26 March 2022

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


Darien
New Edinburgh marked in red
Central America

Darien logo
University of Glasgow

William Paterson was born in Dumfriesshire in 1658. He made his first fortune via international trade throughout the Amer­icas and West Indies. Back home, Paterson sought to make his second fortune with an epic scheme. His plan was to create an east-west link, to command the trade of the two great oceans: Pacific and Atlantic.

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.

Sir William Paterson
Wikiwand

Company headquarters, Edinburgh
Medium.com

Investor lists
in the Company of Scotland Journals

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 to secure a wider market for Scottish traders.. as 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!

Facilities built for the first settlers
                             
Fort St Andrew, today
historynaked.com

Equip­ped only to relieve an existing colony, the second colonists’ pos­ition was even more precar­ious. The nearby Spanish took the Fort and block­aded the harbour. The sympathetic Spanish Commander, seeing their condition, offered easy surrender terms: agreeing to help them out, IF they left their ammunition and left. After 4.5 harrowing months the ships were boarded and the Co. of Scotland Trading to Africa and the Indies permanently left Darien.

But misfortune still followed. Fever broke out and many died at sea; one ship leaked, was taken into Cartagena and sold; another was wrecked near Jamaica and c250 died of disease in the other ships. The rem­ain­ing ships sailed for home but one was lost off Charlestown with c140 colonists. How many survivors of the two expeditions reached UK is unknown, ?30. So ended the great Darien Colonisation Scheme.

So what were consequences of the failed scheme - formation of the Royal Bank of Scotland? Did the Darien Scheme crip­ple the country’s economy such that it triggered the dissol­ution of the Scottish Parliam­ent and led to the 1707 Act of Union with England? Read Karin Bowie's proposals.  





14 comments:

Student of History said...

Helen

I cannot imagine why the English gave orders to the Governor of Montserrat to withhold foods and water from the colonists on the ships going to Panama. Even in war, enemy civilians are entitled to minimal supplies.

Anonymous said...

What a monumental...I can't write what I want. Of course this was not the only place such things happened to naive colonists. Of this one I wasn't aware. Money to be possibly made is a great enticer but hot tropics and white people never got along.

Adamas said...

Scotland wasn't the only "exotic" country willing to colonize the World.
Sweden and the Duchy of Courland (Kurlandia i Semigalia, now part of Latvia) also established their colonies. This Polish fief established colonies in Tobago and on the Island of St. James in Gambia :)

Hels said...

Student

it was unbelievable, wasn't it? The English were definitely angry about the Scottish project going ahead, calling it illegal and financially reckless. But have a look at this report and make what you can of the word: supplies.

"On 9th November the fleet stood before the island of Montserrat, where Councillor Byres landed in quest of water, some fresh provisions, and the latest news; but the governor of the island refused to give any supplies, stating that he was acting in conformity with orders which he had received from the Court of England".

https://electricscotland.com/history/darien/chapter07.htm

Hels said...

Andrew

individuals and nations had dreams that they wanted to fulfil, even if the risks seemed unacceptable to clear-thinking people. Setting up a trading colony half way between the two main oceans of course had huge financial appeal, and I imagine that mostly accounted for the thousands of Scottish investors who stayed safely in Scotland.

But what explained the thousands of ordinary Scots who volunteered to sail on the ships to Darien? Nationalism? A better quality of life? Religious dreams? Desperation for employment?

Hels said...

Adamas

totally correct! The 17th century was a golden age of mercantile companies; worldwide trade was very appealing, especially when the colony was based near the trade and not near home. But Scotland felt itself left behind - they looked around and saw guaranteed monopolies in distant geographical regions eg Hudson's Bay Co and Dutch East India Co. And even smaller colonies like the Polish ones you mentioned.

Joe said...

Helen this reminds me of Shackleton's expeditions around the Antarctic. Could the colonial ships from Scotland each take a doctor to the Isthmus?

Dr John Munro was employed by the Company at home to equip the ships with medicines and supplies, even though he knew there was no medicine that could cure yellow fever. Dengue wasn't even described until 1780, and malaria another century later. Dysentery was recognised but what could they do in remote areas?

Hels said...

Joe

As much as I would not have liked the snowy, miserable conditions of Antarctica, I would have disliked the humid, hot and infected conditions of the Isthmus much more :( Of course dead is dead, so in the end it may not have mattered. Becoming desperately hungry in the snow meant loss of fat and later muscle. And better rations would have lessened the suffering from frost bite and hypothermia.

But what could have saved the Scotsmen? And why risk the lives of colonial wives and children in the first place?

Hilary Melton-Butcher said...

Hi Hels - a treacherous area of the world - not much improved since. Those early sailors or coerced ones - were brave ... and very lucky if they returned home. Unfortunately for the Scots not a good prospect ... but an interesting one to read about 300+ years later - cheers Hilary

Hels said...

Hilary

I absolutely appreciated why Scotland wanted to do better in international trading, and why they needed a well placed colony to promote that trade. But didn't they do their preparatory work re climate, disease, ship safety, potential enemies, need for carpenters ironmongers etc???

Mind you, even if they were well prepared, bad luck could not be prevented eg a ship was wrecked near Jamaica.

Handmade in Israel said...

Fancy sending 6 more ships from Leith when the first expedition had proved so disastrous. I guess we should be grateful for the communication skills we have today.

Luiz Gomes said...

Bom dia. Desejo uma excelente segunda-feira com muita paz e saúde. Obrigado pela excelente matéria de qualidade.

Hels said...

Handmade

Nobody these days thinks of a time without instant communications. But even then, the excitement was so intense the ships would have probably sailed anyhow. Yelling, waving crowds, flags, bands playing, official Company farewell speeches.

hels said...

Luiz

successful trade and a high national profile were so important!