Old and New London Part 67

The losses of the Bank are considerable. In 1820 no fewer than 352 persons were convicted, at a great expense, of forging small notes. In 1832 the yearly losses of the Bank from forgeries on the public funds were upwards of 40,000.

It is said that in the large room of the Bank a quarter of a million sovereigns will sometimes change hands in the course of the day. The entire amount of money turned over on an average in the day has been estimated as low as 2,000,000, and as high as 2,500,000. At a rough guess, the number of persons who receive dividends on the first day of every half year exceeds 100,000, and the sum paid away has been estimated at 500,000.

The number of clerks in the Bank of England was computed, in 1837, at 900; the engravers and bank-note printers at thirty-eight. The salaries vary from 700 per annum to 75, and the amount paid to the servants of the entire establishment, about 1,000, upwards of 200,000. Some years ago the proprietors met four times a year. Three directors sat daily in the Bank parlour. On Wednesday a Court of Directors sat to decide on London applications for discount, and on Thursdays the whole court met to consider all notes exceeding 2,000. The directors, twenty-four, exclusive of the Governor and Deputy-Governor, decide by majority all matters of importance.

[Ill.u.s.tration: THE CHURCH OF ST. BENET FINK.]

The Bank of England (says Dodsley's excellent and well-written "Guide to London," 1761) is a n.o.ble edifice situated at the east of St.

Christopher's Church, near the west end of Threadneedle Street. The front next the street is about 80 feet in length, and is of the Ionic order, raised on a rustic bas.e.m.e.nt, and is of a good style. Through this you pa.s.s into the courtyard, in which is the hall. This is one of the Corinthian order, and in the middle is a pediment. The top of the building is adorned with a bal.u.s.trade and handsome vases, and in the face of the above pediment is engraved in relievo the Company's seal, Britannia sitting with her shield and spear, and at her feet a cornucopia pouring out fruit. The hall, which is in this last building, is 79 feet in length and 40 in breadth; it is wainscoted about 8 feet high, has a fine fretwork ceiling, and is adorned with a statue of King William III., which stands in a niche at the upper end, on the pedestal of which is the following inscription in Latin--in English, thus:--

"For restoring efficiency to the Laws, Authority to the Courts of Justice, Dignity to the Parliament, To all his subjects their Religion and Liberties, And confirming them to Posterity, By the succession of the Ill.u.s.trious House of Hanover To the British Throne: To the best of Princes, William the Third.

Founder of the Bank, This Corporation, from a sense of Grat.i.tude, Has erected this Statue, And dedicated it to his memory, In the Year of our Lord MDCCx.x.xIV., And the first year of this Building."

Further backward is another quadrangle, with an arcade on the east and west sides of it; and on the north side is the accountant's office, which is 60 feet long and 28 feet broad. Over this, and the other sides of the quadrangle, are handsome apartments, with a fine staircase adorned with fretwork; and under are large vaults, that have strong walls and iron gates, for the preservation of the cash. The back entrance from Bartholomew Lane is by a grand gateway, which opens into a commodious and s.p.a.cious courtyard for coaches or wagons, that frequently come loaded with gold and silver bullion; and in the room fronting the gate the transfer-office is kept.

[Ill.u.s.tration: COURT OF THE BANK OF ENGLAND (_see page 470_).]

The entablature rests on fluted Corinthian columns, supporting statues, which indicate the four quarters of the globe. The intercolumniations are ornamented by allegories representing the Thames and the Ganges, executed by Thomas Banks, Academician, the roses on the vaulting of the arch being copied from the Temple of Mars the Avenger, at Rome.

On the death of Sir John Soane, in 1837, Mr. c.o.c.kerell was chosen to succeed him in his important position. The style of this gentleman, in the office he designed for the payment of dividend warrants, now employed as the private drawing-office, is very different to the erections of his predecessor. The taste which produced the elaborate and exquisite ornaments in this room is in strong contrast to the severe simplicity of the works of Sir John Soane.

Stow, speaking of St. Christopher's, the old church removed when the Bank was built, says, "Towards the Stokes Market is the parish church of St. Christopher, but re-edified of new; for Richard Sh.o.r.e, one of the sheriffes, 1506, gave money towards the building of the steeple."

Richard at Lane was collated to this living in the year 1368. "Having seen and observed the said parish church of St. Christopher, with all the gravestones and monuments therein, and finding a faire tombe of touch, wherein lyeth the body of Robert Thorne, Merchant Taylor and a batchelor, buried, having given by his testament in charity 4,445 pounds to pious uses; then looking for some such memory, as might adorne and beautifie the name of another famous batchelor, Mr. John Kendricke; and found none, but only his hatchments and banners." Many of the Houblons were buried in this church.

"The court-room of the Bank," says Francis, "is a n.o.ble apartment, by Sir Robert Taylor, of the Composite order, about 60 feet long and 31 feet 6 inches wide, with large Venetian windows on the south, overlooking that which was formerly the churchyard of St. Christopher.

The north side is remarkable for three exquisite chimney-pieces of statuary marble, the centre being the most magnificent. The east and west are distinguished by columns detached from the walls, supporting beautiful arches, which again support a ceiling rich with ornament. The west leads by folding doors to an elegant octagonal committee-room, with a fine marble chimney-piece. The Governor's room is square, with various paintings, one of which is a portrait of William III. in armour, an intersected ceiling, and semi-circular windows. This chimney-piece is also of statuary marble; and on the wall is a fine painting, by Marlow, of the Bank, Bank Buildings, Cornhill, and Royal Exchange. An ante-room contains portraits of Mr. Abraham Newland and another of the old cashiers, taken as a testimony of the appreciation of the directors. In the waiting-room are two busts, by Nollekens, of Charles James Fox and William Pitt. The original Rotunda, by Sir Robert Taylor, was roofed in with timber; but when a survey was made, in 1794, it was found advisable to take it down; and in the ensuing year the present Rotunda was built, under the superintendence of Sir John Soane. It measures 57 feet in diameter and about the same in height to the lower part of the lantern.

It is formed of incombustible materials, as are all the offices erected under the care of Sir John Soane. For many years this place was a scene of constant confusion, caused by the presence of the stockbrokers and jobbers. In 1838 this annoyance was abolished, the occupants were ejected from the Rotunda, and the s.p.a.ce employed in cashing the dividend-warrants of the fundholders. The offices appropriated to the management of the various stocks are all close to or branch out from the Rotunda. The dividends are paid in two rooms devoted to that purpose, and the transfers are kept separate. They are arranged in books, under the various letters of the alphabet, containing the names of the proprietors and the particulars of their property. Some of the stock-offices were originally constructed by Sir Robert Taylor, but it has been found necessary to make great alterations, and most of them are designed from some cla.s.sical model; thus the Three per Cent. Consol office, which, however, was built by Sir John Soane, is taken from the ancient Roman baths, and is 89 feet 9 inches in length and 50 feet in breadth. The chief cashier's office, an elegant and s.p.a.cious apartment, is built after the style of the Temple of the Sun and Moon at Rome, and measures 45 feet by 30.

"The fine court which leads into Lothbury presents a magnificent display of Greek and Roman architecture. The buildings on the east and west sides are nearly hidden by open screens of stone, consisting of a lofty entablature, surmounted by vases, and resting on columns of the Corinthian order, the bases of which rest on a double flight of steps.

This part of the edifice was copied from the beautiful temple of the Sybils, near Tivoli. A n.o.ble arch, after the model of the triumphal arch of Constantine, at Rome, forms the entrance into the bullion yard."

The old Clearing House of 1821 is thus described:--"In a large room is a table, with as numerous drawers as there are City bankers, with the name of each banker on his drawer, having an aperture to introduce the cheque upon him, whereof he retains the key.

"A clerk going with a charge of 99,000, perhaps, upon all the other bankers, puts the cheques through their respective apertures into their drawers at three o'clock. He returns at four, unlocks his own drawer, and finds the others have collectively put into his drawer drafts upon him to the amount, say, of 100,000; consequently he has 1,000, the difference, to pay. He searches for another, who has a larger balance to receive, and gives him a memorandum for this 1,000; he, for another; so that it settles with two, who frequently, with a very few thousands in bank-notes, settle millions bought and sold daily in London, without the immense repet.i.tion of receipts and payments that would otherwise ensue, or the immense increase of circulating medium that would be otherwise necessary."

The ill.u.s.tration on page 475 represents the appearance of the present Clearing House. The business done at this establishment daily is enormous, amounting to something like 150,000,000 each day.

"All the sovereigns," says Mr. Wills, "returned from the banking-houses are consigned to a secluded cellar; and, when you enter it, you will possibly fancy yourself on the premises of a clockmaker who works by steam. Your attention is speedily concentrated on a small bra.s.s box, not larger than an eight-day pendule, the works of which are impelled by steam. This is a self-acting weighing machine, which, with unerring precision, tells which sovereigns are of standard weight, and which are light, and of its own accord separates the one from the other. Imagine a long trough or spout--half a tube that has been split into two sections--of such a semi-circ.u.mference as holds sovereigns edgeways, and of sufficient length to allow of two hundred of them to rest in that position one against another. The trough thus charged is fixed slopingly upon the machine, over a little table, as big as the plate of an ordinary sovereign-balance. The coin nearest to the Lilliputian platform drops upon it, being pushed forward by the weight of those behind. Its own weight presses the table down; but how far down? Upon that hangs the whole merit and discriminating power of the machine. At the back and on each side of this small table, two little hammers move by steam backwards and forwards at different elevations. If the sovereign be full weight, down sinks the table too low for the higher hammer to hit it, but the lower one strikes the edge, and off the sovereign tumbles into a receiver to the left. The table pops up again, receiving, perhaps, a light sovereign, and the higher hammer, having always first strike, knocks it into a receiver to the right, time enough to escape its colleague, which, when it comes forward, has nothing to hit, and returns, to allow the table to be elevated again. In this way the reputation of thirty-three sovereigns is established or destroyed every minute. The light weights are taken to a clipping machine, slit at the rate of two hundred a minute, weighed in a lump, the balance of deficiency charged to the banker from whom they were received, and sent to the Mint to be re-coined. Those which have pa.s.sed muster are re-issued to the public. The inventor of this beautiful little detector was Mr. Cotton, a former Governor. The comparatively few sovereigns brought in by the general public are weighed in ordinary scales by the tellers."

The Bank water-mark--or, more properly, the wire-mark--is obtained by twisting wires to the desired form or design, and sticking them on the face of the mould; therefore the design is above the level face of the mould by the thickness of the wires it is composed of. Hence the pulp, in settling down on the mould, must of necessity be thinner on the wire design than on the other parts of the sheet. When the water has run off through the sieve-like face of the mould, the new-born sheet of paper is "couched," the mould gently but firmly pressed upon a blanket, to which the spongy sheet clings. Sizing is a subsequent process, and, when dry, the water-mark is plainly discernible, being, of course, transparent where the substance is thinnest. The paper is then dried, and made up into reams of 500 sheets each, ready for press. The water-mark in the notes of the Bank of England is secured to that establishment by virtue of a special Act of Parliament. It is scarcely necessary to inform the reader that imitation of anything whatever connected with a bank-note is an extremely unsafe experiment.

This curious sort of paper is unique. There is nothing like it in the world of sheets. Tested by the touch, it gives out a crisp, crackling, sharp music, which resounds from no other quires. To the eye it shows a colour belonging neither to blue-wove, nor yellow-wove, nor cream-laid, but a white, like no other white, either in paper and pulp. The three rough fringy edges are called the "deckelled" edges, being the natural boundary of the pulp when first moulded; the fourth is left smooth by the knife, which eventually cuts the two notes in twain. This paper is so thin that, when printed, there is much difficulty in making erasures; yet it is so strong, that "a water-leaf" (a leaf before the application of size) will support thirty-six pounds, and, with the addition of one grain of size, will hold half a hundredweight, without tearing. Yet the quant.i.ty of fibre of which it consists is no more than eighteen grains and a half.

Dividend day at the Bank has been admirably described, in the wittiest manner, by a modern essayist in _Household Words_:--"Another public creditor," says the writer, "appears in the shape of a drover, with a goad, who has run in to present his claim during his short visit from Ess.e.x. Near him are a lime-coloured labourer, from some wharf at Bankside, and a painter who has left his scaffolding in the neighbourhood during his dinner hour. Next come several widows--some florid, stout, and young; some lean, yellow, and careworn, followed by a gay-looking lady, in a showy dress, who may have obtained her share of the national debt in another way. An old man, attired in a stained, rusty, black suit, crawls in, supported by a long staff, like a weary pilgrim who has at last reached the golden Mecca. Those who are drawing money from the acc.u.mulation of their hard industry, or their patient self-denial, can be distinguished at a glance from those who are receiving the proceeds of unexpected and unearned legacies. The first have a faded, anxious, almost disappointed look, while the second are sprightly, laughing, and observant of their companions.

[Ill.u.s.tration: "JONATHAN'S." _From an Old Sketch._]

"Towards the hour of noon, on the first day of the quarterly payment, the crowd of national creditors becomes more dense, and is mixed up with substantial capitalists in high check neckties, double-breasted waistcoats, curly-rimmed hats, narrow trousers, and round-toed boots.

Parties of thin, limp, damp-smelling women, come in with mouldy umbrellas and long, chimney-cowl-shaped bonnets, made of greasy black silk, or threadbare black velvet--the worn-out fashions of a past generation. Some go about their business in confidential pairs; some in company with a trusted maid-servant as fossilised as themselves; some under the guidance of eager, ancient-looking girl-children; while some stand alone in corners, suspicious of help or observation. One national creditor is unwilling, not only that the visitors shall know what amount her country owes her, but also what particular funds she holds as security. She stands carelessly in the centre of the Warrant Office, privately scanning the letters and figures nailed all round the walls, which direct the applicant at what desk to apply; her long tunnel of a bonnet, while it conceals her face, moves with the guarded action of her head, like the tube of a telescope when the astronomer is searching for a lost planet. Some of these timid female creditors, when their little claim has been satisfied (for 1,000 in the Consols only produces 7 10s. a quarter), retire to an archway in the Rotunda, where there are two high-backed leathern chairs, behind the shelter of which, with a needle and thread, they st.i.tch the money into some secret part of their antiquated garments. The two private detective officers on duty generally watch these careful proceedings with amus.e.m.e.nt and interest, and are looked upon by the old fundholders and annuitants as highly dangerous and suspicious characters."

Among the curiosities shown to visitors are the Bank parlour, the counting-room, and the printing-room; the alb.u.ms containing original 1,000 notes, signed by various ill.u.s.trious persons; and the Bank-note library, now containing ninety million notes that have been cancelled during the last seven years. There is one note for a million sterling, and a note for 25 that had been out 111 years.

In the early part of the century, when "the Green Man," "the Lady in Black," and other oddities notorious for some peculiarity of dress, were well known in the City, the "White Lady of Threadneedle Street" was a daily visitor to the Bank of England. She was, it is said, the sister of a poor young clerk who had forged the signature to a transfer-warrant, and who was hung in 1809. She had been a needle-worker for an army contractor, and lived with her brother and an old aunt in Windmill Street, Finsbury. Her mind became affected at her brother's disgraceful death, and every day after, at noon, she used to cross the Rotunda to the pay-counter. Her one unvarying question was, "Is my brother, Mr.

Frederick, here to-day?" The invariable answer was, "No, miss, not to-day." She seldom remained above five minutes, and her last words always were, "Give my love to him when he returns. I will call to-morrow."

CHAPTER XLI.

THE STOCK EXCHANGE.

The Kingdom of Change Alley--A William III. Reuter--Stock Exchange Tricks--Bulls and Bears--Thomas Guy, the Hospital Founder--Sir John Barnard, the "Great Commoner"--Sampson Gideon, the famous Jew Broker--Alexander Fordyce--A cruel Quaker Criticism--Stockbrokers and Longevity--The Stock Exchange in 1795--The Money Articles in the London Papers--The Case of Benjamin Walsh, M.P.--The De Berenger Conspiracy--Lord Cochrane unjustly accused--"Ticket Pocketing"--System of Business at the Stock Exchange--"Popgun John"--Nathan Rothschild--Secrecy of his Operations--Rothschild outdone by Stratagem--Grotesque Sketch of Rothschild--Abraham Goldsmid--Vicissitudes of the Stock Exchange--The Spanish Panic of 1835--The Railway Mania--Ricardo's Golden Rules--A Clerical Intruder in Capel Court--Amus.e.m.e.nts of Stockbrokers--Laws of the Stock Exchange--The Pigeon Express--The "Alley Man"--Purchase of Stock--Eminent Members of the Stock Exchange.

The Royal Exchange, in the reign of William III., being found vexatiously thronged, the money-dealers, in 1698, betook themselves to Change Alley, then an unappropriated area. A writer of the period says:--"The centre of jobbing is in the kingdom of 'Change Alley. You may go over its limits in about a minute and a half. Stepping out of Jonathan's into the Alley, you turn your face full south; moving on a few paces, and then turning to the east, you advance to Garraway's; from thence, going out at the other door, you go on, still east, into Birchin Lane; and then, halting at the Sword-blade Bank, you immediately face to the north, enter Cornhill, visit two or three petty provinces there on your way to the west; and thus, having boxed your compa.s.s, and sailed round the stock-jobbing globe, you turn into Jonathan's again."

Sir Henry Furnese, a Bank director, was the Reuter of those times. He paid for constant despatches from Holland, Flanders, France, and Germany. His early intelligence of every battle, and especially of the fall of Namur, swelled his profits amazingly. King William gave him a diamond ring as a reward for early information; yet he condescended to fabricate news, and his plans for influencing the funds were probably the types of similar modern tricks. If Furnese wished to buy, his brokers looked gloomy; and, the alarm spread, completed their bargains.

In this manner prices were lowered four or five per cent. in a few hours. The Jew Medina, we are a.s.sured, granted Marlborough an annuity of 6,000 for permission to attend his campaigns, and amply repaid himself by the use of the early intelligence he obtained.

When, in 1715, says "Aleph," the Pretender landed in Scotland, after the dispersion of his forces, a carriage and six was seen in the road near Perth, apparently destined for London. Letters reached the metropolis announcing the capture of the discomfited Stuart; the funds rose, and a large profit was realised by the trick. Stock-jobbers must have been highly prosperous at that period, as a Quaker, named Quare, a watchmaker of celebrity, who had made a large fortune by money speculations, had for his guests at his daughter's wedding-feast the famous d.u.c.h.ess of Marlborough and the Princess of Wales, who attended with 300 quality visitors.

During the struggle between the old and new East India Companies, boroughs were sold openly in the Alley to their respective partisans; and in 1720 Parliamentary seats came to market there as commonly as lottery tickets. Towards the close of Anne's reign, a well-dressed horseman rode furiously down the Queen's Road, loudly proclaiming her Majesty's demise. The hoax answered, the funds falling with ominous alacrity; but it was observed, that while the Christian jobbers kept aloof, Sir Mana.s.seh Lopez and the Hebrew brokers bought readily at the reduced rate.

The following extracts from Cibber's play of _The Refusal; or, the Ladies' Philosophy_, produced in 1720, show the antiquity of the terms "bull" and "bear." This comedy abounds in allusions to the doings in 'Change Alley, and one of the characters, Sir Gilbert Wrangle, is a South Sea director:--

_Granger_ (_to Witling, who has been boasting of his gain_): And all this out of 'Change Alley?

_Witling:_ Every shilling, sir; all out of stocks, puts, bulls, shams, bears and bubbles.

And again:--

There (in the Alley) you'll see a duke dangling after a director; here a peer and a 'prentice haggling for an eighth; there a Jew and a parson making up differences; there a young woman of quality buying bears of a Quaker; and there an old one selling refusals to a lieutenant of grenadiers.

[Ill.u.s.tration: CAPEL COURT.]

The following is from an old paper, dated July 15th, 1773: "Yesterday the brokers and others at 'New Jonathan's' came to a resolution, that instead of its being called 'New Jonathan's,' it should be called 'The Stock Exchange,' which is to be wrote over the door. The brokers then collected sixpence each, and christened the House with punch."

One of the great stockbrokers of Queen Anne's reign was Thomas Guy, the founder of one of the n.o.blest hospitals in the world, who died in 1724.

He was the son of a lighterman, and for many years stood behind a counter and sold books. Acquiring a small amount of ready cash, he was tempted to employ it in Change Alley; it turned to excellent account, and soon led him to a far more profitable traffic in those tickets with which, from the time of Charles II., our seamen were remunerated. They were paid in paper, not readily convertible, and were forced to part with their wages at any discount which it pleased the money-lenders to fix. Guy made large purchases in these tickets at an immense reduction, and by such not very creditable means, with some windfalls during the South Sea agitation, he realised a fortune of 500,000. Half a million was then almost a fabulous sum, and it was constantly increasing, owing to his penurious habits. He died at the age of eighty-one, leaving by will 240,000 to the hospital which bears his name. His body lay in state at Mercers' Chapel, and was interred in the asylum he raised, where, ten years after his death, a statue was erected to his memory.

[Ill.u.s.tration: THE CLEARING HOUSE.]

Sir John Barnard, a great opponent of stockbrokers, proposed, in 1737, to reduce the interest on the National Debt from four to three per cent., the public being at liberty to receive their princ.i.p.al in full if they preferred. This antic.i.p.ation of a modern financial change was not adopted. At this period, 10,000,000 were held by foreigners in British funds. In 1750, the reduction from four to three per cent. interest on the funded debt was effected, and though much clamour followed, no reasonable ground for complaint was alleged, as the measure was very cautiously carried out. Sir John Barnard, the Peel of a bygone age, was commonly denominated the "great commoner." Of the stock-jobbers he always spoke with supreme contempt; in return, they hated him most cordially. On the money market it was not unusual to hear the merchants inquire, "What does Sir John say to this? What is Sir John's opinion?"

He refused the post of Chancellor of the Exchequer in 1746, and from the moment his statue was set up in Gresham's Exchange he would never enter the building, but carried on his monetary affairs outside. The Barnard blood still warms the veins of some of our wealthiest commercial magnates, since his son married the daughter of a capitalist, known in the City as "the great banker, Sir John Hankey."

Sampson Gideon, the famous Jew broker, died in 1762. Some of his shrewd sayings are preserved. Take a specimen: "Never grant a life annuity to an old woman; they wither, but they never die." If the proposed annuitant coughed, Gideon called out, "Ay, ay, you may cough, but it shan't save you six months' purchase!" In one of his dealings with Snow, a banker alluded to by Dean Swift, Snow lent Gideon 20,000. The "Forty-five" followed, and the banker forwarded a whining epistle to him speaking of stoppage, bankruptcy, and concluding the letter with a pa.s.sionate request for his money. Gideon procured 21,000 bank-notes, rolled them round a phial of hartshorn, and thus mockingly repaid the loan. Gideon's fortune was made by the advance of the rebels towards London. Stocks fell awfully, but hastening to "Jonathan's," he bought all in the market, spending all his cash, and pledging his name for more. The Pretender retreated, and the sagacious Hebrew became a millionaire. Mr. Gideon had a sovereign contempt for fine clothes; an essayist of the day writes, "Neither Guy nor Gideon ever regarded dress." He educated his children in the Christian faith; "but," said he, "I'm too old to change." "Gideon is dead," says one of his biographers, "worth more than the whole land of Canaan. He has left the reversion of all his milk and honey--after his son and daughter, and their children--to the Duke of Devonshire, without insisting on his a.s.suming his name, or being circ.u.mcised!" His views must have been liberal, for he left a legacy of 2,000 to the Sons of the Clergy, and of 1,000 to the London Hospital. He also gave 1,000 to the synagogue, on condition of having his remains interred in the Jewish burying-place.