The
Glasgow and Ship Bank was formed as a result of a merger in 1836
between the Ship Bank (established 1749) and the
Glasgow Banking
Company (established 1809).
The Glasgow and Ship
Bank was initially set up as a private bank. The four remaining
partners of the Ship Bank and 24 partners of the
Glasgow Banking
Company, became partners in the new firm.
As well as providing
local banking services, the bank was also established in
response to the problem of the proliferation of small banknotes
of doubtful value in Scotland during the 1760s.
Discussions took place
about conversion to joint-stock form following the merger, but
uncertainty about government plans for legislation prevented
decisive action. By the time a firm proposal was issued to the
partners in 1843, unfavourable rumours about the bank's
circumstances were circulating.
Deposits were being lost and one
of the tellers had defrauded the bank. Hence when the
Union Bank
of Scotland offered to acquire the business in 1843, the offer
was accepted.
The
Glasgow and Ship Bank was formed as a result of a merger in 1836
between the Ship Bank (established 1749) and the
Glasgow Banking
Company (established 1809).