Where did it all begin"Part 4
Modern to post-modern times
The Forex Trading Floors team have continued their research on “Where did it all begin”. In this week’s series, part 4, we are covering the period Pre- World War 2.
Pre-World War 2
From 1899 to 1913, the holdings of countries' foreign exchange increased at an annual rate of 10.8%, while holdings of gold increased at an annual rate of 6.3% between 1903 and 1913.
Towards the end of 1913, almost half of the world's foreign exchange was conducted using the Pound sterling. The number of foreign banks operating within the border of London rose from 3 to 71 between the years 1860 to 1913.
In 1902 there were a total of two London foreign exchange brokers. In the earliest years of the twentieth century trade was most active in Paris, New York and Berlin, Britain did not really become involved until in trade until 1914.
Between 1919 and 1922 the employment of foreign exchange brokers within London increased from 2 to 17, and by 1924 there were 40 brokerage firms managing the purposes of exchange. During the 1920s the occurrence of trade in London resembled more the modern manifestation, by 1928 forex trade was necessary to the financial operation of the city. Continental exchange controls, plus other factors, in Europe and Latin America, hindered any attempt at wholesale prosperity from trade for those of 1930's London.
It was during the 1920s that the Kleinwort family were known to be the leaders of the foreign exchange market. Japhets, Montagu & Co. and Seligman’s were also notable contributors and should also warrant recognition.
We hope you are enjoying our series into “Where did it all begin” so far. Next week we are continuing with the Modern to Post Modern era and will be following on with after World War 2.
If you are enjoying our blogs and would like to join our mailing list or if you are a trader or would like to learn to trade and would like to spend a complimentary day with us at Forex Trading Floors in Brentwood please click on the link for contact details.