What Caused the Collapse of Bird, Savage & Bird?

💡 The Answer

• They were London merchants turned U.S. banking agents in Britain.
• In 1802, U.S. ambassador Rufus King asked them to make a routine payment.
• They reluctantly hesitated to comply, causing King to suspect financial trouble.
• In early 1803, the firm failed, leaving the U.S. as major creditor.
• The U.S. then appointed Francis Baring & Co. as replacement bankers.