Paisley Banking Company (1783-1837)
Early history
The town of Paisley in the 1780s was expanding rapidly, rivalling Glasgow in terms of trading and banking significance. The population had risen from 4,000 in 1738 to 25,000 by 1786. The main manufacture was textiles, including silk, gauze and muslin.
The Paisley Banking Company was formed in 1783 as a private partnership. There were originally nine partners in the bank, including two local landed lairds, four Paisley merchants and two from Glasgow. One of the founding partners, Andrew Thomson of Faskin, coal merchant, had also been a partner in the Ship Bank from 1776. He and his two sons went on to found a private banking firm (A. G. and A. Thomson) in Glasgow in 1785, which failed in 1793 as a result of the economic crisis of that year.
Paisley in the 1820s by John Clark
Expansion and rivalry
By 1787, the Paisley Banking Company had at least one branch at 13 Trongate, Glasgow, under the agency of Archibald Hamilton. Further branches were established at Dundee, Stranraer, Irvine and Alloa. Indeed, the early success of business of the branch in Dundee was one impetus for the setting up of such banks as the Dundee Commercial Bank (1792) in that town.
The Paisley Bank also operated through 'correspondent' banks in Edinburgh and London. Their correspondent in Edinburgh was initially the Royal Bank of Scotland, while their London correspondent was Smith, Payne and Smith.
In September 1788 another bank was founded in the town - the Paisley Union Banking Company. Initially there was intense rivally between them which resulted in a banknote war.
Paisley Banking Company one guinea note, 1826
Developments in the 19th century
During the first half of the 19th century a number of large-scale joint stock banks began to emerge in Scotland and by the 1830s the Paisley Banking Company could no longer compete. Its business was acquired by the British Linen Company in 1837.
Further information
• Some archival material relating to the Paisley Banking Company is held by HBOS Group Archives.
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