Irish Private Banks - Early Financial Instruments

[DOC]

This posting string relates to financial instuments, including banknotes, of the early Irish bankers operating prior to 1800. Few items survive and it is hoped that new material will come to light to provide more information about the early Irish banks.

Modern banking in Ireland originated in the late 17th century with the formation of private banks by merchants and goldsmiths, principly in Dublin but also in Cork. These banks implemented many of the innovations of the London goldsmith-bankers, issuing notes payable to the bearer on demand and allowing depositors to direct payments against their deposits.

Here is an example of a drawn or ‘pray pay’ note for £28 1s 4d, drawn in Dublin in 1713 in favour of James Swift upon the London goldsmith-banker Francis Child at 3 days sight. The signature of the person who drafted the note is unclear. This is one of the earliest known surviving financial instruments with an Ireland association.

[callahiljo]

Doc, do you know where this item is now to be found? I used the scan in both editions of PMI having obtained it from Bob Blake, Unfortunately he is no longer around to tell me where he got it from. Maybe the original item is in the National Museum but in fact I have only ever seen the scan.

[DOC]

Doc, do you know where this item is now to be found? I used the scan in both editions of PMI having obtained it from Bob Blake, Unfortunately he is no longer around to tell me where he got it from. Maybe the original item is in the National Museum but in fact I have only ever seen the scan.

Callahiljo, I do not know where this item currently resides. It was sold at DNW in 2009, so it is most likely in the possession of a collector. It would be very interesting to see the endorsements on the back as the item may have passed through some hands in Dublin before presentation in London. Hopefully, one of the Forum members can provide some additional information !

[DOC]

Here is another example of a ‘pray pay’ note similar in format to the 1713 example posted previously. This example for £34 11s 11d was drawn by Ross Mahon of Castlegar, Galway, in 1746 upon the Dublin bankers, Thomas Dillon & Co., in favour of Theodore Glover or order at thirty one days sight. The bill was received by Thomas Dillon & Co. on July 7th and annotated as such.

[DOC]

Here is another example of a drawn note in similar format to the ‘Pray Pay’ notes posted previously. The note for £11 14s, dated 11th July 1748, is drawn by William Armstrong (Mealife, Co. Tipperary) upon the Dublin banker, James Dexter, in favour of Richard Purcell and payable at twenty one days after sight. The note is signed on behalf of James Dexter by Thomas Fletcher on 28th July 1748.

The endorsements on the back are interesting and indicate that Richard Purcell endorsed the note and transferred it to a John Osborne who eventually received payment on 30th August 1748. Financial instruments of this type circulated as money during the 18th century and facilitated the transfer of considerable sums of money in business transactions.

[DOC]

The drawn notes eventually evolved into the modern day cheque. Here is an example of an early check in a similar format to the earlier drawn notes. This one is drawn by William Morris on behalf of the Duke of Leinster instructing the Dublin bankers David La Touche & Sons to pay £50 to the bearer.

[DOC]

The accolade for the first banknotes goes to China where banknotes were printed on deer hide leather about 118 BC. However, the phenomenon was short lived and had little enduring impact outside China. The modern banknote can trace its origin to the activities of the London Goldsmith bankers in the 17th century who issued receipts to individuals or bearer for valuables such as gold and silver deposited with them for safekeeping. These receipts began to circulate as a form of currency leading to the development of the modern banknote.

The banknotes issued by the goldsmith-bankers were generally completely handwritten for variable amounts. The earliest surviving examples are those issued by the London-based goldsmith banker, Field Whorwood in 1654. An example of an entirely handwritten banknote issued in 1697 by the Bank of England for £22, is attached.

Few bankers operated in Ireland prior to 1700 but it is possible that Richard Hoare (Dublin), Joseph Demar (Dublin) or Edward Hoare (Cork) could have issued banknotes of this type, entirely in hand written form. Perhaps an Irish note of this type could one day come to light !

[Mac]

It would certainly be a nice find to come across a note issued by Hoare's bank!