the world of private banking
the world of private banking
the world of private banking
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246<br />
THE WORLD OF PRIVAtE BANKING<br />
within <strong>the</strong> Calvinist <strong>banking</strong> <strong>world</strong>, which came out <strong>of</strong> <strong>the</strong> religious persecutions<br />
in sixteenth- and seventeenth- century France. The term ‘International Protestant<br />
Banking’ is perhaps better for <strong>the</strong> larger network, <strong>of</strong> course including Huguenot<br />
Banking but not only that.<br />
The Protestant bankers in Catholic as well as in Anglican, Protestant and o<strong>the</strong>r<br />
foreign countries remained in direct and close relationship with <strong>the</strong>ir homelands.<br />
Generally <strong>the</strong> banks <strong>of</strong> <strong>the</strong> home town – Geneva, Basel, Zurich, Lyons, Amsterdam,<br />
London, Strasbourg etc. – were older. The foreign branches at Lyons, Paris, Genoa,<br />
Vienna and o<strong>the</strong>r towns in Catholic countries arose later. Of course, most <strong>of</strong> <strong>the</strong><br />
first French Protestant banks were branches <strong>of</strong> <strong>the</strong> merchant-banks opened by<br />
Huguenots in <strong>the</strong> towns <strong>of</strong> <strong>the</strong>ir refuge, e.g. Geneva, Lausanne, Vevey, Neuchâtel,<br />
Frankfurt am Main, Amsterdam, London etc. It may be that sometimes, <strong>the</strong> same<br />
thing happened in <strong>the</strong> opposite way.<br />
In spite <strong>of</strong> all kinds <strong>of</strong> persecutions in <strong>the</strong> Catholic countries against <strong>the</strong><br />
native Protestants, a select group <strong>of</strong> mainly foreign Protestants was allowed to<br />
do business as merchants or bankers. The basis <strong>of</strong> <strong>the</strong>se activities was ei<strong>the</strong>r<br />
economic privileges set out in treaties or alliances, e.g. between France and<br />
<strong>the</strong> Swiss Republics since <strong>the</strong> early sixteenth century, or <strong>the</strong> liberty afforded to<br />
Protestants through special edicts, e.g. in seventeenth- and eighteenth-century<br />
Austria. The motivation for all this was <strong>the</strong> need for all kinds <strong>of</strong> useful political<br />
and financial services <strong>the</strong> privileged bankers were able to <strong>of</strong>fer to <strong>the</strong>ir Catholic<br />
host-states: mainly mercenary troops on <strong>the</strong> one hand and <strong>the</strong> knowledge essential<br />
for concentrating and furnishing all <strong>the</strong> immense and indispensable sums <strong>of</strong> money<br />
nourishing <strong>the</strong> dynastic wars.<br />
That is <strong>the</strong> reason why one finds most <strong>of</strong> <strong>the</strong> Protestant bankers rising to socially<br />
high positions in foreign Catholic countries. By <strong>the</strong>ir <strong>the</strong>oretical and technical<br />
know-how as well as <strong>the</strong>ir excellent relationship with o<strong>the</strong>r financiers and bankers,<br />
some became financial counsellors <strong>of</strong> <strong>the</strong> crown, o<strong>the</strong>rs consuls, ambassadors or<br />
ministers <strong>of</strong> <strong>the</strong>ir own State at various courts. Some got into possession <strong>of</strong> one or<br />
several royal monopolies: salt, <strong>the</strong> mint, copper or o<strong>the</strong>r mines. Because <strong>of</strong> <strong>the</strong>ir<br />
inestimable services many <strong>of</strong> <strong>the</strong>se Republican Protestants were ennobled.<br />
Their special behaviour was <strong>the</strong> maintenance <strong>of</strong> Protestant faith and culture for<br />
generations in <strong>the</strong> foreign countries <strong>of</strong> <strong>the</strong>ir choice. They always found an opportunity<br />
to get married to Protestant brides <strong>of</strong> <strong>the</strong>ir social standing, in this way keeping <strong>the</strong>ir<br />
families within <strong>the</strong> elite <strong>world</strong> <strong>of</strong> international Protestant <strong>banking</strong> over generations<br />
in Catholic countries. This culture might have been maintained within <strong>the</strong> majority<br />
<strong>of</strong> Protestant families even in <strong>the</strong> nineteenth century and later. But <strong>the</strong> general rise <strong>of</strong><br />
confessional tolerance in an increasing proportion <strong>of</strong> <strong>the</strong> Constitutions <strong>of</strong> European<br />
nations makes it very difficult to continue arguing <strong>the</strong> problem <strong>of</strong> a Protestant<br />
minority, as was <strong>the</strong> case during <strong>the</strong> time <strong>of</strong> <strong>the</strong> Ancien Régime.