the world of private banking
the world of private banking
the world of private banking
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CHAPTER 7<br />
The Parisian ‘Haute Banque’ and <strong>the</strong><br />
International Economy in <strong>the</strong> Nineteenth<br />
and Early Twentieth Centuries<br />
Alain Plessis<br />
The <strong>world</strong> <strong>of</strong> <strong>private</strong> <strong>banking</strong>, which was more prevalent than is generally thought<br />
in France during <strong>the</strong> last century, can be separated into essentially two very different<br />
groups. On <strong>the</strong> one hand, <strong>the</strong> countryside abounded with small local bankers (to<br />
which some regional banks can be added), scattered throughout a large number <strong>of</strong><br />
French towns (a number close to three thousand can be counted), which supplied<br />
<strong>the</strong> whole <strong>of</strong> <strong>the</strong> national territory with loans. On <strong>the</strong> o<strong>the</strong>r side was <strong>the</strong> very small<br />
group <strong>of</strong> powerful houses which formed what is referred to as <strong>the</strong> ‘Haute Banque’.<br />
This expression first appeared during <strong>the</strong> Restoration in <strong>the</strong> <strong>world</strong> <strong>of</strong> <strong>the</strong> finance<br />
pr<strong>of</strong>essionals before being widely used by <strong>the</strong> supporters <strong>of</strong> <strong>the</strong> July Monarchy<br />
and so entering into current usage. It referred to a small number <strong>of</strong> ‘<strong>private</strong>’ houses<br />
established in Paris: <strong>the</strong>se were sometimes individual businesses, but more <strong>of</strong>ten<br />
a partnership, usually organized as a general partnership. Even if <strong>the</strong> heads <strong>of</strong><br />
<strong>the</strong>se businesses were amongst <strong>the</strong> first to become interested in <strong>the</strong> new limited<br />
companies, none <strong>of</strong> <strong>the</strong>m were ever tempted to transform <strong>the</strong>ir own bank into a<br />
joint-stock company.<br />
The term ‘Haute Banque’, which recalls an eccentric <strong>world</strong> and implies a<br />
considerable, sometimes quasi-magic, power, remains difficult to define. The<br />
lists <strong>of</strong> members <strong>of</strong> this financial elite, <strong>the</strong> ‘crème des crèmes’ according to R.<br />
Cameron, were never <strong>of</strong>ficial, because <strong>the</strong>y did not subscribe to any statutory<br />
admission requirements, which explains why <strong>the</strong>ir composition may vary a little<br />
at any point in time. The membership <strong>of</strong> <strong>the</strong> Haute Banque depended on <strong>the</strong> image<br />
made by such and such a house, its reputation, its respectability, a valuation placed<br />
on a certain number <strong>of</strong> factors making up an honourable reputation. The ability to<br />
carry out credit activities beyond France certainly featured amongst <strong>the</strong>se factors.<br />
The international breadth <strong>of</strong> <strong>the</strong> operations <strong>of</strong> <strong>the</strong> houses <strong>of</strong> <strong>the</strong> Haute Banque<br />
seems to fundamentally distinguish <strong>the</strong>m from those bankers who mainly operated<br />
in <strong>the</strong> local, regional or even national markets.<br />
If it is undeniable that <strong>the</strong> international dimension is one <strong>of</strong> <strong>the</strong> specific criteria<br />
for <strong>the</strong> Haute Banque, it is difficult to define what it consisted <strong>of</strong>, and how it<br />
<br />
R. Cameron, La France et le développement économique de l’Europe, 1800–1914<br />
(Paris, 1971), p. 116.