The Darien Scheme Panama, 1698-1700
What was it?
This ambitious 17th century venture aimed to establish a Scottish colony in the Isthmus of Darien, modern day Panama. It was argued that its position would make Scotland the broker between Atlantic and Pacific trade, and supremely wealthy as an alternative route to the dangerous voyage around South America’s Cape Horn.
The so-called ‘Darien Scheme’ was proposed by William Paterson, a Scot who had made a name for himself as one of the founders of the Bank of England in 1694. His plan quickly gained investment from English and Dutch financiers, but they were both forced to pull out when the English Parliament withdrew its support for the venture, under pressure from the rival East India Company.
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