Alexander Allan Shand (11 February 1844 - 12 April 1930) was a British banker most known for his work in the development of accountacy and early proposal of a central bank in the Japanese banking system during the meiji period.[1]
Alexander Allan Shand | |
|---|---|
 | |
| Born | 11 February 1844 |
| Died | 12 April 1930 (aged 86) |
| Occupation | Banker |
| Known for | Oyatoi Gaikokujin Banker in Japan in the 1870s |
| Notable work | 銀行簿記精法 (Detailed Accounts of Bank Book-Keeping) (1873) |
| Spouse | Emmeline Christmas |
| Children | 8 |
Early life
editShand was born in the Scottish town of Turriff to James Shand the surgeon, and Margaret Allan. Shand began work first in a Scottish bank in 1859, moving onto London to the Chartered Mercantile Bank of India, London and China, which obliged him to move to Hong Kong in 1863.
Career
editJapanese ministry of finance
editIn 1864 he was promoted to a managerial position and moved again to Yokohama where he also hired Takahashi Korekiyo as an assistant. In August 1872 he was given a position as an Oyatoi in the Japanese Ministry of Finance as a financial advisor, which aspects such as Double-entry bookkeeping were incorporated into the 1872 National Bank Act, which became important later on for Japanese commercial and industrial operations.[2] Here his work Ginkobokiseiho or Detailed Accounts of Bank Book-Keeping was translated in Japanese and published in 1873, which was an important early work in introducing Western Accounting techniques. These techniques were employed early on by the Dai-Ichi Bank and were taught to Eiichi Shibusawa.
Introducing British accounting to Japan
editBy 1874, Shand created a public financial course under the Finance Ministry which educated 341 students between 1874 and 1879, with one third of these going on to work in the Ministry, local government or in Japanese banks, heavily influencing how Japanese accountancy; based on the British model; was taught during Japan's period becoming an industrialized nation, being translated by Joseph Heco who also acted as Shand's interpreter.
In late 1874, Shand also conducted the first western style accounting audit inspection at the failed banking business of the Ono house, a wealthy Omi merchant entrepreneur (近江商人) who went bankrupt, in which he advised the creation of a Japanese central bank, which was formed a decade later. Shand would go on to teach clerks at the newly formed Central Bank.[3] Shand later published Ginkotaii,[4] a manual on national banks; which circulated from 1877 to 1878 in the magazine Ginkozasshi.[5] In 1877 Shand would return to London to work with Alliance Bank which merged to form Parr's Bank in 1892 as manager of its London Lombard and Bartholomew Lane branches, due to the death of his Japanese sponsor Kido Takayoshi.[6]
Financing the Russo-Japanese war
editPrincipally he assisted Takahashi Korekiya, who was looking to acquire loans for the Russo-Japanese war, in his bid to acquire loans by underwriting them himself through the London market in 1898, and later in finding contacts in Hong Kong for the Yokohama Specie Bank.[7] Indeed, he underwrote a large amount along with Jacob Schiff which funded the 1904-1905 war. During the Edwardian years he also played a central role in assisting a smooth 'succession of loans' on the London market between British and Japanese banks and governments, due to his knowledge of both countries expectations and practices.[8]
Personal life
editIn about 1870 Alexander Shand married Emmeline Christmas (d.1913), who gave birth to twins in 1871, totalling 8 children (Margaret, Helen, Ida, Winifred, Norman, Evan, and Hubert). Unfortunately his first born son Montague died at Lake Hakone in 1873 of dysentery.
Recognition
editFor his services to Japan, the emperor awarded Shand the Order of the Sacred Treasure, second class in 1908. Shand then was promoted to director between 1909 and 1918 at Parrs.[9] He left a small figure (around £500,000 in 2020) to his children upon his death as a result of losses sustained in Yokohama and Tokyo in due to the September 1923 Great Kantō earthquake in Japan.
Further reading
edit- Nihon bokishidan, Studies on the history of accountancy in Japan, K. Nishikawa, 1971 (in Japanese)
- The role of foreign employees in the Meiji era in Japan, N. Umetani, 1971
- The diary of Kido Takayoshi, S. D. Brown and A. Hirota, 1983
- Britain's encounter with Meiji Japan, 1868–1912.Olive Checkland, 1989
- Japanese banking,N. Tamaki, 1995
References
edit- ^ Britain and Japan Vol II: Biographical Portraits, Japan Library, Ian Nish, Olive Checkland, Norio Tamaki, 1997, pp65-78, Routledge
- ^ Dutch accounting in Japan 1609–1850: isolation or observation? in Accounting, Business & Financial History, Kees Camfferman, Terry E. Cooke, November 2001, p.370, Taylor and Francis
- ^ Accounting and Business Economics : Insights from National Traditions, Yuri Biondi , Stefano Zambon, 2013, p105, Taylor & Francis Group
- ^ Banking in English.
- ^ Bank Magazine in English.
- ^ Britain and Japan Vol II: Biographical Portraits, Japan Library, Ian Nish, Olive Checkland, N Tamaki, 1997, pp65-78, Routledge
- ^ Banks As Multinationals (RLE Banking and Finance), Geoffrey Jones, 2013, pp.200-201, Taylor & Francis Group
- ^ Science and technology in 19th century Japan: The Scottish connection in Fluid Dynamics Research #39, Alex D Craik, 2007, pp28, The Japan Society of Fluid Dynamics
- ^ https://www.natwestgroup.com/heritage/people/alexander-shand.html (Accessed 22 December 2020)
External links
edit
Media related to Alexander Allan Shand at Wikimedia Commons