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John and Henry
Drummond
Overview
Title:
Records of John and Henry Drummond, as Contractors to the Treasury
as Paymaster to His Majesty’s Forces in North America,
1767-83.
Reference code: GB 1502 DR/464/
Dates of
creation: 1763-93
Extent: 3,421 articles
Background
Name of
creator: John and Henry Drummond, contractors to the Treasury as
Paymaster to His Majesty’s Forces in North America,
1767-83
Administrative history: After the fall of Quebec
in 1759 and with increasing unrest amongst American colonists, the
British maintained a considerable force in North America amounting
to about 10,000 men. The supply and payment of men was at first
effected by the commander-in-chief drawing bills of exchange
directly upon the paymaster general in England. This proved both
cumbersome and unviable as it resulted in the depression of the
exchange rate. To obviate such losses a contract was entered into in
1767 by the commissioners of the Treasury with John Drummond
(1723-74), banker, and Sir Samuel Fludyer (1705-68), deputy governor
of the Bank of England, acting jointly as Messrs Fludyer &
Drummond.
Under the contract the partners
would deliver all monies issued from the Treasury for remittance to
America. These monies were converted into Spanish and Portuguese
coin and paid over, as called for, to the deputy paymasters in the
colonies. The Crown received all interest and profits and it paid
all charges. Messrs Fludyer & Drummond received a commission of
one per cent of all monies delivered to them. It was hoped by this
arrangement that the exchange would be stabilised and the necessity
for remittance of specie avoided by the contractors’ agents raising
funds from the sale of bills of exchange drawn on the contractors.
In 1768 when Samuel Fludyer died his share of the contract was taken
by Thomas Harley (1730-1804), merchant, banker and Lord Mayor of
London, and in 1772 Henry Drummond (c.1730-95), banker, became
involved to assist his cousin, John Drummond, due to the latter’s
poor health.
The contractors posted agents in
the key base commands in North America: Quebec, Halifax, Boston, New
York and the West Indies. An agent also had to follow the army on
major expeditions and during short-term occupations such as of
Charlestown and Philadelphia. It was the agents’ duty to maintain
constant communications with the contractors, to whom they were
entirely accountable, and to keep account books and letterbooks. The
contractors themselves held their joint account with Messrs Drummond
(est. c.1712), bankers, London, from 1767 to 1783.
Related
publications: Letters from America. Three Banks Review,
March 1976, vol.109, p.47-56, and June, 1976, vol.110 p.40-46; John
Cochrane’s troubles. Three Banks Review, September 1976,
vol.111, p.56-60; Bills of credit scandal, Quebec. Three Banks
Review, December 1976, vol.112, p.50-65.
Summary of
holdings
Scope and content: Copies of Treasury minutes
re contract 1765-87; contractors’ letterbooks 1767-90;
correspondence to contractors from agents in North America 1767-93;
lists of bills sent to contractors from agents in North America
1767-83; contractors’ account books 1767-93; accounts current:
agents 1767-83, Treasury 1782-83; accounts re specie transportation
1763-84; audit statements c.1784; bill books 1767-85; bills of
exchange 1768-69; drafts 1771-84; receipts: 1771-83, deputy
paymasters 1767-84; bills of lading 1779-83; postage book 1769-80;
contractors’ bank passbooks 1770- 91; list of warrants paid by
Treasury 1771-84; commander in chiefs’ requisitions 1773-82; copies
of Treasury correspondence 1775-83; papers re court proceedings,
General Hallimand v. Harley & Drummond and John Cochrane, Quebec
agent 1776-91; copies of Parliamentary orders 1778-81; list of
contractor’s effects 1776; papers re contractors’ involvement in
cloth, wool and fur trades 1767-72; notebook re British army food
allowance tables c.1765.
Allied holdings
Associated
material: Public Record Office, Ruskin Avenue, Kew, Richmond TW9
4DU [GB 66]: Treasury Solicitor’s papers re case of Henry Smith and
Thomas Cockan v. Thomas Harley and Henry Drummond, King’s Bench,
1784-86 [Ref: TS11/660/2092]; letters to Thomas Harley 1780-1797
[Ref: PRO30/20].
Publication note: Letters from America.
Three Banks Review, March 1976, vol.109, p.47-56, and June,
1976, vol.110 p.40-46; John Cochrane’s troubles. Three Banks
Review, September 1976, vol.111, p.56-60; Bills of credit
scandal, Quebec. Three Banks Review, December 1976, vol.112,
p.50-65. |
