n for twenty-one years from
all taxes and customs, and with all such other privileges, as should be
found necessary for establishing or encouraging such projects. But here
was a necessity of procuring letters patents, which they knew the credit
that the East India company had at court would certainly render
ineffectual. So they were now in treaty for a new act, which should free
them from that difficulty.

There was one Paterson, a man of no education, but of great notions;
which, as was generally said, he had learned from the Buccaneers, with
whom he had consorted for some time. He had considered a place in
Darien, where he thought a good settlement might be made, with another
over against it, in the South Sea; and by two settlements there, he
fancied a great trade might be opened both for the East and West Indies;
and that the Spaniards in the neighbourhood might be kept in great
subjection to them; so he made the merchants believe, that he had a
great secret, which he did not think fit yet to discover, and reserved
to a fitter opportunity; only he desired, that the West Indies might be
named in any new act that should be offered to the parliament: he made
them in general understand, that he knew of a country, not possessed by
Spaniards, where there were rich mines, and gold in abundance. While
these matters were in treaty, the time of the King's giving the
instructions to his commissioner for the parliament came on; and it had
been a thing of course, to give a general instruction, to pass all bills
for the encouragement of trade. Johnstoun told the King, that he heard
there was a secret management among the merchants for an act in
Scotland, under which the East India trade might be set up; so he
proposed, and drew an instruction, impowering the commissioner to pass
any bill, promising letters patents for encouraging of trade, yet
limited, so that it should not interfere with the trade of England: when
they went down to Scotland, the King's commissioner either did not
consider this, or had no regard to it; for he gave the royal assent to
an act, that gave the undertakers, either of the East India or West
India trade, all possible privileges, with exemption of twenty-one years
from all impositions: and the act directed letters patents to be passed
under the great seal, without any further warrant for them: when this
was printed, it gave a great alarm in England, more particularly to the
East India company; for many of