Walter Cunliffe, 1st Baron Cunliffe
Encyclopedia
Walter Cunliffe, 1st Baron Cunliffe GBE (3 December 1855 – 6 January 1920) was Governor of the Bank of England
from 1913 to 1918, during the critical World War I
era. He was created 1st Baron Cunliffe
in 1914.
in 1855, the eldest of four brothers and two sisters. His father, James Cunliffe, was highly involved with the development of the North Eastern Railway
, and became a merchant banker in the 1860s. He was educated at Harrow School
and Trinity College, Cambridge
.
Cunliffe became a director of the Bank of England
in 1895, becoming Governor
in 1913 and working under Chancellors of the Exchequer
David Lloyd George
and Andrew Bonar Law. Shortly after the outbreak of World War I
, he calmed the money markets after preventing the suspension of gold payments and preventing the removal of foreign securities. He was created Baron Cunliffe, of Headley in the County of Surry, in December 1914.
Cunliffe was appointed a Knight Grand Cross of the Order of the British Empire
in June 1917 and he conflicted with Law later that year when he felt that the Treasury was taking too much of a role in maintaining the Pound sterling
exchange rate
. By November, Cunliffe had been forced to announce his imminent retirement, which occurred in March 1918.
At the Bank of England, Cunliffe personally wrote one of the first office dress codes for women, noting that he was "pained by some of the costumes he encountered" in the hallways. The policy was conservative, allowing that "During the summer, white blouses are allowed but they must be absolutely white without coloured pattern or design upon them."
He was appointed a director of North Eastern Railway
in 1905 and of P. & O. Line
in November 1919. He also received foreign decorations, including Commandeur of the Légion d'honneur
(France
), Grand Cordon of the Order of the Rising Sun
(Japan
), and the Order of St. Anna
(first class; Russia
).
Something of his style is conveyed by the following anecdote from Geoffrey Madan
's Notebooks:
transition of the British economy. The committee reported in 1918 that "it is imperative that after the war, the conditions necessary for the maintenance of an effective gold standard
should be restored without delay." According to author Peter L. Bernstein
, Cunliffe criticized one of the committee's dissenting members, a young John Maynard Keynes
, by stating that "Mr. Keynes, in commercial circles, is not considered to have any knowledge or experience in practical exchange or business problems."
He died at his home, Headley Court, in January 1920 after suffering from septicaemia. His son Rolf succeeded to his title.
Governor of the Bank of England
The Governor of the Bank of England is the most senior position in the Bank of England. It is nominally a civil service post, but the appointment tends to be from within the Bank, with the incumbent grooming his or her successor...
from 1913 to 1918, during the critical 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...
era. He was created 1st Baron Cunliffe
Baron Cunliffe
Baron Cunliffe, of Headley in the County of Surrey, is a title in the Peerage of the United Kingdom. It was created in 1914 for Walter Cunliffe, Governor of the Bank of England from 1913 to 1918...
in 1914.
Early life and education
Cunliffe was born in LondonLondon
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...
in 1855, the eldest of four brothers and two sisters. His father, James Cunliffe, was highly involved with the development of the North Eastern Railway
North Eastern Railway (UK)
The North Eastern Railway , was an English railway company. It was incorporated in 1854, when four existing companies were combined, and was absorbed into the London and North Eastern Railway at the Grouping in 1923...
, and became a merchant banker in the 1860s. He was educated at Harrow School
Harrow School
Harrow School, commonly known simply as "Harrow", is an English independent school for boys situated in the town of Harrow, in north-west London.. The school is of worldwide renown. There is some evidence that there has been a school on the site since 1243 but the Harrow School we know today was...
and Trinity College, Cambridge
Trinity College, Cambridge
Trinity College is a constituent college of the University of Cambridge. Trinity has more members than any other college in Cambridge or Oxford, with around 700 undergraduates, 430 graduates, and over 170 Fellows...
.
Merchant banking and the Bank of England
Walter Cunliffe entered the banking industry in 1880. Together with his two brothers Arthur Robert and Leonard Daneham, he founded the merchant bank Cunliffe Brothers in 1890. On 1 January 1920 it became Goschen and Cunliffe, which failed in December 1939.Cunliffe became a director of 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 1895, becoming Governor
Governor of the Bank of England
The Governor of the Bank of England is the most senior position in the Bank of England. It is nominally a civil service post, but the appointment tends to be from within the Bank, with the incumbent grooming his or her successor...
in 1913 and working under Chancellors of the Exchequer
Chancellor of the Exchequer
The Chancellor of the Exchequer is the title held by the British Cabinet minister who is responsible for all economic and financial matters. Often simply called the Chancellor, the office-holder controls HM Treasury and plays a role akin to the posts of Minister of Finance or Secretary of the...
David Lloyd George
David Lloyd George
David Lloyd George, 1st Earl Lloyd-George of Dwyfor OM, PC was a British Liberal politician and statesman...
and Andrew Bonar Law. Shortly after the outbreak of 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...
, he calmed the money markets after preventing the suspension of gold payments and preventing the removal of foreign securities. He was created Baron Cunliffe, of Headley in the County of Surry, in December 1914.
Cunliffe was appointed a Knight Grand Cross of the Order of the British Empire
Order of the British Empire
The Most Excellent Order of the British Empire is an order of chivalry established on 4 June 1917 by George V of the United Kingdom. The Order comprises five classes in civil and military divisions...
in June 1917 and he conflicted with Law later that year when he felt that the Treasury was taking too much of a role in maintaining the Pound sterling
Pound sterling
The pound sterling , commonly called the pound, is the official currency of the United Kingdom, its Crown Dependencies and the British Overseas Territories of South Georgia and the South Sandwich Islands, British Antarctic Territory and Tristan da Cunha. It is subdivided into 100 pence...
exchange rate
Exchange rate
In finance, an exchange rate between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency...
. By November, Cunliffe had been forced to announce his imminent retirement, which occurred in March 1918.
At the Bank of England, Cunliffe personally wrote one of the first office dress codes for women, noting that he was "pained by some of the costumes he encountered" in the hallways. The policy was conservative, allowing that "During the summer, white blouses are allowed but they must be absolutely white without coloured pattern or design upon them."
He was appointed a director of North Eastern Railway
North Eastern Railway (UK)
The North Eastern Railway , was an English railway company. It was incorporated in 1854, when four existing companies were combined, and was absorbed into the London and North Eastern Railway at the Grouping in 1923...
in 1905 and of P. & O. Line
Peninsular and Oriental Steam Navigation Company
The Peninsular and Oriental Steam Navigation Company, which is usually known as P&O, is a British shipping and logistics company which dated from the early 19th century. Following its sale in March 2006 to Dubai Ports World for £3.9 billion, it became a subsidiary of DP World; however, the P&O...
in November 1919. He also received foreign decorations, including Commandeur of the Légion d'honneur
Légion d'honneur
The Legion of Honour, or in full the National Order of the Legion of Honour is a French order established by Napoleon Bonaparte, First Consul of the Consulat which succeeded to the First Republic, on 19 May 1802...
(France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
), Grand Cordon of the Order of the Rising Sun
Order of the Rising Sun
The is a Japanese order, established in 1875 by Emperor Meiji of Japan. The Order was the first national decoration awarded by the Japanese Government, created on April 10, 1875 by decree of the Council of State. The badge features rays of sunlight from the rising sun...
(Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
), and the Order of St. Anna
Order of St. Anna
The Order of St. Anna ) is a Holstein and then Russian Imperial order of chivalry established by Karl Friedrich, Duke of Holstein-Gottorp on 14 February 1735, in honour of his wife Anna Petrovna, daughter of Peter the Great of Russia...
(first class; Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
).
Something of his style is conveyed by the following anecdote from Geoffrey Madan
Geoffrey Madan
Geoffrey Spencer Madan was an English belletrist and both a collector and a creator of aphorisms, many of which are recorded in his Notebooks.-Biography:...
's Notebooks:
Lord Cunliffe, giving evidence before a Royal Commission, at the special request of the Chancellor of the Exchequer, would only say that the Bank of England reserves were "very, very considerable". When pressed to give even an approximate figure, he replied that he would be "very, very reluctant" to add to what he had said.
Cunliffe Committee
As Governor of the Bank of England, Cunliffe chaired a committee, known as the Cunliffe Committee, for the purpose of reporting recommendations on the post-World War IWorld 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...
transition of the British economy. The committee reported in 1918 that "it is imperative that after the war, the conditions necessary for the maintenance of an effective gold standard
Gold standard
The gold standard is a monetary system in which the standard economic unit of account is a fixed mass of gold. There are distinct kinds of gold standard...
should be restored without delay." According to author Peter L. Bernstein
Peter L. Bernstein
Peter Lewyn Bernstein was an American financial historian, economist and educator whose development and refinement of the efficient-market hypothesis made him one of the country's best known authorities in popularizing and presenting investment economics to the general public.-Education and...
, Cunliffe criticized one of the committee's dissenting members, a young John Maynard Keynes
John Maynard Keynes
John Maynard Keynes, Baron Keynes of Tilton, CB FBA , was a British economist whose ideas have profoundly affected the theory and practice of modern macroeconomics, as well as the economic policies of governments...
, by stating that "Mr. Keynes, in commercial circles, is not considered to have any knowledge or experience in practical exchange or business problems."
Personal life
Cunliffe married firstly Mary Agnes (died 1893) in 1890, younger daughter of Robert Henderson, and secondly in 1896 Edith Cunningham, fifth daughter of Colonel Robert Tod Boothby, who together had three sons and three daughters.He died at his home, Headley Court, in January 1920 after suffering from septicaemia. His son Rolf succeeded to his title.