James Stevens, wool stapler and hop-grower, sold hops at an annual fair at Weyhill, near Andover. After a narrow escape from highwaymen he decided, in future, to have an armed servant accompany him when attending. His friends subsequently entrusted their money to him as well. Feeling that if anyone was going to be held up by highwaymen it would now be him, Stevens decided to start a bank with the purpose of engaging in paper transactions rather than the carriage of cash.

In 1806 Stevens, in partnership with Mr Daniel Bristow, a draper, started Farnham Bank, located in Castle Street. At this time, they were drawing on Forster, Lubbocks, Forster & Clarke of 11, Mansionhouse Street, as their London agent.

In the bank panic of 1825, a story runs that James Stevens learned that a run on his bank would take place on the following Monday. Whilst the bank was sound, it could not pay out an unlimited amount of cash. Confiding in a friend the two of them came up with a scheme. They placed several sacks of corn with layers of gold sovereigns sprinkled on the top so as to be visible to customers behind the counter. On the Monday, as they expected, considerable withdrawals were made; Stevens readily paid out the cash, and as he did so his friend came in and, drawing attention to the sacks, said: “Oh, this bank’s all right, I shall leave my money with it.” Other customers followed his example and, as word spread, the crisis was averted. James Stevens however thought that banking was too hazardous a business and, in 1828, sold the business to the partnership of Knight, Jenner & Co. The “Knight” of the partnership was George Coldham Knight. The bank is known to have issued notes in £5 and £10 denominations, from this time.

Following the 1844 Act, Farnham Bank’s permitted note issue was £14,202. Issue continued up until the bank was taken over in 1886.