The idea
Scotland at the end of the Seventeenth Century was in a state of crisis. Decades of warfare had combined with seven years of famine to drive people from their homesteads and choke the cities with homeless vagrants, starving to death in the streets. The nation's trade had been crippled by England's continual wars against continental Europe, and its home-grown industries were withering on the vine. Something had to be done. Some way had to be found to revive Scotland's economic fortunes before it got swallowed up by its much richer neighbour south of the border.
The man who came up with the answer was a financial adventurer called William Paterson, a Scot who had made his name down south as one of the founding directors of the Bank of England. Paterson returned to Edinburgh with an audacious scheme to turn Scotland into the major broker of trade across the Pacific Ocean. Whilst in London, he had met a sailor called Lionel Wafer, who had told him about a wonderful paradise on the Isthmus of Panama, with a sheltered bay, friendly Indians and rich, fertile land - a place called Darien.
Paterson had immediately seen the potential of Darien as the location of a trading colony. Trade with the incredibly lucrative Pacific markets was a hugely expensive business, since all merchant ships had to make the hazardous trip round Cape Horn on the southern tip of South America. This added months to the journey, and the ships involved had a high chance of being lost at sea. If a colony could be established at Darien, goods could be ferried from the Pacific across Panama and loaded onto ships in the Atlantic from there, speeding up Pacific trade and making it much more reliable. Moreover, the Scottish directors of the Darien Venture could charge a nice fat commission for the privilege. Never mind that the Spanish claimed control of that part of Panama: no-one ever made a profit without stepping on some toes.
Published: 2001-05-01
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