Penn had already had some experience in colonial affairs. With the downfall of the Dutch dominion in the New World, England had come into possession of two important rivers, the Hudson and the Delaware, and of the countries which they drained. Of these estates, the Duke of York had become owner of New Jersey. He, in turn, dividing it into two portions, west and east, had sold West Jersey to Lord Berkeley, and East Jersey to Sir George Carteret. Berkeley had sold West Jersey to a Quaker, John Fenwick, in trust for another Quaker, Edward Byllinge. These Quakers, disagreeing, had asked Penn to arbitrate between them. Byllinge had fallen into bankruptcy, and his lands had been transferred to Penn as receiver for the benefit of the creditors. Thus William had come into a position of importance in the affairs of West Jersey. Presently, in 1679, East Jersey came also into the market, and Penn and eleven others bought it at auction. These twelve took in other twelve, and the twenty-four appointed a Quaker governor, Robert Barclay.
Now, in 1680, having had his early interest in America thus renewed and strengthened, Penn found that the king was in his debt to the amount of sixteen thousand pounds. Part of this money had been loaned to the king by William's father, the admiral; part of it was the admiral's unpaid salary. Mr. Pepys has recorded in his diary how scandalously Charles left his officers unpaid. The king, he says, could not walk in his own house without meeting at every hand men whom he was ruining, while at the same time he was spending money prodigally upon his pleasures. Pepys himself fell into poverty in his old age, accounting the king to be in debt to him in the sum of twenty-eight thousand pounds.
Penn considered his account collectible. "I have been," he wrote, "these thirteen years the servant of Truth and Friends, and for my testimony's sake lost much,—not only the greatness and preferment of the world, but sixteen thousand pounds of my estate which, had I not been what I am, I had long ago obtained." It is doubtful, however, if the king would have ever paid a penny. It is certain that when William offered to exchange the money for a district in America, Charles agreed to the bargain with great joy.
The territory thus bestowed was "all that tract or part of land in America, bounded on the east by the Delaware River, from twelve miles northward of New Castle town unto the three and fortieth degree of northern latitude. The said land to extend westward five degrees in longitude, to be computed from the said eastern bounds, and the said lands to be bounded on the north by the beginning of the three and fortieth degree of northern latitude and on the south by a circle drawn at twelve miles distance from New Castle, northward and westward, unto the beginning of the fortieth degree of northern latitude, and then by a straight line westward to the limits of longitude above mentioned."
This was a country almost as large as England. No such extensive domain had ever been given to a subject by an English sovereign: but none had ever been paid for by a sum of money so substantial.
On the 4th of March, 1681, the charter received the signature of Charles the Second. On the 21st of August, 1682, the Duke of York signed a deed whereby he released the tract of land called Pennsylvania to William Penn and his heirs forever. About the same time, by a like deed, the duke conveyed to Penn the district which is now called Delaware. Penn agreed, on his part, as a feudal subject, to render yearly to the king two skins of beaver, and a fifth part of all the gold and silver found in the ground; and to the duke "one rose at the feast of St. Michael the Archangel."
This association of sentiment and religion with a transaction in real estate is a fitting symbol of the spirit in which the Pennsylvania colony was undertaken. Penn received the land as a sacred trust. It was regarded by him not as a personal estate, but as a religious possession to be held for the good of humanity, for the advancement of the cause of freedom, for the furtherance of the kingdom of heaven. He wrote at the time to a friend that he had obtained it in the name of God, that thus he may "serve his truth and people, and that an example may be set up to the nations." He believed that there was room there "for such an holy experiment."