The Company of Scotland for Trading to …

Years: 1697 - 1697

The Company of Scotland for Trading to Africa, returning to Edinburgh, is able to raise what is, for Scotland, a massive amount of capital: four hundred thousand pounds sterling in a few weeks (equivalent to roughly forty million pounds in 2007), with investments from every level of society, and comprising roughly a fifth of the wealth of Scotland.

The Scots-born trader and financier William Paterson had, while in London, met a sailor called Lionel Wafer, a surgeon and buccaneer marooned for four years on the isthmus.

Wafer 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 has long been promoting a plan for a colony on the Isthmus of Panama to be used as a gateway between the Atlantic and Pacific—the same principle that, much later, will lead to the construction of the Panama Canal.

Paterson, who has a great capacity for hard work, is instrumental in getting the Company off the ground in London.

He had failed to interest several European countries in his project but in the aftermath of the English reaction to the Company he is able to get a respectful hearing for his ideas.

The Scots' original aim of emulating the East India Company by breaking into the lucrative trading areas of the Indies and Africa is forgotten and the highly ambitious Darien scheme is adopted by the company.

Paterson falls from grace when a subordinate embezzles from the Company.

The Company takes back Paterson's stock and expels him from the Court of Directors; he is to have little real influence on events after this point.

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