The County of Fife has a diverse history in respect of commerce with the main commercial interests relating to Coal Mining, Fishing and Agriculture.  Cupar is located in an area of Fife which is predominately one of agriculture and in 1802 a number of farmers encouraged the opening of a bank which would cater for the working capital requirements brought about by the seasonal nature of agriculture.

The Fife Banking Company was established at Cupar 1802 and initially comprised 47 Partners.  It had a capital base of £30,000 which was made up of 60 shares of £500.  Branches were soon established in Kirkcaldy and Kirriemuir and an agency existed in Glasgow in 1807 when the agents were then Messrs. R and G Hill, Manufacturers.

Very few examples of their banknotes remain although £1 notes were designed and engraved by Kirkwood & Son and the central vignette featured a knight on horseback with the inscription "Thane of Fife" - perhaps best known from Shakespeare's Macbeth.

The Bank's Cashier when opening was George Aitken who was then a local Writer and as such would have held a position of esteem in the local community.  No doubt the increasing business of the Bank placed a strain on Aitken and in 1814 Ebeneezer Anderson joined the Bank as clerk with James Craig joining as Accountant and Teller in 1816.  It must have been a fateful day when Anderson joined!

The Bank had neither a long nor illustrious life and on 21st December 1825, the Fife Banking Company closed it doors.  At the close it had £37,000 of notes in issue and the deposits totalled £110,000.  There were 47 partners with unlimited liability for any deficiency.

The failure appears very much a consequence of a combination of poor management and fraud and indeed Ebeneezer Anderson was temporarily imprisoned for embezzlement in 1826, the Partners having checked his house and found £5,000 of overdue or unpaid bills.  The winding up of the Bank was initially undertaken by Messrs. Cheyne and Lindsay Mackersy, Accountants in Edinburgh although after 4 years these gentlemen gave way to William Drummond, Writer, Cupar who was elected Manager on 21st May 1829.

The winding up of the Bank took many years and involved much by the way of litigation.  An element of this involved Ebeneezer Anderson.  The enormous losses eventually fell on the shoulders of 14 Partners, the only solvent members, and these unlucky Partners each had to pay calls of no less than £5,500 for each of the shares held.

The "business" of the Bank was jointly assumed by the British Linen Company and the National Bank of Scotland who jointly supported a rescue package.

Officials.

This is a list of officials of which I am aware.

George Aitken, Writer, Cupar.

Ebeneezer Anderson, Clerk (1814); Partner (1816); Accountant and Teller following the death of James Craig (1817); and Joint Cashier (1823).  From various sources his gentleman is said to have

• joined the Bank in 1814 as a clerk,
• been appointed a Partner in 1816,
• been an associate of George Aitken and employed to check on the operations of Aitken,
• been appointed as Accountant and Teller in 1817,
• submitted false accounts to the Directors and induced them to declare large dividends,
• been appointed as Joint Cashier (with Aitken) in 1823, and
• granted generous accommodation to his friends - perhaps in return for them having secured his Bond to the Bank.

The above has me thinking that Anderson is unlikely to have moved in the same circles as George Aitken if he was young and inexperienced.  It may simply be the interpretation of title of clerk - or the passage of time - although I suspect that Ebeneezer Anderson was employed  by the Bank as and experienced pair of hands to support George Aitken in his banking activities.  This would explain why within a very short space of time he assumes positions of responsibility and is appointed Joint Cashier.

This appointment of Joint Cashier required him to sign the banknotes and the following is an example of his signature (along with that of Aitken) as illustrated by Douglas (Scottish Banknotes).

 In my collection I have several letters from Bank of Scotland offices all addressed to Ebeneezer Anderson in Dundee and it is clear that the Ebeneezer Anderson to whom they are addressed is an Agent for Bank of Scotland.  I also hold only one letter from Ebeneezer Anderson with this sent from Dundee on 6th July 1797.  It is addressed to William Reid in Banff with Reid known to me as a Bank of Scotland Agent.  Ebeneezer Anderson' signature on this letter is as follows.

I am satisfied that this is one in the same person.  The first letter I have addressed to Anderson is dated 1795 with the last dated 3rd June 1803.  I therefore believe Anderson joined the Fife Banking Company with at least 8 years banking experience with Bank of Scotland under his belt.

James Craig, Accountant and Teller.  Died 1817.

William Drummond, Writer, Cupar. Referred to as both Cashier and Manager.  This gentleman appears to have been involved with a number of banks having held posts with the Commercial Bank of Scotland, the Fife Banking Company, the Western Bank of Scotland and the National Bank of Scotland.  See Letter: 18th September 1840 - Wm Drummond to Wm. Sheppard.