Ayr Bank

The nominal capital of the company was £150,000 or £160,000, of which £96,000 was immediately subscribed. However, no more than 80% of the capital was ever subscribed. There were 131 original partners, including Patrick Heron of Kirroughtree, the Earl of Dumfries, the Earl of March, and Sir Adam Fergusson of Kilkerran. Many of the partners were substantial landowners, such as the Duke of Buccleuch, the Duke of Queensberry, and Archibald Douglas, 1st Baron Douglas. The bank was established under a contract of co-partnery, so the partners were not protected by limited liability. This made the bank seem very secure, because its deposits were backed by the partners' land as collateral.

The bank granted many loans to favoured customers and soon had to issue bank notes to cover its position. By June 1772 the bank had issued £1.2 million through advances and bills of exchange, around two thirds of the currency of Scotland.

Douglas, Heron & Company relied for credit on the London bank Neal, James, Fordyce and Down, which collapsed in the crisis of 1772. Heavily in debt and unable to meet demands for cash on its banknotes, the bank was forced to close on 25 June 1772. The Dukes of Queensberry and Buccleuch, along with the Earl of Douglas and the Earl of Heron approached the Bank of England to try to secure loans on the security of their lands. The Bank of England offered £300,000, but the terms were considered extortionate. Subsequent approaches to the Bank of Scotland and the Royal Bank of Scotland, which had recently lent £22,000 and £10,000, respectively, were rejected. The bank managed to reopen for a brief period between September 1772 and August 1773, but a general meeting of the partners held on 12 August decided to dissolve the Company permanently.