The herald., 1837-04-25
From Smolletts History Of England
Effects OF the south Sea Sche me.


Continued from the Herald Of April 18th.
The parliament being assembled on the eighth day
of December his majesty expressed his concern for
the unhappy turn of AFFAIRS which had SO deeply at
fectcd the public credit at homes he earnestly desired
the commons TO consider of the most cffectual and
speedy methods to restore the national credit, and nix
ii upon lasting establishment. The lower house
too much interested in the calamity, to postpone
the consideration of that subject The members
seemed to lay aside all party distinctions, and we
with each other IN promoting an inquiry, by which
justice might be done to the injured nation. Ihey or
dered the directors to produce account OF all the'r
proceedings. Sir Joseph Jekyl moved, that select
committee might be appointed to examine particu-
1ars of this transaction. Mr. Walpole, now paymas-
ter OF the forces, observed that such method would
proract the inquiry while the pqplic cIedt Iay IN
ed scheme for restoring public credit but, before
he would communicate this plan, desired to know,
whether the subscriptions OF public debts and ncum-
brances money subscriptions and other contracts
made with the South Sea company, saould remain in
the present state. After warm debate, the question
was carried in the affirmative with this edition
Sunless altered for the and relief of the propre-
tors, by general court of the South Sea company,
or 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, 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 engrossmen OF nine millions OF the
capital stock Of the bank and East lRda company, as
proposed by these companies, would contribute very
much the restoring pablc credit bill upon this
resolution was brought I'M passed through both hou-
ses and received the royal assent Another bill was
enacted into law for restraining the subgovernor,
deputy governor directors, treasurer under treasurer,
cashier, secretary, and accomptants, OF the South
Sea company, from quitting the Kingdom, nll the end
of the next session of parliament. and for discovering
their estates and effects so as to prevent them from
being transported or alenatcd. committee OF Sc
crecy was chosen by ballot to examine all the books
papers, and proceedings relating 10 the execution oil
the South Sea act
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
tates of the criminals whether directors not drec
tors ought be conscaed to repair the public los
ses He was seconded by lord Carteret, and even by
the earl Of Sunderland. The duke OF Wharton de,
clared he would give up the best friend he had should
he be found guilty He observed, that the nation had
been plundercd in most fragrant and notorious man
ner therefore, they ought to find out and punish the
offenders severely, without respect 10 persons. The
sab and deputy governors the directors and officers
of the Soath Sea company, were examined at the bar
of the house. Then bill was brought in disabling
them enjoy any Office IN that company, or IN the
East India company, or in the sank of England
Three brokers were likewise examined, and made
great discoveries Knight the Treasurer Of the South
Sea company, who had been intrusted with the Sc
crets of the whole affair, thought proper to withdraw
aued te spprehend him; and another for preventing
any of the directors from escaping out OF the king
dom Al this period, the secret committee informed
the house of commons, that they had already Disco
vered train Of the deepest villany and fraud that hell
ever contrived TO ruin a natoa 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 and principal officers of the
South Sea company, well as 10 seize their papers.
An order made 10 secure the books and papers Of
Knight, Surman, and Turner. The persons Of Sir
c. U.l.. nl..nt vAl, .L.-s
Sir John Fellows, and Mr.. Grgsby, were taken into
custody Sir Theodore Jansen, Mr.. Sawbndge, Sir
Robert Chaplain, and Mr.. Eyes, were expelled the
house. and apprehended Dir. Alslabe resigned his
empoyments of chancellor Of the exchequer and lord
OF the treasury; and orders were given TO remove all
directors of the South Sea company from the places
they possessed under the government
The lords i'm the course 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
that this practice was notorious and most danger
pus species of corruption that the directors Of the
South Sea company having ordered great quantities
of their stock to be bought for the service Of the COM
pany. when II was at very high pnce and on pre-
ience 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 candestine man.
ner sold their stock 10 the company, such drec
tors and officers were guilty OF notorious fraud and
breach OF trust and their so do was one great cause
Of the unhappy of AFFAIRS that had so much Affect
ed public credit. Many other resolutions taken
against that infamous confedcracy, in which, howev
er the innocent were confounded with the guilty.
Sir John Blunt refusing TO answer certain interroga
tories a violent debate arose about the manner in
which he should be treated. The dske Of Wharton
observed that the government Of the best Of princes
was sometimes rendered intolerabc to their subjects
by bad ministers; he mentioned the example Of Sea-
nus who had made division in the imperial family,
and rendered the reign of Claudius hateful to The Ro
mans Earl Sianhope conceivIng this reflection was
II team fnfa
He undertook to vindcac the ministry; and spoke
with such vehemence produced violent headache
which obliged him TO retire. He underwent proper
evacua aons and seemed TO recover; but, next day,
On the evening, became lethargc, and being seized
with suffocaton, instantly expired The king deep
Iy regretted the death of this favee minister which
was the more unfortunate, as il happened at ssch a
critic conuncture and appointed lord
40 I'll his lace Of secretary. Earl Sanhope was sur
yiyed but few days by the other secretary, Mr.
CrarQs who died Of the smallpox the 10th day OF
February Knight the cashier Of the South Sea
company being sexed at TIrlemont, by the vigilance
of AIR Gandet secretary TO Mr.. Leathes the British
ves,dent al Brussels was confined in the citadel of A,
werp. Application was made to the court of Vienna
that he should be delivered TO such persons 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
dried m any other country. The house OF commons