LORD NORMAN DEAD

Press, Volume LXXXVI, Issue 26030, 6 February 1950, Page 6

LORD NORMAN DEAD

FAMOUS BRITISH FINANCIER

FORMER GOVERNOR OF BANK OF ENGLAND

(Rec. 8 p.m.) LONDON, February 5. The death has occurred of Lord Norman (formerly Mr Montagu Norman), who was Governor of the Bank of England from 1920 to 1944. He was one of the most famous and distinguished of international financiers. Born on September 6, 1871, and educated at Eton and King’s College, Cambridge, he came of a banking family. His grandfathers on both sides were directors of the Bank of England. In 1890 he joined the family banking firm of Brown, Shipley and Company. He then worked for a time with Brown Brothers, Harrison and Company, New York, and returned to the London company, in which he became a partner; in 1915. Meanwhile he had served in the South African War, winning the D.S.O. Lord Norman became associated with the Bank of England during World War I, and in 1920 he became its governor, a position he held until 1944, when he retired through ill health. In 1922 he went to the United States with Mr Stanley Baldwin, then Chancellor of the Exchequer, to arrange for the funding of the British war debt. Under Lord Norman's direction, the Bank of England brought what had been called “a bankrupt and commercially ruined Europe” from chaos to some measure of financial stability and commercial prosperity. He travelled thousands oi miles to promote co-

operation among the world’s central banks. In 1924 he defeated the first big attack on the pound, and next year carried through the stabilisation of the currency on the pre-war gold standard.

Behind the scenes he played an important and little publicised part in all the post-war conferences. Lord Norman was, however, unable to stave off the crisis caused by the world economic depression, but because of his skilful management it came late to Britain. In 1929 when the French Govern-, ment withdrew the money of the Bank of France from the English market, Lord Norman took measures to check the threatened deflation. In 1931 came the collapse of the Austrian CreditAnstalt which led to intervention by Britain and France. France threatened to back out unless Austria gave up the idea of an Austro-German customs union. Lord Norman then took' overtime entire credit of 150.000.000 schilling. But in July the crisis in Central Europe forced Vienna to yield to France. The flight from sterling assumed alarming proportions. Lord Norman was opposed to accepting aid from France, but was overruled by his colleagues and a few days later he left on what he described as a “diplomatic holiday.” The Gold Standard

Less than two months after his departure the collapse of sterling proved that the belated support of France had been of no avail and Britain had to abandon the gold standard. As Lord Norman had rightly expected, however, the reputation of the British pound stood so high in the world that its fall was not catastrophic. In November, 1931, Lord Norman was unanimously re-elected Governor of the Bank of England—the greatest personal victory of his career. Recognising the need for the rationalisation of industries. Lord Norman had initiated and assisted several ,big schemes and established the Securities Management Trust and the Bankers’ Industrial Development Company, as links between the great banks and rationalised industry. The bank also acquired an interest in the United Dominions Trust to finance purchases. Lord Norman several times visited the United States to promote closer working between the Bank of England and the Federal Reserve Bank, one of his objects being to extend the policy of American co-operation with European banks in rehabilitating the countries affected by the war. He was created a baron., the first Baron Norman, on July 27, 1944, which was the two hundred and fiftieth anniversary of the date of the granting of a charter to the Bank of England. Lord Norman remained a bachelor until late in life. In 1933 he married Priscilla, daughter of Major Robert Revntiens, of Ihe Belgian Artillery, and Lady Alice x Josephine, daughter of the seventh Earl of Abingdon. It is said of him that no one could look and act less like the conventional idea of a great financier and banker than Lord Norman. He was like nothing so much as a Velasquez portrait, with his thin sensitive hands, his high forehead, his keen, slightly ironical eyes and his well-trimmed, pointed, white beard. He did not drive to his bank in a big car. As often as not he used a subway.

He was a connoisseur of art and he was a close friend of Mr Augustus John, the portrait painter.