Paisley Union Bank (1788-1838)

The Paisley Union Bank was established in 1788. There were ten partners initially: two lairds (George Houston of Johnstone and John Semple of Earnock); four Paisley merchants (John Cochran, Robert Hunter, Robert Orr and John Christie); two Glasgow merchants (James Elliot Henderson of Enoch Bank and John Duguid of Old King Street Sugar-House), Charles Addison of Woodhead (a member of the firm of Charles Addison and Son, from Bo'ness) and the cashier, David Robertson. The Edinburgh agents of the bank were Sir William Forbes, James Hunter and Company, who provided a credit of £5,000.

The town's existing bank - the Paisley Banking Company (founded in 1783) - was not informed about the impending competition until six days prior to the opening of the Paisley Union Bank and there was some tension between the two banks regarding accusations of ‘note-picking’. However, the Paisley Union Bank began vigorously, opening branches in towns as far apart as Brechin, Oban, Newton Stewart, Kirkcudbright and Berwick. The new bank even opened branches in England at Carlisle, Penrith and Wigton (Cumberland), though these had been closed by 1810.

Agents were given special instructions to try to push notes in the Highlands, at the Falkirk Cattle Trysts and in paying the Greenland Whalers. After ten months trading the bank had some £60,000 of notes in circulation, having advanced £30,000 on bill discounts and £8,600 on cash accounts.

The branch network continued to expand until 1796, when there was a sudden change of policy, and most branches were rapidly closed thereafter. This coincided with a change in the partners.

The bank was hit by disaster in 1811, when the Glasgow branch at Ingram Street was robbed of over £19,000. The bank eventually recovered almost £14,000, but the expenses of prosecuting the case (not brought until May 1820) were £2,035.

The bank seems to have gone into gradual decline after 1820, but economic difficulties in the west of Scotland in 1836-37 proved the final blow. The partners decided to withdraw from business and in 1838 sold to the Glasgow Union Banking Company (later the Union Bank of Scotland ).

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 Bank in 1837.