The early history of Barings reflects the early history of merchant banking in general, and the foundations the banker must lay if he is to garner trust and a good reputation among traders, manufacturers, correspondents and, on occasion, governments. Before the turbulence of the 1830s, Barings had been in business for nearly seventy years. These years involved finance in war and peace, European reconstruction loans in 1815, and a widespread financial panic in the middle of the 1820s. The Barings, particularly Sir Francis and his second son, Alexander, were also among the first British merchant bankers to realize that westward across the Atlantic, in America, lay a land of very large possibilities. Barings forged its American connection almost before the United States was a nation.

This chapter will show, in outline, the characteristics of Barings’ early experience and operations, which provided continuity with later years, and likely benefited the firm. In sequence, the narrative includes the establishment of the firm, the anchoring of the firm's reputation in Great Britain and Europe, contact with America, the 1825 downturn, and formation of the third Baring partnership that navigated the events leading to the troubles of 1836–7. From the start, the firm was not local or regional in orientation, but international. It made influential financial and political contacts, including those by marriage. It exhibited caution, made mistakes, and incited fear and envy among peers and those outside the banking community.