Schroders: Merchants & Bankers

695 Pages·1992·76.7 MB·English

by  Richard Roberts (auth.)

SCHRODERS
SCHRODERS
Merchants & Bankers
Richard Roberts
M
MACMILLAN
© J. Henry Schroder Wagg & Co. Ltd 1992
Softcover reprint of the hardcover 1st edition 1992 978-0-333-44511-2
All rights reserved. No reproduction, copy or transmission of
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or under the terms of any licence permitting limited copying
issued by the Copyright Licensing Agency, 90 Tottenham Court
Road, London W1P 9HE.
Any person who does any unauthorised act in relation to this
publication may be liable to criminal prosecution and civil
claims for damages.
First published 1992 by
THE MACMILLAN PRESS LTD
Houndmills, Basingstoke, Hampshire RG21 2XS
and London
Companies and representatives
throughout the world
ISBN 978-1-349-09652-7 ISBN 978-1-349-09650-3 (eBook)
DOI 10.1007/978-1-349-09650-3
A catalogue record for this book is available
from the British Library.
Copy-edited and typeset by Povey-Edmondson
Okehampton and Rochdale, England
Contents
List of Maps vii
List of Figures
Vlll
List of Tables Xl
List of Plates Xlll
Preface xvn
Acknowledgements xix
A Note on Names and Terminology xxi
PART I HAMBURG AND LONDON 1654-1918 1
1 Origins in Quakenbriick and Hamburg 1654-1821 3
2 Johann Heinrich Schroder in London, Hamburg and
Liverpool 1800--49 26
3 Emergence as Leading Merchant Bankers 1849-71 43
4 Boom, Recession and Recovery 1871-92 81
5 High Finance 1892-1914 115
6 The First World War 1914-18 152
PART II LONDON AND NEW YORK 1919-1959 167
7 Prosperity Amidst European Instability 1919-31 169
8 The New World Beckons: Schrobanco, 1923-35 213
9 'Standstill', Depression and War 1931--45 249
10 Leadership from New York: Schrobanco, 1935-62 280
11 Recovery and Growth in London 1945-59 313
12 Helbert, Wagg & Co. 1848-1962 355
PART III THE INTERNATIONAL FIRM SINCE 1960 415
13 Schroder Wagg 1960-73 417
14 International Expansion 1960-73 455
15 Schroders Since 1973 479
v
vii Accounts
Appendices 513
I Family Trees 514
II Partners and Directors 521
III Staff 526
IV Accounts 527
V Financial Conversion Tables 544
Note on Sources 551
Notes and References 553
Index 598
List of Maps
1.1 Migrations of members of the Schroder family in the
seventeenth and eighteenth centuries 4
1.2 Hamburg and international trade in the eighteenth century 9
1.3 North Germany under French domination, 1812 20
1.4 Schroder family firms from the late eighteenth century to
the early twentieth century 22
2.1 The City of London, c. 1850. Principal financial
institutions and addresses of J. Henry Schroder & Co. 37
3.1 United Railways of the Havana system, c. 1914 60
4.1 Antofagasta (Chili) and Bolivia Railway and the Nitrate
Railway, 1910 102
vii
List of Figures
1.1 Merchant descendants of Bernhard Schroder ( 1654-1717) 6
1.2 Merchant descendants of Christian Matthias Schroder
(1742-1821) 13
2.1 Connections between the Schroder, Bustard, Gill and
Mahs families 34
3.1 Connections between the Schroder, Schliisser, Tiarks and
Horny families 46
3.2 J. Henry Schroder & Co., combined consignment and
acceptance commissions and issuing revenues, 1852-70 47
3.3 Acceptance transaction between Carr & Co.,
St Petersburg, Scharfenberg Tolme & Co., Havana, and
J. Henry Schroder & Co., London, in 1861 55
3.4 J. Henry Schroder & Co., net profits after interest on
partners' capital, 1852-70 74
3.5 J. Henry Schroder & Co., return on capital and annual
rate of inflation, 1852-70 75
4.1 J. Henry Schroder & Co., revenues from accepting,
consignments, and Peruvian Department profits, 1871-92 87
4.2 J. Henry Schroder & Co., issuing and underwriting revenues,
and sterling issues for overseas borrowers, 1865-92 101
4.3 J. Henry Schroder & Co., net profits after interest on
partners' capital, 1871-92 107
4.4 J. Henry Schroder & Co., return on capital and annual
rate of inflation, 1871-92 111
5.1 Ancestors of Baron Bruno Schroder (1867-1940) 118
5.2 J. Henry Schroder & Co., revenues from accepting, net
interest and securities dealing, 1893-1913 124
5.3 J. Henry Schroder & Co., balance sheet structures, 1883-
1913 134
5.4 J. Henry Schroder & Co., issuing and underwriting
revenues, and sterling issues for overseas borrowers, 1893-
1914 135
5.5 J. Henry Schroder & Co., net profits after interest on
partners' capital, 1893-1913 149
5.6 J. Henry Schroder & Co., return on capital and annual
rate of inflation, 1893-1913 150
7.1 J. Henry Schroder & Co., total revenues, revenues from
accepting, and from issuing and underwriting, 1919-31 184
7.2 J. Henry Schroder & Co., acceptances and revenues from
accepting, 1918-30 186
Vlll
List of Figures ix
7.3 J. Henry Schroder & Co., combined acceptance credits
and cash advances for German clients, 1919-30 189
7.4 J. Henry Schroder & Co., net profits after interest on
partners' capital, 1919-31 211
7.5 J. Henry Schroder & Co., return on capital and annual
rate of inflation, 1919-31 212
8.1 J. Henry Schroder Banking Corporation, revenues, 1923-
35 222
8.2 Principal officers and departments of the J. Henry
Schroder Banking Corporation in the mid 1920s 223
8.3 J. Henry Schroder Banking Corporation, acceptances and
advances, 1923-35 226
8.4 J. Henry Schroder Banking Corporation, post-tax return
on capital and annual rate of US inflation, 1923-35 248
9.1 J. Henry Schroder & Co., revenues, 1928--45 252
9:2 J. Henry Schroder & Co., acceptances, 1928--45 265
9.3 J. Henry Schroder & Co., net profits after interest on
partners' capital, 1931--45 273
9.4 J. Henry Schroder & Co., return on capital and annual
rate of inflation, 1931--45 273
10.1 J. Henry Schroder Banking Corporation, revenues, 1935-
62 282
10.2 J. Henry Schroder Banking Corporation, acceptances and
advances, 1935-62 289
10.3 Ratios of capital to loans of the J. Henry Schroder
Banking Corporation and average of US national banks,
1924-62 292
10.4 J. Henry Schroder Banking Corporation and Schroder
Trust Company, combined total assets, 1935-62 299
10.5 Organisation chart of the Schroder US companies as from
1 October 1957 308
10.6 J. Henry Schroder Banking Corporation, post-tax return
on capital and annual rate of US inflation, 1935-62 311
11.1 J. Henry Schroder & Co., revenues, 1945-59 325
11.2 J. Henry Schroder & Co., acceptances, and total
acceptances of all members of the Accepting Houses
Committee, 1945-59 327
11.3 J. Henry Schroder & Co., net profits, 1945-58 347
11.4 J. Henry Schroder & Co., return on capital and annual
rate of inflation, 1945-58 348
12.1 Simplified family tree showing connections between the
Helbert, Wagg and other leading Jewish families 357
12.2 Helbert, Wagg & Co. Ltd, revenues, 1915-31 372
X List of Figures
12.3 Helbert, Wagg & Co. Ltd, pre-tax operating profits,
1915-31 384
12.4 Helbert, Wagg & Co. Ltd, pre-tax operating return, pre-
tax return on equity and annual rate of inflation, 1915-31 385
12.5 Helbert, Wagg & Co. Ltd, revenues, 1931-47 386
12.6 Helbert, Wagg & Co. Ltd, pre-tax operating profits,
1931-47 396
12.7 Helbert, Wagg & Co. Ltd, pre-tax operating return, pre-
tax return on equity and annual rate of inflation, 1931-47 397
12.8 Helbert, Wagg & Co. Ltd, pre-tax operating profits,
1948-61 399
12.9 Helbert, Wagg & Co. Ltd, pre-tax operating return, post-
tax return on equity and annual rate of inflation, 1948-61 412
13.1 J. Henry Schroder Wagg & Co. Ltd, disclosed profits
(after tax), 1962-73 428
13.2 Deposits of J. Henry Schroder Wagg & Co. Ltd and all
members of the Accepting Houses Committee, 1962-73 441
13.3 Acceptances of J. Henry Schroder Wagg & Co. Ltd and all
members of the Accepting Houses Committee, 1962-73 442
14.1 Schroders Limited, total assets, 1959-73 475
14.2 Schroders Limited, consolidated equity capital and
disclosed reserves, 1959-73 476
14.3 Schroders Limited, disclosed profits (after tax), 1959-73 477
14.4 Schroders Limited, disclosed return on equity and annual
rate of inflation, 1959-73 477
15.1 Schroders pic, consolidated equity capital and disclosed
reserves, 1973-91 482
15.2 Schroders pic, total assets, 1973-91 496
15.3 Schroders pic, disclosed profits (after tax), 1973-91 497