The City of London in The City of London in Literature: Place, People Literature: Place, People and Pursuits in Historical and Pursuits in Historical

PerspectivePerspective

Professor Ranald Michie, Durham UniversityProfessor Ranald Michie, Durham University

May 2013May 2013

The City of LondonThe City of London

The Current Ranking of Global The Current Ranking of Global Financial CentresFinancial Centres

1.1. LondonLondon2.2. New YorkNew York3.3. Hong KongHong Kong4.4. SingaporeSingapore5.5. ZurichZurich6.6. TokyoTokyo7.7. GenevaGeneva8.8. BostonBoston9.9. SeoulSeoul10.10. FrankfurtFrankfurt

Financial Times 25Financial Times 25 thth March 2013 ( Source: Z/Yen ). March 2013 ( Source: Z/Yen ).

The Historical Ranking of Global The Historical Ranking of Global Financial Centres.Financial Centres.

1818thth Century: Amsterdam, London, Paris Century: Amsterdam, London, Paris 1919thth Century: London, Paris, New York Century: London, Paris, New York 2020th th Century: London, New York, TokyoCentury: London, New York, Tokyo

Until 1939 the City of London was also the leading international Until 1939 the City of London was also the leading international commercial centre. After the Second World War the need for global commercial centre. After the Second World War the need for global commercial centres declined. Much of the physical trading of commercial centres declined. Much of the physical trading of commodities that remained switched to locations offering light commodities that remained switched to locations offering light regulation and low taxation such as Switzerland and, later regulation and low taxation such as Switzerland and, later Singapore. As a result the City became largely a financial centre.Singapore. As a result the City became largely a financial centre.

Increasing Focus on FinanceIncreasing Focus on Finance

Employment in the City of London Sources: City of London Day Census, 1911: Report (London 1911), p.41; J.H. Dunning and E.V. Morgan, An Economic Study of the City of London, (London, 1971), p.118; Economic Outlook for London, October 2007, p.39 1911

1964/6 2007

Total Employment 357,361 360,680 364,000 Total in Financial Services 48,066 124,407 151,200

Percentage in Financial Services

13.5% 34.5% 41.4%

Reality Versus Perception Reality Versus Perception Despite the transformation from a commercial to a financial centre, Despite the transformation from a commercial to a financial centre,

financial crises, world wars, the loss of Empire, Britain’s economic financial crises, world wars, the loss of Empire, Britain’s economic decline and the challenge of competitors, ranging from Berlin and decline and the challenge of competitors, ranging from Berlin and Paris in the late 19Paris in the late 19thth century to Frankfurt and New York in the late century to Frankfurt and New York in the late 2020thth , the City of London has repeatedly emerged triumphant in , the City of London has repeatedly emerged triumphant in The The Fight for Financial SupremacyFight for Financial Supremacy (Paul Einzig, 1931). (Paul Einzig, 1931).

However, the City of London has rarely been praised for this However, the City of London has rarely been praised for this achievement . Using novels allows the historian to understand why achievement . Using novels allows the historian to understand why and assess the implications. Novels provide a glimpse of the and assess the implications. Novels provide a glimpse of the opinions of contemporaries which cannot be captured from facts opinions of contemporaries which cannot be captured from facts and figures. Novels are also powerful opinion formers generating a and figures. Novels are also powerful opinion formers generating a lasting perception. Consider how the work of Shakespeare and lasting perception. Consider how the work of Shakespeare and Dickens has shaped our own understanding of the past. Dickens has shaped our own understanding of the past.

Fiction and the CityFiction and the City Novelists writing about the City base their work on personal Novelists writing about the City base their work on personal

experience, information provided by friends and relatives, and the experience, information provided by friends and relatives, and the views current in newspapers and other media.views current in newspapers and other media.

They have then added in their own prejudices, biases and opinions; They have then added in their own prejudices, biases and opinions; met the practical requirements of a novel as a literary form; and met the practical requirements of a novel as a literary form; and responded to the demands of the book buying public. A novel is not responded to the demands of the book buying public. A novel is not a factual report but a literary creation. As such it has to be used very a factual report but a literary creation. As such it has to be used very carefully by the historian. To me the novel is a product of the carefully by the historian. To me the novel is a product of the imagination conditioned by the world in which the writer lived.imagination conditioned by the world in which the writer lived.

To novelists the City appears to possess 3 main characteristics. To novelists the City appears to possess 3 main characteristics. The physical location in which events happen: The Place.The physical location in which events happen: The Place. The characters who populated the City: The PeopleThe characters who populated the City: The People The activities undertaken in the City: The Pursuits.The activities undertaken in the City: The Pursuits.

The City as a Place in FactThe City as a Place in Fact The City is a world within itself. Centred in the heart of the metropolis, with its The City is a world within itself. Centred in the heart of the metropolis, with its

innumerable capacities for commercial pursuits, it presents at first sight, to a stranger, innumerable capacities for commercial pursuits, it presents at first sight, to a stranger, a most mysterious and unfathomable labyrinth of lanes and alleys, streets and a most mysterious and unfathomable labyrinth of lanes and alleys, streets and courts, of lanes thronged with bustling multitude, whose various occupations, though courts, of lanes thronged with bustling multitude, whose various occupations, though uniting in one grand whole, seem to have no direct association with each other.uniting in one grand whole, seem to have no direct association with each other.

D. Morrier Evans, the City [1852]D. Morrier Evans, the City [1852]

...the City of London, whose resident population hardly equals that of Dover, but ...the City of London, whose resident population hardly equals that of Dover, but whose precincts over a million persons enter daily, Sunday excepted, on business whose precincts over a million persons enter daily, Sunday excepted, on business bent.bent.

A. H. Beavan, Imperial London [1902]A. H. Beavan, Imperial London [1902]

The residential population of the City fell from around 125,000 in 1851 to 20,000 in The residential population of the City fell from around 125,000 in 1851 to 20,000 in 1911. The working population rose from around 170,000 in 1866 to 364,000 in 1911.1911. The working population rose from around 170,000 in 1866 to 364,000 in 1911.

Source: The City of London Day Census [1911]Source: The City of London Day Census [1911]

The City as a Place in FictionThe City as a Place in Fiction The City seems so much more in earnest: its business, its rush, its roar, are The City seems so much more in earnest: its business, its rush, its roar, are

such serious things, sights and sounds. The City is getting its living – the such serious things, sights and sounds. The City is getting its living – the West-End but enjoying its pleasure.West-End but enjoying its pleasure.

Charlotte Bronte, Vilette (1853)Charlotte Bronte, Vilette (1853)

Basil proceeded through the gorge of a narrow court into a larger one, Basil proceeded through the gorge of a narrow court into a larger one, surrounded by high buildings, one side of which seemed occupied by a surrounded by high buildings, one side of which seemed occupied by a handsome old-fashioned dwelling house, and the other by a range of handsome old-fashioned dwelling house, and the other by a range of buildings, the basement story of which was appropriated to counting buildings, the basement story of which was appropriated to counting houses.houses.

Mrs Gore, The Money Lender (1854)Mrs Gore, The Money Lender (1854)

Fragmentarily the City is nothing, but collectively it is gigantic;...Fragmentarily the City is nothing, but collectively it is gigantic;... Charlotte Riddell, City and Suburb, 1861Charlotte Riddell, City and Suburb, 1861

Change 1Change 1 Novelists writing in the mid 19Novelists writing in the mid 19 thth century still saw the City as a real community with an identity shaped by those century still saw the City as a real community with an identity shaped by those

who both lived and worked there. The result is a balanced view of the City recognising both its faults and its who both lived and worked there. The result is a balanced view of the City recognising both its faults and its merits. Charlotte Riddell was one of the last to see it that way. merits. Charlotte Riddell was one of the last to see it that way.

What a view of the City is to be had from Bankside! ... A place of churches, houses, streets, lanes, bridges of old What a view of the City is to be had from Bankside! ... A place of churches, houses, streets, lanes, bridges of old as well as recent developments like the Cannon Street railway terminus and new wharves and warehouses.as well as recent developments like the Cannon Street railway terminus and new wharves and warehouses.

Charlotte Riddell, Austin Friars (1870)Charlotte Riddell, Austin Friars (1870)

Other writers increasingly regarded the City as not a real place compared to the East and West End of London Other writers increasingly regarded the City as not a real place compared to the East and West End of London and the growing suburbs , as that was where people actually lived their lives. and the growing suburbs , as that was where people actually lived their lives.

There lies, not far from Capel Court, a mysterious world, the world of FinanceThere lies, not far from Capel Court, a mysterious world, the world of Finance Walter Besant, All in a Garden Fair, 1883Walter Besant, All in a Garden Fair, 1883

The City was where men went to work leaving their wives and family alone during the day.The City was where men went to work leaving their wives and family alone during the day.

I do hate the City of London! It is the only thing which ever comes between us.I do hate the City of London! It is the only thing which ever comes between us. Sir Arthur Conan Doyle, A Duet with an Occasional Chorus, 1899Sir Arthur Conan Doyle, A Duet with an Occasional Chorus, 1899

Symbols of the CitySymbols of the City

As the residential population moved out the City lost its identity as a community. As the residential population moved out the City lost its identity as a community. Instead the City came to be seen by novelists through its prominent characters. None Instead the City came to be seen by novelists through its prominent characters. None were more prominent that the Rothschilds, German Jews who made their wealth as were more prominent that the Rothschilds, German Jews who made their wealth as merchant bankers in the City of London and other European financial centres.merchant bankers in the City of London and other European financial centres.

It is a name which conjures up in the imagination visions of untold wealth and It is a name which conjures up in the imagination visions of untold wealth and unrivalled power, which appear so startling and amazing as to be more appropriate to unrivalled power, which appear so startling and amazing as to be more appropriate to romance than real life. It has become a household word synonymous with unbounded romance than real life. It has become a household word synonymous with unbounded riches, and is as familiar to the ears of the struggling artisan as to those of the banker riches, and is as familiar to the ears of the struggling artisan as to those of the banker or trader.or trader.

John Reeves, The Rothschilds: The Financial Rulers of Nations [London 1887]John Reeves, The Rothschilds: The Financial Rulers of Nations [London 1887]

Novelists largely ignored others in the City including the vast army of clerks, the huge Novelists largely ignored others in the City including the vast army of clerks, the huge variety of brokers and agents and the numerous merchants. They lacked the variety of brokers and agents and the numerous merchants. They lacked the combination of power, wealth and fame possessed by the Rothschilds. combination of power, wealth and fame possessed by the Rothschilds.

The Rothschilds in FictionThe Rothschilds in Fiction

Who hold the balance of the World?Who hold the balance of the World? ............

Jew Rothschild, and his fellow-Christian, Baring.Jew Rothschild, and his fellow-Christian, Baring.Lord Byron, Don Juan [1818/23]Lord Byron, Don Juan [1818/23]

Sidonia …deals with the fortunes of kings and empires, and regulates the most important Sidonia …deals with the fortunes of kings and empires, and regulates the most important affairs of nations, for it is the counting-house in the greatest of modern cities of the most affairs of nations, for it is the counting-house in the greatest of modern cities of the most celebrated of modern financiers. celebrated of modern financiers. Benjamin Disraeli, Tancred or The New Crusade [1847]Benjamin Disraeli, Tancred or The New Crusade [1847]

The Nathanheimers own all Europe and a very considerable share of America…The Nathanheimers own all Europe and a very considerable share of America…

Charles Lever, That Boy of Norcott’s [1869]Charles Lever, That Boy of Norcott’s [1869]

Mr Brehgert was considered to be a very good man of business, and was now regarded Mr Brehgert was considered to be a very good man of business, and was now regarded as being, in a commercial point of view, the leading member of the great financial firm of as being, in a commercial point of view, the leading member of the great financial firm of which he was a second partner. which he was a second partner. Anthony Trollope, The Way We Live Now [1874-5]Anthony Trollope, The Way We Live Now [1874-5]

The Jewish Financier becomes The Jewish Financier becomes a City Stereotypea City Stereotype

Israel Levi. ‘…an oily little Jew...’Israel Levi. ‘…an oily little Jew...’ Headon Hill, Guilty Gold [London 1896]Headon Hill, Guilty Gold [London 1896] Benjamin Cohen, ‘…ignorant, unmannerly vulgarian,…’Benjamin Cohen, ‘…ignorant, unmannerly vulgarian,…’ Francis Gribble, The Lower Life [London 1896]Francis Gribble, The Lower Life [London 1896] I. Z. Barnett, ‘…did not understand blood which was not his own,...’I. Z. Barnett, ‘…did not understand blood which was not his own,...’ Hilaire Belloc, Pongo and the Bull [London 1910]Hilaire Belloc, Pongo and the Bull [London 1910] Alfred Morrison, ‘…a Jew to his finger-tips,...’Alfred Morrison, ‘…a Jew to his finger-tips,...’ E. Phillips Oppenheim, Havoc [London 1912]E. Phillips Oppenheim, Havoc [London 1912] Isaac Benoliel, ‘Behind those old tired eyes of his, he thinks as the Isaac Benoliel, ‘Behind those old tired eyes of his, he thinks as the

East thinks.’East thinks.’ A. E. W. Mason, The Turnstile, 1912A. E. W. Mason, The Turnstile, 1912 Wallstein. ‘…the Jew mining magnate,...’Wallstein. ‘…the Jew mining magnate,...’ Gilbert Parker, The Judgement House [London 1913]Gilbert Parker, The Judgement House [London 1913]

The Financier personifies the The Financier personifies the whole Citywhole City

‘‘To describe them is unnecessary, for they have no part in our story, being only financiers of a certain To describe them is unnecessary, for they have no part in our story, being only financiers of a certain class, remarkable for the riches they had acquired by means that for the most part would not bear class, remarkable for the riches they had acquired by means that for the most part would not bear examination.’examination.’

H. Rider Haggard, The Yellow God : An Idol of Africa [1909]H. Rider Haggard, The Yellow God : An Idol of Africa [1909]

Caleb Otto-Smith. ‘...he seemed the embodiment of all that her City life had taught her to look upon with Caleb Otto-Smith. ‘...he seemed the embodiment of all that her City life had taught her to look upon with suspicion – greed of gold, speculation, and riches amassed by the toil and loss of others, and it might be suspicion – greed of gold, speculation, and riches amassed by the toil and loss of others, and it might be even at the cost of their souls as well!’even at the cost of their souls as well!’

Grace Pettman, A Study in Gold [1912]Grace Pettman, A Study in Gold [1912]

Increasingly these stereotypes were based not on real people such as the Rothschilds, or later figures like, Barney Increasingly these stereotypes were based not on real people such as the Rothschilds, or later figures like, Barney Barnato, but on the myth that City financiers were largely Jews and often of foreign origin. In reality City financiers were Barnato, but on the myth that City financiers were largely Jews and often of foreign origin. In reality City financiers were mainly British and mainly non-Jewish. Those prominent financiers convicted of fraud in the 20 years before the First mainly British and mainly non-Jewish. Those prominent financiers convicted of fraud in the 20 years before the First World War were English non-conformists, namely Jabez Balfour and Whitaker Wright.World War were English non-conformists, namely Jabez Balfour and Whitaker Wright.

William Powell Frith, The Race William Powell Frith, The Race for Wealth, 1880for Wealth, 1880

The subject of the paintings was a City financier, the Spider.The subject of the paintings was a City financier, the Spider. From his office in the City he promoted mining companies.From his office in the City he promoted mining companies. He lavishly entertained investors in his own home in the West End.He lavishly entertained investors in his own home in the West End. The mining companies turned out to be worthless.The mining companies turned out to be worthless. The Spider was prosecuted and convicted of fraud.The Spider was prosecuted and convicted of fraud. He was then sent to prison.He was then sent to prison.

Frith’s series of paintings were very popular when exhibited at the Royal Frith’s series of paintings were very popular when exhibited at the Royal Academy. Academy.

They caught the mood of the time as there had been a series of well They caught the mood of the time as there had been a series of well publicised financial scandals in the 1860s and 1870s, involving loans to publicised financial scandals in the 1860s and 1870s, involving loans to countries whose governments then defaulted and the flotation of countries whose governments then defaulted and the flotation of companies that failed soon afterwards. companies that failed soon afterwards.

The Spider and the FliesThe Spider and the Flies

The Spider at HomeThe Spider at Home

VictimsVictims

JudgementJudgement

RetributionRetribution

Perception becomes the new RealityPerception becomes the new Reality

‘‘There is no more remarkable being in the City of London, with its many curious There is no more remarkable being in the City of London, with its many curious trades and vocations , than the company promoter....the successful company trades and vocations , than the company promoter....the successful company promoters are enormously wealthy; they have palaces at Kensington or mansions in promoters are enormously wealthy; they have palaces at Kensington or mansions in Grosvenor Square, besides charming places in the country, and are usually aspirants Grosvenor Square, besides charming places in the country, and are usually aspirants – and, it may be, not unsuccessful aspirants – for parliamentary honours.’– and, it may be, not unsuccessful aspirants – for parliamentary honours.’

Montagu Williams, Round London: Down east and up west [1892]Montagu Williams, Round London: Down east and up west [1892]

One of the people Williams describes in detail is Leopold Stiff, a City financier. The One of the people Williams describes in detail is Leopold Stiff, a City financier. The description given of the career of Stiff follows exactly that of Frith’s series of paintings description given of the career of Stiff follows exactly that of Frith’s series of paintings in the Race for Wealth. There is no evidence that Stiff existed and no record of the in the Race for Wealth. There is no evidence that Stiff existed and no record of the Gull mine, which was one of the companies he was meant to have financed. Gull mine, which was one of the companies he was meant to have financed.

However, prison was not the fate that most believed awaited City financiers. The However, prison was not the fate that most believed awaited City financiers. The Married Women’s Property Acts of 1870 and 1882 had allowed bankrupts to pass Married Women’s Property Acts of 1870 and 1882 had allowed bankrupts to pass their wealth on to their wives. J. F. Sullivan thus propose a different fate. their wealth on to their wives. J. F. Sullivan thus propose a different fate.

Fun Magazine, 1880Fun Magazine, 1880

The Reality: Companies not The Reality: Companies not individuals dominated the City individuals dominated the City

Capital of Merchant Banks, 1914Capital of Merchant Banks, 1914

1.1. Rothschild: £6.4 m.Rothschild: £6.4 m.

2.2. Kleinwort: £4.4 m.Kleinwort: £4.4 m.

3.3. Schroder £3.5m.Schroder £3.5m.

4.4. Seligman: £3.0m.Seligman: £3.0m.

5.5. Gibbs: £1.2m.Gibbs: £1.2m.

6.6. Barings: £1.0m.Barings: £1.0m.

7.7. Brandts: £1.0m.Brandts: £1.0m.

8.8. Hambros: £1.0m.Hambros: £1.0m.

9.9. Lazards: £1.0m.Lazards: £1.0m.

10.10. Morgan Grenfell: £1.0m.Morgan Grenfell: £1.0m.N. Ferguson, The World’s Banker [London N. Ferguson, The World’s Banker [London

1998] p 8081998] p 808

Capital of Joint Stock Banks, 1904/5Capital of Joint Stock Banks, 1904/5

1.1. Bank of England: £44.5m.Bank of England: £44.5m.

2.2. Lloyds: £14.1m.Lloyds: £14.1m.

3.3. National Provincial: £13.1m.National Provincial: £13.1m.

4.4. Midland: £11.6m.Midland: £11.6m.

5.5. Bank of Ireland: £9.9m.Bank of Ireland: £9.9m.

6.6. London and County: £9.8m.London and County: £9.8m.

7.7. Barclays: £9.1m.Barclays: £9.1m.

8.8. London and Smiths: £8.5m.London and Smiths: £8.5m.

9.9. London Westminster: £7.8m.London Westminster: £7.8m.

10.10. Parr’s: £7.1m.Parr’s: £7.1m.P. Wardley, Anatomy of Big Business p278P. Wardley, Anatomy of Big Business p278

The Anonymity of Financial The Anonymity of Financial CapitalismCapitalism

The Companies Act of 1856, and subsequent revisions, made it The Companies Act of 1856, and subsequent revisions, made it relatively easy to form a company with the liability for any losses relatively easy to form a company with the liability for any losses limited to the investment made by the shareholders. limited to the investment made by the shareholders.

‘‘Every succeeding year exhibits an increase in the proportion of the Every succeeding year exhibits an increase in the proportion of the national wealth that has passed out of personal control into the national wealth that has passed out of personal control into the control of joint-stock companies...the great industries of the country control of joint-stock companies...the great industries of the country are passing rapidly out of private hands into the maelstrom of joint-are passing rapidly out of private hands into the maelstrom of joint-stock management...one by one the merchant princes of a stock management...one by one the merchant princes of a generation ago are either retiring from the field, or are converting generation ago are either retiring from the field, or are converting themselves into companies.’themselves into companies.’

Blackwood’s Magazine 137 [1885]Blackwood’s Magazine 137 [1885]

The TransformationThe Transformation

Though a Rothschild you may beThough a Rothschild you may be In your own capacity,In your own capacity, As a company you’ve come to utter sorrowAs a company you’ve come to utter sorrow But the Liquidators say,But the Liquidators say, Never mind – you needn’t pay, Never mind – you needn’t pay, So you start another Company tomorrow! So you start another Company tomorrow! The Song of the Company Promoter in The Song of the Company Promoter in Gilbert and Sullivan, Utopia Limited, 1893. Gilbert and Sullivan, Utopia Limited, 1893.

Change 2Change 2 By the late 19By the late 19thth century the City was no longer recognisable as a century the City was no longer recognisable as a

community. community.

The City had also become too complex, too large and too remote to be The City had also become too complex, too large and too remote to be capable of being personified by a single individual.capable of being personified by a single individual.

The great City dynasties, including the Rothschilds, were no longer the The great City dynasties, including the Rothschilds, were no longer the dominant force that they had once been.dominant force that they had once been.

The Barings had to rescued from financial collapse in 1890 by intervention The Barings had to rescued from financial collapse in 1890 by intervention co-ordinated by the Bank of England.co-ordinated by the Bank of England.

What replaced the City as a Place and the City as the haunt of powerful What replaced the City as a Place and the City as the haunt of powerful People was the identification of the City with the activities that took place People was the identification of the City with the activities that took place there: the Pursuits. there: the Pursuits.

The City and CapitalismThe City and Capitalism London is the chief abode of the great god Money, whose throne, visible to London is the chief abode of the great god Money, whose throne, visible to

all men, is in the heart of the City. From Queen Street and Guildhall to all men, is in the heart of the City. From Queen Street and Guildhall to Gracechurch Street and Bishopsgate, from London Bridge to London Wall, Gracechurch Street and Bishopsgate, from London Bridge to London Wall, lies a region in which the temples of the god cluster together in thick lies a region in which the temples of the god cluster together in thick profusion. From here the greatest and the most numerous of his activities profusion. From here the greatest and the most numerous of his activities are conducted: for London, in spite of the rivalry of New York and the are conducted: for London, in spite of the rivalry of New York and the growing importance of Paris and Berlin as money centres, is still paramount growing importance of Paris and Berlin as money centres, is still paramount as a headquarters of exchange and banking.as a headquarters of exchange and banking.

C. C. Turner, ‘Money London’ 1902C. C. Turner, ‘Money London’ 1902

Though Trade and Shipping remained central to the City of London before Though Trade and Shipping remained central to the City of London before 1914 it was global finance with which it became closely identified. The 1914 it was global finance with which it became closely identified. The London Stock Exchange was the largest and most important in the world London Stock Exchange was the largest and most important in the world and the London money market was the means through which the world’s and the London money market was the means through which the world’s banks lent to and borrowed from each other. The City had become the banks lent to and borrowed from each other. The City had become the clearing house for the world economy. clearing house for the world economy.

BankersBankers Deposit banking in Britain became safe and boring in the late 19Deposit banking in Britain became safe and boring in the late 19 thth

century and its importance was widely appreciated.century and its importance was widely appreciated. Bank failures became increasingly rare as the numerous small banks Bank failures became increasingly rare as the numerous small banks

that frequently failed were replaced by a few large banks that that frequently failed were replaced by a few large banks that withstood every crisis and so were generally trusted.withstood every crisis and so were generally trusted.

Merchant bankers were also considered respectable because they did Merchant bankers were also considered respectable because they did not trade stocks and shares and were heavily engaged in the finance not trade stocks and shares and were heavily engaged in the finance of international trade, in which the City occupied a dominant position. of international trade, in which the City occupied a dominant position.

In Britain ‘Banker’ became a term of respect with even its own In Britain ‘Banker’ became a term of respect with even its own professional association. The Institute of Bankers, 1879.professional association. The Institute of Bankers, 1879.

That was not the case in the USA where numerous banks continued to That was not the case in the USA where numerous banks continued to fail in every financial crisis and the investment bankers of Wall Street fail in every financial crisis and the investment bankers of Wall Street were distrusted because of their wealth, power and perceived ability to were distrusted because of their wealth, power and perceived ability to manipulate markets in favour of themselves. manipulate markets in favour of themselves.

Bankers became respectable in Bankers became respectable in FictionFiction

George goes to sleep at a bank from ten to four each day, except George goes to sleep at a bank from ten to four each day, except Saturdays, when they wake him up and put him outside at two.Saturdays, when they wake him up and put him outside at two.

Jerome K. Jerome, Three Men in a Boat, 1889Jerome K. Jerome, Three Men in a Boat, 1889

He was it must be remembered a mere banker – a person in the City where He was it must be remembered a mere banker – a person in the City where honesty is esteemed above the finer qualities of charity and benevolence.honesty is esteemed above the finer qualities of charity and benevolence.

H. S. Merriman, Roden’s Corner, 1898H. S. Merriman, Roden’s Corner, 1898

There is a cold impersonality about a bankThere is a cold impersonality about a bank P. G. Wodehouse, Psmith in the City, 1910P. G. Wodehouse, Psmith in the City, 1910

Novelists increasingly recognised bankers , along with merchants and many Novelists increasingly recognised bankers , along with merchants and many others in the City, including stockbrokers, as valued but rather boring and others in the City, including stockbrokers, as valued but rather boring and faceless members of society, though lacking in humanity. faceless members of society, though lacking in humanity.

The Company Promoter The Company Promoter becomes the Symbol of the Citybecomes the Symbol of the City

For novelists the Company Promoter came to represent the City of For novelists the Company Promoter came to represent the City of London in the 20 years before the First World War. The result was a very London in the 20 years before the First World War. The result was a very negative portrayal of the City. negative portrayal of the City.

The City was presented as a place where innocent investors were duped The City was presented as a place where innocent investors were duped out of their money by crooked financiers, through being persuaded to out of their money by crooked financiers, through being persuaded to buy shares in worthless companies whether at the time of issue or buy shares in worthless companies whether at the time of issue or subsequently on the London Stock Exchange. subsequently on the London Stock Exchange.

Such activities were more readily believed if they could be attributed to a Such activities were more readily believed if they could be attributed to a powerful group of bankers and brokers set apart from the rest of society powerful group of bankers and brokers set apart from the rest of society by being foreign, especially German, and/or following a different religion, by being foreign, especially German, and/or following a different religion, notably being Jewish. Such views were in keeping with widespread fears notably being Jewish. Such views were in keeping with widespread fears of an alien presence in London through the arrival of Jewish immigrants of an alien presence in London through the arrival of Jewish immigrants from Eastern Europe from the 1890s onwards. There was also from Eastern Europe from the 1890s onwards. There was also international tension caused by the rise of a unified Germany challenging international tension caused by the rise of a unified Germany challenging British power before 1914.British power before 1914.

Company Promoters In FictionCompany Promoters In Fiction Richard Rawlings in Richard Rawlings in Robert Bell, The Ladder of Gold (1850)Robert Bell, The Ladder of Gold (1850) Davenport Dunn in Davenport Dunn in Charles Lever, Davenport Dunn (1859)Charles Lever, Davenport Dunn (1859) Mr Merdle in Mr Merdle in Charles Dickens, Our Mutual Friend (1864/5)Charles Dickens, Our Mutual Friend (1864/5) Lawrence Barbour in Lawrence Barbour in Charlotte Riddell, The Race for Wealth (1866)Charlotte Riddell, The Race for Wealth (1866) Lord Staggerton in Lord Staggerton in Laurence Oliphant, Piccadilly, 1870Laurence Oliphant, Piccadilly, 1870 Augustus Melmotte in Augustus Melmotte in Anthony Trollope, The Way We Live Now (1874/5)Anthony Trollope, The Way We Live Now (1874/5) Gabriel Cassilis in Gabriel Cassilis in Walter Besant and James Rice, The Golden Butterfly (1877)Walter Besant and James Rice, The Golden Butterfly (1877) Tommy Gallaway in Tommy Gallaway in Walter Besant, All in a Garden Fair,1883Walter Besant, All in a Garden Fair,1883 Geoffrey Defoy in Geoffrey Defoy in Frederick Wicks, The Veiled Hand, 1892Frederick Wicks, The Veiled Hand, 1892

James Bond in James Bond in Mrs Aylmer Gowing, Gods of Gold, 1896Mrs Aylmer Gowing, Gods of Gold, 1896 Horace Vardon in Horace Vardon in Headon Hill, Guilty Gold,1896Headon Hill, Guilty Gold,1896 Benjamin Cohen and Arnold Brabant in Benjamin Cohen and Arnold Brabant in Francis Gribble, The Lower Life,1896Francis Gribble, The Lower Life,1896 William Massarene in William Massarene in Ouida, The Massarenes, 1897Ouida, The Massarenes, 1897 Frank Allington in Frank Allington in E. F. Benson, Mammon and Co, 1899E. F. Benson, Mammon and Co, 1899 Stormont Thorpe in Stormont Thorpe in H. Frederic, The Market Place, 1899H. Frederic, The Market Place, 1899 Sutton Mandeville in Sutton Mandeville in Major Arthur Griffiths, Ford’s Folly Ltd, 1900Major Arthur Griffiths, Ford’s Folly Ltd, 1900 Wallaby-Jones in Wallaby-Jones in S. Kuppord, A Fortune From The Sky, 1903S. Kuppord, A Fortune From The Sky, 1903 Horatio Slynge in Horatio Slynge in Guy Thorne and Leo Custance, Sharks, 1904Guy Thorne and Leo Custance, Sharks, 1904 Bruce Bowring in Bruce Bowring in Arnold Bennett, the Loot of Cities, 1905Arnold Bennett, the Loot of Cities, 1905 William Dickson in William Dickson in Florence Warden, The Financier’s Wife, 1906Florence Warden, The Financier’s Wife, 1906 Edward Ponderevo in Edward Ponderevo in H. G. Wells, Tono Bungay, 1909H. G. Wells, Tono Bungay, 1909 Caleb Otto-Smith in Caleb Otto-Smith in Grace Pettman, A Study In Gold, 1912Grace Pettman, A Study In Gold, 1912 Scarlet Trent in Scarlet Trent in E. Phillips Oppenheim, A Millionaire of Yesterday, 1912E. Phillips Oppenheim, A Millionaire of Yesterday, 1912 Sir William Pilken and George Tremain in Sir William Pilken and George Tremain in Joseph Hocking, God and Mammon, 1912Joseph Hocking, God and Mammon, 1912 Rudyard Byng in Rudyard Byng in Gilbert Parker, The Judgement house, 1913Gilbert Parker, The Judgement house, 1913 Clifford Matheson in Clifford Matheson in Max Rittenberg, Swirling Waters,1913Max Rittenberg, Swirling Waters,1913 Giuseppe Guelfo and Sir Charles Olcott in Giuseppe Guelfo and Sir Charles Olcott in William Le Queux, Sins of the City, 1914William Le Queux, Sins of the City, 1914 Swelliger and Fiedman in Swelliger and Fiedman in Edgar Wallace, The Admirable Carfew, 1914Edgar Wallace, The Admirable Carfew, 1914

ExamplesExamples

Horace Vardon occupies a unique position in the City of London. Disliked, mistrusted – aye, Horace Vardon occupies a unique position in the City of London. Disliked, mistrusted – aye, even hated – by the solid, old fashioned magnates of the financial world, he was feared and even hated – by the solid, old fashioned magnates of the financial world, he was feared and bowed down to as well, because of the power he wielded and the number and magnitude of his bowed down to as well, because of the power he wielded and the number and magnitude of his undertakings. He was the Veiled Prophet of the City, sitting himself in the shade, and pulling the undertakings. He was the Veiled Prophet of the City, sitting himself in the shade, and pulling the strings of infinite combinations that sometimes moved the uttermost ends of the earth.strings of infinite combinations that sometimes moved the uttermost ends of the earth.Headon Hill, Guilty Gold: A Romance of Financial Fraud and City Crime , 1896Headon Hill, Guilty Gold: A Romance of Financial Fraud and City Crime , 1896

He was still unknown in the higher circles of the City; not even his status as Pettifer’s partner He was still unknown in the higher circles of the City; not even his status as Pettifer’s partner could gain him the ears of those solid, shrewd fathers of finance who look askance at every new could gain him the ears of those solid, shrewd fathers of finance who look askance at every new man, and are deaf to the most persuasive stranger’s tongueman, and are deaf to the most persuasive stranger’s tongueMajor Arthur Griffiths, Ford’s Folly Ltd, 1900Major Arthur Griffiths, Ford’s Folly Ltd, 1900

There are no worse things to be said of company-promoting than there are of any other sort of There are no worse things to be said of company-promoting than there are of any other sort of enterprise...only it is work which is done on a big scale, and so the ups and downs are great, enterprise...only it is work which is done on a big scale, and so the ups and downs are great, and the noise is great at the rise and fall...Its the bigness of the profits and the losses in City and the noise is great at the rise and fall...Its the bigness of the profits and the losses in City enterprises that makes people talk so much louder about them than about others.enterprises that makes people talk so much louder about them than about others.Florence Warden, The Financier’s Wife [London 1906]Florence Warden, The Financier’s Wife [London 1906]

Results: Anti-Semitism, Anti-Results: Anti-Semitism, Anti-Capitalism and ImperialismCapitalism and Imperialism

There was some recognition in literature that not all in the City were crooked; that There was some recognition in literature that not all in the City were crooked; that some companies turned out to be successful; that some shares rose in value; that some companies turned out to be successful; that some shares rose in value; that some Jews were trustworthy and honourable; and that some foreigners played a some Jews were trustworthy and honourable; and that some foreigners played a vital role. However, that was dwarfed by the negative imagery found in most vital role. However, that was dwarfed by the negative imagery found in most novels.novels.

The City of London remained a byword for greed, corruption, and dishonourable The City of London remained a byword for greed, corruption, and dishonourable conduct whenever the subject of company promotion surfaced, with the only fitting conduct whenever the subject of company promotion surfaced, with the only fitting punishment for those who made their living by such means being a sudden and violent punishment for those who made their living by such means being a sudden and violent death.death.Max Pemberton, The Impregnable City, 1895Max Pemberton, The Impregnable City, 1895

Imperialism was the product of Capitalism and at its core lay the activities of the City of Imperialism was the product of Capitalism and at its core lay the activities of the City of London which German Jewish financiers were believed to control – or so the novels London which German Jewish financiers were believed to control – or so the novels would suggest.would suggest.

Result: Conspiracy TheoryResult: Conspiracy Theory

These great businesses – banking, broking, bill discounting, loan floating, company promoting – form the central ganglion of international capitalism… United by the strongest bonds of organisation, always in closest and quickest touch with one another, situated in the very heart of the business capital of every state, controlled, so far as Europe is concerned, chiefly by men of a single and peculiar race, they are in a unique position to manipulate the policy of nations. No great quick direction of capital is possible save by their consent and through their agency.

J.A. Hobson, Imperialism [1902]J.A. Hobson, Imperialism [1902]

The power of fiction to influence contemporary views?The power of fiction to influence contemporary views?

Change 3Change 3 After the First World War the City of London was increasingly challenged by After the First World War the City of London was increasingly challenged by

New York as a rival financial centre. New York as a rival financial centre. After the First World War it was Wall Street not the City that became the After the First World War it was Wall Street not the City that became the

focus of media attention, especially the Wall Street Crash of 1929.focus of media attention, especially the Wall Street Crash of 1929. After the First World War greater self regulation and then government After the First World War greater self regulation and then government

control removed many of the excesses that had fuelled hostility to the City in control removed many of the excesses that had fuelled hostility to the City in the past. The City became less volatile and less attractive to foreigners.the past. The City became less volatile and less attractive to foreigners.

British banks also withstood successive financial crises in the 20British banks also withstood successive financial crises in the 20thth century century and so gained a reputation for stability that was envied the world over. They and so gained a reputation for stability that was envied the world over. They did not lose that reputation until 2007/8. Instead, they were criticised for did not lose that reputation until 2007/8. Instead, they were criticised for their conservative behaviour.their conservative behaviour.

Company promoters as a distinct group disappeared because their business Company promoters as a distinct group disappeared because their business was taken over by the merchant banks.was taken over by the merchant banks.

The result was that the City ceased to attract the interest of novelists.The result was that the City ceased to attract the interest of novelists.

The City in Fiction after the First The City in Fiction after the First World WarWorld War

(Sir Julian Bott.) He had sprung from the middle classes, had commenced life as a (Sir Julian Bott.) He had sprung from the middle classes, had commenced life as a country stockbroker, inaugurated a Trust with an attractive name, bought up country stockbroker, inaugurated a Trust with an attractive name, bought up commercial undertakings one after the other, nearly every one of which had turned out commercial undertakings one after the other, nearly every one of which had turned out to be successful. He had weathered two periods of depression and come out to be successful. He had weathered two periods of depression and come out unscathed. The confidence which the British public is slow to give to a financier pure unscathed. The confidence which the British public is slow to give to a financier pure and simple had become his by right.and simple had become his by right.

E. Phillips Oppenheim, The Bank Manager, 1934E. Phillips Oppenheim, The Bank Manager, 1934

(Titian Woolacombe.) If you must go into a Bank, he said, I can’t stop it. God knows (Titian Woolacombe.) If you must go into a Bank, he said, I can’t stop it. God knows you’re not fit for anything else. A duller Boy, a Boy more exquisitely unfitted for any of you’re not fit for anything else. A duller Boy, a Boy more exquisitely unfitted for any of the higher branches of human activity, I have never seen.the higher branches of human activity, I have never seen.

Ronald Fraser, Financial Times, 1942Ronald Fraser, Financial Times, 1942

After the Second World War the banker and stockbroker joined lawyers and doctors as After the Second World War the banker and stockbroker joined lawyers and doctors as trusted members of the community in the fiction of the time. The City was also trusted members of the community in the fiction of the time. The City was also generally ignored by fiction writers because it generated little to excite the public generally ignored by fiction writers because it generated little to excite the public through speculative bubbles, financial frauds, or the rise and fall of extremely wealthy through speculative bubbles, financial frauds, or the rise and fall of extremely wealthy individuals.individuals.

Conclusion 1Conclusion 1 The business of the City of London is based on promises whether that involved The business of the City of London is based on promises whether that involved

paper money, stocks and bonds, insurance contracts or the constant buying and paper money, stocks and bonds, insurance contracts or the constant buying and selling and lending and borrowing that took place in its markets and Exchanges. selling and lending and borrowing that took place in its markets and Exchanges.

This exposed the City to public attack when these promises failed to materialise, This exposed the City to public attack when these promises failed to materialise, which they inevitably did from time to time. which they inevitably did from time to time.

It was these failures that captured the imagination of novelists, especially the most It was these failures that captured the imagination of novelists, especially the most spectacular as they involved a sudden loss of fortune, a run on bank followed by its spectacular as they involved a sudden loss of fortune, a run on bank followed by its closure, the collapse of great companies and the suicide, imprisonment or closure, the collapse of great companies and the suicide, imprisonment or bankruptcy of prominent individuals. bankruptcy of prominent individuals.

Like the City itself novelists thrive on volatility, and that is what was delivered in Like the City itself novelists thrive on volatility, and that is what was delivered in London before 1914. There was almost a City novel genre in the 20 years before the London before 1914. There was almost a City novel genre in the 20 years before the First World War. Another now appears to be developing in the wake of the Global First World War. Another now appears to be developing in the wake of the Global Financial Crisis of 2007/8. However, that one will require the fuel of high profile Financial Crisis of 2007/8. However, that one will require the fuel of high profile criminal prosecutions followed by imprisonment or suicide to even begin to emulate criminal prosecutions followed by imprisonment or suicide to even begin to emulate the City’s place in the Literature of the past.the City’s place in the Literature of the past.

Conclusion 2Conclusion 2 As long as the City of London is a complex and constantly evolving global financial As long as the City of London is a complex and constantly evolving global financial

centre, attractive to foreigners, it cannot expect to feature positively in works of centre, attractive to foreigners, it cannot expect to feature positively in works of literature. There will always be elements in the City that generate an adverse public literature. There will always be elements in the City that generate an adverse public reaction which is then picked up on by novelists. The City of London and Casino reaction which is then picked up on by novelists. The City of London and Casino Capitalism are interchangeable terms but of little value without precision being Capitalism are interchangeable terms but of little value without precision being attached to their meaning.attached to their meaning.

As long as the perception generated in fiction does not result in government As long as the perception generated in fiction does not result in government intervention that restricts the ability of the City to operate, then the consequences of intervention that restricts the ability of the City to operate, then the consequences of how the City is perceived are of little importance, as was the case before the First how the City is perceived are of little importance, as was the case before the First World War. World War.

The task of a novelist is to write well and to appeal to readers and that requires The task of a novelist is to write well and to appeal to readers and that requires imagination, literary skill and artistic licence, not factual accuracy.imagination, literary skill and artistic licence, not factual accuracy.

However, once government policy becomes a product of perception not reality then However, once government policy becomes a product of perception not reality then the City does have cause for concern.the City does have cause for concern.

Postscript ?Postscript ? The final word on the City of London’s place in Literature The final word on the City of London’s place in Literature

should, perhaps, go to the poet, Lord Byron.should, perhaps, go to the poet, Lord Byron.

O Gold! I still prefer thee unto paperO Gold! I still prefer thee unto paper

Which makes bank credit like a bank of vapour.Which makes bank credit like a bank of vapour.

Lord Byron, Don Juan, 1818/23Lord Byron, Don Juan, 1818/23

To those who write novels or compose poetry the City of London To those who write novels or compose poetry the City of London

will always be‘...like a bank of vapour.’will always be‘...like a bank of vapour.’

As a society we need to appreciate both Literature and the City of As a society we need to appreciate both Literature and the City of London but not draw conclusions about the latter from the former.London but not draw conclusions about the latter from the former.

Postscript?Postscript? Or, perhaps, the last word should go to the economist, J. M. Keynes.Or, perhaps, the last word should go to the economist, J. M. Keynes. I am sure that the power of vested interests is vastly exaggerated compared I am sure that the power of vested interests is vastly exaggerated compared

with the gradual encroachment of ideas. Not, indeed, immediately, but after with the gradual encroachment of ideas. Not, indeed, immediately, but after a certain interval; for in the field of economic and political philosophy there a certain interval; for in the field of economic and political philosophy there are not many who are influenced by new theories after they are twenty-five are not many who are influenced by new theories after they are twenty-five or thirty years of age, so that the ideas which civil servants and politicians or thirty years of age, so that the ideas which civil servants and politicians and even agitators apply to current events are not likely to be the newest. and even agitators apply to current events are not likely to be the newest. But, soon or late, it is ideas, not vested interests, which are dangerous for But, soon or late, it is ideas, not vested interests, which are dangerous for good or evil.good or evil.

J. M. Keynes, The General Theory of Employment, Interest and Money, J. M. Keynes, The General Theory of Employment, Interest and Money, 1936.1936.

Keynes was making the claim that it was the work of long-dead economists Keynes was making the claim that it was the work of long-dead economists that influenced policy makers. However, the work of novelists , both dead that influenced policy makers. However, the work of novelists , both dead and living, was, arguably, even more powerful in forming the views and and living, was, arguably, even more powerful in forming the views and attitudes of the population as a whole. attitudes of the population as a whole.