The Yakima herald. [volume] (North Yakima, W.T. [Wash.]) 1889-1914, 1890-01-16

TO say, the conquered influenced the Con-
querers in sthis smatter-and Norman
peasants commenced 10 ignore shears and
razors The clergy commenced a cru
sade against long hair, one Of them, st.
Wulstan, going so far as to denounce it as
immoral and criminal, and as an absolute
bar to all hopes Of heaven. King Henry
l. and one Of his courtiers once cultivated
curly locks, but were warned in dreams"
not to thus defy and tempt providence.
Serlo, the kings chaplain, preached
against long hair 50 vigorously that there
are at least grounds for supposing that the
portion Of his anatomy covered by his
closely cropped hair contained but min
imum allowance Of brains.
The south sea bubble will ever be re-
membered as marking period Of national
insanity. There was never sound prin-
ciple in the scheme, which enriched u
few and ruined thousands; but for months
men and women fought for the privilege
Of contributing toward it. Public credit
was in bad way early in the eighteenth
century, and Harley's idea was to restore
ii by means Of the South Sea Company.
This company assumed the debt Of El0,-
600, 1000, and was guaranteed interest at
six per cent, and also q monopoly Of the
trade with the south seas. Wild stories
were floated as to the wealth Of the gold
and silver mines Of Peru, Brazil and Mex
leo, and people, who had no idea where
Peru was believed every word that was
said.
In 17l7 the company obtained power to
increase its capital stock, and speculation
became general. The trading business Of
the concern never amounted to anything,
but prospects were always reported bright
and every little transaction was magnifed
into absurd proportions. In 1720 the
company made an offer to take up the
entire national debt, and the Bank Of
England made competitive proposition.
Each concern tried to outbid the other,
but finally the shadow was preferred to
the reality, and the South Sea company's
offer was closed with. Stock ran up
from $50 to 800, and, to add fuel to the
fame, q semi-oflicial report was industri-
ously circulated to the effect that Gibral-
tar was to be traded for some valuable
Spanish possessions in America.
There were few men who saw how the
bubble must hurst and Walpole was Wig
orous in his protests. But no one could
stem the rising tide, and when dividend
Of ten per cent was announced the rush
for stock was so great that 1880, 900
worth was subscribed for in a single
afternoon. In May stock was quoted
at $50 and In June at 500. A slight panic
was caused in the latter month by the
discovery that some Of the merchants
were selling, and stock fell to $50, but the
fall was only temporary, and very soon
four figures were in the quotations.
Again it was discovered that directors
were unloading and general panic was
the result. The bank generously came to
the rescue Of its whilom competitor, but
the directors soon gauged public senti-
ment with sufficient accuracy to convince
them that they had better stand off. As
a result the bubble burst, and the express
sion "South Sea Company Director" at
once became synonymous with fraud"
and "villain."
The speculative mania was taken ad-
vantage Of by many lesser lights in
finance and swindles were as numerous
as sands on the seashore. A man had
simply to hang out small notice board
with the name Of new company, and
subscribers would appear as though they
sprang out Of the earth. One company
was formed to manufacture boards out Of
sawdust, and another prospectus invited
subscriptions to the extent Of 81 900, 900
to place on the market aperpetual motion
wheel. A third corporation was designed
for the encouragement Of the breed
ing Of horses, and for the improving Of
glebe church lands and repairing and re-
building parsonages and vicarage houses.
All three Of these concerns existed on
paper only, but the stock was Hoated
without difficulty and was soon selling at
premium.
When the fever was at It's height O
brilliant idea occurred to one Of the finan-
cial geniuses Of the day. He issued a
prospectus calling for subscriptions for
carrying on an undertaking Of great ad- |
vantage. but the details not to be divulged. |
The idea spread that the company had
certain secret processes for almost coin |
ing money, and there was no lack Of
applicants. The capital was equal to |
about $2,500,OO0, divided into 5000 |
shares. Only $40 was asked as deposit, |
and for this sum an income Of $500 |
year was guaranteed" The promoter |
was mobbed by men all day, not by men
to denounce and unmask him, but by
men and women who were afraid they |
would be too late to secure any stock. |
By night he found he had taken in about |
q thousand persons, and considerably |
over 10000. There was Just time to
catch the tidal train to the continent and
he caught it. That be was premature in
his flight was evident, for hundreds Of
investors besieged the Office the next day.
So general was the frenzy that any
thing in the nature Of speculation became
popular. There was an immense traffic
in "Globe permits" These consisted Of