1914 and 1939
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APPENDIX PROFILES OF THE BRITISH MERCHANT BANKS OPERATING BETWEEN 1914 AND 1939 An attempt has been made to identify as many merchant banks as possible operating in the period from 1914 to 1939, and to provide a brief profle of the origins and main developments of each frm, includ- ing failures and amalgamations. While information has been gathered from a variety of sources, the Bankers’ Return to the Inland Revenue published in the London Gazette between 1914 and 1939 has been an excellent source. Some of these frms are well-known, whereas many have been long-forgotten. It has been important to this work that a comprehensive picture of the merchant banking sector in the period 1914–1939 has been obtained. Therefore, signifcant efforts have been made to recover as much information as possible about lost frms. This listing shows that the merchant banking sector was far from being a homogeneous group. While there were many frms that failed during this period, there were also a number of new entrants. The nature of mer- chant banking also evolved as stockbroking frms and issuing houses became known as merchant banks. The period from 1914 to the late 1930s was one of signifcant change for the sector. © The Editor(s) (if applicable) and The Author(s), 361 under exclusive licence to Springer Nature Switzerland AG 2018 B. O’Sullivan, From Crisis to Crisis, Palgrave Studies in the History of Finance, https://doi.org/10.1007/978-3-319-96698-4 362 Firm Profle T. H. Allan & Co. 1874 to 1932 A 17 Gracechurch St., East India Agent. Described in advertisement in 1928 as “Coffee Importers since 1874”, offering PPEN London, EC “Liberal Advances given against consignments”.1 The frm had an agent in Kenya in 19292 Filed Bankers’ Returns between 1914 and 1932.3 Principals described as Merchant Bankers in 1932 D I return. Declared bankrupt in November 1932 with the frm described as Merchants and Planters4 X Arbuthnot,Latham & Co. 1833 to 1981 To 1929: Founded in 1833 as Arbuthnot & Latham. In 1861 Alfred Latham becomes Governor of the Bank 33 & 34 Great St Helen’s, of England London, EC In 1891 Consolidated Estates Company formed to manage the frm’s Ceylonese and Indian inter- From 1929: ests. The frm’s chief market was India, but it also traded in the West Indies and Central America5 9 St. Helen’s Place In 1921 Arbuthnot, Latham & Co converts to a limited liability company. The grounds given were London, EC “family reasons”, which seem to be the absence of sons to continue partnership6 In 1944 John K. Gilliat & Co was acquired.7 In 1981 the frm was acquired by Dow Skandia Banking Group8 In 2005 the Arbuthnot name resurfaced as the Arbuthnot Banking Group, which can trace its roots to Arbuthnot Latham & Co. Ltd. Balfour, Williamson & 1851 to 1960 Company Founded in Liverpool by Scottish traders in 1851. Initially associated with the Chilean trade, later 7 Gracechurch Street, extended to California. Involved in fruit and grain trade London, EC The South American operation was undertaken from 1863 by Williamson, Balfour & Co. in Valparaiso, Chile.9 In 1869 a partnership was formed in the USA called Balfour, Guthrie & Co.10 In 1960 it was acquired by the Bank of London & South America, which had been a subsidiary of Lloyds Bank since 191811 (continued) (continued) Firm Profle J. Lionel, Barber and Co. Ltd. c.1910–1921 (Banking House) J. Lionel Barber chaired the Lampa Mining Co.—a silver mining company registered in Liverpool 5 Lothbury in 1906. He formed the Corocoro United Copper Mines in 1909, which operated properties in London, EC2 Bolivia.12 In 1912 the frm was taken over as a going concern by a Liverpool-based company with (Commercial House and Head the injection of £100,000. J. Lionel Barber became “permanent governing director”13 offce) The frm had partnerships in Chile, Peru and Brazil as well as a North American house called 411 Tower Building, Barber, Williams & Co. Inc. based in New York14 Liverpool One of the frm’s managers conducted a fraud in 1920 involving bills in excess of £60,000. Probably as a result, the frm suspended payments on 5 March 192115 Baring Brothers & Co. Ltd. 1762 to 1995 8 Bishopsgate, Established in London in 1762 as John & Francis Baring & Co. as agents for the family merchant London, EC business in Exeter. In 1801 it was renamed Sir Francis Baring & Co. The frm became a major merchant banking house especially in sovereign bond issues. In 1890 it suffered a liquidity crisis and was rescued by a Bank of England loan guaranteed by other banks. It was reconstituted as Baring Brothers & Co. Ltd. It became insolvent in 1995 because of a rogue trader called Nick Leeson employed in Singapore. Consequently, the company was acquired for a nominal sum by ING Group of the Netherlands16 Thomas Barlow & Brother 1863 to 1979 Ceylon House, Founded in 1863 by Thomas Barlow as an exporter of cotton goods17 49 & 51 Eastcheap, In the late 1880s, the frm fnanced tea estates and acquired several tea estates in Ceylon and Assam. London, EC In the late 1890s the frm shifted to the cultivation of rubber, foating the Highlands & Lowlands A Offces in Manchester, Calcutta Para Rubber Co. Ltd. in 1906. The frm took the role as company secretaries and selling agents PPEN (until 1936), Shanghai for a number of plantation companies in London while the Far Eastern offces acted as managing 18 (until 1937), Singapore and agents D I X Kuala Lumpur. In 1949 only The frm was included in Banker’s Return from 1933 to 1938 only London and Manchester In 1965 it merged with one of its rivals, Bousteads. By 1979 the frm had become an investment 363 addresses holding company, having effectively divested its physical assets due to local Malaysian demands for repatriation of estate assets19 (continued) (continued) 364 Firm Profle A Barnato Brothers 1880 to 1919 PPEN 10 & 11 Austin Friars, In 1880 Barney Barnato established the frm of Barnato Brothers as diamond brokers and merchant London, EC D bankers. After the First World War the frm invested in restaurants, a brewery, cotton manufactur- I X ing and the London Underground20 After a dispute over the wills of former partners in 1919, the partnership was dissolved, and a private limited company formed21 The private company had extensive operations in mining investment with Anglo-American Investment Trust and De Beers Consolidated Mines. It later became a wholly-owned subsidiary of Johannesburg Consolidated Investment Company, which was also founded in 1889 by Barney Barnato Robert Benson & Co. 1852 to 1961 31 Bishopsgate, The Benson family established as textile merchants in Liverpool in the 1780s. The business moved London, EC to London in 1852, becoming a merchant bank. It was closely connected with railroad fnance From Nov. 1915: in the USA in the late nineteenth century. Member of the International Financial Society issuing 26 Old Broad Street, consortium in 1863.23 Converted into a private limited company in 192624 London, EC22 In 1947 it merged with Lonsdale Investment Trust to become Robert Benson Lonsdale & Co. Ltd., which in 1961 merged with Kleinwort, Sons & Co. Ltd. to become Kleinwort Benson Ltd.25 B. W. Blydenstein & Co. 1859 to 1953. 55 & 56 Threadneedle Street, Founded in 1859 by Benjamin Willem Blydenstein. In the same year, he founded its Amsterdam London, EC branch, Twentsche Bank, of which he was a director26 4 Hercules Passage, In 1928 Twentsche Bank was converted to a limited company. There was a similar change in its Old Broad Street, London, EC parent company, De Twentsche Bank of Amsterdam. The paid-up capital of B. W. Blydenstein was increased from £625,000 to £700,00027 From 30 September 1932, the frm restricted its activities in the London discount and bill market.28 This led to a change of partners and a reduction in the frm’s capital to £100,00029 In 1953 the frm’s business was absorbed within De Twentsche Bank NV and De Nederlandsche Handel-Maatschappij NV of Amsterdam30 (continued) (continued) Firm Profle Blyth, Greene, Jourdain & 1810 to 1981 Co. Limited Thomas Blyth and Co. was established in Limehouse in 1810 as a sail-maker and ship chandler. The 41 Eastcheap, Mauritius frm of Thomas Blyth, Sons & Co. was established in 1830. In 1874 the frm became London, EC Blyth, Greene, Jordain & Co. and incorporated as a private limited company in 1894. Shortly afterwards acquiring the banking business of Benecke Souchay & Co. In 1903 the frm became the sole agents of the Asiatic Petroleum Company for Mauritius and Réunion. This evolved into an agency for Shell Company of South Africa. During the interwar period the frm did a considerable amount of trade in rice from Burma. The frm was involved in giving credit to customers abroad and making advances to shippers against produce31 In 1981 the company was acquired by John Swire and Sons Bonn & Co. c.1900 to 1921 62½ Old Broad Street, Included in Bankers’ Return for 1914. Max and Walter Bonn were partners. London, EC Max Bonn’s father provided the capital for the business. Walter Bonn was Max’s cousin.32 Walter Bonn served in the Welsh Guards in the First World War, reaching the rank of Major. He was awarded the Military Cross and Distinguished service Order.33 He did not return to the frm. From 30 June 1919, Max Bonn was sole partner.34 The frm was acquired by Helbert, Wagg & Co. in 192135 Boulton Brothers & Co. 1907 to 1924 39 Old Broad Street, Established in 1907.