[From Manx Soc Vol 17, Clay's Currency]

CHAPTER VII.

ON THE PAPER MONEY OF THE ISLE OF MAN.

SECTION II: BANKS AND BANKING.

"It is more easy to write about money than to obtain it; and those who gain it jest much at those who only know how to write about it."
" Banks and public funds are very gross material things, yet they very nearly express the essential facts of modern civilization. They mean money-they mean security-they mean debt; and more or less involve all the great problems of economy."

THE BANKS OF THE ISLE OF MAN.

HE ISLE OF MAN BANK commenced business at Castletown, in May, in the year 1802. The partners were Mark H. Quayle, George Quayle, John Taubman, and James Kelly. These constituted the firm till 1805. Then the bank was carried on by George Quayle alone, until January Ist, 1811; afterwards Geo. Quayle, Edward Cotteen, and Patrick Townsend Lightfoot continued it till about 1816, when Edward Cotteen retired; and the above George Quayle and P. T. Lightfoot conducted it to its close in November, 1818. The first set of partners of this bank issued the Isle of Man Bank Penny and Halfpenny Tokens (vide photo. plate iv., figs. 1, 2, 3, 4), although they have usually been attributed to George Quayle alone. I am indebted for the above information to the kindness of M. H. Quayle, Esq., Clerk of the Rolls, through J. F. Crellin, Esq., M.H.K., Orrysdale.

Edward Gawne's Bank.-The bank of Edward Gawne, Esq. commenced issuing one pound notes about December 6th) 1816, and continued successful until the period of his death on the 4th October, 1837. The same banker issued cards for fractional parts of a pound before 1816, dated from Mount Gawne. The signatures on some of these cards were proved to have been forged.

Ramsey Isle of Man Bank. - Llewellyn McWhannell's Bank. This bank existed for a considerable period before licences were required; according to one of his card notes, McWhannell was a banker in 1810. The first notice of it in the Rolls Court is in 1817, where it is found also up to 1826 ; then there is no Rolls account of it for 1827 and 1828. It is, therefore, difficult to say when the said bank closed; but probably it was sometime in 1829.

The notes and cards for 5s., 2s. 6d., and Is. of this firm will be found amongst the copperplate illustrations of this volume. The use of the original plates was kindly granted by the present Mr. Mc.Whannell, of Ramsey, son of the above banker, for which the author wishes to express his thanks.

John Spittall & Co.'s Bank.-The bank of Andrew and John Spittall, to issue notes for one pound and also one guinea. The firm was "John Spittall & Co." This bank had a licence in October, 1817, and again in October, 1818. After the latter date no further application was made, so that in all probability it closed sometime in 1819, as the last licence extended no further. This bank is known to have been in operation in 1809, and probably it might have been so, earlier than that date.

The Douglas and Isle of Man Bank.-A private bank; the partners being Henry, John, and James Holmes. It commenced in the year 1815, and was carried on until the 7th November, 1853, when it came to an end on the death of the youngest and last surviving partner..

On the stoppage of Messrs. Holmes' bank in 1853, the bank of Messrs. Dumbell, Son, & Howard was established under the same title, and continues to conduct banking business. It is also a private bank.

The Isle of Man Bank, of Messrs. Wulff and Forbes, was commenced in the year 1827, and was converted into The Isle of Man Joint Stock Banking Company in the year 1836, which suspended payment in August, 1843; and was wound up under the directions of the Court of Chancery.

It would perhaps be interesting here to record one of the greatest commercial disasters, that up to that time had befallen the Island, by the failure of the Joint Stock Banking Company in August, 1843. Its effect on the locality was unparalelled in the annals of banking, if we except the Douglas and Heron Bank at Ayre many years before. In the latter case, it was found, notwithstanding the disaster, that after the shock was over, land had considerably improved during the profusion of money which had been fallaciously poured into the country, enabling new settlers who had money, to follow out what had been thus commenced; and hence, after all, the improvement of the country was promoted rather than retarded, by an event which threatened to overwhelm not only Ayrshire but the greater part of Scotland in the gulf of bankruptcy. Whether the same results attended the Isle of Man Joint Stock Companys failure, I leave to others to explain. The prospectus of this latter bank was issued in 1836; it was to consist of 10,000 shares of £5 each; had one hundred and forty-six shareholders ; the title, " The Isle of Man Joint Stock Banking Company.." and was licensed by the Governor, April 6th, 1837. Wulff and Forbes' Bank, established in 1826, was merged into this joint stock bank, and a bonus of £2,500 given for the transfer, &c. Mr. Forbes was appointed manager; Mr. Wulff a director; Messrs. Williams, Deacon, & Co. were the London agents. This bank was closed, as before stated, in August, 1843.

The Isle of Man and Liverpool Banking Company commenced business in Douglas in the year 1836, and was wound up in the year 1838, from a want of sufficient capital to carry on business in both places. On the withdrawal of this company from business, many of the Manx shareholders in the company succeeded in establishing The Isle of Man Commercial Banking Company, which was got up for the purpose of doing business with the Island only. This bank was obliged to suspend payment during the- money panic of 1848, and its affairs were wound up by the Directors.

Bank of Mona.- On the Commercial Banking Company ceasing to carry on business, a branch of the City of Glasgow Bank was established in its place, under the title of the Bank of Mona, which has continued to do business over since.

After the promulgation, in 1865, of the Act of Tynwald, permitting the establishment of Limited. Liability Companies, The Isle of Man Banking Company Limited was established in November of that year, and continues to do business.

The result of the Tynwald Act of 1817, regulating banking houses by licence is somewhat curious, and worth publicity. The following list (for which I am indebted to the kindness of M. H. Quayle, Esq., Clerk of the Rolls) presents to the reader the names of the parties, and the amount for which the licence was claimed, in each year; and shows (with an occasional exception or two) a progressive increase from £33,100 in the first year, to £77,000 in the year just passed (1868).

Bank Licences Granted, since October 21, 1817.

In 1817:
Andrew Spittall and John Spittall, 10,000
(Firm, John Spittall & Co.)
Edward Forbes 5,000
James Holmes, Henry Holmes, junior, and John Holmes 12,000
Llewellyn Mc.Whannell 1,400
Edwd. Gawne (Nov. 1) 5,000
-33,400

[All the applicants at this time applied for issues of both £1 and Guinea Notes.]

In 1821:
Holrnes 17,000 -
Gawne 10,000
Mc.Whannell 5,000
-32,000

In 1826:
Holmes 20,000
Gawne 10,000
Mc.Whannell 5,000
-35,000

In 1829
Holmes 15,000
Gawne 10,000
Wulff and Forbes 10,000
-35,000

In 1835: The same ............... 35,000

In 1836:
Holmes 10,000
Gawne 10,000
Isle of Man and Liverpool Joint Stock Banking Company 10,000
Isle of Man Joint Stock Banking Company 15,000
-45,000
[No Guinea Notes have been applied for since this year.)

In 1842:
Holmes 12,000
Joint Stock Bank 10,000
Commercial Banking Company 13,500
-35,500

In 1845:
Commercial Banking Company 21,000
Holmes 25,000
-49,000

In 1847:
Holmes 12,000
Commercial (for £1 and £5 notes) 19,850
--31,850

[In 1849 the Bank of Mona applied for £1 and £5 notes, and still continues.]

In 1854:
Dumbell, Howard and Son 19,000
Bank of Mona . 30,000
Holmes 12,000
--61,000

In 1868:
Isle of Man Banking Company Limited 28,000
Bank of Mona 27,000
Dumbell, Son, and Howard 22,000
--77,000

SAVINGS BANKS.

With regard to Savings Banks in the Island, I may mention the following:-

The Isle of Man Bank for Savings (Douglas) shows a very creditable position. The average number of depositors for the last four years amounts to 1,100; the average amount of deposits to £29,850. Of these depositors there are-

The average surplus balance of the four years is £2,363. On the whole, this bank has worked satisfactorily: the number of depositors has varied very little in each year; and the amount of the sums deposited has been about the same.

This is, I. believe, the only Savings Bank in the island, excepting the.Post-office Savings Banks; although Train (p. 83) speaks of Savings Banks being established in Douglas and Castletown. "The deposits in the former," he says, "for 1842, were £9,129, with 562 depositors." Of the other (at Castletown) mentioned by Train, I can get no information-not even on the fact of its existence-beyond what is mentioned by that author.

I refer the reader with pleasure to the various copies of notes (illustrating this part of the subject), from original plates, as well as to the following representations in type, the former of which have been kindly lent me for the purpose by their present owners.

First Notes issued in the Island.

Nothing.on Rev.

This is a forgery.

On the Rev. Triune, Motto, and Title of Bank. Vignette. above and below.

Vide copperplate.

It is a curious fact that in Ireland at the same period there were issues of similar notes for very small sums, which not unfrequently found their way to the Isle of Man. The one copied below shows to what necessities the public were reduced, to issue notes for sums so small as threepence halfpenny.