Anglo-South American Bank
Encyclopedia
The Anglo-South American Bank was a British
and Argentine bank established with the acquisition of the Anglo-Argentine Bank in 1900 by the Bank of Tarapacá and London. The new bank first took the name of Bank of Tarapacá and Argentina, which it changed in 1907 to Anglo-South American Bank.
’s expanding nitrate
industry, and founded the Bank of Tarapacá and London in 1888; Chile had annexed the Peruvian Province of Tarapacá
in 1883, at the conclusion of the War of the Pacific
. Later, the bank added the coffee
and cocoa business to its interests. A part of the vast financial network supporting the British Empire
, it was an overseas bank with its head office in London
, and the bulk of its operations abroad.
By the turn of the century, the bank was looking for opportunities outside Chile. It was interested in Buenos Aires
, but four British banks were already there, which meant that a new entrant would have difficulty breaking into the market. The Bank of Tarapaca and London therefore decided that it would buy the smallest of the British banks, the Anglo-Argentine Bank, which had been established in 1889 and which had a branch in Buenos Aires and another in Montevideo
, Uruguay
. The Bank of Tarapacá and Argentina carved out a niche in business with Belgium
, cooperating with Belgian banks and securing accounts from Belgian firms. It also had a branch in Germany and gained an account at the Bank of England
.
In 1910, the Bank acquired a minority stake in Commercial Bank of Spanish America, acquiring control in 1917, but operating it separately. The Commercial Bank traced its ancestry through the Cortés Commercial and Banking Company back to Banco de Nicaragua, founded in Managua
in 1888. The Banco de Nicaragua was engaged in financing the coffee trade. The bank registered in England in 1893, changing its name to London Bank of Central America. In 1891, Banco Particular de El Salvador (est. 1885 in El Salvador
), merged with the branch there of London Bank of Central America under the name Banco Salvadoreño; today, this bank is HSBC El Salvador, SA
, part of the HSBC
group. In 1904 the London Bank of Central America merged with the firm of Enrique Cortés and Company and became the Cortés Commercial and Banking Company. Eventually, in 1911, the Board of Directors changed the name to the Commercial Bank of Spanish America.
Its landmark Argentine headquarters, in the heart of the Buenos Aires financial district
, was designed by British architects Paul Bell Chambers and Louis Newbery Thomas in 1912. The ornate building, designed in the Academic
style that characterized numerous Argentine bank buildings at the time, was completed in 1920, and is known as the Palacio de la Reconquista for its 46 Reconquista Street address.
World War I
hurt the Commercial Bank, leading many of its shareholders to sell a majority of the shares to the Anglo-South American. With the acquisition, the Bank now controlled branches in Argentina
(in Buenos Aires, Mendoza
, and Bahía Blanca
), Bolivia
, Central America
, Colombia
, Cuba
, Ecuador
, Mexico
, Peru
, Uruguay
, and Venezuela
. In 1926, the Bank took over the Commercial Bank's branches in Central America, Colombia, Ecuador, and Venezuela.
In 1920 the Bank took over the British Bank of South America, and 60 per cent of the shares of a private banking firm, Banco de A. Edwards y Cía., in Chile. The British Bank of South America traced its origins back to 1862, when it began as the Brazilian and Portuguese Bank. It changed its name in 1866 to the English Bank of Rio de Janeiro
. In 1891, its directors sold the bank to local investors and used the proceeds to found a new bank, the British Bank of South America. It conducted operations in Brazil and Argentina, where it had branches in Buenos Aires and Rosario
. Agustín Edwards Ossandón had founded Banco de A. Edwards y Cía in 1867; it issued banknotes in Chilean peso
s and also pounds sterling.
In the late 1920s and early 1930s the development of synthetic nitrates and the Great Depression
harmed business for the Anglo-South American. In 1936, the Anglo-South American went into liquidation. Its chief rival, the Bank of London and South America
(BOLSA) then took over many of its operations. Banco A. Edwards, for instance, continued as a BOLSA subsidiary, and was acquired by Midland Bank
in 1987; these were, in turn, acquired by HSBC Bank Argentina
in 1997, and Edwards' Chilean operations (its last by that name) were merged into Banco de Chile
in 2001.
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
and Argentine bank established with the acquisition of the Anglo-Argentine Bank in 1900 by the Bank of Tarapacá and London. The new bank first took the name of Bank of Tarapacá and Argentina, which it changed in 1907 to Anglo-South American Bank.
History
A partnership led by John Thomas North, a prominent British investor, became interested in ChileChile
Chile ,officially the Republic of Chile , is a country in South America occupying a long, narrow coastal strip between the Andes mountains to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far...
’s expanding nitrate
Nitrate
The nitrate ion is a polyatomic ion with the molecular formula NO and a molecular mass of 62.0049 g/mol. It is the conjugate base of nitric acid, consisting of one central nitrogen atom surrounded by three identically-bonded oxygen atoms in a trigonal planar arrangement. The nitrate ion carries a...
industry, and founded the Bank of Tarapacá and London in 1888; Chile had annexed the Peruvian Province of Tarapacá
Tarapacá Region
The I Tarapacá Region is one of Chile's 15 first order administrative divisions. It borders the Chilean Arica and Parinacota Region to the north, Bolivia's Oruro Department on the east, the Antofagasta Region on the south and the Pacific Ocean on the west. The port city of Iquique The I Tarapacá...
in 1883, at the conclusion of the War of the Pacific
War of the Pacific
The War of the Pacific took place in western South America from 1879 through 1883. Chile fought against Bolivia and Peru. Despite cooperation among the three nations in the war against Spain, disputes soon arose over the mineral-rich Peruvian provinces of Tarapaca, Tacna, and Arica, and the...
. Later, the bank added the coffee
Coffee
Coffee is a brewed beverage with a dark,init brooo acidic flavor prepared from the roasted seeds of the coffee plant, colloquially called coffee beans. The beans are found in coffee cherries, which grow on trees cultivated in over 70 countries, primarily in equatorial Latin America, Southeast Asia,...
and cocoa business to its interests. A part of the vast financial network supporting the British Empire
British Empire
The British Empire comprised the dominions, colonies, protectorates, mandates and other territories ruled or administered by the United Kingdom. It originated with the overseas colonies and trading posts established by England in the late 16th and early 17th centuries. At its height, it was the...
, it was an overseas bank with its head office in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, and the bulk of its operations abroad.
By the turn of the century, the bank was looking for opportunities outside Chile. It was interested in Buenos Aires
Buenos Aires
Buenos Aires is the capital and largest city of Argentina, and the second-largest metropolitan area in South America, after São Paulo. It is located on the western shore of the estuary of the Río de la Plata, on the southeastern coast of the South American continent...
, but four British banks were already there, which meant that a new entrant would have difficulty breaking into the market. The Bank of Tarapaca and London therefore decided that it would buy the smallest of the British banks, the Anglo-Argentine Bank, which had been established in 1889 and which had a branch in Buenos Aires and another in Montevideo
Montevideo
Montevideo is the largest city, the capital, and the chief port of Uruguay. The settlement was established in 1726 by Bruno Mauricio de Zabala, as a strategic move amidst a Spanish-Portuguese dispute over the platine region, and as a counter to the Portuguese colony at Colonia del Sacramento...
, Uruguay
Uruguay
Uruguay ,officially the Oriental Republic of Uruguay,sometimes the Eastern Republic of Uruguay; ) is a country in the southeastern part of South America. It is home to some 3.5 million people, of whom 1.8 million live in the capital Montevideo and its metropolitan area...
. The Bank of Tarapacá and Argentina carved out a niche in business with Belgium
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
, cooperating with Belgian banks and securing accounts from Belgian firms. It also had a branch in Germany and gained an account at the Bank of England
Bank of England
The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694, it is the second oldest central bank in the world...
.
In 1910, the Bank acquired a minority stake in Commercial Bank of Spanish America, acquiring control in 1917, but operating it separately. The Commercial Bank traced its ancestry through the Cortés Commercial and Banking Company back to Banco de Nicaragua, founded in Managua
Managua
Managua is the capital city of Nicaragua as well as the department and municipality by the same name. It is the largest city in Nicaragua in terms of population and geographic size. Located on the southwestern shore of Lake Xolotlán or Lake Managua, the city was declared the national capital in...
in 1888. The Banco de Nicaragua was engaged in financing the coffee trade. The bank registered in England in 1893, changing its name to London Bank of Central America. In 1891, Banco Particular de El Salvador (est. 1885 in El Salvador
El Salvador
El Salvador or simply Salvador is the smallest and the most densely populated country in Central America. The country's capital city and largest city is San Salvador; Santa Ana and San Miguel are also important cultural and commercial centers in the country and in all of Central America...
), merged with the branch there of London Bank of Central America under the name Banco Salvadoreño; today, this bank is HSBC El Salvador, SA
HSBC El Salvador, SA
Banco HSBC Salvadoreño, S.A., established in 1885, is the third largest bank in the country. It has some 65 branches, 1,800 employees and $1.5 billion in assets.-History:...
, part of the HSBC
HSBC
HSBC Holdings plc is a global banking and financial services company headquartered in Canary Wharf, London, United Kingdom. it is the world's second-largest banking and financial services group and second-largest public company according to a composite measure by Forbes magazine...
group. In 1904 the London Bank of Central America merged with the firm of Enrique Cortés and Company and became the Cortés Commercial and Banking Company. Eventually, in 1911, the Board of Directors changed the name to the Commercial Bank of Spanish America.
Its landmark Argentine headquarters, in the heart of the Buenos Aires financial district
San Nicolás, Buenos Aires
San Nicolás is one of the neighbourhoods of the city of Buenos Aires, Argentina, sharing most of the city and national government structure with neighboring Montserrat and home to much of Buenos Aires' financial sector...
, was designed by British architects Paul Bell Chambers and Louis Newbery Thomas in 1912. The ornate building, designed in the Academic
Academic art
Academic art is a style of painting and sculpture produced under the influence of European academies of art. Specifically, academic art is the art and artists influenced by the standards of the French Académie des Beaux-Arts, which practiced under the movements of Neoclassicism and Romanticism,...
style that characterized numerous Argentine bank buildings at the time, was completed in 1920, and is known as the Palacio de la Reconquista for its 46 Reconquista Street address.
World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
hurt the Commercial Bank, leading many of its shareholders to sell a majority of the shares to the Anglo-South American. With the acquisition, the Bank now controlled branches in Argentina
Argentina
Argentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires...
(in Buenos Aires, Mendoza
Mendoza, Argentina
Mendoza is the capital city of Mendoza Province, in Argentina. It is located in the northern-central part of the province, in a region of foothills and high plains, on the eastern side of the Andes. As of the , Mendoza's population was 110,993...
, and Bahía Blanca
Bahía Blanca
Bahía Blanca is a city located in the south-west of the province of Buenos Aires, Argentina, by the Atlantic Ocean, and seat of government of Bahía Blanca Partido. It has a population of 274,509 inhabitants according to the...
), Bolivia
Bolivia
Bolivia officially known as Plurinational State of Bolivia , is a landlocked country in central South America. It is the poorest country in South America...
, Central America
Central America
Central America is the central geographic region of the Americas. It is the southernmost, isthmian portion of the North American continent, which connects with South America on the southeast. When considered part of the unified continental model, it is considered a subcontinent...
, Colombia
Colombia
Colombia, officially the Republic of Colombia , is a unitary constitutional republic comprising thirty-two departments. The country is located in northwestern South America, bordered to the east by Venezuela and Brazil; to the south by Ecuador and Peru; to the north by the Caribbean Sea; to the...
, Cuba
Cuba
The Republic of Cuba is an island nation in the Caribbean. The nation of Cuba consists of the main island of Cuba, the Isla de la Juventud, and several archipelagos. Havana is the largest city in Cuba and the country's capital. Santiago de Cuba is the second largest city...
, Ecuador
Ecuador
Ecuador , officially the Republic of Ecuador is a representative democratic republic in South America, bordered by Colombia on the north, Peru on the east and south, and by the Pacific Ocean to the west. It is one of only two countries in South America, along with Chile, that do not have a border...
, Mexico
Mexico
The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
, Peru
Peru
Peru , officially the Republic of Peru , is a country in western South America. It is bordered on the north by Ecuador and Colombia, on the east by Brazil, on the southeast by Bolivia, on the south by Chile, and on the west by the Pacific Ocean....
, Uruguay
Uruguay
Uruguay ,officially the Oriental Republic of Uruguay,sometimes the Eastern Republic of Uruguay; ) is a country in the southeastern part of South America. It is home to some 3.5 million people, of whom 1.8 million live in the capital Montevideo and its metropolitan area...
, and Venezuela
Venezuela
Venezuela , officially called the Bolivarian Republic of Venezuela , is a tropical country on the northern coast of South America. It borders Colombia to the west, Guyana to the east, and Brazil to the south...
. In 1926, the Bank took over the Commercial Bank's branches in Central America, Colombia, Ecuador, and Venezuela.
In 1920 the Bank took over the British Bank of South America, and 60 per cent of the shares of a private banking firm, Banco de A. Edwards y Cía., in Chile. The British Bank of South America traced its origins back to 1862, when it began as the Brazilian and Portuguese Bank. It changed its name in 1866 to the English Bank of Rio de Janeiro
Rio de Janeiro
Rio de Janeiro , commonly referred to simply as Rio, is the capital city of the State of Rio de Janeiro, the second largest city of Brazil, and the third largest metropolitan area and agglomeration in South America, boasting approximately 6.3 million people within the city proper, making it the 6th...
. In 1891, its directors sold the bank to local investors and used the proceeds to found a new bank, the British Bank of South America. It conducted operations in Brazil and Argentina, where it had branches in Buenos Aires and Rosario
Rosario
Rosario is the largest city in the province of Santa Fe, Argentina. It is located northwest of Buenos Aires, on the western shore of the Paraná River and has 1,159,004 residents as of the ....
. Agustín Edwards Ossandón had founded Banco de A. Edwards y Cía in 1867; it issued banknotes in Chilean peso
Chilean peso
The peso is the currency of Chile. The current peso has circulated since 1975, with a previous version circulating between 1817 and 1960. The symbol used locally for it is $. The ISO 4217 code for the present peso is CLP. It is subdivided into 100 centavos, although no centavo denominated coins...
s and also pounds sterling.
In the late 1920s and early 1930s the development of synthetic nitrates and the Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
harmed business for the Anglo-South American. In 1936, the Anglo-South American went into liquidation. Its chief rival, the Bank of London and South America
Bank of London and South America
The Bank of London and South America or BOLSA was a British bank which operated in South America between 1923 and 1986.- Origins :The bank was incorporated in England on 27 September 1862 as the London, Buenos Ayres, and River Plate Bank, originally to operate in Buenos Aires...
(BOLSA) then took over many of its operations. Banco A. Edwards, for instance, continued as a BOLSA subsidiary, and was acquired by Midland Bank
Midland Bank
Midland Bank Plc was one of the Big Four banking groups in the United Kingdom for most of the 20th century. It is now part of HSBC. The bank was founded as the Birmingham and Midland Bank in Union Street, Birmingham, England in August 1836...
in 1987; these were, in turn, acquired by HSBC Bank Argentina
HSBC Bank Argentina
HSBC Bank Argentina S.A. is the principal HSBC operating company in Argentina. The seventh-largest bank in the country, it provides a full range of banking and financial products and services, including commercial, consumer and corporate banking, to over 1.2 million customers.-Operations:HSBC...
in 1997, and Edwards' Chilean operations (its last by that name) were merged into Banco de Chile
Banco de Chile
Banco de Chile , is the second biggest banking group of Chile, behind Banco Santander-Chile and ahead of BBVA Chile...
in 2001.
Sources
- Graham, Richard. 1972. Britain and the Onset of Modernization in Brazil, 1850-1914. (Cambridge University Press).
- Jones, Geoffrey. 1995. British Multinational Banking 1830-1990. (London: Oxford University Press).
- Joslin, David. 1963. A Century of Banking in Latin America. (London: Oxford University Press).
- Rippy, J. Fred. 1948. "British Investments in Latin America, 1939," Journal of Political Economy Vol. 56, No. 1, pp. 63–68.