helped secure the European market for canal loans. stern Pennsylvania, and deep into the Ohio valley By 1829 more than half of New York's outstanding Erie Canal debt was held rate distant borderland areas-where the United abroad.76 Saint Lawrence and Mississippi watersheds-which The Holland Land Company was not the only European outfit to play by Native American nations to the west and Euro an important role in the growing American economy. Soon after they rth and south. The capital moving into these areas launched themselves in Maine, the Barings emerged as the most central unction, helping to orient the economy of these player in U.S. government finance) Securing that connection may well have ard-facing regions toward the East Coast's port cit been one of Francis Baring's motivations for sending his son to the Bing- say that it imposed its own geography on the conti hams' mansion in the first place; it was certainly its most important result. y. In 1795, before Alexander left for America, Bingham tried to lure the Bar- more critical to the development of western New ings with promises of lucrative government contracts. "From my present nal, eventually completed in 1825, which famously Situation [as U.S. senator] & more immediate relationship with the Admin- kes to the Atlantic coast, pulling trade away from istration of the Executive Department of the Government"-Bingham had t Lawrence Rivers and to New York. Less known is just recently been elected to the Senate and referred here to his father-in- he Holland Land Company in its development, As law, Thomas Willing, the president of the Bank of the United States- "I r Hamilton's father-in-law and major New York have had an opportunity of recommending your House to the Secretary of ler floated a plan to extend the title of lands owned the Treasury, for the Agency of a Business which the Bank of the United ndition that Holland Land Company stockholders States has already made known to you. I shall be happy in finding new Op- I of $250,000 to the Western Inland Lock Naviga portunities of rendering you Service," he promised. Two days later, Bing- h the company refused, seeing the offer as a form ham wrote another letter to the Barings "informally, as it relates to the ection between the Holland Land Company and Bank Direction, but with the Privity of some of the Directors, & of the . Joseph Ellicott, the company's agent, started lob Secretary of the Treasury, with whose Department the Bank of the United 08. In 1816 he was named as a commissioner to the States is intimately connected."77 h gave him a perch from which to route the canal l'his was, as Bingham intimated, the beginning of a long and mutually 4, Ellicott, in turn, appointed his niece's husband, beneficial relationship between the United States and the Baring Bank. No Holland Land Company, as the engineer to select doubt the United States benefited. A few years later, the Barings raised inus. After a long fight, the Eric Canal board chose money for U.S. negotiations with the Barbary States and funded the Quasi 283 WHEN THE UNITED STATES SPOKE FRENCH Transatlantic Land Speculation War with France, buying 11,000 muskets and 330 cannons from the British the 1790s and to the growing partnership between the Barings and the government on behalf of the United States. From the Barings' perspective, Hopes forged in the cauldron of the French Revolution. Looking back on the growing value of American securities on London capital markets was that period some years later, John Williams Hope recalled the significance due at least in part to their relationship. "I will venture to assert," Sir Fran- of Alexander's trip to the firm's business: "A very few years after his first dis Baring bragged in 1804 to Albert Gallatin, Thomas Jefferson's Swiss- passage to A[merica]," he wrote to Henry Hope, "our confidence became born treasury secretary, "that the estimation in which the American funds fixed as to the gov & funds of that country; and that our intercourse with are now held in this Country, may be attributed in some measure to the him ever since has effectually Confirmed & riveted it." By the time he accommodation and facilities of every description which my House has wrote those words, in 1804, one year after the Louisiana Purchase, John constantly furnished. By that time, the Barings were acting as London Williams Hope could claim, "We have an unlimited credit for A[merica] agents for the U.S. government-a function they would perform until certainly more than for any Gov+ in E[urope]."8 1835 even as they continued to finance major government projects as well By the time state capital began aggressively funding internal improve- AN individual states' debt.78 ments, in other words, it followed the path that men like Talleyrand, No- This was the long-term legacy of young Alexander Baring's travels to milles, Cazenove, and Liancourt had already cleared for private capital. The the United States in the 1790s: not his investment in Maine, but rather his growing capital flows from Europe would go on to fund U.S. expansion marriage into the Bingham-Willing family and the establishment of secure into the Mississippi valley and lay the groundwork for the industrial devel- channels of British capital into the United States. Soon after he arrived in opment of the Old Northwest-from canals to railroads to mining to con- 1795 and became acquainted with American merchants and their credit struction, and more-a of it built on the channels of capital first established networks, he remarked to his father that "we may through the same chan after the American and French Revolutions. It was very much what Hamil- creep into other very respectable connections here." They certainly did. (on had predicted in his 1791 "Report on Manufactures." Within a few de- The years following Alexander's trip to the United States correspond ex undes, the Holland Land Company tracts became an industrial center. actly with the shift in the Barings' North American business. "So marked Large stretches of the Ohio valley, including the area surrounding Lake was the geographical re-alignment of the house's business," the Baring Eric and future cities like Cleveland, evolved into the heartland of Ameri- Bank historian John Orbell has written, "that, in 1808-13, 70 to 80 per cent can industry. Indeed, William Bingham may well have stated a grand truth of the commission income was derived from 'American and Colonial Ace about American history when he observed to his future son-in-law Alexan- count." The Barings' American work continued to grow in the years that der Baring that "foreign Capital has been uniformly, from the first Es- followed By the end of the 1830s, the firm had funded the debt of Ohio, tablishment of this Country, the operative and influential Cause of its Indiana, Illinois, New York, Louisiana, Florida, Kentucky, and Maryland, Prosperity."81 among others. Meanwhile, the Hope firm of Amsterdam expanded its American business to become the most important issuer of U.S. federal and state se IN EARLY November 1795, Liancourt returned from his travels through urities to clients in Holland and throughout Europe, marketing Pennsyl Pennsylvania, New York, and Maine. He'd been gone for six months, COV- vania, Ohio, Indiana, Illinois, and Louisiana bonds, as well as those of ered thousands of miles, seen millions of acres of land, invested in some various municipalities. All of it was traceable to Alexander Baring's trip in and turned down most, and learned enough about the United States to fill 401 WHEN THE UNITED STATES SPOKE FRENCH The Émigrés Return to France; France Returns to Am sissippi River could take New Orleans and hold the entire valley. It had isiana will give me the initial funds for war on the English scoels." been a central and continuous theme of their military assessments for more After haggling for several days, with Barbé-Marbois leading thetia- than a decade.89 tions and Talleyrand helping them along, the two countries agion a American ministers knew that French leaders feared a British conquest purchase price of $15 million, $12 million for France and $3 milliorettle of the territory, and emphasized that danger. "If you occupy Louisiana you the claims of American merchants against France.87 won't have time to establish yourselves," Robert Livingston warned the But where was the money to come from? French borrowing awere French minister of the navy. English forces had only to "descend from Can nearing their peak; no French banks were willing to engage in surisky ada by the Mississippi," and Louisiana would "fall into the power of the loan when they had safer and more lucrative places to allocate thepital English." A British Louisiana joined to Canada would make Great Britain at home. Certainly the United States did not have the money. Thern- the "exclusive master of the fur and skins," according to one French report ment's annual revenue amounted to a mere $10 million. It was inosi- Allied to the United States by habits, language, tastes, and opinions, Brit tion to make such a huge payment. When Livingston expressed hiserns ain would then be in a position to "monopolize South America." On the to Barbé-Marbois, he was told that Napoleon thought the Unittates other hand, (ceding Louisiana to the United States might create a long should just borrow the money. And so the two countries turned troup term counterweight to British influence. 'To liberate people from the com of bankers with extensive experience in transatlantic finance. Whéo- mercial tyranny of England," Napoleon presciently argued, "it must be phile Cazenove in Paris advising Talleyrand, the sale was finarby a counterposed by a maritime power that might one day become its rival consortium made up of the Barings, the Hopes, and William Binn.88 it is the United States." Certainly an American Louisiana, by eliminating How the group managed to secure the Louisiana deal remainlear. the greatest cause of dissension between the two nations, would dramati Perhaps it was Alexander Baring who set the stage when he touredis in cally improve Franco-American relations: "It appears to me that in the 1802 and, according to a diary he kept of the trip, dined several tiwith hands of this growing power, it will be more useful to the policy and even Talleyrand. According to Senator Volney, who dined with Talled in to the commerce of France," he predicted. A generous cession by France November, Bingham was also in Paris and had already stopped i1Vol- might thus strengthen Franco-American comity and long-term trade. It ney for a visit; in December, Livingston reported having introducing- was a parallel to the thinking that had led Lansdowne to offer those gener ham to Napoleon. Or perhaps it was Pierre-César Labouchthat ous concessions in the Ohio valley to the American negotiators back in enterprising French partner in the Hope bank and Alexandering's 1783. Then, British officials offered an expansive territory to the United brother-in-law, who laid the groundwork. In 1801 Labouchère wro Sir States that was not even theirs to give in order to disrupt the Franco Francis asking him to "procure me a letter for Mr Livingstonn M American alliance; twenty years later, French officials employed the same King." Or perhaps it was, as Barbé-Marbois recalled, the Americego- strategy to disrupt the Anglo-American alliance.40 liators who insisted that the Barings and the Hopes get involved. Tal- And so at last, French dreams of an empire in America came to a leyrand secure a bribe from the bankers he'd known back in Phibhia, close. On April 10, Talleyrand met with the American ambassador Robert cashing in at last on American lands? A clue might have been d in Livingston and asked him-whimsically, as though the thought had just Théophile Cazenove's papers, but Talleyrand confiscated these I his crossed his mind "whether we wished to have the whole of Louisiana friend died, despite vain appeals by Cazenove's son. Only tracetheir There he was: once again selling American lands. But they still had to agree collaboration were later discovered, in the form of a few letters PTal on price. "I need a lot of money," Napoleon warned his negotiators, "Lou leyrand to Cazenove found in a bookseller's stall on the Paris qunany toi WHEN THE UNITED STATES SPOKE FRENCH The Émigrés Return to France; France Returns to America years later. There is some indication that Sir Francis Baring cut Rufus King have been wise for this country to pay a million sterling for the transfer of in on the deal; if so, that would not be surprising: the American ambassa Louisiana from France to America," Henry Addington, the British prime dor to London had done business with Robert Morris and Talleyrand in the minister, told Francis Baring, and allegedly "saw nothing in our conduct United States some years earlier.89 but to approve." Addington-not, by some accounts, the brightest bulb ever As for the terms, Alexander Baring took charge of the negotiations fill to grace the British prime minister's office-would later change his mind. Francis even claimed that it was his son who persuaded the French govern The U.S. government would also have qualms about how much the Barings ment to lower their initial price. "The demand of france was originally 100 and Hopes earned from the transaction, which Secretary of the Treasury million of Livres," he wrote, "& I believe that M. Livingston & M. Monroe Albert Gallatin estimated at $3 million, Even Francis Baring worried that will allow, that merit was due to my son for reducing the price & facilitating the profits might appear excessive. "I think it moreover important," he the arrangement." It would be the most significant deal the Barings had yet wrote to Labouchère, his son-in-law, "that the Americans should not think negotiated: "of the utmost magnitude and importance," it "might stagger 118 we obtained too large a profit."92 in ordinary times," Labouchère wrote to Alexander Baring. Sir Francis, in These were familiar networks of capital, founded on the connections London, was anxious, and urged total secrecy. Once negotiations began he first forged by a group of French émigrés stranded in America and further wrote to Labouchère, "further correspondence must be dropt altogether strengthened by British and Dutch financiers looking to shelter their mo- My nerves are equal to the operation, but not so, to the imprudencies which bile capital: all of it coming together to execute the greatest land deal in I see committed to paper, knowing that the paper is carefully preserved American history. can say not more." During the stressful internal conversations between Paris and London, the Barings resorted to a cipher to protect the privacy of their correspondence. They used the term "Maine Lands" to stand in he "American Loan."90 In the end, the French government signed a treaty with the Hope and Baring firms alongside its treaty with the United States. France received an immediate credit of 2 million francs for its Caribbean operations from Thomas Willing, William Bingham's father-in-law, Old Square Tuss Meanwhile, the Hopes and Barings raised the rest of the money on the DEE ish capital markets, turning the desperately needed funds over to France so it could wage war against Britain. Although the purchase price was fised at $15 million, the actual cost to the United States was far higher after the $11 million (59,140,000 francs) in interest was factored in When Alexandel Baring sailed to the United States to deliver the contract and arrange the financing, it was Talleyrand-his former dinner partner in Philadelphia and consultant on Bingham's Maine lands who drafted the passport British authorities seemed happy at first to let the transaction go his ward; they had long dreaded the prospect of a French Louisiana, "It would 411 WHEN THE UNITED STATES SPOKE FRENCH Empty Houses: A Conclusion to invade Russia. Alexandre, Liancourt's son, was then Napoleon's ambas Sir Francis Baring in January 1803. Perhaps it could allay the family's grief. sador to Holland. After Napoleon's defeat in 1815, the house became the And if, at the same time, "the Mind could be embellished, & the Taste im- property of the Dutch state. Today it is a museum.3 proved, by a Short Residence in this Capital, the Sacrifice of Time might be viewed as a Consideration of less weight." It didn't work. William never recovered from Anne's death. After hav- IN OCTOBER 1804, after Haiti achieved its heroic independence and Louisi ing done his part to finance the Louisiana Purchase, he traveled back to ana tumbled into American hands, Julian Ursyn Niemcewicz, a Polish no London; late in 1803 he fell ill. He left for Bath-presumably to take some of bleman, poet, and revolutionary-in-exile, visited Philadelphia. He'd last the mineral waters said to be so beneficial to the sick. But that didn't work seen the city in the 1790s, when it was still the nation's capital, and Anne either. He died in February 1804, surrounded by his two daughters and Bingham hosted her glittering parties. But now the Bingham mansion was their families, Sir Francis Baring, and the marquess of Lansdowne. A large silent and empty, echoing only with the distant memories of laughter and plaque on the southwest corner of Bath Abbey commemorates him today.6 conversation. Both his daughters stayed in England. Maria Matilda, the ex-wife of "The house of Mr. Bingham) filled me with sadness," Niemcewick the comte de Tilly, had married Alexander's brother Henry in 1802. With wrote. "Five years ago it was the most resplendent and attractive house in this second marriage, Sir Francis's retirement, and the ascension of Alexan- Philadelphia: the host, rich and hospitable, his wife beautiful and flirtal der to the firm's leadership, the bonds between the first families in British tious and the daughters full of charm Today the parents have found and American finance had been cemented. Maria Matilda had greater suc- grave in a foreign land; the children are scattered; the house stands empty cess with her second marriage than her first-the couple had three sons offered for occupancy to whomsoever would wish to pay the taxes due and two daughters-but it eventually failed, too; she and Henry divorced in And so even in this new country there are awful examples of changes in 1824. Maria Matilda moved to France, where she married the French mar- fortune."4 quis de Blaisel; one of her granddaughters married a comte de Noailles. As William, brokenhearted, had left for Europe with his two daughters for William, the boy born to Anne Bingham just before her death, he even- Ann Louisa and Maria Matilda, along with his son in-law Alexander Bar tually joined his sisters in London. He married into the French aristocracy ing. They traveled first to England, where Alexander saw his father for the and split his time between London, Paris, and Montreal. None of the Bing- first time in six years. Some of William's old instincts evidently persisted, ham children moved back to the United States; a very large number of their since in late May 1802, the Gazette of the United States reported that "Miss descendants became members of the British and French nobility. Bingham, daughter of William, was presented to the Queen at the last Alexander Baring kept rising in the British financial world. When he drawing room by Mrs. King, lady of the American Minister." William and left America with Ann Louisa, Maria Matilda, and William, he had given Alexander traveled to Paris later that year, where they visited their old up on both Maine and the United States. "We must certainly abandon our friends from Philadelphia: Volney, Talleyrand, and Cazenove. Bingham's hopes of realizing an early profit," he admitted to his father. But he still daughters joined them soon after. They planned to "spend the winter run held out some hope for a decent return in the future. "Though your origi ning in our circles and our balls," Volney reported. Perhaps Bingham nal object in undertaking the speculation is thereby foiled I have never for wanted to recreate the glamorous trip he'd taken with Anne some twenty 11 moment entertained a doubt that the capital invested is amply repre- years earlier. "I had before my Departure from America made a Promise to sented by the lands & will be ultimately profitable." If Alexander's invest- my Daughters, to accompany them on il Visit to the Continent," he wrote to ment in Maine had not worked out as he wished, he did not return WHEN THE UNITED STATES SPOKE FRENCH 453 Empty Houses: A Conclusion empty-handed. He had a new family in tow, through which he would forge When Baring, now known as Lord Ashburton, returned to England a few immensely lucrative connections in the future. So in a sense he had accom months later, the border between Canada and the United States-including plished what he set out to do in America, and as he left he hoped, "I may the line that separates Maine from New Brunswick in a particularly gener- never be obliged by my affairs to return." He had enough money for a com ous concession-had been settled by the Webster-Ashburton Treaty.1 fortable life back in London. "I do not wish to succeed Benfield in his house in Grosvenor Square but I confess I am ambitious of living in a society more worth living for & living with than what America generally affords." UPON WILLIAM Bingham's death, Lansdown, his mansion on the banks of Of course, Alexander's affairs did oblige him to return to America just the Schuylkill-where his copy of Gilbert Stuart's Lansdowne portrait of two years later. It was a flurry of activity: meeting with Secretary of State George Washington had hung, where the Binghams had spent summers in James Madison and Secretary of the Treasury Albert Gallatin, signing doci refuge from yellow fever, where Noailles and Volney had been regular uments, notarizing bills. For a brief moment, while Alexander crossed the guests-passed down to the Baring family. Joseph Bonaparte, Napoleon's ocean, it was neither France nor the United States that owned Louisiana brother who became king of Spain in 1808 and then fled to America, lived but the Barings and the Hopes. But they gave it up soon and with less fusi, there for a year, from 1816 to 1817. (Napoleon himself had planned to come and suddenly the United States had doubled in size. The new purchase se to America before he was captured by the British and sent to Saint Helena.) cured the country's access to the Mississippi River, and a flood of settle Joseph later bought an estate near Bordentown, New Jersey, where he "lived ment across the Appalachians ensued, with the new settlers shipping their like a true philosopher, doing good; receiving, as a father, all the unfortu- lumber and wheat down to New Orleans and into the Caribbean. Surely nates who were banished from France."11 Baring wondered whether the opening of Louisiana would hurt the value of For decades after, the Lansdown mansion remained empty, cared for his holdings in Maine. If so, he doubtless found consolation in the mag by a tenant who lived in a modest house on the property. It burned down in nificent profits his purchase and sale of Louisiana showered on him and his 1854, when some boys lighting off fireworks on July 4 let their celebration family. When Baring returned to England, he led the transformation of the get out of hand. In 1866 the Baring family ceded the land to the city of Baring Brothers bank. Prime Minister Benjamin Disraeli called him "the Philadelphia on the express stipulation that it be used "not for purposes greatest merchant banker England perhaps ever had." By 1818, the firm had of speculation, but for public use." Today the Horticultural Center at Phila- become so dominant that the duc de Richelieu would famously remark delphia's Fairmount Park sits on the site. The only trace of the Bingham- "There are six great powers in Europe: England, France, Prussia, Austria Baring-Lansdowne connection is a curving road carrying the name of a Russia and the Baring Brothers."9 former British lord who had proved so generous with his territorial conces- Alexander Baring ascended to the peerage in 1835. That was the year he sions in 1783.1 sold most of the Maine lands: 835,000 acres for £230,000. It had not in the The other Lansdowne House in London's Berkeley Square, where the end, been a very good investment. But for all that, Baring had not finished Binghams first met Sir Francis Baring, fell into the possession of the 3rd with American lands; he returned to the United States in 1842 for one last Marquess of Lansdowne, who turned it into one of the centers of London negotiation. Perhaps, as he sailed again to America, his mind turned to his society in the nineteenth century. On one memorable evening two thou- father's friend Lord Lansdowne, who almost sixty years earlier had negoti sand guests attended a concert at the house, including several members of ated the first, bitterly contested border between the United States and Can the royal family. During the 19208, the family rented the house to Gordon ada. Now he was finishing the job, and doing it in an area he knew well Selfridge. the American-born department store magnate, who threw lavish LIBRARY I.U.P. Nidiana, PA HG =new content. NOV.2017. it 2998 B35 note: Very re Word A97 2007 Family FINANCIAL HISTORY BARING BROTHERS AND THE BIRTH OF Series Editor: Robert E. Wright MODERN FINANCE TITLES IN THIS SERIES Slave Agriculture and Financial Markets in Antebellum America. The Bank of the United States in Mississippi, 1831-1852 Richard Holcombe Kilbourne, Jr BY The Political Economy of Sentiment: Paper Credit and the Scottish Enlightenment in Early Republic Boston, 1780-1820 Jose R. Torre Peter E. Austin FORTHCOMING TITLES Virginia and the Panic of 1819: The First Great Depression and the Commonwealth Clyde A. Haulman Gambling on the American Dream: Atlantic City and the Casino Era James R. Karmel Government Debts and Financial Markets in Europe Fausto Piola Caselli (ed.) The Revenue Imperative: The Union's Financial Policies During the American Civil War Jane Flaberty Guilty Money: The City of London in Victorian and Edwardian Culture, 1815-1914 MUNDUS INTELLECTUALIS Ranald C. Mitchie LONDON PICKERING & CHATTO www.pickeringchatto.com/financialhistory 2007 Published by Pickering & Chatto (Publishers) Limited CONTENTS 21 Bloomsbury Way, London WC1A2TH 2252 Ridge Road, Brookfield, Vermont 05036-9704, USA www.pickeringchatto.com List of Charts, Tables and Figures vii Nomenclature ix All rights reserved. Chronology xi No part of this publication may be reproduced, Introduction 1 stored in a retrieval system, or transmitted in any form or by any means, I Growth of Confidence (1763-1828) 9 electronic, mechanical, photocopying, recording, or otherwise without prior permission of the publisher. Establishment and Early Reputation-Building 10 © Pickering & Chatto (Publishers) Limited 2007 Barings and America 14 © Peter E. Austin 2007 Troubles of 1825 and Reorganization of the Partnership 20 2 Opportunity and System (1828-30) 29 BRITISH LIBRARY CATALOGUING IN PUBLICATION DATA Foreign Investor Interest in the United States 30 Austin, Peter E. General Domestic and Foreign Trade Profile 32 Baring Brothers and the birth of modern finance Credit Arrangements and Trade Mechanics 36 1. Baring Brothers & Co. Ltd - History 2. Merchant banks - Great Britain - History 3. The New Partnership 40 Banks and banking, International - Great Britain - History I. Title Rules and Principles 45 Good Timing (1830-2) 51 332.6'6'0941 Cornerstone Connections 52 ISBN-13: 9781851969227 Trough Opportunities and British Malaise 55 A Worldwide System 64 The Deferred Threes 72 Barings Makes a Deal 78 4 Silver Linings (1832-4) 81 Impediments to Business 81 Continued American Expansion 88 Jackson, the Bank and Money Disruption 93 8 Barings' First Trimming 106 5 Changing Too Soon (1835-6) 119 This publication is printed on acid-free paper that conforms to the American National American Demand Unbound (1835) 120 Standard for the Permanence of Paper for Printed Library Materials. Ward's Urgings 123 Typeset by Pickering & Chatto (Publishers) Limited The House Waits 127 Printed in the United Kingdom by Athenauem Press Ltd, Gateshead Barings' Second Trimming 129 America Moves 'Too Fast' 135 London's Restraint and Jackson's Gold 142 Threadneedle Street Awakes 148 5 Barings Alone (1837-9) 155 Tense Calm 155 Assistance Amidst Collapse 160 Van Buren Holds Firm 167 Aftermath 174 Conclusion 181 LIST OF CHARTS, TABLES AND FIGURES More Reform 181 Who to Blame; Well Informed People Make Poor Decisions; Good Timing 182 Competitors' Risky Behavious; Panic's Effect on Barings 186 Chart 2.1: Value of British Trade with the United States, 1814-46 35 Epilogue: Argentina and Singapore (1890, 1995) 191 Chart 6.1: Unweighted Indices of Agricultural and Industrial Wholesale Argentina: 1890 191 Commodity Prices (Monthly), 1825-45 178 Singapore: 1995 193 Chart 7.1: British Business Cycle Pattern, 1819-42 184 Pride Maintained 199 Chart 7.2: American Business Cycle Pattern, 1819-42 185 Notes 203 Table 2.1: United Kingdom Exports to the United States as a Percentage of 245 United Kingdom Exports Worldwide, 1820-36 33 Glossary Bibliography 249 Table 3.1: Trough Indicators 58 Table 3.2: Ship Tonnage at British Ports, 1816 and 1850 61 Index 259 Table 3.3: Bullion and Specie in American Exports to China, 1816-44 65 Table 3.4: Profits of the Bank of the United States and Barings, 1829-33 78 Table 4.1: American Cotton Production, 1830-7 90 Table 4.2: Annual Mean Growth Rates, New England Cotton Industry, 1815-36 90 Table 4.3: Rates of American Gross National Product Growth, 1830-6 91 Table 4.4: Prices of South Carolina/Georgia Cotton, 1832-4 104 Table 4.5: United Kingdom Cotton Consumption and Cotton Stocks, 1827-43 106 Table 4.6: Index of United States Wholesale Commodity Prices, 1825-45 107 Table 4.7: Index of United Kingdom Wholesale Commodity Prices, Domestic and Foreign, 1825-45 108 Table 5.1: United States Imports and Exports, 1832-8 121 Table 5.2: United States Public Land Sales Receipts, 1828-42 122 Table 5.3: Railway Acts in Great Britain, 1833-8 123 Table 5.4: Russell & Company Profits, 1834-8 128 Table 5.5: Railroad Miles Built in the United States, 1830-43 138 Table 5.6: Outstanding State Debt Incurred in Five-Year Periods, 1820-38 140 Table 6.1: Capital and Acceptances of Leading Anglo-American Houses to 1836 172 Table 7.1: General Business Conditions in Great Britain and the United States, 1819-43 185 vi vii CHRONOLOGY 1763 Baring Brothers & Company established at Exeter and London. Peace of Paris ends Seven Years War. 1777 Francis Baring assumes management of the firm. 1796-1803 Alexander Baring (later Lord Ashburton) tours the United States. 1798 House of Rothschild establishes a presence in England. 1803 Louisiana Purchase. 1810 Alexander Baring assumes leadership of the House. 1814 Barings acquires Hope & Company. Treaty of Ghent (Belgium) ends British-American war (December). 1815 Congress of Vienna ends war in Europe. 1816 Argentina declares independence from Spain. Second Bank of the United States chartered. 1817-19 French reconstruction loans. 1821 Mexico becomes an independent state. 1823 President James Monroe appoints Nicholas Biddle president of Second Bank; closes American continent to colonial settlements by European pow- ers (Monroe Doctrine). 1824 Erie Canal completed in the United States. 1825 American gross national product tops $1 billion for first time. 1825-6 Financial panic; Rothschild assists Bank of England. 1827 Alexander Baring hires Joshua Bates. 1828 Second Baring partnership formed; Thomas Baring tours United States. Andrew Jackson ('Old Hickory') elected seventh United States president. Business cycle trough. 1829 Jonathan Goodhue recommends Thomas Wren Ward for Baring agency. 1830 Belgian difficulties. France captures Algiers. Year of revolutions across Europe. 1831 Belgium crisis. Polish rebellion. Ward remarks to Bates that severe problems develop every '5-7 years'. 1832 English Reform Bill. Liverpool to Manchester Railroad opens. Jackson vetoes Bank of the United States charter. South Carolina nullification; 'compromise tariff (Daniel Webster's 'pretty little bill'). xi FINANCIAL HISTORY III, BARING BROTHERS CHRONOLOGY xiii Barings' Liverpool office opens, booms; Bates calls '3Ws' envious. Bank of England assist '3Ws' and Brown Brothers (March). Barings' agreement with Russell & Company in Canton (Houqua). Martin Van Buren inaugurated eighth president of the United States. Biddle arranges for Barings to lead Union Bank of Louisiana floatation. Biddle and New York banks look for liquidity (substitute credit of the Bank House of Representatives reports Bank of the United States more solvent of the United States for private credit); Barings as underwriter of London than Bank of England. offering (April). 1833 French indemnity problems. Liverpool and London waits for remittances. Calcutta indigo 'Great Houses' fail. Van Buren refuses accommodation on Specie Circular (May). Belgium festers. New York banks suspend (May). Bank of England rechartered. Loco-Foco backlash against 'Barings and Biddle Bank'. Deposits moved from Bank of the United States to "pet banks' (Kendall). Bank of England refuses further aid to American Houses (June). Unusual rise in the American cotton price: Rothschilds corner? Victoria becomes Queen of England (June). Ward restless with Baring rules. Biddle attempts to corner cotton market; improve American balance of Barings first American trimming. payments. 1834 Financial pressure; Biddle clamps down. 1838 American states aggressively market debt in London; The Times sceptical. Webster describes United States economy 'Like a strong man chained'. Barings cuts ties to Biddle. Gold Coinage Act (August). New York Herald is first United States newspaper to employ European cor- East India Company monopoly abolished. respondents. 1835 Transatlantic boom; American demand unleashed. Barings guarantees gold to United States in effort to reinflate American United States government switches account agency to N. M. Rothschild. economy. United States federal debt extinguished. 1839-42 First Opium War. Ward concerned about American import surge ('imbalances correct them- 1839-43 Depression in the United States (debt defaults by states). selves'). Ward coordinates campaign to effect state debt repayment (1839-40). Barings' China relationships yield results; purchases/builds ships. Barings syndicates loans to Bank of the United States on European bourses Ward explores Canadian business opportunities. (1839). Union Bank warning: Bates apprehensive; Baring syndicates state loans. Barings manages Bank of France loan (1839). Barings sells Maine lands acquired by Ashburton in 1796. 1842 Webster-Ashburton Treaty defines Canadian frontier. Bates detects psychology shift; lower prices 1846 Repeal of British Corn Laws. Barings' second American trimming Ward: 'top of a wave, takes care in Mexican War in the United States begins. descending'). 1848 Year of revolutions in Europe. New York fire (December). 1856-60 Second Opium War. 1836 French indemnity problem solved; war averted. 1858 First transatlantic telegraph communications. Hezekiah Niles becomes bullish. 1861-5 American Civil War. Surplus Distribution Act (June). 1867 Confederation of Canada. Urban real estate boom; public land boom; railroad share floatation boom. 1873 Edward Baring (later Lord Revelstoke) assumes leadership of the House. '3Ws' reported to be accommodating freely. 1886 Baring Brothers floats Guinness & Company shares. Bates and legacy. 1888 Revelstoke takes Buenos Aires Drainage & Waterworks shares. Specie Circular (July) - 'specie moving about the country like bills of 1890 Baring Crisis; Bank of England assists (Lidderdale). exchange!'. 1965 Singapore becomes an independent republic. Bank of England detects over-discounting among American houses; raises 1996 'Big Bang' deregulates London Stock Exchange. bank rate (August). 1989 Peter Baring appointed Chairman of Baring Group; Barings hires Nicholas Bank of England indiscreet letter to Liverpool (September). Leeson ('a clerk'). British joint-stock bank failures (November). 1992 Leeson sent to Singapore to manage floor operations and back office of The Times warns of very fragile American situation: cotton fall? SIMEX. Bates advises Bank of England; Biddle strengthens ties to Barings. 1993 Christopher Heath fired; Barings Brothers Bank & Baring Securities combine. Jackson's eighth State of the Union address. 1994 Leeson wins 'Trader of the Year' award. 1837 British prices break in the first quarter; American in the second quarter. 1995 Leeson flies to Thailand (22 February). Continental banks tighten in response to Bank of England. Barings collapses under £869 million liability; sold to ING (27 February). Herman & Briggs fails in New Orleans; Josephs in New York (March). 1999 Leeson released from Singapore jail; returns to England (3 July). Accounting History http://ach.sagepub.com/ Book review: Peter E. Austin, Baring Brothers and the Birth of Modern Finance Paul J. Miranti Accounting History 2010 15: 559 DOI: 10.1177/1032373210364383 The online version of this article can be found at: http://ach.sagepub.com/content/15/4/559.citation Published by: S SAGE http://www.sagepublications.com On behalf of: afaanz The Accounting History Special Interest Group of the Accounting and Finance Association of Australia and New Zealand Additional services and information for Accounting History can be found at: Email Alerts: http://ach.sagepub.com/cgi/alerts Subscriptions: http://ach.sagepub.com/subscriptions Reprints: http://www.sagepub.com/journalsReprints.nav Permissions: http://www.sagepub.com/journalsPermissions.nav >> Version of Record - Nov 5, 2010 What is This? Downloaded from ach.sagepub.com by guest on April 23, 2012 Accounting History Book review Baring Brothers and the Birth of Modern Finance Peter E. Austin London: Pickerng & Chatto, 2007, xiv + 265 pp. ISBN-13: 9781851969227 This excellent, provocative volume by Peter Austin is a useful addition to the Pickering and Chatto financial history series that is ably edited by Robert E. Wright. Peter Austin examines the origins of modern finance by focusing primarily on the early experience of the Baring Brothers firm in the USA through the Panic of 1837. Although much of this ground has been worked over in the earlier studies of Ralph Hidy, Phillip Ziegler and John Orbell, Austin differentiates his work by emphasizing a more cognitive-behavioral approach than earlier contributors to understanding financial organization dynamics. Austin concentrates on delineating the mind set of key partners responsible for guiding the firm's business as a means of better understanding their decision processes as they successfully directed the activity of their business during a major financial crisis. Besides firm archival records, Austin's cogent analysis is also informed by his effective use of the diaries of two key Americans admitted to the partnership, Joshua(Bates and Thomas Wren Ward. These individuals played critical roles in facilitating the achievement of Baring's great market triumphs in the New World during the 1830s. (Austin also provides an epilogue that contrasts the factors contributing to financial management success in the 1830s against those that led to the near fatal Argentine bond funding of the 1890s and the pernicious derivative trading in Singapore during the 1990s.) By the 1830s Barings Brothers had evolved a strategy that gave priority to capital preservation over profit maximization. By the end of the Napoleonic Wars, it had risen to the leading ranks of Europe's banking community, playing a central role in financing the post-conflict international settlements. Senior partners were well connected in London, then the world's financial center, through service in key policy-making institutions including Parliament and the Bank of England. Copyright © 2010 The Author(s) (Los Angeles, London, New Delhi, Singapore and Washington DC) and AFAANZ 559 Vol 15(4): 559-562. DOI: 10.1177/1032373210364383 Downloaded from ach.sagepub.com by guest on April 23, 2012 Accounting History Vol 15, No 4 2010 Sensitive to the inherent fragility of contemporary global finance, its partners worked diligently to reduce investor perceptions about the risk of the firm by implementing ultraconservative policies. The bank built a reputation for reliability in financial emergencies by maintaining high levels of liquidity and avoiding reliance on borrowing. An important part of the strategy, called "changing too soon", seemed predicated on a belief in the cyclical nature of economic affairs. This operation involved the early withdrawal from highly active markets as they reached their apogees and before the onset of decline into recession. During the anticipatory winding downs in business, Barings addressed the problem of weak credits when markets were relatively stable and the impacts of any portfolio dislocations could be more readily accommodated. The objective was to assure that the bank had sufficient funding to sustain its activities through the inevitable troughs in business activity. The firm wanted to reach a state where its paper, even during the midst of great financial turbulence, would be accepted without question in the world's far-flung business centers because of an unblemished reputation for solvency. Moreover, this further strengthened the firm by allowing it to be more selective in accepting clients. In making these choices, the firm traded off quantity for quality and market share for safety. The bank reduced portfolio risk by limiting the size of its customer base to include only the most credit-worthy entities. Baring Brothers' clients paid for this safety. by incurring higher fees for premium service. Austin's study also emphasizes the importance of institutional rules and the personal qualities of its agents as sources of superior firm performance. The two Americans recruited as senior agents were both highly seasoned businessmen with deep knowledge of the complexities of contemporary banking practice. They identified strongly with the partnership and its goals. Their actions were restricted by formal house rules such as prohibitions against borrowing, entry into particular markets and demanding exclusivity from clients in providing banking services. They maintained a constant stream of correspondence with the London headquarters reporting on local conditions. Generally, the direction of major policy decisions was from the center to the periphery with London defining the broad parameters of policy and the US agents developing implementation plans. The study makes a very interesting discovery about the role of local agent perceptions in guiding the destiny of the partnership during the crisis of 1837. Despite long experience and deep knowledge, the assessment of developments rendered by their key representative in the two years leading up to the crisis proved faulty. Barings might have experienced substantial losses had they placed more reliance on their agent's prognostications, for example, of the trends in cotton prices and the continued solvency of state debt issues. Instead, the senior partners in London demanded a strict adherence to the seemingly more intuitive approach of "changing too soon". In fact, Austin discovered that Barings changed 560 Downloaded from ach.sagepub.com by guest on April 23, 2012 Book review too soon by two years, reducing their exposure to US markets beginning in 1835. Nevertheless, the strategy proved highly successful with the bank coming through the storm unscathed and in strong financial condition. The firm presaged the institutional practices of modern corporations in two ways. First, like the central office structure of modern corporations, the power to make strategic decisions remained a prerogative of top management. The senior executive cadre, doubtless, wanted to exercise this authority directly to protect their reputations and invested capital. The senior cadre benefited from a global view of the business through regular correspondence from regional agents. They also were kept well informed about the direction of affairs through their close ties with elite bankers and politicians in London and other financial capitals. The scope of authority of the second managerial echelon, the agents that represented the firm in specific overseas markets, seems to have been restricted to reporting about local business conditions and fulfilling the strategic mandates emanating from the center. Second, the firm seemed modern through its use of a primitive form of business cycle analysis, a dimension of professional economics that began to flourish during the early decades of the twentieth century. The success of the "changing too soon" strategy essentially hinged on the ability to time market entry to low points in the business cycle and to withdraw after the subsequent restoration of prosperity. The strategy of "changing too soon" that derived from this perception about the nature of economic dynamics proved highly effective in protecting the interests of wealthy clients interested in preserving capital and avoiding risk. It is not clear from Austin's narrative how this idea about the recurring patterns of business change developed. The exploitation of this dynamic certainly would have seemed vindicated by the 1830s, based on the analysis of the firm's past experience. However, there may have been other cultural factors that inclined the firm's management to conceptualize economics in cyclical terms. Did traditional notions inherited from the Renaissance, such as "Fortune's Wheel", reinforce intuitions that the time spectrum in economics was punctuated by successive periods of expansion and decay? Did the periodicity of natural phenomena in the form of tidal, weather and seasonal flux serve as persuasive analogues for describing the normal sequence of change in business affairs? Such a convergence in thought might have been possible given the covenants that generally controlled the timing, duration and liquidation in contracts for financing agricultural and navigational enterprise during this era. Peter Austin's original study should benefit scholars in several fields. His book illuminates an important transitional period in US financial history by focusing on the actions of a leading banking organization. It also helps to extend the theory of the firm by evaluating critical factors that shaped the evolution of decision processes in early banking organizations. In addition it helps to amplify 561 Downloaded from ach.sagepub.com by guest on April 23, 2012 Accounting History Vol 15, No 4 - 2010 our understanding of finance by providing insight into the ways that agency relationships and portfolio selection practices were successfully handled during a period when financial capitalism was seriously constrained by limited information resources and communication capabilities. Paul J. Miranti Rutgers, The State University of New Jersey 562 Downloaded from ach.sagepub.com by guest on April 23, 2012 Taylor & Francis Online :: Baring Brothers and the birth of modern finance - Accounting Page 2 of 3 Accounting, Business & Financial History Routledge Vol. 19, No. 1. March 2009. 61-64 BOOK REVIEWS Baring Brothers and the Birth of Modern Finance, by Peter E. Austin. London and Brookfield. VT: Pickering & Chatto, 2007, xiv + 265pp., £60/$99. ISBN 9781851969227 Recent events have reminded us that different financial institutions fare very differently in stressful conditions. Here Peter Austin tells the story of a major bank in a turbulent emerging economy with sometimes volatile politics, and strongly reliant on the primary sector. This bank fared well in a serious financial crisis, while many of its rivals struggled or failed. The bank is Baring Brothers and the country is the United States of America in the second quarter of the nineteenth century. There are numerous parallels with important issues in modern crises and emerging market finance: the structure and development of the country's financial system: the Darwinian failure of weak businesses and banks; the search to allocate blame: the role of political and financial elites; concern over the presidential role and that of central government: and debates over free trade, to identify but a few. There have been many published histories of merchant banks. Baring Brothers has attracted several authors over the years. a number of whom have concentrated on its 1995 failure after Nick Leeson's disastrous derivatives trading in Singapore. Orbell (1985) and Ziegler (1988) offer relatively recent general histories of Barings, the latter much longer than the former, although neither address in depth the period and events covered in Austin's book. Hidy (1949). described by Ziegler (p. 383) as *somewhat indigestible` does deal with Barings in the US in this period, and while Austin makes use of these three histories, he is able to reflect sources and scholarship not available to, or used by. these authors. Austin's book is not intended as a comprehensive history of Barings, but focuses on a specific episode in which the bank played a major role, the 1837 financial crisis. In Austin's view, the question of what happened in this crisis is largely settled. whereas the question 'why' to some extent remains open. This is not unusual in such situations for example, scholars continue to debate explanations for banking crises such as those in Germany in 1931 and the US in 1929-33. This is, for the most part, a very good and clearly written book. The arrangement is chronolog- ical. with the 190 pages of the main body of the book broken into six chapters. These build slowly and carefully from the mid-eighteenth century to the culmination of the late 1830s crisis, concen- trating on that final decade. A 10-page epilogue addresses Barings problems in Argentina in 1890 and Singapore in 1995, with a further 60 pages of notes, bibliography. a useful chronology and glos- sary, A casual reader could easily grasp the main arguments from the introduction and conclusions. There is extensive use of contemporary newspapers and journals, of correspondence between London and Barings Boston agent, Thomas Ward. and of British and American literature and archival sources, including those on the Bank of England and the London discount market. Ward emerges as outstanding at the operational level. but inconsistent and at times unsound in his strategic judgement. He was sometimes frustrated by the conservatism 0 the London-based Joshua Bates. "Pawky, dour, charmless; with little imagination and less humour (Ziegler 1988, 123). Bates, also from Boston and a Barings' partner from 1828 until his death in 1864, was the firm's key partner on American business and architect of its American strategy. ISSN 01558-5206 print/ISSN 1466-4275 online DOI: 10.1080/09585200802667162 http://www.informaworld.com Click to increase image size Information Full text References Reprints & permissions http://www.tandfonline.com/doi/abs/10.1080/09585200802667162 4/6/2012 The Baring Archive Introduction Page 1 of 1 The Baring Archive: Welcome to The Baring Archive The Baring Archive is one of the finest archives of a financial institution anywhere in the world. This website provides an introduction to the organisation and content of the Archive and will enable casual enquirers, historians and researchers to begin to see and understand the wealth of material that is held in the Archive. The Baring Archive is owned by ING, which acquired Barings in 1995. In 2008 The Baring Archive, together with the associated historical portraits, was loaned to The Baring Archive Limited, a charitable company established by ING to manage the collections and encourage their use as an educational resource. The Baring Archive contains material from the establishment in 1762 of the London merchant house of John & Francis Baring & Co, later known as Baring Brothers, through to the firm's acquisition by ING. The documents illustrate the range of Barings' business activities. For much of the nineteenth century, the firm specialised in issuing bearer bonds for overseas governments and businesses, especially railway companies. Towards the end of the nineteenth century, work for domestic companies commenced, beginning with the flotation of Arthur Guinness Sons & Co Ltd in 1886. In the twentieth century, when the London capital market was closed for long periods to overseas borrowers between the wars, transactions for British businesses became much more important. After 1945 corporate finance work for British businesses, banking, and fund management for pension funds, institutions and individuals formed the firm's three principal divisions. From the late-1970s and the abolition of exchange controls, the firm's business once more became Sir Francis Baring by Sir Thomas Lawrence internationally spread. How to use this website The Baring Archive website contains many tools to help you find your way around the archive. The most important of these tools is the Guide to the Archive the_archive/about/]which provides an overview of the Archive's main catalogue and is a very useful starting point. There are also tools available to help you to browse the Baring Art Collection [/art_collection/] and the Baring Family Genealogy /barings_people/baring_family_genealogy/ ] as well as other useful pages, including a Timeline of Key Events [ /special_features/timeline/ ] and so on. If you cannot find the information you are looking for, please contact us [ /contact/ ] Designated as an Outstanding Collection [http://www.artscouncil.org.uk/what-we-do/raising-standards/designation-scheme/) This website, its design and data are © 2008-2012 The Baring Archive Ltd The Baring Archive is a charity registered in England, No. 1117868 and a company limited by guarantee, registered in England No. 5773999 Designed, developed and managed by CBJ Digital hhttp://www.cbjdigital.com/] Ltd. now comp 1762 as of ECB the in http://www.baringarchive.org.uk/ 5/3/2012 THE BARING ARCHIVE SERIES HC5 NORTH AMERICA 156 pp. House Correspondence - North America - Boston HC5 5.1.1. 1824 Jun-Nov, Boston: Letters from John Richards 1. 1824 14 Jun: Explaining his mercantile losses which have resulted in his becoming heavily indebted to Barings; expressing confidence for the future 2. 1824 29 Oct: Suspicious circumstances of the loss of the brig Pacific on a voyage from Boston to Amsterdam: the insurance taken out at Boston was for a greater cargo that the ship carried and the underwriters had refused to pay 3. 1824 22 Nov: Insurance of cargo, brig Pacific: the real value was US$40,000; sworn on ship's manifest US$19,000; Froding, of Gottenburg, the criminal; Barings stood to lose on money advanced to him; with details of another ship, Tordenskield, lost like the Pacific and overinsured 4. 1825 28 Feb, Rio de Janeiro: Reports on business houses; Naylor Brothers & Co (HC4.2.5), Birckhead & Co (HC4.2.1), Maxwell Wright & Co (HC2.158) 5.1.2. 1828-1832: Letters (500) from Thomas W Ward, of Boston, to Joshua Bates and to Barings Part I: 1828 Nov - 1830 Jun Part II: 1830 Jul - 1831 Jun Part III: 1831 Jul - 1832 Mar Part IV: 1832 Apr - 1832 Nov Part V: 1832 Nov - 1833 Dec Part VI: 1834 Aug - 1850 Nov Part VII: 1834 Jan - 1834 Jul 10/29/29 Ward was appointed agent, with power of attorney to act for Barings in the United States on 29 Oct 1829. His correspondence during these years of rapidly expanding business in the United States includes the following main subjects: The status and prospects of the house of Baring; trade with Britain, Russia, India, the East Indies and China; reports on business houses in the United States (mainly New York); the Bank of United States; the Louisiana State Loan, 1832; and politics Specific letters relating to some of these subjects will be found in letters dated as follows:- Status and Prospects of Baring Brothers In 1829 many of Ward's letters are addressed to Joshua Bates. Thereafter, as Bates became increasingly occupied with the whole business of the house, Ward's letters are generally addressed to Barings. The partner who mostly corresponded with Ward from 1830-32 was Humphrey St John Mildmay. *check ©The Baring Archive Limited 2 House Correspondence - North America - Boston HC5 5.1.2 cont Ward occasionally complained of his neglect by Joshua Bates, who, like Ward, was a Boston man. Ward's history is largely given in the following letters. 1828 c30 Nov: Ward returns to Boston from England 1829 28 Apr: Ward's appreciation of the qualifications required of an agent in the United States, and his offer to undertake the post for Barings 29 Sep: Ward becomes Barings' agent at a salary of £1000 a year, after discussion with Thomas Baring, who had gone out to the United States in Nov 1828 (See HC1.20.4) 3 Oct: Ward's instructions for his new post 1830 10 Oct: Ward's appreciation of his agency 1831 13-26 Feb: Impending retirement from Barings of Alexander Baring; Ward's view of this, and the possibility of Alexander Baring, later 1st Lord Ashburton, being created a peer 27 May: About "young Mr Magoun's" visit to England; Ward's high opinion of Barings, and his method of dealing with rumours in the United States concerning Barings' activities 12 Sep: Ward's appreciation of his agency, after two years in the post 14 Oct: Ward's suggestion that John or Thomas Baring should visit Boston, New York, and Philadelphia 29 Dec: Ward's appreciation of his agency, and of what his salary should be 1832 4 Feb: Ward's account 11 Feb: His request for a portrait of Joshua Bates "by one of your first masters" 15 Aug: Ward's appreciation of his agency 18 Aug: His complaint that Barings should think him extravagant 3-21 Nov: About the proposed establishment of Barings, Liverpool Reports on Business Houses in the United States Business houses are referred to by a code of numbers. The whole key to this code does not exist in the correspondence, but a partial key is given on some of the letters, where name and number are linked. See particularly: 1830: 16 & 21 Feb; 13 Mar; 19 Apr; 4 Aug 1831: 13 Feb; 12 Apr; 12 Nov 1832: 9 Jul; 20 Aug; 4 Oct; 21 Nov 1833: See also HC16 The Bank of The United States For copies of Ward's correspondence with Nicholas Biddle, see 1831: 12 & 13 Oct 1832: 13, 23 & 26 Jan; 24 & 29 Mar; 26 Apr; 29 Oct (also about General Jackson); 12 Nov The Louisiana State Loan 1832: Jul-Nov ©The Baring Archive Limited 3 House Correspondence - North America - Boston HC5 5.1.2 cont Politics Political news occurs generally in the letters See particularly for the Presidential Election of 1832, and the influence of The Nullifiers in the South Miscellaneous 1829 31 Dec: Proforma of a letter of credit, and reference to bill of lading, as issued by Ward on behalf of Barings 1832 9 Jul: List of American vessels trading to India and the East Indies, a large number of which were financed by Barings 23 Nov: Death of Sr Spurzheim in Boston 1835 Feb-Jun: The death of Joshua Bates' son William 17 Feb-13 Mar: Politics - Franco-American relations 13 Mar: Goodhue & Co, and the sale of brandy on behalf of Barings 21 Mar: Politics - President Jackson, and the Indemnity Bill 14 Jul: The Lowell railroad; the Boston-Canton railroad: their performance and finance; their prospects for the future 31 Jul: About Samuel Jaurdon, Cashier of the Bank of the United States 31 Jul: Presentation of books by Joshua Bates to the 'College Library' [Boston?] 7 Oct: Report on Goodhue & Co [No 174 in Ward's code], and on other business houses 3 Nov: Bank of the United States 8-9 Dec: Answering a letter of 9 Oct 1835, in which Joshua Bates expressed alarm at Ward's ideas of American prosperity: Ward defends the American way of life and business; gives a review of American trade and finance. Indigo; cotton; the United States Bank and the winding up its affairs; Nicholas Biddle; Samuel Jaurdon. President Jackson's message to Congress on the State of the Union 1836: To Joshua Bates 23 Mar: Introducing Samuel Jaurdon, Cashier of the Bank of the United States 27 Apr: Acknowledging receipt of a memoir and a sermon [perhaps concerning Joshua Bates' son, William, who died 1835]; French affairs 24 Jul: Family matters; Bank of the United States 22 Oct: Reports on merchants; condition of American trade and finance 1850: Ward's failing health, and desire to give up the agency. See 6 HC1.20.8.18M HC5.1.2 (a) 1835 Dec-1836 Nov: Ward's letters to Barings Filed in one volume (Formerly HC5.1.2/6) © The Baring Archive Limited 4 House Correspondence - North America - Boston HC5 5.1.3 1828-59, Boston: Charles Thorndike, merchant, and others of his family, to Barings 1828: About insurance on the cargo of sugar, Wanderer from Havana; Mrs Joshua Bates buys and sends to Mrs Thorndike a machine for crimping frills, ruffles, etc 1832: From Andrew Thorndike [in Paris], on the death of his father, Charles Thorndike 1859: From Henrietta Thorndike. Settlement of her late husband's estate. [He was perhaps Andrew Thorndike] 5.1.4-8 1827-32: Letters from members of the Sturgis family of Boston. A few of these letters are addressed to Barings, but most are to Joshua Bates Joshua Bates married Lucretia Sturgis. She was the daughter of Samuel Sturgis who worked with his elder brother Russell Sturgis Senior (1750-1826) in the fur trade. She was one of 13 children and had two brothers, John, a ship's captain, and Josiah. John was a merchant and partner with Colonel Perkins in the firm of Sturgis & Perkins, New York. John Sturgis was not considered a competent man of business. In 1829 Sturgis & Perkins failed, and John Sturgis was in a lunatic asylum for a time in 1831. William Sturgis, the elder seems to have been a partner in the firm of Bryant & Sturgis, merchant of Boston and wrote letters to Joshua Bates containing a good deal of family news. The relationship between this William Sturgis and Lucretia Bates is not known as although there was a William Sturgis Senior he had died in 1797 and his descendant William died aged 16 in 1826. Russell Sturgis (1805-1887) was son of Lucretia's cousin Nathaniel, son of Russell Sturgis senior. In the 1820s he started a commission business in Boston with Jonathan Amory, which, after the latter's retirement in 1831, he carried on alone under the name of Russell Sturgis & Co. He became a partner of Barings in 1851. See also HC5.2.8-9 5.1.4 1827-35, Boston: Letters from Bryant & Sturgis to Joshua Bates and John Baring 1827: Capt Coffin of the ship Sachem, trading from Boston to Siam; thence to England; sale of cargo by Barings 1831: Orders for sale of tea in Amsterdam; opium purchase; purchase of quicksilver in Austria 5.1.5 1828-34, Boston: Letters from William Sturgis, the elder, to Joshua Bates 1828: Appointment of an agent for Barings in the United States (Thomas Ward. See HC5.1.2); return of Cushing to Boston 1829: Failure of Sturgis & Perkins, New York; carrying on their China trade ©The Baring Archive Limited 5 House Correspondence - North America - Boston HC5 5.1.5 cont 1831: China trade; Austrian quicksilver; sale of ship formerly belonging to Sturgis & Perkins 1828-34: Family news "Boston, 11 Jun 1832: I have property enough for all useful purposes. you [are] one of the most ambitious men alive. You are not content with having, by your own efforts, raised yourself from the situation of an obscure clerk to the head of the first house in Europe (I may say in the world) but you are now striving to extend the business of that house beyond precedent, and to accomplish this are sacrificing health, comfort and probably life Your business in this country has gone on quite prosperously under the care of our friend Ward, who has quite exceeded the most sanguine expectations we ever formed " 5.1.6 1832-43, Boston & New York: William Sturgis, the younger, to Joshua Bates Balancing his account with Barings 5.1.7a 1828-30, Boston & Rotterdam: Josiah Sturgis, brother of Lucretia Bates to Joshua Bates 1828: Arrival of Sturgis in Boston from Canton 1829: Sturgis master of the ship Augusta, Boston to Rotterdam; a hard voyage 5.1.7b 1838 15 Sep, Mazatlan, Mexico: Samuel P Sturgis to Joshua Bates Proposing trade operations to China 5.1.8 1829-31, Rome & Boston: Letters from Russell Sturgis to Joshua Bates 1829: Sturgis starting a commission business in Boston with John Amory 1831: Retirement of Amory; continuation of the business as Russell Sturgis & Co 1834: Russell Sturgis joined Russell & Co, Canton. For his letters from that place, see HC 6.1.8A In 1851 he became a partner of Barings. For his letters as a partner, see HC1.20.14 5.1.9 1829-31: Letters from John P Cushing, of Boston, to Joshua Bates, and to Barings Written from England, Canton, and Boston 5.1.10a 1826-28: Mercantile operations of Joshua Bates & J Baring with Perkins & Co, merchants of Boston China trade in cotton, silk, tea; calculations, price-current; ships' manifests; invoices; accounts. 1 bundle ©The Baring Archive Limited 6 Seralor pp. 40f. 7/3/2015 XFINITY Connect *XFINITY Connect eppster2@comcast.net + Font Size - Re: Enquiry from The Baring Archive Website From : Ronald Epp Fri, Jul 03, 2015 08:30 AM Subject : Re: Enquiry from The Baring Archive Website To : baring archive Dear Ms. Harrow: What a pleasant surprise to receive your reply within a day! As we Americans celebrate our July 4th, I'll be busy scrutinizing the bountiful inventories you have provided. It is unfortunate that historians have not pursued the back story behind Mr. Ward's professional responsibilities to his employer and the character of the man. There are no dissertations on Ward but the David Baldwin 1961 University of Pennsylvania study on his eldest son Samuel Gray Ward ("Puritan Aristocrat in the Age of Emerson") reveals much of his father's character and their family life. As well as the aforementioned Massachusetts Historical Society holdings there is a largely ignored collection of "Ward-Perkins Papers" at the University of California at Santa Barbara that I hope to investigate more fully this fall (See the beautifully written study by the late archivist Donald Fitch in Soundings 16 (1985): 18-77. the UCSB library publication). Of course you may know of these resources, but as a retired academic library administrator I can't resist bring these to your attention. Who knows how they might amplify the primary and secondary literature for those who seek your assistance. The legal archive I referred to is located in Bar Harbor, Maine. As part of a Maine State Library digitization process, we are inventorying the collection through from its early 19th-century documents through the end of WWII. I have handled Barings documents therein and will contact you if I find anything that appears not to be covered in the finding aids you have provided. Most cordially, Ronald Ronald H. Epp, Ph.D. 532 Sassafras Dr. Lebanon, PA 17042 USA 717-272-0801 https://web.mail.comcast.net/zimbra/h/printmessage?id=303666&tz=America/New_York&xima 1/3 7/3/2015 XFINITY Connect From: "baring archive" To: eppster2@comcast.net Sent: Friday, July 3, 2015 5:39:07 AM Subject: RE: Enquiry from The Baring Archive Website Dear Dr Eopp Thank you for your interesting enquiry. You might find it useful to have a look at our catalogue to our North American correspondence. Thomas Ward's letters can be found at HC5.1.2 http://www.baringarchive.org.uk/materials/the_baring_archive_hc5.pdf I have also attached pages from our catalogue relating to land in Maine (ref: DEP3). I hope that this is helpful. Best regards Clara Clara Harrow Archivist The Baring Archive 60 London Wall London EC2M 5TQ T +44 20 7767 6721 www.baringarchive.org.uk www.risksandrewards.org.uk Original Message From: Ronald H. Eopp, Ph.D. [mailto:eppster2@comcast.net] Sent: 02 July 2015 23:15 To: GB-LDN-The Baring Archive Subject: Enquiry from The Baring Archive Website Enquiry from The Baring Archive Website *** Sender's contact information: Name: Ronald H. Eopp, Ph.D. Email: eppster2@comcast.net Telephone: 717-272-0801 (USA) *** Their message Boston banker Thomas Wren Ward (1786-1858) was the American agent for Barings Brothers, the grandfather of George Bucknam Dorr (1853-1944), the founder of Acadia National Park in Maine. My biography of Mr. Dorr will be published next April and therein I have devoted attention to T.W. Ward, much of the documentation secured through the holdings of the Massachusetts Historical Society. https://web.mail.comcast.net/zimbra/h/printmessage?id=303666&z=America/New_York&xim=1 2/3 Deposit and Gifts DEP 2.4 cont 60409-60548 [George White in Mexico, to Barings, 1862, see HC4.5.33] These photocopies were obtained by Professor Christopher Platt when Official Historian of Barings 3 Documents relating to the purchase of land in the District of Maine, U.S.A., part of the State of Massachusetts See also DEP 85 3.1 1795 Mar-1796 Nov: Correspondence, mostly between Alexander Baring, later 1st Lord Ashburton, Sir Francis Baring, William Bingham, JW Hope and Hope & Co, being items 1 to 37; with memoranda and relating copy letters 3.2 1796 Nov-1799 Jan: Correspondence exchanged between the same parties as at DEP 3.1 and also J Richards, PC Labouchere, Caspar Voght, being items 40 to 77; with memoranda and other relating papers 3.3 1799 Jan-1835 Nov: Correspondence exchanged between Sir Francis Baring, Alexander Baring, William Bingham, Willings & Francis, Charles Wall, Hope & Co, Mr Wolcott, Earle & Co, Sir Thomas Baring and John Flaxman (Sculptor), being items 70 to 125; with relating papers including facsimile copies of two eighteenth century maps of eastern USA 3.4 1. Transferred to DEP 3.1 [item 1] 2a. 1793 Dec-1794 Jan, Amsterdam: Alexander Baring, later 1st Lord Ashburton, and Henry Hope to Sir Francis Baring Relating to Alexander's work in Hope & Co and the workings of the Amsterdam capital market 2b. 1796-1836, London, Philadelphia & elsewhere: Alexander Baring, later 1st Lord Ashburton, to Sir Francis Baring, Hope & Co and others Being copies or precises of letters at DEP 3.1-3 5 Deposit and Gifts DEP 3.4 cont 3.1. nd: 'Plan of Part of the District of Maine', being a printed map with two areas land coloured; another copy at DEP 85.5.4 Scale 10 miles to one inch 3.2. nd: 'A Map of Lands lying in the District of Maine between the Rivers Scoodiac and Penobscot in the Commonwealth of Massachusetts', being a hand drawn map; no scale 4. 1795-1836: William Bingham to Sir Francis Baring and William Miller to 1st Lord Ashburton With memoranda relating to the disposal of lands and the proceeds (1835) and powers of attorney of William Bingham in favour of Sir Francis Baring (1797) 5. nd: Notes, made at a later date [by Colonel Mills? (see below)], relating to papers at DEP3 3.5 1795 Mar-1796 Nov: "Correspondence in regard to the Maine Lands, 1792-1836', Vol 1, being typescript transcriptions of documents at DEP 3.1 [items 1- 37]; indexed 3.6 1796 Nov-1799 Jan: As DEP 3.5, being Vol 2 and containing transcriptions as at DEP 3.2 [items 38-69] 3.7 1799 Jan-1835 Nov: As DEP 3.5, being Vol 3 and containing transcriptions as at DEP 3.2 and DEP 3.3 [items 70-125] These papers were given to Barings in 1937 by Colonel A Mills See also DEP 85 Note 1: On Maine Lands Purchase In 1791, William Bingham, of Philadelphia, and others, acquired considerable lands in the District of Maine, then part of the State of Massachusetts. The total area acquired was two million acres, held by Bingham and other proprietors, including General Cobb and General Knox. In 1795 Bingham wished to sell a portion of the lands, and early in that year Major William Jackson came to England as Bingham's representative. 6 Deposit and Gifts DEP 3.7 cont Note 1 cont. Jackson offered to Sir Francis Baring one million acres of the lands, made up of two undivided tracts: the Kennebec Tract, in the northern back-lands of Maine, and the Penobscot Tract, between the Scoodac and Penobscot rivers in the south-east of Maine. Each tract contained half a million acres. The price was two shillings an acre. The proprietor's title to the lands was good. Hope & Co, of Amsterdam, were approached by Sir Francis Baring, and in August 1795 the former agreed to extend a credit of £100,000 for the Maine Lands operation. Three-quarters of this credit was to be put to the account of Hope & Co and one-quarter to the account of John & Francis Baring & Co. Alexander Baring, later 1st Lord Ashburton, then aged 21, was sent out to America, carrying a letter of credit for £100,000, and with full powers to negotiate the purchase of the Maine Lands if he saw fit. The buyers had two objects in view: first, to secure capital in an investment beyond the reach of the war in Europe; and secondly, to speculate in the development of the USA. Alexander Baring left England on c23 Sep 1795, and reached Boston on 29 Nov. He left Boston on 1 Jan 1796 and arrived at Philadelphia on 14 Jan, having spent five days in New York en route. In Philadelphia he negotiated with William Bingham. As a result of these negotiations he purchased from Bingham an undivided moiety of the following lands: one million acres of the Penobscot Tract, at two shillings (44 4/9 cents) an acre 200,000 acres additional to the Penobscot Tract, to the west of it, and including the port and town of Gouldsborough (Gouldsboro) at two shillings an acre. 1.25 million acres close to the Penobscot Tract, north of it, at one shilling and six pence an acre Total of the moiety: 1,425,000 acres, in a compact tract of land, for £106,875 sterling Alexander Baring refused to touch the Kennebec Tract, and he persuaded Bingham to separate the Kennebec and Penobscot Tracts for the purpose of the negotiation. Both Henry Hope and Sir Francis Baring expressed satisfaction with the deal. 7 Deposit and Gifts DEP 3.7 cont Note 1 cont. On 13 Jun 1796 Alexander Baring began a tour of the purchased lands. The party consisted of William Bingham, his wife, the two Miss Binghams, Miss Willing, Viscomte de Noailles, John Richards (the elder) and Alexander Baring. The party later joined company with Generals executis Knox and Cobb. In Dec 1796 Alexander Baring wrote a detailed description of the tour and of the condition of the lands, to Hope & Co. General Cobb was Agent and Resident-Manager of the lands belonging to Bingham; and, after some uncertainty, John Richards, the elder, became, in July 1797, Agent and Resident Manager of the Hope-Baring lands at a salary of 1500 dollars per annum. Richards kept the appointment until about 1812, when he was succeeded by his son John. Alexander Baring remained for several years in the USA. In May and Jun 1797 Alexander proposed to his father that he should stay in America to become, in effect, manager of the Maine Lands. He seems to have kept hidden from his father the real reason for his wish to remain in America, for Sir Francis endorsed his son's letter dated Philadelphia, 1 Jun 1797: "AB. proposes to remain in America. His object must then have been a marriage with Miss Bingham." Alexander Baring and Anne Louise Bingham, elder daughter of William Bingham, were married on 23 Aug 1798 By 13 Oct 1801 Alexander had returned to England, with his wife and their two eldest children Two complications in connection with the administration of the Maine Lands may be cited: William Bingham on making his purchases of the lands in 1791 had agreed with the Government of Massachusetts to place 2,500 settlers on the lands, or to pay a forfeit of 30 dollars for each settler deficient. By 1806 there had been only 425 settlers on the lands, and Bingham faced a forfeit of more that 62,000 dollars. But the State Government agreed to accept 60,000 acres of Bingham's Kennebec Tract, at the rate of fifty cents an acre, in place of the forfeit. 8 THE MOLDING OF AMERICAN BANKING MEN AND IDEAS By FRITZ REDLICH In Two Parts With a New Introduction by the Author JOHNSON REPRINT CORPORATION New York and London 1968 Suppy 333-934+notes. Deposit and Gifts DEP 3.7 cont Note 1 cont. In 1797 a survey was taken of the Maine Lands. By this it was established that the estimated 1.25 million acres to the north of the Penobscot Tract contained in fact very nearly three million acres. The Government of Massachusetts stipulated that Bingham should either accept the whole of this land, or relinquish the whole of it. Bingham was unwilling to accept SO large a tract as three million acres. He proposed to renounce his claim, and in compensation offered to Hope-Baring an equal area of the Kennebec Tract, which had previously been refused by Alexander Baring. The documents do not show the end of this negotiation, but it seems clear that it came to nothing. The investment in the Maine Lands did not turn out to be a brilliantly profitable speculation. The general disposition to speculate in American lands, which had been manifest in 1797, died away. Furthermore, the Province of Maine was not attractive to settlers, who preferred to go further south. Finally, Maine was primarily an agricultural country; and capital during the Napoleonic war was invested in commerce rather than in agriculture, the USA having an expanding trade as a neutral power. Nevertheless, to have sold the lands during the first 20 years of the nineteenth century would have meant a great loss. They were, therefore, kept by Hopes and Barings under the management of the Richards family. The running expenses of the estates ate up the gains derived from them. In 1835 the greater part of the Hope-Baring lands was sold: 835,000 acres for £230,000. Note 2: In these documents, besides the main subject of the Maine Lands Purchase, the following subjects may be noted: Alexander Baring's description and impressions of the American scene and of American politics The resignation of President Washington, and the political situation then ensuing (see Alexander Baring to Henry Hope, Philadelphia, 29 Nov 1796) Viscomte de Noailles, and Talleyrand (see Alexander Baring to Hope & Co, Philadelphia, 26 May 1796 and to Sir F Baring, Philadelphia, Nov 1796) The United States Loan (1798 Nov - 1802 Feb) 9 Pit 5/05 The Baring Financial Crisis STOR R Arthur Crump The Economic Journal, Vol. 1, No. 2 (Jun., 1891), 388-394. Stable URL: tp://links.jstor.org/sici?sici=0013-0133%28189106%291%3A2%3C388%3ATBFC%3E2.0.CO%3B2-% The Economic Journal is currently published by Royal Economic Society. Your use of the JSTOR archive indicates your acceptance of ISTOR's Terms and Conditions of Use, available at http://www.jstor.org/about/terms.html. JSTOR's Terms and Conditions of Use provides, in part, that unless you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the ISTOR archive only for your personal, non-commercial use. Please contact the publisher regarding any further use of this work. Publisher contact information may be obtained at http://www.jstor.org/journals/res.html. Each copy of any part of a JSTOR transmission must contain the same copyright notice that appears on the screen or printed page of such transmission. ISTOR is an independent not-for-profit organization dedicated to creating and preserving a digital archive of scholarly journals. For more information regarding ISTOR, please contact support@jstor.org. http://www.jstor.org/ Tue May 3 12:27:08 2005 Also by Stephen Fay Measure for Measure: Reforming the Trade Unions The Collapse of The Great Silver Bubble The Ring: Anatomy of an Opera rtrait of an Old Lady: Turmoil at the Bank of England Power Play: The Life and Times of Peter Hall Zinoviev Letter (with Lewis Chester and Hugo Young) BARINGS The Death of Venice (with Phillip Knightley) Hoax (with Lewis Chester and Magnus Linklater) STEPHEN FAY 1996 FRANKLIN PIERCE COLLEGE LIBRARY RINDGE, N.H. 03461 W. W. NORTON & COMPANY NEW YORK . LONDON AMICUS Web Full Record - AMICUS - Library and Archives Canada Page 1 of 1 Library and Archives Bibliothèque et Archives Canada Canada Canada Français Home Contact Us Help Search canada.gc.ca AMICUS Full Record Basic Search Advanced Search Canadian National Catalogue Introduction Comments AMICUS Help My List Go to Registered Service Save Link to this page AMICUS No. 16606260 Monograph/Microfilm NAME (S) : * Baring Brothers & Co Public Archives of Canada Baring Brothers & Co TITLE (S) : Baring papers [microform] PUBLISHER: [Ottawa] : Public Archives Canada, [1954?] DESCRIPTION: 78 microfilm reels ; 35 mm. NOTES: Title on container: Baring Brothers, Canada Contains letters received by Baring Brothers written from and pertaining to Canada, dated from the period 1792-1891. Also contains some correspondence from Mexico, Brazil, Great Britain, France, and Holland. Includes indexes. Restrictions apply. NUMBERS : LCCN: 96628032 CLASSIFICATION: LC Call no.: HG5152 Dewey: 332.1/5/09410971 SUBJECTS: Baring Brothers & Co.--History--Sources Investments, British--Canada Investments, British Merchant banks--Great Britain--History--Sources Save Created: 2002-07-08 Top of page Terms and Conditions Updated: 2003-11-19 http://amicus.collectionscanada.gc.ca/aaweb-bin/aamain/itemdisp?sessionKey=999999999... 4/23/2012 9/21/19. Harvesting Power: Transatlantic Merchants and the Anglo-American Grain Trade, 1795-1890 Thomas David Finger Flagstaff, Arizona Bachelor of Arts, State University of New York at Binghamton, 2003 Master of Arts, University of Arizona, 2006 A Dissertation presented to the Graduate Faculty of the University of Virginia in Candidacy for the Degree of Doctor of Philosophy Department of History University of Virginia May, 2015 1 9/26/14 Pransyluman llogazine of Hubry Biography 68, # 2 (1944): 269-285. The House of Baring and the Second Bank of the United States, 1826-1836 ARING BROTHERS AND COMPANY of London and the Second B Bank of the United States were institutions of major im- portance in their respective spheres. Baring Brothers had maintained connections with American businessmen and govern- mental institutions since before the American Revolution and was the leading Anglo-American merchant banking firm from 1815 to 1860, a period when a large proportion of American economic de- velopment depended upon English credit. 1 The Bank of the United States under the management of Nicholas Biddle was without a peer among the financial institutions in the young republic during the period under review. An analysis of their relations, therefore, illumines the general economic history of both countries and affords to the business historian an example of the manner in which con- flicting policies of two prominent firms were reconciled to mutual advantage. Connections between the two institutions began in 1817.2 In that year the Barings, in conjunction with Reid, Irving and Company, also of London, aided in acquiring a part of the specie reserve for the 1 Prior to the Revolution the firm had transacted business with various firms in Philadel- phia and New York. These initial relations had been enhanced by a visit of Alexander Baring (later Lord Ashburton) in the 1790's and by his subsequent marriage to a daughter of William Bingham, one of the leading citizens of the United States. Under Alexander Baring's manage- ment from 1803 to 1828 the firm acted as London agent for the First and Second Banks of the United States, paid the coupons upon a large amount of bonds of the Federal government held in England, served the American Departments of State and Navy from 1803 and 1815 respectively, and granted commission facilities of many kinds to scores of American merchants from New England to Louisiana. Adam Shortt, "The Barings," unfinished manuscript in the Public Archives of Canada, 25-29, 45-66; Baring Letter Book (Library of Congress), Sir Francis Baring & Co. to Rufus King, February 18, 1803, Sir Francis Baring & Co. to Albert Gallatin, April 25, 1803; Baring Brothers & Co. to A. J. Dallas, November 20, 23, 1815; L.H. Jenks, The Migration of British Capital to 1875 (New York, 1927), 66, 358. 2 Unfortunately evidence sufficient for a detailed analysis has been found only for the period after 1825. 269 The President and Fellows of Harvard College The House of Baring and American Trade Author(s): R. W. Hidy Source: Bulletin of the Business Historical Society, Vol. 9, No. 5 (Oct., 1935), pp. 71-75 Published by: The President and Fellows of Harvard College Stable URL: http://www.jstor.org/stable/3110924 Accessed: 22-09-2017 02:39 UTC JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org. Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at http://about.jstor.org/terms The President and Fellows of Harvard College is collaborating with JSTOR to digitize. preserve and extend access to Bulletin of the Business Historical Society JSTOR This content downloaded from 137.49.1.13 on Fri, 22 Sep 2017 02:39:45 UTC All use subject to http://about.jstor.org/terms TIMELINES FEBRUARY 1839 And so on. Scholars have been tempted to remember the haphazard hostilities as a sort of screwball farce. OLD BLOCK HOUSE, BUILT 1839, FORT KENT. MAINE 1598 "The episode has been viewed by historians with a good deal of merriment," professor Thomas Le Duc wrote in the American Historical Review in 1947, noting that the conflict is sometimes called the Pork and Beans War, presumably a jokey reference to the north-woods diet. Le Duc, though, argued that the causes were more complex and the outcomes more consequential than commonly understood, and over the years, he and other historians have worked out a fuller picture of the Aroostook War. The border dispute stemmed from a time-honored European colonial tradition: drawing lines willy-nilly on a map. During treaty talks in Paris to end the Revolutionary War, American and British delegates defined the eastern U.S.-Canada border as "that The Fort Kent Blockhouse is the angle which is formed by a line drawn due only remaining north from the source of the St. Croix River Aroostook War to the highlands; along the said highlands fortification. which divide those rivers that empty them- Maine Gets Its selves into the river St. Lawrence from those which fall into the Atlantic Ocean, to the northwesternmost head of the Connecticut River." Much confusion ensued. First, no one knew which of several rivers Northern Crown was the St. Croix, a name that had fallen out of use, but a bilateral committee resolved the issue in 1792. The "highlands" that formed the northern edge of Maine proved trickier to pin down, due to the fact that they didn't HOW A QUASI-WAR WITH CANADA MADE OUR STATE WHAT IT IS exist. Instead, the British argued that Canada TODAY - AND HELPED SECURE A LASTING PEACE AT THE BORDER. extended south past the Aroostook River, to BY WILL GRUNEWALD Mars Hill, and Mainers set the line 100 miles farther north, on the other side of the St. John Valley. In all, 12,000 square miles hung in the he only combat fatality at the Battle of Caribou balance, roughly the area of Rhode Island and - and in the whole of the Aroostook War was Massachusetts combined. T a bear. In late 1838, lumberjacks from New Most Mainers were willing to risk war for Brunswick were spotted cutting trees near that land, in large part because the economy Caribou, which, at the time, lay in a vast terri- had slumped in the late 1830s and surveys tory claimed for both the U.S. and British-ruled around the Aroostook River had recently Canada. A band of Maine lumbermen arrived uncovered rich soils ideal for agriculture to confront the New Brunswickers. Both sides and extractable mineral deposits. The state's were armed. During the standoff that followed, a startled black bear economic prospects, it seemed, lay in the attacked several Canadians, who shot it dead. Upon hearing gunfire, the north. Meanwhile, British interest was Americans started shooting too, but the combatants quickly dispersed. primarily military: preserving an overland Such misadventure was typical of the long-running border dispute. supply route from Halifax, though the St. When Maine commissioned a census of the disputed region, Canadian John Valley, to Quebec, connecting inland officials seized the census taker. When Maine dispatched a posse to Canadian colonies to the coast when ice made arrest Canadian lumberjacks, the lumberjacks captured the posse's the St. Lawrence unnavigable in winter. leaders. When New Brunswick sent a military commander to order Tensions peaked in February 1839, after Maine militiamen out of the territory, the militiamen took him captive. the state legislature had dispatched the militia 40 downeast.com Flb//march 2020 and Congress had set aside $10 million for starting the whole mess, helped preserve the contributing to the amity that now prevails the cause. But President Martin Van Buren Webster-Ashburton Treaty. Webster secretly on the world's longest shared border. In 1913, had no desire for a fight, so he dispatched the had in his possession maps that seemed to James L. Tryon, the New England director respected General Winfield Scott to reach a confirm the British claim. Their provenance of the American Peace Society, penned an détente, buying time for Washington and and reliability were suspect, but behind closed article encouraging Americans to celebrate London to hash out a lasting solution. Three doors, Webster used them to persuade Maine the following year as a "centenary of peace" years later, secretary of state Daniel Webster officials and U.S. senators that he'd struck a between the U.S. and Canada, dating back to and Alexander Baring First Baron Ashburton, favorable deal. Meanwhile, in London, an old end of the War of 1812, and not counting the finalized Maine's boundaries via treaty, Aroostook War and other occasional tensions. creating what's now known as the state's "THE EPISODE HAS BEEN VIEWED Considering in retrospect that, at the time "crown": some 7,000 square miles of northern of Tryon's writing, Europe was on the brink territory that includes the prized Aroostook BY HISTORIANS WITH A GOOD of the first of two world wars triggered by River valley, the hub of present-day potato DEAL OF MERRIMENT." territorial disputes, his point feels all the more farming. Britain kept its overland route, and meaningful. "Let all animosities be forgotten," Canada, which became self-governing a few he urged, "and memorials of our unhappy decades later, got 5,000 square miles of the royal map seemed instead to support the conflicts give place to rejoicing over our long disputed area. American claim, which quieted Ashburton's period of fraternity and peace." Neither side was quite happy. One critics in Parliament. senator accused Webster of turning Maine And though the chief aim of the Webster- Ashburton negotiations had been to sort out Timelines is a special monthly history into a "deserted and doomed state," while column celebrating Maine's 2020 a parliamentarian conferred upon Baron the trouble on Maine's upper frontier, the bicentennial. Will Grunewald is a senior Ashburton the nickname "Earl Surrender." resulting agreement went on to address editor at Down East. Ironically, some fuzzy cartography, after other border issues as far west as the Rockies, George P.A. Healy Reminiscences of a Portrait Pawnier the Chicago : A.C. Me clurg. +Co, 1894. to i no his Ward I the ALEXANDER BARING. (Lord Ashburton.) Accounting, Business & Financial History Routledge Vol. 19, No. 1, March 2009, 61-64 Taylor is Francis Group BOOK REVIEWS Baring Brothers and the Birth of Modern Finance, by Peter E. Austin, London and Brookfield, VT: Pickering & Chatto, 2007, xiv + 265pp., £60/$99, ISBN 9781851969227 Recent events have reminded us that different financial institutions fare very differently in stressful conditions. Here Peter Austin tells the story of a major bank in a turbulent emerging economy with sometimes volatile politics, and strongly reliant on the primary sector. This bank fared well in a serious financial crisis, while many of its rivals struggled or failed. The bank is Baring Brothers and the country is the United States of America in the second quarter of the nineteenth century. There are numerous parallels with important issues in modern crises and emerging market finance: the structure and development of the country's financial system; the Darwinian failure of weak businesses and banks; the search to allocate blame; the role of political and financial elites; concern over the presidential role and that of central government; and debates over free trade, to identify but a few. There have been many published histories of merchant banks. Baring Brothers has attracted several authors over the years, a number of whom have concentrated on its 1995 failure after Nick Leeson's disastrous derivatives trading in Singapore. Orbell (1985) and Ziegler (1988) offer relatively recent general histories of Barings, the latter much longer than the former, although neither address in depth the period and events covered in Austin's book. Hidy (1949), described by Ziegler (p. 383) as 'somewhat indigestible', does deal with Barings in the US in this period, and while Austin makes use of these three histories, he is able to reflect sources and scholarship not available to, or used by, these authors. Austin's book is not intended as a comprehensive history of Barings, but focuses on a specific episode in which the bank played a major role, the 1837 financial crisis. In Austin's view, the question of 'what happened' in this crisis is largely settled, whereas the question 'why' to some extent remains open. This is not unusual in such situations - for example, scholars continue to debate explanations for banking crises such as those in Germany in 1931 and the US in 1929-33. This is, for the most part, a very good and clearly written book. The arrangement is chronolog- ical, with the 190 pages of the main body of the book broken into six chapters. These build slowly and carefully from the mid-eighteenth century to the culmination of the late 1830s crisis, concen- trating on that final decade. A 10-page epilogue addresses Barings' problems in Argentina in 1890 and Singapore in 1995, with a further 60 pages of notes, bibliography, a useful chronology and glos- sary. A casual reader could easily grasp the main arguments from the introduction and conclusions. There is extensive use of contemporary newspapers and journals, of correspondence between TWW London and Barings' Boston agent, Thomas Ward, and of British and American literature and archival sources, including those on the Bank of England and the London discount market. Ward emerges as outstanding at the operational level, but inconsistent and at times unsound in his strategic judgement. He was sometimes frustrated by the conservatism of the London-based Joshua Bates. 'Pawky, dour, charmless; with little imagination and less humour' (Ziegler 1988, 123), Bates, also from Boston and a Barings' partner from 1828 until his death in 1864, was the firm's key partner on American business and architect of its American strategy. ISSN 0958-5206 print/ISSN 1466-4275 online DOI: 10.1080/09585200802667162 http://www.informaworld.com Routledge Taylor & Francis Group Accounting, Business & Financial History Accounting History Review ISSN: 0958-5206 (Print) 1466-4275 (Online) Journal homepage: https://www.tandfonline.com/loi/rabf20 Baring Brothers and the birth of modern finance Mark Billings To cite this article: Mark Billings (2009) Baring Brothers and the birth of modern finance, Accounting, Business & Financial History, 19:1, 61-63, DOI: 10.1080/09585200802667162 To link to this article: https://doi.org/10.1080/09585200802667162 Published online: 20 Mar 2009. Submit your article to this journal Article views: 63 Full Terms & Conditions of access and use can be found at https://www.tandfonline.com/action/journallnformation?journalCode=rabf21 62 Book reviews The US was the leading emerging economy of the nineteenth century, with a rapidly growing internal market and tensions which ultimately led to the Civil War. Much of the book is occupied in explaining this background and could be read as a general economic history of the US in the first half of the nineteenth century. In this early era of globalisation Barings' interests straddled the globe. Its influential role in the crisis of the late 1830s helped to maintain Anglo-American trade, financial and political relations. Central banking arrangements in Britain and the US were either little developed or absent and Barings exerted a significant stabilising influence in both countries. Austin sets himself the task of explaining why Barings emerged from 1837 relatively unscathed. As the 'sixth great power' of Ziegler's title, Barings was an institution accustomed to dealing directly with governments, and had profited in the process. Barings ran a successful business in the US, thanks to Ward's operational excellence and Bates market judgement and insistence on adherence to conservative standards. It survived friction between two of its major clients, the Bank of the United States and the US government under the rough and tumble politics of the partisan Jacksonian presidency (1829-37). During the boom which preceded the 1837 crisis, Barings stood apart from its rivals in its cautious approach, but pulled back from the US market early, demonstrating the difficulty of 'timing a market'. Austin argues that Barings' trade-off between prudence and commitment served it well in the 1830s, but was to its long-term detriment, as it was left behind by the 'birth of modern finance', an American and democratic version of finance, which left the bank vulnerable and contributed to its ultimate destruction over 150 years later. The first part of this argument is well sustained, but the second part is less convincing. Could Barings have retained its position in the US market? As the author discusses, this seems unlikely. Austin is also clear that the 1995 collapse reflects factors entirely absent in Barings' handling of the 1837 crisis, for example: loss of strategic direction; lack of attention to detail; the failure of London-based directors to delegate operational matters effectively; and an unwillingness to question the source of profits. But it is difficult to attribute such failings to mid-nineteenth century developments. The author could have been better served by editor and publisher. The third in the publisher's welcome financial history series, edited by Robert E. Wright, this volume contains no editorial contribution, nor any biographical detail on the volume's author. Web searches suggest that the work is developed from his PhD on 'Baring Brothers and the Panic of 1837', completed at the University of Texas at Austin in 1999. There are reproductions of some interesting and relevant contemporary prints and paintings, but these are small and a little haphazardly interspersed with the text. The many charts and tables are also integrated with the text, but these are also often small, and would have been better presented separately as appendices, which would have overcome occasional repetitions and inconsistencies in reported figures. This reader would have liked more, and more consistent presentation of, financial data on Barings' performance, such as profits, capital and business volumes, although the available sources may not have permitted this. The old adage that one should not judge a book by its cover is apt. A potential reader would be misled by the publisher's cover publicity which implies that this is a wider history of Barings which analyses the errors which led to its downfall'. This does no justice to the author's contribution, and the late twentieth century failure is addressed only in the epilogue, and, as I have argued, not wholly successfully. Given Austin's sound scholarship and the numerous parallels between the 1837 crisis and later financial crises, this is unnecessary, as the book has considerable interest and value for the professional historians who will surely make up most of its readership. Book reviews 63 References Hidy, R. 1949. The house of Baring in American trade and finance: English merchant bankers at work, 1763-1861. Cambridge, MA: Harvard University Press. Orbell, J. 1985. Baring Brothers & Co. Limited. A history to 1939. London: Baring Brothers & Co. Ltd. Ziegler, P. 1988. The sixth great power: Barings 1762-1929. London: William Collins Sons & Co. Ltd. Mark Billings Nottingham University Business School © 2009, Mark Billings Promise Fulfilled. The History of the Accounting Discipline at the University of Melbourne 1925-2004, by Geoff Burrows, Melbourne, Melbourne University Publishing, 2006, XV + 280pp., A$29.95, ISBN 9780522852721 This lively, well-produced and well-illustrated book is a good read for all who have struggled to be academic accountants and especially for those who have worked in an Australian university. Its author, Geoff Burrows, writes from the inside, always a delicate task, but he is at his best in his pen portraits of past and present colleagues. It has been both a strength and a weakness of accounting that the teaching of the subject in a university could be started with very little in the way of resources: a strength in that only a part-time practitioner or two needed to be recruited (unlike medicine, which has seemingly required a dozen professors and a teaching hospital); a weakness in that accounting could easily be abandoned. Whether or not accounting has flourished has depended in large part on the commitment and abilities of the first appointees. Melbourne University was supremely fortunate in that its first appointments included the great Alex (later Sir Alexander) Fitzgerald (1890-1969). Fitzgerald was appointed from 1925. Thanks to him, Melbourne University became the birthplace and early leader of academic accounting in Australia. In 1955, thirty years later, Fitzgerald became Australia's first (albeit still part-time) professor of accounting. An early colleague of Fitzgerald's was Louis (Lou) Goldberg (1908-97), appointed a part-time tutor in 1931, a full-time lecturer (the first in any Australian university) in 1946, and Melbourne's (but not Australia's) first full-time professor of accounting in 1958. The size of accounting classes at Melbourne increased considerably after the Second World War, largely as a response to the Commonwealth Reconstruction Training Scheme which provided free tuition to returning servicemen. Unlike in the UK, accounting shared in the great expansion of university teaching and research in the 1960s. At this point, I may perhaps be allowed a personal reminiscence. I first became aware of accounting at the University of Melbourne when, as an impoverished articled clerk in the City of London in the 1950s, I read Littleton and Yamey's Studies in the History of Accounting (1956) to take my mind off the boring daily realities of ticking and checking and cramming for professional examinations. Littleton and Yamey reprinted, with some helpful added notes for those, like me at the time, with a very hazy idea of Australian history, Goldberg's 'Some Early Australian Accounting Records' (1953). A few years later, in 1959, I was working as an expatriate accountant in Lagos, Nigeria and considering a move into academic life. There were almost no opportunities in the UK at that date, but two Australian universities, Adelaide and Melbourne, were advertising lectureships in the airmail edition of The Accountant. I applied to both and was appointed to Adelaide. My move to Adelaide (the turning point in my life) did not mean that I was unaffected by Melbourne. That university was the origin of most of S Web Full Record - AMICUS - Library and Archives Canada Page 1 of 1 Library and Archives Bibliothèque et Archives Canada Canada Canada Français Contact Us Help Search Canada Site Home About Us What's New What's On Publications AMICUS Full Record Basic Search Advanced Search Canada National Caralague Introduction | Comments | AMICUS Help My List Go to Registered Service Save AMICUS No. 16606260 Monograph/Microfilm NAME (S) : Public Archives of Canada Baring Brothers & Co TITLE (S) : *Baring papers [microform] PUBLISHER: [Ottawa] : Public Archives Canada, [1954?] DESCRIPTION: 78 microfilm reels ; 35 mm. NOTES: Title on container: Baring Brothers, Canada Contains letters received by Baring Brothers written from and pertaining to Canada, dated from the period 1792-1891. Also contains some correspondence from Mexico, Brazil, Great Britain, France, and Holland. Includes indexes. Restrictions apply. Finding aid available in the Library of Congress Manuscript Reading Room. NUMBERS: LCCN: 96628032 //r97 CLASSIFICATION: LC Call no.: HG5152 LC Call no.: Microfilm 11,948 Dewey: 332.1/5/09410971 21 SUBJECTS: Baring Brothers & Co.-History-Sources Investments, British-Canada Investments, British Merchant banks-Great Britain-History-Sources Save Created: 2002-07-08 Top of page Important Notices Updated: 2003-11-19 http://amicus.collectionscanada.ca/aaweb-bin/aamain/itemdisp?sessionKey=999999999_1... 7/18/2006 7/3/2015 XFINITY Connect XFINITY Connect eppster2@comcast.net + Font Size - Re: Enquiry from The Baring Archive Website From : Ronald Epp Fri, Jul 03, 2015 08:30 AM Subject : Re: Enquiry from The Baring Archive Website To : baring archive Dear Ms. Harrow: What a pleasant surprise to receive your reply within a day! As we Americans celebrate our July 4th, I'll be busy scrutinizing the bountiful inventories you have provided. It is unfortunate that historians have not pursued the back story behind Mr. Ward's professional responsibilities to his employer and the character of the man. There are no dissertations on Ward but the David Baldwin 1961 University of Pennsylvania study on his eldest son Samuel Gray Ward ("Puritan Aristocrat in the Age of Emerson") reveals much of his father's character and their family life. As well as the aforementioned Massachusetts Historical Society holdings there is a largely ignored collection of "Ward-Perkins Papers" at the University of California at Santa Barbara that I hope to investigate more fully this fall (See the beautifully written study by the late archivist Donald Fitch in Soundings 16 (1985): 18-77. the UCSB library publication). Of course you may know of these resources, but as a retired academic library administrator I can't resist bring these to your attention. Who knows how they might amplify the primary and secondary literature for those who seek your assistance. The legal archive I referred to is located in Bar Harbor, Maine. As part of a Maine State Library digitization process, we are inventorying the collection through from its early 19th-century documents through the end of WWII. I have handled Barings documents therein and will contact you if I find anything that appears not to be covered in the finding aids you have provided. Most cordially, Ronald Ronald H. Epp, Ph.D. 532 Sassafras Dr. Lebanon, PA 17042 USA 717-272-0801 htps://web.mail.comcast.net/zimbra/h/printmessage?id=303666&tz=America/New_York&xima 1/3 7/3/2015 XFINITY Connect From: "baring archive" To: eppster2@comcast.net Sent: Friday, July 3, 2015 5:39:07 AM Subject: RE: Enquiry from The Baring Archive Website Dear Dr Eopp Thank you for your interesting enquiry. You might find it useful to have a look at our catalogue to our North American correspondence. Thomas Ward's letters can be found at HC5.1.2 http://www.baringarchive.org.uk/materials/the_baring_archive_hc5.pdf I have also attached pages from our catalogue relating to land in Maine (ref: DEP3). I hope that this is helpful. Best regards Clara Clara Harrow Archivist The Baring Archive 60 London Wall London EC2M 5TQ T +44 20 7767 6721 www.baringarchive.org.uk www.risksandrewards.org.uk Original Message From: Ronald H. Eopp, Ph.D. [mailto:eppster2@comcast.net] Sent: 02 July 2015 23:15 To: GB-LDN-The Baring Archive Subject: Enquiry from The Baring Archive Website Enquiry from The Baring Archive Website *** Sender's contact information: Name: Ronald H. Eopp, Ph.D. Email: eppster2@comcast.net Telephone: 717-272-0801 (USA) *** Their message Boston banker Thomas Wren Ward (1786-1858) was the American agent for Barings Brothers, the grandfather of George Bucknam Dorr (1853-1944), the founder of Acadia National Park in Maine. My biography of Mr. Dorr will be published next April and therein I have devoted attention to T.W. Ward, much of the documentation secured through the holdings of the Massachusetts Historical Society. https://web.mail.comcast.net/zimbra/h/printmessage?id=303666&tz=America/New_York&xima 2/3 7/3/2015 XFINITY Connect Yet recently I have uncovered a Maine legal archive which I have reason to believe is unknown to you, containing documents relative to 19th-century Baring interests in land transactions. How might I best compare my documentation against your archive? Thank You! http://www.baringarchive.org.uk/ The information in this Internet email is confidential and may be legally privileged. It is intended solely for the addressee. Access to this Internet email by anyone else is unauthorised. If you are not the intended recipient, any disclosure, copying, distribution or any action taken or omitted to be taken in reliance on it, is prohibited and may be unlawful. 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