Clayton-Bulwer treaty guaranteed the neutrality of this very region—Central America, the ambition of America to annex this important territory at this very moment is impeding and endangering that great scheme of transit from the Atlantic to the Pacific which Paterson was the first to propose.
The very same obstacles existed in Paterson's days, though in the hands of other powers, and this it was which defeated his magnificent object. The unsound portion of Paterson's project was the not sufficiently taking into account these political obstacles. Spain possessed, or rather claimed to possess, the isthmus of Darien. Louis of France was contemplating the seizure of Spain and all its American territories. William was under treaty of peace to both Spain and Louis. It was impossible, therefore, to obtain possession of the isthmus of Darien without producing a fresh European war. To attempt it by treaty was useless, for Spain would never consent to permit England, of which she was in the highest degree jealous, thus to establish a great mercantile colony in the midst of her most valuable Transatlantic colonies, from which she was annually drawing her cargoes of gold and other valuable products. Louis of France, who was resolved to succeed to the Spanish empire, was as little likely to permit such a thing. To obtain possession of Darien, then, could only be done by invasion, and that invasion must produce immediate war, for which William was not prepared.
But the scheme was got up ostensibly to trade to the East and West Indies. There was no mention of Panama; and its prospects were so fair and unobjectionable that they immediately seized on the imaginations of both the English and Scotch public. Paterson was a London merchant, in high repute for his origination of the Bank of England. He had spent ten years in the West Indies, and, as it is supposed, in Panama. At all events he had the reputation of being intimately acquainted with those regions and their resources. His proposals of the company were eagerly accepted both in London and Edinburgh. Though it was originally proposed to raise only three hundred and sixty thousand pounds as the original stock for both countries, three hundred thousand pounds were subscribed in London alone in a few days. But this remarkable success raised all the vindictive feelings of companies whose interests this new league appeared likely to affect. The East India Companies, new and old, immediately were on the alert, and raised such a feeling in the house of commons, that it resolved to impeach Paterson, and the bankers Coutts and Cohen, for the commission of an illegal act in daring to levy money in England without the sanction of the English legislature. In the meantime a subscription list had been opened at Hamburg, and by this the Dutch East India Company was equally alarmed, and both the influence of the Dutch and of the English companies was made to bear on the king. William, who had been too much absorbed by his warfare with Louis to perceive the hostile feelings which ho was exciting by passing the Scottish act, now made haste to condemn his own precipitancy. He complained that he had been deceived by the Scottish government, and at once gave orders to prohibit the scheme, and sent similar orders to his consul at Hamburg to forbid the subscription there. The senate of the city of Hamburg was induced to prohibit the canvassing of the company's agents; and the English subscribers, alarmed at the menaces of the king and commons, immediately withdrew their names. Nor were these all the enemies of this scheme — enemies, the numbers, importance, and virulence of which of themselves testified sufficiently the real substance and weight of it. There were Scottish traders united for commerce with India by the ordinary route, and these joined vehemently in the cry. One of these, a Dr. Robert Douglas, attacked the scheme in a very able letter. In this letter we are first let into the secret that the real destination is not so much the West Indies as Darien, on the mainland. It is not, however, from Paterson having mentioned expressly Darien that Douglas declares it to be that place, but he infers it from the fact that the locality darkly hinted at by Paterson is at once near the Caribbean isles, and at the same time so situated "that it will alter the whole method of trade in Europe, and effectually ruin both the English and Dutch East Indian Companies, because it opens a shorter, safer, and more convenient way to the East Indies by the Pacific from England and Holland."
Douglas then points out that it is not nearer or more convenient than the old way to the western or Bombay coast of the Indian peninsula; that it was then a very dangerous route, because our merchant vessels on that track would have to pass the Dutch, Batavian, and Spice Island settlements, who would show the utmost hostility to such a traffic; but still more, that it was impossible, because this isthmus of Panama was the track by which Spain conveyed all her treasure from Peru to Portobello; that as to the rightful possession of the country by Spain, the city of Darien, called Santa Maria, was one of the first cities built by them on the mainland of America, as the province was the first province possessed by them.
These were sound reasons why the king would not consent to any such invasion of the territory of Spain, and why Spain was not likely to concede it by treaty. These reasons should have made Paterson and the Scotch pause. There could be no successful settlement there whilst these difficulties existed. Had the scheme been started afterwards, when Louis had seized the Spanish crown and William was again at war with him, he might have undertaken the expedition, and the most magnificent results have followed. In fact, after he had completely crushed the enterprise by his discountenance, and was again in hostility with Louis, he actually sent for Paterson and entertained the plan cordially; but it was too late; William was then hastening to his end.
Unwarned by the great outcry, the firm opposition, and insurmountable obstacles, Paterson and the Scotch went on. The Scottish people, who conceived the idea of achieving enormous wealth in the golden regions of Central America, regarded themselves as victims to the jealousy of William's favourite Dutch, to the haughty, monopolising spirit of the English, and the whole country was in a ferment. They considered themselves insulted and most perfidiously treated by the king, who had freely sanctioned the company, and now as unceremoniously disowned and trampled on it. They went on with the subscriptions, and speedily the amount rose to four hundred thousand pounds. The highest and most intelligent of the Scottish nobility, as well as the people
