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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 The Parliament of Scotland ( sco, Pairlament o Scotland; gd, Pàrlamaid na h-Alba) was the legislature of the Kingdom of Scotland from the 13th century until 1707. The parliament evolved during the early 13th century from the king's council o ...
in 1695. The Act granted the Company a monopoly of Scottish trade to
India India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the List of countries and dependencies by area, seventh-largest country by area, the List of countries and dependencies by population, second-most populous ...
,
Africa Africa is the world's second-largest and second-most populous continent, after Asia in both cases. At about 30.3 million km2 (11.7 million square miles) including adjacent islands, it covers 6% of Earth's total surface area ...
and the
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, extraordinary sovereign rights and 21 years of exemptions from taxation. Financial and political troubles plagued its early years. The court of directors was divided between those residing and meeting in Edinburgh and those in London, amongst whom were both Scots and English. They were also divided by business intentions; some intended to trade in India and on the African coast, as an effective competitor to the English
East India Company The East India Company (EIC) was an English, and later British, joint-stock company founded in 1600 and dissolved in 1874. It was formed to trade in the Indian Ocean region, initially with the East Indies (the Indian subcontinent and Sou ...
, while others were drawn to William Paterson's Darien scheme, which ultimately prevailed. In July 1698 the company launched its first expedition, led by Paterson, who hoped to establish a colony in Darien (on the Isthmus of Panama), which could then be used as a trading point between
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and the
Far East The ''Far East'' was a European term to refer to the geographical regions that includes East and Southeast Asia as well as the Russian Far East to a lesser extent. South Asia is sometimes also included for economic and cultural reasons. The t ...
. 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. In 1700–01 the Company sent further expeditions to Java and China, but suffered shipwrecks at
Malacca Malacca ( ms, Melaka) is a States and federal territories of Malaysia, state in Malaysia located in the southern region of the Malay Peninsula, next to the Strait of Malacca. Its capital is Malacca City, dubbed the Historic City, which has bee ...
and seizure of cargo by pirates at
Madagascar Madagascar (; mg, Madagasikara, ), officially the Republic of Madagascar ( mg, Repoblikan'i Madagasikara, links=no, ; french: République de Madagascar), is an island country in the Indian Ocean, approximately off the coast of East Afric ...
.


Founding

On 26 June 1695 the
Parliament of Scotland The Parliament of Scotland ( sco, Pairlament o Scotland; gd, Pàrlamaid na h-Alba) was the legislature of the Kingdom of Scotland from the 13th century until 1707. The parliament evolved during the early 13th century from the king's council o ...
passed the Act for a company trading to Africa and the Indies, establishing the Company of Scotland trading to Africa and the Indies. The subscription book of the Company of Scotland was opened in
Edinburgh Edinburgh ( ; gd, Dùn Èideann ) is the capital city of Scotland and one of its 32 Council areas of Scotland, council areas. Historically part of the county of Midlothian (interchangeably Edinburghshire before 1921), it is located in Lothian ...
on 26 February 1696, inviting investments from a minimum of £100 up to a maximum of £3,000. Such was the popularity of the scheme that on the first day alone 69 subscriptions were taken, worth £50,400. A second book was open in
Glasgow Glasgow ( ; sco, Glesca or ; gd, Glaschu ) is the most populous city in Scotland and the fourth-most populous city in the United Kingdom, as well as being the 27th largest city by population in Europe. In 2020, it had an estimated popu ...
between 5 March and 22 April. Although attempts to raise funds in London, Hamburg and Amsterdam had been blocked, by the beginning of August 1696 the full target of £400,000 sterling had been reached. When the Company of Scotland was first formed, it was managed by its promoters, whose key task was to encourage subscriptions to the Company. Once the subscription target of £400,000 sterling had been reached, however, the Company required a more formal management structure. On 3 April 1696 a general meeting of subscribers elected a committee of twenty from their number to work with the promoters to establish rules and a constitution. By the middle of the month they had agreed that the Company would be managed by a Court of Directors and a Council General. The Court of Directors was to be an elected body with a maximum of fifty members, with each £1,000 of stock entitling its holder to one vote in the election. Twenty-five members would be elected by the subscribers, with up to a further twenty-five being elected by the first twenty-five. Subscribers with a holding of £1,000 or more could stand for election. A different director was to act as president of the Court at each meeting. The first Court of twenty-five directors was elected by shareholders on 12 May 1696. Candidates for election had to own at least £1,000 of company stock and so a limited number of shareholders, 119 out of a total of 1,320 (1,267 individuals and 53 institutions), were eligible to become directors. The Court's directors came from across Scotland's wealthy classes, comprising two nobles, eight merchants and 15 lairds. Shortly afterwards, the first twenty-five directors appointed William Paterson and three others as additional directors. From July 1696 the Court of Directors met in the Company's offices in Mylne Square on Edinburgh's High Street. The Council General was to be a larger body than the Court of Directors, comprising both the directors themselves and representatives of the remaining subscribers, with one representative for each £10,000 of stock. Whilst the Court of Directors was responsible for the day-to-day running of the Company, the Council General was convened to discuss major decisions, such as capital-raising, the election of future directors and the payment of dividends. The Council General was only convened as and when there were matters to discuss, and therefore meetings were not held at regular intervals.


Consequences of failure

All told, the venture, dubbed the Darien Scheme, drained Scotland of an estimated quarter of its liquid assets and played a key role in forcing the country to the 1707 Act of Union which united the Kingdoms of Scotland and
England England is a country that is part of the United Kingdom. It shares land borders with Wales to its west and Scotland to its north. The Irish Sea lies northwest and the Celtic Sea to the southwest. It is separated from continental Europe ...
. By 1707, the Company's debt was over £14,000. The new joint government, in a political bargain, agreed to cover the costs of winding up the Company of Scotland, in addition to compensate for servicing the English national debt and higher taxes for Scotland.


Ships

* ''Rising Sun'' * ''Saint Andrew'' (1697) (a 56-gun, 350 ton
East Indiaman East Indiaman was a general name for any sailing ship operating under charter or licence to any of the East India trading companies of the major European trading powers of the 17th through the 19th centuries. The term is used to refer to vesse ...
built in Lübeck) * ''Caledonia'' (1697) (a 56-gun, 350 ton
East Indiaman East Indiaman was a general name for any sailing ship operating under charter or licence to any of the East India trading companies of the major European trading powers of the 17th through the 19th centuries. The term is used to refer to vesse ...
built in Lübeck) * ''Dolphin'' (originally a French
snow Snow comprises individual ice crystals that grow while suspended in the atmosphere—usually within clouds—and then fall, accumulating on the ground where they undergo further changes. It consists of frozen crystalline water throughou ...
, the ''Royal Louis'', bought by James Gibson in
Amsterdam Amsterdam ( , , , lit. ''The Dam on the River Amstel'') is the capital and most populous city of the Netherlands, with The Hague being the seat of government. It has a population of 907,976 within the city proper, 1,558,755 in the urban ar ...
) * ''Endeavour'' (a
pink Pink is the color of a namesake flower that is a pale tint of red. It was first used as a color name in the late 17th century. According to surveys in Europe and the United States, pink is the color most often associated with charm, politeness, ...
bought by Dr. John Munro in
Newcastle upon Tyne Newcastle upon Tyne ( RP: , ), or simply Newcastle, is a city and metropolitan borough in Tyne and Wear, England. The city is located on the River Tyne's northern bank and forms the largest part of the Tyneside built-up area. Newcastle is ...
) * ''Unicorn'' (a 46-gun merchant vessel, originally named the ''Saint Francis'', bought by James Gibson in
Amsterdam Amsterdam ( , , , lit. ''The Dam on the River Amstel'') is the capital and most populous city of the Netherlands, with The Hague being the seat of government. It has a population of 907,976 within the city proper, 1,558,755 in the urban ar ...
)


Original signators and major shareholders, May 1695

Note: * James Balfour of Edinburgh (later styled "of Pilrig") * Robert Blackwood of Pitreavie * Sir Robert Chiesley of Bonnington, Lord Provost of Edinburgh * James Chiesley, brother of the above, Scottish merchant in London * George Clerk,
bailie A bailie or baillie is a civic officer in the local government of Scotland. The position arose in the burghs, where bailies formerly held a post similar to that of an alderman or magistrate (see bailiff). Baillies appointed the high constables ...
of Edinburgh *
Adam Cockburn, Lord Ormiston Adam Cockburn, Laird of Ormiston, Lord Ormiston (1656 – 16 April 1735), was a Scottish administrator, politician and judge. He served as Shire Commissioner, Commissioner for Haddington Constabulary in the Parliament of Scotland, parliaments of ...
* John Corse, sugar merchant in Glasgow, brother of Robert Corse * Thomas Coutts, Scottish merchant in London * Joseph Cowan, Scottish merchant in London * Thomas Deans * James Foulis of Colinton * Hugh Fraser, Scottish merchant in London * John Hamilton, Lord Belhaven * Sir John Maxwell of Nether Pollok *
Francis Montgomerie Francis Montgomerie (1645–c.1728) of Giffen Castle, Giffen, Ayr was a Scottish politician who sat in the Parliament of Scotland from 1689 to 1707 and in the British House of Commons from 1707 to 1710 . Life Montgomerie was the second son ...
of Giffen * David Nairn * David Ovedo of London * William Paterson, Scottish banker in London * Walter Stewart, Scottish merchant in London * John Swinton of Swinton All were Scots by birth except John Smith, who was Lord of the Treasury for the English parliament.


Court of Directors, May 1696

*William Arbuckle - Glasgow merchant * George Baillie of Jerviswood -
Commissioner A commissioner (commonly abbreviated as Comm'r) is, in principle, a member of a commission or an individual who has been given a commission (official charge or authority to do something). In practice, the title of commissioner has evolved to in ...
for
Berwickshire Berwickshire ( gd, Siorrachd Bhearaig) is a historic county, registration county and lieutenancy area in south-eastern Scotland, on the English border. Berwickshire County Council existed from 1890 until 1975, when the area became part of th ...
*James Balfour - Edinburgh merchant * John Hamilton, 2nd Lord Belhaven and Stenton *Robert Blackwood - Edinburgh merchant *James Campbell - London merchant *George Clark - Edinburgh merchant *
Adam Cockburn, Lord Ormiston Adam Cockburn, Laird of Ormiston, Lord Ormiston (1656 – 16 April 1735), was a Scottish administrator, politician and judge. He served as Shire Commissioner, Commissioner for Haddington Constabulary in the Parliament of Scotland, parliaments of ...
- Lord Justice Clerk *John Corse - Glasgow merchant * Hew Dalrymple -
Commissioner A commissioner (commonly abbreviated as Comm'r) is, in principle, a member of a commission or an individual who has been given a commission (official charge or authority to do something). In practice, the title of commissioner has evolved to in ...
for New Galloway *James Drummond of Newton *Lieutenant Colonel John Erskine *John Haldane of Gleneagles *William Hay of Drumelzier * Sir John Home of Blackadder -
Commissioner A commissioner (commonly abbreviated as Comm'r) is, in principle, a member of a commission or an individual who has been given a commission (official charge or authority to do something). In practice, the title of commissioner has evolved to in ...
for
Berwickshire Berwickshire ( gd, Siorrachd Bhearaig) is a historic county, registration county and lieutenancy area in south-eastern Scotland, on the English border. Berwickshire County Council existed from 1890 until 1975, when the area became part of th ...
*Daniel Lodge - London merchant *James McLurg of Vogrie - Edinburgh merchant * Sir John Maxwell of Pollock, 1st Baronet -
Commissioner A commissioner (commonly abbreviated as Comm'r) is, in principle, a member of a commission or an individual who has been given a commission (official charge or authority to do something). In practice, the title of commissioner has evolved to in ...
for Renfrewshire *
Francis Montgomerie Francis Montgomerie (1645–c.1728) of Giffen Castle, Giffen, Ayr was a Scottish politician who sat in the Parliament of Scotland from 1689 to 1707 and in the British House of Commons from 1707 to 1710 . Life Montgomerie was the second son ...
of Giffen -
Commissioner A commissioner (commonly abbreviated as Comm'r) is, in principle, a member of a commission or an individual who has been given a commission (official charge or authority to do something). In practice, the title of commissioner has evolved to in ...
for
Ayrshire Ayrshire ( gd, Siorrachd Inbhir Àir, ) is a historic county and registration county in south-west Scotland, located on the shores of the Firth of Clyde. Its principal towns include Ayr, Kilmarnock and Irvine and it borders the counties of ...
*Hugh Montgomery - Glasgow merchant *Sir Archibald Muir of Thornton -
Commissioner A commissioner (commonly abbreviated as Comm'r) is, in principle, a member of a commission or an individual who has been given a commission (official charge or authority to do something). In practice, the title of commissioner has evolved to in ...
for Cupar * William Paterson - London banker *James Pringle of Torwoodlee -
Commissioner A commissioner (commonly abbreviated as Comm'r) is, in principle, a member of a commission or an individual who has been given a commission (official charge or authority to do something). In practice, the title of commissioner has evolved to in ...
for Selkirkshire *
David Ruthven, 2nd Lord Ruthven of Freeland David Ruthven, 2nd Lord Ruthven of Freeland (died April 1701) was a Scottish politician. The son of Thomas Ruthven, 1st Lord Ruthven of Freeland by his wife Isabel Balfour, he succeeded his father as Lord Ruthven of Freeland in May 1671, and fro ...
* Sir Francis Scott of Thirlestane -
Commissioner A commissioner (commonly abbreviated as Comm'r) is, in principle, a member of a commission or an individual who has been given a commission (official charge or authority to do something). In practice, the title of commissioner has evolved to in ...
for Selkirkshire (father of William Scott of Thirlestane) * Sir Patrick Scott of Ancrum * Sir John Shaw, 2nd Baronet of Greenock *James Smyth - London merchant * Sir John Swinton of that Ilk -
Commissioner A commissioner (commonly abbreviated as Comm'r) is, in principle, a member of a commission or an individual who has been given a commission (official charge or authority to do something). In practice, the title of commissioner has evolved to in ...
for
Berwickshire Berwickshire ( gd, Siorrachd Bhearaig) is a historic county, registration county and lieutenancy area in south-eastern Scotland, on the English border. Berwickshire County Council existed from 1890 until 1975, when the area became part of th ...
*Robert Watson - Edinburgh merchant *William Wooddrop - Glasgow merchant


See also

*
List of trading companies A trading company is a business that works with different kinds of products sold for consumer, business purposes. In contemporary times, trading companies buy a specialized range of products, shopkeeper them, and coordinate delivery of products t ...


Notes and references


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.


External links


Official Records at the Royal Bank of Scotland
{{Webarchive, url=https://web.archive.org/web/20061019190728/http://www.rbs.com/about03.asp?id=ABOUT_US%2FOUR_HERITAGE%2FOUR_ARCHIVES%2FONLINE_ARCHIVE_GUIDE%2FTHE_ARCHIVE_GUIDE%2FCOMPANY_OF_SCOTLAND_TRADING , date=2006-10-19 Former Scottish colonies Defunct companies of Scotland Chartered companies 1695 establishments in Scotland Political scandals in Scotland Companies established in 1695 Trading companies of Scotland Trade in Scotland