What it was:
That £398,085 10s figure is the payment - known in history as The Equivalent.
When England and Scotland negotiated Act of Union 1706-1707, England had national debt of about £18 million from wars with France. Scotland had almost no national debt, but was bankrupt after Darien - attempt to build Scottish colony in Panama.
Company of Scotland raised £400,000 — about a fifth of all the wealth of Scotland. Some accounts say a quarter of Scottish capital lost. King William III on advice of English East India Company persuades Dutch and English investors to pull out, bans Jamaica and Barbados from selling food or medicine to starving Scots in Panama. Scotland goes bust.
The deal: If Scotland agreed to take on share of England's debt and dissolve its Parliament, England would pay Scotland £398,085 10s as compensation. Written into Article 15 of Treaty of Union.
How it was split:
• £232,884 5s - to pay off all of Scotland's own debts and to compensate investors who lost money in Darien Company • £165,201 5s - to be kept as capital stock to help Scottish trade grow within new British economy
It was shipped up in 12 wagons of gold coin in August 1707 to Edinburgh Castle. 58.6% of total was paid out to shareholders and creditors of Company of Scotland.
How much it was worth:
In 1707 £398,085 10s was about 4% of entire Scottish and English GDP at time. Only about 1 million people in Scotland.
• ~£100 million in today's money inflation • As share of wages: over £1 billion today • As share of whole economy: £10-15 billion today
Enough to buy a Parliament.
The secret bribes:
Separate secret payments of about £20,000 paid by English treasury to key Scottish commissioners and peers to get deal through Scottish Parliament — £20,000 dispatched, £12,325 more than 60% distributed to Boyle and Duke of Queensbury. Robert Burns later called it "bought and sold for English gold" and "a parcel of rogues."
Verdict: Whether bailout or bribe, result same — Parliament ended, sovereignty sold for 4% of GDP.