Holmes' Bank was a bank in the British

Crown dependency The Crown Dependencies are three offshore island territories in the British Islands that are self-governing possessions of the British Crown: the Bailiwick of Guernsey and the Bailiwick of Jersey, both located in the English Channel and toge ...

of the

Isle of Man The Isle of Man ( , also ), or Mann ( ), is a self-governing British Crown Dependency in the Irish Sea, between Great Britain and Ireland. As head of state, Charles III holds the title Lord of Mann and is represented by a Lieutenant Govern ...

, providing private and business banking services to the local population.''Isle of Man Examiner.'' Friday, February 12, 1937; Page: 10 Holmes' Bank crashed spectacularly in 1853 resulting in hardship, unemployment,

bankruptcy Bankruptcy is a legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the deb ...

and destitution for many of the inhabitants of the Island.

History

Origins

The early history of banking on the

is rife with incompetence and mismanagement. Whilst the earliest banks in

England England is a Countries of the United Kingdom, country that is part of the United Kingdom. It is located on the island of Great Britain, of which it covers about 62%, and List of islands of England, more than 100 smaller adjacent islands. It ...

were an integral part in trading as far back as the 12th Century, banking was unknown on the

until the beginning of the 19th Century. The earliest Manx bank began business in 1802 at Castletown. It was known as the

Isle of Man Bank The Isle of Man Bank is a bank in the British Crown dependency of the Isle of Man, providing retail, private and business banking services to the local population. Incorporated in 1865, it has operated as a trading name of RBS International sin ...

and carried on trading until 1818.''Isle of Man Daily Times.'' Tuesday, January 17, 1961; Page: 3 A feature of Manx life at that time was a profusion of bank notes in circulation issued by tradesmen for small amounts and an Act to control note issues was passed in 1817. Five bank licences were issued under this law. The Bank of Wulff and Forbes opened in 1826 and was taken over 10 years later by the Isle of Man Joint Stock Banking Company, which ended in a disaster in 1843. In 1836 the Isle of Man and Liverpool Banking Company was formed, being wound up two years later. Another bank, the Isle of Man Commercial Bank was also formed during the mid 1840s, being absorbed into the

City of Glasgow Bank The City of Glasgow Bank was a bank in Scotland that was largely known for its spectacular collapse in October 1878, which ruined all but 254 of its 1,200 shareholders since their liability was unlimited. History The bank was founded in 1839 ...

, which traded on the

under the title Bank of Mona, which became the bank of the

Isle of Man Government The Isle of Man Government () is the government of the Isle of Man. The formal head of the Isle of Man Government is the Lieutenant Governor of the Isle of Man, Lieutenant Governor, the personal representative of the Lord of Mann (currently Char ...

Formation

Holmes's Bank was set up by three brothers; John, Henry and James Holmes the bank's premises being situated on South Quay,

Douglas Douglas may refer to: People * Douglas (given name) * Douglas (surname) Animals * Douglas (parrot), macaw that starred as the parrot ''Rosalinda'' in Pippi Longstocking * Douglas the camel, a camel in the Confederate Army in the American Civil ...

. The brothers' Holmes were involved in various business ventures, ostensibly establishing themselves in the running of passenger and cargo shipping, banking being merely a subsidiary activity of what was virtually a general trading concern.

Operation

The brothers commenced their banking operation in 1815 the bank forming a reputation for soundness and stability, serving the people of the

in a prudent manner up until 1845. However, in the years 1846 and 1847 the bank began involving itself in reckless trading speculations, chiefly involving

Liverpool Liverpool is a port City status in the United Kingdom, city and metropolitan borough in Merseyside, England. It is situated on the eastern side of the River Mersey, Mersey Estuary, near the Irish Sea, north-west of London. With a population ...

brokers paving the way to its subsequent collapse.

Failure

Henry Holmes died in 1848, the banking business and other concerns being carried on by his surviving brothers. Profligate practice continued resulting in the failure of Holmes' Bank in 1853, leaving liabilities of approximately £300,000.

Aftermath

The failure of Holmes' Bank caused acute misery and suffering on the Isle of Man. An investigation of the affairs of the bank disclosed that notes far in excess of the number authorised by licence had mysteriously got into circulation.

References

{{UK banks Banks established in 1815 British companies established in 1815 1815 establishments in the Isle of Man 1815 establishments in England Defunct banks of the Isle of Man Corporate scandals Former investment banks History of banking Economic history of the United Kingdom Bank failures Accounting scandals 19th-century disestablishments in the Isle of Man 1853 disestablishments in England British companies disestablished in 1853