The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1873-03-04
The Credit MobIIier and tho South
Sea Bubble.

Sea Bubble.
tPfOm tho Cincinnati Commercially
The question Of expulsions from Con-
prcss on account OF the Credit Mobilier
scandal, brings into comparison that i'm.
mense speculation which excited England
a century and q hall ago, and led Ia the
expulsion from Parliament OF number
OF its promoters. The South Sea Bubble
Of the year 1870 followed close upon tho
heels OF the famous Mississippi scheme Of
John Law, the theater of the latter having
been Ia France, while the former had its
origin in England. The origin OF the
South Sea Company was in u grant OF
monopoly to trade with South America,
and the shares were blown into an i'm
mensc premium by tho rumorGd wealth
Of the gold and silver mines OF Peru,
Chill and Mexico. The points Of resem.
bsncc between the South Sea scheme OF
our English ancestors and the Credit Mo.
blier scheme Of to-day are striking, il
not numerous. In both cases the shares
traded in were baited with tho bribe Of
the most alluring profits, and un.heard.of
dividends were declared. III the South
Sea speculation, as in that of the Credit
MObilier, the promoters tempered with
tue National Legislature, and placed the
shares where they would do the most
good" In both. cases the chief victims
were the most innocent and contding,
and in both tho purchase Of votes was
openly charged as u public scandal. Both
gave rise 10 o protracted parliamentary
Investigation, and in the case oil the South
Sea Company, no less than six members
Of Parliament were expelled Tor their con.
nectiOn with the affair.
This immense stoCk-jObbing operation,
in tue course OF which the coveted shares
rose from tho par value of Gl00 TO & 900,
and brought not only merchants and mem.
OeFs Of Parliament, but Clergymen, bish-
ops and ladies OF high degree into Elk.
change alley TO speculate in South Sea
s'OcE, threatened at one time to dem0ral-
Re the whole community. 1t introduced
INTO the sober breasts OF EnglishmGn ie.
yer OF stock gambling such as has never
Oeen eQualed before nor since. New and
C.himcrical schemes for making their par.
HiclpaIors suddenly rich, sprang up every
Iay; and hundreds Of share companies
Setestarted, under the countCnance OF the
'OIld capitalists Of London, and the prime
mobility. The sums proposed to be raised
ny these bubble" companies amounted,
one time, TO three hundred millions
sterling, which exceeded the value Of all
Iae lands in England. All other probes.
I'ohs and employments were neglected ~
uesplScI, while speculation was rampant
4 pH, all. On the day that the South Sea
phi passed the House Of Commons, in
:AWil, li2O, by majority Of liz against
o. the stock rose to 800 Tho most On
HSVagant stories of profit 10 BE- realized
nom the privileges oil the company were
circulated and believed. The Compa-
ny Of merchants trading IN the South
Seas would he theGichest the world ever
saw, and every hundred pounds invested
III would produce hundreds per annuul
lothe stockholders. On the Goth OF MAY
Ile stock had risen TO 500, and two third,
OF those who held Investments In lht
public funds (consols) had exchange
nose securities for the South Sea stock
a week later it took a sudden leap 10 500
mere tie prevalent insanity underwent
ulomentary check. Sellers appeared, ant
Tue stock fell TO $40. The Directors Wprr
alarmed, and gave orders TO buy. b.
sMIllul manipulation, "washinCs," ami
.ae most extravaganza putTery, the mOrke
was again rallied, and by the lst OF Au.