Scotland's colonial project in central America - Darien Scheme 1690s

In May 1695, Paterson discussed establ­ishing an East India Co. in Scotland. The Scotsman was a well-to-do London merchant then, a Bank of England found­er. His cherished idea was establishing a free port on the Isthmus of America whose geographical position might handle more of the commerce between Europe and the Far East. 

The desire for Company of Scotland’s worldwide trade originated when Scots wanted to enjoy economic advant­ages like those possessed by other European nations in C17th.

Paterson pro­posed a trading colony in what is now Pan­ama. In 1693 he helped establish the Co. of Scotland Trading to Africa and the Indies in Edinburgh for an entrepôt on the Isthmus of Dar­ien separating North and South America. Pater­son thought it would allow Scottish-made goods to be transported easily across the world, helping the Co. prosper through foreign trade.

The original directors of the Co. of Scotland were Scottish and English in equal numbers; the risk investment capital came half from the Scots, and half from the English and Dutch together. But under pressure from the East India Co., afraid of losing their trade mon­opoly, the English Parliament suddenly withdrew its support. This forced the English and Dutch to withdraw, leav­­ing the Scottish investors. Still, there were no shortage as thousands of ordinary Scottish folk inv­ested even small amounts. Thous­ands more volunteered to travel on board the five ships that had been chartered to carry the pioneers to their new home, including famine-driven Highlanders and soldiers. So it was with much fanfare that the ships sailed from Leith harbour in July 1698 with 1,200 passengers.

But it was a depleted, anxious group of pioneers that landed on the mosquito-infested isthmus in Oct 1698. They struggled ashore, naming the land Caledonia and its capit­al New Edin­burgh. The first task was to dig graves for the dead pioneers, including Pat­er­son’s wife and their child. The situation worsened without food, and with attacks from hostile Spaniards. The native Indians helped the Scots, bring­ing them gifts of fruit and fish. But 7 months later, 400 Scots were dead and the rest had yellow fever.

They left. But 6 more ships sailed from Leith in Nov 1699 loaded with another 1,300 excited pioneers, all ig­norant about the earlier settlers. Then a 3rd fleet of 5 ships left Leith shortly after, making a grand total of 16 ships.

ONE ship returned home, with only a handful of survivors. Scot­land had paid a terrible price: 2000+ deaths and the loss of the £500,000 investment damaged the Scottish economy. By the terms of the Act of Union, the Darien share­hold­ers received out of the Equivalent Money repaying their subscriptions with 5% int­erest. Then the main shareholders formed themsel­ves into a Co. of Equiv­al­ent Prop­rietors, in return for an annuity. By 1727, these Equivalent Proprietors began banking, and obtained a charter as The Scottish Banking Co/Royal Bank of Scotland.

While Scotland & England shared the king, they were mostly politically & economically independent. The scheme was intended to secure a wider market for Scottish traders because the English Navigation Acts deemed Scotland a foreign country. It couldn't participate in England's trading privileges! 

Paterson's draft for the Act to establish a Trading Co. was pres­ented to par­l­iament in June 1695. Meanwhile public interest had been aroused by the publication of a broadside: Prop­osals for a Fond to Cary on a Plantat­ion. The Act establishing the Co. of Scotland Trading to Africa and the Indies was read in Parliament and passed. The Act permitted colonies in all parts of the unclaimed world; to receive restitution from the King if company people or goods were seized or damaged; free trade for a number of years; freedom from most legal restrictions; and the King of England’s promise to assist them in maintaining their privileges with other nations. 

With vessels prepared and supplies purchased, the first expedition (c1,200 colonists and seamen) sailed in late July 1698. Darien was reached Nov 1698,  fortifying the site by installing 50 cannons and erecting Fort St Andrew. Alongside the Harbour there was a high mountain, on which they placed a watch house which gave an immense view. The colonists issued a proclamation declaring freedom of trade and religion, sent friendly messages to the Spanish Governors and negotiat­ed with locals to purchase land. News of their safe settlement in the Isthmus arrived at Edinburgh in March and was widely celebrated.

Paterson happily wrote: "Send me the remainder of good arm­es, ammunition and provisions are staple commoditys here therfore if there be not any thing to your greater satisfaction send of them, also servants and tradesmen such as carpenters. No hardships!

In Jan 1699, supplies were despatched from the Clyde, but the vessel was wrecked. Two other relief ships were delayed and did not reach Darien until sev­eral months later. Meanwhile at the col­ony, the hot season arrived with tropical dis­eas­es. As the colony provisions ran short, and with no relief arriv­ing, most colon­ists died. After months, the few survivors left.

Before the colony's collapse was known, another expedition of 4 ships sailed from Rothsey Bay with 1,200 colonists but c160 members of this second party died on the voyage out. Desp­ite the ships docking at Mont­ser­rat for supplies, they were re­fused both water and food by the Gov­ernor, acting under English instruct­ions!