The herald., 1837-04-25
From Smollett's History Of England
Effects Of the South Sea scheme.


Continued from the Herald Of April 18TH
The parliament being assembled on the eighth day
of December, his majesty expressed ms concern lot
the unhappy turn of affairs, which had SO deeply al
Sectcd the public credit at home; he earnestly desed
the commons to consider of the most cffectual and
speedy methods restore the nat0aal credit and nx
il up IN lasting establishment The lower house
was too much interested in the calamity, to postpone
the consideration Of that subject The members
seemed to lay aside all party distinctions, ane we
with each other in promoting an inquiry by which
Justice might be done to the injured nation Iney or
dered the directors to produce an account OF all el
proceedings Sir Joseph Jekyl moved that select
committee might be appointed, to exaaine 'heParucu
liars Of this transaction. Mr., Walpoie, now paymas,
lei az the forces observed that such metnod would
protract the inquiry while the puoilc cIeoil lay III
ed a scheme for restoring public credit but, before
he would communicate this plan desired to know,
whether the subscriptions OF public debts and lncum-
brances, money subscriptions anu o.neI com.,aos ;, :;
tho present state. After a warm debate, the question
was carried in the affirmative with this addition
eUness altered for the and relief OF the proprc-
tors by general court OF the South Sea company,
ar set aside in due course Of law" Next day Wal
pole produced his scheme, to lngraft nine millions OF
South Sea stock into the bank Of England, and the
like sum into the East India company, on certain
conditions The house voted, that proposals should
be received from the bank and those two companies
on this subject. These being delivered the commons
resolved that an engrossment OF nine millions OF the
rapita stock Of the bank and East lada company as
posed by these companies, would contribute very
much to the restoring pablic credit bill upon this
resolution was brought IN, passed through botn nou-
ses and received the royal assent. Another bill was
enacted into law for restraining the sub-governor
deputy governor directors, treasurer under
cashier, secretary, and accomptants, OF the oouth
Sea company from quitting the klHgdom ull the emu
f the next session of parliament and Tor discovering
their estates and effects, as to prevent them from
being transported or alenatcd committee OF Sc
crecy was chosen by ballot, 10 examine all the books
papers, and proceedings, relating to the execution oi
The lords were not less eager than the commons
TO prosecute this inquiry, though divers members IN
beth houses were deeply involved IN the guilt and IN
famy Of the transaction Earl Stanhope SAID the es-
fates of the criminals whether directors or not dec-
tors ought to be conscated, TO repair the public los
ses He was seconded by lord Carteret, and even by
the earl Of Sunderland. The duke OF Wharton de,
cIared he would give UP the best friend he had should
he be found guilty. He observed, that the nation had
been pundercd in a most fragrant and notorious man
ner therefore, they ought to find out and punish the
offenders severely, without respect 70 persons. Inc Inc
nf The South Sea company, were examined at the bar
of the house. Then bill was brought In disabling
them 10 enjoy any Office in that company, or IN the
East India company, in the sank OF England
Three brokers' were likewise examined, and made
urea discoveries Knight, the Treasurer OF the South
Sea company, who had been lntrusted with the Sc
crets ofthe whole affair." thought proper TO withdraw
any Of the directors nom escaping out Of the King e.
dom. Al this period, the secret committee informed
the house Of commons, that they had already Disco
vered train Of the deepest vllany and fraud that hell
contrived TO ruin natloa which IN due time they
wsud lay before the house; in the meanwhile, they
thought il highly necessary to secure the persons Of
some of the drec .ors and principal officers of the
Soath Sea company, as well as TO seize their papers.
An order was made the books and papers Of
Knight, Surman and Turner. The persons of Sir
George Caswell, Sir John Blunt Sir John Lambert
Sir John Fellows, and Mr.. Gngsby, taken into
custody. Sir Theodore Jansen, Mr.. Sawbndge, Sir
Robert Chaplain, and Mr.. Eyes, were expelled the
house, and apprehended Dir. Aislabe resigned his
employments of chancellor of the exchequer and lord
OF the treasury; and orders were gwen TO remove all
directors Of the South Sea company from the places
they possessed under the government
The lords, in the Of their examination, dis
covered that large portions Of South Sea stock had
been given to several persons in the administration
and house of commons for promoting the passing of
the South Sea act. The house Immediately resolved,
thai this practice was n notorious and most danger
Gus species of corruption that the directors Of the
South Sea company having ordered great quantities
of their stock be bought for the service Of the
pany when il wag at very high price, and on pre-
tence OF keeping up the price Of stock and at the
sam time several of the directors and other officers be-
longing 10 the company having, in clandestne man
ner, sold their own stock TO the company such drec
tors and officers guilty OF notorious fraud and
breach of trust and their so do ng was one great cause
OF the unhappy turn Of affairs that had 50 much affect
ed public credit. Many other resolutions were taken
against tnat III WHICH, nOWev-
err the innocent were confounded with the guilty.
Sir John Blunt refusing to answer certain nerroga-
tories a violent debate arose about the manner i'm
which he should be treated. The dske Of Wharton
observed that the government OF the best of princes
was sometimes rendered ntolerable TO their subjects
by bad minister's he mentioned the example of Sea-
nus, who had made a division in the imperial family
and rendered the reign of Caudus hateful to The Ro
mans. Earl Stanhope concelving this reflection was
aimed al him, seized with transport Of anger
He undertook to vindicaic the ministry; and spoke
with such vehemence as produced violent headache
which obliged him TO retire. He underwent proper
evacuaiions, and seemed 10 recover; but, next day.
in the evening became ethargic, and being seized
with suHocatlon, instantly expired. The king deep
Iy regretted the death OF tins averite minister which
was the more unfortunate, as IL happened at such
critic conjuncture; and he appointed lord Townshend
to I'LL Misplace of secretary. Earl Stanhope was sur.
yiyed but a few days by the other secretary Mr.
Craggs who died of the smallpox on the 10th day Of
February Knight, the cashier Of the South Sea
company being seixsd at Tlrlemont, by the vigilance
of MIR Gandet, secretary TO Mr.. Leathcs the British
resident at Brussels confined in the citadel of
werp. Application made to the court Of Vienna
that he should be delivered TO such persons as might
be appointed to receive him but he had found means
20 interest the states OF Brabant in his behalf They
insisted upon their privilege granted by charter, that
person apprehended for crime IN Brabant should be
tired N any other country. The house Of commons
EXPIRE ssed their Indignation at this frivolous prcence