to leave the company altogether, or to go out in the service of the directors, appropriating a large portion of his salary for their benefit. But his offer was not accepted. He accompanied the expedition in 1698; but as the management was entrusted to seven councillors, who quarrelled amongst themselves, he had little influence on the conduct of affairs. He was seriously ill in Darien, and on the voyage to New York after the colony was abandoned. ‘Trouble of mind’ deprived him temporarily of his reason. He returned to Edinburgh on 5 Dec. 1699, and drew up a report, dated the 19th, to the directors of the company, who appointed a committee to confer with him. Far from abandoning his design, he tried repeatedly to revive it in a form which would enlist the support of England.
On his arrival in London Paterson was kindly received by William III (April 1701), with whom he had frequent private conferences on public credit and state affairs, and at whose request he put his proposals into writing. Paterson suggested (1) the provision of interest for the existing national debts; (2) the regulation of the treasury and the exchequer, so as to leave no room for fraud; (3) strict inquiry from time to time into the conduct of all concerned in the revenue; (4) a commission of inquiry into the state and the management of the national debt; (5) a West India expedition, on the ground that ‘to secure the Spanish monarchy from France … it was more practicable to make Spain and the other dominions in Europe follow the fate of the West Indies, than to make the West Indies, if once in the power of France, follow the fate of Spain;’ (6) union with Scotland, than which, he convinced William, ‘nothing could tend more … to render this island great and considerable’ (Paterson's letter to Godolphin, 12 Dec. 1709; An Enquiry … By the Wednesday's Club in Friday Street, 1717, p. 84). After the death of William III he renewed his proposals, with the addition of others, to Godolphin, at the request of that minister. From this time until his death Paterson was frequently consulted by ministers, and employed by them to devise means of raising public supplies. From 1701 he urged upon the government the financial measures which became the basis of ‘Walpole's Sinking Fund’ and the great scheme of 1717 for the consolidation and conversion of the national debt. In 1703 he proposed, if indeed he did not actually establish, a public library of commerce and finance, for ‘to this necessary and it's hoped now rising study of trade there is requisite not only as complete a collection as possible of all books, pamphlets, and schemes relating to trade … ancient or modern, but likewise of the best histories, voyages, and accounts of the states, laws, and customs of countries, that from them it may be more clearly … understood how … wars, conquests … plenty, want, good or bad management, or influence of government … have more immediately affected the rise and decline of the industry of a people’ (‘A Catalogue of Books … collected by William Paterson, Esq.,’ Harl. MS. 4684, Brit. Mus.) In 1705 he engaged in a controversy with John Law (1671–1729) [q. v.], and prevented the adoption of an inconvertible paper currency in Scotland.
Paterson not only published an able pamphlet in favour of the union of England and Scotland, but he had a ‘great share’ in framing the articles of the treaty relating to trade and finance. He was also employed, with Bower and Gregory, in the calculation of the equivalent, for which he received 200l. He went to Scotland in 1706, and remained there until the end of the negotiations, waiting upon ministers, explaining the treaty, and smoothing away difficulties. One of the last acts of the Scottish parliament (25 March 1707) was to recommend him to Queen Anne ‘for his good service’ (Defoe, History of the Union, p. 525). Though the people of Dumfries had suffered much from the failure of the Darien scheme, and had been violently opposed to the union, they returned Paterson, with William Johnstoun, to the first united parliament. But the house decided that it was a double return, and Paterson was unseated (Luttrell, Brief Relation, vi. 378). In the accounts of the Scottish Africa Company's debt to be provided for out of the equivalent, Paterson's claims had been omitted. He repeatedly urged his claims, without success. In 1713 the commons reported in his favour, and passed a bill, which was thrown out by the lords, appropriating to him the sum of 18,000l. He did not receive the money until 1715, when a bill, supported by the king, was passed without opposition. From 1703 until his death he resided in Queen Square, Westminster, where he was one of the higher ratepayers. He appears to have been in reduced circumstances until he received the Darien indemnity, and is said to have taught mathematics and navigation. He was paid, however, small sums for services in the management of the South Sea Company, and he retained an interest in the Hampstead Water Company. He died in January 1719. His will was proved at Doctors' Commons on 22 Jan. 1719 (O.S.)
