William Paterson (banker)

William Paterson
William Paterson
Born	Template:Birth date; Tinwald, Dumfriesshire, Scotland
Died	22 January 1719 (aged 60)
Occupation(s)	Entrepreneur, financier, merchant
Known for	Founding figure of the Bank of England; advocate of the Darien scheme; supporter of the Union between Scotland and England

Adapted from the English Wikipedia article William Paterson (banker), available under CC BY-SA 4.0Updated 11 August 2025

William Paterson (April 1658 – 22 January 1719) was a Scottish entrepreneur and financier, recognized as a founding figure of the Bank of England and a principal advocate behind the unsuccessful Darien scheme. He later became a supporter of political union with England.

Early years

Originating from Tinwald, Dumfriesshire, Scotland, Paterson resided there until he was seventeen before briefly relocating to Bristol and subsequently to the Bahamas. While in the West Indies, he conceived the idea for the Darien scheme—a settlement on the Isthmus of Panama intended to serve as a trading hub with the Far East. Paterson established himself as a shrewd merchant, reportedly gaining valuable knowledge from the English privateer William Dampier.

Professional life

During the mid-1680s, Paterson pursued official endorsement for the Darien project, initially seeking support from England under James II and then approaching authorities in the Holy Roman Empire, Dutch Republic, and Brandenburg, all without success. Settling in London by 1687, he accumulated wealth through international commerce, predominantly involving the West Indies slave trade, operating within the Merchant Taylors' Company. Additionally, he co-established the Hampstead Water Company, which provided water services to North London until the late 1800s.

In 1694, Paterson played a pivotal role in founding the Bank of England. He initially proposed lending £1.2 million to the English government in return for forming The Governor and Company of the Bank of England with privileges such as issuing banknotes. The Royal Charter was granted on 27 July 1694, appointing Paterson as a director. Nevertheless, disputes led to his resignation from the board in 1695 so he could dedicate efforts to launching the Darien colony in 1698—a venture that ultimately ended in failure.

Darien scheme

Relocating to Edinburgh, Paterson persuaded the Scottish government to initiate the Darien scheme, an unsuccessful endeavor to create a Scottish colonial presence in modern-day Panama. He joined the expedition in 1698; during this time, his wife Hannah Kemp and their child passed away, and he suffered severe illness. After returning to Scotland in December 1699, Paterson became an influential proponent of the Union between Scotland and England, endorsing the Act of Union 1707. He spent his final years residing in Westminster, passing away in January 1719. His place of burial remains uncertain; many—including officials from the Bank of England—believe he was interred at Sweetheart Abbey, New Abbey, Dumfries and Galloway.

Publications

Proposals and Reasons for Constituting a Council of Trade (1701), advocating for a Scottish council designed to boost the Scottish economy and commerce by lowering export duties.
A Proposal to plant a Colony in Darién to protect the Indians against Spain, and to open the Trade of South America to all Nations (1701), elaborating on the Darien scheme with aims to encourage free trade throughout Central and South America.
Wednesday Club Dialogues upon the Union (1706), presenting dialogues supporting equitable taxation, unrestricted trade, and proportional parliamentary representation as essential elements for a successful union with England.

In literature and theatre

William Paterson serves as the protagonist in Eliot Warburton's 1852 novel Darien, or, The Merchant Prince. He is also featured in Douglas Galbraith's 2000 work The Rising Sun and appears within Alistair Beaton's 2010 theatrical production Caledonia.

References

External links