David Parish, Alexander Baring and the US Loan of 1813: The Role of Nationality and Patriotism in the Transatlantic Mercantile Community in Times of War

Abstract

The War of 1812 was a very expensive conflict for the United States. In 1813, three foreign-born investors, among them David Parish from Hamburg, Germany, saved the US government from bankruptcy by providing a sixteen-million dollar loan. This article focuses on the reasons why Parish – who strongly opposed the war – agreed to take a major share in the loan. At the same time, it examines the ways in which the Hamburg merchant tried to sell a large share of his US government bonds in Great Britain – America’s wartime enemy. Parish’s actions make it obvious that he promoted the idea of a supranational mercantile community that was not bound by patriotic considerations even during war times. Consequently, it was the British merchant banker Alexander Baring who stood at the core of Parish’s plans to sell US bonds in London. By contrasting Baring’s room for manoeuvre during these financial transactions with that of Parish this article shows that in the British context public expectations of loyalty and patriotism could indeed limit the abilities of local merchants in financing the opponent of war. Thus, the comparison of Parish’s and Baring’s experiences highlights the importance of local factors such as a consolidated public opinion and a strong nation state in setting the limits of the sphere of activity for internationally operating merchants in times of war.