Isle of Man and Liverpool Banking Company
| Industry | Financial Services |
|---|---|
| Founded | 1836 |
| Headquarters | Douglas, Isle of Man |
| Products | Banking |
The Isle of Man and Liverpool Bank was a bank in the British Crown dependency of the Isle of Man, providing private and business banking services to the local population.[1][2] The bank traded from 1836 until it was wound up in 1838.[1][2]
History
Origins
The early history of banking on the Isle of Man is rife with incompetence and mismanagement.[1][2] Whilst the earliest banks in England were an integral part of commerce as far back as the 12th century, banking was unknown on the Isle of Man until the beginning of the 19th century.[1][2]
The earliest Manx bank, Quayle's Bank, began business in 1802 at Castletown. It was known as the Isle of Man Bank and carried on trading until 1818.[3]
A feature of Manx life at that time was a profusion of currency notes in circulation issued by tradesmen for small amounts.[4] The Bankers' Notes Act 1817 was passed by Tynwald to control note issues. Five banking licences were issued under this law.[3]The archives deposited in the Rolls Office reveal that in 1817 five banks were authorised to transact banking business and issue notes in the island; among them were John and Alexander Spittall, Gawne and McWhannell, Forbes Bank, and the better known Holmes' Bank.[1][2]
Operation
The Isle of Man and Liverpool Banking Company commenced business at Douglas in 1836. It was wound up in May 1838, "from want of sufficient capital to carry on business in both places."[1][2][5]
The Isle of Man and Liverpool Bank was succeeded by another company, the Isle of Man Commercial Bank, which in 1849 merged with the City of Glasgow Bank, carrying on its insular business as the Bank of Mona.[1][2]
References
- 1 2 3 4 5 6 7 Isle of Man Examiner. Friday, February 12, 1937; Page: 10
- 1 2 3 4 5 6 7 "pp1-16 The Manx Sun History of Dumbell's Bank". isle-of-man.com. Retrieved 4 September 2017.
- 1 2 Isle of Man Daily Times. Tuesday, January 17, 1961; Page 3
- ↑ The Isle of Man used an extensive card currency in the early years of the nineteenth century brought about by a serious shortage of small change in the Island, During the reign of George III (1760-1820) only pence and halfpence were issued and these did not suffice for the population. To meet this shortage many Manx business houses issued their own currency in the form of pieces of card of denominations varying from threepence to seven shillings. As with other token issues fraudulent issues made their appearance and many cards were circulated by issuers who had no intention of redeeming them or imposed inconvenient conditions to exchange them, i.e. the acceptance of a minimum of one pounds worth at a time. Some difficulties of circulation were also experienced by cards issued in the north not being readily accepted in the south and vice-versa. "Every man his own Banker" was a motto of the time and many of the cards issued had little, if any, financial backing, Counterfeiting was encountered and in some cases even genuine cards were not accepted by the issuers. The Manx struggled on for several years with this inconvenient medium of exchange and the situation was not helped by the indurability of the actual cards then circulating. They rapidly absorbed acids and dirt from handling and became almost illegible. One well documented story relates how a member of the Bar collected over £300 in fines and received half this sum in card money instead of coin and notes. All had to be checked before leaving for a long ride home where, on arrival and being exhausted, he threw the bundle into a cupboard till the following morning. When the contents were checked on the following day it was discovered that the contents had stuck in large masses due to action of lather from the horse. An estimate number of these notes was in the order of 2,700. Many of the issuers were bankers of prominence such as George Quayle, Edward Gawne, George Copeland, etc. They were men of integrity and the public accepted their cards without hesitation. Other issuers were not so honest and one such issuer on being asked to redeem his cards indicated that he had not put them in circulation to pay out on them again! The cards were not of particularly complex design, a fact which led to some counterfeiting. Usually they were of varied colours ... The obverse and reverse were printed separately and stuck together to yield the final product. Details of date, serial number and signature were appended by hand. Various shapes were utilised, round, oval, oblong, octagonal. Very few specimens have survived in good condition ... No documentary evidence appears to have survived in the shape of ledgers or similar records to indicate numbers issued or outstanding as exists with bank notes. In August 1815 several prominent residents called a meeting to petition the Legislature with a view to restraining circulation of card money, both genuine and counterfeit. A resolution was passed to the effect that only cards issued by George Quayle, a banker of Castletown, would be accepted in payment unless other issuers appointed resident agents in Douglas keeping regular daily hours of business. This petition was presented in October 1815 and favourable acceptance announced in the following month. A special Tynwald Court held on 1 December 1815 considered measures to be adopted eventually leading to the Bankers' Notes Act, 1817 under which no notes or cards below one pound could be issued and those in circulation had to be redeemed by 1 October, 1817 after which date they were invalid. A further outcome of this Act was the foundation of a banking system under which note licences were required prior to issue of bank notes. -- E. Quarmby
- ↑ Manx Sun, Friday, May 18, 1838; Page 12
Sources
Bibliography
- Manx Banking. By Pilcher G. Ralfe.