In the late 17th Century, a business idea was hatched by William Paterson to create a Scottish Colony in the New World. The colony, on the Isthmus of Darien in Panama, would serve as an outlet for merchants and provide a stimulus for the sagging Scottish economy. But in the end, the episode would prove to be a disaster, reinforcing Scottish claims of inequality in trade with the loss of two thousand colonists and almost a half million pounds Sterling.

The Scottish economy had been suffering for years. The English Navigation Acts of 1660 and 1663 had started the problem by requiring that all cargo to and from the colonies be transported either in English ships or by a ship with a crew that was three quarters English. They further stated that all cargo from foreign nations had to arrive in the ships of the country in question or English Ships. By this means, England put a stranglehold on the Scottish economy. The famous Scottish shipyards which had made many a warship and merchantman quickly closed down. Scottish ships were restricted to calling on Scottish ports in a business that quickly became unprofitable. Further measures, largely other Acts limiting the import of Scottish goods to England, put a further strain on the economy. The Scottish, to a large part, were literally driven from business and forced to rely on the English for support.

The matter was further aggravated by crop failures in the 1680's and 1690's. The grain crops, which Scotland sold to Norway, failed for seven successive years. In 1695, Scottish Parliament passed an Act to establish a Company of Scotland Trading to Africa and the Indies in an effort to help. Although sound, the idea immediately came under pressure from the already established East India Company of England, driving away money and investors to protect what the East India Company considered 'its' territory.

William Paterson proposed a Scottish colony in the New World which would not fall under the restrictions for shipping and trade of the English laws. The previous Scottish Colonial attempts, that of Nova Scotia, the Quaker settlement in New England and the Covenanters' refuge in Carolina, had all failed. This new colony would give an outlet for Scottish merchants and hopefully provide the 'shot in the arm' so sorely needed. Investors flocked to the idea, quickly raising 400,000 pounds Sterling - equivalent to half the available capital in all of Scotland.

But where could Scotland colonize? The English, Dutch, French and Spanish claimed most of the New World. The Company would either have to find new or unwanted lands, or settle an area in secret, building its power until the colony could not be disputed. On the July 12th, 1698 the small fleet with five ships set out for the Isthmus of Darien in Panama. The area was claimed by Spain and populated mainly by Natives.

By November, 1698, the fleet landed after a voyage in which many of the would-be-settlers died of disease. The outlook of the group remained well, as disease and death was a normal effect of travel during these times. The Colony was named New Caledonia and a city New Edinburgh was started. But things did not pan out as planned. The harbor, which looked so good on paper, had a prevailing north wind, which prevented ships from leaving during several months of the year. This was combined with the effects of mosquitoes and disease that began to take its toll on the colonists.

The expedition was dealt a major blow when a proclamation was issued forbidding English trade with the colony. In 1699, the Spanish at Cartagena, Columbia, received word of the colony and began to actively war on the Scots. By 1700, the effects of disease, Spanish raids and lack of English support combined to force the abandonment of the colony with a great loss of funds. Many of the surviving colonists ended up selling themselves into indentured servitude in Jamaica for food and clothing.

The idea of a Scottish Colony was sound in principal, but required backing by the English to be successful. This was not going to happen, as political realities all favored English business during this time. Thus the Colony was doomed from the start, as was any venture that attempted to compete with the economic establishment of the time. The Darien disaster vividly illustrated the unfair trade practices in place during this time period and many of the investors in the Darien Scheme lost everything. Fortunately, they were later compensated during the Act of Union in 1707.

by BW, April 2000

Suggested Reading:

The Darien Disaster, by John Prebble, Holt, Rinehart and Winston, 1968

Links:

William Paterson Famous Scot

Darien Scheme

The Spencer Collection

Biography of William Vetch

Darien, Panama

Kinnaird Woldwide-See History link

Scotland's Past- See under History