Zurich State Bank Leu in the Old Town Hall

The Old Town Hall in Zurich is the birthplace and first place of business of Bank Leu, one of the most important lenders in Europe in the 18th century.

On 11 February 1754, the Grand Council of the City of Zurich decided to set up a commission to find profitable investments for the citizens of Zurich. Treasurer Johann Jakob Leu (1689-1768) was elected permanent chairman of the Interest Commission. Although the commission acted as an independent and private company, Zurich undertook to guarantee Leu & Companie. This was also reflected in the choice of its official seat, the Town Hall. This remained Leu’s premises until 1833.

The Zurich treasury provided capital of 50,000 guldens. Private investment was also made. In the early days, Zurich citizens could only deposit money twice a year. As early as 1771, however, the Interest Commission and Leu were able to repay the city’s initial capital from the profits they had made.

Leu invested the money on the international capital market, including the state treasury of around three million guldens. By the end of the 18th century, about a quarter of Zurich’s government revenue came from capital gains.

Kings and queens were among the debtors of the citizens of Zurich. In 1758, for example, Leu lent Maria Theresa 30,000 guldens. The French kings were particularly frequent borrowers, and as a result of the French Revolution, Leu lost a third of their income.

The Zurich Interest Commission became the root of the famous Bank Leu, whose numismatic department under Leo Mildenberg dominated the international coin market in the 1970s.