On History

1. Mercantilism and Warfare: The Dual Forces Shaping Scotland's Maritime Fate

This study seeks to demonstrate how state intervention and warfare in the pursuit of mercantilist goals largely determined, intentionally and otherwise, the development of the Scottish marine and its institutions during the period 1650–1790.

Defining mercantilism. Mercantilism, though a retrospective term, describes the prevailing economic philosophy of the era, viewing national wealth (initially bullion) as finite and directly linked to political and military power. This led to protectionist policies aimed at increasing a nation's share of global wealth at rivals' expense. Adam Smith, in 1776, critiqued this "administrative technology" rather than a "science of economics."

War as policy. Warfare was an inherent instrument of mercantilist policy, with nations actively promoting measures like Navigation Acts to exclude rivals from trade and fisheries. Between 1646 and 1823, English and Scottish marines were embroiled in ten major wars, dominating trade for over a third of the period. This predatory aspect intensified as the 18th century progressed, with figures like Pitt the Elder merging "continental" and "blue water" policies to expand Britain's global ambitions.

Scotland's unique experience. As an island nation, England, with Scotland in tow, was set on a collision course with European rivals. Scotland's maritime development was profoundly shaped by these forces, often as a junior and unwilling participant. The period 1650-1790 saw Scotland's marine and institutions evolve under the constant pressure of state intervention and conflict, highlighting the interplay of economic theory and military reality.

2. Pre-Union Scotland: A Struggle for Sovereignty and Economic Survival

The diminutive size of the Scottish marine did not, however, protect it from being selected for exclusion by the London merchants and shipmasters.

Cromwellian subjugation. Scotland's entry into the mercantilist era began traumatically with Cromwell's invasion, which devastated east coast ports and severely contracted overseas trade. The Navigation Act of 1651, drafted during Scotland's military subjugation, implicitly included Scots but was soon followed by explicit exclusion. Thomas Tucker's 1656 survey revealed a truly insignificant Scottish marine, with only about 140 vessels totaling 6,400 tons.

English exclusion. The Restoration Parliament's 1660 Navigation Act explicitly re-categorized Scots as a "foreign" nation, barring them from English domestic and plantation trades. Subsequent acts in 1662-1664 further tightened this exclusion, crippling Scottish trading aspirations. Diplomatic efforts to claim exemption failed, as English vested interests prioritized their monopolies.

Limited Scottish response. Scotland's own Navigation Act (1661) and attempts to emulate the English model proved largely ineffective, only encouraging a few foreign masters to seek Scottish burgess status. The Barbary corsair threat in the Mediterranean further exposed Scotland's lack of naval power and diplomatic leverage, leaving ransoming of captured crews to costly and uncertain charity.

3. The Darien Scheme: A Catastrophic Bid for Imperial Ambition

The Company’s failure to establish a trading emporium overseas on the Darien isthmus – together with the great loss of men, ships and capital – effectively ended Scotland’s attempt at forging her own mercantile empire and system.

National frustration boils over. The Darien Scheme was born out of deep national frustration with Scotland's economic isolation and the perceived injustices of English mercantilism. The Scottish Parliament's 1694 Act for Encouraging of Forraign Trade aimed to create a Scottish merchant adventurer company to trade beyond European waters, particularly in Africa and the Indies.

English backlash and sabotage. The formation of the "Company of Scotland trading to Africa and the Indies" met fierce opposition from powerful English chartered companies. William III, dependent on the English Parliament, sanctioned a new Navigation Act in 1696 that closed loopholes and confirmed English monopolies. London subscriptions to the Scottish Company were withdrawn, and its agents struggled to acquire suitable ships abroad.

Disastrous expeditions. The two expeditions to Darien (1698 and 1699) were plagued by disease, Spanish attacks, and lack of support from English colonies, leading to immense losses of men, ships, and capital. This catastrophe embittered Scottish public opinion, fostering a sense of English treachery and highlighting Scotland's inability to project maritime power independently.

4. The Act of Union (1707): A Pragmatic Surrender for Maritime Integration

Every monarch, having two or more Kingdoms, will be obliged to prefer the Counsel and Interest of the Stronger to that of the weaker, and the greater Disparity of Power and Riches there is betwixt these Kingdoms, the greater Influence, the more powerful Nation will have on the Sovereign.

Escalating tensions. The "Annandale outrage" and the subsequent trial and execution of Captain Green in Edinburgh brought Anglo-Scottish relations to a constitutional crisis. This period of "tit-for-tat" legislation and open conflict at sea underscored the impossibility of peaceful co-existence between two nations with conflicting trading interests under one crown.

Realpolitik dictates union. Scottish Commissioners, having witnessed the nation's maritime vulnerabilities and the failure of independent colonial ventures, concluded that Scotland could not sustain its interests without England's "assistance." The alternative—allying with a rival naval power—was unthinkable for England, which prioritized state security above all else.

Maritime concessions. The Act of Union (1707) was a diplomatic solution, conceding Scottish access to colonial markets (Article IV) and redefining both marines as "British" under a unified navy (Article V). While the Scottish Admiralty lost effective power, the "equivalent" payment (Article XV) compensated for higher taxes and refinanced Scottish merchants, allowing them to participate in the broader British Empire.

5. Post-Union Customs: Imposition, Smuggling, and Administrative Chaos

The disciplining of a nation already addicted to tax avoidance was a thankless and daunting task.

Harmonization and chaos. The Union mandated the harmonization of Scottish Customs and Excise with the English system, a massive administrative undertaking. The new regime, based on the rigorous 1696 English model, replaced profit-driven "tax farmers" with salaried Crown officers. However, political expediency led to inexperienced appointments, and the Board's aversion to retaining old Scottish staff perpetuated low morale and lack of professionalism.

Smuggling's golden age. The imposition of high English import tariffs on luxury goods, coupled with the initial disparity in Scottish tariffs, fueled a massive smuggling boom. The Isle of Man became a central hub for illicit trade. A pre-Union rush to land colonial goods in Scotland to exploit tariff differentials further highlighted the scale of evasion.

Administrative struggles. The new Scottish Customs Service struggled with widespread corruption, intimidation by organized gangs, and a lack of effective enforcement tools like seagoing revenue cruisers. Despite purges and inspections, allegations of malpractice persisted, leading to the eventual re-establishment of a separate Scottish Customs Board in Edinburgh after Walpole's departure in 1742.

6. The Clyde's Ascendance: Leveraging Wartime Advantage and Colonial Trade

If it be calculated, how much sooner the voyage is made from Glasgow to the capes of Virginia, than from London, the difference will be made up in the freight, and in expense of the ships, especially in time of war, when the channel is thronged with privateers, and ships wait to go in fleets for fear of enemies, the Glasgow vessels are no sooner out of the Firth of Clyde, but they stretch away to the north-west, are out of the road of the privateers immediately, and are often at the capes of Virginia before the London ships get clear of the channel.

Wartime locational advantage. The Clyde ports benefited significantly from their north-westerly location, especially during periods of conflict. As Daniel Defoe noted, Clyde vessels could quickly access the Atlantic via the North Channel, avoiding the heavily contested English Channel and its privateers, leading to faster voyages and lower costs.

Tobacco trade dominance. This wartime advantage allowed Clyde merchants to consolidate their position in the lucrative American tobacco trade. By establishing "store houses" staffed by kinsmen in the Chesapeake, they ensured rapid turn-around times for their specialized transatlantic vessels, increasing utilization rates and squeezing out English rivals.

Diversification and growth. Beyond tobacco, the Clyde diversified into other colonial commodities like sugar, rum, and indigo, especially after the Seven Years War opened new markets in Canada and the West Indies. The shift from supercargoes to resident factors, coupled with the use of Bills of Exchange, streamlined trade operations and further cemented Glasgow's mercantile power.

7. Fisheries and Whaling: State Bounties Drive Growth Amidst Challenges

I am assured that there can be but a trifle lost were the ship unsuccessful, the bounty given by the government being so considerable.

Mercantilist promotion. The fisheries were a prime target for mercantilist intervention, seen as a "nursery of seamen" for the navy and a means to replace imports. Government bounties, particularly on herring busses and Greenland whalers, were designed to stimulate these industries, often with little regard for immediate profitability.

Whaling's slow start, then boom. Early Scottish whaling ventures were costly failures due to lack of skill and capital. However, the doubling of the whaling tonnage bounty to 40 shillings per ton in 1750 finally spurred growth. This led to the formation of joint-stock companies and the outfitting of large vessels, making whaling a significant industry, especially for east coast ports, despite initial inexperience and high risks.

Herring buss industry's volatility. The herring buss industry also saw slow initial growth, even with increased bounties, due to wartime insecurity and shipbuilding constraints. A boom in the 1760s, fueled by bounty payments, was followed by a bust due to irregular payments. Subsequent reforms, including guaranteed payments and flexible deployment, led to a revival, transforming towns like Campbeltown.

8. Navigational Aids and Port Development: Essential for Maritime Progress

Surely the administration will now extend its attention to the northern part of the [British] Island, will give us armed vessels for the protection of our trade, and if no part of the regular forces can be spared, will at least permit us to provide for the defence by a well regulated militia.

Charting the coasts. Scotland's maritime backwardness was evident in its lack of reliable coastal charts. Early efforts by John Adair were hampered by funding issues and rivalries. It was national security concerns, particularly after the Jacobite Rebellions, that prompted the Admiralty to commission comprehensive surveys by Murdoch McKenzie the Elder, significantly improving charts of the Western Isles and west coast.

Lighthouse development. For centuries, the Isle of May's coal fire was Scotland's only permanent light. The high cost and poor service of private lights, coupled with increasing winter voyages, spurred calls for government intervention. The Commissioners for the Northern Lights, established in 1786, began erecting new, more efficient oil lights at strategic locations like Kinnaird Head, Mull of Kintyre, and Pentland Skerries.

Port infrastructure. While Cromwell's era saw fortifications, later port development was largely left to local interests, often funded by local taxes. Port Glasgow and Greenock emerged as the only deepwater ports capable of handling large ocean-going vessels in all tides, thanks to significant local investment. Elsewhere, efforts focused on dredging, pier construction, and seamarks to improve access and safety in estuary harbors.

9. The American War of Independence: A Traumatic Catalyst for Reform

The American War almost annihilated the shipping stock of the Clyde and asserted that 313 vessels of various sizes were captured.

Devastating losses. The American War of Independence profoundly disrupted Scotland's maritime sector, particularly the Clyde's tobacco trade. While official Customs returns might mask the full extent, Lloyd's reports and contemporary accounts suggest a dramatic cull of Scottish ocean-going vessels, especially those contracted as government transports or operating as "running ships."

War in home waters. The conflict brought the war directly to British shores, with American privateers, often operating from French bases, raiding Scottish waters. John Paul Jones's raids on Whitehaven and Kirkcudbright, and Luke Ryan's descents on west coast anchorages, exposed Scotland's vulnerability and fueled widespread panic, leading to calls for improved coastal defenses and militias.

Catalyst for reform. The war's immense economic and strategic costs, coupled with the loss of the American colonies, forced a radical re-evaluation of the British mercantilist system. Pitt's Consolidation Act (1787) and the Act of Registry (1786) aimed to rationalize duties, curb smuggling, and tighten control over the remaining imperial trade, laying the groundwork for a more flexible economic order.

10. Shipbuilding's Rise: War's Unintended Economic Legacy

The Saltcoats people finding an increasing demand for ships, which they could not build in America, nor buy at the time in Britain but at a high price, were naturally led to attempt to build them themselves, their harbour being remarkably convenient for launching them ... in a place where scarce a boat had been built before three carpenter’s yards were set up one after the other, which have gone on successfully ever since.

Loss of American-built ships. The American War of Independence, by cutting off the supply of American-built vessels, inadvertently stimulated the British shipbuilding industry. Prior to the war, a significant portion of the Scottish marine was American-built, particularly larger "foreign-going" vessels.

Local yards flourish. The wartime demand for new ships, coupled with high prices for existing vessels, spurred the growth of shipbuilding across Scotland. Ports like Saltcoats, Kirkcaldy, and Dysart, previously minor players, saw the establishment of new yards and a significant increase in output, producing brigs, sloops, and even larger ships.

Technological leap. By 1790, Scottish yards, particularly Greenock and Port Glasgow, were launching deeper-draught hulls and larger square-riggers, like the 1100-ton Brunswick. This technological leap, driven by the need for larger vessels and the expertise of master shipwrights relocating to deepwater ports, transformed Scotland into a significant shipbuilding nation.

11. Mercantilism's Contradictions: Fostering Growth While Nurturing Fraud

Without a bonded warehouse system to regulate the transit of re-exports, inordinate amounts of time and energy (and occasionally life) were expended by the Customs Service in curtailing the tax evasion endemic in the local coastal communities.

Flawed economic rationale. The elaborate high tariffs of the mercantilist system, intended to protect domestic industries and generate revenue, inadvertently created a massive black economy. Smuggling, fueled by the lucrative price differentials and lax enforcement, became endemic in Scottish coastal communities, undermining the very revenue it sought to generate.

Bounties vs. efficiency. While bounties on fisheries and whaling aimed to foster strategic industries, they often led to inefficiencies. Adam Smith famously critiqued "fishing for the bounty not the fish," highlighting how the system incentivized meeting regulatory requirements over actual productivity. Irregular bounty payments further destabilized nascent industries.

A mixed legacy. Despite its inherent contradictions and the widespread fraud it fostered, the British mercantilist system undeniably nurtured Scotland's maritime sector. By 1790, Scotland had developed a substantial marine, a burgeoning shipbuilding industry, and a skilled seafaring population, laying crucial foundations for its future role in the expanding British Empire.

Last updated: January 3, 2026