Bank of Liverpool - Early History

Early History

The early shareholders included many prominent Liverpool names including Bibby, Booth, Hornby and Rathbone. William Brown was the first chairman and Joseph Langton the general manager. After opening in temporary premises, the Bank purchased the Talbot Inn in Water Street and moved into the converted building in 1832; the Bank stayed in Water Street for the remainder of its independent existence. William Brown’s own American firm, William and James Brown, hit temporary financing difficulties in 1837 and the Bank and Arthur Heywood together provided guarantees and were instrumental in obtaining Bank of England support for Brown.

Much of the Bank’s business was connected to Liverpool’s trade with North America, particularly cotton, and as early as 1837 it was opening accounts with North American banks. Chandler stressed the prudent policy of the directors and it did enable the Bank to weather the frequent financial crises. In particular it remained profitable in 1847 when the similar sounding Royal Bank of Liverpool failed, also during the American Civil War which disrupted the cotton trade, and the collapse in 1866 of Overend, Gurney and Company. It was the Bank’s prudential approach which made it reluctant to assume the protection of limited liability as “unlimited liability encouraged the directors to exercise every care.” Eventually, in 1882, the Bank became a limited company.