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William Paterson (April 1658 - 22 January 1719) was aScottishtrader andbanker. He was a founding member of theBank of England and was one of the main proponents of the catastrophicDarien scheme. Later he became an advocate of union with England.
William Paterson was born in his parents' farmhouse atTinwald in Dumfriesshire, Scotland, and lived with them until he was seventeen, when he emigrated first (briefly) toBristol and then to theBahamas, although accounts differ as to the duration of his stays.[1] During his time in theWest Indies he first conceived the idea of theDarién scheme, his plan to create a colony on the isthmus ofPanama, facilitating trade with theFar East.[1] While in the West Indies, it is said that he acted as a merchant, developing a reputation for business acumen and dealings with local buccaneers.[1] Walter Herries claimed that the English privateerWilliam Dampier shared his knowledge of Darién with Paterson.[2]
Paterson returned toEurope by the middle of the 1680s, and attempted to convince theEnglish government underJames II to undertake the Darién scheme.[1] When they refused, he tried again to persuade the governments of theHoly Roman Empire, theDutch Republic andBradenburg to establish a colony in Panama, but failed in each case.[2]
Paterson then went to London in 1687 and made his fortune with foreign trade (primarily through theslave trade with theWest Indies) in theMerchant Taylors' Company.[1] He also helped to found a company for supplying water to North London from the Hampstead Hills, known as the Hampstead Water Company which existed until the late 19th century.[1]
In 1694, he co-founded theBank of England.[1] It was said that the project originated with him in 1691, as described in his pamphletA Brief Account of the Intended Bank of England, to act as the English government's banker. He proposed a loan of £1.2m to the government; in return the subscribers would be incorporated as The Governor and Company of the Bank of England with banking privileges including the issue of notes. The Royal Charter was granted on 27 July 1694. On the foundation of the bank in 1694 he became a director. In 1695, owing to a disagreement with his colleagues, he withdrew from the board and devoted himself to the colony of Darien, unsuccessfully planted in 1698.[1]
Paterson relocated toEdinburgh, where he was able to convince theScottish government to undertake the Darién scheme, a failed attempt to found an independent Scottish Empire in what is today Panama. Paterson personally accompanied the disastrous Scottish expedition to Panama in 1698, where his wife, Hannah Kemp, and their child died, while he himself became seriously ill.[3][4] On his return to Scotland in December 1699, he became instrumental in the movement for theUnion of Scotland and England, culminating in his support of theAct of Union 1707. He spent the last years of his life inWestminster, and died in January 1719. A mystery still surrounds the burial site of Paterson. Many (including officials at the Bank of England), believe he is buried inSweetheart Abbey,New Abbey,Dumfries and Galloway.
William Paterson is the central character inEliot Warburton's novel,Darien, or, The Merchant Prince (1852). He also features inDouglas Galbraith's novel,The Rising Sun (2000), andAlistair Beaton's play,Caledonia (2010).[5]
