William Paterson (banker) facts for kids
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Sir William Paterson (born April 1658 – died January 22, 1719) was a Scottish trader and banker. He is famous for starting the Bank of England. He was also a key person behind the Darien scheme, a big plan that did not work out well. Later in his life, he supported Scotland joining with England.
William Paterson's Life
Early Years
William Paterson was born in a farmhouse in Tinwald, Scotland. He lived there with his family until he was about 17 years old. Then, he moved away. He first went to Bristol for a short time. After that, he traveled to the Bahamas in the West Indies.
While he was in the West Indies, he got the idea for the Darién scheme. This was his plan to create a Scottish colony in Panama. He hoped this colony would make it easier to trade with countries in the Far East. People say he was a good businessman during this time. He even dealt with some sailors who sometimes acted like pirates.
His Career
Paterson came back to Europe in the mid-1680s. He tried to get the English government to support his Darien plan. But they said no. He then tried to convince the governments of the Holy Roman Empire and the Dutch Republic. They also turned him down.
In 1687, Paterson moved to London. He became very wealthy through international trade, especially with the West Indies. He also helped start a company called the Hampstead Water Company. This company supplied water to North London.
In 1694, William Paterson helped create the Bank of England. He first thought of the idea in 1691. He wrote a paper about it called A Brief Account of the Intended Bank of England. He suggested that the bank would lend a lot of money to the government. In return, the people who put money into the bank would get special banking rights. These rights included being able to print money. The official permission for the bank was given on July 27, 1694. Paterson became one of the bank's directors when it started. However, in 1695, he left the board because he disagreed with his colleagues. After that, he focused on his Darien colony idea.
The Darien Scheme
Paterson moved to Edinburgh, Scotland. There, he managed to convince the Scottish government leaders to try the Darien scheme. This was a plan to build an independent Scottish trading empire in what is now Panama.
Paterson himself went on the Scottish trip to Panama in 1698. It was a very difficult journey. Sadly, his wife and child died there. He also became very sick. When he returned to Scotland in December 1699, he played a big part in helping Scotland and England join together. This led to the Act of Union 1707. He spent his last years living in Westminster. He passed away in January 1719. No one is completely sure where William Paterson is buried. Many people, including those at the Bank of England, believe he is buried at Sweetheart Abbey in New Abbey, Scotland.
Related Topics
- Acts of Union 1707
- Daniel Defoe, a famous writer
- John Holland, who started the Bank of Scotland
- Lionel Wafer, a sailor who advised Paterson on the Darien Scheme
