The New York herald., 1866-05-28

tho most profitable Of tho two and Mr Joseph Smith
was frank enough to communicate the fact TO hts most
intimate ates One evening. whe discussing the
interesting subject, over bottle OF wine, the question
was started, "wny not establish house solely devoted
TO the trade IN bllsfn rhe suggestion came from Mr.
John Oyerend, enterrrising young man. clerk 10 Mr.
Joseph smith, was favoraby entertained on all Sides
OF the Norwich Bank and several OF The leading
chants of the town. Mr. Joseph Smith personally do
cned himself with the proposed II dealing
establishment but offered to give his advice and assist
ance and IL lnay determined 10 put forward three
young men as founders OF the frm-nanely, Mr. Over
end, Mr. Samuel Garney. twenty years of age, ,hc
second OF Mr. John Gurney, previously clerk 10
kr Fry who had married his sister, the celebrated Mira
Fry; and Mr. Thomas Richardson, clerk In the bank
ing house of hessrs. Smith, Wright Gray, Afterwards
Esdae h Co.
Tie new establishment ~as on tho outset n mere
agency of the Norwich Bank and under tho eLtre
superntendence of the Gurpcy family. But for some
reason Of their the latter thought Il best not
to show this patronage too openly, and the nTrn
was brought forward under the title Of Richardson,
Overend 4 Co. Mr.. Richardson retired, when
1t retained, although Mr. 0verend died not long
AFTER leaving Mr. Samuel Gurney soe representative q
ncnt position il aforwerds occupied Tho way in which
this was accomplished has stamped the name OF Mr.
Samuel Quincy as ono Of ,hc most eminent ananeers Of
inodorn iimes While ordinary minds aro abo only 10
draw advantage from prosperity, "to make hay while
the sun shlnes,n Mr.. Gurnoy distilled honey oat of
thorns and built temple OF wealth ON foundation of
distress and adversy. Tie panic of 1925 remark
able for distrus Of bankers. Several London banks
fa led, and, according Mr. Horslcy Palmer fewer
than eighty private banks The country probably
many more woad have failed but for the distance
they obta ned from The Pank OF England In thls
crisis Mr.. s. Gurney forward the champion OF
new principle Of banking He advocat d that private
bankers, particularly those OF the metropolis, ought to
change their rnodc OF Investment, anf instead OF
poyng Their surplus funds IN the purchase OF govern
ment securities TO be discounted st the Bank OF Eng
land place them deposit with bill brokers, 10
be independent OF the bank. This, he argued would
prevent future finance cries. occasioLed chiefly by the
banking es:sbIshmsnt The advice was followed largely
and great many London bankers besides not few in
the country, began connecting themselves with bill
brokers Almost the whole OF this business fell 10 tho
share OF Messrr. 0verend X co-that is, Mr. Samuel
Gurney-who thus became the banker or many hun
dreds OF private banks When the latter had any
plus funds they placed them deposit with Messrs
Ovcrend Co, and when IN want they Withdrew them
from Mcssrs 0vercnd 4 Co This arrangement made
the private banKcrs directly Independent OF the Bank OF
England, releasing them from an attachment not un-
frequently franght with danger all times with
impedlments for free action. The change
pl shed In few years. Mr. George Carr Gynn when
cramincd before the Bank Charter Committee, in the
year 1882 speaking for the London bankers generally,
sid;-"we do not feel the slightest dependence upon
tho Bank Of England, do feel the slightest obii-
The immense success OF the new firm OF bin brokers
could not fail 20 call mp rivals The hrt OF them, In
Mr. sandcrTon, the fonndcr OF the firm, originally
clerk, or manager, with Messrs. Oyerend Co,
and on getting considerable experience in the business
had sufficient courage 10 set up on hss oyn a-count
He acquired wealth, became member Parliament,
married the daughter Of nobleman, sndpro.able
sequence Of the latter 'lnercs,ing evcpt--stopped
payment in the year isl7. But he succeeded after
while Ia paying on his CREDITOR and started arcsh tax
posed 70 BE- wealthy sto,k broker fse new Sr,1 lad
brilliant career OF about nine years aud then In 1857
again stopped payment This time the very excessive
the largest credors OF whom two were private bauksrs
II turned out investigation ths, the total liabilities
amounted TO the OF 90 AZ 2sS, with only
a portion OF them secured by bills Of exchange Once
the giant from the ground and after short
Of business few months since, absorbed by
a joint stock company-thc Consolidated Discount
with a capital OF million and promise Of ten per
Of sanderson Co raised the poson Of another great
firm OF bin brokcrs bnd In time, hut second In msgni
tude.
This was the house Of Alexander Co. established by
Mr. Alexander chief clerk In the private bank Of Ro-
barts Curtis Co.. and absorbed by private bank.
Of the three great bill dealing bankers above mentioned
including the nrm bankrupt-.rom statement of
before the Select COMMITTEES Of he House Of Commons
the Bank Acts, which sat IN 1858 Mr. Neaye states
there were three bill brokers in London holding deposits
to ihe extent OF nfecnmllions and half sterling he
does not give tho names OF these brokers' but M W.
Gibarf, In his "Logic OF Banking supplies the def.
Ne-srs orcrend, Quincy Co ............ 5000 600
Mes-rs Alexander n Co. Observation-Disclosures. 600
hessr sandemsn Co..................... asooooo
Total. .sis. 200 coo
Considering that each OF above three Arms bad
grown up within little than quarter of century.
and that all of them were founded by men not
OF wealth, and In the soAl position Of clerks the hgures
tell tale nothing less than marvellous
In more recent times Joint stock has Invaded the
domain OF the hill broker no ies than ,haf Of Ordinary
bankers The National Disrouut Company aud the fca
a"n 'n NJ o"ry VT. nu ,Io,,sss ana a,hcr
80, 80 .,,,a,o, whit, ~. Ia, s,, rc,ro hos
~i" i.'s,,a. =, - ,.,,,.1l,
i"h""eu iu 'he rsine f.tuou "sa F'.ey
Ia expectation OF this rivalry unt MT samuel Cur
ny expressed himself severely against tbs prp-
cple Of JOINT stock association when cited
aimee. hefor. ire Parliamentary comtatee on
80, so,s n."I A., isas lie ,,,p.n ~ ,he yrc,,
III ,, -. ~ 80 IN ~ ,,, " c,n,'S as io'n, e.
OH bfpKef thst 'the peculiar uisth'uoh o' JON, eiA
banks conssied being nethcr legitimate nor respecls
and requiring regulation And when the chairman. the
Chancellor ~ the Exchequer inquired of Mr. Gufney
ssDo conceive n would b. an Improvement dis
advantage 20 the present system if Joint sock banks
permitted N he established With limited abt.