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Show Nobles Disgraced and Commoners Ruined by South 5ea Bubble I I I OelHOSE MINISTERS AND PARLIAMENT WERE IMPLICATED IN THE SOUTH SEA BUBBLE GEORGE. At length cyrruotton, I a yenersi Poen. deluge all, and avarice, creeping on, Sped, like a low4rn m!st, Atrel hid the sun. Statesmen and patriot plied alike the stocks; Peeresses and buticr shared the box, And judges jobbed. and bishop; hit the town, And mighty dukes narked cz.-d- s for half a crown Brittin was sunk in Iterez sc.-ti'charms."' Did - ', w . ', 0 Irlon'eattsr oiirS did illarai-ii-:i7141; tnadties, it hili tOffirt N PreSSifill in the great' Sotrth ::. i ; . en ..a.i.i.e. hundr ed s of ...the ii.r0 190 ' .nxte..e;:i, WiligalIgV at. At, smdir ai r .1:'. . f ' ii JI I , , - :'111v.lk-i- . , - 14, , : ' I ' , - w) ' 1 , ; , , . , :lett remember when the South Sea was said to he lal TAM Oxford's brat anti must ' be star eil at nurse sow. the him; has adopted it and calls it his beloved child. though perhaps you may say. if be loxes It no more than his beloved son, it may not be saying much; but he loves It as notelt as the Durbess of and that - sa3 Mg a good deal. 1 wish It may thrive, for inany of my friends are deep its it: I a has, you were so, too." ' , K, . ; , bliny of the literary men of the tittle sere as deeply interested in the ie hente as ipre men of affairs and unscruputoni ie.hicniett. Prior also wrote be Stylft, "I ow tired of polities and lost In the South Sea- - The roaring of the Iva es and The madness ,,f the people were Justly put together. It is all wilder than At Anthony's dream, and the,bagatelle is toore solid than anything that has been endeavored here this year." Goy was in it. too. Craggs. one of the secretaries conaected with the was making such a the good.thing eut of it that Ito wenerousl poet .with a few t,re n Welt so increased iit apparent value that jay at one time supposed hinise,f to be worth 110,saat 116 triends begged bint to conart his shares into money. but the madness had touched lion and he refused lie eveu wouid not liaten to Fetuou's plea to sell a; much as would insure him -- a clean thirt and a ehoulder of mutton every day." Befere long Oily, like most of the other holders of South Sea shares, found himself stripiest of all his fortune, actual and prospectite. Although the bubble reached its greatest amplitude la 1720, it bad it. beginning in tjneeu Anne, reign, when a committee appointed in 1711 to inquire into tbe debts of tile ;lacy, whien exeeeded 5.000,4$ult. recommended that with many other debts, they be thrown into one stock. Amounting to iit,471;:.n. A fund was fofitied-fopaying. an iuterest or annuity of six per cent until the prIncipal shouid be discharged, M with this was granted the iminopoly of a projected trade In the South Seas vested in the property of tory bithu debentures and other public securities incorporilted for thik eurpose. Such was the ' thlatera upon wicieh the south Sea Coutpaiy was founded.' The supposition ,sitcs that England would be able to cinry on a profitable trade with. South Wu was expleited in much ., Americaithe w!ealth el manner were the possibilities.of the the as same, 'i 31isslasipiX V Hey by Lan. It was:said ,tO.The Sir John Blunt who thought of ' ll)Lantig Lan.'sméthed to Erglanii. and hevommunitilted hitt ideado LohnAislabte,Chaneellos of the EtcLbequer. who interested Harley. Earl of Oxford. , The wealtholtthe-Inçathe mines with their untold stores ot gold and silver in Soutta. America, aronsed the greedy atutiltign of the English. soti withstanding the fact-th- at Spain. held sway met .. Peru and Chill, it was generally belk4ed that it war only necessary for the alert...L06 of 'England to send forth ships carrying their sures to be exchanged for the orecious tnitibt ut those countried at a profit of a thousand per cent. The report was aridly se-i' I ,cepted that Spain would eede four ports on the South lAmericin coast. she shouki do this no one I '' stopped to inquire.:Why Thee were vague rumors of a 1 ' -- pre-ent- . , - s . . . i !!' i . . - 1,4 5C E NES IN LONDON DEPICTED BY wwe,...c, treaty with Spahr ridautageous to Eug Mud. lett web ing to support tbe Idea that the King ef Spain had ally intention If giving away hiA valuable rights. In 1717 the eetitpatty toek over i2,4otsik1si 'hero t State in return for further et,twessbet, debts, mid in to he wiling etit of Spain. 4.11ere1 to take over the entire nationel tibt of 01.31strasi awl to pay 1.3..010.-- . tato for the pri liege, altbmigh it to,lied only five per tent for eigitt years and four per ceut afterward on fowls it loq ed to convert In order to ttet the blil Parliament the teeters set about "currying the !anise.- - A lietititAis rnontit of stock to the value lli574,090 Was placed the hands of four of tbe threetoN. It was seld at a dens prkes. the total a mots otiug to t1.2.;10.X...5. This ; as to be a holdieg 44' the ompany for the benefit of pretended purchaseri aIthough no arrangement vas made for the delivery of the stock and uo money or security was given in payment ler it. was really iissiened, where it would do The.stis-the most good, with persons of influen(e, as developed later. Walpole vigorot sly opposed the entire South Sea sehente. It v,otild. zi.erteci, cow lit tuitice the 4.tattiterottS Nbri ,b1,1)ing arrt won't' tit el tile Trictit'e of the Itatittn front inthisity and trade. It w iis a 'tire devoy the unwary hi 'making them part with the earnings of tuber ter ituag:t.ary wealth. Its pria 'pie was au evil of the first magnitudeto raise artificial values el stock by exciting and keeping up the general Infatuation and by promising dividends vitt ef funds that never could be adequate to tbe purpose. If it stteceeded, which be &ORA the directors, meuld become masters of England. and if it tailed the e"tint ry letzt,t1 he plunged in desolation and ruin. But the Nttrk of currying.- - had been done so thoroughly that the South Sea selienue won over that presented by the Bank of En4land by a vote of almost three to otiv. Every effert m as made during the two month, that the bill was in the House to raise the lele of shares. and one day they soared from 130 to 3011. The story was recited that a, treaty. with in as about to be made that Amid give the English tree ;wets-- to the South Ainericaa---Mines- . were assured that the investment of 100 mould bring a huh:tired per annum as tuctuste. The stok rose to 100 and stood at Jm0 the day that the bill passed. The real assent was given in April, 172o, and by August the shares were selling at 1,000. bubbling became the rage. Exchange Alley became a ,vond Hue Quito arupeix. The hooks opened for the' first subscription April 1715; the first million pounds' worth of sham was doubly arubseribed, aid the second, third and fOurth subscriptions were equarlY eueceSsfel. Interest was. stimulated front time to time by proutises of extra dividends.- - Many sold their holdings at the right time, when the price ,of the stock had mounted to 1,000 a share, among them Sir John Blount and the Duke of Portland. The buidde, trembling, gave evi Mr. Broderick, a dences,of an humluent coPapse. Member of Parliatrient, to Viscount Middieto tkttember 13; Various bre the conjectures V, by 'the South Sea Company should allow the cloud to break an early. I wade no doubt they would do $1. 'when they saw that it WSts to their advantage. They have stretched credit be far beyond what it would bear that specie became inadequate to support, It Their most important men have drawn out, securing themselves by losses of the deludv.ti whotte understandings have been ruled by avarice and the hope of making mountains out of molehills. Thottsands of families will be reduced to begary.. The consternation is inexpressible, the rage beyond description, and the case altogether so desperate that t do not see any plan or echetne so much as thought of for averting the blow." Ten days later, the stock still falling, be wrote again: t. kingdom. He Was expelled from thP lione of COW WOW; and beta to the Tower. a 111dg12f-to- . that w,, celebrated by the buildine te lenifires aiiii ereat a, li bulk er iiii. ficune Joking all over the country. u a!: ,f Turner. was also confiscated. Sir Grerge Catoctin A Co eas also eepelled I r"li, tliii lioiee em,1,,,. committed to the Tower lull fined i'..,:oi,ia,i H G H. land was acquitted, but the count ry tt a, ont lin'ed of his guilt. chasing stock of any agent or director of the Bout's James Craggs. Sr, expil'ael on the ,nrne (lay tie Sea Company for the use of any member of Parliageneral belief being that he trsik 1isiin. aete.eigs ment. during such time as the South Sea bill WaS some perilous ,held that he grieved hirn,o,if to death ',ending in Parliament wouid be considered a notoriover the loss ilf his son. Joules Criggs. Jr oho had ous and dangerous art. died fire weeks before. Also. it resolved that since ,ieveral members When all the directors or the South Sea Cotr4ey bane sold their own stuck to the company n a clanbad beeu tried a total of C.:MI4,04st ;Nils ...fie-teebreach and destine manlier they are guilty of fraud their estates. each rums being , erii itol to re. from dot oust. Xis MIAk resigned and remained away iiit ziciortlain a stipulated sum with illicit to from Parliament until the inquiry should be finilug to his circumstances awl statiou ished. Meanwhile, Knight. the 'treasurer of the Gibbon. tbe historian, graedsou er l'Attatd ;;Ib colitis-my. having packed op all trhe levoks and papers. while writing of jilts decision pa:- - litter. mid bon. managed l'o elude the authorities alid escape to the that the bill of pains and pentteiis. ea a retee Continent. A re aid I ;1.ta.k) Was offered for his active statute to punish offences ellicl dal not ilbt apture, but be ai4waieal to the courts of Brabant at the time. The well were cetteielied to iiiiinTo e him up. This greatly end Austria refused PP aal it eT etriet value of their upon oath-thenraged the English anti there Was talk of trade reI pretented from disuating of or a:lynx:in,: auy !,, taliation, btii.v. Idle the matter was pendiug Knigut. of them. Also agalust, a bill of It:tin, and petta- tho bad been ti!qaitlid la prison. escaped. to there was always the right or et er Oue of the in. Welds of the S,tisiJa Was the atheard by counsel, but in this caae it ha.' out be . Villarton. tack upon Laird Stanhope by the permitted. Vague reports of rootoda ,o., dies aL, lieu Lord .Stanhope rose to reply he was laboring woollen; were accepted as evideuce of ilinitaal la uniter tremendous excitement. Sutidenty wet' were condeue.ed eLo ir:e tistod to Ws toad and he tell. dying Loon after his .tent, and absent and unheard, aud arbitrarily soieieted to 'emote' from the House. lines und ferleitures. maile its first report The Cominitlee 011 for it:eeto the ilott-February DI In cooducting their in- iit After dispobing of the men respotisilee restore turned was attentiou belie! bubble the wet bad with almost iusuperablet l:big vestigativab they of public. credit. The capital biox'k ,f Ile South itooLs had beet: lemoved, others bad i t difficulties. been tor-- or otherwise mutilated and numerous I. Sea Company . t the end cif l'ilei eas 1.:',7eaeillat, rasioni and insertions had tended to baffle them. re: which stork L24.50teutao tt as allotted to the pro,It was learned. houever, :hit fictitious stock had prieturs. the tetiutluing 1.13,30PUOtto rlovacutin; upeani been disposid of to promote the passage of the bill. profits from the popular delusiou. A of Le,o00,01.SJ was taken from the subserilwrs aA This stork had beV II iii the hands chiefly of Sir John 6d Blunt. Mr. Edward Gibbon and Knight to distribute proprietors, waking a divideud of about i.ili swh thot also ordered ctwae hundred. the among members of the goiertlinclit aod their etliinek. thAls to facilitate the passage of the toll. The amyl.- as had borrowt.1 money (row the rieutia tea ael thintoeut was said to hate Lieu somewhat to this Company upon stock actually trans14 rid free al, be bhould of time order: the at borrowing j,ledged all dewauds upon paying ten per cent of the sus To the Earl of Sunderland .1.50,000 a About f11,lato,000 had teeiii lent at borrowed. Duchess of Ket.dall the King's misaressr and whey raised. ' were when time unilaterally prices Countess of Platen tare 'Haifa mistress) 10,0Lar Uab lir Her two IiieveS prkes had suuk to uortuai about feloo,eke back. ceived Secretary Craggs MAIO g Charles Stanhoue While the South Sea bubble Witsi to .10,01.al tSword Blade Company inflation all kiLdis of minor bubbles ere bleinLO,OlAt e legal some that, Also Stanhope had received t250,tatti as the differa withiu died eeme that day ad part wieveo in and &lieu ence price of some stock obtained through the fortnight. All wauuer of hands of Turner. Caswell az Co., but his name had Pated in the epheweral and ofteu foollett projeas been partly ertised to Stangate. Aislable Tbe rrinve of Wales was goveruor of the Walt, had an account with the sante firm to the arocauut . Copper Company aud wee said to have cleared ilkPeke of cart,451. OM before this particular bubble tiers!. The lu the third subscription these names were down... of Bridgewater started a scheuie for tie liepreve al for the following amountre.-.- newt of ',undo!' and Westuguster, and the Duke strauSlat Aislabie 170.00U Chaudos had a Isittillar project., ,Oue of tlai se Ja4ines Craggs, Sr . of bubbles, awe that was blown by au unkauss 650,totar Earl of Sunderland venturer. was eutitled "A cotupauy for karrYing,a ,Itatain0 Charles Stanhope an undertaking of great advantage, but uubol1 !0,': 47.0,io ta b Because of the absence of Isnight it was linposailat w A ube ilium; auhiat itwiaas" prositieco bluesissstuaeldedilitti3.aitt to carry the inquiry farther. but a resolution was passed condetuniug the conduct of the dhectors and at f IOU each. Each subst ribee was WAXY a t i, Members of Parliament and the admiutstration con.. share and iitthe-eu- d of one mouth the before at 7 , other 1:4 verted with them. , Undertaking would be revetited lad the lhe boots II Charles Stanhope. Who wala one of secretaries could be paid on each share. Between the of the Treasury. was the first to be tried. 'lie proeine eclock iu the morning and three lidock Is tested that his affairs bad Neu managed by Kuight it fterutiop., louu shares were sold. and that erased at and by Turner, Caswall lc Co., and he knew nothing the projector dbuippearqd aud was never beard -j about the investment. lie was acquitted by the oar-roagain. margin of three votes,' largely through family 11 Influence, especially thiq of his father, Lord ChesterNeat 4moolt will appear the last el "The Lore el . le field. This verdict caused great discouteut, and 5g11 anciect the deal will with Mossy" eTticles,, It the nest one to be tried, had to bear the brunt . Prfoowor" Irina. A political prisoier peroortig yid' ...:r of the whole matter. No ene had the courage to be daughter, ter a seeks home thring bit speak in Ms behalf. the temper of the people being large fortune which he has secreted. tr. letter b 11. of it was and be totivicted of baying prowas,. what lowed by SIM 611.1S01111C112D4int aria certification os'oi tboted the South Sea scheme with a view to his own .tleetk !; The, person receiving the letter is exorbitant profit and having combined it ith the seed oseaty. to peg. the- - sieth coo ti4 travelog IP: directors- to ruin public trade end the credit of the S odor expenees. t' It II ht ii.-- Um$10,41-.A.;.'.2- BOBBLE. ii A Cl It i f , ROBERT WALPOLE WHC, OPPOSED SOUTH 5EA BUBBLE AND LABORED FOR RESTORATI011 OF CREDIT j bubble,;. enclosing nothing more selistantial than ti Hie ambient air. but rellertiog . the radiant hopes Of atmk..... --, sands ichli pot (iniv sew their .A.,,--hop.) s dissipated fit mats! but z their :ill hen the hub , lost bleu burst after their shurtlived dance before the dazzled public. Never has titer been anything quite like this bubbling period 4)f almost two hundred years ego. Oceasionally since then one big bubble has been successfully floated, but before (Alters. could be blown it has anished. and wryer siert the days of the South Sea Babble has an entiro. iii community been so thoroughly obSessed MO Sperious a form of speculation. Tile Sea Bubble took its suggestion from the MO. situdppi Company which John Law had pushed irlth such unprecedented stireess in France. The folly of Paris was duplicated in that of MOTO Stahl Tin:00n. The Duchess of Ormoode. Is. 17'20. said: . to Dean Swift, April , 1 rte comipany ), ea e 3et owe to no determination, f,,r they are in swill a wood that they kuow not which way to turn. By seVcral gentlemen. lately come to town. I perceive tiait the very name of a South Sea man grows abominable in every county. A g,rat many goltbanitins hay( already rim off. and wore will dilly. I question 1.1)taber a thirdnay. a fourthof them ,an 'land it. Front the scry beolioliag I founded my judeotent on. the maxim that ten ,wlikb is More than our running cash) could not circulate one hundred tuillions. beyond hih t,tir tatVer credit is extended. That. therefore. whenever that should lasamo, kioubtful, be the cause what it U4111111, our noble state maebine wouid fall to the ground." All were now as eager to sell their South Sea shares as they had before been mad to buy. Tirusauds were in waut and the entire financial structure of the nation was shaken to itS fonittlatious. At this point. under pressuic, the Bank )f Elogiand attempted to come to the rescue by circulating the bonds or the South sea Compauy. At first there was'a rush to buy these bonds. but ati the stocz of the conipally continued to fall the bowls n ere di, credited, aud goldsmiths api bankers who bad loutteti Otooey to the South Sea 0,1110111y closed their doors and fled, aud the Swoid Blade Company, the chief trashiers of the South Sca Couittaoy, closed its doors, causing' a great run nom the Bank or England. All day money was paid Out by ibis institution nitwit faster thau it came in. Luckily the following day was a holiday, but when business was rt.unted was so fully reeeguized that the South Sea Continuo was a wreck that the bank refused to keep ita contract. In defence of this repudiation it was stated that wily a rough coutract had ioiseti drawn and blank places had been left for the tilling in of itnportant data. It was generally felt that it would lie worse for the country for the bank to fall also tbau for the victims of the South Sea Bubble to take their heavy losses, ruinous aud demoralizing though they were, Tbus ran the obituary of t hisr. extraordinary scheme, as told in the Parliatueutary ilistory: "And thus were seen in eight months the ris.."4 progress and fall of that mighty labric which, being woutid up by mysterious blorings to a wonderfui height, bad fixed the (lea aud expeciatiou of all Europe,- but whose foundations being illusion, fraul. credulity and lulatuation, fell to the ground as soon as the artful management of its directors was - The committee appointed to investigate the South Sca affairs reported that they had found train of 11 deepest villainy and fraud i tat hell could ever contrive to ruin a nation." Many of the highest in the land were suspected of complicity in the infamous busluess. It waa well known that Ministers and Members of Parliament had oohed their bands with it. George I. s as compelled to shorten his stay in Hanover. The country was In no, mind to walt.on royal dalliance. Returning In November the King summoned Parliatneut to meet becetuber ti.' The Inquiry ati begun at once, the directfon being ordered to lay before the ilout,e a complete record of all the proceedings of the company. A resolution Was introduced blaming the cal.litity ta the vile arts of the stock Jobbers and demanding that this iniquitous practice should cease and a Lill was paised restrain; lug directors and other officers from leaving the country and front dispOsing of their estates and other effects. There was a greet hubbub in the House and violent attacks were made upon Craggs. who was connected with the government and with the South ,, Sea Company. Upon the motion of Earl Stanhope, it was resolved that taking In or giving credit for stock.withant valuable 'consideration paid or.secured, or pee PI , h se Is N, ar ho . er at It w. Set oft al I h, Inv ml ha frt art tict forty-thre- art e for Se-re- ry - e. .II fit, jut Ill ti er Ne, the SO me It non s .... d S, tihe eep any Ant It I I.nt Teri trek Pod be Me, Iota rnt, Al Oen Mier ,n111, are a It und, Pori ITTiS Orn ordo on I HU El ' - Ala-tabl- ' rng Moil tors aurv tnda: In a meet dIi led ti ratio lean dada not anne Let tattli ment It and 1 Casty claw! flrr -- r 1 I ill Hint ma |