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 OUP CORRECTED PROOF – FINAL, 11/3/2018, SPi

CONTENTS vii

Summary 124
Reading notes 124
Exercises 125

6 A Simple Economy 129

6.1 Introduction 129
6.2 Another look at production 129
6.2.1 Processes and net outputs 129
6.2.2 The technology 131
6.2.3 The production function again 135
6.2.4 Externalities and aggregation 136
6.3 The Robinson Crusoe economy 137
6.4 Decentralisation and trade 140
6.4.1 Reorganisation on the island? 140
6.4.2 Opening up the economy 144
Summary 147
Reading notes 147
Exercises 147

7 General Equilibrium 149

7.1 Introduction 149
7.2 A more interesting economy 149
7.2.1 Allocations 150
7.2.2 Incomes 152
7.2.3 An illustration: the exchange economy 153
7.3 The logic of price-taking 155
7.3.1 The core of the exchange economy 157
7.3.2 Competitive equilibrium and the core: small economy 158
7.3.3 Competitive equilibrium and the core: large economy 159
7.4 The excess-demand approach 162
7.4.1 Properties of the excess demand function 163
7.4.2 Existence 166
7.4.3 Uniqueness 168
7.4.4 Stability 170
7.5 The role of prices 173
7.5.1 The equilibrium allocation 174
7.5.2 Decentralisation again 174
Summary 177
Reading notes 178
Exercises 179

8 Uncertainty and Risk 182

8.1 Introduction 182
8.2 Consumption and uncertainty 182
8.2.1 The nature of choice 184
8.2.2 State-space diagram 184
 OUP CORRECTED PROOF – FINAL, 11/3/2018, SPi

viii CONTENTS

8.3 A model of preferences 188

8.3.1 Key axioms 189
8.3.2 von-Neumann–Morgenstern utility 192
8.3.3 The ‘felicity’ function 193
8.4 Risk aversion 195
8.4.1 Risk premium 195
8.4.2 Indices of risk aversion 196
8.4.3 Special cases 199
8.5 Lotteries and preferences 201
8.5.1 The probability space 202
8.5.2 Axiomatic approach 202
8.6 Trade 206
8.6.1 Contingent goods: competitive equilibrium 206
8.6.2 Financial assets 207
8.7 Individual optimisation 208
8.7.1 The attainable set 209
8.7.2 Components of the optimum 212
8.7.3 The portfolio problem 214
8.7.4 Insurance 220
Summary 223
Reading notes 223
Exercises 223

9 Welfare 228
9.1 Introduction 228
9.2 The constitution 229
9.2.1 A model of social choice 229
9.2.2 A response to the Impossibility Theorem? 231
9.2.3 The importance of the constitution approach 235
9.3 Principles for social judgements: efficiency 235
9.3.1 Private goods and the market 238
9.3.2 Departures from efficiency 244
9.3.3 Externalities 247
9.3.4 Public goods 251
9.3.5 Uncertainty 253
9.3.6 Extending the efficiency idea 256
9.4 Principles for social judgements: equity 258
9.4.1 Fairness 258
9.4.2 Concern for inequality 259
9.5 The social-welfare function 260
9.5.1 Welfare, national income, and expenditure 261
9.5.2 Inequality and welfare loss 263
9.5.3 The social-welfare function approach: assessment 266
Summary 266
Reading notes 267
Exercises 267
 OUP CORRECTED PROOF – FINAL, 11/3/2018, SPi

CONTENTS ix

10 Strategic Behaviour 272

10.1 Introduction 272
10.2 Games—basic concepts 272
10.2.1 Players, rules, and payoffs 273
10.2.2 Information and beliefs 274
10.2.3 Strategy 275
10.2.4 Representing a game 275
10.3 Equilibrium 277
10.3.1 A simplified approach 277
10.3.2 A general approach 279
10.3.3 Multiple equilibria 281
10.3.4 Efficiency 282
10.3.5 Existence 284
10.4 Application: duopoly 290
10.4.1 Competition in quantities 291
10.4.2 Competition in prices 296
10.5 Time 298
10.5.1 Games and subgames 300
10.5.2 Equilibrium: more on concept and method 301
10.5.3 Repeated interactions 305
10.6 Application: market structure 310
10.6.1 Market leadership 310
10.6.2 Market entry 312
10.6.3 Another look at duopoly 315
10.7 Uncertainty 317
10.7.1 A basic model 317
10.7.2 An application: entry again 321
10.7.3 Mixed strategies again 323
10.7.4 A ‘dynamic’ approach 323
Summary 324
Reading notes 325
Exercises 325

11 Information 330
11.1 Introduction 330
11.2 Hidden characteristics: screening 331
11.2.1 Information and monopoly power 331
11.2.2 One customer type 332
11.2.3 Multiple types: full information 336
11.2.4 Imperfect information 338
11.2.5 Screening: competition 347
11.2.6 Application: insurance 348
11.3 Hidden characteristics: signalling 354
11.3.1 Costly signals 354
11.3.2 Costless signals 361
 OUP CORRECTED PROOF – FINAL, 11/3/2018, SPi

x CONTENTS

11.4 Hidden actions 362

11.4.1 The issue 362
11.4.2 Outline of the problem 363
11.4.3 A simplified model 364
11.4.4 Principal and Agent: a richer model 368
Summary 374
Reading notes 375
Exercises 375

12 Design 379
12.1 Introduction 379
12.2 Social choice 379
12.3 Markets and manipulation 383
12.3.1 Markets: another look 383
12.3.2 Simple trading 384
12.3.3 Manipulation: power and misrepresentation 384
12.3.4 A design issue? 386
12.4 Mechanisms 386
12.4.1 Implementation 387
12.4.2 Direct mechanisms 388
12.4.3 The revelation principle 389
12.5 The design problem 390
12.6 Design: applications 392
12.6.1 Auctions 392
12.6.2 A public project 400
12.6.3 Contracting again 405
12.6.4 Taxation 411
Summary 418
Reading notes 418
Exercises 419

13 Government and the Individual 424

13.1 Introduction 424
13.2 Market failure? 424
13.3 Non-convexities 426
13.3.1 Large numbers and convexity 427
13.3.2 Interactions and convexity 428
13.3.3 The infrastructure problem 428
13.3.4 Regulation 431
13.4 Externalities 434
13.4.1 Production externalities: the efficiency problem 435
13.4.2 Corrective taxes 435
13.4.3 Production externalities: private solutions 436
13.4.4 Consumption externalities 439
13.4.5 Externalities: assessment 440
 OUP CORRECTED PROOF – FINAL, 11/3/2018, SPi

CONTENTS xi

13.5 Public consumption 440

13.5.1 Non-rivalness and efficiency conditions 441
13.5.2 Club goods 441
13.6 Public goods 443
13.6.1 The issue 444
13.6.2 Voluntary provision 444
13.6.3 Personalised prices? 447
13.6.4 Public goods: market failure and the design problem 449
13.6.5 Public goods: alternative mechanisms 451
13.7 Optimal allocations? 454
13.7.1 Optimum with lump-sum transfers 455
13.7.2 Second-best approaches 457
13.8 Conclusion: economic prescriptions 462
Reading notes 463
Exercises 463

A Mathematics Background 467

A.1 Introduction 467
A.2 Sets 467
A.2.1 Sets in Rn 468
A.3 Functions 469
A.3.1 Linear and affine functions 469
A.3.2 Continuity 470
A.3.3 Homogeneous functions 472
A.3.4 Homothetic functions 473
A.4 Differentiation 474
A.4.1 Function of one variable 474
A.4.2 Function of several variables 475
A.4.3 Function-of-a-function rule (‘chain rule’) 475
A.4.4 The Jacobian derivative 476
A.4.5 The Taylor expansion 476
A.4.6 Elasticities 477
A.5 Mappings and systems of equations 478
A.5.1 Fixed-point results 478
A.5.2 Implicit functions 480
A.6 Convexity and concavity 480
A.6.1 Convex sets 480
A.6.2 Hyperplanes 482
A.6.3 Separation results 482
A.6.4 Convex and concave functions 484
A.6.5 Quasiconcave functions 486
A.6.6 The Hessian property 488
A.7 Maximisation 488
A.7.1 The basic technique 488
A.7.2 Constrained maximisation 490
A.7.3 More on constrained maximisation 491
 OUP CORRECTED PROOF – FINAL, 11/3/2018, SPi

xii CONTENTS

A.7.4 Envelope theorem 493

A.7.5 A point on notation 495
A.8 Probability 495
A.8.1 Statistics 496
A.8.2 Bayes’ rule 497
A.8.3 Probability distributions: examples 497
Reading notes 498

B Answers to Mini Problems 500

B.1 Introduction 500
B.2 The firm 500
B.3 The firm and the market 508
B.4 The consumer 509
B.5 The consumer and the market 517
B.6 A simple economy 520
B.7 General equilibrium 523
B.8 Uncertainty and risk 528
B.9 Welfare 535
B.10 Strategic behaviour 539
B.11 Information 548
B.12 Design 561
B.13 Government and the individual 571

C Selected Proofs 580

C.1 The firm 580
C.1.1 Marginal cost and the Lagrange multiplier 581
C.1.2 Properties of the cost function (Theorem 2.2) 582
C.1.3 Firm’s demand-and-supply functions (Theorem 2.4) 584
C.1.4 Firm’s demand-and-supply functions (continued) 585
C.1.5 Properties of profit function (Theorem 2.7) 586
C.2 The consumer 587
C.2.1 The representation theorem (Theorem 4.1) 587
C.2.2 Existence of ordinary demand functions (Theorem 4.5) 587
C.2.3 Quasiconvexity of the indirect utility function 587
C.3 The consumer and the market 588
C.3.1 Composite commodity (Theorem 5.1) 588
C.3.2 The representative consumer (Theorem 5.2) 588
C.4 A simple economy 589
C.4.1 Decentralisation (Theorem 6.2) 589
C.5 General equilibrium 589
C.5.1 Competitive equilibrium and the core (Theorem 7.1) 589
C.5.2 Existence of competitive equilibrium (Theorem 7.4) 590
C.5.3 Uniqueness of competitive equilibrium (Theorem 7.5) 590
C.5.4 Valuation in general equilibrium (Theorem 7.6) 591
 OUP CORRECTED PROOF – FINAL, 11/3/2018, SPi

CONTENTS xiii

C.6 Uncertainty and risk 591

C.6.1 Expected utility (Theorem 8.1) 591
C.6.2 Lottery preference representation (Theorem 8.4) 592
C.6.3 Risk-taking and wealth (Theorem 8.7) 595
C.7 Welfare 595
C.7.1 Arrow’s theorem (Theorem 9.1) 595
C.7.2 Black’s theorem (Theorem 9.2) 597
C.7.3 The support theorem (Theorem 9.5) 597
C.7.4 Potential superiority (Theorem 9.10) 599
C.8 Strategic behaviour 599
C.8.1 Nash equilibrium in pure strategies with infinite strategy sets (Theorem 10.2) 599
C.8.2 Existence of Nash equilibrium (Theorem 10.1) 600
C.8.3 The Folk theorem 601
C.9 Design 601
C.9.1 Revenue equivalence (Theorem 12.6) 601
C.9.2 The Clarke–Groves mechanism (Theorem 12.7) 603

References 605
Index 615
OUP CORRECTED PROOF – FINAL, 16/3/2018, SPi

List of tables

2.1 The firm: basic notation 9

2.2 The firm: solution functions 38
2.3 The multiproduct firm: notation 43
3.1 The firm in the industry: notation 57
4.1 The consumer: notation 74
5.1 The consumer in the market: notation 106
6.1 The desert island economy 138
7.1 Elements of the economy 151
7.2 Alf, Arthur, and Bill cut Ben out of the coalition 160
8.1 Two decision problems under uncertainty 183
8.2 Example for independence axiom 189
8.3 Prospects with fruit 190
8.4 Prospects with different fruit 191
8.5 Uncertainty and risk: notation 206
9.1 Classification of goods 238
9.2 Elements of the efficiency problem 239
10.1 Simultaneous move, strategic form 276
10.2 A game with a unique Nash equilibrium 281
10.3 Multiple equilibria 1 282
10.4 Multiple equilibria 2 282
10.5 No equilibrium in pure strategies 285
10.6 Strategic behaviour: notation 289
10.7 Cournot model as prisoner’s dilemma 294
10.8 Sequential move, strategic form 299
10.9 Incredible threat: strategic view 303
10.10 Bill’s trigger strategy sbT 308
10.11 Simple models of strategic behaviour in industrial organisation 312
10.12 Elimination and equilibrium 325
10.13 Pure-strategy Nash equilibria 326
11.1 Types of incentive problem 331
11.2 Screening: elements of the problem 335
11.3 Signalling: elements of the problem 357
11.4 Principal and Agent: elements of the problem 369
12.1 Social-choice functions: notation 381
12.2 The trading game 384
12.3 Mechanism: notation 387
12.4 Types of auction 393
 OUP CORRECTED PROOF – FINAL, 11/3/2018, SPi

LIST OF TABLES xv

12.5 Auctions: notation 394

12.6 A public project: elements of the problem 401
12.7 Penalty table for public projects 405
12.8 Contracting with hidden information: elements of the problem 406
12.9 Optimal taxation: elements of the problem 413
B.1 ‘Battle of the sexes’—strategic form 540
B.2 The prisoner’s dilemma 541
B.3 Matching pennies 542
B.4 Bertrand model with integer prices 545
B.5 Matching pennies: sequential version 546
B.6 Strong incumbent 547
B.7 A simple public-goods game 576
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OUP CORRECTED PROOF – FINAL, 11/3/2018, SPi

List of figures

2.1 Input requirement sets for four different technologies 11

2.2 Marginal rate of technical substitution 13
2.3 Low and high elasticity of substitution 14
2.4 Homothetic and homogeneous functions 15
2.5 An increasing returns to scale production function 17
2.6 A decreasing returns to scale production function 17
2.7 A constant returns to scale production function 18
2.8 Four different technologies 19
2.9 The marginal product 19
2.10 Cost minimisation 21
2.11 Cost and input price 25
2.12 Optimal output may be multivalued 28
2.13 Convexity and input demands 30
2.14 The substitution effect of a fall in price 37
2.15 Input-price fall: total effect 37
2.16 Marginal and average costs in the short and long run 42
2.17 Firm’s transformation curve 43
2.18 Profit maximisation: multiproduct firm 46
3.1 A market with two firms 53
3.2 Another market with two firms 53
3.3 Absence of market equilibrium 54
3.4 Average supply of two identical firms 55
3.5 Average supply of lots of firms 56
3.6 Industry supply with negative externality 58
3.7 Industry supply with positive externality 58
3.8 Temporary equilibrium of one firm 59
3.9 Equilibrium of the marginal competitive firm 60
3.10 Equilibrium of the monopolist 63
3.11 Monopolistic market with an entry fee 65
3.12 Short-run equilibrium for the local monopolist 66
3.13 Long-run equilibrium for the local monopolist 67
4.1 The consumption set: standard assumptions 72
4.2 Two versions of the budget constraint 73
4.3 x is chosen Monday; x is chosen Tuesday 76
4.4 Extension of the revealed preference concept 76
4.5 The continuity axiom 78
4.6 Two utility functions representing the same preferences 80
4.7 A bliss point 81
 OUP CORRECTED PROOF – FINAL, 11/3/2018, SPi

LIST OF FIGURES xvii

4.8 Strictly quasiconcave (concave-contoured) preferences 81

4.9 Two views of the consumer’s optimisation problem 83
4.10 The effects of a price fall 91
4.11 Compensated demand and the value of a price fall (1) 96
4.12 Compensated demand and the value of a price fall (2) 97
4.13 Three ways of measuring the benefits of a price fall 98
5.1 The offer curve 108
5.2 The household’s supply of good 1 109
5.3 The savings problem 114
5.4 General household production model 116
5.5 Consumption in the household-production model 117
5.6 Market price change causes a switch 119
5.7 Aggregation of consumer demand 122
5.8 Aggregable demand function 123
5.9 Odd things happen when Alf and Bill’s demands are combined 123
6.1 Three basic production processes 130
6.2 Labour and pigs produce sausages 133
6.3 The technology set Q 133
6.4 The potato–sausage trade-off 135
6.5 Smooth potato–sausage trade-off 136
6.6 Crusoe’s attainable set 139
6.7 Robinson Crusoe problem: summary 139
6.8 The separating role of prices 142
6.9 Optimum cannot be decentralised 143
6.10 Crusoe problem: another view 144
6.11 Crusoe’s island trades 145
6.12 Convexification of the attainable set 146
7.1 Utility-maximising choices for Alf and Bill 154
7.2 Competitive equilibrium: exchange economy 154
7.3 The contract curve 156
7.4 The core in the two-person case 158
7.5 Any competitive equilibrium must lie in the core 159
7.6 A blocking allocation 161
7.7 Construction of excess demand curve 163
7.8 Existence of a unique equilibrium price 167
7.9 Discontinuous excess demand 167
7.10 Excess demand for good 2 unbounded below 168
7.11 Multiple equilibria 169
7.12 Global stability 170
7.13 Local instability 171
7.14 Decentralisation in general equilibrium 175
7.15 Convexification of production through aggregation 176
7.16 Non-convex preferences 177
 OUP CORRECTED PROOF – FINAL, 11/3/2018, SPi

xviii LIST OF FIGURES

8.1 The ex ante/ex post distinction 183

8.2 The state-space diagram: # = 2 185
8.3 The state-space diagram: # = 3 185
8.4 Preference contours in state-space 186
8.5 The certainty equivalent 186
8.6 Quasiconcavity reinterpreted 187
8.7 A change in perception 188
8.8 Independence axiom: illustration 190
8.9 Contours of the expected-utility function 193
8.10 Attitudes to risk 193
8.11 The ‘felicity’ or ‘cardinal utility’ function u: two cases 196
8.12 Concavity of u and risk aversion 198
8.13 Differences in risk attitudes 199
8.14 Indifference curves with constant absolute risk aversion 200
8.15 Indifference curves with constant relative risk aversion 200
8.16 The probability diagram: # = 2 202
8.17 The probability diagram: # = 3 203
8.18 The probability diagram: # = 3 (close-up) 203
8.19 π-indifference curves 205
8.20 Contingent goods: equilibrium trade 207
8.21 Attainable set: safe and risky assets (1) 210
8.22 Attainable set: safe and risky assets (2) 211
8.23 Attainable set: insurance 212
8.24 Consumer choice with a variety of financial assets 213
8.25 Distribution of returns 214
8.26 Consumer choice: safe and risky assets 215
8.27 Effect of an increase in endowment 217
8.28 A rightward shift 218
8.29 Effect of a rightward shift in the distribution 219
8.30 Effect of numbers 221
9.1 Alf, Bill, Charlie, and the bomb (1) 233
9.2 Alf, Bill, Charlie, and the bomb (2) 233
9.3 The utility-possibility set 237
9.4 Household h will choose x̃h not x̂h 242
9.5 Firm f will choose q̃f not q̂f 243
9.6 Component of efficiency loss 246
9.7 The effect of pollution on a victim’s production set 249
9.8 Production boundary and efficiency with externalities 250
9.9 Conditions for efficient provision of public goods 253
9.10 Ex ante and ex post efficiency 255
9.11 θ ◦ is accessible from θ  and θ  is accessible from θ ◦ 257
9.12 The social-welfare function 264
10.1 Simultaneous move, extensive form 276
 OUP CORRECTED PROOF – FINAL, 11/3/2018, SPi

LIST OF FIGURES xix

10.2 Utility possibilities: prisoner’s dilemma 284

10.3 Equilibrium in mixed strategy 286
10.4 Alf ’s pure and mixed strategies 287
10.5 Cournot—the reaction function 292
10.6 (a) Cournot–Nash equilibrium. (b) Collusive solution 293
10.7 One-shot Cournot game 295
10.8 Bertrand model 297
10.9 Sequential move, extensive form 299
10.10 Game and subgame (1) 300
10.11 Game and subgame (2) 301
10.12 An incredible threat 303
10.13 Repeated prisoner’s dilemma 305
10.14 Utility possibilities: prisoner’s dilemma with ‘mixing’ 306
10.15 Leader-follower 311
10.16 Entry deterrence 313
10.17 Alf ’s beliefs about Bill 318
10.18 Entry with incomplete information 322
10.19 Benefits of restricting information 327
11.1 Alternative fee schedules F(·) 332
11.2 An exploitative contract: fee schedule and consumption possibilities 333
11.3 Two types: single-crossing condition 336
11.4 Full-information contracts: consumption possibilities for each type 338
11.5 Screening: extensive-form game 339
11.6 Possibility of masquerading 341
11.7 Second-best contracts: consumption for each of the two types 345
11.8 Second-best contract: fee schedule and attainable set 346
11.9 Profit on the contract 348
11.10 Insurance: efficient risk allocation 349
11.11 Insurance: pooling 352
11.12 Insurance: separating equilibrium? 353
11.13 Signalling by workers 355
11.14 Costly signals 356
11.15 Separating equilibria 359
11.16 Pooling equilibria 360
11.17 Principal and Agent 363
11.18 Full-information contracts 365
11.19 Second-best contracts 368
11.20 Effort shifts the frequency distribution 371
11.21 Principal and Agent: simple solution 372
12.1 Manipulated trading 385
12.2 The revelation principle 390
12.3 Distribution of tastes—Beta(2,7) 395
12.4 First-price auction: bid and probability of winning 396
 OUP CORRECTED PROOF – FINAL, 11/3/2018, SPi

xx LIST OF FIGURES

12.5 Distribution of price paid 399

12.6 A fixed-size project 402
12.7 Indifference curves in (z, y)-space and (q, y)-space 407
12.8 Two types of Agent: full-information solution 408
12.9 Two types of Agent: contract design 411
12.10 Output and disposable income under the optimal tax 417
13.1 Implementation through the market 426
13.2 Non-convexities in production and efficiency: two cases 429
13.3 Non-convexity: effect of the competitive market 430
13.4 Non-convexity: an efficient fee schedule 432
13.5 Non-convexity: uncertain trade-off 433
13.6 A fundamental non-convexity 438
13.7 Myopic rationality underprovides public good 445
13.8 The Cournot–Nash solution underprovides 446
13.9 Lindahl solution 449
13.10 Opportunities for redistribution 456
A.1 (a) A continuous function. (b) An upper-hemicontinuous correspondence 472
A.2 Continuous mapping with a fixed point 479
A.3 Upper hemicontinuous mapping with a fixed point 479
A.4 A strictly convex set in R2 481
A.5 A hyperplane in R2 482
A.6 A hyperplane separating A and y 483
A.7 Supporting hyperplane 484
A.8 A strictly convex function of one variable 485
A.9 A strictly concave-contoured (strictly quasiconcave) function 487
A.10 Different types of stationary point 489
A.11 A case where xi∗ = 0 at the optimum 493
B.1 Labour input in two locations 501
B.2 A function homothetic to point (k, k) 502
B.3 Cost minimisation: a corner solution 503
B.4 Profit maximisation: corner solution 507
B.5 Price changes (i) and (ii) in two cases 509
B.6 Prices differ for buying and selling 509
B.7 Lexicographic preferences 510
B.8 Utility maximisation: corner solution 511
B.9 Quantity discount 513
B.10 Giffen good 514
B.11 The compensating variation measured in terms of good 2 516
B.12 The equivalent variation measured in terms of good 2 516
B.13 Supply of good 1 517
B.14 Budget constraint with overtime 518
B.15 Indivisibility in production 520
B.16 Combination of technology sets 520
B.17 Answer to 3a 521
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known of its existence, he would have fairly revelled in the discovery, and
perhaps the plot of 'The Pirate' might have been different.

Standing on the sands at Jarlshof, we could see, toward the northwest, the
towering promontory of the Fitful Head, rising nine hundred and twenty-
eight feet above the sea. This seemed a little puzzling at first, for Scott
places the residence of Norna of the Fitful Head at the extreme northwestern
edge of the Mainland. The Pictish burgh, or broch, which Norna is supposed
to have inhabited, is on the island of Mousa,[1] off the eastern coast about
ten miles north of Sumburgh Head. The Wizard, for a very good reason, set
the old tower on the top of a great headland, ten miles to the south-west, and
then moved the combination fifty miles to the north.
 CROSS-SECTION OF THE BROCH OF MOUSA

The dwelling of Norna, therefore, which to the casual reader seems so

weird, was a very real thing. It represents one of the earliest forms of
architecture, a rude attempt to construct a dwelling of loose stones, without
cement or timber, and with very slight knowledge of the art of building. The
Norsemen did not come to the Shetland Islands until late in the eighth
century and they found many of these brochs already in existence. The most
perfect of them all is the one on the island of Mousa. It measures fifty-three
feet in diameter at the base and thirty-eight feet at the top. It is forty-two feet
high. The interior of what appears, externally, to be a rather large building, is
less than twenty feet in diameter owing to the peculiar construction of the
walls, which are really double. They are seventeen feet wide at the base.
Inside the walls is a kind of rude stair, or inclined plane, winding around the
building, and a series of very narrow galleries or chambers. These receive air
through openings in the inner wall, but, excepting the door, there is no
aperture in the outer wall.
 This is the real building which Scott made the residence of Norna
because of his profound interest in it as a structure of unknown antiquity. But
standing in full view, firmly planted on a solid and easily accessible rock, its
situation was too commonplace for the requirements of the story. He knew
well how to create quite a different impression, by supposing the same kind
of house situated in a wild and remote locality, on a ragged piece of rock
split off from the main plateau and leaning outward over the sea as though
the slightest weight would tumble the whole structure, rock and all, into the
ocean. Then, to supply the needed air of mystery, he fancied it occupied by a
crazy old witch, claiming sovereignty over the winds and the seas; her
servant an ugly, big-mouthed, tongueless dwarf, with malignant features and
a horrible, discordant laugh; her favourite pet an uncouth and uncanny
trained seal; her companions the unseen demons of the air; and her
occupations the utterance of sibylline prophecies and the incantation of
weird spells. Clearly, all this would have been impossible on the island of
Mousa, so the author simply adjusted the geography of the country to the
requirements of his romance.
 SCALLOWAY, SHETLAND

Although Lerwick is now the only town of importance in the Shetlands,

the village of Scalloway, directly across the Mainland on the eastern coast,
once held that distinction. It is picturesquely situated on an arm of the sea.
Approaching from the east, we paused at the top of the hill to look down
upon it. Just below was one of those long narrow voes, so common in these
islands. The whale-hunt described in 'The Pirate' came instantly to mind. It
was easy to understand how one of these monsters might come in at high
tide and find himself stranded at the ebb. At the mouth of this voe and
circling around a small bay of its own lies the quaint little village. At the
extremity of a point of land between the voe and the bay, rising higher than
any of the surrounding buildings, stands the ruined Castle of Scalloway. It
was built in 1600 by Patrick Stewart, the Earl of Orkney to whom I have
previously referred. He was the 'Pate Stewart' whose name is still a synonym
on the islands for all that is cruel and oppressive. He compelled the people to
do his bidding. They were obliged to work in the quarries, drag the stone to
the town, build the house as best they could without proper appliances, and
perform any kind of menial service he might exact. For this they received a
penny a day if the Earl felt good-natured. Otherwise they received nothing.
If they displeased him they were thrown into dungeons and not infrequently
hanged. A huge iron ring near the top of the castle, which was used for this
purpose, still bears witness to Pate Stewart's cruelty. He is said to have
boasted that the ring seldom lacked a tassel. As mentioned in 'The Pirate,' the
inhabitants only remembered one thing to his credit, and that was a law
which accorded well with Patrick's own ideas of the rights of people to
possess their own property. This was the law, so dear to boyish hearts, of
'finders keepers.' Property washed up from wrecks at sea belonged to those
who found it. There was a prevalent superstition that to save a drowning
person was unlucky, and no doubt this was one of the results of Pate
Stewart's ruling. If a man was not rescued he could claim no rights of
property. It was this superstition, so prevalent on the islands, that Scott wove
into his plot, making the rescue of Cleveland and the saving of his chest an
extremely unlucky occurrence for Mordaunt Mertoun.

We left Lerwick at midnight and stood on deck for an hour enjoying the
scenery by twilight. The little steamer was loaded to the gunwales with
barrels of fish, piled upon the decks in every nook and corner, so that there
was scarcely room to stand, making us feel like two very insignificant bits of
merchandise in the midst of such a valuable cargo of good salt herring. In
the morning we reached the port of Kirkwall, the capital and chief city of the
Orkneys.

Instead of a long busy quay, lined with hundreds of steam-drifters as at

Lerwick, we saw an almost empty harbour and a dock, which, but for the
arrival of our own vessel, would have been deserted. The permanent
population of the two towns is about the same, Kirkwall having the
advantage of the better agricultural facilities of the Orkneys. Its streets are
narrow like those in Lerwick. Bridge Street, up which the pirates marched so
insolently to meet the city magistrates, and down which they swaggered
again, dragging the terrified Triptolemus Yellowley, is one of the narrowest
of thoroughfares. It is commonly said that here, 'two wheelbarrows tremble
as they meet.' At the end, or 'top' of this street we turned to the right and
found ourselves in Albert Street, one striking feature of which is a solitary
tree. It was said, enviously, in Lerwick, that the people of Kirkwall were so
proud of this wonderful vegetation that they took it in every night and set it
out again in the morning.

Kirkwall is far more interesting than Lerwick because of its historical

associations, most of which centre about the Cathedral of St. Magnus. The
ancient building looks almost modern as you approach the wide plaza
opening out from Broad Street. Although older than Melrose, Dryburgh,
Holyrood, and Dunfermline abbeys, all of which are now in ruins, and in
spite of the fact that it is built of the soft red and yellow sandstone, it still
stands, complete and proudly erect. When Melrose was rebuilt, through the
munificence of Robert Bruce in the fourteenth century, the central portions
of St. Magnus had been standing for two centuries. In the sixteenth century,
when an English king was battering down the fine old Gothic churches of
Scotland, the people of Kirkwall not only protected their cathedral, but
witnessed the addition of some of its finest features, notably the west
doorway. In earlier times it had a spire, which, judging from the massive
columns upon which it rested, must have been an imposing one. The steeple
was burned in 1671, and never replaced, except by a stumpy little tower
which completely spoils the effect of an otherwise impressive building.

The story of the founding of St. Magnus is one of the most interesting of
the sagas of the Orkneys. Hakon and Magnus, both grandsons of the great
Earl Thorfinn, were joint rulers of the islands. Hakon was ambitious and
treacherous; Magnus was virtuous, kind-hearted, and well-beloved. By a
wicked conspiracy of Hakon and his associates, the saintly Magnus was
murdered in the island of Egilsay in 1115, bravely meeting his death as a
noble martyr. Hakon died soon after, and his son Paul inherited the earldom.
Another claimant appeared in the person of Rognvald, a nephew of Earl
Magnus, now called 'Saint' Magnus, a bold and skilful warrior and a born
leader of men. Before proceeding against Paul, Rognvald accepted the
advice of his father, who told him not to trust to his own strength, but to
make a vow, that if, by the grace of St. Magnus, he should succeed in
gaining his inheritance, he would build and dedicate to him a minster in
Kirkwall, more magnificent in size and splendour than any other in the
North. With the powerful but mysterious assistance of Sweyn Asleifson, 'the
last of the Vikings,' who seized Earl Paul and carried him away bodily, Earl
Rognvald became the sole ruler of the earldom. He set to work at once to
fulfil his vow, and began work upon the cathedral in the year 1137.
 The massiveness of the building is best realized by looking into the nave
from the west doorway. The roof is supported by immense round pillars of
red sandstone, seven on each side. On the north and south of these pillars are
long aisles, the walls of which are covered with ancient tombstones, taken up
from the floor and set on end. In the north aisle is a mort-brod, or death-
board, inscribed with the name of a departed Orcadian, whose picture is
shown, sitting on the ground in his grave-clothes, a spade over his shoulder,
an hour-glass in his lap, and a joyful grin on his face. On the reverse is the
following:—

Below
Doeth lye
If ye wold trye
Come read upon
This brod
The Corps of on Robert
Nicholsone whos souls above
With God.
He being 70 years of age ended
This mortal life and 50 of that he
Was married to Jeane Davidson
His wife. Betwixt them 2
12 children had, whereof
5 left behind the
other 7 with him 's
In Heaven, who's
Joy's shall
never
end

In the south aisle are some curious tombstones, most of them having carved
representations of the skull and crossbones. The death's heads are all much
enlarged on the left side, the Orcadian idea being that the soul escapes at
death through the left ear.

The pirate, Cleveland, it will be remembered, was kept a prisoner in these

aisles, and was walking about disconsolately when Minna Troil entered.
Concealed from the guards at the door by the huge pillars, they planned an
escape. Suddenly Norna of the Fitful Head mysteriously appeared, and
warning Minna that her plan would lead to certain discovery, sent the young
woman away. Norna then led Cleveland through a secret passage out of the
church to a place of safety. In the south aisle there is a low arch which
formerly led, so it is said, through a secret underground passage to the
Bishop's Palace across the street. This fact doubtless suggested to the
novelist the means by which Norna might spirit away the captive pirate.

Across the street which runs by the south side of the cathedral are the
ruins of two large mansions. The Bishop's Palace, which is not mentioned in
'The Pirate,' is chiefly interesting from the fact that Hakon Hakonson, the
last of the great sea-kings of Norway, after his splendid fleet had been driven
on the rocks by the fury of a great storm and there almost annihilated by the
fierce onset of the Scottish warriors, sought refuge within its walls, only to
die a few days later. This was in 1263. How much older the palace is,
nobody knows.

The Earl's Palace, with its grounds, occupies the opposite corner, a
narrow street intervening between the two ruins. The enclosure is filled with
sycamores and other trees, thus refuting the slander of the envious
Shetlanders. In fact, when we came to look for them, we found more than
one enclosure in Kirkwall which could boast of fairly good-sized trees. The
castle is, or was, a very substantial building, with fine broad stairways and
many turrets. Seen from the south, across the bowling-green, it might be
taken for the ruin of some large church. It was built by the notorious Patrick
Stewart, the same earl who abandoned Jarlshof, and compelled the people to
build him a larger castle at Scalloway. By the same methods, he constructed
the palace at Kirkwall, forcing the people to quarry the stone and do all his
work without pay. An example of his tyranny was related to me by a resident
of Kirkwall. According to this tale, the Earl coveted a piece of land adjoining
the palace, with which the owner refused to part. Patrick, not accustomed to
be thwarted in his plans, was quick to apply the remedy. He secretly caused
some casks of brandy to be buried in the desired tract. In due time he began
to complain that somebody was stealing his liquor and finally charged his
neighbour with the offence. The casks were then triumphantly 'discovered' as
proof positive. Inasmuch as the Earl was his own judge, jury, and court of
appeals, the poor innocent landowner was quickly condemned, hanged, and
his property confiscated. Many a man made over a part of his land to the
Earl on demand, having no alternative.

We noticed many portholes under the windows, showing that the castle
was intended to serve as a fortress as well as a mansion. This was the secret
of the Earl's final downfall. The authorities of Edinburgh could go to sleep
when the Earl of the far-distant islands merely oppressed his own people, but
to fortify a castle against the King was an act of treason. When Patrick
Stewart and his son Robert prepared to maintain their independence by
fortifying not only the castle but the cathedral, Scotland woke up. The Earl
of Caithness was sent against the rebels. Robert, who was in command,
withstood the siege for one month, when he was overcome, carried to
Edinburgh, and hanged. Patrick took refuge in the Castle of Scalloway and
for a time baffled his pursuers by hiding in a secret chamber. He could not
resist the consolation of tobacco and took a few surreptitious pulls at his
pipe, while the searchers were in the house. The smoke, or the smell,
betrayed him. He was speedily taken to Edinburgh, where he paid the
penalty on the gallows of a long career of tyranny, cruelty, extortion,
confiscation, robbery, and murder.

The most interesting room in the Earl's castle is the banqueting-hall,

which had a high roof or ceiling and was lighted on the south by three tall
but narrow arched windows. On one side is a huge fireplace with two arches,
the lower one flat. Supporting this curious combination are two pillars, on
which are carved the initials P.E.O., meaning Patrick, Earl of Orkney, the
letters being still legible. In this room Cleveland is supposed to have met
Jack Bunce upon his return to Kirkwall.

The two pirates, after leaving the castle, walked to Wideford Hill, two
miles from the town, where the Fair of St. Olla was being held. The annual
Lammas Market or Fair at this place is still one of the institutions of
Kirkwall, although no longer so important as in the time of 'The Pirate.'

If Scott took liberties with the geography of Shetland, he was

scrupulously exact in his treatment of the Orkneys. Every movement of the
brig of Magnus Troil, as well as those of the pirate ship, can be traced on the
map. The latter, it will be recalled, sailed around to Stromness, where she
dropped anchor. Two inland lakes, known as the Loch of Stennis and the
Loch of Harray, now favourite resorts for anglers, lie northeast of the town.
They are separated by a narrow causeway called the Bridge of Brogar. This
is the place where the pirates landed their boat on the night of the final
tragedy of the story. We found the locality one of the most interesting in the
islands.

At the entrance of the bridge stands a huge, rough-hewn stone, eighteen

feet high, known as the 'watch-stone' or 'sentinel.' This is the largest of the
'stones of Stennis,' a collection of ancient monoliths comparable in Great
Britain only to those of Stonehenge. At the farther end of the bridge is the
so-called 'Circle of the Sun,' a ring about one hundred and twenty yards in
diameter, surrounded by a trench about six feet deep. The stones composing
this circle are from eight to sixteen feet high and of irregular shape. One of
them is at least five or six feet wide. There were about forty stones
originally, but now only fifteen remain standing. A smaller group, known as
the 'Circle of the Moon,' but composed of larger stones, stands in a field near
the eastern end of the bridge. A horizontal stone, laid on top of these vertical
ones, makes a rude table or altar. This may have been a place of druidical
sacrifices, if the most prevalent belief is to be accepted, or possibly the work
of Scandinavian hands. It was by this table of stone that Minna stood, to
meet and bid farewell to her lover, looking like a druidical priestess, or, if the
Scandinavian theory be accepted, 'she might have seemed a descended
vision of Freya, the spouse of the Thundering Deity, before whom some bold
sea-king or champion bent with an awe which no mere mortal terror could
have inflicted upon him.'
 THE STANDING STONES OF STENNIS

The Stone of Odin formerly stood on the east side of this circle. Minna
had offered to pledge her faith to Cleveland by the 'promise of Odin' and
Norna of the Fitful Head had married her lover by the same rite. This stone
differed from the others only in the fact that it had a round hole near the
base. Lovers who found it inconvenient to be married by a priest, or who
wished to plight their troth by some unusually solemn vow, resorted to this
stone, and a promise here given was regarded as sacred and never to be
broken. The marriage ceremony was peculiar. The couple first visited the
Circle of the Moon, where the woman, in the presence of the man, knelt and
prayed to the god Woden, or Odin, that he would enable her to perform all
her obligations and promises. They next went to the Circle of the Sun, where
the man in like manner made his prayers. Then they returned to the Stone of
Odin, where, the man standing on one side and the woman on the other, they
joined hands through the hole and took upon themselves the solemn vows of
matrimony. Such a marriage could never be broken.
 Scott visited the Stones of Stennis in 1814. Had he arrived a year later he
would not have seen the Stone of Odin, for some irreverent Orcadian broke
it up, probably to help build the foundation of his cottage.

Leaving, with some reluctance, these relics of a civilization more than a

thousand years old, we resumed our journey toward Stromness. The town
lies on the slope of a hill, resembling Lerwick in this respect and in the
closeness of the houses to the sea. Some of the buildings stand so near the
water that parts of the bay look like a miniature Venice. Our motor-car
frequently occupied the entire width of the street, sidewalks and all, as we
twisted our tortuous course for a mile along the main thoroughfare. From the
high ground behind the town, we had a fine view of the sea, and across the
sound, the great towering island of Hoy, the highest and most impressive of
all the Orkney group. On the western side a long line of precipitous cliffs,
rising a thousand feet above the sea, opposes an unbroken front to the full
force of the Atlantic. At the western end as we saw it from above Stromness,
the rocks form the profile of a man's face, not so stern as that in the
Franconia Notch of the White Mountains, but having rather a more genial
look. It is said to resemble Sir Walter Scott, a likeness which, I confess, I
could see only when I shut my eyes and thought of Chantrey's bust.

The island of Hoy plays an important part in 'The Pirate.' It was the
original home of Norna when the old witch was a handsome young girl. The
Dwarfie Stone, where she met the demon Trolld, and bartered her life's
happiness for the power to control the tempests and the waves of the sea, is
on the southwest slope of Ward Hill, the highest peak of which rises to a
height of over fifteen hundred feet. It is in a desolate peat-bog, two miles
from the nearest human habitation. The stone is about thirty feet long and
half as wide. Hollowed out of the interior is a chamber, with two beds, one
of them a little over five feet long. It is difficult to conceive why any human
being should have taken the trouble to cut out the rock for a hermitage or
place of refuge, or why any one should seek so desolate an abode. Tradition
therefore affirmed that the rock was fashioned by spirit hands and was the
dwelling of the elfin dwarf, Trolld. It was to this island that Norna conducted
Mordaunt after he had received a wound at the hands of Cleveland.

It was at Stromness that Scott, in 1814, made the acquaintance of Bessie

Millie, an aged dame who made her living by selling favourable winds to
mariners at the reasonable price of sixpence each. The touch of insanity, and
the strong influence she possessed over the natives of the island, who feared
her power, were strongly suggestive of Norna. This old sibyl related to Scott
the story of John Gow, whose boyhood was spent in Stromness. This daring
individual had gone to sea at an early age and returned to the home of his
youth, a pirate, commanding a former English galley of two hundred tons
which he had captured and renamed the 'Revenge.' He boldly came ashore
and mingled with the people, giving dancing-parties in the village of
Stromness. Before his real character was known he became engaged to a
young woman, and the two plighted their troth at the Stone of Odin. The
houses of his former neighbours were plundered and many acts of insolence
and violence committed. At length, through the exertions of a former
schoolmate, Gow was captured with his entire crew and speedily executed at
London. The young woman journeyed to London, too, for the purpose of
touching her former lover's dead body. In that way only, according to the
superstition of her country, could she obtain a release from her vow and
avoid a visit from the pirate's ghost, in case she should ever marry. Gow's
brief career furnished an excellent model for Cleveland, though the author
endowed his 'pirate' with some very commendable qualities which the
prototype probably did not possess.

Bessie Millie, the old hag of Stromness, needed, in addition to her own
eccentricities, only a few touches of the gipsy nature, to make her a good
'original' for Norna. A local preacher in the parish of Tingwall, whom Scott
met on his visit to Shetland, is said to have suggested Triptolemus Yellowley.
Three or four families, in whose homes the novelist was a welcome visitor,
have laid claim to the honour of supplying the 'originals' of Minna and
Brenda Troil. These two delightful characters, however, were no doubt
intended merely to embody the ideal of perfect sisterly affection, and
external resemblances to real people, though such might easily be fancied,
were probably far from the author's purpose.
 STROMNESS, ORKNEY

For the rest, the great charm of 'The Pirate' lies in the expression of the
novelist's enthusiasm for the fresh and fascinating scenery of a wild country,
where strange weird tales are wafted on every breeze, where the quaint
customs of past ages are still retained, where Nature reveals herself in a
constant succession of new and ever captivating forms, where the rush of the
wind and the roar of the sea impart fresh joys to the senses and fill one's soul
with renewed veneration for the Power that rules the elements.

As we sailed away for Aberdeen, it was with very much the same feeling
which Scott expressed at the close of his diary of the vacation of 1814.[2] He
said he had taken as much pleasure in the excursion as in any six weeks of
his life. 'The Pirate' was not written until seven years later, but it carries as
much freshness and enthusiasm as though it had been composed on the
return voyage.
 [1] CROSS-SECTION OF THE BROCH OF MOUSA.
a, a. Rooms in Circular Wall, connected by a rude spiral stair.
b, b. Windows opening into inner court.

[2] The diary, containing a full account of the visit of 1814, in a lighthouse yacht,
to the Shetland and Orkney Islands, the Hebrides, and the northern coasts of
Scotland and Ireland, is printed in full in Lockhart's Life of Scott.

CHAPTER XXII
THE FORTUNES OF NIGEL

Hitherto our exploration of the Scott country had revealed a never-ending

succession of ruined castles, palaces, and abbeys; of picturesque rivers,
lakes, cataracts, and quiet pools; of seashores where thunderous waves
dashed against precipitous cliffs; of quaint villages and queer-looking
dwelling-houses; of weird caverns and strange monuments suggesting the
superstitions and fantasies of bygone ages; of pleasant meadows, wild
moors, rounded hilltops, and rugged mountains; of a thousand tangible
objects of interest which had in some way suggested to Sir Walter the theme
for a poem or story. But when we reached Scott's London, the camera, which
had faithfully recorded all the other scenes, refused to perform its function.
The tangibleness of the subjects had ceased. My lenses have excellent
physical eyes but no historical insight. They insist upon seeing things as they
are and will not record them as they once existed. The London of Nigel
Olifaunt has completely disappeared and in its place a new London has
arisen. To photograph the city of to-day as the scenes of Nigel's adventures,
would be like painting the 'Purchase of Manhattan Island from the Indians'
with a background of fifty-story 'sky-scrapers.' From such a task my faithful
camera shrank, and I was obliged to lay it aside, to turn over, for several
days, the pages of some huge piles of books on Old London in the British
Museum.
 Lockhart, who places 'The Fortunes of Nigel' in the first class of Scott's
romances, says that his historical portrait of King James I 'stands forth
preëminent and almost alone.' This, indeed, is the whole object of the book,
—to picture the London of King James and the personal peculiarities of that
monarch. Scott was thoroughly saturated—so to speak—with the history and
literature of that period, and especially with the dramas of Ben Jonson and
his contemporaries; and this enabled him to picture the manners of the time
almost as if they were within his personal recollection.

It is an amusing portrait of a pompous, strutting, and absurd monarch

who yet possessed enough learning, as well as ready wit, to gain the title of
'the wisest fool in Christendom.' Through his famous tutor at Stirling Castle,
George Buchanan, who freely boxed the royal ears and administered
spankings the same as to other boys, the King had early acquired a certain
taste for learning. He evinced a fondness for the classics and yearned to
become a poet. He wrote in verse a paraphrase of the Revelation of St. John
and a version of the Psalms, besides prose disquisitions on every conceivable
subject. His conversation, as described by Scott, was a curious compound of
Latin, Greek, English, and the broad Scotch dialect. His tastes, as well as
character, were suggested by the appearance of a table in the palace, which,
says the novelist, 'was loaded with huge folios, amongst which lay light
books of jest and ribaldry; and, amongst notes of unmercifully long orations,
and essays on kingcraft, were mingled miserable roundels and ballads by the
Royal 'Prentice, as he styled himself, in the art of poetry, and schemes for the
general pacification of Europe, with a list of the names of the King's hounds,
and remedies against canine madness.'

A man of medium height and somewhat corpulent, James managed to

make his figure seem absurdly fat and clumsy, by having his green velvet
dress quilted, so as to be dagger-proof, for he was both timid and cowardly.
The ungainly protuberance thus artificially acquired was accentuated by a
pair of weak legs, which caused him to roll about rather than walk, and to
lean on other men's shoulders when standing. 'He was fond of his dignity
while he was perpetually degrading it by undue familiarity; capable of much
public labour, yet often neglecting it for the meanest amusement; a wit,
though a pedant; and a scholar, though fond of the conversation of the
ignorant and uneducated.'
 Sketch Map of London

Contrasting strongly with this weak and ludicrous character, Scott

introduced the sterling qualities of a noble Scotchman, George Heriot, to
whom Edinburgh is indebted for one of her most splendid benevolent
institutions, Heriot's Hospital, where for nearly three centuries the poor
fatherless boys of the city have been transformed into eminent and useful
citizens, honoured and respected in many parts of the world. George Heriot,
nicknamed by the King 'Jingling Geordie,' was the son of an Edinburgh
goldsmith, to whose business he succeeded. At thirty-six years of age he had
the good fortune to be appointed goldsmith to Queen Anne, and shortly after,
goldsmith and jeweller to her husband, then James VI of Scotland. On his
accession to the English throne as James I, in 1603, Heriot followed the
King to London. In those times, and until the eighteenth century, goldsmiths
commonly acted as bankers. Heriot made full use of his unusual opportunity
and laid the foundation of a large fortune. Disheartened by the loss of his
young and beautiful wife, who died at the age of twenty-one, Heriot made a
will leaving his entire property, amounting to £23,625, for the establishment
of the hospital. His picture is thus described in a quotation copied by Scott in
one of his notes: 'His fair hair, which overshades the thoughtful brow and
calm, calculating eye, with the cast of humour on the lower part of the
countenance, are all indicative of the genuine Scottish character, and well
distinguish a person fitted to move steadily and wisely through the world,
with a strength of resolution to ensure success and a disposition to enjoy it.'

The weakness of James is still further accentuated in the novel by the

introduction of his imperious favourite, George Villiers, the first Duke of
Buckingham, whom the King called 'Steenie,' from his fancied resemblance
to the portrait of the martyr, Stephen, as painted by the Italian artists. 'James
endured his domination rather from habit, timidity, and a dread of
encountering his stormy passions, than from any heartfelt continuation of
regard towards him.' The King's favour, nevertheless, made Buckingham the
richest nobleman in England (with possibly a single exception) and the
virtual ruler of the kingdom. The constant companion of the Duke was Baby
Charles, as James insisted upon calling his son, afterward King Charles I, for
whose ruin and death on the scaffold James was himself, all unconsciously,
rapidly paving the way. David Ramsay, the whimsical and absent-minded
watchmaker, who kept shop in Fleet Street, near Temple Bar, was a real
character, who held the post of 'watchmaker and horologer' to James I. His
most famous performance was a search for hidden treasure in the cloister of
Westminster Abbey, by the use of Mosaic rods, or divining rods, which,
according to the current account, failed solely because of the presence of too
many people. The irreverent laughter of these persons caused a fierce wind
to spring up so suddenly that 'the demons had to be dismissed' for fear the
church would fall in on them.

These are the real characters of the story. To identify the scenes a good
map of Old London, will accomplish more than a personal visit. Such a map
need only follow the windings of the Thames, which for centuries was the
great silent highway of London,—a distinction which it did not lose until the
beginning of the nineteenth century. Over the highway passed the royal
barge of Elizabeth, as described in 'Kenilworth,' and it was by this same
method of travelling that George Heriot conducted his young friend, Nigel,
to the presence of the King at Whitehall. For the streets of the city were
narrow and crowded, and rioting, as the result of debauchery and
licentiousness, was not infrequent, so that few cared to ride on horseback,
and carriages, except for the high nobility, were entirely unknown. So the
Thames was the one great artery through which flowed both the business and
social life of the city.
 When King George and Queen Mary, at the recent coronation, passing
through the Admiralty Arch in Trafalgar Square, turned into Whitehall on
their way to Westminster Abbey, their route lay between great rows of
government buildings, lined with thousands of cheering subjects. Had
conditions remained as they were in King James's time, this part of the
triumphal procession would have been entirely within the limits of their own
royal palace.

Whitehall Palace, originally built in 1240, was for three centuries called
York House, or York Place, taking its name from the fact that it was the
London residence of the Archbishop of York. Under Cardinal Wolsey it was
rebuilt and refurnished in a style of magnificence excelling anything ever
before known in England and equal in splendour to the best in the palaces of
the kings. With the fall of Wolsey in 1529 the mansion became the property
of King Henry VIII, who changed the name to Whitehall, and proceeded to
enlarge and improve both the palace and the grounds. A plan published in
1680 shows that the buildings, with their courtyards and areas, then covered
twenty-three acres. It included a cock-pit and a tennis-court, on the site of
the present Treasury buildings, and the Horse-Guards Parade was then a tilt-
yard. These arrangements sufficiently suggest some of the favourite
amusements of royalty. Henry VIII took great delight in cock-fighting and
James I amused himself with it regularly twice a week. Queen Elizabeth
found pleasure in tournaments and pageants, and it is recorded that in the
sixty-seventh year of her age she 'commanded the bear, the bull, and the ape
to be bayted in the Tilt-yard.'[1]

King James I found the palace in bad repair and determined to rebuild it
on a vast and magnificent scale. Inigo Jones, one of the most famous
architects of his time, was employed and made plans for a building, which, if
completed, would have covered an area of twenty-four acres. Judging from
drawings now in the British Museum, it seems a pity that this admirable
project was never fully executed. Only the banqueting-hall was finished, and
this still remains as the sole survivor of the Palace of Whitehall. Its chief
historical interest lies in the fact that, from one of its windows, Charles I
stepped out upon the scaffold where he was beheaded.

If we were to follow ancient custom and use the Thames for our highway,
as did two hundred peers and peeresses at the late coronation, we should
now row down the river and land at Charing Cross Pier, where we should
find the remnant of the sumptuous palace built by 'Steenie,' the Duke of
Buckingham. This is the York Water Gate, formerly the entrance to the
Duke's mansion from the Thames, but now high above the water,
overlooking the garden of the Victoria Embankment.

Continuing down the river, we should stop at Temple Pier, and visit the
Temple Gardens, where Nigel walked in despair, after his encounter with
Lord Dalgarno in St. James's Park, and where, it will be remembered, he fell
in with the friendly Templar, Reginald Lowestoffe. The Temple property was
granted in 1609 by James I to the benchers of the Inner and Middle Temple
for the education of students and professors of the law. Oliver Goldsmith
lived in Middle Temple Lane, and in the same house, Sir William
Blackstone, the great English jurist, and William Makepeace Thackeray, also
had chambers. Dr. Johnson lived in Inner Temple Lane, as did Charles
Lamb, who was born within the Temple.

Coming out into Fleet Street, we should stand before the figure of a
griffin on a high pedestal, which marks the site of Temple Bar. In Scott's
time it was an arch crossing the street, and in the time of King James, merely
a barricade of posts and chains. When the coronation procession passed this
point, King George V, according to ancient custom, paused to receive
permission from the Lord Mayor to enter the City of London. The civic
sword was presented to the King and immediately returned to the Lord
Mayor, after which the procession resumed its march.

Within Temple Bar and on the north side of Fleet Street, between Fetter
Lane and Chancery Lane, is St. Dunstan's Church, built in 1832 on the site
of an older church building. A few yards to the eastward, according to Scott,
was the shop of David Ramsay, the watch-maker, before which the two
'stout-bodied and strong-voiced' apprentices kept up the shouts of 'What d'ye
lack? what d' ye lack?'—very much after the fashion of a modern 'barker.'
This was the opening scene of the novel, though not suggested in the
slightest by the Fleet Street of to-day.

On the opposite side a narrow lane, called Bouverie Street, leads down
toward the river along the eastern boundary of The Temple, into
'Whitefriars,' or Alsatia, where Nigel was compelled to take refuge for a time
in the house of the old miser, Trapbois. The 'Friars of the Blessed Virgin of
Mount Carmel,' otherwise known as the 'White Friars,' established their
London house in 1241, between Fleet Street and the Thames, on land
granted by Edward I. This carried with it the privileges of sanctuary or
immunity from arrest, which were allowed to the inhabitants long after the
dissolution of the religious houses. Indeed, before the suppression of the
monastery, the persons of bad repute, who had flocked to the district in great
numbers, were wont to make so much disturbance with their continual
clamours and outcries, that the friars complained that they could not conduct
divine service. The privilege was confirmed by James I, and in his time, as a
consequence, 'Alsatia,' as the district came to be called, was one of the worst
quarters in London. It was the common habitation of thieves, gamblers,
swindlers, murderers, bullies, and drunken, dissipated reprobates of both
sexes. Its atmosphere, thick with the fogs of the river, fairly reeked with the
smell of alehouses of the lowest order, which outnumbered all the other
houses. The shouts of rioters, the profane songs and boisterous laughter of
the revellers, mingled with the wailing of children and the screaming of
women. The men were 'shaggy, uncombed ruffians whose enormous
mustaches were turned back over their ears,' and they swaggered through the
dirty streets, quarrelling, brawling, fighting, swearing, and 'smoking like
moving volcanoes.' They waged a ceaseless warfare against their proud and
noisy, but not so disreputable, neighbours of The Temple.

Coming back to our imaginary trip by river (for we really visited these
sites either on foot or by taxi-cab), we continue down the river, passing
under Blackfriars Bridge, and stop for a moment at Paul's Wharf, near where
Nigel found quarters in the house of John Christie, the honest ship-chandler.
Journeying onward, we pass under London Bridge, which in James's time
was the only means of crossing the river, other than by boat. It was then
overloaded with a great weight of huge buildings, many stories high, under
which passed a narrow roadway. At the southern entrance was a gate, the top
of which was decorated with the heads of traitors. All the buildings were
finally cleared away in 1757 and 1758.

Passing under London Bridge we soon come to the Tower of London,

which the unfortunate Nigel entered through the Traitor's Gate. From the
time of William the Conqueror, by whom its foundations were begun, until
the reign of Charles II, the Tower of London was used as a palace by the
kings of England. It has been said that the 'strong monarchs employed the
Tower as a prison, the weak ones as a fortress.' It was as a prison that the
Tower achieved its unenviable fame in history as

London's lasting shame;

With many a foul and midnight murder fed.

In its dark precincts many of the noblest of England's men and women found
themselves prisoners, the majority of them perishing upon the block. Anne
Boleyn and Katherine Howard, wives of Henry VIII; Lady Jane Grey and
her husband Guildford Dudley; the father[2] and the grandfather[3] of
Dudley; and Sir Walter Raleigh were among the most famous of these
victims. Nigel was confined in the Beauchamp Tower, where many
distinguished persons were imprisoned. The inscriptions to which Scott
refers may still be seen, including that of Lady Jane Grey, though it is
probable that this was written by her husband or by his brother, who is
supposed to have carved the device of the bear and ragged staff, 'the emblem
of the proud Dudleys,' which is an elaborate piece of sculpture on the right
of the fireplace.

To complete our survey of the scenery of 'The Fortunes of Nigel,' we

have to continue our journey down the Thames until we land in Greenwich
Hospital and the Royal Naval College, which occupy the site of the old royal
palace, formerly called Placentia or Pleasaunce. It was a favourite royal
palace as early as 1300, though it passed into the hands of the nobility and
came back to the Crown in 1433 on the death of Humphrey, Duke of
Gloucester. It was the birthplace of King Henry VIII and of Mary and
Elizabeth. The building was enlarged by Henry VIII, James I, and Charles I.
Charles II caused it to be pulled down, intending to carry out some ambitious
plan, but succeeded in erecting only the building which is now the west wing
of the hospital. Back of the palace is an extensive park of one hundred and
ninety acres. This is where Nigel unexpectedly encountered the King, at the
very climax of a stag-hunt, frightening him nearly to death; and here he was
unceremoniously arrested and hurried off to the Tower. The park still has
herds of deer, though they are no longer hunted, and a row of fine old
chestnuts, originally planted by command of Charles II, who laid out the
enclosure. In the centre is a hill, surmounted by the famous Royal
Greenwich Observatory, from whose meridian longitude is reckoned and
whose clock determines the standard of time for all England.

Just as 'The Heart of Midlothian' had produced a vivid picture of life in

Edinburgh during the reign of George II, so 'The Fortunes of Nigel'
reproduced the life of London in the time of King James. For this brilliant
study, not only of the curious monarch, but of the strange manners and
customs as well as the lawlessness of the city, which the King's folly did so
much to create, the novel has been generally accorded a very high rank
among Scott's productions.

[1] Quoted from Sydney's 'State Papers,' in The Old Royal Palace of Whitehall, by
Edgar Sheppard, D.D.

[2] John Dudley, Duke of Northumberland.

[3] Edmund Dudley, the notorious agent of King Henry VII.

CHAPTER XXIII
PEVERIL OF THE PEAK

'Old Peveril' was one of the pet nicknames with which Scott was dubbed
by some of his young legal friends in Parliament House, and he carried the
sobriquet for the remainder of his life, taking great delight in it. He did not,
however, take much pleasure from the composition of the novel, finding it a
tiresome task from which he could only find relief by planning its successor.
It marks the beginning of a malady which ultimately proved fatal. Scott
concealed the symptoms from his family, but confided to a friend that he
feared Peveril 'will smell of the apoplexy.' It proved a heavy undertaking,
covering a period of twenty years of exciting history and three distinct, but
widely differing, localities, namely, Derbyshire, the Isle of Man, and London
in the time of Charles II.

In the high Peak country of Derbyshire, about fifteen miles west of

Sheffield, lies the village of Castleton, nestling snugly at the foot of a
somewhat precipitous hill. Away back in the time of William the Conqueror,
a son of that monarch received a grant of large estates in Derbyshire, and
selected the very summit of this steep and almost inaccessible rock as the
site of his castle. His name was William Peveril and the bit of a ruin which
still remains, high in the air above the village, is called Peveril Castle. We
reached it after a very hard climb, by a steep path running zigzag across the
face of a long grassy slope. It was scarcely worth the effort, for the 'castle' is
now only a small square tower, of no interest whatever, except from the fact
that it gave the name to one of the Waverley Novels.

The domain of this William Peveril seems to have extended far to the
south of Castleton, and included in it was the site of Haddon Hall, a fine
mediæval mansion, picturesquely situated on the river Wye, between
Bakewell and Rowsley, and still in wonderfully good repair. The Peverils
held the property for about a century, when they were deprived of the lands
by King Henry II. In 1195, Haddon came into the possession of the Vernon
family, who continued to reside there for nearly four centuries. The last of
the name was Sir George Vernon, who became celebrated as the 'King of the
Peak.' His large possessions passed into the hands of his youngest daughter,
Dorothy, whose elopement and marriage with John Manners, youngest son
of the Earl of Rutland, threw about the old mansion that atmosphere of
poetry and romance which has ever since been associated with it. To me, the
most pleasing part of the old hall is the terrace and lawn, back of the house.
A flight of broad stairs, with stone balustrades, leads to Dorothy Vernon's
Walk, which is shaded by the thick foliage of oaks, limes, sycamores, and
other forest trees, for which the park was once famous. Grassy mounds mark
the boundaries of the lawn, and the castle walls, with their wide windows
and luxurious mantle of deep green ivy, add a delightful charm to the
picture. This is further enhanced by the romantic associations of the place.
Traditions say that John Manners, who, for some reason, was forbidden the
opportunity to visit the fair Dorothy openly, hovered about these terraces
disguised as a forester, seeking brief interviews in secret. On the night of a
ball in celebration of her sister's wedding, Dorothy slipped into the garden,
and passing through the terrace made her way across the Wye over a quaint
little bridge, built just large enough for a single pack-horse, and now known
as the 'Pack-Horse Bridge.' On the other side, John waited with horses, and
the two rode away to be married. Whatever may have been the objection to
the marriage, events soon adjusted the affair and Dorothy Vernon became the
sole owner of the mansion. It has remained ever since in the possession of
the Manners family, the Earls and Dukes of Rutland.

In his description of Martindale Castle, the seat of Sir Geoffrey Peveril,

Scott doubtless had in mind, to some extent at least, this more pretentious
mansion on the original property of the Peverils, rather than the uninteresting
tower at Castleton. He refers to Haddon Hall in one of his notes as having
suggested a certain arrangement of rooms, and in his account of Lady
Peveril's dinner to the Cavaliers and Roundheads, in honour of the
restoration of King Charles II, he makes use of two large dining-rooms,
which Haddon Hall could readily supply, but which might be difficult to find
in any ordinary mansion of the period.
 THE PACK-HORSE BRIDGE, HADDON HALL

Lady Peveril, it will be remembered, in spite of the 'good fellowship' and

'reconciliation' which the banquet was to celebrate, dared not permit the rival
factions to dine together, so she adopted the unique expedient of placing the
jovial Cavaliers in the hall, while the strict Puritans occupied the large
parlour. The great hall of Haddon is about thirty-five feet long and twenty-
five feet wide. At one end is an ancient table, many centuries old, and at the
other is a minstrel's gallery, with carved panellings and ornamented by stag's
heads. A great open fireplace gives a suggestion of good cheer, even to the
bare room. Back of this is another large dining-room on the oaken walls of
which are some fine old carvings. It also has a large open fireplace, above
which is the motto

Drede God and Honor the Kyng.

The room was formerly larger than now and may have been in the author's
mind as the scene of the Puritan part of the banquet. Haddon Hall, however,
although it doubtless furnished some few suggestions, must not be taken as
an 'original' of Martindale Castle. The novelist never felt the necessity of an
exact model, but freely used the places with which he was familiar for such
suggestions as they might chance to furnish. In his later work he often
described localities which he had never visited, frequently doing so with an
exactness suggesting the most intimate personal knowledge.

This was true of the Isle of Man, which Scott had never seen, but which
he describes in 'Peveril of the Peak' with great accuracy, relying for his
information upon Waldron's 'Description of the Isle of Man,' published in
1731.

After an interval of several years following the events in Derbyshire,

Julian Peveril appears as a visitor at Castle Rushen, in the southern end of
the Isle of Man. Tradition says that this ancient castle was founded in the
tenth century by Guttred, the son of a Norwegian chief named Orry, who
took possession and with his sons and successors reigned for many years as
kings of the Isle of Man. Later the Earls of Derby ruled as monarchs of the
island and Castle Rushen was their royal residence.

The traditional castle of the Norwegians was replaced in the thirteenth

century by a strong fortress of limestone. This was partly destroyed by
Robert Bruce in 1313 and remained in ruins for three centuries. It was then
rebuilt by the Earls of Derby in its present form. The central keep is a strong
tower with walls twenty-two feet thick at the base and about seventy feet
high. It is surrounded by an embattled wall twenty-five feet high and nine
feet thick. On the tower facing the market square is a clock presented in
1597 by Queen Elizabeth.

In 1627, James Stanley, celebrated as 'the great Earl of Derby,' became

lord of the island. This nobleman was executed in 1651, charged with the
crime of assisting Charles II before the battle of Worcester. During his
absence in England the Castle Rushen was heroically defended by his wife,
the brave Charlotte de la Tremouille, Countess of Derby. William Christian,
popularly known as William Dhône, or 'the fair-haired William,' had been
entrusted by the Earl with the care of his wife and children. Whatever may
have been his motive, the Receiver-General, by which title Christian was
known, surrendered the island without resistance, on the appearance of the
Parliamentary army, and the Countess was imprisoned in the castle. After the
Restoration of Charles II, the Countess accused Christian of treachery to
herself and brought about his execution in 1662.

These were the main facts which, coming to the novelist's attention
through his brother, Thomas Scott, who for several seasons resided in the
Isle of Man, attracted his fancy and suggested the writing of 'Peveril of the
Peak.'

Peel Castle, to which the action of the story is soon transferred, stands on
a rocky islet off the western coast of the island. It was once a vast
ecclesiastical establishment and now contains the ruins of two churches, two
chapels, two prisons, and two palaces. Of these the best preserved and most
interesting is the Cathedral of St. Germain, a cruciform building, some parts
of which were built in the thirteenth century. In a crypt below was the
ecclesiastical prison where many remarkable captives were confined, the
most notable of whom was Eleanor Cobham, wife of Humphrey, Duke of
Gloucester, who was accused of witchcraft and of devising a wicked plot to
kill the King and place her husband upon the throne.

Higher up on the rock are the remains of St. Patrick's Church, in the walls
of which are some good examples of the 'herring-bone' masonry indicating
great antiquity. The walls are thought by antiquarians to date back to the fifth
century. Behind this is the remarkable round tower, about fifty feet high,
which Mr. Hall Caine has introduced in 'The Christian.'

The custodian, when he learned of our interest in Sir Walter Scott, could
scarcely restrain his anxiety to show us Fenella's Tower. This is a bit of the
surrounding wall, containing a small square turret. Beneath is a narrow
stairway, forming a sally-port, through which entrance could be gained to a
space between two parallel outside walls. In time of siege, soldiers could go
out and fire at the enemy from this place of concealment through openings in
the walls. If hard-pressed they could retire to the tower and pour scalding
water or hot lead upon an attacking body. In Scott's tale, Julian Peveril,
seeking to leave the castle by this stair, is intercepted by Fenella, who is
anxious to prevent his departure. Finally eluding her grasp, he hastens down
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