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IT is a curious fact in
the history of Scotland, that the first considerable effort at
joint-stock enterprise made there was at once the most ambitious and the
most unfortunate, was accompanied by the largest amount of patriotic
enthusiasm, and was the most unsuited to the national circumstances, of
any in which the nation has been engaged. The fortunes of the Company of
Scotland Trading to Africa and the Indies were for long, and to some
extent are yet, a sadly-remembered episode in the annals of the kingdom.
But, grievous as was the blow inflicted on the nation by the ruin of
their darling Darien scheme, and culpable as the English authorities,
from their Sovereign downwards, were in their conduct towards the
company, it may be doubted if the enterprise possessed in itself the
elements necessary to success, and if the national enthusiasm did not
get diverted into an entirely wrong channel. Now that the lapse of time
permits an unbiassed judgment, it appears almost an absurdity that a
nation who had never been able to secure the blessings of peace and
prosperity within their own borders should, while so much remained to be
done at home, have tried to imitate their wealthy neighbours in the
creation of a colonial empire. The amount of capital sunk, and the
number of human lives lost in that deplorable attempt might, if saved
and utilised at home, have greatly antedated the advent of national
prosperity.
In fairness, however, to
our courageous ancestors, it must be admitted that the means of
utilising the national energies were then in a very deficient state. The
accessories necessary to the production of commodities on such a scale,
and of such quality, as successfully to compete with foreign markets,
were not possessed by the people; the motive power of
industry—capital—was not within their reach. What they could do with the
limited powers at their command they did, toiling at their linen and
other manufactures, protected by their Parliament's prohibitions against
the use of the superior fabrics of foreign nations. But, from the time
when they got the aid of a banking system and a sufficient currency,
they made great strides, not without stumbles, it is true, yet more
rapidly and more surely than any other nation before them.
When the Scottish leaders
got personal experience of the power of English commerce, and of the
influence of trading associations in promoting wealth, they were not
slow to evince a desire to procure the same advantages for their native
country. The troublous times appear, however, to have interfered with
practical action; and it was not until late in the seventeenth century
that the Legislature began systematically to make special provision for
the encouragement of trade. One of the most important of the measures
passed was the Act, William and Mary, 1693, chapter 32, "for the
encouraging of Foreign Trade," in which "our Sovereign Lord and Lady,
the King and Queen's Majesties, Considering how much the Improvement of
Trade concerns the Wealth and Welfare of the Kingdom, and that nothing
hath been found more effectual for the improving and enlarging thereof
than the Erecting and Encouraging of Companies, whereby the same may be
carried on by Undertakings to the remotest Parts, which it is not
possible for single Persons to undergo," proceeded to authorise the
association of merchants and others for commercial enterprises in all
parts of the world "where Trade is in Use to be followed," with promise
of protection and encouragement.
It would not seem,
however, that much practical result immediately followed this measure;
but it paved the way for two important Acts of the session 1695,
incorporating the commonly-called Darien Company, and the Bank of
Scotland. The former was the product of the fertile genius of William
Paterson, whose character and abilities have been variously estimated.
It is evident that he was a man of great energy and perseverance, and
had powers of perception and organisation of a high order. Driven, at an
early age, from his native Dumfriesshire by adverse circumstances, he
passed into England and engaged in trade, apparently with much success.
There he took an active and influential part in financial and commercial
discussions, in which he shows that, although not entirely free from the
erroneous views prevalent at that time on such subjects, he was very far
in advance of his contemporaries. He projected the Bank of England, and
succeeded, in spite of considerable opposition, in getting it
established in 1694, and was one of its original directors. But, owing
to disagreements with his colleagues, he did not retain his seat at the
board many months, and he does not seem subsequently to have taken any
part in the management of the bank.
After directing his
energies to the establishment of an "Orphan Bank" and other schemes,
Paterson conceived his great project of establishing a colony on the
Isthmus of Darien for trading purposes. It was expected that this colony
would become the entrepot of the trade of Europe with Asia, as well as
with the West Indies. In one of his letters to the Darien Company,
Paterson says: "The time and expense of navigation to China, Japan, the
spice islands, and the far greater parte of the East Indies, will be
lessened more than half, and the consumption of European commodityes and
manufactories will soon be more than doubled. . . . Thus the door of the
seas, and the key of the universe, with anything of a reasonable
management, will enable its proprietors to give laws to both oceans, and
to become arbitrators of the commercial world." [Memoirs of Great
Britain and Ireland, Dalrymple, London, 1771-88, vol. iii. p. 93.]
At first Paterson
endeavoured to launch his project in England; but it was treated with
indifference or disfavour by those he consulted. He then went to
Holland, in the hope that Dutch and Hamburg merchants would favour the
idea; but no more success attended him there. Returning to England, it
is said that Fletcher of Saltoun "persuaded him to trust the fate of his
project to his own countrymen alone, and to let them have the sole
benefit, glory, and danger of it." It would seem, however, that although
the scheme was to be a Scotch one, English and Dutch support was still
sought, and it was obtained when Scotch enthusiasm seemed to promise
success. In his scheme he appears to have had influential associates
both in Scotland and London. An Act authorising and incorporating a
company for carrying out the proposal was obtained from the Scots
Parliament on 26th June 1695. In the words of Paterson's biographer,
"the original plan was to share the hazards of the design, in reasonable
proportion, between the Scots and the English; and foreigners were to be
invited to join them both. . . . The original leaders of it, whose names
are inserted in the Act, were nine [ten] residents in Scotland, with
Lord Belhaven and the Lord Provost of Edinburgh, Sir Robert Chiesley, at
their head; and eleven residents in London, merchants, with William
Paterson and Thomas Coutts at their head. . . . Mr. Paterson is found to
be a subscriber for £3000, and his servant for £100." [William
Paterson: His Life and Trials, S. Bannister, Edinburgh, 1858, p. 129.]
The floating of the
Indian and African Company of Scotland met with great opposition from
interested parties in London; its promoters were threatened with
impeachment, and the English, Dutch, and Hamburg subscriptions, which
had been obtained to the extent of £500,000, were withdrawn at the
command of the king, who was pressed to such action by the English
Parliament. After in vain seeking renewed countenance in Holland, the
promoters appealed to Scotland alone. The appeal was strikingly
successful. "The frenzy of the Scots nation to sign the Solemn League
and Covenant never exceeded the rapidity with which they ran to
subscribe to the Darien Company. The nobility, the gentry, the
merchants, the people, the royal burghs, and most of the other public
bodies, subscribed." The national spirit was raised to a high pitch of
enthusiasm by the jealous opposition of the English, and by the hope of
great profit from the adventure. Although at that time the country was
so poor that its total currency did not exceed £800,000 (according to
authoritative estimates), a capital of £400,000, of which more than half
was paid up, was eagerly subscribed.
Much time was occupied in
preparation for the departure of the expedition, in the course of which
Paterson was unfortunate enough to get involved in the loss of several
thousand pounds of the company's money. An investigation at the time
cleared his personal character, but from that time his influence in the
enterprise was greatly diminished. From being the prospective leader he
became a mere supernumerary. At last all was ready, and, "on the 26th
day of July, of the year 1698," says Sir John Dalrymple, "the whole city
of Edinburgh poured down upon Leith to see the colony depart, amidst the
tears and prayers and praises of relations and friends, and of their
countrymen. Many seamen and soldiers, whose services had been refused,
because more had offered themselves than were needed, were found hid in
the ships, and, when ordered ashore, clung to the ropes and timbers,
imploring [to be allowed] to go, without reward, with their countrymen."
The expedition consisted
of five well-armed ships, laden with merchandise, and having twelve
hundred men on board. They arrived at their destination with but small
loss, and the colony was formally established as New Caledonia, with New
Edinburgh as its chief town. But difficulties and hardships were soon
encountered, and severely tried the colonists. English opposition was
carried to so great an extent, that the West Indian and American
colonies were forbidden to sell food to the Scottish expedition, or to
give them any assistance. Relying on obtaining from the neighbouring
colonies such supplies as they might need, the Scots had brought with
them little more than they required for the voyage. They were therefore
reduced to depend for sustenance on the produce of the country, and that
was both scanty and bad. Disease broke out, and many of the colonists
died. Divided command among the leaders led to serious dissensions, and,
encouraged by the openly manifested opposition of the English
authorities, the Spaniards became menacing. Denied any assistance from
the neighbouring colonies, the adventurers endured great miseries, under
which their spirit was broken. At last, to avoid starvation, they
abandoned the colony.
Eight weeks afterwards a
second expedition arrived. These suffered as severely as their
predecessors, and in one respect were even worse circumstanced. Four
Presbyterian clergymen, who had been entrusted with the spiritual
oversight, began to lecture and denounce them for their sins, continuing
their services for hours without intermission, relieving each other by
turns, while their heart-broken and wearied flock sat dumb before them.
When they had been three months in the colony, they were joined by
another party. Though apparently small in numbers, they brought a great
accession of strength in the person of the able soldier, Colonel
Campbell of Finab. The Spaniards soon advanced a strong force against
the colony both by sea and land. Campbell gallantly defeated the land
force, and maintained a brave defence against the ships. After enduring
great privations, to which many of the colonists succumbed, they were
obliged to submit. A third expedition, consisting of about thirteen
hundred men, did not fare better than their predecessors, and were
forced to abandon the enterprise. After having capitulated to a large
Spanish force, on honourable terms, the Scots finally evacuated the
colony in April 1700. Of the original expedition, only thirty persons
are reported to have returned to Scotland ; and, according to an account
published in 1787, "from first to last, two thousand Scotsmen lost their
lives in this unfortunate adventure." [History of Edinburgh, Alex.
Kincaid, Edinburgh, 1787, p. 284.]
The effects of this
catastrophe on the Scottish nation were very marked. The great loss of
life and property which had been sustained was felt throughout the land
and among all classes, for the movement had been a national, not a party
one. The people might, however, have mourned their dead, and borne their
pecuniary losses, with that equanimity which they had so often displayed
on other trying occasions, had it not been for the knowledge that their
griefs were due to the neglect of their Sovereign and the jealousy of
his English subjects. As it was, their vexation broke out in wrath.
"Nothing," says Sir Walter Scott, "could be heard throughout Scotland
but the language of grief and of resentment. Indemnification, redress,
revenge, were demanded by every mouth, and each hand seemed ready to
vouch for the justice of the claim. For many years no such universal
feeling had occupied the Scottish people." |
