It appears that James is his brother. 1861 census, RG9 2647-7 Page 8, Bidston Hill, Bidston:
David Taylor, Head, Mar, 64, Retired from Woollen Cloth Trade born Scotland
Ellen Taylor, Wife, Mar, 60 born Lancashire Liverpool
James Taylor, Son, Unm, 46, Cashier born Lancashire Liverpool
Catherine Williams, Serv, Unm, 32, Domestic Servant
Jean