Yes, not unusual to re-use the name if the first born name-holder died.
Couldn't see Daniel Wright, b. 1861, on 1871 census 
I've found a Daniel Wright died 1869 aged 8 at Paisley High Church, Renfrew.
Paisley would be a bit of a departure from the norm but, given that Daniel had lost his second parent the year before, it's possible he could have been taken in by a relative I'm not aware of.
I can't access the certificate at the moment as SP has turned into a money pit and I think I'm going to have to desist for a while or face divorce!!