The daily crescent., 1851-11-11
10
JOSEPHINE,
The south Sea RubhIa.

The history of the British "South Sea Bubble
is pregnant with instruction to the multitudes who
are unwilling to earn their bread by the sweat Of
their brow,' but hope to obtain wealth by some
sudden stroke of fortune.
In I'LL, the debt of Grent Britain amounted 10
nearly 500 100000. A company of merchants
took this debt upon themselves; government
agreeing to pay them interest upon it for certain n
time. The monopoly of the trade to the Pacific,
then called the South Seas, was granted to them,
and they were incorporated under the name Of
" The South Sea Company"
AT thls time the most visionary ideas were held
OF the vast riches of Western America Glowing
tales oil the inexhaustible treasures Of the gold and
silver mines OF Peru and Mexico, captivated the
English people. They thought that il was onlv
necessary to send cargoes Of cotton and woolen
goods to the coast to be repaid hundred fold, in
gold and silver ingots, by the natives
The company, then, which had the exclusive
right to this lucrative traffic. could not fail to rise
rapidly in public favor-and all pressed forward to
secure share of the coming wealth.
The most extravagant rumors were circulated by
interested persons. Treaties with Spain wers
spoken of to further the interests Of the company,
Mexico was to empty her gold mines into the ava
rIcious bosom of England, and silver would become
as plentiful as iron. Every hundred pounds in-
vested with the Company, would produce hundred.
yearly to the lucky stockholder. Some opposition
was made to the scheme, in Parliament, by far.
sighted statesmen, but the maddening infatuation
had injected even that body, and the patronage Of
government was eventually secured The frenzy
LOT speculation began to rage to an extraordinary
degree. The whole nation turned stock. .jobbers
Exchange Alley was blocked up by crowds, and
the vicinity was impossible from the number Of
carriages.
In order to fan the fame and make it source OF
stll greater proft,-the company would deos,e
large dividends, and then immediately open their
books for new subscriptions. Such was the fran.
tic eagerness of all ranks to speculate in these
funds-that in few hours of one day nearly forty
millions OF dollars subscribed for stock repre-
senting only eight millisns The inordinate thirs,
for gain infected all classes of society," Hundreds
oil new stocK companies sprung up like Jonah 3
gourd, and, like it, perished in u night, Mapv
thousands invested their whole fortune. with ,bs
South Sea Company. Widows and orpbans M,
sessing annoities, exchanged them for its stock.
This continued rising in value, till it reached
premium OF one thousand per cent.
The bubble was then full blown, and ready IN
burst. Utter ruin was impending over half the
nation The alarm was given when it was under
STOOD that the most prominent managers had sold
out their own shares. A general panic followed.
Every effort to restore confidence proved fruitess.
ana within eight months from the time of its crea.
eon this monstrous fabric of fraud, credulity and
infatuahon had fallen forever.
It's crafty directors had amassed immense wealth.
BY selling out when the fever was at it's height.
when the bubble burst, there were notes of the
company IN circulation to the amount of more than