Accepting Houses Committee x British Merchant Banking and Securities Houses Association

Accepting Houses Committee x British Merchant Banking and Securities Houses Association

An Accepting House is a firm or company, an important part of whose business consists of accepting bills of exchange. Following the sudden outbreak of war in 1914, a large group of London merchant banks, heavily exposed to losses through customers in enemy countries not providing funds to meet acceptances when they fell due for payment, formed the Accepting Houses Committee. Its representations to the authorities assisted in the establishment of a moratorium on the payment of enemy bills. After the war, the Committee continued as a loose knit body represented by a small executive committee which met irregularly to discuss matters of mutual concern, in particular the Standstill arrangements concluded with Germany and other countries in the early 1930s. Its role was enhanced in 1936 when the British Government instituted a clearing for trade and payments between the United Kingdom and Spain. The Committee became the official liaison between the Government and Accepting Houses for making special arrangements for the clearing. On the outbreak of war in 1939, Exchange Control regulations were brought into force, and much of the administration was entrusted to the banking community including Accepting Houses. Membership of the Committee at this time meant that the member was automatically an authorised dealer in foreign exchange, and the need for an Accepting House to be a member of the Committee was almost a necessity. This led to a revision of the membership and by 1940 the Committee was fully representative of all Accepting Houses doing active business.

In 1939, the Accepting Houses Committee was reorganised into a body of 14 "recognised" merchant banks with the remaining members being categorised as "constituents". After the war, membership stabilised at 17 first class houses and no "constituents". Membership was by invitation, but an essential qualification was that members' bills had to be taken by the Bank of England at the finest discount rate. The Committee therefore became the forum and mouth piece of the City's most respected merchant banks. In 1988, its activities were merged with those of the Issuing Houses Association, with which it had shared premises and a small secretariat, resulting in the formation of the British Merchant Banking and Securities Houses Association. Further information about the history of Accepting Houses and the Accepting Houses Committee may be found in The Accepting Houses of London (CLC/B/003/MS29321) and in CLC/B/003/MS29325.

Until 1936, the Accepting Houses Committee did not have premises or staff of its own. From the formation of the Committee in 1914, Frederick Huth and Company had accommodated the Committee and provided, without charge, secretarial and other services. Frederick Huth Jackson was the person primarily responsible for bringing the Committee about and had been its first Chairman. In 1936 Frederick Huth and Company decided to transfer its business to the Overseas Bank Limited and withdraw these facilities. The Committee had to find premises, engage staff, and also set up a mechanism by which its constituents could bear the expenses of its work. The first premises were at 16 Bishopsgate where the Committee remained until 1959. Subsequent premises were as follows: 19 Fenchurch Street, 1959-63; St Albans House, Goldsmith Street, 1963-9; 20 Fenchurch Street, 1969-73; Roman Wall House, 1-2 Crutched Friars, 1973-81; and Granite House, 101 Cannon Street, 1981-8.