London is a city brimming with history, and if you take a stroll around the heart of the City of London, you'll come across a remarkable building that has played a central role in the city’s financial, social, and even cultural life for centuries: the Royal Exchange.
What was medieval Threadneedle Street like?
The Royal Exchange has a prime location, situated in Threadneedle Street, the spot has been a thriving commercial hub for millennia, as the centre of Roman Londonium. In the Viking and Medieval periods, the area around the Royal Exchange was home to multiple meat markets, including Leadenhall Market. Forget stocks and shares, if you wanted a string of sausages this was the place for you. The idea of commerce has always been tied to this location, even if the market back then smelled less of luxury perfumes and more of a butcher's shop!
Who created the Royal Exchange?
Enter Thomas Gresham, the father of the Royal Exchange. Born in London, the son of Lord Mayor Richard Gresham, Thomas made a name for himself as a trader in the Low Countries and Spain, soon working as a financial agent for Queen Elizabeth I. In 1565, Thomas approached the Aldermen of the City with a proposal. He would build a commercial exchange, for trading commodities, at his own expense, if the Corporation of the City could find a site for the new building. The building, modelled closely on the Antwerp Bourge, where Gresham had spent a great deal of time, was opened by Queen Elizabeth I in 1571, and granted Royal approval. For the first time, London had a purpose built building where merchants from around the world could come together and trade. In recognition of Gresham’s achievement, nearby Gresham Street was named in his honour, and the Exchange today has a Grasshopper weathervane, which was his family crest. Sadly the first Royal Exchange was destroyed in the Great Fire of London in 1666, but was quickly rebuilt. This fell into disrepair by the early 19th century and yet another fire in 1821 left it in ruins, with the flames visible from Windsor, more than 20 miles away.
Who built the current Royal Exchange?
The Royal Exchange we see today was designed by Sir William Tithe, largely following the previous incarnations, and was unveiled by Queen Victoria in 1844. Built in the Neo-Classical style, the western end features eight Corinthian columns, topped with a relief sculpture of a central figure representing Commerce, surrounded by traders selling wares from around the world.
What was the South Sea Bubble?
In the 18th century, the Royal Exchange became a key player in one of the most infamous financial scandals in history, the South Sea Bubble of 1720. The South Sea Company had been established in 1711, and granted a monopoly over trade with the Spanish colonies in South America. The company offered stock to the public promising huge profits, but they never materialised, as they had little actual trade with the colonies. As more people invested, stock prices skyrocketed, with politicians and members of the Royal Family promoting the company. The stock price continued to rise until summer 1720, when the bubble burst. When rumours spread that the company’s valuation was purely speculative, and that investors would be unlikely to see their promised profits, the stock price tanked, leading to an eventual market crash that wiped out fortunes and ruined many. It was inside the Royal Exchange’s walls that the drama of the South Sea Bubble unfolded. It was here that they rushed to invest, and here that they found out that they had lost everything. It took years and huge amounts of Government regulation for the economy, and the public’s faith in the financial industry to recover.
Was the Royal Exchange bombed during the Second World War?
Trading was suspended at the Royal Exchanging in reaction to the Blitz in 1941. Although it was hit several times during bombing raids, the Royal Exchange survived, but the traders didn’t return. Instead, it spent the next several decades in the wilderness, briefly home to the Mermaid theatre, temporarily welcoming in traders in the 1980s, but always finding itself empty again.
What is the Royal Exchange today?
In 2001, the building was remodelled and transformed into a luxury shopping centre, complete with big name brands like Louis Vuitton, Ladurée and even a Fortnum & Mason champagne bar. The traders may have gone, but in the spirit of Gresham’s vision, you can still see wares from around the world on sale.
Should I visit the Royal Exchange?
As you stroll past the Royal Exchange, it's hard not to be awestruck by the sheer grandiosity of the building, particularly contrasted with the glass skyscrapers that now tower above it. It’s more than just a shopping center, it’s a living piece of history, with deals, secrets, and dramas having unfolded within these walls over the centuries. The Royal Exchange has witnessed the rise and fall of fortunes, the dramas of kings and merchants, and has stood through war and peace. It’s a symbol of London’s past, present, and future.
If you would like to see the Royal Exchange on one of our free walking tours in London, check out our Free Historic City of London, or you can find our full tour schedule here.
