After a painting by Ramsay, in the possession of the Baroness Burdett-Coutts,

This illustration has been kindly lent by Mr. Maberly Phillips.)

SIR JOHN COPE'S DEFEAT.

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Pretender: You may be quite easy about your gold, for should the Highlanders come this length, it is easy to put it out of their way, but I apprehend they will not be allowed to cross the Firth, nor have any encouragement for so doing as so few are ready to join them. However, the sooner I am cleared of it the better.' He remarks upon the Preston Pans calamity in a letter to Mr. Alexander Coutts of London, September 24th, 'I forwarded you a packet by last post from Mr. John Coutts, which was brought me by his servant from Allanbank. I hope it came safe to hand. I doubt not ere this you've heard of Sir John Cope's defeat We are here in the greatest consternation, not knowing but they may march here, this makes London bills not to be had almost on any terms, the people would give a premium as every one is remitting away what they have.'

The duke of Cumberland, general of the royal forces, passed through Newcastle, Tuesday, January 28th, 1745-6. A legend has been handed down to the effect that on the evening of the day named, he dined with a number of leading citizens, and after dinner said, 'Gentlemen, which of you will lend me £30,000, for I and my army are in great straits for want of money.' All present looked aghast at such a request, except one, who boldly said, 'You shall have it in cash to-morrow,' this being Ralph Carr. Thank you kindly,' said the duke, 'I do not want the money, but only wished to prove your loyalty.' The real facts of the matter I have shown. The money was not all Mr. Carr's own, but received by him as banker from others, and invested by him in these advances.

It is quite possible that the duke and Mr. Carr conversed upon the subject, for in a letter of February 4th, addressed to Messrs. Middleton, bankers, London, Mr. Carr acknowledges the receipt of their letter of the 30th ult., 'announcing the dispatch of £2,000 by carrier.' At this time postal communication was by stage-waggon, which did not travel more than about four miles an hour, so that it took about four days for a letter to travel between London and Newcastle by post. It is therefore quite possible that Ralph Carr may have despatched a private messenger to Messrs. Middleton & Co., after an interview with. the duke on the 28th, and that Messrs. Middleton's letter of the 30th announcing the immediate despatch of £2,000, may have been their prompt response. The Government were obtaining all the gold they

could for Scotland, where their credit was bad. On December 13th Mr. Carr wrote again to his friend John Coutts of Edinburgh, 'Regarding the scarcity of specie for the payment of the troops, we are still in the same position. When Mr. Wade's army lay here they drained this place, and as trade is much at a stand, many of their bills still continue on hand. I have them myself for a considerable sum.' In another letter to the same friend (February 7th) he says, 'Mr. Calcraft parted with me. and is gone with some Dragoons to Hull and Leeds to bring cash.' Again, on March 7th, Mr. Carr writes to Mr. Coutts, the last £2,000 (last of the £30,000) is despatched. If our trade sets in briskly, cash will be more plentiful here, and now and then I may be able to furnish you with a £1,000.'

I have mentioned Mr. Carr corresponding with his London agents, Messrs. Middleton. It is necessary that I should give some little account of this firm, as they had much to do with the starting of the Newcastle bank. They were originally goldsmiths in St. Martin's lane, near St. Martin's church, and are first named in 1692, when George Middleton had a partner, John Campbell. George Middleton died prior to 1748, when George (or John) Campbell took his clerk, David Bruce, into partnership. In 1753, George Campbell was trading alone; he had a niece, Miss Polly Peagram, with whom James Coutts, a young Scotsman from Edinburgh, fell in love, and eventually they were married.1 About this time Mr. Campbell took his nephew into partnership, the firm being Campbell & Coutts. The house of business was near Durham yard in the Strand. James Coutts was one of the sons of John Coutts, of Edinburgh, merchant (his portrait is in the possession of the Baroness BurdettCoutts). He had four sons, John, James, Patrick, and Thomas.

With this knowledge of the London firm, we can now fully understand an account of the formation of the Newcastle bank, written by Ralph Carr some years later, He says, 'The Bank has also made many thous pounds by the interest of money in their hands, for I

Newcastle Journal, May 10th to 17th, 1755-Edinburgh, May 8th. On Saturday se'nnight was married at St. George's Church, Hanover Square, London, Mr. James Coutts, of Jeffrey's Square, merchant, son to the deceas'd John Coutts, esq., Lord Provost, of Edinburgh, to Miss Polly Peagram, of Knight'sBridge, niece to Mr. Campbell, Banker in the Strand, an amiable young lady, with a fortune of £30,000, and that day the new-married couple set out for Bath.'

BEGINNING OF THE BANK.

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most absurdly charged them with no interest for a great many years, being my Hobby Horse, and solely begun by myself, on Mr. Campbell's recommending my beginning a bank in Newcastle, to take his nephew, the present rich Banker, James Coutts, as first my apprentice, and after three years as a partner, for their father, my worthy friend John Coutts, esq., had beg'd me to be a Father to his four sons, this accident gave me the first notion of a Bank, and it proved both advantageous to us and of the utmost service to the country till too many others started up.' We see, then, that the idea of a bank pure and simple for Newcastle originated with Mr. Campbell, who was an early partner in Coutts & Co., and that the Newcastle bank might have had for its first 'junior,' 'James Coutts, the present rich Banker.' Acting upon the suggestion of Mr. Campbell, Mr. Carr eventually entered into partnership with three other gentlemen of Newcastle, to carry on the business of Bankers & Dealers in Exchange.' The first partners were Matthew Bell, John Cookson, Ralph Carr, and Joseph Airey. The first known deed of partnership, which is still in existence, is for ten years from January 1st, 1756. The banking premises were to be at the residence of Mr. Joseph Airey, in Pilgrim street.? The paid up capital would be considered marvellously small in the present day, £500 for each partner, or £2,000 in all, but they were all men of considerable wealth and position. Unfortunately there is some little uncertainty about the time of their first opening. The date has hitherto been ascribed to 1755, but it is likely that it may have been earlier. The Newcastle Courant, for August 23rd, 1755, announces that Yesterday, Notes were issued from the Bank Established in this Town by a company of Gentlemen of Character and Fortune, which will be of infinite Advantage to this place.' And both the Courant and Journal of November 22nd and 29th, 1755, advertise the following:-Notice is hereby given that the Newcastle Bank will be opened on Monday next, at the house late Mr. Robinson's, in Pilgrim Street, where all Busi

2 Miss J. P. Airey, of Bath, writes as follows, January 10th, 1894-'I have re-read the will (at Durham) of my great-great-grandfather, Thomas Airey of Newcastle and Killingworth, the father of your Joseph Airey, the banker, and in it, dated 1770, he leaves his leasehold dwelling house with the appurtenances situate in Pilgrim Street, which he then inhabited, for the remainder of the term unexpired at his death, to my great grandfather, Henry Airey. There is no number or description of the house given by which it can be identified.'