Maberly Phillips.

A history of banks, bankers, & banking in Northumberland, Durham, and North Yorkshire, illustrating the commercial development of the north of England, from 1755 to 1894, with numerous portraits, facsimiles of notes, signatures, documents, &c online

. (page 19 of 57)
Online LibraryMaberly PhillipsA history of banks, bankers, & banking in Northumberland, Durham, and North Yorkshire, illustrating the commercial development of the north of England, from 1755 to 1894, with numerous portraits, facsimiles of notes, signatures, documents, &c → online text (page 19 of 57)
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his arguments are brought forward in a most lucid manner, conclusively shows
the advantages of the contemplated railway, and the probability of the substantial
return that investors may reasonably anticipate from such an undertaking.
The railway scheme was carried at the meeting and a committee appointed to
promote the matter, the names of Thomas, Edward, and Jonathan Backhouse, Jun.,



[154]



appearing upon the list, the last-named gentleman being appointed treasurer.
The matter was carried forward with such energy that the first rail was laid May
23rd, 1 82 1, and the Stockton and Darhngton Railway, the first in the kingdom.,
opened September 27th, 1825. '

Mr. Jonathan Backhouse, jun., lived until 1842, by which time he must have
seen rapid strides in the railway system.

Edmund Backhouse, the present senior partner, was born November 28th,
1824, and educated at Grove House, Tottenham, London, He acquired his first
knowledge of banking in the house of his relatives, Messrs. Gurney of Norwich.
He subsequently returned to Darlington and took an active part in the management
of the bank's affairs. In September, 1848, he married Juha Mary, daughter of
Charles Fox, Esq., of Trebah, near Falmouth. For many years Mr. Backhouse
has been a magistrate for the North Riding of York and for the County of
Durham. By the Reform Bill of 1867 Darlington was granted a representative
in the House of Commons, and Mr. Backhouse was most fittingly chosen as the
first member. He sat for the town from 1868 to 1885.

The other partners, as will be seen on the pedigree sheet, are James Edward
Backhouse, Jonathan Edmund Backhouse, and Edward Backhouse Mounsey.



BACKHOUSE, J., & 00. (bankees, darlington and beanches), Balance-sheet, 31st December, 1893.

LIABILITIES.

Current and deposit accounts . . . . . . . . . . £2,993,410 2 9



Drafts and acceptances outstanding . .
Notes in circulation

Liabilities to the public

Partners' and sundry accounts, including rebate on bills

Capital and reserve

Contingent liability in respect of the Baring Guarantee Fund, £2,500.



ASSETS.

Cash at head office and branches and with bankers, £641,399 2s. ; cash at

call and short notice, £350,000 . .
Investment — British and Indian Government treasury bills and exchequer

bonds, £615,643 2s. 3d. ; consols (£126,250), English railway

debenture stocks, and bonds of, and guaranteed by, the Indian

Government, £225,157 7s. 5d. . .

(£20,000 consols are lodged as security for County Council Treasurerships.)
London Brokers' bills discounted
Advances to customers, bills discounted and loans
Bank premises at head office and branches, with adjacent properties



36,796 8

45,375

3,075,581 3 5

114,438 7

250,000

£3,440,019 4



£991,399 2



840,800 9 8



181,914 15

1,333,030 5

92,874 12



£3,440,019 4



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[155]



Balder, Sbafto, ©rmston, Cutbbert, S. Xamb, iRewcastie-upon-u^ne.

TYNE BANK.

Founded 1777. Partners. Declined Business 1816.



^ohn Baker.
Thomas Shafto.
Jonathan Ormston.
William Cuthbert.



Joseph Lamb.
George Baker.
R. N. Lynn.
John Hedley.



Sir Wm. Loraine.
Sir Chas. Loraine.
— Pearson.
Thos. Maude.



THE Newcastle Chronicle of March 22nd, 1777, announces :— " We desire to
inform the pubhc that we have opened a BANK (called the " TYNE BANK " )
near the Bridge End, in Newcastle, for the transacting of the Banking
Business in all its Branches. — John Baker, Thomas Shafto, Jonathan Ormston,
William Cuthbert, Joseph Lamb."

Like all bankers of their day, they issued notes. One for ^5 here produced
is an early example.





X V ^^^ ///^' .-^v^' /^/^f^/trn ^/'///r ////



:/'iiDe



t



i' '//^^'B-6




/j/r////i/a//7^^^^n



A very few months after their opening they were troubled with the forgery
of their notes. On October 4th, 1777, a notice appeared in a Newcastle paper
which stated : —

" The forgeries lately committed upon the Tyne Bank in the Five Pound notes, we are informed has been
attended with no inconvenience to the Public, as that Bank has paid every forged note which has been
presented, and they are now issuing five pound notes from a beautiful new plate, very different from
the old one. The forged notes discovered to be uttered do not amount to one himdred pounds ; and as



[^56]

the most diligent enquiries have been made at every place within the circulation of these notes, it is
certain that there are few, if any, not got in."

An unfortunate individual was arrested in Westmoreland on suspicion of
uttering some of these forged notes, but upon the case being investigated, he was
found "not guilty," and honourably acquitted.

The Tyne Bank is named in the Newcastle Directory of 1778 as occupying
premises " in the Close near the Tyne Bridge."

The Newcastle Chronicle for August 30th, 1783, has the following adver-
tisement : —

" Bank Notes Lost or Stolen. — Whereas on the 14th December last a letter was sent to Mr. Houey,
directed to Mr. Nathaniel Handasyde, Wooler, containing Three hundred Pounds in Five Pound Tyne
Bank notes, No. E2401 progressing to and with E2460 dated 18th October, 1782, signed Joseph Lamb,
which have not yet appeared.

It is requested that the Public will be particularly attentive to any of the above numbers if
offered in Payment, and give immediate notice to Mr. Nathaniel Handasyde, Wooler, or to the Tyne
Bank, Newcastle, so as it may be discovered by whom they are circulated."

It is reported that the original partnership only lasted for a few years, when
material changes occurred. This would probably be at the death of John Baker
in 1784. On July 30th, 1788, a letter sent by the "Committee of Bankers" is
signed " Baker, Hedley, & Co." This must have been George Baker and other
partners. At the meetings of the Bankers' Association in 1790-2, the Tyne Bank
is represented by Mr. Lynn and Mr. Lamb. In 1790 they address Messrs.
Lambton & Co. regarding the payments of their weekly balance, and sign their
letter " Baker, Hedley, & Co."

The Directory for 1787 says : — "Tyne Bank — North end of Tyne Bridge"
— and in 1790 we find, " Tyne Bank, Baker, Hedley, & Co.," at the same address.
In 1 79 1 they were receiving subscriptions for the abolition of slavery.
Little beyond these announcements is known of their business engagements,
until the panic caused by the scarcity of gold in 1793 brought them before the
pubhc. On the 8th of April in that year, they, with the rest of the banks in the
town failed to open their doors, and for some little time had to suspend payment.
At the memorable meeting held on the 8th of April, (see page 48) it was
unanimously resolved that the notes of this bank be accepted as usual, a great
number of signatures being affixed to a document pledging support ; and a
committee appointed to investigate its affairs duly reported that they found " a
stability beyond our most sanguine expectations," and generally urged patience
and forbearance. Cash payment was resumed on Saturday, April 20th. After



[157]

the panic, Baker, Hedley, & Co. write to Messrs. Lambton & Co. suggesting the
amalgamation of the two firms. Messrs. Lambton's answer (see Lambton & Co.)
is addressed to George Baker, Esq., and Robert Newton Lynn, Esq.

Some time prior to 1795, Sir William Loraine joined the bank. In that year
the Tyne Bank is recorded as "at the Foot of the Flesh Market," trading as
" Sir William Loraine and partners."

In 1797 another panic occurred which caused all the banks in the town again
to suspend payment. Public meetings were held and guarantees given very much
in the same way as in 1793, and cash payments were soon resumed. The partners
in the "Tyne" then appear to be Sir Wilham Loraine, Baker, Pearson, and
Maude.

The fortunes of this house are a blank until a further panic in 1803 brings
them once more before the public, when the programme of 1793 and 1797 was
again enacted.

In 181 1 their notes were signed " For Sir C. Loraine, Self, Pearson, Maude,
Loraine, & Co. Geo. Baker." Three years later the signature is " For Sir Chas.
Loraine, Bt., Baker, Pearson, Maude, Loraine & Co. Wm. Loraine." In 181 5,
the failure of two local banks called forth another guarantee that the notes of this
bank would be accepted. In the following year the firm suddenly declined
business. The Newcastle Chronicle of July 27th, 18 16, says : —

" On Tuesday last, a strong sensation was produced in the town and neighbourhood by the unexpected
event of Sir Chas. Loraine, Bart., Baker, & Co., announcing to their connexion that it was their
intention to decline the business of Bankers." The following advertisements appeared : —

Newcastle-upon-Tyne, July 23rd, 1816.
" Sir Chas. Loraine, Bart., Baker, & Co., feeling the Inconvenience arising from the present agitated
State of the Public Mind respecting the Business of Bankers have determined to decline that Business.
At the same Time they assure their Friends and the Public, that the Funds of their Bank are fully
adequate to meet every Demand without requiring the Aid of the real Estates of the Partners ; they,
therefore, request the Indulgence of the Public, for a reasonable time, to enable them to make the
necessary Arrangements for the Payment of every Claim upon them."

Newcastle, 24th July, 1816.
" At the Eequest of Sir Chas. Loraine, Bart., & Co., we have this Day investigated the affairs of their
Bank, and are satisfied of their stability. We also have to observe that it does not appear to us that any
of the Partners have been engaged in any Trade or Speculation whatever ; but the Funds of the Bank
have been solely appropriated to the Banking business, in accommodating the Commercial and
Agricultural Interests. Wm. Clark, Wm. Thomas, Joseph Lamb, Wm. Armstrong."'

The issue of these notices evidently caused a run upon the other banks, and
on the same day a notice was published with signatures attached of those who



[158]



£4,000


S. Hodson, By well


.. £3,000


3,000


Nathaniel Clayton, Chesters . .


. . 2,000


5,000


Jacob Maude,' Sellaby. .


. . 5,000


5,000


William Ogle, jun., Causey Park


. . 3,000


5,000


H. Lamb, Ryton


. . 3,000


5,000


John Hunter, Hermitage


. . 3,000


3,000


T. E. Headlam, Gateshead


. . 2,000


2,000


William Burrell, Broome Park


. . 2,000


1,000


George Waldie, Hendersyde Park


. . 5,000


2,000


Charles Bacon, Styford . .


. . 3,000


2,000


W. Trevelyan, Netherwitton . .


. . 3,000


3,000


J. R. Fenwick, Durham


. . 1,000


1,000







would take their notes, while, to allay the public excitement as far as possible,
the following announcement was made : —

" Sir Chas. Loraine, Bart., Baker, & Co., Bankers, having signified to their Friends and the Public
their Determination to decline the Banking Business, We the undersigned do hereby severally under-
take and agree to guarantee the Payments of their Bank to the extent of the Sum set opposite to
our respective Names."

Charles M. L. Monck, Belsay Castle

George Silvertop, Minster Acres

Dixon Brown, Benton . .

Wm. Clark, Benton House

Charles John Brandling, Gosf orth House 5,000

John Walker, Wall's End

Henry Witham, Lartington . .

William Cuthbert, Benwell

George Gibson, Stagshaw

Joseph Lamb, Lemington

Edmund Craster, Preston

Shaf to Craster, Craster . .

C. J. Clavering, Riddlehamhope

How the liabilities of the firm were met, I have no record. A William
Loraine of Newcastle-upon-Tyne, banker and coal-merchant, became bankrupt,
April 30th, 1 84 1. Probably he was one of the partners in the Tyne Bank. The
marriage of one of their staff is thus recorded : — " Mr. Walton, clerk in the Tyne
Bank, married to Miss Pollard, daughter of the late Mr. Pollard, flax-merchant,
January 19th, 1788."

JOHN BAKER.— One of the family of Bakers of Crook and Elemore,
CO. Durham. He married on July 3rd, 1762, Miss Read of Hertford. In 1778
besides being a banker he was carrying on business in the Broad Chare, Newcastle,
as a coal fitter, and was an alderman of the town. In 1760 he was chosen Sheriff,
and in the same year he erected "Tynemouth House" on the green at Tynemouth,
as is testified by the date over the door.

In 1768 Mr. Baker was chosen Mayor of Newcastle-upon-Tyne, and again
in 1776 the same honour was conferred upon him. He was twice married, but
he left no issue. He died Saturday, February 7th, 1784, and on the nth his
remains were interred with great pomp in All Saints' Church. "The following
gentlemen were supporters of the pall : — Charles Atkinson, Esq. ; J. C. Blackett,
Esq. ; Edward Mosley, Esq. ; Aubone Surtees, Esq. ; Francis Forster, Esq. ; Hugh
Hornby, Esq. ; John Hedley, Esq. ; and William Gibson, Esq." These pall bearers
are worthy of note. They were all aldermen except Mr. Gibson, and several
of them were bankers.



[159]

ROBERT ORMSTON.— His father, Jonathan Ormston, was a member of
the Society of Friends. In 1773, Ormston and Lamb were in business in the Close.
About this time,

" A man, who had lodged a few Days at a Public house, on the Keyside went into Messrs.
Ormston's and Lamb's shop in the Close, under Pretence of purchasing some Goods for which he
tendered a Five Pound Scotch Bank-note, but Mr. Lamb suspecting the same to be forged desired him
to wait a little in his Shop until he stepped out to speak to a Friend, and immediately communicated
his suspicion to a magistrate, who ordered an officer to apprehend him, but the stranger suspecting a
Discovery, thought proper to walk oS before the officer or Mr. Lamb got to the Shop."

The Newcastle Directory for 1778 announces : — "Ormston and Lamb, soap
makers. Close (middle)." Robert Ormston, born 1748, was of Healey Hall and
No. 5 Saville Row, Newcastle, and died 8th October, 1836, aged 88. His wife
Catherine, died May i6th, 1847, aged 92. His sister Ann (daughter of Jonathan)
married George Waldie of Kingswood on the river Allen and Forth House,
Newcastle. Their daughter Jane, bom 1792, spent the early years of her life
amongst her mother's relations, her first five years being passed at Tynemouth.
She became noted as an artist and authoress. In 1821 she married Capt. George
A. Watts, R.N., and resided at Haughton Grange near Darlington. She died July
6th, 1826. Her accomplishments were sufficiently noted to gain her a place in
" Me7i of Mark 'twixt Tyne and Tweed."

Robert Ormston (2) son of the above, was of Healey Hall and 5, Saville Row,
where he died in 1882 at an advanced age. The house and furniture were left to
his relative Mr. R. O. Lamb. I am informed that in one of the attics, at the time
of his death, were many of the early books of the old " Tyne Bank." They were
left to his executors, the late Mr. Aldam of Frickley Hall and Sir George Waldie
Griffith, who after duly examining the books and papers, ordered their destruction.
Mr. Ormston in his youth had some banking training to fit him for a mercantile
profession.*

WILLIAM CUTHBERT.— It is difficult to identify this gentleman with
certainty. In Mr. Welford's book upon " St. Nicholas' Church, Newcastle-on-Tyne,
its Monuments and Tombstones," an account is given of a tablet erected by John
Cuthbert to the memory of John William Cuthbert, both of whom had been
barristers-at-law, and Recorders of the town, but the dates are too early to admit
of their being concerned in the Tyne Bank.

The Newcastle Directory for 1778 has — " William Cuthberts, Attorney-at-Law,
Pudding Chair." A correspondent favours me with a tragic account of the banker.

* For many years this family possessed two letters written by Oliver Cromwell on the eve of the battle of
Dunbar. One is dated " Dunbar 2d Sep 1650 " and addressed to " Sir Arthur Haselrig at Newcastle or
elsewhere." At this time Sir Arthur was Governor of the town. The letters were first mentioned by Brand in
his " History of Newcastle-upon-Tyne," and subsequently quoted by Thomas Carlyle in "Cromwell's Letters
and Speeches."



[^

He writes : — " The Cuthbert of that day was a very clever man — a great lawyer,
but owing to some little row in the Back Parlour of the Bank, he shot himself."

JOSEPH LAMB. — He was born in 1732, and was descended from the younger
branch of the Lambs of Seat Hill, Cumberland. He married, first, the heiress of the
Humble family of Ryton, by whom he had two daughters who died in infancy ;
secondly, Sarah, daughter of Warren Maude of Sunnyside, Sunderland. He had
estates at West Denton, Northumberland, and Temmon, Cumberland. His son,
Joseph Lamb of West Denton and Temmon, J.P. and D.L., born nth November,
1 78 1, married May 4th, 1824, Ameha Mary, daughter of Joseph Westbrook
Michael, of Stamford, Lincolnshire. He died 8th October, 1859. Several children
were the issue of this marriage ; their fifth son Robert Ormston Lamb, born 5th
November, 1836, J.P., Co. Durham, is one of the principal coal owners of
the north of England, and chairman of the coal trade. Mr. F. H. Lamb, for
many years master of the Newcastle and Gateshead Harriers, is of the same
family.

JOHN HEDLEY.— Sheriff of Newcastle, 1766-7 ; Mayor, 1777-8 and 1788-9.
Elected an Alderman 1777 in place of Sir Walter Blackett. In Newcastle Directory
for 1787, we find — "JohnHedley, Esq., fitter; Office, Trinity Lane, Quayside."
He had been of the Common Council long before the Newcastle Chronicle, of March
8th, 1777, announced his appointment as Alderman, adding, "The prisoners for
debt in Newgate return their most humble thanks to John Hedley, Esq., for two
guineas, on account of his being made an Alderman of this town." He died
January 3rd, 1797.

Sir WILLIAM LORAINE.— The family were first of Durham and then of
Kirkharle in Northumberland. The tourist of to-day may still see a stone in the
glebe ground, a little west of the present way from the mansion house to the
church of Kirkharle, which bears the following inscription : — " This stone was set
up in the place of an old one by Sir William Loraine, Bart., in 1728, in memory
of Robert Loraine, his ancestor, who was barbarously murdered in this place
by the Scots in 1483, for his good service to his country against their thefts and
robbery, as he was returning from the church alone, where he had been at his
private devotions." Interesting accounts of the family will be found in " Men
of Mark 'Twixt Tyne and Tweed."

GEORGE BAKER.— He was the only son of George and Judith Baker of
Elemore, and was born in 1753. He succeeded to his father's estates in 1774, and



l^

appears to have entered the bank after the death of John Baker in 1 784. He has
been styled " a genuine representative of the hunting and cockfighting squires of
the last century." The following conversation is said to have passed between him
and Mr. Surtees the historian : — " Mr. Baker : ' I wonder Mr. Surtees, why you
spend so much money and time over a History of Durham.' ' I wonder Mr. Baker/
was the reply, ' why you spend so much money and time in following a pack of
hounds after a poor hare.'" In 1815 he was High Sheriff of Northumberland.
Mr. Baker died May 15th, 1837, in his 84th year. According to directions left in
his will he was buried in Pittington Church-yard and not in the family vault
within the church. The following inscription was placed upon his tombstone : —
" Here lies the last of the George Bakers of Elemore Hall, in the County of
Durham."

THOMAS MAUDE. — He belonged to a family who were related to various
north-country bankers. His grandfather, Warren Maude of Sunnyside was a
noted coal fitter, whose daughters are commemorated in local song.



" We'll all away to Sunnyside,
To Sunnyside, to Sunnyside ;
We'll all away to Sunnyside
To see the fitter's maidens."



' Hey, skipper, our fitter
Haes some bonnie maidens ;
We'll all away to Sunnyside
To see our fitter's maidens."



One of the "bonnie maidens" became the second wife of Joseph Lamb, an
original partner in the Tyne Bank. It was probably through this marriage that
Thomas Maude subsequently became a partner. His father, Thomas (second son of
Warren Maude), bom 1733, settled in Newcastle, and on January nth, 1766, was
elected Master of the Trinity House. He married in 1753, Margaret, daughter of
John Holmes of Kendal, who died while mayor of that town. Their son Thomas
Maude, afterwards a partner in the Tyne Bank, was born in 1 770, and married in 1 796,
Jane, daughter of Henry Roxby of Clapham Rise, Surrey, and niece of Sir James
Sanderson, Bart., by whom he had three sons, (i) Rev. Henry Roxby Maude,
LL.B. ; (2) Thomas Maude, M.A., of the Middle Temple, author of a well-known
poetical work ; and (3) James Maude. He was the nephew of Joseph Lamb,
and by his marriage became connected with the Burdon family. Richard, son of Sir
Thomas Burdon of Jesmond, married the only daughter and heiress of Sir James
Sanderson, Bart., and adding the name of Sanderson to his own, founded the
modern family of Burdon-Sanderson. Mr. Maude afterwards resided at the
Woodlands, near Harrogate, and died January 28th, 1831, aged 61. His widow
died December nth, 1833.



[I62]



Bat0on, Bern?, Xangborn, S, milBon. JSecwicn-upon^Trwee^.

TWEED BANK.

Founded about 1821. Partners. Failed 1841.

William Smith Batson. jfohn Langhorn.

William Berry. John Wilson.

SOME little time after the failure of the Northumberland Bank (Sir Francis
Blake, Reeds, & Co.) in 1 821, two of the partners, namely, Wilham Smith
Batson (who was a partner in all the branches of the bank), and William
Berry (who appears to have been a partner in the Berwick branch only),
constituted a bank at Berwick under the style of the " Tweed Bank." The firm
was strengthened by the addition of Mr. J. Langhorn, who had been a partner in
the " Berwick Bank." Subsequently Mr. John Wilson joined them. It is stated
that several of the partners were engaged in the whale trade, and in that business
lost large sums of money. The notes for January ist, 1840, bear the signature
of Batson, Berry, Wilson, and Langhorn. They had a branch at Alnwick
which, in 1837, was under the management of Mr. Joseph Hardy. Misfortune
overtook them in December, 1840, when William Batson, John Wilson, and John
Langhorn were made bankrupt. Mr. Berry's name does not appear. We are
informed that "the assets of the joint estate of the three partners in the late firm of
Messrs. Batson, Berry, & Co., bankers, Berwick, at the date of declaring the
dividend, amounted to £(>2,6()z^ 19s. 4d., and the debts proved to ^276,524 i8s. 4d. ;
that the realised assets of the separate estate of William Smith Batson amount to
^795 13s-, and his debts proved and claimed together to ^4,804 los. 2d. ; and that
the realised assets of the separate estate of John Wilson amount to ^5,883 os. 8d.,
and his debts proved and claimed to ^23,044 is. 5d. No dividend has yet been
declared upon the separate estate of John Langhorn, in consequence, it is said, of
the Savings' Bank of Berwick urging a preferable claim amounting to the full value
of the assets. In the event of its being set aside, the creditors will be entitled to
20/- in the pound.

Mr. T. R. Batson and Mr. W. Smith Batson owed the bank, the former
^36,000, and the latter ;^54,ooo. Mr. T. R. Batson compromised his debt in
October, 1842, for ^12,000, payable in four instalments of ^3, 000 each."

Notes of this bank upon which debts had been proved, are marked — "Exhibited
under a Fiat against Batson, Wilson, and Langhorn," and are stamped with ist,
2nd, 3rd, 4th, and 5th dividends. The dividends paid were — July, 1842, 5/-;
January, 1843, 1/5 ; July, 1843, 3/1 ; February, 1845, 6d. ; January, 1856, 3d. In
all 10/3 in the pound.



[i63]



Batson, Makeficlb, Si Scott. iRewcastie-upon-upnc.

NORTHUMBERLAND BANK.

Partners. Failed November, 1821.



Founded about 1800.



William Batson.
George Wakefield.
Robert Scott.
Thos. Richard Batson.
Wm. Smith Batson.



John Reed.
Archibald Beed.
William Reed.
Robert Hepple.
Sir Francis Blake.



THE earliest mention of this bank is at the time of panic in 1803, when it was
styled Messrs. Batson & Co. As it was not named among the Newcastle
banks in the panic of 1797, we place its foundation about 1800.

From a note of theirs issued from Morpeth in November, 1804, we
learn that the firm then was Batson, Wakefield, and Scott. Mr. Wakefield died








Online LibraryMaberly PhillipsA history of banks, bankers, & banking in Northumberland, Durham, and North Yorkshire, illustrating the commercial development of the north of England, from 1755 to 1894, with numerous portraits, facsimiles of notes, signatures, documents, &c → online text (page 19 of 57)