In 1698 a group of Scottish businessmen established a colony in Central America, on the Isthmus of Panama. The ‘Darien Project’, named after its location on the Gulf of Darien, turned out to be a disaster – fatally so, for most of the men and women who went out there between 1698 and 1700, but a financial disaster back in Scotland as well.
A bit like the South Sea Bubble, which caused such embarrassment for investors in England a few years later, the Darien scheme had involved a lot of lowland merchants and members of the political class, and with the collapse of their investment, they faced ruin. The term ‘sovereign debt’ hadn’t been invented, but effectively, so did the Scottish nation itself.
Since 1603, when James VI of Scotland became James I of England with the death of his cousin Elizabeth Tudor, the same Protestant branch of the Stuart/Stewart dynasty had ruled both Kingdoms, but they did not yet form a United Kingdom. Continue reading