The Money-Madness.
The Times, 1824-11-23T00:00:00

As this is a time wheni, on account of the low rate of in- terest consequent upon the great abtundance of money, nevw channels of gain are daily sought after and rashly caught at, we cRntinot (lo better than q uote, by way of pre- cedlent, the eff~cts which a similar thirst for inordinate gain produced, und ur similar circumstances of abundance, in thc year 1720: the pass5ge is from the third volume of 8mnollett's fistory of fEngland:- " WlVile the King was involved at Hlanover in a labyrinth of ne. gotiations, thc South-Sea scheme produced a kindl ofi national dei. nurns in his Englisli doininions. Blunt, the projector, had taken the hint of his plan from the famnous Mississipi schleme formed by I,sw, which in the preceding year had raised such a ferment in E'rance, and en:ailed ruin ulpon many thousand families of that kingdom. In the scheme of Law, there was something sa'bstantial. An exclusive trade to Louisiana promised some advantage, though; the design was defieated by the frantic eagerness of the people. Law himself became the dupe of the Regent, wbo transferredI the burden of fifteen hundred miiiions of tho R-ing's debts to the shouldlers of the subjects; while the projector was sacrificed as the scape-goat of the political iniquity. The'South-Sea sclheme promsised no commer- cial advantage of any consequence. It was buoyed uip by nothing but the folly and rapaciousness of individuals, which became so blind and extravagant. that Blunt, vrith mnoderate talents, was able to impose upon the whole nation, and make tools of the other di- rectors, to serve his own purposes, and those of a few aosociates. WUhei' this projector found that the South-Sea stock did not rise ac- cording to his expectation upon the bill's being passed, lie circulated a repert, that Gibraltar and Port-.llahon would be excianged for some plAces in Peru; by which means the English trade to the South-Sea would be protected and enlarged. This rumnour, diffused by his eminsaries, acted like a contagion. In five days the directors opcned their books for a subscription of one million, at the rate of three hundred pounds for every hundred pounds capital. Persons .f all ranks crowded to the house im Such a manner, that the first s.ubscriptinn exceeded two millions of original stock. In a few days this stock advanced to 3401. ; and the subscriptions were sold for double the price of the first payment. Without entering into a de- tall of the proccetlings, or explaining the scandalous arts that were practised to enhance the value of the stock, and tdecov the unwvary, we shall only observe, that by the promise of procligious dividends, atsd other infamous arts, the stock was raised to one thousand and the whole nation infected with the spirit of stock jobbing to an astot nishing degree. All distinction of party, religion, sex, character, end circumstances, were swallowed up in this universal concern, or in some such pecuniary project. Exchange-alley was filled with1 a strange concourseof tstatesmen and clergymen, churchmen andl dis- senters,N lVigs and Tories, physieians, lawyers, tradesmen, and eveb with multitudes of females. All oilier professions and employ. ments were utterly neglected ; and the people's attention wholly engrossed by this and otlierchimerical schemne, yhich were lnown by the denomination of bubbles. - New cotapanies started up every ilay under the countenance of the prime nobility. The Prince of WVales was constituted Governor of the Nelch topner Compasy.. the l)uke of Ghan3os appeared at the head of' the York-buildlngs Coompany; the Duke of Brid1gewater fonned a third, for building housesin London and Westminster.Abouron hun(recd such schemes were projected and put in execution, to the ruin of many thousands. The sumns proposed to be raised by these expeaients amoanted to three hundred millions sterling, which exceeded the value of all the lands In England. The nation was so intoxieted with the spirit of al venture, that people became a prey to the grossest delusion: An obscure projector, preternding to have formred a very ailvantageowa scheme, whicl, however, he did not explain, published proposals for a subscription, in wlhich be promised, that it one month tlle particulars of his project should bec disclosed. In the mean tirmc he declared that everv rerson paying two guineas should be entitled to a subscription for 1001., which would produce that stim yearly. In one forenoon this adventurer received a thousand of these subscrip. tions; and in the evening set out for another kingdom. The King, before his departure, had issued a proclamation against these uinlaw. fril projects ; the Lords-Justices afterwards dismissed all the peti tions that bad been presented for charters and patents and the Prince of Vales renounced the Conmpany of which he had been clectedGovernor. The Sauth-Seaschemne Taised such a flood of eager avi(tity and extravagant hope, that the m.ajority of the directors were swept along with it, even contrary to their own sense and in- clination; but Blunt annd is accomplices atill directed the strea-. " The infatuation prevailed till the eiglsit day of September, when the stock began to fall. Then did some of the ativenturers awa.ke from their (lelirium. The number of thje sellers daily in. creased. On the 29Lh day of the month, the stock had sunk to 160; sevCral eminent goldsmitfis and bankers, who htad lent great sums upon it, were obliged to stop paymentt and abscond. The ebb of this portentous tide wns so violent, that it bore down everv thing in its way; and an infinite number of families were overwhelrAed with ruin. Pablic credit sustained a terrible shock: the nation wa-s thrown into a dangerous ferment; and nothing was heardi but the ravingsof of grief, disappointment, and despair." THrE MONEY-MTADNESS.