Ship Bank (1749-1836)
- Early History
- Bank 'wars'
- A new partnership
- Robin Carrick's era
- The formation of the Glasgow and Ship Bank
- Further information
Early History
Detail of ship in full sail from Ship Bank £1 note (below)
The Ship Bank, established in 1749, was the first of the Scottish provincial banking companies to be formed in Glasgow. Prior to its establishment, banking facilities had been provided by Bank of Scotland, the Royal Bank of Scotland (both Edinburgh-based chartered banks) and a number of small, mostly Edinburgh-based, private bankers. The Ship Bank was formally known as Dunlop, Houston & Company, after the principal partners, but derived its more commonly-used name from the motif on its notes of a ship in full sail.
The original partners were William Macdowall of Castle Semple, Andrew Buchanan of Drumpellier, Allan Dreghorn of Ruchill (a former Bailie of Glasgow), Colin Dunlop (son of James Dunlop of Garnkirk, a former Bailie and future Lord Provost of Glasgow), Robert Dunlop (brother of Colin) and Alexander Houston. All were members of wealthy Glasgow merchant families who had made fortunes from the tobacco and West Indian trades.
Bank 'wars'
The Ship Bank (Carrick, Brown & Company) twenty shillings or £1 note, 2 Jan 1834.
The Ship Bank was initially supported by Bank of Scotland through a £10,000 cash account credit, and no doubt the directors of the latter hoped for an increased circulation in Glasgow through this means. The Royal Bank of Scotland, in response, supported the establishment of the Arms Bank in the following year, but when it became clear that the two Glasgow banks intended to issue notes of their own and open agencies in Edinburgh, the tables were turned: the Edinburgh chartered banks agreed to combine to drive out their smaller competitors, by attempting to gather their notes in large quantities to exchange for specie.
Inevitably, the Glasgow banks responded in similar vein, and a bank war ensued. Despite these troubles, the Ship Bank somehow managed to establish itself: by 1752, a net profit of £2,163 3s 5d had been made. By 1761, this had risen to £12,900.
A new partnership
The original partnership contract came to an end in 1775, by which time Andrew Buchanan, Robert Dunlop and Allan Dreghorn were dead and two new partners had entered into the contract, James Dennistoun of Colgrain and George Oswald of Scotstoun (later of Auchincruive). There seems to have been a lapse in the partnership for a time, perhaps as a result of the devastating impact of the American Wars of Independence on Glasgow's tobacco trade.
There was a reorganisation the following year, however, and the Ship Bank was revived under the new firm of Moores, Carrick & Company (changed in 1789 to Carrick, Brown & Company), with a capital of £12,000. The partners in 1776 were Robert (or Robin) Carrick, John Brown of Lanfine, George Moore, James Moore, merchant in Glasgow, Thomas Brown, formerly surgeon in London, Andrew Thomson of Faskin, Thomas Buchanan of Ardoch, and William Craig, merchant in Glasgow.
Robin Carrick's era
Portrait of Robin Carrick, Manager, 1775-1821
The history of the Ship Bank was dominated from 1775 to 1821 by the personality of the managing partner Robin Carrick. His eccentric methods of running the business (including secret signals to his cashier to indicate whether bills should be accepted for discount or not) have been described in various publications.
The impact of the American War on Glasgow's tobacco trade was lessened by the development of trade in the alternative commodities of sugar and rum, and this recovery is reflected in the figures in the Ship Bank's balance sheets. In 1777, the balance sheet total was £120,352. By 1792 this had risen to £346,638 and by the time of Carrick's death in 1821, had reached £1,028,456 10s.
The formation of the Glasgow and Ship Bank
The partnership went through various changes in personnel, but by the time of the decision to merge in 1836, there were four partners, including Michael Rowand and John Buchanan. In 1836, in response to the challenge from the new large-scale joint-stock banks, the Ship Bank merged with the Glasgow Banking Company, to form the Glasgow and Ship Bank.
The Glasgow and Ship Bank was eventually acquired by the Union Bank of Scotland in 1843.
Further information
• 'The history of the Union Bank of Scotland' by Robert Rait (John Smith & Son, 1930), chapter 2.
• Some archival records of the Ship Bank are held by HBOS Group Archives.
• Records and artefacts relating to the Ship Bank are also on display in the Museum on the Mound in our corporate headquarters.
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