THE ROMANCE OF BANKING.

Otago Witness, Issue 2804, 11 December 1907, Page 81

THE ROMANCE OF BANKING.

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No. IV.

In the earty part of the eigbteenti" Century a tuibeitan parsm, driv«n iy force of circumstances from Bremen/ took tip his abode i»i London.- This man was H«rr Francis Baring, „Bb Mb, John Jtanug, "became* a cloth mamfactorer in York, and •was so successful 'in his business that lie made a considerable fortune, which upon his death he left to- his four sobs, who continued to carry oh the business. Two of the song. ' John, and Franca, withdrew from the otd firm, and entering iato partnership started in London as softgoods merchant©- .Success attended this new firm, .and in the course of time John, having made a large competency, retired, leaving his. brother Francis sole proprietor of the business. A few years later Francis wound up the old business and commenced banking ' operations. It is interesting to observe how frequently members of families achieve success in whatever line of business they enter. Francis Baring, who had been a manufacturer, then a merchant, and then a banker, was in all phenomenally successful. ,In his new career as a banker the oame measure of success attended* his efforts as had attended his operations in other spheres. With wonderful- intuition, he seemed to touch only those things which turned outwell. In the early days of his banking work he speculated largely in Government loans, and acquired such large holdings that he attracted the attention of Lord Shelbarne, the Prime Minister, with whom .he did considerable business on behalf of the Government. William Pitt, the next, Prime Minister, -considered it very desirable to keep in touch with Baring, and as an earnest of that desire conferred on him a> baronetcy. Sir Francis Baring,, recognised by almost everyone as on 3 of the ,most influential .financial men of the day, died ,afe the age of 70, leaving a fortune of bo less than two millions sterling. . Sir Francis Baring possessed * all the attributes to ensure success — he was clear-sighted, courageous, and persevering, and above all he was a man of more than ordinary probity. By his marriage with the niece of the then Archbishop of Canterbury he had five sons, three of whom — Thomas, Alexander, and ■Henry — succeeded to the banking business. Its high reputation, influence, and wealth were magnificent factors which were in- i valuable to these sons, and aided them considerably in the work that devolved upon tibem. Thomas, woo succeeded to the baronetcy, withdrew from the firm under the impression that a^oaxonet was somewhat out of place in a commercial undertaking. Henry Baring being a pronounced gambler, and having in conse- ' quence brought adverse comment upon the firm, was induced to retire, thus leaving Alexander Baring the sole proprietor. To his already large fortune was added that of his wife^ the daughter of Mr William Bingham, one of the richest Americans of his day.' From the moment he assumed control t>f the business Alexander Baring entered into monetary operations on the most extensive scale, and displayed even j greater acumen and ability than his father, the founder of the house. He became a political and national power. He almost held the destinies of certain nations in ihis hands by virtue of his immense wealth and the magnitude of his financial operations. He lived in an age when money lad even greater power than it has today — when it was possible for a dynasty *x> be wiped out of existence owing to its Smpecuniosity. As an instance of* his power and influence, he was able from his own resources to free France from the result of the occupation of Ruf6Jan. Prussian, and Austrian armies by the loan of over a -million pounds. The power money is apparent everywhere, but perliaps nowhere is it more so than in the complications of international life. Its circulation is the -determining element of onV social, political, and commercial ex- 1 astence. ' TbM splendid piece of international financing on the part of Alexander •Baring elicited the remark from Due de {Richelieu -that there were six , great Powers in !Europe — " England, France, Buffiia, Austria, Prussia, and Baring Beat." As a national sequence to the

vast political influence he exercised, Mr Alexander Baring was raised to the peerage, and became Lord Ashburton. Upon his death the business descended to. his Yfoar sons. Mr Francis Baring, his second,. ! j30.h.. toofc control of the banking business,. ::atjd"*in'that; capacity into- some . gigantic: land sDecn&tioEst.^Qne of -these ventures was ..the .purchase of, the whole. ' Of the ; territory soixDnnding the island' j arpon which jthe ..«ity* of /Mexico now islands. By this deal he. ..became Remaster, of t£e. capital -of a gaeat country, ; the value of, which was immense. The . -speculation was' of such hutge proportions , that the other members, of the firm- became thoroughly scared about it, and after considerable trouble got rid of what ,they considered a mad purchase. Mad a? it appeared to them then, it has since •' S^^ sanity and' shrewdness of Mr »Fjs»icia Baring. Had the Barings retained t poesessien of this vast property it is not ' unreasonable- to- 'imagine that many of ' tfee dark and. tragic days of .Mexico might ' nave be*>n sared. By the death of his ufcler brother Mr Francis Baring became Lord AshSorton, and retired from the firm,' the active con-. trol>of the business then devolving upon | his cousin, Mr Thomas Baring, who be- ■ came Chancellor of the Exchequer in Lord I Melbourne's Ministry. Under ais mani agement the firm continued to prosper and to extend its operations, while the Baring , fajnilv became identified very largely with the Hooee of Commons, five of them ~ being- members of that House and one being a member of the House of Lords. < Tne power, wealth, and influence of this great banking . boose phenomenal, and remained no until that unhappy epi- ' sod» in its career some few yew* ago ' brought disaster to it. After * splendid career extending orer a period oi about a. century and a-half this fine old firm «uk to grief owing- to injudicious venftusesjn foreign parts. There axe tew I financial houses, with so fine a record of 1 reputable and able management as that ! of Baring Bros. . It is when reading the ifiatory of these ;o|d banking- houses that one- realises the momentous influence they exercise over the social ,zpd commercial event* of the times, and one may well wonder how they auaped the many pitfalls -tfticn daring tinse events must have surrounded them. The times demanded a clear head, a conxacporo resolution, and integrity of vthe highest class 4>n the part of our bankers, and if in the past two centuries there have been instance* where those characteristics did not distinguish all" financial houses, there are numerous instances where they abounded.