86

involved with business originating from London, and in 1835, he 

established the firm of George Peabody and Company in London. He 

had excellent entree in London business through another Baltimore firm 

established in Liverpool, the Brown Brothers. Alexander Brown came to 

Baltimore in 1801, and established what is now known as the oldest 

banking house in the United States, still operating as Brown Brothers 

Harriman of New York; Brown, Shipley and Company of England; and 

Alex Brown and Son of Baltimore. The behind the scenes power 

wielded by this firm is indicated by the fact that Sir Montagu Norman, 

Governor of the Bank of England for many years, was a partner of 

Brown, Shipley and Company.* Considered the single most influential 

banker in the world, Sir Montagu Norman was organizer of "informal 

talks" between heads of central banks in 1927, which led directly to the 

Great Stockmarket Crash of 1929.

Soon after he arrived in London, George Peabody was surprised to be 

summoned to an audience with the gruff Baron Nathan Mayer 

Rothschild. Without mincing words, Rothschild revealed to Peabody, 

that much of the London aristocracy openly disliked Rothschild and 

refused his invitations. He proposed that Peabody, a man of modest 

means, be established as a lavish host whose entertainments would 

soon be the talk of London. Rothschild would, of course, pay all the 

bills. Peabody accepted the offer, and soon became known as the 

most popular host in London. His annual Fourth of July dinner, 

celebrating American Independence, became extremely popular 

with the English aristocracy, many of whom, while drinking Peabody’s 

wine, regaled each other with jokes about Rothschild’s crudities and 

bad manners, without realizing that every drop they drank had been 

paid for by Rothschild.