Company of Scotland
Encyclopedia
The Company of Scotland Trading to Africa and the Indies, also called the Scottish Darien Company, was an overseas trading company created by an act of the Parliament of Scotland
in 1695. The Act granted the Company a monopoly of Scottish trade to India, Africa and the Americas, similar to English charter companies' monopolies, and also extraordinary sovereign rights and temporary exemptions from taxation.
Financial and political troubles plagued its early years. The governors were divided between those residing and meeting in Edinburgh and those in London, amongst whom were both Scots and Englishmen. They were divided also by those by business intentions; some intended to trade in India
and on the African coast, as an effective competitor to the English East India Company, while others were drawn to Paterson
's Darien scheme
, which ultimately prevailed.
In July 1698 it launched its first expedition, led by William Paterson
, who hoped to establish a colony
in Darien
(on the Isthmus of Panama
), which could then be used as a trading point between Europe
and the Far East
.
Though five ships and 1,200 Scottish
colonists landed successfully in Darien, the settlement was poorly provisioned and eventually abandoned. A second, larger expedition (launched before the fate of the first was known) took up the deserted settlement, but was quickly besieged by the Spanish
. More than a thousand succumbed to hunger and disease, and in April 1700, two ships carried the few survivors home.
, drained Scotland of an estimated quarter of its liquid assets and played a key role in encouraging the country to the 1707 Act of Union which united the Kingdoms of Scotland and England
. The new joint government agreed to cover
the Scottish Government's debt to its people.
Parliament of Scotland
The Parliament of Scotland, officially the Estates of Parliament, was the legislature of the Kingdom of Scotland. The unicameral parliament of Scotland is first found on record during the early 13th century, with the first meeting for which a primary source survives at...
in 1695. The Act granted the Company a monopoly of Scottish trade to India, Africa and the Americas, similar to English charter companies' monopolies, and also extraordinary sovereign rights and temporary exemptions from taxation.
Financial and political troubles plagued its early years. The governors were divided between those residing and meeting in Edinburgh and those in London, amongst whom were both Scots and Englishmen. They were divided also by those by business intentions; some intended to trade in India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
and on the African coast, as an effective competitor to the English East India Company, while others were drawn to Paterson
William Paterson (banker)
Sir William Paterson was a Scottish trader and banker.- Early life :...
's Darien scheme
Darién scheme
The Darién scheme was an unsuccessful attempt by the Kingdom of Scotland to become a world trading nation by establishing a colony called "New Caledonia" on the Isthmus of Panama in the late 1690s...
, which ultimately prevailed.
In July 1698 it launched its first expedition, led by William Paterson
William Paterson (banker)
Sir William Paterson was a Scottish trader and banker.- Early life :...
, who hoped to establish a colony
Colony
In politics and history, a colony is a territory under the immediate political control of a state. For colonies in antiquity, city-states would often found their own colonies. Some colonies were historically countries, while others were territories without definite statehood from their inception....
in Darien
Darién Province
Darién is a province in eastern Panama. It is also the largest province in Panama. It is hot, humid, heavily forested, and sparsely populated, having 48,378 habitants...
(on the Isthmus of Panama
Isthmus of Panama
The Isthmus of Panama, also historically known as the Isthmus of Darien, is the narrow strip of land that lies between the Caribbean Sea and the Pacific Ocean, linking North and South America. It contains the country of Panama and the Panama Canal...
), which could then be used as a trading point between Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
and the Far East
Far East
The Far East is an English term mostly describing East Asia and Southeast Asia, with South Asia sometimes also included for economic and cultural reasons.The term came into use in European geopolitical discourse in the 19th century,...
.
Though five ships and 1,200 Scottish
Scotland
Scotland is a country that is part of the United Kingdom. Occupying the northern third of the island of Great Britain, it shares a border with England to the south and is bounded by the North Sea to the east, the Atlantic Ocean to the north and west, and the North Channel and Irish Sea to the...
colonists landed successfully in Darien, the settlement was poorly provisioned and eventually abandoned. A second, larger expedition (launched before the fate of the first was known) took up the deserted settlement, but was quickly besieged by the Spanish
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
. More than a thousand succumbed to hunger and disease, and in April 1700, two ships carried the few survivors home.
Consequences of failure
All told, the venture, dubbed the Darien SchemeDarién scheme
The Darién scheme was an unsuccessful attempt by the Kingdom of Scotland to become a world trading nation by establishing a colony called "New Caledonia" on the Isthmus of Panama in the late 1690s...
, drained Scotland of an estimated quarter of its liquid assets and played a key role in encouraging the country to the 1707 Act of Union which united the Kingdoms of Scotland and England
England
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...
. The new joint government agreed to cover
The Equivalent
The Equivalent was a sum negotiated at £398,000 paid to Scotland by the English Government under the terms of the Acts of Union 1707. Proposals for it first emerged in the course of abortive Union negotiations in 1702/03.-Purpose of The Equivalent:...
the Scottish Government's debt to its people.
Sources
- Refer: Papers Relating to the Ships and Voyages of the Company of Scotland Trading to Africa and the Indies, 1696-1707 edited by George Pratt Insh, M.A., Scottish History Society, Edinburgh University Press, 1924.