HISTORY OF BANK

The East Lothian Banking Company was established on 1st June 1810 on which date it commenced business in Dunbar.  The main mover in establishing this bank is thought to have been Christopher Middlemass who was not only a well respected local dignitary but was also an experienced banker, having been employed in the town as agent of the British Linen Company in 1808, when he was dismissed for negligence following a robbery of the British Linen Company office.

The initial contract of copartnery for the East Lothian Banking Company was for 21 years; the capital £80,000, in 400 shares of £200 each.  There were 27 Partners, chiefly small landed proprietors or tenant farmers; 9 ordinary Directors and 3 extra ordinary Directors.

The Cashier was William Borthwick who was recruited from the Falkirk Union Banking Company.  On 10th April 1822 Borthwick absconded with a large sum of the Bank's cash and bills with this resulting in the closure of the Bank.

The then Edinburgh agents - Sir William Forbes, James Hunter & Co. - assisted the directors in their difficulty and provided credit of £100,000, on ample security over the Partners' estates, until the Bank's assets could be realised.  Mr William Paul, Accountant, Edinburgh was appointed to assist a committee of Partners in the winding up of the Bank.  This took many years (actions still seen in the 1840s) although all Creditors were paid in full.

DIRECTORS

Chrstopher Middlemass, Merchant, Dunbar.

John Gray, tenant at Skaterow.

Andrew Taylor, Distiller, Westbarns.

William  Turnbull, tenant in Belton.

John Gray, tenant in Peatcocks.

William Hume, tenant at Eastbarns.

James Waterson, tenant at Eweford.

William Lee, tenant in Crawhill.

John Brodie, tenant in Scougal.

EXTRA ORDINARY DIRECTORS

 John Hume of Westbarns.

Thomas Mitchell of Rosebank.

John Dudgeon, tenant in Broomhouse.

OFFICIALS

John Aitken

John Aitken, for some time editor of Constable’s Miscellany, was born on 25th March 1793, in the village of Camelon, Stirlingshire.  His first situation was in the East Lothian Bank, and soon after he was sent to the banking office of Mr. Park, Selkirk, brother of Mungo Park the traveller, where he remained for several years.  He was afterwards appointed teller in the East Lothian Bank, where he had formerly been.  He subsequently removed to Edinburgh, and became a bookseller.  Having early displayed a predilection for literature, he now resolved to follow the bent of his mind, and commenced editing ‘The Cabinet,’ an elegant selection of pieces in prose and verse, three volumes of which were published.  The taste and judgment evinced in this publication recommended him to Mr. Archibald Constable, as the fittest person to undertake the editorship of his Miscellany; and though for a time the failure of Messrs. Constable and Company postponed the publication, when the work at last appeared, it was under Mr. Aitken’s management.  On the death of Mr. Constable, he, in conjunction with Mr. Henry Constable and Messrs. Hurst, Chance, and Company, London, purchased the work, and continued editor till 1831, when some new arrangements rendered his retirement necessary.  He afterwards became a printer on his own account, with some prospect of success; but having caught cold, which produced erysipelas in the head, he died on the 15th of February 1833, in the 39th year of his age, leaving a widow and four children. Mr. Aitken wrote a few pieces of poetry of uncommon beauty and sensibility ; of these, perhaps the most touching is the address to his children, prefixed to the third series of the Cabinet.—Obituary at the time.

He is also credited with being the author of the following poem which appeared soon after the failure of the Bank.

Touch of the Times.

A sad confusion has happened here, 

By William Borthwick our cashier,

He's run away with a' our gear -

A roguish turn.

Which many ane, I am apt to fear,

Have cause to mourn.

First, Mr Goudie he maun thole,

To site awhile in yon dark hole, 

With no window, but a bole 

With Iron gate; 

Nae doubt he'll think it e,en right droll

In sic a state.

Next, monie a farmer, far and near 

Who had lodged in her their pennie dear,

Which they had gathered thro the year,

With the intent,

When terms came their lands to clear,

And pay the rent.

There's monie ane will suffer loss, 

But what it may be in the gross, 

To state it fair, I am at a loss. 

Till the conclusion,

I fear they may draw a black cross, 

 Through eighty thousand.

But yet, I think some are to blame

To let Will Borthwick play such game; 

Sure they some better care should ta-en 

To search things out,

Which would have saved them meikle pain 

You need not doubt. 

But now he's fled and left them a' 

It's said he's off to America, 

If he got there the feint a flaw 

He'll care for ane. 

He'll be fu' safe, by Yankee law, 

In his new hame.

William Borthwick.

William Borthwick was recruited by the Directors of the East Lothian Bank at the outset of the business and moved from his employment with the Falkirk Union Banking Company to take up the position of Cashier.  There is some doubt as to his age at the time of the appointment although it is thought he was in the region of 20 - 22 years of age.  His youth for such a position is thought to be reflective of the general lack of experienced Scottish bankers as a consequence many having been recruited by other Scottish, UK and International banks.

Borthwick's responsibilities were considerable with the Directors (mostly lacking any banking experience) leaning heavily on him.  It is thought that his role was sound in the early years.

Much can be found on his stated intention to kidnap the Directors of the Bank; to imprison them in air holed vessels and to then set them off on a trade ship to Danzig although whether these comments were a true intention or not is difficult to say.  It is certain that he (either alone or with an accomplice named Goudie) removed cash and bills from the Bank and departed in 1822.  It is very likely that the economic climate of the time was causing other businesses in which he had an interest (with his Brother, Bruce Borthwick) financial difficulty and that William Borthwick was propping up these businesses using the Bank's funds.  When he could support this no longer he fled.

There is some debate as to whether he ever stood trial for the offence although it is known that he was arrested in South America.

William Cowborough. 

William Cowborough was the son of John Cowborough of Ellrig - a wealthy landowner in the Falkirk / Stirling area.  We was born in 1793 he was employed by the Falkirk Union Banking Company in which has father was a shareholder.  In my collection there are 2 letters in late 1811 from John Cowborough to William Borthwick seeking a position in the East Lothian Banking Company for William and advising that arrangements could be made for his release from his current employment.  The letters also suggest that William was looking for a salary of no less than £70 per annum.  William was successful in this application and worked at Dunbar with Borthwick.  In 1812 he replaced Robert Howden as Accountant at the increased annual salary of £100.

In 1814 the Bank's Agent in Selkirk (Alexander Park) died leaving the post vacant.  A letter from Selkirk dated 24th June 1814, signed by William Cowborough, suggest the he went to Selkirk on a temporary basis.  A further letter, dated 2nd July 1814, from Peter Muirhead to William Borthwick suggests that William Cowborough was interested in becoming the Agent at Selkirk although had concerns that his youth would stand against him.  Perhaps partly as a consequence of the significant shortage of experienced bankers of the time, William was appointed Agent.

It is not known what happened to William Cowborough after the collapse of the Bank although it is suggested that he left Scotland to seek employment abroad.

Robert Howden.

In 1812, Robert Howden, son of one of the shareholders, and at one time, accountant in the Dunbar branch of the British Linen Bank was appointed to the post of Accountant with an annual salary of £100.  It is likely that the relationship between his father and of Christopher Middlemass secured the appointment for him.  Howden thought that his experience and the volume of work which he carried out justified him in asking for an increment in his salary.  This was refused and in December of that year he was dismissed following an illness.  He was replaced by William Cowborough.

Christopher Midllemass.

Christopher Middlemass of Underedge was a well known Dunbar resident and began life as an employee of Fall, Melville & Company (traders in the export of cured herring) before going in to be a successful merchant in his own right.  In 1790 he joined with Charles Hay (the then Bank Agent of the British Linen Company) to form Hay Middlemass & Company and become the ongoing Agent.  He was dismissed from this position in 1808 as a consequence of accusations of negligence following a robbery of the British Linen Company branch.

He was appointed as Major in the local militia and served as Deputy Lieutenant of Haddingtonshire.  Known as the Major he lived in Cromwell House at the Old Harbour, Dunbar until his death in 1850.  His civic career includes periods as Borough Treasurer (1789), Baillie (1789) and Provost for several periods (26 years in all) between 1794 and 1847.  A number of references can be found to Middlemass in Dunbar history although perhaps the most telling is that provided in 1790 when he sought appointment as Agent for the British Linen Company.  The reference commented that Middlemass was "“inattentive to business, though fond of following the ladies and the sound of the drum” 

 Alexander Park.

Alexander Park was born in 1773 and was the brother of the famous explorer Mungo Park.  Alexander Park was a Writer (lawyer) by profession and was appointed as Agent for Selkirk in 1810 following a recommendation by Thomas Kyle, a shareholder.  Park had no previous experience in banking and whilst this was not recognised as a shortcoming at the time of his appointment it must have become an issue for the Bank as the Selkirk office was plagued with poor lending decisions where monies were advanced to contacts of Park (and no doubt Kyle) who were either poor credit risks or were of stronger character than Park.

Like any employee / Agent of the Bank, Alexander Park would have been required to put up a Bond of Caution to cover the Bank for any losses made as a consequence of mismanagement by the Agent.  It may well be that this Bond was called by the East Lothian Banking Company as my collection includes a letter from David Spence of Melrose, dated 7th May 1817, written on behalf of Mrs. Park of Woodhead and making reference to the settlement of the cash account with the Bank's late branch at Selkirk.  The letter advises that there is to be a meeting of Mrs. Parks' family, who are also cautioners to the Bond and requests that Borthwick delay any proceedings until after this meeting.

George Banks.

George Banks, a Clover Seed and Iron Merchant, and also the Treasurer of the Burgh of Haddington, was appointed Agent for Haddington.  It appears that the idea for establishing an Agency at Haddington was that of George Bank’s alone and with him being a shareholder from the outset he appears to have won his case.  It is highly likely that Banks was also known to Christopher Middlemass as a consequence of them both holding Public Office positions in the County.

SHAREHOLDERS (FREQUENTLY REFERRED TO AS PARTNERS) - This is a list to which I hope to add as the site develops.

James Aitcheson, Cockburnspath.
John Baird, Grange.
George Banks - Clover Seed and Iron Merchant and also Treasurer of the Burgh of Haddington.
William Borthwick, Dunbar - The Cashier referred to above.
John Brodie, Scoughall.
Patrick Brodie, Garvald.
Alexander Brown, Linton.
Alexander Bruce, Dunbar.
Adam Calder, Belhaven.
John Coubrough of Ellrig - Owner of 3 shares as mentioned in letter of 10th December 1811 to William Borthwick.
Charles Crawford, North Berwick.
Walter Cunninghame, Catslacknow.
Adam Dalgleish, Fastheugh.
John Dudgeon, Broomhouse.
George Ferme, Braidwoode.
Alexander Fraser, Aberdeen.
David Gilrye, Dunbar.
John Gray, Peat Cox.
John Gray, Dunbar.
Robert Gordon, Bankfoot.
John Grant, Kirkcaldy - Known to have been employed by Customs & Exicse in Fife.
David Heatherley, Redheugh.
George Hood, Bowshiel.
George Hood, Dunbar.
James Hood, Pathhead.
John Hood, Dunbar.
Robert Howden, Garleton - Father of Robert Howden, Accountant referred to above.
John Hume, Westbarns.
William Hume, Eastbarns.
Alexander Johnston, Gilmerton.
John Kirving, Down
Ebenezer Knox, Crosslee.
John Knox, Faldenside.
Thomas Knox, Firth.
James Kyle, Firth.
Thomas Kyle, Selkirk.
George Johnston, Belhaven.
Henry Mason Lee, Pinkerton.
Jessie Lee, Peat Cox.
William Lee, Meikle Pinkerton.
Christopher Middlemass, Dunbar - A well known local Merchant referred to above.
James Miller, Dunbar.
Thomas Mitchell, Dunbar.
Peter Muirhead, Falkirk - Referred to below as an Agent.
Andrew Neilson, Newton.
Archibald Park, Levingshope.
Alexander Park, Selkirk - The Selkirk Agent referred to above.
Thomas Park, Woodhead.
James Purves, Dunbar.
William Sang, Haddington.
James Simpson, Newton.
David Sommerville, North Berwick.
Reverend John Steele, Moreham.
Andrew Taylor, Westbarns.
Andrew Turnbull, Newbigging.
William Turnbull, South Belton.
George Waddel, Falkirk.
James Watson, Dunbar.
James Watterston, Eweford.

 AGENTS & CONTACTS

Thomas Andrews & Co., Belfast.

In 1812 the Banks Directors agreed to make a trial of circulating the notes in Ireland.  The firm chosen to perform this task was Thomas Andrews and Co., of Belfast.  The Partners in this firm are reputed to have included the brothers-in-law of William Borthwick although, given that much of the Bank’s business was done through close / family contacts, there may be nothing particularly sinister in this appointment.  That said, in June, 1812 when the Directors reconciled the Bank’s cash before the annual meeting it was found that £10,650 had been sent to Messrs. Thomas Andrews and Co. without the permission of the Directors.  Later that year the agency was terminated and it may be that the Directors were nervous of the fact that the only remaining Partners in Thomas Andrews and Co. were the relatives of Borthwick.  Later Irish links may have been established as my collection includes a letter of 1814 in which John Davidson & Co. of Glasgow advise of 2 parcels having been sent to Belfast, and of more to follow.  This may, however, have related to Army business.

Elliot & Foster, Carlisle.  To follow

Sir William Forbes, James Hunter & Co., Edinburgh.  To follow

Robert Garnock, Leith.

Robert Garnock of the Excise Office in Edinburgh was one of the early contacts established by the Bank with the main aim being to circulate the Banknotes of the Bank.  In common with many of the Bank's contacts he was an acquaintance of Christopher Middlemass and it was through Middlemass that Garnock's potential was brought to the notice of the Board.  Garnock could circulate about £1,000 per week but before his salary was agreed a trial period - using secret marks on the Banknotes - was undertaken.  This must have been a success as it was later decided to pay him on a commission basis of 3% on all the notes circulated by him.  This decision must have been regretted in 1814 as in my collection there exists a small number of letters from John Grant (of the Excise Office in Kirkcaldy) in which he refers to the debts of Garnock whom he describes as a "vagabond".  It appears that Grant was a Guarantor either with or on behalf of Garnock.

Peter Muirhead, Stirling.

I have very little information on this individual although there exist frequent references to him having both received and remitted cash and bills to the Bank's Edinburgh and London Agents.  He was also known to John Cowborough and recommended a couple of potential employees to William Borthwick in 1814.

Sykes, Snaith & Co., London.  To follow

Thomson & Co., Edinburgh.  To follow

Tod & Co., London.  To follow

Messrs. J & R Watson, Glasgow.  

This firm was founded in the late 18th Century with the partners initially the Brothers James and Robert Watson.  Messrs Watson were a Private bank and in addition to acting as Glasgow Agents for a number of Scottish banks they also carried out business in their own name by the taking of deposits and the discounting of bills.  They were not a note issuing bank and used the notes of mainly the Thistle Bank and latterly the Bank of Scotland. 

During the course of business the Senior Brother (James) died and was replaced by a further Brother (Gilbert) who was a Writer to the Signet.  The bank operated from a number of business premises over the years including Leitch's Court, Trongate, Post Office Court and Virginia Street.

In June 1832 Messrs. Watson became "unfortunate".  The administration was attended to by Alexander Gray, Accountant in Glasgow and the Virginia Street tenement was sold to the Glasgow Union Bank (subsequently the Union Bank of Scotland).