Sir Thomas Gresham

Sir Thomas Gresham (1519?-79), English financier, born in London, and educated at the University of Cambridge. After attending the university, he was apprenticed to his uncle, a merchant, in whose service he displayed unusual business ability. In later years he became one of the wealthiest men in England. In 1551 he was appointed a factor, or royal agent, by King Edward VI. Charged with the management of the royal debt abroad, he virtually liquidated it by adroit financial manipulations on the bourse, or stock exchange, of Antwerp.

He was knighted by Queen Elizabeth I in 1559. While serving as her financial agent abroad, Gresham found that his tasks were difficult to execute because of the lower value of English currency in relation to the currencies of other countries; he attributed this situation to the earlier debasement of English currency. In attempting to persuade Elizabeth to restore the currency of England, Gresham observed that “bad money drives out good.” Although that principle of economics had been known long before Gresham's observation, it later became known as Gresham's law. He financed the construction of the Royal Exchange, which was opened in 1571. His will made provision for the establishment of an institution of higher learning in London, which became known as Gresham College.