The daily union. [volume] (Washington [D.C.]) 1845-1857, 1851-06-25
From Chamber Miscellany.
Tns syutA sea scheme.

Iha sclpme NJ
MASTERPIECE" The company, which consisted OF mer-
chants. undertook the payment OF large quantity OF
government debt, amounting To ilo,OO0,OOO and IN
Trturn for This they invested with numerous priv
iIsves among which was monopoly of The trade 10 the
South Sea usually called the Pacihe ocean.
The idea was, that by means oi commerce with Peru,
Mexico and Other god-producng countries, Britain
would soon be filled with the precious metals, Owing,
however TO the refusal OF Spain 10 permit The commerce
with her transatlantic domnlons, no voyage was made
under the companys auspices MI l7l7 when single ship
set out and this slight thread OF connection between
Britain ana the South Seas snapped by the outbreak
of a war with Spain in the following year.
Sull the company Hourished as monetary concern;
and in 1870 il and the Bank OF England made rival OF
fers to government, contracting for the payment OF the
debts OF the Stale, now amounting 10 about E3l 100000
The ultimate offer OF the South Sea Company was,
that in for undertaking the discharge OF the
debts should be secured per cent interest for four
years alter which government was TO be at liberty TO
redeem the debt paying only per cent interest TIL the
redemption should be effected, Alter VAIN discussion
in the House OF Commons between the friends OF the
South Sea Company and the friends of the bank the offer
OF the former declared the advantageous, and
leave given to bring IN bill to that effect.
Immediately The South Sea Company occupied the
public eye, and every person who possessed capital de-
sired TO invest IN concern OF such splendid promise
The day alter the passing Of the above resolution the
companys stock from 100 10 800; and notwhstand
ing all the predictions OF the more prudent men OF the
nation, among whom Mr.. Walpoe, II continued 10
rise. The con,agion OF the Mississippi phIensy had
reached England and although by this time the failure
of Laws scheme might have been evident, this did not
Il
Great efforts Were likewise made by Sir John Blunt the
chairman OF the company and other interested parties TO
initiate the public mind with the most extavasant runors
and anlicpations, with view still further TO raise the
price of stock and by the time that the bl-aiter pass
ing the House OF Commons by majority OF l72 10 55
and the House OF Lords by majority OF So to l7re-
ceved the royal assent the price had almost risen to
400. " 1t seemefat that time as ii the whole nation had
turned stock -jobbers. Exchange Alley was every day
from the number OF carriages Everybody came to pur
chase stock-every fool aspred TO be knaye'"
The apparent OF the South Sea scheme led TO
many other projects equally exavagau In all The share
lists speedily hied up, and enormous trathc
ned IN shares, while OF every means were re-
sorted to to Them 10 artificial value IN the mar
ket. These schemes soon received the name OF bub
bles-the most appropriate that Imagination could de-
wise Persons OF distinction, OF both sexes, were deeply
engaged in all these bubbles those OF the male gong
to and coffee houses TO meet their brokers' aud
the ladies resorlng for the purpose 10 the shops OF
milliners and haberdashers The Prince of Wales be-
governor OF one company, and is said 10 have
cleared E4o 900 by has specuauons SO great the
confuson OF the crowd in the Alley that shares the
same bubble known to have been sold the
instant 10 per cent higher at one end OF The Alley than at
the other
Unlike the M ssssippi scheme, which compica
ted Affair." and really founded reasoning OF
able man, however false that reasoning may have BEEN
the South Sea project was a pure and simple bubble
blown by the breath OF knaves; and accordngy It's
plosion instantaneous. When the price stock had
reached It's highest The chairman of the company, Sir
John Blunt and other influential persons, sold out aud
as this became known the fail commenced. On
sndden the STOCK tell IRON 900 10 TOO. public
ing OF shareh then held, winch many speech
delivered by The principal parties concerned most
of them scouting The panic cry groundless, aud de
clang that the affairs OF the company stood well
In vain all The attempts to arrest the prog
Of the alarm Down, down, down tell the stock ;
ull about tue middle OF September it had reached 400
Various are the conecIures, says Mr.. Bfoderlck, NJ
p in a letter to Lord Chancellor Middleton, "why the
South Sea directors have suffered the cloud 10 break so
early. made no donbl that they would 90 when lney
found II 10 their advantage. Their most considerable
men have drawn OUT securing themselves by the losses
OF the luded, ihoughess numbers, whose understand
ings have been oyeued by avarlcesnd the hope of
king mountains out OF mole hs Thousands OF families
will be reduced to beggary The CONSERVATION mex
pressibe tue rage beyond description and the alto
gether desperate that DO any plan scheme
so much thought OF Tor averiing the blow so tina,
cannot pretend oguess what is next 10 be done " Where
any Of the directors OF the company appeared in the
Streets they were mobbed and nsulied, and riots OF
Iious character were apprehended.
The government, the utmost alarm, sent dispatches
TO the King, who was then in Hanover requesting his
immediate return, and endeayored with Mr.. Walpoles
assistance, 10 induce the Bank OF England 10 come for
ward and support with It's credit The sinking company
The bank consented TO contract by which il agreed 10
circulate the companys bonds but, finding the agree
ment would prove ruinous TO ITSELF Tetracted H. and left
the company 10 lis fate Before the end of September the
demolition Of the scheme complete, and South Sea
stock selling al 1875. The se progress and fall of
the scheme had occupied but eight months.
1t would be impossible TO compute the amount OF suf
fering TO which the South Sea bubble gave rise; the
number OF persons whose health and hopes blasted
tne huhpei ol ldniLes VINO were involved IN rum we
may allude TO the OF Gay the poet Gay" says Dr.
johnson, in his Lives OF the Poets, :" had in that dsas
uous year present from young Cfaggs Of South
Sea Stock and once supposed himself TO be master OF
100000 HIS friends persuaded him 10 sell his shares ;
but he dreamed OF dignity and spendor, and could
bear 10 obstruct his own fortune He then impor-
tuned 10 sell much wonld purchase one hundred
pounds year Tor life which, says Fenton, will
make you Of clean shirt and shoulder OF mutton
every day This counsel was rejected; the profit and
principal lost; and Gay sunk under the calamity so
low, that his life became in danger
cry from all parts of the nation for ven
geance against the directors OF the company-a who had
made themselves notorious by the support they had given
to the South Sea scheme Members in their places
IN Parliament and demanded the punishment Of the guilty
parties. 6 look upon the cont1vers lf the vanous
South Sea scheme" said Lord Molesworh as the par
IIcides OF their country, and should be satisfied TO see
lhem hed up ike the Roman PARTICLES in sacks and
thrown INTO the Thames" To appease the popular in
dignahon, Parliament obged TO proceed hastily and
even perhaps cruelty, not distinguishing sufficiently be
tween me innocent and the guilty. bill brought in
10 restrain tbe ooutb Sea disasters and all officials of the
company from leaving the kingdom, from dsposng Of
nef eHects ior twelve months bat, notwithstanding this
Dll might the treasurer OF the company, contryed TO
escape TO the continent with many important books and
documents The House OF Lords, after long examina-
uon passed resolution declaring the conduct Of certain
oil he ocals OF the company have been scandaous and
fraudulent and committed i've OF the directors including
he chairman Sir John Blunt, the custody OF the black
od The first proceeding OF the House OF Commons wa
70 appoint secret committee 10 inquire into the whole
an az Al the instance OF this committee -four members
tne house who also directors OF the South Sea
Ssso"pahy-Sr Robert Chaplain, Sir Theodore Jannsen
MI. oatwohdge, and Mr.. Eyes-were unanimously ex
Peneu rom Parliament. About the same time Mir Asia
o'e' tueh Shah eNur OF the EXchequer who il was dis