In 1696, the Company of Scotland was founded in Scotland as a joint stock company with the aim of establishing a Scottish colony in Darien in the eastern part of Panama. Efforts were made to realize the plan of developing the land. But the costs were underestimated by far, so that the company became insolvent with a high mountain of debt. About 2,500 Scottish settlers brought to Darien died on the spot from epidemics and starvation. This brought Scotland to the brink of national bankruptcy. – The deep financial crisis hastened Scotland’s union with England (Act of Union 1707); England assumed Scotland’s debts in the Treaty of Union. – See Louisiana bankruptcy, feedback mechanism, too big to save principle, tulip crash.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/