American telegraph. [volume] (Washington [D.C.]) 1851-1851, 1851-10-29
IFrom the New York SUM-

l. 3
The sOuth-sea Bubble.
| The history of the British ''South Sea Bub.
BILE" is pregnant with instruction to the multi
| tudes 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 Great Britain amounted
to nearly $50,000,000. A company of mer-
chants took this debt upon themselves, govern
ment agreeing to pay them interest upon it for
certain 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 this time the most visionary ideas were held
of the vast riches of Western America. Glow
ing tales of the inexhaustible treasures of the
gold and silver mines of Peru and Mexico cap
tivated the imaginations of the English people.
They thought that it was only 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 for
ward to secure share Of the coming wealth.
The most extrayagant rumors were circulated
by interested persons. Treaties with Spain were
spoken of to further the interests Of the COM
into the avaricious bosom of England, and silver
would become as plentiful as iron. Every hun
dred pounds invested with the company would
produce hundreds yearly to the lucky stock
holder. Some opposition was made to the
scheme, in Parliament, by far-sighted states
men; but the maddening infatuation had infect
ed even that body, and the patronage of govern
ment was eventually secured. The frenzy for
speculation began to rage to an extraordinary
degree. The whole nation turned stockholders,
Exchange alley was blocked up by crowds, and
the vicinity was impossible from the number of
carriages.
In order to fan the flame and make it source
of still greater profit, the company would de-
clare large dividends, and then Immediately
open their books for new subscriptions. Such
was the frantic eagerness of all ranks to spec
ulate in these funds, that in few hours Of one
day nearly forty millions of dollars were sub
scribed for stock representing only eight mil
lions. The inordnate thirst for gain infected
all classes of society. Hundreds of new stock
companies sprung up like Jonah's gourd, and,
like it, persisted in q night Many thousands
invested their whole fortunes with the South
Sea Company. Widows AMI orphans possess
ing annuities exchanged unem for its stock.
This continued rising in value till it reached a
premium of one thousand per cent.
The bubble was then full blown, and ready to
burst. Utter ruin was impending over half the
nation. The alarm was given when it was I'M
derstood that the most prominent managers had
sold out their own shares. A general panic fol-
lowed. Every effort to restore confidence proved
fruitless, and within eight months from the
time Of its creation, this monstrous fabric of
fraud, credulity and infatuation had fallen for
ever.
It's crafty directors had amassed immense
wealth, by selling out when the fever was at its
height
When the bubble burst there were notes of
the company in circulation to the amount of
more than one thousand millions of dollars.
The CONSERVATION was inexpressible-the rage
of the swindled people intense beyond descrip-
ton.
Hundreds of families were ruined-the veal
thy became beggars-and the working classes
lost their hard earnings through the bankruptcy
of their employers. Multitudes saw starvation
staring them in the face The voice of wo and
imprecation resounded throughout the land.
Parliament was Immediately summoned, and
the members acclaimed with much warmth.
Lord Moesworth declared, "that he looked
upon the contrivers and executors of the villa
nous South Sea scheme as the parricdes OF
their country; and he should be satisfied to see
them tiedi sacks, and thrown into the Thames"
But the government was itself by no means
free from guilt. Two ministers of state, seve-
raj members of parliament, and many of the
nobility were deeply implicated.
The Prince of Wales had cleared immense
sums by his speculations. Investigations into
the affairs of the company disclosed scenes of
infamy, and 'instances of fraud and corruption
disgraceful alike to the morals of the offenders
and to the intellects of their dupes." Parlia-
ment afforded a partial relief to the general
distress by wrestling from the delinquents a
portion of their illgotten gains, and dividing it
among the sufferers. But it was long before
public credit was restored, and the South Sea
Bubble remains the greatest example in his
tory of commercial gambling striking warn
ing to those who would "mdke haste 10 be rich. "