Who was Alexander Brown?

A Protestant in Ireland, Alexander Brown had worked as an auctioneer in the linen market in Belfast, which after 1785 was conducted in an impressive building owned by the Earl of Donegall. The building's lease was bought by John Brown, founder of the Bank of the Four Johns in Belfast, but who does not appear to have been a close relation of Alexander. Although his auction business was profitable in Ballymena, after visiting a brother, Stewart Brown, in Baltimore, Alexander decided to settle in that city on the opposite side of the Atlantic. Another brother remained behind in London to work with him in an import-export business. By 1811 all four of his sons were partners with him in Alex. Brown & Sons, headquartered in Baltimore.

The British Browns

William Brown, his eldest son, returned to England in 1809 and set up a brokerage firm that would operate first as W. and J. Brown, renamed in 1839 as Brown, Shipley & Co., in Liverpool. William’s role in the business, among other duties, would be to find wealthy investors to buy the paper issued in America.

Finding such investors required that he create a network around himself of powerful society members with whom to socialize, possibly one of the reasons he first stood for Parliament in 1846. Twenty years later he was created a baronet, Sir William Brown of Beilby Grange (a mansion near Leeds) and Richmond Hill (near Lancaster). His descendants are set out in Burke's Peerage. (See also website, The Peerage).

Sir William Brown

It is a truism in banking families that they frequently marry not-too-distant cousins and relations of their father’s business associates, helping to keep the money—and the secrets—within the family. Researching genealogies is, therefore, a very useful tool in understanding confidential financial relationships.

When William returned to Britain in 1809, his younger brothers were still being educated by a country minister at Catterick in North Yorkshire. Initially, William went to Ireland to work at the market where Alexander had started his career. There he met and married the daughter of his father’s Belfast linen supplier, Andrew Gihon. Although they had eight children, only two lived to become adults, and none of those survived him.

• Grace (1812-1849), in 1831 married John Hargreaves, whose family owned the calico print works at Accrington—midway between Leeds and Lancaster. Grace Hargreaves' son John continued with the calico business, while her son Thomas pursued a military career.
• Alexander (1817-1849), married James Brown’s daughter, Sarah Benedict Brown, during a visit to America in 1838, thus uniting the English and American house of the brokerage company and the bank in which the brothers were all partners. Their children were as follows: William Richmond Brown (1840-1906); James Clifton Brown (1841-66); Louisa (1842-63), who married Capt. Alexander William Cobham; Alexander Hargreaves Brown (1844-76).

William's grandson, Alexander Hargreaves Brown, became a Member of Parliament in 1863 and served until 1902, while during that time becoming a partner of the Brown Brothers bank in 1875, later serving as senior partner in the London office on Pall Mall.

These two branches of Sir William's descendants continued to marry their children to their cousins and thus perpetuate the financial connections on both sides of the ocean.

James Brown was the only one of Alexander Brown's sons who married a native American girl. In December 1817 he married Louisa Kirkland Benedict, youngest daughter of Dr. Joel Benedict, and his wife Sarah McKown Benedict. Her father has sometimes been confused with Dr. Benedict's nephew and namesake, Rev. Joel Tyler Benedict, a Presbyterian minister who was working at a branch of the American Tract Society in Philadelphia when James arrived in that city, having been tasked by his father to  assist his brother, John A. Brown, in starting a branch of Alex. Brown & Sons there, and it is possible he met her through this relationship since the Brown family had long been Presbyterian rather than Episcopalian.

James Brown of New York

Eliphalet Nott

Connections to church hierarchies

In 1817 James Brown, Alexander Brown's youngest son who had recently relocated from Baltimore to Philadelphia, married Louisa Kirkland Benedict, youngest daughter of Dr. Joel and Sarah McKown Benedict.

Her parents' eldest daughter, Sarah "Sally" Benedict, was already 21 years of age by the time Louisa was born in 1795.  Union College was founded that same year in Schenectady, New York, and Dr. Joel Benedict's student and new son-in-law, Rev. Eliphalet Nott, was named the president of the college.

The eminent Potter family

Although Sally Benedict Nott died the year her husband ascended to that position, she left behind a daughter, Sarah Maria Nott, with whom Louisa was quite close. Seven years after James Brown became part of the Benedict family, his wife's niece married Rev. Alonzo Potter, her father's foremost divinity student at Union College. He also became a professor at the college (1831-45), after which he was named Bishop of the Pennsylvania Diocese of the Protestant Episcopal Church.

Louisa Brown died in 1829 and her niece followed a decade later. James Brown waited two years before marrying Eliza Maria Coe, the orphaned daughter of another Presbyterian minister, Dr. Jonas Coe of Troy, New York. Alonzo Potter married, after the death of Sarah Maria Potter, the daughter of her brother Robert, who was also named Sarah Benedict, and with her had three more sons.

The daughter born to James Brown and Louisa Benedict in 1827 would grow up to marry Howard Potter, the second son of Louisa's favorite niece, Sarah Benedict Nott and her husband Bishop Alonzo Potter. After their marriage, Howard Potter became a partner in the Brown Brothers & Co. investment bank in New York, although he spent many years as manager of the London office. It will be recalled that James Brown's eldest daughter, Sarah Benedict Brown, had married her first cousin Alexander, whose father was Sir William Brown of the Liverpool and London offices. Two of their siblings--Grace and William--were lost aboard ship in 1854 as young adults. The youngest sibling, Margaretta Hunter Brown, married James Couper Lord, a son of the firm's attorney, Daniel Lord and his wife Susan DeForest. The Lord family, as has been mentioned previously at this blog, is one of the most significant families involved in the Skull and Bones secret society.

It has also been mentioned at this author's blog, Quixotic Joust, that the DeForest family were connected to some high-level members of the Episcopal Church, such as Dr. Horatio Potter, who became acquainted with Frank G. Wisner shortly before he was chosen to become head of a select arm of intelligence in the United States. We will soon discuss how all these connections interlink with the Brown Brothers investments.

GLOBAL FAMILY NETWORKS

In 2006 the author was asked to deliver a presentation for a Sanders Research Associates conference, that was later cancelled. The ideas that arose from that endeavor have been expanded. What appears below is the first segment, which will be continued later.

Micro Versus Macro View of the World

During my brief talk, I want give an overview of my own concept of the historical development of transnational globalism by use of a metaphor that effectively depicts the growth and evolution over the last five centuries of similar patterns that have occurred among various nations and the economic models they use to sustain that nation's economy.

Then I want to go into a little more detail into one family I have studied which has had a very significant role in behind-the-scenes transnational finance. The family we’ll be looking at, like most merchant bankers, started out as just merchants. Whether we use other terms, like “private” bankers, “investment” bankers, or simply “venture capitalists,” they are essentially small groups of very discreet people—often family members—who have access to vast pools of wealth, which they promise to invest at great rates of return. Their costumes may change from one generation to the next, but they are always at the scene, pulling strings (often hidden behind the curtain) to make history unfold as it does.

Patterns Beginning in Early 16th Century

The earliest examples we find of global trade, such as the exploits of Marco Polo, were family enterprises. Even Christopher Columbus, after his initial discovery of the “new world,” made four or five subsequent voyages with his brothers and son. Shipbuilding was a family business, and therefore the seamen who became traders operated in family units as they set out in search of the unknown.  Over time they established trading networks in various ports throughout the world, attempting to make a profit each time they unloaded their ships in a different location. The danger was great, but the promise of large returns on a successful voyage made the risk worthwhile.

It didn’t take the seasoned travelers long to realize, however, that competition brought profits down, and that it could be eliminated by acquiring a monopoly from their local prince, or a concession from a foreign one—to have the sole right to engage in that particular enterprise in that precise location. However, such a trading right would be worthless unless it could be protected by force. The development of nation states occurred as local fiefdoms expanded, garnering increased power to secure these commercial rights. Political boundaries went as far as the lord of that domain could protect the people within.

Organic Metaphor

I tend to think in organic, rather than mechanical, terms. Visualize if you can a series of oceans surrounding masses of land. Each mass of land with a separate economic system is depicted as if it were a self-sustaining plant growing in an earthen pot. There is a root system, a cluster of leaves and a stem.   

Spider Plant as metaphor

Over the centuries, as the plant increases in size, it becomes root-bound. The roots consist of members of the economic society who cultivate the soil in some fashion--like miners or farmers--who have become unable to provide enough resources from the restrictive boundaries of this pot to furnish nutrients for the plant’s leaves in order to produce a surplus above bare subsistence that would allow the plant to produce flowers or seeds to ensure physical survival. 

It was that lack of resources, as well as the bland existence of life that motivated explorers to escape the walls of the fief during the dark ages. And it was what they brought back from their adventures that resulted in further change.

Thus the Renaissance was like a genetic mutation of the medieval plant. Think of the stem of that plant as being the lord of the manor whose responsibility was to ensure the most efficient production of all units within the plant by properly coordinating distribution of raw resources and finished consumer goods. He served as the clearinghouse or marketplace where all such products were exchanged. He could maintain power only so long as he was able to satisfy the needs of these units. The lord recognized his power was draining away when there was no longer enough soil in the pot to feed all the leaves. He either had to enlarge the pot (something that would require a war), or he had to find another way of getting the necessary nutrients. The solution he found was to change the plant’s structure.  

Since this is my metaphor, I allowed my lord of the pot to create the spider plant; lords of the various pots equate to the crowned heads of seventeenth-century Europe, whose lawyers devised the concept of the chartered company. These crowned heads were, by this time, desperate for new resources, having found that wars to increase the size of their pots had further depleted their resources. As new lands were claimed on behalf of each root-bound pot by explorers  authorized to trade outside the pot, the lord found he or she had magically acquired the means to pay these explorers as bankers suddenly popped up, generously offering to turn that new land into ready cash (specie) for the pot.

 “Give us a portion of that new land as a grant,” they said, “and we will do your work for you, as long as we have a monopoly on the trade.”  

Like stems of a spider plant, each pot on the original map began sending out new shoots, each with its own cluster of roots and leaves ready to plant itself in new soil and recreate itself. When this shoot (like a colony) settles on soil, its roots can develop to feed its leaves while still being connected to the original stem by the stolon, which allows it to send the required percentage of absorbed minerals back to the parent plant, whether assessed against the company or the settlers brought there by the company.  

In return, the lord is able to promise protection to the colony should a threat occur. Thus a reciprocal relationship was developed between trading families who invested in such charter companies and the heads of state. That relationship persists to this day even though the legal framework has evolved from chartered companies into multinational corporations.

Unfortunately, a metaphor is not the truth. It is a visual and an intellectual aid to assist in understanding the truth. It must be tested for accuracy. The plant metaphor acts as the macro illustration of the world. What follows is the micro test. Here we focus on one example--one family network arrived in America only a decade or so after the Constitution was adopted. We will examine that family to learn how its banking business became intertwined with governments in America and abroad, in so doing testing whether the metaphor we have presented gives a true and accurate picture of the world.

With reference to modern financial institutions, what is now called Deutsche Bank Alex. Brown, Inc. is the result of a series of investment bank buyouts culminating in 1999 when the German bank acquired all assets of the old  investment bank established in Baltimore, Maryland, by Alexander Brown who first arrived in America in 1800 to engage in the linen trade. 

White Linen Hall in Belfast, Ireland

Brown’s parents were William and Margaret Davison Brown, who were living in Ballymena, Ireland, when Alexander was born in 1764. Scots like the Browns had begun to settle in this section of Ireland at the height of Parliament's legal dueling with Charles I in 1641.

Fifty years later, upon accession of William and Mary and creation of the Bank of England, the Protestant population began to explode in Catholic Ireland restrictions on the woollen trade, coupled with legislation allowing linen to be shipped duty-free to England and to British colonies in America, increased the importance of the linen industry in Northern Ireland.

Most of the immigrating Scottish families stemmed from Huguenots who had fled France during the latter part of the 16th century rather than convert to Catholicism. For more than a century the flax and linen industry would be Northern Ireland’s main source of wealth as trading networks were established by immigrating families.

Conception of National Interest with Disastrous Implications

The Americans were marvelously ingenious in their exploitation of the commerce. They managed to circumvent both the East India Company's franchise and the Chinese Government's prohibition and carried on a very lucrative, if antisocial and ultimately ruinous trade. Finally, the fact of American participation in the [opium] traffic fundamentally altered the American posture in the Far East. It grew like the Southern view of slavery -- what began as an economic necessity ultimately developed into a conception of national interest with disastrous implications for the future.

Quoted from an article by Professor Jacques M. Downs, "American Merchants and the China Opium Trade, 1800-1840," published in The Business History Review, Vol. 42, No. 4 (Winter, 1968), pp. 418-442. Downs was professor of history at St. Francis College in Biddeford, Maine. (See his obituary in the September 17, 2006 Portland Press Herald / Maine Sunday Telegram.)

The entire 26-page research article (available for purchase at various websites or free from JSTOR in libraries which subscribe), from which the above quote is taken, appeared in print the same year that the assassinations of Martin Luther King, Jr. and Robert F. Kennedy ripped apart the United States. I remember that year with both horror and awe, as my own life suffered a violent philosophical wrenching so alien to what was occurring all around me. As a sophomore in high school when President Kennedy had died from assassins' bullets, I had almost completed my college courses as a major in history and government in my West Texas home by 1968. While friends and family carried on as though nothing had occurred, my life was changed forever.

Courtesy of Gnostic Center

The previous year my English lit class had studied Plato's Republic, and I felt as though I were living the scene where Socrates describes the cave-like prison where inhabitants face a wall where they view only the shadows of what is going on behind them, created by a light behind the events being played out in reality.

It was not unlike the mirror image of a world into which Alice had climbed--almost real, but not quite real. And the sound track was being provided for us daily to describe the events, that we couldn't quite trust as truth. My education was only just beginning, but it was interrupted for quite a few years of angry cynicism that kept me off-track. I did not know where to turn. I began to distrust everyone and everything. Finding my way back was a long, hard road. I watched as many of my contemporaries were sucked into Vietnam, either as war or anti-war participants. Little did we know at the time that the history about which Professor Downs had written was coming to pass.

Excerpts from "American Merchants and the China Opium Trade, 1800-1840," by Jacques M. Downs

An Existing Business Model

Most of our knowledge comes from the accounts of Europeans visiting or residing in Smyrna in the late century. More complete information apparently must await the systematic exploitation of Turkish records. [See - By far the best sources I have found to date are Salaheddin Bey, La Turquie a l'exposition universelle de 1867 (Paris, 1867) 48-56, and Carl von Scherzer, Smyrna (Vienna, 1873), 136-140. Scherzer was Austrian Consul at Smyrna for many years and should know his subject. See also O. Blau, "Etwas fiber das Opium" in the Zeitschrift der Deutschen Morgenliindischen Gesellschaft (1869), 280-281. The latter article, though very brief, cites several earlier sources in German and French. Unfortunately, neither Blau nor many of his references are readily available in this country.]

Opium was planted in late October and November and began to grow during the winter. Although the cold weather kept the plants small, the root-system developed considerably. Thus with the coming of spring, the plants would grow rapidly, each sending up from one to four stalks three or four feet high. At the end of April the poppies bloomed, and about two weeks after the petals fell, the poppy-head was fully developed and ready for harvesting....

Map of Ottoman Empire, circa 1792

The crop began arriving in Smyrna toward the end of July or the first of August and continued until the following spring. [See a letter from Thomas H. Perkins to John P. Cushing, January 15, 1825, Samuel Cabot Collection, Massachusetts Historical Society, Boston.]  Merchants resident at Smyrna purchased the raw opium for shipment overseas, most importantly to the Orient, though one-quarter to one-half seems generally to have gone to Europe and elsewhere.

In the early days of this commerce most Americans employed the good offices of the British Levant Company, since it was customary to use "the flag and the protection" of a nation which had a trade agreement with the Sublime Porte. [fn. - The United States had no formal agreement with the Porte until the Rhind Treaty of 1830. For further information, see Samuel Eliot Morison, "Forcing the Dardanelles in 1810," New England Quarterly, I (April, 1928), 208-225.] For this service, they paid "a light consulage and dragomange duty, roughly about one per cent on the value of goods imported and exported." Although the British Consul-General in Constantinople reported as late as 1809 that Americans still preferred to consign their goods to the Levant Company, the trading pattern soon began to change.

As early as the late 1790's, American vessels were calling at Smyrna but it was not until 1804 that Philadelphia and Baltimore ships began the trade in earnest. [See Charles C. Stelle, "American Opium Trade to China prior to 1820," Pacific Historical Review, IX (Dec., 1940), 430-431. See also letter from R. Wilkinson to James Madison, January 15, 1806, U.S. Department of State, Despatches from Consuls in Smyrna, I, National Archives, Washington, D.C.] Probably the first figures of any consequence in the American drug trade from Smyrna to China were James and Benjamin C. Wilcocks. The former arrived in Smyrna in 1804 as supercargo of the brig Pennsylvania. They cleared for Batavia, but both were in China by the following October. Benjamin remained, but James appears to have gone home with the ship, to return via Smyrna on the Sylph the following year with more opium. [Note:  The Wilcockses sailed for their kinsmen, William Waln and R. H. Wilcocks of Philadelphia, who continued to send ships to Canton consigned to the brothers. See letter from Wilkinson to Madison, January 15, 1806; Despatches from Consuls in Smyrna. Benjamin Wilcocks remained in Canton until 1807 or 1808. He then returned home and established a business in Philadelphia but "was obliged to return . . . in 1811." See letter from John R. Latimer to Mary R. Latimer, March 30, 1830, John R. Latimer Papers, Library of Congress, Washington, D.C.]

Apparently the commerce paid, for several other American China merchants immediately showed an interest. Willings & Francis sent opium aboard the Bingham in the spring of 1805, [See letters from the supercargo, William Read, in the Willings & Francis Collection, Historical Society of Pennsylvania, Philadelphia.

The brig Eutaw, Captain Christopher Gantt, of Baltimore was in Smyrna from July to November, 1805, and then sailed for Canton with 26 chests and 53 boxes of opium aboard, and in January of the following year, Stephen Girard seems to have become excited by the possibilities of the trade. He wrote two of his supercargoes in the Mediterranean:

"I am very much in favor of investing heavily in opium. While the war lasts, opium will support a good price in China .... " [See letter from Girard to Mahlon Hutchinson, Jr., & Myles McLeveen, January 2, 1805, Stephen Girard Papers, Girard College Library, Philadelphia, Pa. on microfilm at the American Philosophical Society Library, Philadelphia.]

James & Thomas H. Perkins of Boston, who had relatives in Smyrna, had inquired of their nephew at Canton as to the market for Turkish opium in China. [Note: Extracts from two letters from J. & T. H. Perkins to John P. Cushing June 19, September 23, 1805, quoted in J[ames] E[lliott] C[abot], "Extracts from the Letterbooks of J. & T. H. Perkins..." (See typewritten Manuscript, Massachusetts Historical Society, n.d.] John Cushing [See Biographical Dictionary of American Business Leaders by John N. Ingham] had gone to Canton as clerk to Ephraim Bumstead, a former apprentice in the Perkins house. Bumstead fell ill and died, and Cushing, age 16, took over. When he came of age, he was made a partner in the firm, Perkins & Company, which he had organized and run since his arrival. He proved to be a merchant of rare ability and amassed a fortune of nearly one million dollars before he finally sailed for home in 1831. Others soon joined them, and the first of a series of "opium rushes" was reported at Smyrna by Girard's disappointed agents. [See letter from Mahlon Hutchinson, Jr., & Myles McLeveen to Girard, March 30, 1806, Girard Papers.] In 1807, another Philadelphian, George Blight, reported from China that while opium "at times paid very well," it had "disappointed many the past season" because the trade had been far overdone. [See letter from Blight to Girard, March 4, November 21, 1807, Girard Papers.]
 

Opium As a Specie Substitute

Here was a pattern which was typical in the American China trade. Precisely the same configuration had appeared in the commerce in ginseng, sealskins, sandalwood, and just about every other specie-substitute American merchants discovered. The first ships would make a killing, the scent of which would draw others into the trade until the market was saturated, and the trade ceased to pay. Thereafter, periodic gluts would occur until the supply became exhausted (as with sandalwood and fur) or until a few of the stronger firms established some sort of loose organization of the market. In the Turkish opium trade, the organizers were Perkins & Company and its allied concerns in Boston.

America's War on Drugs

What we had begun to see by 1968 was a phony war against drugs. We were being told that marijuana was a gateway drug, not only highly addictive, but which would lead to even worse opiate addictions--primarily heroin. A war was necessary. Not only should all these narcotics be "controlled," but anyone who used or possessed them should be prosecuted as criminals. I was rebellious only in mind and spirit but quite conservative where behavior was concerned. I avoided all drugs, including tobacco, and had never even tasted beer or wine until after graduating college in 1970.

I lived and operated within a strange world of half-life, where I did what a good girl would do, while at the same time held those who would try to control my beliefs or actions in total and utter contempt. I knew in my gut that Lee Harvey Oswald, for example, had not killed President Kennedy, that Sirhan Sirhan was also a mind-controlled patsy, and that there was something much bigger and uglier than James Earl Ray who was responsible for killing Martin Luther King. I could not explain how I knew, but I did.

I had completed law school by 1975, while maintaining a deprecatory  opinion of lawyers and a fear of being co-opted if hired by a firm of them. I shunned the adversary system which I saw as a sham that required sophistry of the highest register. I refused to argue on behalf of or support people or principles with which I disagreed. Thus I eventually found a niche within the land title and abstract industry, which seemed so close to my love of history. In time, I prospered, grew ever confident within myself, and began to meet others who shared my point of view--thanks, of course, to the internet.

It was only after meeting such folks as Kris Millegan and Catherine Austin Fitts, hearing their stories, reading and researching with them in the mid-1990's, that I was able to free the restraints that kept me from changing my position in the cave. Only with their helpful insight did I begin to look at reality head on. I can never thank them enough for allowing me to step into the world of truth where we now reside together.

We had started to realize by that time that the drug war was being fought to benefit a secret intelligence group who wanted to eliminate their competition and thus effectively create a price support floor under the commodity which paid for America's "national security" infrastructure.

So many of our research community referred to this phenomenon as "CIA Drugs," but I knew it began much earlier than the year 1947, when the CIA was born. Little did I know that Professor Downs had already discovered in 1968 that elements within our government had conceived of this use of opium as a substitute specie as being in the "national interest," or national security interest as it became to be called, and that conception would have ever more disastrous  implications for us and our world.