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

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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 40 of 57)
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Youngs, & Co. of London.

On April 13th, Mr. Coleman submitted his report to the liquidators, which,
considering the short time he had to prepare it (eight days), is a most exhaustive
document. As well as a general account, it gives a tabulated statement of the
depositors and creditors at each of the branches, namely, Sunderland, Alnwick,



[344]

Berwick, Durham, North and South Shields — these again being classified under
different amounts.

£ s. d.

Mr. Coleman estimated the total liabilities that would rank against the bank 2,255,200
The Assets of the Bank, excluding the value of the Derwent Iron Works, are

estimated to yield 1,064,082

1,191,118
The amount of capital paid by shareholders, inclusive of that portion of a call
of £5 made by the Directors after the suspension and prior to
liquidation, amounts to . . . . . . . . . . . . . . 644,032



Thus making the total loss made by the Bank, subject to reduction by such

amount as may hereafter be realised from the Derwent Iron Works . . 1,835,150

Shortly afterwards, Mr. Pugh, chief clerk to the Vice-Chancellor, held a court
in the bank premises. Grey Street, for the purpose of settling the list of contributories
to the calls that would be made. The list of the shareholders was gone through
seriatim : many a legal fight occurred between Mr. Pugh and the representatives
of the unfortunate shareholders. The court resumed its sitting on the following
day, when it was stated by the liquidators that they deemed it necessary to make
a call of ;^35 per share : many of the shareholders held over one hundred shares,
several upwards of a thousand, and the executors of one gentleman were down for
3,375 shares. The amount that would, therefore, be due from various shareholders
was positively appalling, and meant ruin and desolation to hundreds of families. Such
was the failure of the last of the joint stock banks that had been established in New-
castle. The ruin occasioned was worse than that caused by the failure of all the other
banks put together. The first joint stock bank started in the north of England
was the Darlington District Bank in December, 1831. In their prospectus they
state, "the idea of shareholders incurring any loss from personal liability in a Joint
Stock Banking Company is altogether imaginary," and that " a bank can only be
ruined by degrees — many years being required for the worst managed bank
to lose a large capital."

Such was the general anticipation when the Joint Stock Act first came into
force, but how different was the reahsation ! The "Darlington District" was
the only Northern Joint Stock Bank then standing, and its life had been beset
with many difficulties.

To attempt to give an account of the liquidation of the District Bank would
require a separate volume, and my space is already occupied. The anticipated
cost of the winding up soon began to occupy the attention of the shareholders.
A requisition was drawn out to Vice-Chancellor Sir Richard Torin Kindersley
to fix the remuneration to be paid to the liquidators. The gentlemen " do



[345]

not claim," but suggest that they should each receive a salary of ;^ 1,500
a year for the first three years, which would amount to ;^i 3,500. Mr. Coleman
claims 2 per cent, on the assets collected, which on the estimated sum of ^2,250,000
would amount to ;^45,ooo — ^jointly ^58,500, exclusive of ofiice expenses, clerks'
salaries, law expenses, &c.

The requisitionists point out that such remuneration far exceeds any allowance
that has been made in similar cases, and suggest that payment should be made in
accordance with the time occupied.

Undoubtedly the liquidation was a most arduous and responsible task, apd
considering the complicated circumstances of the case, was carried out most ably.
The dividends paid were the following: — October 8th, 1858 — 5s. ; July 9th, 1859
— 5s.; January 12th, 1862 — 2S. 6d. ; March loth, 1863 — ^2S. ; September 7th,
1864 — 4s. ; January loth, 1865 — is. ; producing ultimately 19s. 6d. in the pound.



Ipeaee & Co. Mbttbi? an& /IDalton.

Founded prior to 1790. Partners. Not recorded after 1823.



Information incomplete.

THE branches of the family of Pease were so numerous, and appear to have
been connected with so many early banking firms in Yorkshire, that
without obtaining the Christian names of the partners, it is impossible to
identify them.

At one period some member of the family was a partner in Richardson & Co.
of Whitby and Malton. Messrs. Campion's books show that they were doing
banking business with Pease and Co. from 1790 to 1802, and with Pease and
Richardson, 1792 to 1797, and in 18 14. Also with Pease, Dunn, & Co., bankers,
Malton, 18 18 to 1820. They likewise had transactions with Pease and Harrison
of Hull and Biverley, in 1782.

The list of bankers for 1805 gives : — Malton and Whitby— Pease & Co.,
London Agents — Harrison & Co. Whitby — Pease & Co., same London Agents.

In a list for 18 16 (very imperfect) they are not quoted either at Whitby or
Malton.

In 1823 they are not quoted at Whitby; at Malton they are announced
Pease, Dunn, & Co., London Agents — Lubbock & Co. This is the last record I
have of the firm at Whitby or Malton.



[346]

The Peases were an old Whitby family ; John Pease, Mercer, was Church-
warden in 1727 ; he had a large family, many of whom were buried at Whitby.
In St. Mary's Church-yard a ledger tomb-stone records the burial of seven sons
and five daughters of John and Elizabeth Pease.



3. d 3, M. peaae. DarUnaton.

Founded about 1820. Partners



Joseph Pease. Edward Pease. Alfred E. Pease,

Joseph Whitwell Pease. Giirney Pease. Joseph Albert Pease.

Arthur Pease. Charles Pease.

THE family of Pease settled in Darlington early in the last century, where
the different members were engaged in the worsted trade, " buying wool
through the northern counties, manufacturing it into yarn, and selling it
to the manufacturers in Scotland and the West Riding." For many years the
business was carried on under the firms of Edward and Joseph Pease, John and
John Beaumont Pease, Henry Pease & Co., and subsequently, Henry Pease & Co.'s
Successors.

Before banks were properly constituted, it was the custom of many large
mill-owners to keep a running account with, or receive money on deposit from the
trader, upon which a small interest was allowed. In this way many
substantial accounts were gathered at the mill office, which were more or less of
the character of banking, and were afterwards transferred to the banking
establishment.

The formation of the first Stockton and Darlington Railway gave a great
impetus to all trades in the vicinity of Darlington, and offered many opportunities
for capitalists to extend their business operations. In 18 18, an important
battle was fought at Darlington — " Canal v. Railway " — fortunately the latter
triumphed. At a meeting held November 13th of the year named, a committee
was formed to carry out the railway scheme, Jonathan Backhouse, who was a
banker, being appointed treasurer. Subsequently the Pease family made large
advances to the New Railway Companies, and Joseph Pease became treasurer
to the Great North of England Railway (Darlington to York).



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[347]

At the resuscitation of the Derwent and Consett Iron Co. after the
Northumberland and Durham District Bank failed in 1857, Joseph Pease
became banker to the revived Company, — now the well-known Consett Iron Co.
— he having also at the time several Iron Accounts in the neighbourhood of
Middlesbrough, in addition to all the banking connected with the numerous
Collieries, Ironstone Mines, &c., &c., carried on by the various members of the
Pease family.

Until 1870, Joseph Pease was the sole proprietor of the bank ; in
that year his son Joseph Whitwell (now Sir Joseph W. Pease, Bart.) joined the
firm. Two years afterwards, the head of the finn died, when the surviving
partner was joined by his four brothers, Arthur, Edward, Gumey, and
Charles Pease. Upon the death of the three last-named gentlemen, two sons of
Sir Joseph were admitted to the firm, namely, Alfred E. Pease, and Joseph Albert
Pease ; these gentlemen, with their father and uncle, constituting the present
partnership. Although the clients of Messrs. Pease are not of the general public,
a very extensive business is done. The firm have no branches ; they are first
recorded in the Bankers Almanac for 1893 ; they never had a note issue.

In my record of Messrs. Skinner, Atty, and Holt, willlDe found an account of
how Edward Pease stayed a run upon that bank.

The relationship of the members of the family who have been connected with
the bank is shown on the next page.

The Pease family are members of the Society of Friends, and they have ever
been foremost in every good work of local or national importance.

Mr. Joseph Pease was returned to Parliament for South Durham in 1832.
The presence of the first Quaker Member in the House of Commons is noticed in
the Ingoldsby Legend, " Mr. Barney Maguire's Account of the Coronation," as
follows : —

" Then the noble Prussians, likewise the Russians,

In fine laced jackets with their goulden cuffs ;
And the Bavarians, and the proud Hungarians,

And Everythingarians all in furs and muffs.
Then Misthur Spaker, with Misthur Pays the Quaker,

All in the Gallery you might persave ;
But Lord Brougham was missing, and gone a-fishing

Ounly crass Lord Essex would not give him lave."

Before quitting the Pease family I give a slight account of a relative of theirs,
who through their introduction attained to eminence in the financial world.

Thomas Richardson was born at Darlington, 1771. His father originally came
from Hull, his mother from Great Ayton, her maiden name also being Richardson. It



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[3491

is stated that early in life the subject of this sketch was apprenticed to a " Friend,"
a grocer in Sunderland. " The work was hard but the discipline good." At the close

of his apprenticeship he returned to Darling-
ton, when his relative, Edward Pease, sent
him to London, paid his passage, gave him
a guinea, and a letter of introduction to
Messrs. Smith, Wright, and Gray, bankers,
Lombard Street, the partners being all
" Friends." Richardson was engaged as
errand boy at first, but soon rose to a better
position, namely, a clerkship of £^o a year.
In 1799, he had attained an income of ;^8o
and in the same year married Martha Beeby,
whose friends lived at Allonby, Cumberland.

Messrs. Smith, Wright, & Co. united
with Esdaile & Co., and w^ere for many
years known by the latter name. Early in
the century Richardson decided to leave the
firm, and with a young Quaker friend, John
Overend, who was then a clerk with Joseph
Smith & Co., bankers, London, commenced
business on his own account. They started
bill-broking,* then an entirely new idea.
They began operations in a small room in
Finch Lane, but soon moved to more
extensive prem.ises in Lombard Street. Their
business proved an immense success.

They were joined by Samuel Gurney,
whose relative, John Gurney of Norwich,
had watched and assisted the founders of
The history of the noted house of Overend, Gurney, & Co., is too well
known to need further remark.

Mr. Richardson retired from the firm in the hey-day of its prosperity. He
subsequently went to reside at Stamford Hill, Great Ayton, where he devoted his
time and a large part of his great wealth to philanthropic works. In the Friends'
School there he took a deep interest.

* Mr. Richardson in his evidence before the Bullion Committee ("Lombard Street" p. 286) fully explains the
nature of the business of a " bill broker " that he had introduced.




"A Friend in Lombard Stkeet."

Thomas Eichardson.

From " City Characters drawn and etched by

Richard Dightou (1834)."

the firm.



[ 35oJ

pciVBC, Consctt, ^opbam, S, Malton. iwortbaiierton.

Founded 1793. NORTH RIDING BANK. Extinct prior to

Partners. 1804.



Richard William Peirse. Edward Topham.

Warcop Consett. Thomas Walton.

THE first firm of whom I have any record as bankers at Northallerton were
Messrs. Peirse, Consett, Topham, and Walton, but as they are announced
as a New Bank, possibly there may have been a banking firm in that
town anterior to their existence. They publish their intention of opening in the
Newcastle Chronicle for January 19th, 1793 : —

" PUBLIC NOTICE.
" NoBTH Riding Bank, Noethallerton, Yorkshire. — This is to inform the public that early in the
Month of February next (1793) will be opened at Northallerton a New Bank under the above title.
The Firm to be Messrs. Peirse, Consett, Topham, and Walton. The Respectability and known
Property of the above Firm, it is humbly presumed, will be a most suflBcient Recommendation and
Security for the property vested with them. The London business of the firm will be conducted by
Messrs. Boldero, Adey, Lushington, and Boldero.

A Clerk is wanted to the above Bank who has been used to the business, and who must give the
most ample and satisfactory security for his conduct and the trust reposed in him. — January 10th,
1793." A subsequent advertisement has : — " N.B. — Clerks are already engaged in the above Bank."

It was a difficult time for a new bank to start, though the opening probably
arose from the stoppage of some other house in the district. The newspaper
above quoted, remarks on the 30th March : —

"The alarm created in Yorkshire by the late failures or stoppages of some banks, has had a most
injurious effect, by creating a general distrust in the minds of tradesmen, farmers, and others, almost
amounting to a suspension of all pecuniary transactions. We have, however, reason to believe that
the different concerns are possessed of ample property to satisfy every demand that can be made upon
them, as soon as the run now making can be provided for by the liquidation of the securities they
have obtained for the investment of their property."

Just at this time Messrs. Robert and Thomas Harrison, bankers, had stopped
payment, and as they were the London Agents for several of the North Riding
banks, matters became still more complicated, and this probably accounts
for the New Bank at Northallerton issuing the following announcement in the
Newcastle Chronicle for March 30th, 1793 : —

" The North Riding Bank, Northallerton, opened on Thursday, February 7th (1793), to the public.
Where great property is confided, perhaps it is but right that those who trust should know the grounds
on which they are to rely. In order, therefore, that the public may be perfectly secured in all
Transactions at this Bank, We, the undersigned Firm, have inserted a clause in our articles of
agreement, expressly charging our joint and separate personal and landed Estates with the payment
of all Demands on the Bank during our joint lives, and further after our respective deaths.^Richard
William Peirse, Warcop Consett, Edward Topham, Thomas Walton, Deputy Register, North Riding."



[351]

There evidently was a popular opinion abroad about this time that the landed
estates of bankers were not liable for their trade debts, and to satisfy the mind
of the public upon the matter, a case was submitted to Mr. Osborne, the learned
Recorder of Hull and Beverley ; the questions asked and the Recorder's answers
being advertised in the Yorkshire Herald of March 23rd, 1793.

" Mr. Osborne is desired to give his opinion upon the following question, * Are the landed Estates of
Bankers liable to payment of their notes and their other debts on simple contract?' Answer.
' Bankers as well as other traders, are subject to the Bankruptcy Laws, and if on failure of payment
of their debts a commission of Bankruptcy be taken out against them, the Landed Estates of all the
partners (subject to any settlement or mortgage that may have been previously made thereon) as well
as the whole of their personal property, are, after payment of their private debts, liable to the payment
of their notes and other debts contracted in the course of their trade.' — Hull, March, 1793. R. Osborne."

The liability though applying to all bankers, w^as exceptionally important m
this instance, as all the partners were owners of landed property.

Doubtless a bank of such stability would have a considerable note issue,
though I have not been able to trace any. Before me is one of their drafts
upon their London Agents, Messrs. Willis, Wood, Percival, & Co. The vignette
(by Beilby and Bewick, Newcastle) is a view of the Register Office, evidently
chosen because Thomas Walton was Deputy Registrar.

The panic of 1797 caused by the great want of specie was evidently felt in
Northallerton, and brought out the following announcement : —

"NORTH RIDING BANK, NORTHALLERTON.

Whereas it appears that the present demands for Specie arise from ill-founded or exaggerated alarms,
and not from insufficiency of Credit or want of Stability in the Firm of the said Bank ; therefore the
Gentlemen undernamed, to prevent Public Inconveniences or Obstructions of Business, and also to
manifest their confidence in the said Firm have agreed to receive in payment their Notes as Usual,
and do recommend it to all others to do the same. . . . N.B. — The original Resolution is left at
the BANK for signatures. March 2, 1797."

The list published has the names classified : — Baronets (of whom three sign)—
Sir Robt. D'Arcy Hildyard, Sedbury ; Sir Thomas Frankland, Thirkleby ; Sir Alex.
Ramsay Irvine, East Harlsey ; Esquires — twelve signatures, Anthony Hammond
of Hutton-Bonville being one, who subsequently became a banker at Northallerton;
Clerks — Rev. William Peacock heading the list ; and next, the tradesmen of
Northallerton, Newbuildings, Thirsk, Sowerby, and Topcliffe. What became of
the bank after this I am unable to determine. Doubtless their notes and other
liabihties were all honourably met ; but in 1 804, only seven years after the incident
named, I find Messrs. Hammond, Hirst, and Close, styling themselves " North
Riding Bank," and having on a five guinea note the same vignette view of the
Register Office. It would appear that they had at some time between 1797 and 1 804



[352]

taken over the business of the old firm, or commenced a fresh undertaking under
the same name. For an account of their bank see page 280,

The Register Office is still in existence, and has an interesting history.

An Act of Pariiament (8 Geo. II., cap. 6), was passed for the public registration
of all deeds, &c., made within the North Riding of York after September 26th,
1736. It was decided that Northallerton was the central market town, and on
July 17th, 1735, the office was established there. An advertisement in a Newcastle
paper of 1726 shows that at Thirsk, North Riding deeds had previously been
registered : —

"The Office for Registration of deeds or conveyances for the North Riding of York will be kept at
Mrs. Lowrey's in Thirsk, where attendance will be given every Monday from 10 to 4 ; by Mr. John
Close, of Oulston, near Easingwold."

In 1782, the office represented was erected, and additions made to the old
one to form it into a residence for the Registrar. Various gentlemen held the
position until 1774, when George Crowe, Esq., was made Registrar, and Thomas
Walton, Esq., banker, Deputy. In 1783 Mr. Crowe died, and the post became
vacant. February 12th, 1784, was fixed for the election, Matthew Butterwick,
of Thirsk, Esq., Richard William Peirse, Esq., banker, and Henry Pulleine,
Esq., being candidates. Mr. Butterwick gained the appointment.

" In 1828 the office was again vacant, when Richard William Christopher Peirse, of Thimbleby Lodge,
John Sanders Walton (both sons of the old bankers), and Henry Hewgill, of Hornby Grange, applied
for the office. May 26th was the day fixed for the election. Mr. Hewgill retired, but the other two
candidates strained every nerve for victory ; the contest was almost as exciting, and the expense almost as
great as a Parliamentary election in the olden days. Four magistrates were appointed scrutators ; the
Venerable Archdeacon Headlam, President ; Lupton Topham, Secretary ; and William Wait, poll clerk
to the scrutators. Counsel for Mr. Peirse —P. Maude and C. H. Elsley ; for Mr. Walton — James Losh
and G. Fielding. Managers — R. Smithson, of York, and Robert B, Walton, of Northallerton. Poll
clerks — W. D. Walker, Esq., of Leeds, and Robert Davidson, of Northallerton. Check clerks —
Messrs. Smithson and Fairbank. The poll lasted for four days. Nearly every solicitor in the Riding
was retained for either one side or the other ; all wore the aspect of bustle and excitement, and
Northallerton became literally crowded with chaises, gigs, and other vehicles, freeholders having been
brought from the extremities of the Riding, and several from distant parts of the kingdom. The end
of the second day Mr. Peirse was only 17 votes ahead, and at the close of the poll he led by 26 votes."

On July 1 2th, 1833, Mr. Richard William Peirse was appointed one of the
deputies. Mr. R. W. C. Peirse died December 24th, 1844, when his son Richard
William Peirse succeeded him without opposition. In 1780 he married Eliza,
eldest daughter of Christopher Fawcett, Esq., Recorder of Newcastle. She died
at Thimbleby, August 2'], 1791, aged 33. I am informed the appointment is worth
about ;^i,200 per annum. There are only four such offices in the kingdom.

Henry Peirse, M.P. for Northallerton 1713, was the eldest son of John Peirse
of Bedale. He was born 1692, and married Anne Johnson. He inherited his



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 40 of 57)