THE NOT SO HONOURABLE MEMBER FOR BURNLEY

See Also: FINANCIAL SCANDALS; HOUSING

Jabez Spencer Balfour was born into a Baptist family that was active within the temperance movement. In 1868 he was one of the founders of the Liberator Building Society and soon emerged as the dominant force within it. The enterprise promoted itself through its connections with temperance circles and Nonconformist religious denominations, Balfour himself had a reputation for being an effective lay preacher.

The fellow developed a series of companies that, together with the Liberator, formed an integrated property investment and development business. As a result of this structure, the Society was able to undergo explosive expansion. By 1879 it had become the largest building society in Britain. It developed large portions of suburbia, as well as a number of landmark buildings in central London. The latter included: Carlyle Mansions, The Cecil Hotel, The Hotel Victoria, The Hyde Park Hotel, the National Liberal Club, and Whitehall Court.

In 1880 Balfour was elected to the House of Commons as a Liberal M.P. for Tamworth. Three years later he became the inaugural mayor of the Borough of Croydon. While, he lost his Parliamentary seat in 1885, he was returned unopposed to the Lower House as one of Burnley's representatives four years later. His companies covered one another's debts and his banking interests were allowed to audit his investment businesses. From all of the activity there were no actual profits, however, Balfour and his associates were paid enormous dividends. This enabled him to maintain an outward show of opulence that had the effect of encouraging ordinary people to invest in the ventures that he was involved in.

During the 1880s the property market stalled and prices fell. Balfour chose to maintain the Liberator s apparent success by using questionable financial techniques. In September 1892 the London & General Bank, the Liberator's group bank, suspended payments. In quick succession the sib companies collapsed in upon themselves. In December, a week after two of his business associates had been arrested and charged in relation to the matter, Balfour left the country. He fled to The Argentine. In 1895 he was placed in British custody. He was convicted and given sentences that totalled fourteen years. He proved to be a model prisoner and was released in 1906. He then worked as a consulting engineer.

Location: Carlyle Mansions, Chelsea Embankment, SW3 5LS (purple, pink)

The Cecil Hotel, 80 Strand, WC2R 0RL (blue, orange)

Hotel Victoria, 8 Northumberland Avenue, WC2N 5BY. Subsequently The Northumberland. (grey, red)

The Hyde Park Hotel, 66 Knightsbridge, SW1X 7LA. Subsequently The Mandarin Oriental. (red, purple)

The National Liberal Club, 1 Whitehall Place, SW1A 2HE (red, grey)

Whitehall Court, SW1A 2EJ (red, blue)

David Backhouse 2024