The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1878-05-23
THE SOUTH SEA BUBBLE.

IN l7ZOIlWSHty 'slA JSai ol'Ni WV De''N
of England was chartered, the King rec
commended the Commons to consider the
proper means to lessen the national debt.
This was the prelude to the famous South
Sea scheme, which was projected by Sir
Iohn Blunt, a man possessed of all the
cunning plausibility and daring required
for such a supendous undertaking. He
explained his plan to the Chancellor of
the exchequer and one of the Secretaries
of State, overruled their objections, and
they adopted his project, Thev saw great
advantage to themselves in the design,
which was impaired in the name Of the
South Sea Company, Of which Blunt
was director, and influenced all their
proceedings. The pretence for the
scheme was to discharge the national
debt by reducing all the funds into one.
The company offered to unite the whole
of these debts, ,amountingto nearly b3I
ooo, 900, at 5 per cent till I727, and after
that period at a per cent. For this they
offered to pay 63 100000.
To oppose the scheme, the same priv
ileges. Then the South Sea Company
increased their offer to e. 500, 900, and
prevailed, This government preferences
caused frenzy of SPECULATION Large
premiums we're paid for the refusal of the
company's stock, which rose from 100 to
500, some of its directors were created
Baronets, for their great services pro
spective-to government, and the stock
soon rose to 1000. Arufce and exag-
geration were used to maintain this un
natural elevation. Inestimable markets
and valuable acquisition in the South
Seas were promised. and mines of hidN
den treasure were mysteriously spoken
ofby the agents of the South Sea scheme.
The public mind was dazzled, and all
classes became seized with a mania for
this and other wild speculations and rash
undertakings. Credulity was amazing,
promises were abundant, the thirst for
gold was never before so general and in,
satiate, and numerous rival and delusive
schemes sprang up to profit by national
lunaCy while it lasted. 1t was said that
the total amount of sums proposed to
carry on these projects exceed d 63oo,-
ooo, 900 sterling, which was estimated at
more than the value of all the lands in
England,
The end approached before the year
1920 expired. The South Sea Company
grew jealous of some of its rivals, and
commenced lawsuits against them. A
general panic seized the inf tiers of the
various bubbles They rapidly col
lapsed; and in one month, even South
Sea stock fell from $50 to I75.-Alarm
seized the directors. They promised a
Christmas dividend of 90 per cent, and
50 per cent for the next twelve years.
But John Bull had now began to believe
in disbelief and refused to believe John
Blunt, Mems fears we're in proportion
to their previous hopes. Thousands of
families were reduced to beggary; many
died broken hearted; many left England
aud perished in exile; and every South
Sea director was insulted when recogni-
zed in the streets.
A Parliamentary committee investiga
ted the transactions Of the company. Its
governors, directors, and officers were
summoned before the House o Com.
mons. The Chancellor OF the Exchequer,
who had been benefed to the amount Of
68oo 900, was sent to the Tower and or
dered to deliver up his estate for the ben>
eft ofthe sufferers Certain members of
the House, who BELONGED the compaS
ny were expelled; and partial relief to the
sufferers was furnished by giving them
G7 900, 900 of the profits which the com,
plny, in their corporate capacity, had de
rived from this cruel aud gigantic fraud.
Thus ended the mons rous and memorae
BILE deluslon, alike the result of human
craft, Credulity and covetousness, and
there is nothing to compensate mankind
for its existence, except the gloomy light
of experience which dawned when it eX>
pired.
That light has been a safeguard to ma
ny individuals and may corporations
since that time; but human nature in the
main remains substantially the same, de,
spite all precedents We have seen men
who in their regular business would Cau-
tlously weigh and coldly scan every cir.
cumstance that might affect the gain or
loss of 500, throw the profits of life of
honorable toll into scheme which prom.
ised 50 per cent. The fevers of CONNER
cial life at present are much the same as
those Of one hundred and fifty years ago,
though happily not of so formidable and
contagious a nature. Specula ion is rife,
but knowledge checks it; and though our
own country once had a period of wild
cat" currency, the banks of Boston were
never tarnished with it,
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