The Jacobite Rebellions (1689-1746) Part 2

THE BANK OF SCOTLAND (1695).

+Source.+--_The Acts of the Parliaments of Scotland_, vol. ix., p.

495. (London: 1822.)

ACT FOR ERECTING A PUBLICK BANK.

Our Sovereign Lord considering how useful a Publick Bank may be in this Kingdom according to the custom of other kingdoms and states, and that the same can only be best set up and managed by persons in company with a Joynt Stock, sufficiently endowed with these powers and authorities and liberties necessary and usual in such cases, Hath therefore allowed, and with the advice and consent of the Estates of Parliament allows, a joynt stock amounting to the sum of twelve hundred thousand pounds money to be raised by the Company hereby established for the carrying on and managing of a publick bank. And further statutes and ordains, with advice foresaid, that the persons under-named ... shall have power to appoint a Book for subscriptions of persons, either natives or foreigners, who shall be willing to subscribe and pay into the joynt stock, Which subscriptions the foresaids persons or their quorum are hereby authorized to receive in the foresaid book, which shall lie open every tuesday or friday from nine to twelve in the forenoon, and from three to six in the afternoon betwixt the first day of November next and the first day of January next following, in the publick hall or chamber to be appointed in the City of Edinburgh. And therein all persons shall have liberty to subscribe for such sums of money as they shall think fit to adventure in the said joynt stock, one thousand pound Scots being the lowest sum, and twenty thousand pound Scots the highest. And the two third parts of the saids stocks belonging always to persons residing in Scotland. Likeas, each and every person at the time of his subscribing shall pay into the hands of the fore-named persons, or any three of them, ten of the hundred of the sums set down in their respective subscriptions towards the carrying on the Bank. And all and every the persons subscribing and paying into the said stock, as aforsaid, shall be and are hereby declared to be one Body Corporat and Politique, by the name of THE GOVERNOUR AND COMPANY OF THE BANK OF SCOTLAND, under which name they shall have perpetual succession, and shall have a Common Seal....

And it is farder hereby statute and ordained that it shall be lawful for the said Governour and Company to lend, upon real or personal security, any sum or sums, and to receive annual rent for the same at six per cent., as shall be ordinary for the time. As also, that if the person borrowing as said is, shall not make payment at the time agreed upon with the Company, then it shall be lawful for the Governour and Company to sell and dispose of the security or pledge by a public roup, for the most that can be got for payment to them of the princ.i.p.al annual rents and reasonable charges, and returning the over-plus to the person who gave the said security or pledge....

It is hereby statute that the joynt stock of the said Bank, continuing in money, shall be free from all publick burdens to be imposed upon money for the s.p.a.ce of twenty one years after the date hereof. And that during this s.p.a.ce it shall not be leisom[9] to any other persons to enter into and set up ane distinct Company of Bank within this Kingdom, besides these persons allennarly[10] in whose favour this Act is granted.... And it is likeways hereby provided that all foreigners who shall join as partners of this Bank shall thereby be and become naturalized Scotsmen to all intents and purposes.

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 pa.s.sed, 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 establis.h.i.+ng 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 pa.s.s 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 pa.s.s 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 a.s.sent 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 pa.s.sed 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 a.s.sumed 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.

FOOTNOTES:

[11] Scotland.

B. CONSt.i.tUTION OF THE COMPANY (1698).

+Source.+--_The Darien Papers: being a Selection of Original Letters and Official Doc.u.ments relating to the Establishment of a Colony at Darien by the Company of Scotland trading to Africa and the Indies, 1695-1700._ (Edinburgh: Bannatyne Club, 1849.)

Know all men by these presents, that in pursuance of the powers and privileges granted by the 32nd Act of the 4th Session and the 8th Act of the 5th Session of this current Parliament--as well as by His Majesty's letters patent under the great seal of this Kingdom, to the Company of Scotland trading to Africa and the Indies, the Council General of the said Company have upon mature deliberation _Resolved_ (G.o.d willing) to settle and plant a Colony in some place or other not inhabited, in America, or in or upon any other place, by consent of the natives and inhabitants thereof, and not possessed by any European Sovereign, Potentate, Prince, or State, to be called by the name of CALEDONIA; and the said Council General, reposing full trust and confidence in the capacity, fidelity, discretion, and good conduct of their trusty and well-beloved friends, Major James Cunningham of Eickett, Mr. James Montgomery, Mr. Daniel Mackay, Cap^n Robert Jolly, Cap^n Robert Pennicuik, Cap^n William Vetch, and Cap^n Robert Pinkarton,--have Resolved and fully agreed upon the following fundamental Const.i.tutions as a perpetual Rule of Government for the said Colony, viz.

1. That the Government Civil, Military and Admirality of the said Colony and dependancies thereof, shall be and remain in the persons of the said Major James Cunningham of Eickett, Mr. James Montgomery, Mr. Daniel Mackay, Cap^t Robert Jolly, Cap^t Robert Pennicuik, Cap^t William Vetch, and Cap^t Robert Pinkarton, from the time of their setting sail from Scotland, together with such others as shall be a.s.sum'd and added to them in manner after specified....

6. That all Persons, of what Nation soever, have full freedom and liberty to trade to and from the said colony under the condition after mentioned, and that such of them as shall come to live and inhabite on the said Colony, shall according to their respective States and conditions enjoy equal privileges with the other Inhabitants thereof, such Inhabitants first giving up their several names and designations to be enrolled in a particular Register to be kept for that use....

8. That the Company do reserve to themselves, the 1/20th part of all Lands and grounds that shall be possessed by the said Colony.

9. That the Company do also reserve to themselves, the 1/20th part of all Gold-dust, Mines of Gold, Silver, or other Metalls or Minerals, to be delivered above ground free of all Charges, together with the said proportion of Pearl-fis.h.i.+ng, Wrecks, Ambergreese, precious wood, Jewels, Gems or Stones of value, that shall any ways be found in or upon the said Colony or dependancies thereof, and that the remaining 19 parts thereof do equally belong to the Company and Colony in proportion to their respective proportions of Lands in the said Colony, they always contributing in proportion to their respective interests to all Charges for discovering and working the said Mines and others....

In testimony of all which Premisses, these presents are in name, presence, and by order of the said Council General, Signed by the Company's Secretary and Sealed with the Company's Seal, At Edinburgh the eighth day of July One Thousand Six hundred and Ninty eight years.

C. WHY THE COLONY FAILED (1698).

+Source.+--Bishop Burnet's _History of His Own Times_, vol. iv., p.

395. (Oxford: 1833.)

... The company in Scotland, this year, set out a fleet, with a colony, on design to settle in America: the secret was better kept than could have been well expected, considering the many hands in which it was lodged; it appeared at last, that the true design had been guessed, from the first motion of it: they landed at Darien, which, by the report that they sent over, was capable of being made a strong place, with a good port. It was no wonder that the Spaniards complained loudly of this; it lay so near Porto Bello and Panama on the one side, and Carthagena on the other, that they could not think they were safe, when such a neighbour came so near the centre of their Empire in America: the King of France complained also of this, as an invasion of the Spanish dominions, and offered the court of Madrid a fleet to dislodge them. The Spaniards pressed the King hard upon this: they said, they were once possessed of that place; and though they found it too unhealthy to settle there, yet the right to it belonged still to them: so this was a breach of treaties, and a violent possession of their country. In answer to this, the Scotch pretended, that the natives of Darien were never conquered by the Spaniards, and were by consequence a free people; they said, they had purchased of them leave to possess themselves of that place, and that the Spaniards abandoned the country, because they could not reduce the natives: so the pretension of the first discovery was made void, when they went off from it, not being able to hold it; and then the natives being left to themselves, it was lawful for the Scots to treat with them: it was given out, that there was much gold in the country. Certainly, the nation was so full of hopes from this project, that they raised a fund for carrying it on, greater than, as was thought, that kingdom could stretch to; four hundred thousand pounds sterling was subscribed, and a fourth part was paid down, and afterwards, seventy thousand pounds more was brought in, and a national fury seemed to have transported the whole kingdom, upon this project.

... Our English plantations grew ... very jealous of this new colony: they feared, that the double prospect of finding gold and of robbing the Spaniards, would draw many planters from them into this new settlement; and that the buccaneers might run into them: for by the Scotch act, this place was to be made a free port; and if it was not ruined before it was well formed, they reckoned it would become a seat of piracy and another Algiers in those parts. Upon these grounds, the English nation inclined to declare against this, and the King seemed convinced, that it was an infraction of his treaties with Spain: so orders were sent, but very secretly, to the English plantations, particularly to Jamaica and the Leeward islands, to forbid all commerce with the Scots at Darien. The Spaniards made some faint attempts on them, but without success. This was a very great difficulty on the King; he saw how much he was like to be pressed on both hands, and he apprehended what ill consequences were like to follow, on his declaring himself either way.

D. INDIGNATION IN SCOTLAND (1699).

+Source.+--Bishop Burnet's _History of His Own Times_, vol. iv., p.

429. (Oxford: 1833.)

In Scotland all men were full of hopes, that their new colony should bring them home mountains of gold; the proclamations sent to Jamaica and to the other English plantations were much complained of, as acts of hostility, and a violation of the common rights of humanity; these had a great effect on them, though without these, that colony was too weak and too ill supplied, as well as too much divided within itself, to have subsisted long; those, who had first possessed themselves of it, were forced to abandon it: soon after they had gone from it, a second recruit of men and provisions was sent thither from Scotland; but one of their s.h.i.+ps unhappily took fire, in which they had the greatest stock of provisions; and so these likewise went off: and though the third reinforcement, that soon followed this, was both stronger and better furnished, yet they fell into such factions among themselves, that they were too weak to resist the Spaniards, who, feeble as they were, yet saw the necessity of attacking them: and they finding themselves unable to resist the force which was brought against them, capitulated; and with that the whole design fell to the ground, partly for want of stock and skill in those who managed it, and partly by the baseness and treachery of those whom they employed.

The conduct of the King's ministers in Scotland was much censured in the whole progress of this affair; for they had connived at it, if not encouraged it, in hopes that the design would fall of itself; but now it was not so easy to cure the universal discontent, which the miscarriage of this design, to the impoveris.h.i.+ng the whole kingdom, had raised, and which now began to spread, like a contagion, among all sorts of people.

A pet.i.tion for a present session of parliament was immediately sent about the kingdom, and was signed by many thousands: this was sent up by some of the chief of their n.o.bility, whom the King received very coldly: yet a session of parliament was granted them, to which the duke of Queensbury was sent down commissioner ... it was further given out, to raise the national disgust yet higher, that the opposition the King gave to the Scotch colony, flowed neither from a regard to the interests of England, nor to the treaties with Spain, but from a care of the Dutch, who from Curasoe[12] drove a coasting trade, among the Spanish plantations, with great advantage; which, they said, the Scotch colony, if once well settled, would draw wholly from them.... In the session of parliament it was carried by a vote, to make the affair of Darien a national concern: upon that, the session was for some time discontinued.

When the news of the total abandoning of Darien was brought over, it cannot be well expressed into how bad a temper this cast the body of that people: they had now lost almost two hundred thousand pounds sterling upon this project, besides all the imaginary treasure they had promised themselves from it: so the nation was raised into a sort of a fury upon it, and in the first heat of that, a remonstrance was sent about the kingdom for hands, representing to the King, the necessity for a present sitting of the parliament, which was drawn in so high a strain, as if they had resolved to pursue the effects of it by an armed force. It was signed by a great majority of the members of parliament; and the ferment in men's spirits was raised so high, that few thought it could have been long curbed, without breaking forth into great extremities.

FOOTNOTES:

[12] Curacoa.