Edward Payne (banker)
Edward Payne | |
|---|---|
| Born | 1716 |
| Died | 1794 |
| Occupation(s) | Merchant, Banker |
| Known for | Governor of the Bank of England (1771–1773) |
Edward Payne (1716–1794) was a British merchant who held the position of Governor of the Bank of England between 1771 and 1773.
Background
He was the second son of John Payne (deceased 1746), a London-based haberdasher and director of the East India Company, and his wife Lydia Durrant. His paternal grandfather, also named John Payne (died 1706), originated from Cottesbrooke, Nottinghamshire. Upon his father's passing, Edward inherited £1000 in Bank of England shares, an equal amount in East India Company stock, as well as real estate.
In commerce
Edward's brother, John Payne, joined forces with Abel Smith (1717–1788) of Smith's Bank in 1758 to establish the firm Smith & Payne. Edward himself co-owned the East Indiaman vessel Shaftesbury, while John held a directorship within the East India Company.
Following John's death in 1764, Edward entered into partnership with John's son René. Their commercial enterprise was based in London's Lothbury district, notably operating out of King's Arms Yard within Coleman Street Ward.
By 1774, Edward and René Payne were importing tobacco from Virginia's Upper James Naval District. A letter sent in 1775 by loyalist Neil Jamieson to the Paynes was intercepted by George Washington and subsequently forwarded to the Continental Congress. In February 1777, Edward appeared before the House of Lords to provide testimony concerning trade losses resulting from the American Revolutionary War, alongside other leading merchants and traders. His business was registered at his Coleman Street location and he maintained associations with Cornhill as well.
Throughout the 1780s, Payne chaired the London Committee representing merchants engaged in trade with North America. In 1789, George Smith (1765–1836) acquired a one-fifth interest in Edward & René Payne. That December, Payne was publicly informed about the revocation of an Order in Council that had previously limited corn imports from the United States.
Bank of England
Payne served on the board of directors for the Bank of England beginning around 1756 or 1757. He was appointed Deputy Governor of the Bank of England from 1769 until 1771, after which he became Governor, succeeding William Cooper and preceding James Sperling. His governorship took place during significant financial events such as the Bengal Bubble of 1769 and the British credit crisis of 1772–1773. In 1772, Payne endorsed George Colebrooke's stock market manipulations, a stance that drew criticism from publicist William James addressed to Benjamin Franklin.
After Tory MP Sir Robert Ladbroke's death in 1773 for the City of London, Payne was considered as a potential replacement. A gathering at the Half Moon Tavern—owned by the Saddlers Company—supported his candidacy due to his efforts protecting trade during 1771–72. Nonetheless, at the subsequent by-election, Frederick Bull, aligned with Wilkite politics, narrowly prevailed over John Roberts.
During financial difficulties faced by Smith & Payne in 1776–77—largely caused by Robert Smith’s expansion initiatives—Payne arranged for the Bank of England to accept certain discounted bills. This controversial accommodation was described as "extraordinary re-discount facilities." Although never officially connected to Smith’s banking operations in London or Nottingham, Payne acted as an advisor and received approximately half of their profits through agreements involving his brother John and nephew René.
Later years
On 7 January 1789, during the Regency Crisis of 1788, Payne attended a gathering of "Merchants, Bankers, and Traders" at the London Tavern, presided over by Samuel Beachcroft. There, he put forward a motion expressing gratitude to William Pitt the younger for his "able, spirited and manly defence of the sacred Constitution of this Empire". Payne passed away on 9 October 1794 at his commercial premises located in the City of London. He was also affiliated with the Society for the Encouragement of Arts, Manufactures and Commerce.
Role as trustee for Grenada estates
Payne assumed the role of trustee to manage the insolvency issues faced by debtors connected to George Peters, who served as a director at the Bank of England. Among these debtors were Israel Wilkes and John de Ponthieu, owners of Grenadian plantations that utilized enslaved labor. Payne had previously engaged in business with de Ponthieu. Other trustees involved included John Julius Angerstein from Lloyd's of London.
The establishment of this trust came after Edward and Rene Payne attempted to recover debts from the bankrupt Larnac brothers based in Martinique. Acting as syndics, Edward Payne and Josias de Ponthieu sought legal counsel from the Earl of Shelburne in Paris concerning claims against the Larnacs.
In 1768, Peters enlisted Angerstein’s assistance, who then brought Payne and John Wilkinson into the matter. By 1771, the trustees had mortgaged the Grenada estates to Daniel Giles (holding 75%) and merchant Daniel Richard (holding 25%, deceased 1793).
Family
Payne was married to Frances (who died in 1821). Their children included:
- Frances, their eldest daughter, who in 1784 wed the Rev. George Pickard, rector of Bloxworth, son of Jocelyn Pickard and Henrietta Trenchard—the latter being daughter of George Trenchard MP.
- Eliza, who married Captain Robert Adair (1760–1844) of Ballymena in 1786.
- John George Payne, who married Catherine Garrick in 1781; she was daughter of George Garrick and niece to David Garrick. During the 1780s, John George was a partner in Smith, Payne & Smiths bank.
The Edward Payne referenced in the 1800 chancery case Lord Carrington v Payne regarding Rene Payne’s will was Rene’s brother; Rene passed away in 1830 at age eighty-four.
George François Grand—first spouse of Catherine Grand and author of Narrative of the Life of a Gentleman Long Resident in India—was apprenticed around 1765 to Robert Jones. Claiming familial ties to the Paynes through Edward’s brother John Payne’s widow, he sought her assistance after feeling discontented with his apprenticeship and an East India Company cadetship offer at Bencoolen by Jones. He departed for Bengal early in 1766. While in Calcutta, he encountered Robert Clive, who commended John Payne but did not grant Grand a commission. Following Jones’s death in 1774, Edward Payne helped secure a writership position for Grand.
Legacy
In his will, Payne made provisions for his wife, son John George, daughter Elizabeth Adair, and son-in-law George Pickford. Additionally, he bequeathed £100 to support the poor in Ealing—a sum later increased by Sir Charles Morgan and Frederick Augustus Wetherall. The leasehold of Sutton Valence manor, inherited from his father, was passed down to his descendants.
Rene Payne died in 1799. After the passing of the original partners, Edward and Rene Payne & Co. continued business operations under their established name.
Edward Payne’s likeness appeared on the King of Diamonds card within a 1992 Bank of England playing card set.
Ealing House
According to Burke (1894), the residence of Edward Payne was known as Ealing House. By the year 1813, it was characterized as "a large and gloomy residence" and stood vacant.
In The Environs of London (1795), Lysons recorded Payne as the proprietor, with earlier ownership attributed to John Huske and William Adair. However, a correction issued in 1796 clarified that Ealing House had passed into the hands of the Earl of Galloway, and by 1811, Colonel Douglas was identified as the owner.
Gillian Darley's biography of Sir John Soane situates Edward Payne's Ealing House adjacent to Soane’s Pitzhanger Manor around 1800. Should the property have been sold by that time, this mention might be historically inaccurate.