History Holmes' Bank

1 history

1.1 origins
1.2 formation
1.3 operation
1.4 failure
1.5 aftermath

history
origins

the history of banking on isle of man rife incompetence , mismanagement. whilst earliest banks in england integral part in trading far 12th century, banking unknown on isle of man until beginning of 19th century.

the earliest manx bank began business in 1802 @ castletown. known isle of man bank , carried on trading until 1818. feature of manx life @ time profusion of bank notes in circulation issued tradesmen small amounts , act control note issues passed in 1817. 5 bank licences issued under law.

the bank of wulff , forbes opened in 1826 , taken on 10 years later isle of man joint stock banking company, ended in disaster in 1843. in 1836 isle of man , liverpool banking company formed, being wound 2 years later. bank, isle of man commercial bank formed during mid 1840s, being absorbed city of glasgow bank, traded on isle of man under title bank of mona, became bank of isle of man government.

formation

holmes s bank set 3 brothers; john, henry , james holmes bank s premises being situated on south quay, doulgas. brothers holmes involved in various business ventures, ostensibly establishing in running of passenger , cargo shipping, banking being merely subsidiary activity of virtually general trading concern.

operation

the brothers commenced banking operation in 1815 bank forming reputation soundness , stability, serving people of isle of man in prudent manner until 1845. however, in years 1846 , 1847 bank began involving in reckless trading speculations, chiefly involving liverpool brokers paving way subsequent collapse.

failure

henry holmes died in 1848, banking business , other concerns being carried on surviving brothers. profligate practice continued resulting in failure of holmes bank in 1853, leaving liabilities of approximately £300,000.

aftermath

the failure of holmes bank cased acute misery , suffering on isle of man. investigation of affairs of bank disclosed notes far in excess of number authorised licence had mysteriously got circulation.