FOOTNOTES:
[9] Lawful.
[10] Only.
THE DARIEN SCHEME (1695-1700).
A. The Project and its Originator (1695).
Source.—Bishop Burnet's History of His Own Times, vol. iv., p. 282. (Oxford: 1833.)
Another act passed, that has already produced very fatal consequences to that kingdom[11]; and may yet draw worse after it: the interlopers in the East India trade, finding that the company was like to be favoured by the parliament, as well as by the court, were resolved to try other methods to break in upon that trade: they entered into a treaty with some merchants in Scotland; and they had, in the former session, procured an act, that promised letters patents to all such as should offer to set up new manufactures, or drive any new trade, not yet practised by that kingdom, with an exemption for twenty-one years from all taxes and customs, and with all such other privileges, as should be found necessary for establishing or encouraging such projects. But here was a necessity of procuring letters patents, which they knew the credit that the East India company had at court would certainly render ineffectual. So they were now in treaty for a new act, which should free them from that difficulty.
There was one Paterson, a man of no education, but of great notions; which, as was generally said, he had learned from the Buccaneers, with whom he had consorted for some time. He had considered a place in Darien, where he thought a good settlement might be made, with another over against it, in the South Sea; and by two settlements there, he fancied a great trade might be opened both for the East and West Indies; and that the Spaniards in the neighbourhood might be kept in great subjection to them; so he made the merchants believe, that he had a great secret, which he did not think fit yet to discover, and reserved to a fitter opportunity; only he desired, that the West Indies might be named in any new act that should be offered to the parliament: he made them in general understand, that he knew of a country, not possessed by Spaniards, where there were rich mines, and gold in abundance. While these matters were in treaty, the time of the King's giving the instructions to his commissioner for the parliament came on; and it had been a thing of course, to give a general instruction, to pass all bills for the encouragement of trade. Johnstoun told the King, that he heard there was a secret management among the merchants for an act in Scotland, under which the East India trade might be set up; so he proposed, and drew an instruction, impowering the commissioner to pass any bill, promising letters patents for encouraging of trade, yet limited, so that it should not interfere with the trade of England: when they went down to Scotland, the King's commissioner either did not consider this, or had no regard to it; for he gave the royal assent to an act, that gave the undertakers, either of the East India or West India trade, all possible privileges, with exemption of twenty-one years from all impositions: and the act directed letters patents to be passed under the great seal, without any further warrant for them: when this was printed, it gave a great alarm in England, more particularly to the East India company; for many of the merchants of London resolved to join stock with the Scotch company; and the exemption from all duties gave a great prospect of gain. Such was the posture of affairs in Scotland....