"Where did it all begin" Part 3
The Early Modern
The Forex Trading Floors team have been doing their research again this week on The early Modern times in Forex trading. Enjoy.
In the 1800,s a company called Alexander Brown & Sons traded the foreign currency exchange and had International trade, including tobacco and cotton had considerable involvement in this within the U.S.A.
Alexander Brown was an Irish merchant who emigrated from Ballymena to the USA in 1800. He established the first Investment Banking firm in America.
In 1820 Alexander’s sons, William, George, John and James joined the business and then it was known as Alex. Brown and Sons. By then the business had expanded into sterling exchange and international trade. Eventually Alexander’s sons started branching off into various locations in related businesses. The sons founded their own companies in Liverpool, England, Philadelphia, Pennsylvania and as well as the USA in related businesses to their father.
During 1880 J.M. do Espírito Santo de Silva carried out business for Banco Espírito e Commercial de Lisboa, which was a private Portuguese bank based in Lisbon and is the second largest private financial institution in Portugal in terms of net assets.
Espírito Santo de Silva applied for and was given permission to begin to engage in a foreign exchange trading business. Since then and until 1920, he founded a number of banking institutions, such as Beirão, Silva Pinto & C, in 1884–1887, Silva, Beirão, Pinto & C in 1897–1911, J. M. Espírito Santo Silva in 1911–1915 and J. M. Espírito Santo Silva & C in1915.
1880 is considered by one source to be the beginning of the modern foreign exchange, significant for the fact of the beginning of the gold standard during the year.
Prior to the First World War the control of international trade was much more restricted. Motivated by the outset of a war countries abandoned the gold standard financial system.
Next week on "Where did it all begin" The team at Forex Trading Floors will be continuing with our blog by looking at The Modern to Post Modern Times.
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