The First Bankers—Middleton & Campbell, predecessors of Coutts & Co., "at The Three Crowns in the Strand"—Patrick and John Coutts—Patrick and Thomas Coutts in London—Death of James Coutts—Enter, Thomas Coutts—Letter by Him—His Stern Character—Married to Harriot Mellon—Susan Starkie and "The Three Graces"—Sir Francis Burdett—Angela Georgina Burdett—The Duchess of St Albans—Anecdotes of Thomas Coutts—His Personal Appearance—Interior of the Bank—The Chinese Wall-Paper—The Adelphi Chapel—Illustrious Customers of Messrs Coutts—Partners in the Firm—The Wills of Thomas Coutts and the Duchess of St Albans—The Savage Club—Thomas Hardy—E.L. Blanchard.
Queen Elizabeth "was particularly kind to the citizens, and borrowed money of them on all occasions." At first sight this may not seem a compliment, since monarchs have not always been too particular in the matter of the repayment of their loans. Queen Elizabeth, however, was a good borrower, and the Goldsmiths Company—employed by her in these transactions—drank annual libations to her memory, out of a silver cup which she had presented to them, for many years after her decease. But "the business of goldsmiths," as Pennant has pointed out, "was confined to the buying and selling of plate, and foreign coins of gold and silver, melting them, and coining others at the mint. The banking was accidental, and foreign to their institution. Regular banking by private people resulted, in 1643, from the calamity of the time, when the seditious spirit was incited by the arts of the parliamentary leaders. The merchants and tradesmen, who before trusted their cash to their servants and apprentices, found that no longer safe; neither did they dare to leave it in the mint at the Tower, by reason of the distress of Majesty itself, which before was a place of public deposit." In the year 1645, the goldsmiths added banking to their business. The first regular banker was Thomas Child, goldsmith, of Fleet Street, who began in this way soon after the Restoration. "He was the father of the profession, a person of large fortune and most respectable character."[46]
The shops of the goldsmiths and bankers were, of course, situated in the city of London until, in 1692, the firm of Middleton & Campbell was established in St Martin's Lane. George Middleton and John Campbell were the predecessors of the great banking firm known as Coutts & Co., whose premises in the Strand occupied part of the New Exchange and the Adelphi for one hundred and sixty odd years. Campbell, who died in 1712, and was buried in the churchyard of St Paul's, Covent Garden, left his "faithful and honest partner" as executor to his four children until the coming of age of his eldest son, William. In 1729, the youngest son of John Campbell became a partner. Until 1737, the business was carried on in St Martin's Lane, then the centre of the artistic world of London. In that year Messrs Middleton & Campbell occupied the middle house of a row of eleven which had been built on the site of "Britain's Burse." The firm did not become "bankers" until 1740, although it had transacted the usual banking business, together with an army and commission agency, for many years previously. In 1712-13 Middleton & Campbell had acted as agents for Queen Anne's 4th Troop of Guards. The name of the firm was changed to that of Coutts in 1760, and it is by this honoured name that it is likely to be known so long as it exists—and that will be so long as banking flourishes as an institution in this country. The original sign of the house, three crowns, is still used on the cheques, surrounded by the words: "At the Three Crowns in the Strand, next door to the Globe Tavern, A.D. 1692."
The story of the change in the name of the firm is curious and interesting. This history being more particularly concerned with Thomas Coutts, and his establishment in the Strand, it is not necessary to go further into his genealogy than to state that the great banker was a descendant of William Coutts and his wife, Janet Ochiltree, of Montrose.
One Patrick Coutts, desirous of making a name for himself, left Montrose and went to Edinburgh, where he traded as a general merchant, importing and exporting goods, in 1696. He died in 1704, a man of probity and wealth. He left his great fortune to his son John, who also flourished in Edinburgh as a merchant. "The business initiated by John Coutts was a combination of general dealing and the negotiation of foreign bills of exchange. He also imported and sold corn, either on his own account or as a commission agent. But in proportion as he advanced in business and acquired spare capital, as well as the confidence of persons who deposited with him money at interest, he appears to have laid himself out chiefly as a negotiator of bills, a species of traffic which as yet had not been appropriated by banks, and demanded much knowledge and shrewdness. Whether from family connections or otherwise, he became acquainted with people of good social standing, through whom he widened his base of operations. For some time he had for a partner Thomas Haliburton, of Newmains (who through a daughter became the great-grandfather of Sir Walter Scott); next we find him taking as partner Archibald Trotter, son of Trotter, of Castleshiel; then by another change of firm he was associated with his cousin, Robert Ramsay, brother of Sir Alexander, of Balmain. As further marking the esteem in which he was held by the aristocratic circles of Edinburgh, he formed an intimacy with Sir John Stuart, of Allanbank, whose sister he married."[47]
John Coutts, who was Provost of Edinburgh in 1742-43, died in 1751, leaving four sons, Patrick, John, James, and Thomas, who inherited his business and great wealth. Thomas Coutts, with whom we are more directly concerned, was born on September 7, 1735. Patrick and Thomas Coutts, and their cousin, Thomas Stephen, opened a branch establishment in London, in Jeffrey's Square, St Mary Axe, under the name of Coutts, Stephen, Coutts, & Co.; John and James Coutts, remaining in the North, acted as the correspondents of the London firm, and bought and sold goods on commission. In his Memoirs of a Banking House, Sir William Forbes says: "Some years they made large profits, which they as often lost in others, owing to the fluctuation of the markets and the bankruptcy of many of those with whom they dealt. Indeed, I have often thought it not a little singular that a banking house, which of all branches of business seems peculiarly to require caution, and which ought, as much as possible, to be kept clear of hazard or speculation, should have chosen to embark so largely in the corn trade, which is perhaps the most liable to sudden fluctuation, and in which no human prudence or insurance can guard the adventures from frequent loss."
The house in the Strand was carried on under the style of Campbell & Bruce, under the sole control of George Campbell from 1751 to July, 1755. James Coutts, the third son of Lord Provost John Coutts, having become acquainted with George Campbell during one of his visits to London—for his main business was with the Edinburgh house—married, in 1754, Campbell's niece, Mary Peagrim, and was taken into partnership by the Strand banker, whereupon he withdrew from his old firm, and Campbell & Coutts came into existence at No. 59 Strand. On the death of his partner, in 1761, James Coutts took his brother, Thomas, into the firm. James Coutts died in 1778, leaving Thomas in full control of the business, and his only daughter inherited his fortune of £70,000.
Thomas Coutts, who ultimately became known as "the richest man in London," was a great character. He had received an excellent training at the High School in Edinburgh, and this, together with his vast experience in correspondence, "enabled him to appreciate literary composition, and to express himself with accuracy." He survived all his brothers, and became the first banker in London. His munificence, no less than his wealth, admitted him to the highest circles. Together with Sir Walter Scott, his friend, and kinsman, through the Stuarts of Allanbank, he received the freedom of the city of Edinburgh. Although he was always ready to lend a hand to genuine distress, he was very keen in money matters, and sternly resented any attempt at what he considered imposition. The following letter, written in his eightieth year, is characteristic of his attitude when replying to those who besought unwarranted favours. It was addressed to John Pinkerton, the Scottish antiquary and historian, who had asked the banker to recommend him as a travelling companion, and to forego the interest on a bond:—
"Strand, January 31, 1815.
"I have received the favour of your letter, asking me to withdraw the claim for interest on the sum I lent on the security of a house; but the footing upon which you have put the request is one I have uniformly, at all times, thought to be such as I ought to reject, and have rejected accordingly. The bankers in Scotland and the county banks in England are on a different plan from those of London. They circulate their own notes and make payments in them. We give out no notes of our own, and if we were to give interest at even one per cent. per annum, we should be losers by our business.
"We do not consider ourselves as being obliged to any one person who places his money in our hands, however considerable. It is to the aggregate and general mass of society that we owe our situation, and to the credit our prudence and attention has obtained for us; and people deposit their money in our hands for their own advantage and convenience, not from favour to us, nor do we desire to have it on any other terms. Probably you may not understand the explanation I have spent time in making, which I can very ill spare, and it may therefore answer no purpose, but it satisfies myself, and I wish to show equal attention to all my employers, whether they have large or small sums in my hands, which indeed hardly ever occupies my attention.
"My attention is fully engrossed in doing business with honour and regularity, leaving the rest to the common chance and course of things. It surprises me that, though it every day appears that there is very little truth published in the newspapers, yet people will still believe what they read, especially abuse, or what they think is against the character or prudence of the person treated of. I saw some paragraphs, and heard of more, of what I had done for Mr Kean, in all which there was not a word of truth; though I see no reason why I might not, without offence to any one, have given Mr Kean anything I pleased. In doing any little matter in my power for an individual, I must add, I never had any view to celebrity, with the present age or with posterity.
"If I should know of any gentleman wanting a travelling companion abroad, I shall mention you to him, but it seldom happens that I am applied to in such matters."