Andrew McFadyean
Encyclopedia
Sir Andrew McFadyean was a British diplomat, economist, Treasury official, businessman and Liberal politician, publicist and philosopher. He was born at Leith
in Scotland on 23 April 1887 and died at St Mary’s Hospital, Paddington, London on October 2, 1974.
, London, and University College, Oxford
, where he graduated with a second class in classical honour moderations (1907) and a first in literae humaniores (1909).
and between 1913 and 1917 he acted as private secretary to six financial secretaries. The latter included Charles Masterman, Edwin Montagu, and Stanley Baldwin
; he also doubled as private secretary to Sir John Bradbury, the joint permanent secretary. He accompanied Sir Samuel Hardman Lever
on an important financial mission to the USA in 1917; from 1917 to 1919, he served in the Treasury division, where his responsibilities included external finance. During the final four months of the peace conference in Paris after World War 1, he acted as representative for the Treasury, becoming its leading expert on World War I reparations
and war debts, and establishing a reputation in the European capitals. From 1920 to 1922, he was the secretary of the British delegation to the Reparations Commission; from 1922 to 1924, he was general secretary to the Commission itself. Later he became secretary to the Dawes Committee (which produced the Dawes plan
) and subsequently Chief Commissioner of Revenue in Berlin until his departure from this sphere in 1930.
In 1924, he worked for a reduction in German reparations; in this he agreed with John Maynard Keynes
, whose book, The Economic Consequences of the Peace
, had been published in 1919. German finances had been devastated by hyper-inflation. The Dawes Committee, for which McFadyean was secretary, instituted the Dawes Plan
, which proposed that reparations should be paid, but without distorting rates of exchange. The payment of reparations was rescheduled, and they were met by raising taxes in Germany as its economy recovered. The German currency, the Reichsmark, would be stabilised on gold, thus bringing about a restoration of confidence and enabling an international loan to be raised to cover the instalment for the first year. Reparations were to be held in a fund. Conversion of this fund into other currencies would not be permitted if this brought about a depreciation of the Reichsmark. He became one of four allied controllers supervising payments under the Dawes Plan, and he was based in Berlin as commissioner for controlled revenues. McFadyean was knighted in 1925. In 1929 the Dawes Plan was replaced by the Young Plan
, with which he had no direct part, and this aimed at a final settlement of reparations.
Upon his return from Berlin, he did not rejoin the Treasury, but instead started a career in the City of London
. He became a director of various companies, particularly of refugee firms from Germany. He was chairman of S. G. Warburg & Co. Ltd, from its inception in 1934 (as the New Trading Company Ltd) until 1952, and a director until 1967, by which time it had become a major merchant bank
.
, a post which he held until 1948. He served as President of the Party from 1949 to 1950 and Vice-President from 1950 to 1960. His attempts to be elected to Parliament in 1945 as the Liberal and Free Trade candidate for the City of London
, and 1950 for Finchley
were unsuccessful. He advocated proportional representation
, and was a supporter of the Scottish Covenant
, which worked towards a devolved Scottish parliament
. He opposed the abolition of nuclear weapons, arguing that it was an impossibility.
), becoming its president in 1970. In 1944 he became chairman of the Pacific Relations committee. He advocated European unity on liberal principles and translated two books from German into English by Count Richard Coudenhove-Kalergi: The Totalitarian State Against Man (1938), arguing against the Hegelian conception of the state, and Europe must Unite (1940), calling for a European commonwealth based on a European ideal transcending, without weakening, national patriotisms. In 1941, and with the Treaty of Versailles
in mind, McFadyean was already arguing against repressive measures toward a post-war Germany. He was active in the Liberal International
, helping to create this body after the Second World War and serving as its vice-president from 1954 to 1967. He strongly supported the idea of the European Common Market and, believing that tariffs and monopolist and restrictive practices in industry were wrecking the UK's competitiveness, he served as president of the Free Trade Union
from 1948 to 1959. He helped persecuted Jews (also urging the admission of Jewish refugees to Palestine) and enemy aliens who had been unjustly interned by the UK during the war. He worked with John MacCallum after the Second World War to organise the Liberal International
, which succeeded the pre-war 'Entente Internationale des Partis Radicaux et Démocratiques'. The Liberal International
was established at Wadham College, Oxford, in 1947 and McFadyean became its vice-president.
Leith
-South Leith v. North Leith:Up until the late 16th century Leith , comprised two separate towns on either side of the river....
in Scotland on 23 April 1887 and died at St Mary’s Hospital, Paddington, London on October 2, 1974.
Education
He attended University College SchoolUniversity College School
University College School, generally known as UCS, is an Independent school charity situated in Hampstead, north west London, England. The school was founded in 1830 by University College London and inherited many of that institution's progressive and secular views...
, London, and University College, Oxford
University College, Oxford
.University College , is a constituent college of the University of Oxford in England. As of 2009 the college had an estimated financial endowment of £110m...
, where he graduated with a second class in classical honour moderations (1907) and a first in literae humaniores (1909).
Family
His marriage to Dorothea Emily, youngest daughter of Charles Keane Chute, actor, took place on 7 October 1913. There were three children from the marriage: a son, Colin, who was born in 1914, and three daughters, Sybil Barbara (b. 1917), Margaret Ann (b. 1925), and Joan Eleanor (b. 1930).Career in public service
In 1910 McFadyean joined the TreasuryTreasury
A treasury is either*A government department related to finance and taxation.*A place where currency or precious items is/are kept....
and between 1913 and 1917 he acted as private secretary to six financial secretaries. The latter included Charles Masterman, Edwin Montagu, and Stanley Baldwin
Stanley Baldwin
Stanley Baldwin, 1st Earl Baldwin of Bewdley, KG, PC was a British Conservative politician, who dominated the government in his country between the two world wars...
; he also doubled as private secretary to Sir John Bradbury, the joint permanent secretary. He accompanied Sir Samuel Hardman Lever
Hardman Lever
Sir Samuel Hardman Lever, 1st Baronet, KCB , generally known as Sir Hardman Lever, and as "Sammie" to his friends, was an English accountant and civil servant....
on an important financial mission to the USA in 1917; from 1917 to 1919, he served in the Treasury division, where his responsibilities included external finance. During the final four months of the peace conference in Paris after World War 1, he acted as representative for the Treasury, becoming its leading expert on World War I reparations
World War I reparations
World War I reparations refers to the payments and transfers of property and equipment that Germany was forced to make under the Treaty of Versailles following its defeat during World War I...
and war debts, and establishing a reputation in the European capitals. From 1920 to 1922, he was the secretary of the British delegation to the Reparations Commission; from 1922 to 1924, he was general secretary to the Commission itself. Later he became secretary to the Dawes Committee (which produced the Dawes plan
Dawes Plan
The Dawes Plan was an attempt in 1924, following World War I for the Triple Entente to collect war reparations debt from Germany...
) and subsequently Chief Commissioner of Revenue in Berlin until his departure from this sphere in 1930.
In 1924, he worked for a reduction in German reparations; in this he agreed with John Maynard Keynes
John Maynard Keynes
John Maynard Keynes, Baron Keynes of Tilton, CB FBA , was a British economist whose ideas have profoundly affected the theory and practice of modern macroeconomics, as well as the economic policies of governments...
, whose book, The Economic Consequences of the Peace
The Economic Consequences of the Peace
The Economic Consequences of the Peace is a book written and published by John Maynard Keynes. Keynes attended the Versailles Conference as a delegate of the British Treasury and argued for a much more generous peace. It was a bestseller throughout the world and was critical in establishing a...
, had been published in 1919. German finances had been devastated by hyper-inflation. The Dawes Committee, for which McFadyean was secretary, instituted the Dawes Plan
Dawes Plan
The Dawes Plan was an attempt in 1924, following World War I for the Triple Entente to collect war reparations debt from Germany...
, which proposed that reparations should be paid, but without distorting rates of exchange. The payment of reparations was rescheduled, and they were met by raising taxes in Germany as its economy recovered. The German currency, the Reichsmark, would be stabilised on gold, thus bringing about a restoration of confidence and enabling an international loan to be raised to cover the instalment for the first year. Reparations were to be held in a fund. Conversion of this fund into other currencies would not be permitted if this brought about a depreciation of the Reichsmark. He became one of four allied controllers supervising payments under the Dawes Plan, and he was based in Berlin as commissioner for controlled revenues. McFadyean was knighted in 1925. In 1929 the Dawes Plan was replaced by the Young Plan
Young Plan
The Young Plan was a program for settlement of German reparations debts after World War I written in 1929 and formally adopted in 1930. It was presented by the committee headed by American Owen D. Young. After the Dawes Plan was put into operation , it became apparent that Germany could not meet...
, with which he had no direct part, and this aimed at a final settlement of reparations.
Upon his return from Berlin, he did not rejoin the Treasury, but instead started a career in the City of London
City of London
The City of London is a small area within Greater London, England. It is the historic core of London around which the modern conurbation grew and has held city status since time immemorial. The City’s boundaries have remained almost unchanged since the Middle Ages, and it is now only a tiny part of...
. He became a director of various companies, particularly of refugee firms from Germany. He was chairman of S. G. Warburg & Co. Ltd, from its inception in 1934 (as the New Trading Company Ltd) until 1952, and a director until 1967, by which time it had become a major merchant bank
Merchant bank
A merchant bank is a financial institution which provides capital to companies in the form of share ownership instead of loans. A merchant bank also provides advisory on corporate matters to the firms they lend to....
.
Politics
His career in politics started in 1936, when he became the joint treasurer of the Liberal PartyLiberal Party (UK)
The Liberal Party was one of the two major political parties of the United Kingdom during the 19th and early 20th centuries. It was a third party of negligible importance throughout the latter half of the 20th Century, before merging with the Social Democratic Party in 1988 to form the present day...
, a post which he held until 1948. He served as President of the Party from 1949 to 1950 and Vice-President from 1950 to 1960. His attempts to be elected to Parliament in 1945 as the Liberal and Free Trade candidate for the City of London
City of London
The City of London is a small area within Greater London, England. It is the historic core of London around which the modern conurbation grew and has held city status since time immemorial. The City’s boundaries have remained almost unchanged since the Middle Ages, and it is now only a tiny part of...
, and 1950 for Finchley
Finchley
Finchley is a district in Barnet in north London, England. Finchley is on high ground, about north of Charing Cross. It formed an ancient parish in the county of Middlesex, becoming a municipal borough in 1933, and has formed part of Greater London since 1965...
were unsuccessful. He advocated proportional representation
Proportional representation
Proportional representation is a concept in voting systems used to elect an assembly or council. PR means that the number of seats won by a party or group of candidates is proportionate to the number of votes received. For example, under a PR voting system if 30% of voters support a particular...
, and was a supporter of the Scottish Covenant
Scottish Covenant
The Scottish Covenant was a petition to the United Kingdom government to create a home rule Scottish parliament. First proposed in 1930, and promoted by the Scots Independent in 1939, the National Covenant movement reached its peak during the late 1940s and early 1950s...
, which worked towards a devolved Scottish parliament
Scottish Parliament
The Scottish Parliament is the devolved national, unicameral legislature of Scotland, located in the Holyrood area of the capital, Edinburgh. The Parliament, informally referred to as "Holyrood", is a democratically elected body comprising 129 members known as Members of the Scottish Parliament...
. He opposed the abolition of nuclear weapons, arguing that it was an impossibility.
Furtherance of international co-operation
From 1933 to 1967 he was a member of the council of the Royal Institute of International Affairs (Chatham HouseChatham House
Chatham House, formally known as The Royal Institute of International Affairs, is a non-profit, non-governmental organization based in London whose mission is to analyse and promote the understanding of major international issues and current affairs. It is regarded as one of the world's leading...
), becoming its president in 1970. In 1944 he became chairman of the Pacific Relations committee. He advocated European unity on liberal principles and translated two books from German into English by Count Richard Coudenhove-Kalergi: The Totalitarian State Against Man (1938), arguing against the Hegelian conception of the state, and Europe must Unite (1940), calling for a European commonwealth based on a European ideal transcending, without weakening, national patriotisms. In 1941, and with the Treaty of Versailles
Treaty of Versailles
The Treaty of Versailles was one of the peace treaties at the end of World War I. It ended the state of war between Germany and the Allied Powers. It was signed on 28 June 1919, exactly five years after the assassination of Archduke Franz Ferdinand. The other Central Powers on the German side of...
in mind, McFadyean was already arguing against repressive measures toward a post-war Germany. He was active in the Liberal International
Liberal International
Liberal International is a political international federation for liberal parties. Its headquarters is located at 1 Whitehall Place, London, SW1A 2HD within the National Liberal Club. It was founded in Oxford in 1947, and has become the pre-eminent network for liberal parties and for the...
, helping to create this body after the Second World War and serving as its vice-president from 1954 to 1967. He strongly supported the idea of the European Common Market and, believing that tariffs and monopolist and restrictive practices in industry were wrecking the UK's competitiveness, he served as president of the Free Trade Union
Free Trade Union
The Free Trade Union, later known as the Free Trade League, was a British trade organization extant between July 1903 and the 1970s. It was founded in response to the campaign for empire preference which had been launched by Board of Trade chairman Joseph Chamberlain in May 1903...
from 1948 to 1959. He helped persecuted Jews (also urging the admission of Jewish refugees to Palestine) and enemy aliens who had been unjustly interned by the UK during the war. He worked with John MacCallum after the Second World War to organise the Liberal International
Liberal International
Liberal International is a political international federation for liberal parties. Its headquarters is located at 1 Whitehall Place, London, SW1A 2HD within the National Liberal Club. It was founded in Oxford in 1947, and has become the pre-eminent network for liberal parties and for the...
, which succeeded the pre-war 'Entente Internationale des Partis Radicaux et Démocratiques'. The Liberal International
Liberal International
Liberal International is a political international federation for liberal parties. Its headquarters is located at 1 Whitehall Place, London, SW1A 2HD within the National Liberal Club. It was founded in Oxford in 1947, and has become the pre-eminent network for liberal parties and for the...
was established at Wadham College, Oxford, in 1947 and McFadyean became its vice-president.