+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....
Great complaints were made in both houses of the act for the Scotch East
India company, and addresses were made to the King, setting forth the
inconveniencies that were like to arise from thence to England: the King
answered, that he had been ill served in Scotland: but he hoped remedies
should be found, to prevent the ill consequences that they apprehended
from the act: and soon after this, he turned out both the secretaries of
state, and the marquis of Tweedale: and great changes were made in the
whole ministry of that Kingdom, both high and low....
But when it was understood in Scotland that the King had disowned the
act for the East India company, from which it was expected that great
riches should flow into that Kingdom, it is not easy to conceive how
great and how general an indignation was spread over the whole kingdom:
the Jacobites saw what a game it was like to prove in their hands; they
played it with great skill, and to the advantage of their cause, in a
course of many years; and continue to manage it to this day: there was a
great deal of noise made of the Scotch act in both houses of parliament
in England, by some who seemed to have no other design in that, but to
heighten our distractions by the apprehensions that they expressed. The
Scotch nation fancied nothing but mountains of gold; and the credit of
the design rose so high, that subscriptions were made, and advances of
money were offered, beyond what any believed the wealth of that Kingdom
could have furnished. Paterson came to have such credit among them, that
the design of the East India trade, how promising soever, was wholly
laid aside: and they resolved to employ all their wealth in the settling
a colony, with a port and fortifications, in Darien; which was long kept
a secret, and was only trusted to a select number, who assumed to
themselves the name of the African company, though they never meddled
with any concern in that part of the world; the unhappy progress of the
affair will appear in its proper time.