Paterson, WILLIAM, the greatest commercial schemer of the 17th century, was, like Law, a Scotchman, and was born at Skipshire farm in Tinwald parish, Dumfriesshire, in April 1658. His early career is obscure, but it appears that he carried a pack through England, settled some time at Bristol, next lived in the Bahamas, whether as preacher or baccaneer, and here matured his famous Darien Scheme. Returning to Europe, he promoted his scheme in London, Hamburg, Amsterdam, and Berlin, made a fortune by commerce in London, founded the Hampstead Water Company in 1690, and projected the Bank of England, and was one of its first directors in 1694. Paterson next went to Edinburgh, and soon talked the whole nation into his Darien Scheme. He sailed with the expedition in a private capacity, shared all its troubles, and returned with its survivors a broken man, in December 1699. But his energy remained unabated. When in 1701 William resolved to carry the contest with Louis XIV. into the heart of Spanish America, Paterson was taken into the king's confidence, and but for his death might have seen his dreams of Darien realised. He had a considerable share in promoting the union of Scotland with England, and was elected to the first united parliament by the Dumfries burghs. By a special act of parliament in 1715, he was awarded £18,241 as indemnity for his losses by the Darien Scheme; but he did not live long to enjoy it, for he died on 22d January 1719. Paterson was no mere dreamer, but a far-seeing financier, and a free-trader before free-trade times.
See DARIEN SCHEME; the Life of Paterson, by S. Bannister (1858), editor of his Works (3 vols. 1859); and W. Pagan's Birthplace and Parentage of W. Paterson (Edin. 1865).