The Falls of Clyde was launched as the first of eight iron-hulled four-masted ships built for Wright and Breakenridge's Falls Line. She was named after the Falls of Clyde, a waterfall up the River Clyde.

Russell & Co. built the Falls of Clyde as part of a series named after Scottish waterfalls for the Falls Line. A four-masted "British medium clipper", solidly built with "iron Z-bar frames and double riveted iron plate", it was highly rated by the insurers, Lloyd's of London. Its maiden voyage was to Karachi, and many more of its early voyages were between different parts of the British Empire. The Falls Line also had Russell & Co. build ships named after the waterfalls at Bruar, Afton, Foyers, Earn, Garry, Halladale and, lastly, the Falls of Ettrick which was launched in 1894.