'Because He Gave': The 150th Anniversary of George Peabody's Donation to the Poor of London

George Peabody was born on Washington Street in this city, but his influence is worldwide. Our city is named in his honor. The city's library and that of the neighboring town of Danvers are also named in his honor. There's the Peabody Institute in Baltimore, Peabody College in Nashville, the Peabody Essex Museum, Peabody Bay in Greenland and in London, the Peabody Trust Homes.

This year marks the 150th anniversary of George Peabody's donation to the city of London to create housing for the poor. Though others had attempted to address London's horrific poverty (25% of the city lived in poverty), it was this American banker who gave the greatest donation until that year. Peabody knew poverty. Though he didn't experience the dire effects so many did in London, it was because of his family's financial problems that he was forced to leave school at the age of 11. For the next 4 years, George Peabody was the apprentice of Captain Sylvester Proctor. From there he worked with his brother for a short time in Newburyport and eventually entered into a partnership with Elisha Riggs. They settled in Baltimore, importing goods from Europe for their American clients.

When Peabody eventually settled in London in 1837 to expand the business, he went at a time when London's population was exploding. In 1800, London was home to 1 million people. By 1900, that number was nearly 7 million. Such growth added to the struggle of the poor. Those who didn't have steady work often shared rooming houses with others. Some of these rooms housed dozens of people in one room.

And so, when George Peabody made his donation of 150,000 British pounds, equal to $750,000 American dollars, England was amazed. The Civil War had caused the tensions between our two nations to increase. With this one act, Peabody changed many English minds about America.

Today, 150 years later, the Peabody London Trust provides housing for over 55,000 people.