the world of private banking
the world of private banking
the world of private banking
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
‘HAUtE BANqUE’ AND tHE INtERNAtIONAL EcONOmy 137<br />
alliance among a number <strong>of</strong> major <strong>private</strong> banks. As for <strong>the</strong> Banque de l’Union<br />
Parisienne, this was created at <strong>the</strong> start <strong>of</strong> 1904 by five houses <strong>of</strong> <strong>the</strong> Haute Banque<br />
(Heine & Co., Mallet Frères & Co., Mirabaud & Co., de Neuflize & Co., Vernes<br />
& Co.), in association with <strong>the</strong> Société Générale de Belgique. Due to <strong>the</strong>se links,<br />
<strong>the</strong> Haute Banque continued to retain a not insignificant share in <strong>the</strong> placing <strong>of</strong><br />
securities issued by foreign governments and companies.<br />
We would add that <strong>the</strong>se houses still played an <strong>of</strong>ten dominant role in <strong>the</strong><br />
delicate negotiation <strong>of</strong> <strong>the</strong> agreements which made <strong>the</strong> preparation <strong>of</strong> this type <strong>of</strong><br />
issue necessary, <strong>the</strong>n in <strong>the</strong> introduction <strong>of</strong> <strong>the</strong>se securities to <strong>the</strong> Paris Bourse, and<br />
afterwards <strong>the</strong>y <strong>of</strong>ten guaranteed <strong>the</strong> ensuing regular payment <strong>of</strong> <strong>the</strong> coupons. And<br />
one again finds <strong>the</strong> names <strong>of</strong> some <strong>of</strong> <strong>the</strong> major <strong>banking</strong> families when studying<br />
<strong>the</strong> financial relations between France and distant countries which had attracted<br />
French capital, for example Mallet and Mirabaud in <strong>the</strong> Balkan States or Mirabaud<br />
again in Argentina. 10 Even <strong>the</strong> presence in <strong>the</strong>se regions <strong>of</strong> <strong>the</strong> Imperial Ottoman<br />
Bank or <strong>the</strong> BUP had not resulted in <strong>the</strong> disappearance from <strong>the</strong>se deals <strong>of</strong> <strong>the</strong><br />
names <strong>of</strong> <strong>the</strong> old banks; in fact quite <strong>the</strong> contrary, as <strong>the</strong>y were part <strong>of</strong> <strong>the</strong> team at<br />
<strong>the</strong> head <strong>of</strong> <strong>the</strong>se new commercial banks.<br />
A quick examination <strong>of</strong> <strong>the</strong> inventories <strong>of</strong> Mallet Frères & Co. around 1910–13<br />
confirms <strong>the</strong> fact that this Protestant bank was not content with participating in <strong>the</strong><br />
BUP, showing an astonishing dynamism on <strong>the</strong> part <strong>of</strong> an old firm.<br />
Table 7.2<br />
Inventory <strong>of</strong> Mallet and Co. on 31.12.1913 (in millions <strong>of</strong> francs)<br />
– Balance Sheet total: 45<br />
Liabilities; – Share capital: 5 + reserve: 1.4<br />
+ deposits from associates: 0.722<br />
– Creditors’ accounts: 19.887 (in 1,280 named current accounts<br />
and <strong>the</strong> names <strong>of</strong> stockholders)<br />
–Acceptances (331 Notes payable in circulation): 18<br />
Assets;<br />
– Debtors’ current accounts<br />
(350 names): 22.54<br />
<strong>of</strong> which foreign accounts: 15.6<br />
– Commercial portfolio: 9.78<br />
<strong>of</strong> which 279 bills <strong>of</strong> exchange on Paris: 6<br />
70 on <strong>the</strong> provinces: 1.95<br />
10 on London: 0.318<br />
57 foreign: 1.474<br />
– Public funds and industrial securities: 12.36<br />
<strong>of</strong> which foreign securities:<br />
around 10.<br />
10<br />
Cf., e.g., A.M. Regalsky, Marchés financiers, groupes d’investissement et élites locales.<br />
Les investissements français en Argentine, 1880–1914 (<strong>the</strong>sis, University de Paris I, 1997).