Central Bank of Scotland
The Central Bank of Scotland was formed in Perth, in 1834, as a joint-stock company. It was the sixth of this type in Scotland since 1810, and the first of its kind in Perth. Never a very large bank, it initially operated with a working capital of just £79,125.
But the Central Bank was not a success. By 1864, it was financially crippled. The Bank of Scotland, which had been helping the ailing company for some years, assumed control of seven of its nine Perthshire branches.
By 1868, the Central Bank's debts amounted to £51,525. It cut its losses, selling both its liabilities and assets to Bank of Scotland. However, a minority of Central Bank shareholders were unwilling to sell their shares. They formed a committee which continued to meet for 12 years. During this period they reduced the Central Bank's debts to £25,591. In 1880, the committee members held a meeting with Bank of Scotland. The latter generously awarded them the sum of £5,375 - £2 : 3s per share.
The Central Bank turned out to be a good purchase. As a result, Bank of Scotland gained a secure footing among the Perthshire farmers and landowners.
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- Archives relating to the Central Bank of Scotland are maintained by Lloyds Banking Group Archives in Edinburgh - for further information see our archive collections.