The Leith Banking Company (also referred to as the Leith Bank) was a

bank A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets. Because ...

based in the town of

Leith Leith (; gd, Lìte) is a port area in the north of the city of Edinburgh, Scotland, founded at the mouth of the Water of Leith. In 2021, it was ranked by '' Time Out'' as one of the top five neighbourhoods to live in the world. The earliest ...

(now part of

Edinburgh Edinburgh ( ; gd, Dùn Èideann ) is the capital city of Scotland and one of its 32 Council areas of Scotland, council areas. Historically part of the county of Midlothian (interchangeably Edinburghshire before 1921), it is located in Lothian ...

Scotland Scotland (, ) is a country that is part of the United Kingdom. Covering the northern third of the island of Great Britain, mainland Scotland has a border with England to the southeast and is otherwise surrounded by the Atlantic Ocean to the ...

, which opened in 1793 and was forced to merge due to debt in 1842. The bank was established by 18 partners, mainly merchants, on 1 January 1793. Partners James Ker and Henry Johnston were joint managers.

Sir Walter Scott Sir Walter Scott, 1st Baronet (15 August 1771 – 21 September 1832), was a Scottish novelist, poet, playwright and historian. Many of his works remain classics of European and Scottish literature, notably the novels '' Ivanhoe'', '' Rob Roy' ...

is believed to have been an account holder. The

headquarters Headquarters (commonly referred to as HQ) denotes the location where most, if not all, of the important functions of an organization are coordinated. In the United States, the corporate headquarters represents the entity at the center or the to ...

of Leith Bank for the larger part of its existence was a two-storey building on Bernard Street, Leith, built in 1805-06. The bank grew during a time of prosperity for Leith during the early 19th century, following the development of the town's pier, harbour, docks and warehousing facilities. By 1827, it was one of five banking businesses operating in the town, the others being the

Commercial Bank A commercial bank is a financial institution which accepts deposits from the public and gives loans for the purposes of consumption and investment to make profit. It can also refer to a bank, or a division of a large bank, which deals with cor ...

, the National Bank, the British Linen Bank and the Bank of Scotland. Beyond Leith, the bank also had branches in

Callander Callander (; gd, Calasraid) is a small town in the council area of Stirling, Scotland, situated on the River Teith. The town is located in the historic county of Perthshire and is a popular tourist stop to and from the Highlands. The town ser ...

Dalkeith Dalkeith ( ; gd, Dail Cheith, IPA: �t̪alˈçe is a town in Midlothian, Scotland, on the River Esk. It was granted a burgh of barony in 1401 and a burgh of regality in 1540. The settlement of Dalkeith grew southwestwards from its 12th-cent ...

, Galashiels,

Langholm Langholm , also known colloquially as the "Muckle Toon", is a burgh in Dumfries and Galloway, southern Scotland. Langholm lies between four hills in the valley of the River Esk in the Southern Uplands. Location and geography Langholm sits nort ...

and

Carlisle Carlisle ( , ; from xcb, Caer Luel) is a city that lies within the Northern England, Northern English county of Cumbria, south of the Anglo-Scottish border, Scottish border at the confluence of the rivers River Eden, Cumbria, Eden, River C ...

, did business in

Glasgow Glasgow ( ; sco, Glesca or ; gd, Glaschu ) is the most populous city in Scotland and the fourth-most populous city in the United Kingdom, as well as being the 27th largest city by population in Europe. In 2020, it had an estimated popul ...

via an agent and operated from tents at sundry agricultural markets and fairs. Its agents in

London London is the capital and largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary down to the North Sea, and has been a majo ...

were Barnett & Co. The office in Carlisle was, in fact, registered as an English bank and was therefore illegal, since English law forbade banks to have more than 6 partners. No attempts were made to prosecute the point though, until the branch closed of its own accord in 1837. Apart from a period in 1797 when it had to suspend cash payments, the bank initially prospered. However, with the economic crisis of 1837, the bank began to struggle. The following year, the Glasgow Union Bank offered them 5% on every £100,000 of deposits transferred, terms which they declined. In 1842, with debts totalling £123,582, including £10,000 of notes in circulation, the Leith Banking Company failed. It was merged with another bank to become the Edinburgh and Leith Banking Company. This in turn was merged into the Clydesdale Bank. The bank's headquarters were taken over by the National Bank.

References

Bibliography

* * Douglas, James, ''Leith Banking Company Notes'', St Albans n/d 18pp privately published bound typescript * *{{cite book , last=Russell , first=John , title=The Story of Leith , url=http://www.electricscotland.com/History/leith/index.htm , access-date=28 November 2013 , year=1922 , publisher=Thomas Nelson & Sons Ltd.

External links

Leith Banking Company, £1 note, 1822

Glasgow Museums Glasgow Museums is the group of museums and galleries owned by the City of Glasgow, Scotland. They hold about 1.6 million objects including over 60,000 art works, over 200,000 items in the human history collections, over 21,000 items relating to ...

Defunct banks of Scotland History of Leith