Recollections of a Busy Life: Being the Reminiscences of a Liverpool Merchant 1840-1910. Forwood William Bower
Martin, the active secretary to the Cotton Brokers' Association, buzzing about like a busy bee, collecting opinions as to the amount of business doing in cotton; Thos. Bouch, the dignified representative of the old firm of Waterhouse and Sons; Edgar Musgrove, an ideal broker, ever present and ever active. Nor must I forget the noble band of shipbrokers who collected the cargoes for ships loading outwards: Robert Ashley, Louis Mors, W. J. Tomlinson, J. B. Walmsley, John McDiarmid, Robert Vining, Dashper Glynn, Tom Moss, G. Warren, S. B. Guion, all of whom, with many others, represented vigorous interests which in those days made the trade of Liverpool.
Outside the Exchange, but yet very necessary to the success of its business, were the lawyers and insurance brokers and average adjusters. Amongst lawyers Mr. Bateson and Mr. Squarey enjoyed the largest commercial practice; R. N. Dale was the leading underwriter; and Mr. L. R. Baily was not only very prominent as an average adjuster, but as an arbitrator he afterwards became one of the members for Liverpool. In those days, before the establishment of the system of trade arbitrations, there was abundant employment for lawyers and professional arbitrators.
A sketch of the Liverpool Cotton Exchange would not be complete without a reference being made to the dealings of Maurice Ranger, and others, who in the 'seventies on several occasions tried to corner the market by buying "futures" for delivery in a given month, and then obtaining such a control of the spot market as would prevent the sellers fulfilling their contracts. Mr. Ranger's operations were on a gigantic scale, but there was always a "nigger on the fence." The unexpected happened, and I do not think he ever fully succeeded in these enterprises. He had many imitators, who were equally unsuccessful. Mr. Joseph B. Morgan did a useful work for the cotton trade, by establishing the cotton bank to facilitate clearances in future contracts.
The removal of the Cotton Exchange to the new premises has taken place since my active business days, and the whole course and methods of the trade have changed.
Commerce
In the 'sixties, sailing-ships filled the Liverpool docks, and fully one-half of them flew the American flag. The great trades of Liverpool were those carried on with America, Australia, Calcutta, and the West Coast. The clipper ships belonging to James Baines and Co., and H. T. Wilson and Co., were renowned for their fast passages to Melbourne, while the East India and West Coast ships of James Beazley and Co., Imrie and Tomlinson, McDiarmid and Greenshields, and the Brocklebanks were justly celebrated for their smartness and sea-going qualities. Charles MacIver ruled over the destinies of the Cunard Company, and this line then paid one-third of the Liverpool dock dues. Mr. MacIver was a man of resolute purpose, and a power in Liverpool; in the early volunteer days he raised a regiment of field artillery, 1,000 strong, which he commanded. Many stories are told of his stern love of discipline. A captain of one of the Mediterranean steamers asked his permission as a special favour to be allowed to take his wife a voyage with him. Mr. MacIver whilst granting the request, remarked that it was contrary to the regulations of the Cunard Company. The captain, upon proceeding to join his ship with his wife, to his surprise found another captain in command, and a letter from Mr. MacIver enclosing a return passenger ticket for himself and his wife. William Inman was building up the fortunes of the Inman Line, and was the first to study and profit by the Irish emigration trade. The Bibbys and James Moss and Co. practically controlled the Mediterranean trade. The "tramp" steamer was then unknown, and outside the main lines of steamers there were few vessels; but the Allans were forcing their way to the front, and Mr. Ismay was establishing the White Star Line, which revolutionised Atlantic travel. Mr. Alfred Holt was doing pioneer work in the West India trade, with some small steamers with single engines. These he sold and went into the China trade, in which he has built up a great concern.
The Harrisons were sailing ship owners, but they had also a line of small steamers trading to Charente. They afterwards started steamers to the Brazils and to Calcutta. Looking back, they appear to have been most unsuitable vessels, but freights were high, and to Messrs. T. and J. Harrison belongs the credit of quickly finding out the most suitable steamer for long voyages, and always keeping their fleets well up to date.
We must not forget to mention the merchants of Liverpool, for in those days the business of a merchant was very different from that of to-day. He had to take long and far-sighted views, as there was no such thing as hedging or covering by a sale of futures; his business required enterprise and the exercise of care and good judgment. Among our most active merchants we had T. and J. Brocklebank; Finlay, Campbell and Co.; Baring Brothers; Brown, Shipley and Co.; Malcolmson and Co.; Charles Saunders; Sandbach, Tinne and Co.; Wm. Moon and Co.; Ogilvy, Gillanders and Co.; T. and W. Earle and Co.; J. K. Gilliat; J. H. Schroeder and Co.; Rankin, Gilmour and Co., and others.
In the 'sixties Liverpool had two great trades. The entrepôt trade, the produce of the world, centred in Liverpool, and was from thence distributed to the various ports on the continent. The opening of the Suez Canal, and the establishment of foreign lines of steamers, have largely destroyed this trade, and produce now finds its way direct to Genoa, Antwerp, and Hamburg. The other great trade was in American produce. For this Liverpool offered the largest and best market. This trade is unfortunately seriously threatened. The increase in the population of America is now making large demands upon her productions, and reducing the quantities available for export.
Liverpool was also a considerable manufacturing centre. It was the principal place for rice-milling and sugar-refining, while shipbuilding and the making of locomotives and marine engines contributed largely to her prosperity.
One cannot review the past trade of Liverpool and its present economic surroundings, without feeling some anxiety for the future. Not only have the trades which so long made Liverpool their headquarters been to some extent diverted, but the efforts of rival ports (in many cases railway ports or ports which have little or no concern as to the payment of interest on the money employed in their construction) are directed to the capture of our trade; in this they are still being actively assisted by the railway companies, who grant to them preferential rates of carriage. There can be little doubt that our merchants and shipowners will find new avenues for their enterprise, and new trades will take the place of those partially lost; but Liverpool has in front of her a fight to obtain the just advantage of her geographical position, and it is a fight in which the city must bear its part.
The city will also have to adopt a more enlightened policy, and encourage manufacturing industries. This can only be done by reductions in the city rates, and also in the charges for water. The loss would only be nominal; we should be recouped by an increased volume of trade, and by our people obtaining steady occupation instead of the present casual employment.
The American War
The great war between the Northern and Southern States of America, which was waged from 1861 to 1865, had a far-reaching influence upon Liverpool.
Prior to this date American shipping filled our docks, and 82 per cent. of our cotton imports were derived from the Southern States.
The election of Lincoln as President of the United States, and the rejection of the democratic candidate precipitated a crisis which had been long pending.
Slavery was a southern institution, and although it was conducted in the most humane manner, and many of the worst features of the system were absent, the principle of slavery was abhorrent to a large section of the northern people, and the south feared that with the election of Lincoln this section would become all-powerful. South Carolina was the first state to assert her sovereign right to secede from the union. Other states followed slowly and with hesitating steps, and by the end of 1861 the north and south were engaged in mortal combat. The southern states were ill equipped for the struggle, they had no war material and were dependent for clothing and many of the necessities of life upon the northern manufacturers.
The policy of the north was, therefore, to establish a blockade of the south, both by land and by sea, which caused prices of many commodities to rapidly advance in the south, and cotton, their main export, to quickly decline in value.
The English people sympathised with the south, as the weaker power, and also having been actively associated with them in trade. The arrest of the southern envoys Mason and Slidell upon the British mail steamer "Trent," by the federal commander, did not improve the relationship between Great Britain and the Government at Washington, and created