Aberdeen Banking Company
- Reference:GB 1830 ABC
- Dates of Creation:1685-1899
- Name of Creator:
- Language of Material:English
- Physical Description:6.5 linear metres
Scope and Content
Collection includes:
Founding Documents, 1766-1848: contracts of co-partnery and associated documents.
Minutes, 1766-1849: minutes of general meetings, directors, and committee of directors. Also abstracts of minutes and minutes relating to building of Bank House, Castle Street, Aberdeen.
Financial Records, 1767-1899: balances, share transfer and dividend records, general ledgers, cash books, bills of exchange ledgers, current, credit and cash account records, deposit account records, miscellaneous financial records.
Correspondence, 1767-1848: outgoing letter books and bundles of correspondence.
Branch Records, 1787-1853: branch ledgers, cash books and various financial records.
Miscellaneous Records, 1685-1864
Banknotes, 1773-1855
Administrative / Biographical History
The Aberdeen Banking Company, also known as the Banking Company in Aberdeen, was established in 1767. It was a co-partnery, with a starting capital of £72,000. The bulk of its shareholders were landowners, while a substantial proportion were merchants.
From 1747 onwards, a number of provincial partnership banks were formed in Scotland. The Aberdeen Banking Company was the tenth such bank, and the second in Aberdeen.
It was established, in part, to deal with the proliferation in Scotland of small denomination banknotes, which were of doubtful value. The original contract of co-partnery made specific reference to this. It warned of the imminent danger that all ranks of people are exposed to from the extensive and industrious circulation of a variety of Bank Notes from distant and remote parts of this Kingdom, issued and signed by people for the most part totally unknown in this Part of the Country.
By issuing its own notes, the Aberdeen Banking Company sought to give local people a paper currency in which they could have confidence.
The bank struggled to survive during its first 18 months, due to the banknote war waged on it by the Thistle Bank and the British Linen Company. Its difficulties were exacerbated by the country's chronic shortage of coin at this time.
But these initial problems were overcome, and by 1770, the Company had established seven agencies (branches). These were located in Inverness, Huntly, Forres, Peterhead, Banff, Montrose and Fraserburgh. Nevertheless, it was not until 1771 that a substantial profit was made, and the first dividend was not paid until March 1772.
The Company appeared to operate very successfully between 1778 and 1806, but there were underlying problems. Large advances were made to firms in which the directors of the bank also had an interest. It was only in 1839, on the appointment of a new cashier, that these potential bad debts came to light. However, no action was taken for another three years, by which time it was too late.
By 1849, the Aberdeen Banking Company was in serious trouble. Local businesses, to whom large advances had been made, had failed as a result of the economic downturn of 1847. The loans could not be repaid, and the Company saw its capital of £300,000 reduced to just over £7,000. In consequence, its business was acquired by the Union Bank of Scotland. The Union Bank merged with Bank of Scotland in 1955.
Aberdeen Banking Company branches and agents
The following branches were opened (earliest known date and name of agents in brackets):
- Banchory (1838; John Malcolm)
- Banff (1769; William Robeson & Co., James Imlach)
- Cullen and Portknockie (1837; W. L. Taylor)
- Elgin (1787; Thomas Stephen)
- Ellon (1839; John Robb)
- Fochabers (1839; Arthur Reid)
- Forres (1768; John Gordon by 1787)
- Fraserburgh (1769; Thomas Kilgour)
- Glasgow (1787; Gilbert Hamilton and Son)
- Huntly (1787; William & A. Forsyth)
- Inverness (1769; Hugh Fraser, Alexander Shaw & Son)
- Inverurie (1834; Robert Innes)
- Keith (1787; George Taylor)
- Kincraigie (1847; W. MacKay)
- Macduff (1848; Alex. A. Leask)
- Montrose (1791; David Gardner)
- Peterhead (1769; William Forbes)
- Portsoy (1769; Alexander Robertson)
- Portknockie - see Cullen
- Stirling (1769; Nicoll Bryce)
- Tarland (1837; Andrew Ross)
- Thurso (1768)
- Turriff (1843; W. Pirie)
Arrangement
The collection is arranged into the following sections:
- ABC/1: Founding Documents
- ABC/2: Minutes
- ABC/3: Financial Records
- ABC/4: Correspondence
- ABC/5: Branch Records
- ABC/6: Miscellaneous Records
- ABC/7: Banknotes
Access Information
Access is by appointment only, and at the discretion of the Archivist. Closure periods apply to some records less than 100 years old. Please e-mail archives@lloydsbanking.com for further information.
Other Finding Aids
An item level catalogue is available - please e-mail archives@lloydsbanking.com for further details.
Conditions Governing Use
Copying of material is permitted at the discretion of Lloyds Banking Group Archives.
Related Material
Records relating to the post-1849 period can be found in the Union Bank of Scotland collection (GB1830 UBS).
Bibliography
- S. G. Checkland, Scottish Banking, A History 1695-1973 (Glasgow, 1975)
- Charles W. Munn, The Scottish Provincial Banking Companies 1747-1864 (Edinburgh, 1981)
- Robert S. Rait, The History of the Union Bank of Scotland (Glasgow, 1930)
Subjects
Corporate Names