CHAPTER I
BY WAY OF BEGINNING
It was not just an ordinary sort of name, but one of those which made you think "thereby hangs a tale." In this case the thought goes to the mark, and the tale in question will be told after a fashion in the following pages.
At the outset a quick glance back to times long past is necessary in order to a fair start, and without a fair start it were hardly worth going ahead.
As the seventeenth century drew to its close there came into prominence in England a remarkable Scotsman named William Paterson, among whose notable achievements was having a large share in the founding of the Bank of England, which subsequently grew to be the greatest monetary institution in the world.
He was a member of the board of directors at the opening of the bank, but appears to have sold out not long after, and with his money in hand to have looked about him for some way of investing it that would be for the public good.
Now, these were the days of vexatious monopolies and irritating restrictions in commerce. The trade of Britain with the distant parts of the globe was divided between two great grasping corporations – the East India Company and the African Company – which, although they were at deadly enmity with each other, heartily co-operated in crushing every free-trader who dared to intrude within the elastic limits of their "spheres of action."
William Paterson was an ardent free-trader, and he became inspired with the noble mission of freeing commerce from the hurtful restraints laid upon it by short-sighted selfishness. With a keenness of instinct that makes it easy to understand his previous success, he surveyed the then known world and put his finger upon the spot best suited for the carrying out of his beneficent design.
The Isthmus of Panama, or Darien, is, beyond a doubt, one of the most interesting, as it is certain yet to be one of the most important bits of terra firma on this round globe. The connecting-link between the continents of North and South America, it is also the barrier dividing the Atlantic from the Pacific Oceans, and, in fact, one side of the world from the other.
From the time of its discovery and occupation by the Spaniards, it has been a matter of general belief that whoever had command of this narrow neck of land held the key to the commerce of the world. Here would naturally be concentrated the mutual trade of the Atlantic and Pacific coasts of America. Moreover, it would necessarily form an important stage in the shortest route between Europe and the Indies, as well as the innumerable islands lying far to the south of the equator.
Little wonder, then, that the Spaniards wanted to keep the isthmus to themselves, and always did their very best to make it particularly unpleasant for anybody who sought to share its advantages with them; and in fine contrast to their dog-in-the-manger policy – for they really made little use of their splendid opportunities – was the spirit in which William Paterson conceived his great Darien project, and with characteristic energy proceeded to carry it into effect. It was in the year 1695 that he obtained from the Scottish Parliament an Act for the incorporation of "the Company of Scotland trading to Africa and the Indies," which thenceforth became popularly known as "the Darien Company."
This company was granted very extensive powers, and had the imposing capital of £600,000, one-half of which, it was shrewdly stipulated, must ever be held by Scotsmen residing in their own country, thus ensuring the permanence of the national character of the undertaking.
As it turned out, however, this provision might have been omitted, for when, after the Scotch half of the stock had all been subscribed, the books were opened in London for the other half, there came such a rush of applicants for shares that it was soon all taken up. This so aroused the hostility of the two great English companies already mentioned that they actually called upon the House of Commons to assist them in crushing their Scottish rival, and the House of Commons unfortunately was weak enough to yield to the pressure brought to bear upon it.
The London subscribers to the new company were threatened with prosecution for concerting to infringe upon the rights enjoyed by the other companies, which so alarmed them that with one consent they backed out and forfeited their holdings.
With ordinary people this would have meant the collapse of the whole enterprise. Not so, however, with the sturdy Scots who were behind it. The provoking action of their English cousins only served to arouse the national spirit. Their expected allies had failed them. Well, what if they had? Scotland was not to be daunted. She would go on alone, and reap for herself all the glory and the more substantial rewards of the great undertaking. Accordingly another hundred thousand pounds of stock was subscribed by this thrifty, determined people, and so, with a capital only two-thirds as big as had been counted upon, the Darien Company proceeded to carry out the chief purpose of its formation.
