Lombard Street

“ The briefest and truest way of describing Lombard Street is to say that it is by far the greatest combination of economical power and economical delicacy that the world has ever seen. Of the greatness of the power there will be no doubt. ”

“ In Lombard Street, which I suppose is more expensive still, so expensive indeed that only concerns of the highest financial standing in the world can afford to exist beside its narrow road-way, there are even worse examples. In so narrow a thoroughfare every canon of good taste would call for flat reserved façades, yet instead we have in the newer structures, buildings of the strongest modelling and the highest ornateness. ”

“ In this constant and chronic borrowing, Lombard Street is the great go-between. It is a sort of standing broker between quiet saving districts of the country and the active employing districts. Why particular trades settled in particular places it is often difficult to say; but one thing is certain, that when a trade has settled in any one spot, it is very difficult for another to oust it—impossible unless the second place possesses some very great intrinsic advantage. ”

“ Lombard Street and Threadneedle Street are merely places where men toil and accumulate. They go elsewhere to enjoy and to expend. On a Sunday, or in an evening after the hours of business, some courts and alleys, which a few hours before had been alive with hurrying feet and anxious faces, are as silent as the glades of a forest. The chiefs of the mercantile interest are no longer citizens. ”

“ Then there are mud huts, and palatial residences, and streets of stately dwelling-houses, shaded by avenues of ilanthus-trees; waggons discharging goods across the pavements; shops above and cellars below; railway whistles and steamboat bells, telegraph-wires, eight and ten to a post, all converging towards Wall Street—the Lombard Street of New York; militia regiments in many-coloured uniforms, marching in and out of the city all day; groups of emigrants bewildered and amazed, emaciated with dysentery and sea-sickness, looking in at the shop-windows ”

“ Lombard Street similarly points to the residence of Lombard merchants, the name existing when Edward II. confirmed a grant to Florentine merchants in 1318, while the Lombards maintained their position until Tudor times. Paternoster Row, still occupied by booksellers, takes name from the sellers of prayer-books and writers of texts who collected under the shadow of St Paul’s Cathedral. As regards names derived from ancient buildings, instances are the streets called London Wall and Barbican, and those named after the numerous gates. ”

“ Whatever may be the real economic value of the London site, for other purposes—as to which we may have something to say at a later stage—for school purposes, wherein lies the advantage that the sites on which its schools are built are frequently surrounded by dingy factories or crowded courts and alleys? If Lombard Street is an ideal place for banks, is not a park like the Central Avenue of Garden City an ideal place for schools?—and is not the welfare of our children the primary consideration with any well-ordered community? ”

“ Lombard Street are in an orderly uproar of finance. The rattling of shovels is incessant; office-boys cast thousands of pounds, in notes, bills, and money, to the cashier, carelessly, across the counter, paying vast sums in to their masters’ accounts ”

“ Our observers now turned their direction westward, and passed into Lombard Street, chiefly formed of banking-houses and other public edifices. “This street,” said Dashall, “is noted as the focus of wealth, the point of convergence of civic riches, and its respectable bankers are not more dignified by the possession of superabundant property than enhanced in the estimation of their fellow-citizens by strictly conscientious honour and integrity. ”

“ The sound of a horn interrupted this conversation.
“Apropos,” said Tom, “we can take the Post Office in our way, a place of considerable importance; so allons.”
They now pursued their way to Lombard Street.
“This collection of buildings,” said Dashall, as they entered, “important as its concerns are to the nation, claims no praise as a building. It stands behind Lombard [423] Street, from which, on the south side of the street, there is a passage leading to it, under an arched gateway. ”

“ As for the Mansion House, it is the finest building in the world; and Lombard Street is the very focus of attraction. With Aldgate I am well acquainted; and a pleasant spot it is, too. The butchers' shops in the neighbourhood must be quite healthy for consumptive people. ”

“ The merchants used, in olden times, to meet in Lombard Street, until Sir Thomas Gresham built the first edifice here, in 1567, from the designs of Henrick, a Fleming, who, it is said, made constant journeys from London to Flanders, to obtain materials and workmen. ”

“ If we remember that the liabilities of Lombard Street payable on demand are far larger than those of any like market, and that the liabilities of the country are greater still, we can conceive the magnitude of the pressure on the Bank of England when both Lombard Street and the country suddenly and at once come upon it for aid. No other bank was ever exposed to a demand so formidable, for none ever before kept the banking reserve for such a nation as the English. ”

“ After reaching Lombard Street I walked for half a mile, and for the entire distance the street was crowded with people, but I did not see a white person until I reached the woodyard. The thrift of the colored people of Philadelphia was markedly noticeable. ”

“ Good Master Planchet, sometime valet, and lifelong friend of the great d'Artagnan, turned grocer, and lived over his shop at the sign of "Le Pilon d'Or," in Rue des Lombards. This had been a street of bankers and money-dealers in the outset, and it was named, to alter De Quincey's ornate reference to another Lombard Street, after the Lombards or Milanese, who affiliated an infant commerce to the matron splendors of the 119 Adriatic and the Mediterranean. When the financial centre went westward, this street was invaded by the grocers and spice-dealers, who hold it to this day. ”

“ The peculiar essence of our banking system is an unprecedented trust between man and man: and when that trust is much weakened by hidden causes, a small accident may greatly hurt it, and a great accident for a moment may almost destroy it.
Now too that we comprehend the inevitable vicissitudes of Lombard Street, we can also thoroughly comprehend the cardinal importance of always retaining a great banking reserve. Whether the times of adversity are well met or ill met depends far more on this than on any other single circumstance. If the reserve be large, its magnitude sustains credit ”

“ Taking the world as a whole—either now or in the past—it is certain that in poor states there is no spare money for new and great undertakings, and that in most rich states the money is too scattered, and clings too close to the hands of the owners, to be often obtainable in large quantities for new purposes. A place like Lombard Street, where in all but the rarest times money can be always obtained upon good security or upon decent prospects of probable gain, is a luxury which no country has ever enjoyed with even comparable equality before. ”

“ The thoroughfare through the Strand and Fleet Street, and on to Cheapside and Lombard Street, was deserted, a more novel and agreeable route having been discovered on the ice the whole way from Westminster to London Bridge. Multitudes of people played at football out in the centre of the stream ”

“ Every banker knows that if he has to prove that he is worthy of credit, however good may be his arguments, in fact his credit is gone: but what we have requires no proof. The whole rests on an instinctive confidence generated by use and years. Nothing would persuade the English people to abolish the Bank of England; and if some calamity swept it away, generations must elapse before at all the same trust would be placed in any other equivalent. A many-reserve system, if some miracle should put it down in Lombard Street, would seem monstrous there. ”

“ From the 13th century Italian merchants, known as Lombards, from Lucca, Florence, Venice, and Genoa, traded under much odium, largely in England as wool-dealers and bankers, whence the name Lombard Street.
Lombardy (3,982) , an inland territory of Northern Italy between the Alps and the Po, Piedmont, and Venetia. In the N. are Alpine mountains and valleys rich in pasturage; in the S. a very fertile, well irrigated plain, which produces cereals, rice, and sub-tropical plants. The culture of the silkworm is extensive; there are textile and hardware manufactures. ”

“ Almost everything will be believed for a little while, and long before discovery the worst and most adroit deceivers are geographically or legally beyond the reach of punishment. But the harm they have done diffuses harm, for it weakens credit still farther.
When we understand that Lombard Street is subject to severe alternations of opposite causes, we should cease to be surprised at its seeming cycles. We should cease too to be surprised at the sudden panics. During the period of reaction and adversity, just even at the last instant of prosperity, the whole structure is delicate. ”

“ One alley, dignified by the title of Lombard Street, is of an infamy of such long standing, that it is said to have begun its evil courses long before the privilege of sanctuary existed, and to have maintained them up to the present moment. The Carmelites complained of it, and the neighbours complain still. In the Dramatis Personæ to Shadwell's play called the Squire of Alsatia, we have a set of characters so described as to bring us, one would think, sufficiently acquainted with the leading gentry of the neighbourhood; such as—
"Cheatley. ”

“ Nothing can be truer in theory than the economical principle that banking is a trade and only a trade, and nothing can be more surely established by a larger experience than that a Government which interferes with any trade injures that trade. The best thing undeniably that a Government can do with the Money Market is to let it take care of itself. ”

“ A permanent Governor of the Bank of England would be one of the greatest men in England. He would be a little 'monarch' in the City; he would be far greater than the 'Lord Mayor.' He would be the personal embodiment of the Bank of England; he would be constantly clothed with an almost indefinite prestige. Everybody in business would bow down before him and try to stand well with him, for he might in a panic be able to save almost anyone he liked, and to ruin almost anyone he liked. A day might come when his favour might mean prosperity, and his distrust might mean ruin. ”

“ A republic with many competitors of a size or sizes suitable to the business, is the constitution of every trade if left to itself, and of banking as much as any other. A monarchy in any trade is a sign of some anomalous advantage, and of some intervention from without.
I shall be at once asked—Do you propose a revolution? Do you propose to abandon the one-reserve system, and create anew a many-reserve system? My plain answer is that I do not propose it. I know it would be childish. Credit in business is like loyalty in Government. ”

“ A system of credit which has slowly grown up as years went on, which has suited itself to the course of business, which has forced itself on the habits of men, will not be altered because theorists disapprove of it, or because books are written against it. You might as well, or better, try to alter the English monarchy and substitute a republic, as to alter the present constitution of the English Money Market, founded on the Bank of England, and substitute for it a system in which each bank shall keep its own reserve. ”

“ Such an evil is nothing in comparison with that of losing the money necessary for inevitable expence by entrusting it to a bad Bank, or that of recovering this money by identifying the national credit with the bad Bank and so propping it up and perpetuating it. So long as the security of the Money Market is not entirely to be relied on, the Government of a country had much better leave it to itself and keep its own money. If the banks are bad, they will certainly continue bad and will probably become worse if the Government sustains and encourages them. ”

“ As the exact position of the Bank of England in the Money Market is indistinctly seen, there is no standard to which a Bank governor can appeal. He is always in fear that 'something may be said;' but not quite knowing on what side that 'something' may be, his fear is but an indifferent guide to him. But if the cardinal doctrine were accepted, if it were acknowledged that the Bank is charged with the custody of our sole banking reserve, and is bound to deal with it according to admitted principles, then a governor of the Bank could look to those principles. ”

“ The value of money is settled, like that of all other commodities, by supply and demand, and only the form is essentially different. In other commodities all the large dealers fix their own price; they try to underbid one another, and that keeps down the price; they try to get as much as they can out of the buyer, and that keeps up the price. Between the two what Adam Smith calls the higgling of the market settles it. And this is the most simple and natural mode of doing business, but it is not the only mode. ”

“ A hundred people are talked about, and a thousand think,—'Am I talked about, or am I not?' 'Is my credit as good as it used to be, or is it less?' And every day, as a panic grows, this floating suspicion becomes both more intense and more diffused; it attacks more persons; and attacks them all more virulently than at first. All men of experience, therefore, try to strengthen themselves,' as it is called, in the early stage of a panic; they borrow money while they can; they come to their banker and offer bills for discount, which commonly they would not have offered for days or weeks to come. ”