penologist who modified the progressive Borstal system of English reformatories for juvenile offenders to emphasize its rehabilitative aspects.

Before serving as a prison commissioner (1922–47), Paterson had worked with discharged Borstal (Borstal system) boys. He was therefore well qualified to undertake reform of the system, emphasizing special location and treatment on reformatory lines of prisoners from age 16 to 21 selected from the ordinary prisons. (The Borstal system had been implemented in 1902 by Sir Evelyn Ruggles-Brise at Borstal, Kent.) Among Paterson's innovations were the introduction of the Borstal house system, in which groups of delinquents live in individual houses, each with its own trained and dedicated housemaster and house staff who try to influence the boys by good example and a training program that includes hard but interesting work, extended education, and sports. Paterson emphasized that rehabilitation consists of sparking a drive for reform within the delinquent rather than imposing it upon him.

Paterson was knighted in 1947.