The debt due from the government upon this and other accounts unprovided for by parliament, amounted to 9,177,967l. 15s. 4d. and these people taking it into their hands, were incorporated by act of parliament in the year 1710; the following year the company, after the discharge of the debt due to them from the government, was made perpetual; and in 1714, lending the government an additional sum of 822,032l. 4s. 8d. the capital of the company was, by act of parliament, enlarged to ten millions; for which the members received six per cent. interest, or 600,000l. per annum.
But in 1720 an act of parliament was passed, by which the company were granted the sole privilege of trading to the South Seas within certain limits, and enabled to increase their capital, by redeeming several of the public debts, but by the arts used on this occasion the capital stock of the company was soon raised to thirty-three millions, five hundred and forty-three thousand, two hundred and sixty-three pounds. It would take up too much room were we to enter here into an account of the measures by which this iniquitous scheme was carried on; many wealthy persons lost their estates, and others acquired immense fortunes; and, in short, a considerable number of the directors, were obliged by parliament to refund their ill-gotten treasures.
By an act passed in the sixth year of the reign of his present Majesty, it was enacted, that after the 24th of June 1733, the capital stock of the company, which then amounted to 14,651,103l. 8s. 1d. and the shares of the respective proprietors, should be divided into four equal parts, three fourths of which should be converted into a joint stock, attended with annuities, after the rate of 4 per cent. till redemption by parliament, and should be called the new South Sea annuities, and the other fourth part should remain in the company as a trading capital stock, attended with the residue of the annuities or funds payable at the Exchequer to the company till redemption, and that the company’s accomptant should twice every year, at Christmas and Midsummer, or within one month after, state an account of the company’s affairs, which should be laid before the next general court, in order to their declaring a dividend, but that such dividend should not exceed 4l. per cent. per annum, till their debts were discharged. That the South Sea company, and their trading stock should, exclusively from the new joint stock of annuities, be liable to all the debts and incumbrances of the company; and that the company should cause to be kept within the city of London, an office, and books, in which all transfers of the new annuities, should be entered and signed by the party making such transfer, or his attorney; and the person to whom such transfer should be made, or his attorney, should underwrite his acceptance, and no other method of transferring annuities should be good in law. The annuities of this company are some of them reduced to 3l. 10s. per cent. and others to 3l.
It is necessary to observe with respect to this company, that they have never carried on any considerable trade; however by the assiento contract they had for some years the privilege of furnishing the Spaniards with negroe slaves for their mines and plantations in America, and of sending a large ship annually with European goods, consisting chiefly of our woollen manufactures, to the Spanish West Indies; and for nine years they annually sent a small number of ships to fish for Whales on the coast of Greenland. As they have now no trade, they only receive interest for their capital, which is in the hands of the government, and also 8000l. a year out of the treasury, towards the expence attending the management of their affairs.
The hours of payment of dividends are from nine o’clock till eleven, and the hours of transfer from twelve o’clock till one.
The days of transferring South Sea stock are Monday and Friday.
Old annuities Monday, Wednesday and Friday.
New annuities Tuesday, Thursday, and Saturday.
Three per cent. 1751, Tuesday and Thursday. Except on holidays, which are in general the same as at the Bank.
The business of this company is managed by a governor, subgovernor, deputy governor, and twenty-one directors, annually chosen before the 6th of February, by a majority of votes: such members of the company as have 1000l. in the capital stock in their own names, having one vote; such as have 3000l. two votes; such as have 5000l. three votes, and such as have 10,000l. stock or more, four votes, and none above: but no person can be governor, subgovernor, deputy governor, or director, while governor, deputy governor, or director of the bank of England.