Sir Francis Baring, 1st Baronet facts for kids

Quick facts for kids Sir Francis Baring Bt
Sir Francis Baring, in a painting by Sir Thomas Lawrence
Born	(1740-04-18)18 April 1740 Larkbeare House, near Exeter
Died	11 September 1810(1810-09-11) (aged 70) Lee, London
Occupation	Banker
Spouse(s)	Harriet Herring ​ (m. 1767⁠–⁠1804)​

Sir Francis Baring (born April 18, 1740 – died September 11, 1810) was an important English banker. He was part of the famous Baring family and was the first person to be called a Baring Baronet. He helped create one of the most powerful banking businesses in London.

Early Life and Business Beginnings

Francis Baring was born in Exeter, England, at a place called Larkbeare House. His father, Johann Baring, was a German cloth merchant who moved to England. His mother, Elizabeth Vowler, came from a successful family in Exeter.

Francis's father passed away when Francis was only eight. His mother, Elizabeth, was a smart businesswoman. She managed to almost double the family's money by the time she died.

In the 1750s, Francis went to school in London. After school, he started an apprenticeship with Samuel Touchet, a big merchant in London. This training lasted seven years. In 1762, he joined his brothers, John and Charles, in their family business. Francis took charge of the London part of the business, while Charles managed the Exeter part. Their brother John was mostly a quiet partner.

By 1807, their business had grown into Baring Brothers & Co. Even though Francis was partly deaf, he was very successful. By the 1790s, the British Parliament trusted him completely.

Starting the London Business

The London business began with clients from an old family friend who was retiring. It also got a lot of work from the Exeter family firm. Soon, they started offering services to merchants from other countries. They also began trading goods themselves.

However, the firm lost money in eight of its first fourteen years. Francis Baring was still learning how to understand markets. He started with £10,000, but by 1777, his wealth was only £2,500.

Despite these early challenges, people in the City of London quickly noticed Baring's special skills. In 1771, a large public company, the Royal Exchange Assurance, asked him to join their board. This was a big step for him. It showed that he was becoming an important figure among London's merchants.

Becoming Independent

At first, Baring's London business was held back by the much larger Exeter firm. His brother Charles made some risky business choices. This caused problems, which Francis solved in 1777. He decided to separate the businesses completely.

Now, the money and management were separate. However, Francis kept strong family ties with Exeter. He often used his own money to help Charles avoid financial ruin. He did this to protect the family's good name. He was very upset by Charles's "almost monstrous management" of the family's main business.

Francis's brother John remained a quiet partner until he retired in 1800. Francis led the firm almost by himself from 1777 until he retired in 1804. For many years, Charles Wall was his only active partner.

Financial Success and Growth

The company's money grew steadily. It went from £20,000 in 1777 to £70,000 in 1790. The next ten years were very profitable. This was partly because London became a major shipping center after France banned shipping in Amsterdam.

The company's capital reached its highest point at £400,000 in 1804. Baring himself contributed most of this money. His share grew from 12% in 1777 to 54% in 1804.

Yearly profits rose to £40,000 in the 1790s. In 1802, they reached over £200,000. Baring's share of the profits also increased. It went from a quarter in the 1760s to half from 1777, and then to three-quarters from 1801. His total wealth, both business and personal, grew from £5,000 in 1763 to £500,000 in 1804.

Building a Network

Early on, Baring's business made money mostly from international trade. This included trade between Britain, Europe, the West Indies, and North America. They traded goods, acted as agents for overseas merchants, and helped with payments and shipping. They also provided trade finance.

In the West Indies, Baring had major financial interests in sugar. These plantations were often connected to the use of enslaved people at that time. With the money he earned, Baring bought Manor House in 1796.

The success of his work came from building a strong network of partners. These partnerships with leading merchants in Europe and North America were key to his success.

Hope & Co. of Amsterdam was Baring's most valuable connection. They started working together in the 1760s. This link became even stronger when Pierre César Labouchère, a key person at Hopes, married Baring's daughter Dorothy in 1796.

Baring also made important connections in North America. He quickly saw the business potential of Britain's American colonies. His company became a European hub for powerful American merchants. In 1774, his first American client was Willing, Morris & Co.. Through them, Baring met Senator William Bingham, one of America's richest men. This connection led to many profitable deals.

Advising the Government

From 1782, Baring started advising government ministers on business matters. This helped him become well-known in British politics. His connections in Devon were important for this. His brother John was a Member of Parliament. Also, his sister Elizabeth married John Dunning, another MP from Devon.

Dunning was a rich lawyer who was friends with Lord Shelburne. Shelburne was a powerful politician with modern ideas about economics. When Shelburne became Prime Minister in 1782, he needed business advice. Baring became his trusted adviser on trade.

Baring's ideas about economics were ahead of his time. For example, in 1799, he defended the Bank of England's decision to stop paying in gold. Many people disagreed, but Baring thought it was the right choice.

Baring's knowledge of North American trade was very useful. This was especially true during the end of the American War of Independence. Shelburne wanted a fair peace treaty and asked Baring for his thoughts on trade. Baring met many important people through Shelburne, including William Pitt the Younger.

Baring was not as close to William Pitt, who became Prime Minister after Shelburne. They often disagreed on political issues. Baring thought Pitt's war policies were wasteful. They also had different views on the East India Company. Even though Baring's personal influence in government decreased, his expert advice was still sought. He advised on topics like trade with Turkey and funding the national debt.

In 1784, Baring became an MP for Grampound. He later represented other areas like Chipping Wycombe and Calne. Even though he admitted his voice was "unequal to the House of Commons," his speeches were clear and convincing.

Both privately and in Parliament, Baring supported more freedom in trade. He believed that "Every regulation is a restriction," and that restrictions could harm trade in the long run.

Government Business in the 1780s

Baring's firm definitely benefited from his political connections. For example, during the American War of Independence, he got contracts to supply the army. In 1783, he won a contract with a very low commission of 1%. When the war ended, he also got contracts to sell off leftover supplies.

The government saved at least 10% because of Baring. He also received personal rewards. Between 1784 and 1786, he earned £7,000 in commissions for government work. He also got £4,250 from interest on government money he held. These deals were very profitable. His firm also helped sell British government debt during the war, making profits of £19,000.

The East India Company

Francis Baring also spent a lot of time as a director of the East India Company from 1779. By 1783, he was a leader on the company's board. He spent a lot of time on its affairs, often dedicating two days a week. He strongly supported the company's control over trade.

He joined the East India Company when the British government wanted more control over it. Baring fought against proposals that would give the government too much power. However, he worked to help pass Pitt's India Act, which aimed to improve the company's management. In 1792 and 1793, he was elected chairman and was tasked with renewing the company's charter.

Being chairman was very tiring for him. His personal finances suffered, and his capital was cut in half. He felt that many other directors were difficult to work with. Pitt rewarded Baring with a baronetcy in 1793. Baring continued as a director until his death in 1810, but he became less involved over time.

Deals with Hope & Co.

Baring was known for his good business sense and quick decisions. His firm's records show thousands of successful deals. A big example of his growing confidence was in 1787. Hope & Co. introduced him to a huge business idea. The two companies planned to control the entire European cochineal market. They secretly bought up all available cochineal, a valuable dye.

They spent £450,000, but prices did not change. In 1788, they expected a huge loss. However, the war starting in 1793 brought new chances. When Amsterdam was taken by France, Hopes moved to London. Their knowledge and money greatly helped Barings.

The two companies worked on bold deals together. One of their first big projects was to protect their money from European wars. In 1795, Baring sent his 22-year-old son, Alexander, to Boston. Alexander's task was to buy over 1 million acres of land in Maine for £107,000. This investment was suggested by Senator William Bingham, whose daughter Alexander later married. This marriage, and another between Baring's son Henry and Bingham's other daughter, brought a lot of wealth to the Baring family.

Wartime Finance

British government spending grew a lot during the European wars. This created big opportunities for London bankers like Sir Francis Baring. After 1799, his firm was often the main contractor for government debt. This brought in profits of £190,000. For Baring, who was a key financier of the war, this was the peak of his power. Even after he retired in 1804, his name was still used for government contracts. He said this was because "my name would be useful in the opinion of the publick."

Britain's allies in Europe needed money. Baring, with Hopes, started to organize some of the first sales of foreign bonds in London. In 1801, he sent his son-in-law and his son George to arrange a loan for the government of Lisbon. This "Portuguese diamond loan" was shared between Barings and Hopes.

Baring also helped the British government send money to allied governments. This secret work needed great skill and a strong network of contacts. It showed how much the government trusted Baring.

Baring also had connections with leading American merchants. These links became very important as Barings' business shifted from Europe to transatlantic trade.

American Finance

Close ties with American merchants naturally led to connections with the United States government. Since the end of the American War of Independence, Baring had kept an eye on American finances in Europe.

His first major deal for the US government was in 1795. He sold $800,000 worth of stock and sent the money to help American negotiations with the Barbary powers in North Africa. The American ambassador praised Baring's "liberal and skilful manner." Other business soon followed, including selling the government's shares in the Bank of the United States.

Barings was seen as a very reliable "English house." After another firm failed in 1803, Barings was chosen to be the London financial agent for the United States government. This made Sir Francis Baring's influence in North American finance unmatched in London.

Around this time, Baring's firm, along with Hopes, took on its largest and most famous deal: financing the Louisiana Purchase. The French government wanted to sell a huge area of land in Louisiana. The United States wanted to buy it for $15 million. Francis Baring was in charge of finding this money. He sent his son Alexander to Paris to negotiate. In the end, Barings and Hopes sold US government bonds worth $11.25 million for the French government. This was a massive deal. Francis Baring admitted that he "trembled about the magnitude of the American account."

The leading American bank in London also used Barings as its London banker. This was because of the strong network of friends and contacts Baring had built. Thomas Willing, the president of the Bank of the United States, was a client of Barings. So, it was natural for the bank to use Baring's firm for payments and other transactions in London.

Retirement and Wealth

Baring wanted his son Alexander to join the Hope & Co. partnership. He dreamed of creating a huge company that combined Barings and Hopes. This company would be powerful in government finance across Europe and have strong American connections. But Alexander did not want to join. This forced Baring to give up his "colossal plan."

In 1803, Baring started to retire from business. He gave up his share of the company's profits. However, much of his money remained loaned to the firm. When he died in 1810, he still provided about 17% of the firm's money. He officially stepped down as a partner in 1804. He handed control to Charles Wall and his three oldest sons: Thomas, Alexander, and Henry. In 1807, the company's name changed from Francis Baring & Co. to Baring Brothers & Co.

Private Pursuits

Baring's great wealth allowed him to enjoy a more relaxed life. In 1790, he started buying property in Beddington, Surrey. In 1796, he bought Manor House in Lee, a country house near London, for £20,000. He also bought land in Buckinghamshire. By 1800, he had invested over £60,000 in country estates.

He had even bigger plans to become a country landowner. From 1801, he bought land and a large house called Stratton Park in Hampshire. By 1803, he had spent £150,000 on this estate. In 1802, he moved his London home from above his business to a nicer area in the West End.

He hired the architect George Dance the Younger to redesign the house at Stratton. He filled it with beautiful furniture and famous Old Master paintings. He started buying art in 1795. By 1808, he valued his art collection at £15,000. He especially loved Dutch 17th-century painters. He also supported the artist Sir Thomas Lawrence. In 1806, he asked Lawrence to paint a large portrait of himself with his two senior partners. This painting was a tribute to his business achievements.

Baring had few other hobbies outside of business. From 1803 to 1810, he was chairman of the Patriotic Fund. This fund helped Britons who were wounded or lost family during the wars with France. He also helped settle business disputes and was a trustee for other merchants. He was president of the London Institution from 1805 until he died. He also wrote a few pamphlets on topics like the Bank of England.

In 25 years, Baring had turned his firm into one of London's most powerful merchant banking houses. By 1800, he had a network of important contacts across Europe. He had agencies for leading American merchants. His firm was the undisputed leader in selling British government debt. Baring was a respected adviser to politicians. He had influence in trade through the East India Company. He also won important contracts from foreign governments. Francis Baring was the heart of Barings. He managed the company, provided most of the money, and received the largest share of the profits.

Family Life

On May 12, 1767, Francis Baring married Harriet Herring (1750–1804). They had many children:

• Harriet (1768–1838), who married Charles Wall, a partner at Baring Brothers.
• Maria (born 1769), who married Richard Stainforth.
• Dorothy Elizabeth (born 1771), who married Pierre César Labouchère. They had one son, Henry Labouchere, 1st Baron Taunton.
• Thomas (1772–1848)
• Alexander (1774–1848)
• Catherine (born 1775)
• Henry (1777–1848)
• William Baring (born 1778, died young)
• William (1779–1820), who married Frances Poulett-Thomson.
• George (1781–1854), who married Harriet Rochfort D'Oyly.
• Frances (1783–1825); she married Thomas Read Kemp, an MP.
• Lydia (1786–1854), who married Philip Laycock Story.

Over the years, his wife Harriet contributed about £20,000 to the family from her own family. She was also very good at managing their household. Between 1768 and 1787, she gave birth to ten children who grew up. Later, she became a great hostess and helped her husband meet valuable business contacts. Harriet's sister Mary married Richard Stone, a leading London banker, whose firm Francis Baring's company had worked with since 1764.

Before becoming a priest, George Baring founded a trading company in Canton that later became Dent & Co..

Death and Legacy

Sir Francis Baring passed away on September 11, 1810, in Lee, Kent. He was buried in the family tomb in St. Mary the Virgin Church in Hampshire, England.

His oldest son, Thomas, inherited his title and country estates. Baring's wealth at the time of his death showed his great achievements. He had £606,000 in total. This included £70,000 in company holdings. He gave £175,000 to his other children. His estates in Hampshire and Lee were worth £400,000. His art, jewelry, and furniture were worth almost £30,000.

Works Written by Sir Francis Baring

• The Principle of the Commutation-Act established by Facts, 1786
• Observations on the Establishment of the Bank of England, 1797
• Further Observations on the Establishment of the Bank of England, 1797
• Observations on the Publication of Walter Boyd, Esq., M.P., 1801