Nabobs of the North

Sir Lawrence Dundas and Daughter, Zoffany, 1775

Bankers and men of property are some of the richest men on the planet today. Their relationship with governments and the democratic process is a battle for power fought in a war of attrition between the bankers' desire to operate freely and governments' desire for responsibility through regulation. Richer than countries and certainly richer than elected heads of state the influence of these multi-billionaires is profound but this is not a new phenomena as the story of the Dundas family reveals.

The Dundas family were one of Scotland's leading land owners but it fell on hard times during the failed Scottish rebellions: Head of the clan, William Dundas of Kincavel was imprisoned for his part in the 1715 Jacobite rebellion and many of the Dundas estates were forfeited to the British Crown after the 1745-1746 Jacobite rebellion.

Their humbler relatives were landless and urban living and working in trade and the newly emerging professions in Edinburgh. Lawrence Dundas the first of great Dundases was the younger son of landless branch of the family. His father,Thomas owned a drapery shop and woollen business in the Luckenbooths, a range of tenements which formerly stood immediately to the north of St. Giles' Kirk in the High Street of Edinburgh.

Sir Lawrence Dundas

Sir Lawrence Dundas (1710-1781)  known as the "Nabob of the North" even in his own lifetime was one of the new breed of men who made their fortune through servicing what we call the public sector today. He used the money he earned in the service of the King to invest in property and banking. He was the forerunner of many successful money men today who provide governments with armaments and supply multi-million pound government contracts.

Lawrence left his father's business and set up in as a merchant contractor and with his friend James Masterton, he obtained contracts to supplying the army of the Duke of Cumberland in the 1745 rebellion. Being successful with Cumberland further work came his way. His greatest money making opportunity  came during the Seven Years War (1756-1763), when he secured even greater contracts to supply the armies of the anti-French allies in Europe and Canada.  It was not all plain sailing though. He ran into trouble with Thomas Orby Hunter, the commissaries of control, and Prince Ferdinand of Brunswick-Lüneburg the  a German-Prussian field marshal (1758–1766) who led the Anglo-German army in Western Germany. who, according to Prime Minister Walpole,  threatened to hang him for late fulfilment.

James Boswell claimed Lawrence Dundas brought home, 'a couple of hundred thousand pounds’ from that war but some historians estimate actual figure was nearer to £2 million the equivalent of more than £200m in today's money which put him in the class of a billionaire today.

Having made one fortune Lawrence went into two others, both in the 18th century's growth industries - banking and canals. Dundas was a man who understood the future was in money not land. Banking in Scotland was dominated by two Edinburgh based institutions; the Bank of Scotland and what became The Royal Bank of Scotland. The two institutions were fierce rivals. Both had the power to issue bank notes but the The Bank of Scotland was deemed to be tainted by its past Jacobite inclinations so it is no surprise, given his support for the British, Lawrence Dundas invested heavily in its rival the Royal Bank of Scotland.

Route of the Forth and Clyde Canal

He completed the development of the port of Grangemouth in 1777, which linked his other major investment the construction of the Forth and Clyde Canal to the sea. Dundas ran the canal through his estate, of Kerse House, near Falkirk, he was a canny operator.

Like Billionaires today who build themselves lavish houses in places like the Hamptons, Dundas set about building himself a few mansions. He built what Scottish writer Hugo Arnot described as  "incomparably the handsomest townhouse we ever saw," in St. Andrew Square, Edinburgh. Designed by Sir William Chambers, it became the headquarters of the Royal Bank of Scotland in 1825.

Head Office of the Royal Bank of Scotland

In 1754 he made his second attempt to gain a seat in Parliament. He lost but not before he had spent a fortune on bribes which was the 18th century way of currying favour with the electorate and he was disappointed again in 1761 election. Having failed to get a seat he turned to his friend Lord Shelburne for help. On 19 August 1762 Shelburne wrote to Henry Fox: ‘Dundas, the Nabob of the North, writes me to desire I’ll get him made a baronet.’ On 20 October Dundas duly received his baronetcy.

With his baronetcy in hand he made his move south but not without comment. He bought the Aske Estate, near Richmond in North Yorkshire in 1763 from Lord Holderness for £45,000 and proceeded to enlarge and remodel it in Palladian taste by the premier Yorkshire architect, John Carr, who also designed new stables for him.

Aske Estate

On 3 May 1763 Lord Hardwicke wrote to Lord Royston,"Sir Lory Dundas, who extends his conquests from North to South, has purchased Moor Park from Lord Anson’s heirs for £25,000 for which he ordered a set of Gobelins tapestries with medallions by François Boucher and a long suite of seat furniture to match, for which Robert Adam provided d

esigns: they are among the earliest English neoclassical furniture. A few months later he bought Lord Granville’s London house for about £15,000.

From 1766 Dundas set about securing his political influence in Scotland. In July that year be he purchased the Orkneys and Shetlands from the Earl of Morton for £63,000, thereby obtaining the parliamentary seat for his brother, he obtained Stirlingshire for his friend Masterson, Linlithgowshire and Fife went to another friend James Wemyss, the Yorkshire seats of Richmond were given to two proxies Norton and Wedderburn to be controlled directly by Dundas himself; the seat for Edinburgh he kept for himself. His 'purchase' of these seats secured him 8 or 9 votes in the Commons which he was willing to be courted by both Government and opposition alike but generally he voted in support of the Hanoverian king.

East India House, Leadenhall Street, 1800

Although Dundas never obtained high office either for himself or his followers it was generally believed that ‘without the name of minister’ he had ‘the disposal of almost everything in Scotland’ and in the East India Company. The Duke of Queensberry or Lord Marchmont got most of appointments available in Scotland through his influence but many he saved for himself. As governor of the Royal Bank of Scotland, 1764-77, he exercised great influence in the financing of new projects, notably his own project, the Forth and Clyde canal, while he worked in Parliament to prevent his rival, Lord Argyll, developing the Glasgow and Clyde Canal. He also provided government supporters with shares in the East India Company to boost their wealth to meet the selection criteria in the 1770 election.

But as the 1770s progressed Sir Lawrence's star was dimming. His new rival came not from the aristocracy but from a distant family connection Henry Dundas, with whom Sir Lawrence's family had  long been on bad terms.

Henry Dundas

Henry was a skilled lawyer and was as unscrupulous as Sir Lawrence when it came to politics and the two would wage war on each other's interests in Scotland and the East India Company through their proxies until Lawrence died.

Henry rose quickly through the Scottish legal system and became a Member of Parliament in 1774. The two men were arch enemies. Henry was more than a match for the older man when it came to politics.After holding subordinate offices under William Petty, 2nd Earl of Shelburne and William Pitt the Younger, he entered the cabinet in 1791 as Secretary of State for the Home Department where he successfully held back the abolition of slavery arguing the country made too much money out of it to give it up in a time of war.

Always viewed as an outsider, and as a man more interested in himself than King and country, Sir Lawrence's influence waned. He never received the peerage he felt he deserved for his support to the King neither did he manage to maintain his family's political position. He died on 21 September 1781, leaving an estate worth £16,000 p.a. and a fortune of £900,000 in personal and landed property. His son Thomas was elevated to the peerage as Baron Dundas of Aske in August 1794, and was also Lord Lieutenant and Vice Admiral of Orkney and Shetland. In 1892, the family gained the title Marquis of Zetland.

Henry Dundas went onto to be Prime Minister Pitt's fixer and War Secretary at the outbreak of the Napoleonic Wars. In 1802 he was elevated to the Peerage as Viscount Melville and Baron Dunira and in 1804 he became First Lord of the Admiralty. He introduced a number of improvements there but questions were asked about his financial management of the department which resulted an impeachment trial for the misappropriation of public funds.

Henry Dundas was an accomplished politician and scourge of the Radicals, his deft and almost total control of Scottish politics through the 1790 when no monarch visited the country, led to him being pejoratively nicknamed King Harry the Ninth, the "Grand Manager of Scotland" a play on the masonic office of Grand Master of Scotland, or the "Great Tyrant" and "The Uncrowned King of Scotland." Indeed by 1790 Dundas was in Pitt’s own word the ‘indispensable’ coadjutor of his ministry and the prime minister’s friend par excellence. His hold over Pitt seemed to many observers unaccountable: but, "Dundas brought to market qualities rarely combined in the same individual. Conviviality at table: manners frank and open and inspiring confidence: eloquence bold, flowing, energetic and always at command: principles accommodating, suited to every variation in government, and unencumbered with modesty or fastidious delicacy."(1)

But Henry over stepped the mark and was accused of withdrawing money from the Bank of England and placing it in his own account at Coutts for speculation, primarily in the East India Company. Although Dundas lost his job as Minister Treasurer of the Navy in 1783 he was made a member of the Board of Control for India in 1784 and became its President from 1793-1802. During this period he held a number of other political appointments most notably from 1791-1794 as Home Secretary, during which he defended the East India Company from his position as Secretary of War in 1794. When it came to his trial his prosecutors found he had conveniently destroyed all his records so the case was largely based on the testimony of his accusers. Lacking any material evidence Dundas could only be formally censured by the House of Commons Henry and was acquitted 1806, but he never held public office again.

Melville Monument

Henry is commemorated by one of the most prominent memorials in Edinburgh, the 150-foot high, Melville Monument at St Andrew Square, which stands looking down on the house of his rival Lawrence. The house is now the headquarters of The Royal Bank of Scotland.

In 2008, the UK Treasury had to inject £37 billion ($64 billion, €47 billion, equivalent to £617 per citizen of the UK) of new capital into Royal Bank of Scotland Group plc, Lloyds TSB and HBOS plc, to avert financial sector collapse.

Sources
http://www.historyofparliamentonline.org/volume/1790-1820/member/dundas-henry-1742-1811
http://www.historyofparliamentonline.org/volume/1754-1790/member/dundas-sir-lawrence-1710-81
(1)W. L. Clements Lib. Pitt letters, Pitt to Dundas, 22 July [1790]; Wraxall Mems. ed. Wheatley, i. 266.
https://en.wikipedia.org/wiki/Henry_Dundas,_1st_Viscount_Melville
https://en.wikipedia.org/wiki/Sir_Lawrence_Dundas,_1st_Baronet

The Unfortunate Captain Peirce: When is a Hero not a Hero?

The wreck of the 'Halsewell', Indiaman, 1786, Thomas Stothard

Two and twenty years ago the merchant marine got its first hero; Captain Richard Peirce of the ill-fated East Indiaman the Halsewell. The ship which left Gravesend docks on the first day of January 1786 with a manifest of 240 people and was wrecked six days later of the Dorset coast with the loss of over 170 lives. The tragedy rocked the nation to its core and the ship’s captain became a national hero with stories and eulogies[1] appearing the London press and magazines like The Gentleman and The European praising his self-sacrifice for the sake of his family. The ship was not the first to go down and it certainly was not the last but this wreck captured the nation’s imagination for some reason.

Built by Wells of Blackwall in 1778 the 758 ton ship was on route to Madras armed with 12 cannon and carrying a cargo of 53 chests of small arms, 25 tons of copper plate, 500 tons of lead for shot, and general merchandise including pitch, grindstones, tar, chains and bellows but the main consignment was the men of the 2^nd Battalion and the 42^nd Regiment of the East India Company’s army who were being sent to replace men lost in Company’s war with the last mogul emperor with any clout, Hydra Ali, three years earlier.

 In addition to these soldiers the Haleswell has civilian passengers, including the two daughters Eliza and Mary-Ann; and two nieces of the captain Amy and Mary Paul, a Miss Elizabeth Blackburn,a  Miss Mary Haggard, a Miss Ann Mansell and a Mr John Shultz. The first mate, Thomas Burston, was a member of the Peirce family and was also lost in the incident. None of the women were able to escape and were among about 170 who died in the ship, which disintegrated within two hours of striking the rocky promontory. 

The Loss of the Haleswell, J.M.W Turner.

Accounts[2] given by two surviving officers Meriton and Rogers said that Peirce heroically remained with them and is shown on the right of the painting above, seated between and comforting his daughters. Meriton and Rogers stand on the left, on the point of departure, as calm observers of the group.

During the eighteenth century a number of men achieved the status of national hero, the most famous of them being the legendary Captain James Cook (1728-1779), the man who spent his life exploring and mapping; Newfoundland, Australia, the Hawaiian Islands and New Zealand for the British Crown.

During the Seven Years' War, Cook served in North America as master of Pembroke (1757) In 1758 he took part in the major amphibious assault that captured the Fortress of Louisbourg from the French, after which he participated in the siege of Quebec City and then the Battle of the Plains of Abraham in 1759. He showed a talent for surveying and cartography, and was responsible for mapping much of the entrance to the Saint Lawrence River during the siege, thus allowing General Wolfe to make his famous stealth attack on the Plains of Abraham.

In 1766, Admiralty engaged Cook to command a scientific voyage to the Pacific Ocean. The purpose of the voyage was to observe and record the transit of Venus across the Sun for the benefit of Royal Society inquiry into a means of determining longitude. Once the observations were completed, Cook opened his sealed orders and started the second part of his voyage: to search the south Pacific for signs of the postulated rich southern continent of Terra Australis. He sailed around New Zealand and landed on Australian soil on 19 April 1770, and in doing so his expedition became the first recorded Europeans to have encountered its eastern coastline. 

Two years later as the commander of HMS Resolution with his companion ship HMS Adventure he circumnavigated the globe at an extreme southern latitude, becoming one of the first to cross the Antarctic Circle on 17 January 1773.

On his last great voyage Cook was charged with looking for a north-west passage around the American continent. He sailed via Cape Horne and into the Pacific Ocean stopping off at Hawaii and the Sandwich Islands. Cook sailed as far north as Vancouver Island than turned back and was killed in an altercation with the local Hawaiian chief on 14 February 1779.

The Death of Captain James Cook,  Johann Zoffany, circa 1795.

So, how was it that Captain Peirce of the East India Company could be compared with the heroic Cook? 

In the latter part of the eighteenth century as tariffs were lowered on tea, brandy and other luxury goods the amount of smuggling along the coast was at last beginning to fall. Wrecks too were becoming less attractive to looters. The rescuers of the survivors were hailed by the King and the Company provided a reward of 50 guineas for their efforts. The survivors who were mainly crew had to walk all the way back to London through snow and rain, there was no reward for them. In fact the crew were lambasted[3] in some sections of the London press for failing to do their duty and for disobeying their captain and it became a commonly held view that the reason for the disaster was the lax attitude of the crew and their failure to follow their captain’s orders.

Thompson[4] argues that placing Peirce in the company of a man like Cook elevated him to an example of the national character, the embodiment of British courage and virtue in war. But Pierce was not at war and neither was he a servant of the state like Cook and other heroes such as Wolfe and Andre he was engaged in trade and a lucrative one at that. On a successful voyage a captain like Pierce could expect to make £10,000, and extra-ordinary amount of money compared to his pay which would have been something in the order of £300 a year and he was hoping to marry his daughters and nieces to rich officers or merchants along the way. But for a nation hungry for commercial success and wealth Pierce was their man, a jewel in their social crown and an example of familial loyalty and enterprise in the area of the world they were most interested in, India. “In death, Peirce becomes implicitly iconic not only for British courage and manly virtue but also the East India Company’s paternalism and its mission to form stronger bonds of affection and sociability both within British society and between Britain and its colonial dominions.

However, the legal implications of the commonly held view that the crew was the chief cause of the disaster were to have lasting significance for seamen who found themselves under the control of brutal officers, as both commercial owners and the British Crown were able to cite the example of the Halsewell as a reason for the maintenance of strict order, by force if necessary by officers on the lower orders.

The story of the Haleswell (renamed the Sherwell) inspired the beginning of my up- coming novel, Sinclair which will be available later this year.

[]] Monody, On the death of Captain Peirce, 1786.

[2] A circumstantial narrative of the loss of the Halsewell, East-Indiaman .Henry Meriton (second mate of the Halsewell.), John Rogers (third mate of the alsewell.)http://www.responsites.co.uk/halsewell/

[3]The London Recorder, January 15^th, 1786.

[4] Ship Wreck in Art and Literature, Carl Thompson, Routledge, 2013