The first private bank in Surrey was almost certainly Haydon’s of Guildford which was started in 1765 and continued in business for nearly 120 years, before failing in 1883. Other successful private banks appeared in all of the major market towns in Surrey: Godalming, Farnham, Chertsey, Kingston, Reigate, Dorking and Croydon.
The majority of private banks in Surrey were established in the twenty year period of 1790-1810. The country provincial banks only lasted for just over a hundred years, but in that time they were the chief source of investment for the expanding businesses of the industrial revolution.
The Bank of England, early on in its existence, had obtained a monopoly of joint-stock banking - no other bank could have more than 6 partners. The 1826 Bank Act removed this monopoly, outside of a 65 mile ‘exclusion zone’ around London, and joint-stock banks started to be formed. These started to appear in Surrey (mainly at first in what is now Greater London) in the mid-to-late 1830s after a 1833 Act had removed the exclusion zone. The growth of these was rapid; By 1867 for example, the London & County Joint-Stock Bank had branches in Croydon, Dorking, Epsom, Farnham, Guildford, Kingston & Richmond.
In order to compete, some of the private banks also started to develop networks of branches - notably Thomas Ashby & Sons, and Mangles Brothers. J & C Simonds (a Reading-based bank) had also spread from Berkshire to the south-west corner of Surrey, with branches at Camberley, and York Town, Frimley. As the joint-stock banks expanded, the private banks, with note issue restricted, its value diminished by inflation and increased circulation of Bank of England notes, were subject to failures and take-overs and numbers steadily declined.
The growth of joint-stock banks and multi-branch private banks coincided with the development of the railways - which arrived at Woking Common in 1839, Guildford in 1845 and Godalming, Dorking and Farnham in 1849. Whilst it was the evolving financial situation which drove this change, the ability, which the railway brought, to travel quickly and easily around the country undoubtedly encouraged and speeded it.
Of the twenty-nine private banks that started up in Surrey, two were absorbed into Barclays Bank, two into Lloyds Bank and three into National & Westminster Bank (Nat West). Three were absorbed into the English Joint Stock Bank which subsequently failed. All of the others failed and/or ceased trading.
The bankers of Surrey were mostly distinguished businessmen, and were very influential in their areas, often being involved in local politics. Some of the more successful banks had several of their partners going on to become mayor of the town.
BANKING IN THE MARKET TOWNS
During the eighteenth and nineteenth centuries Surrey was a largely agricultural county. Unlike many towns of the North and Midlands there were no large industrial plants, mines or docks to bring prosperity to the area. The majority of trade was carried out in a number of market towns. Because banks were dependent for their trade upon the prosperity of the local area, the banks that developed in Surrey were likewise relatively small.
Historically, a market was a place where a number of traders met at fairly frequent intervals to do business under certain rules and conditions. Meetings at fairly long intervals such as three, six or twelve months were known as fairs. Legally a market was the property of and source of income to the person on whose land it took place, or to whom it had been granted. Markets and fairs in England were usually granted by the crown to the lord of the manor. The charter which granted the franchise, gave the owner the power to collect tolls on goods sold or displayed and fees for the use of stalls. In return it imposed the obligation to see that the King’s peace was maintained. Most markets have now passed into the hands of the towns in which they were located.
Return to Banknotes Home Page