
In Niels Lund’s famous painting The Heart of the Empire (), the skyline is
dominated by St Paul’s, but the foreground is the Bank Junction, between the
Mansion House, the Bank of England and the Royal Exchange. For Joseph
Chamberlain, the City of London was ‘the clearing house of the world’, a func-
tion that can be measured first by the number of foreign and imperial banks
established there, including banks from Hong Kong (), Australia (),
New Zealand (), Canada (), as well as from Europe (s), the USA
() and Japan (). London directories recorded bankers in ,
in , of whom were classified as ‘foreign and colonial’. While private
banks declined in number and importance, London-based clearing banks
extended their operations to cover the whole country, and provincial banks
moved their headquarters to London.
90
Insurance became big business: the number of Lloyd’s underwriters increased
from to between and , when it was estimated that two-thirds
of world marine insurance was handled in the City. By , Lloyd’s member-
ship numbered ,. At the other extreme of the insurance industry, life assu-
rance for workingmen was wrested from local benefit societies by large-scale
agencies such as the Prudential, based in Holborn, which, by , had more
than million ‘industrial’ assurance policies. Membership of the Stock Exchange
also rocketed, from in to , in .
91
But the City remained a mixed business community, centred on trade rather
than financial services, and still home to manufacturing and warehouses accom-
modating physical trade in commodities. As late as , per cent of
floorspace in the City was occupied by industry, per cent by warehouses, and
(only) per cent by offices. The growth of ‘office trade’depended on new tech-
nology which facilitated the flow of business information and stimulated the
concentration of commercial activity. In London and Paris were linked by
cross-Channel cable. Fifteen years later, London was linked to New York and,
by , , telegrams per annum were passing between the two cities. The
following year Tokyo and Melbourne were joined to London telegraphically. In
the advent of wireless telegraphy extended the reach of major financial
centres, but it was not until that London and New York were in telephonic
communication. Meanwhile, within the City, information flows were improved
by the use of ticker-tape machines () and the publication of specialist
financial newspapers, including the Financial Times ().
92
Richard Dennis
90
S. Daniels, Fields of Vision (Cambridge, ), pp. –, –; Waller, Town, p. ; King, Global
Cities, p. ; R. C. Michie, The City of London (London, ), p. ; D. Kynaston, The City of
London, vol. : A World of its Own, – (London, ), p. .
91
Sheppard, London –, pp. –; Kynaston, City, , p. ; Michie, City, pp. , –,
.
92
Michie, City, pp. , ; Kynaston, City, , pp. , , ; D. Kynaston, The City of London,
vol. : Golden Years, – (London, ), p. .
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