Baring Brothers & Co. (London, England)

Variant names
Dates:
Active 1763
Active 1931
Britons
English

History notes:

Barings Bank was founded in 1762 as the John and Francis Baring Company by Francis Baring, with his older brother John Baring as a mostly silent partner. They were sons of John (né Johann) Baring, wool trader of Exeter, born in Bremen, Germany. The company began in offices off Cheapside in London, and within a few years moved to larger quarters in Mincing Lane. Barings gradually diversified from wool into many other commodities, providing financial services for the rapid growth of international trade, including the lucrative slave trade which enriched the family and the business considerably and allowed significant expansion of the bank's activities and prestige. In 1774, Barings started business in the USA. By 1790, Barings had greatly expanded its resources, both through Francis's efforts in London and by association with leading Amsterdam bankers Hope & Co. In 1793, the increased business necessitated a move to larger quarters in Devonshire Square. Francis and his family lived upstairs, above the offices. In 1796, the bank helped to finance the purchase of about 1 million acres (4000 km2) of remote land that would become part of the state of Maine.

In 1800, John retired and the company was reorganized as Francis Baring and Co. Francis's new partners were his eldest son Thomas (later to be Sir Thomas Baring, 2nd Baronet) and son-in-law, Charles Wall. Then, in 1802, Barings and Hope & Co. were called on to facilitate the largest land purchase in history: the Louisiana Purchase, which doubled the size of the USA. It is regarded as "one of the most historically significant trades of all time". This was accomplished even though Britain was at war with France and the sale helped to finance Napoleon's war effort. Technically, the United States purchased Louisiana from Barings and Hope, not from Napoleon. Baring was willing to help Napoleon in the short term because he, and British politicians who backed him, predicted that American expansion into Louisiana would ensure Barings' profits in Britain. After a $3 million down payment in gold, the remainder of the purchase was made in United States bonds, which Napoleon sold to Barings through Hope & Co. of Amsterdam at a price of $87.50 per $100 face value (a discount of one-eighth). Francis's second son Alexander, working for Hope & Co., made the arrangements in Paris with François Barbé-Marbois, Director of the Public Treasury. Alexander then sailed to the United States and back to pick up the bonds and deliver them to France.

In 1803, Francis began to withdraw from active management, bringing in Thomas's younger brothers Alexander and Henry to become partners in 1804. The new partnership was called Baring Brothers & Co., which it remained until 1890. The offspring of these three brothers became the future generations of Barings leadership. In 1806, the company relocated to 8 Bishopsgate, where it stayed for the remaining life of the company. The building underwent several expansions and refurbishments, and was finally replaced with a new high-rise building in 1981.

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Permalink:
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Subjects:

  • Banks and banking
  • Finance, Public
  • Mexican War, 1846-1848
  • Shipping
  • Travel costs

Occupations:

not available for this record

Places:

  • London, ENG, GB
  • Roumania, Europe (as recorded)
  • United States, 00, US
  • Europe, ,
  • Dover, ENG, GB
  • Louisiana, LA, US
  • Bucharest, 10, RO
  • West Indies, 00, BS
  • Berne, Canton of, Switzerland (as recorded)
  • South America, ,
  • Ireland, 00, IE
  • Kingdom of Spain, 00, ES
  • Canada, 00, CA
  • Blackheath, Kent (as recorded)
  • New York, NY, US

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