Hector. Then, Sir, here is two Hundred Guineas lost to my Lord Love-game, upon Honour.
Sir Thos. Valere. That's another Debt I shall not pay.
Hector. How, not pay it, Sir. Why, Sir, among Gentlemen, that Debt is look'd upon the most just of any: you may Cheat Widows, Orphans, Tradesmen without a Blush; but a Debt of Honour, Sir, must be paid. I cou'd name you some Noblemen that pays no Body—yet a Debt of Honour, Sir, is as sure as their Ready Money.
Sir Thos. He that makes no Conscience of Wronging the Man whose Goods have been deliver'd for his use can have no pretence to Honour, whatever Title he may wear.
There was a speculating mania arising, which boded ill for the future. In this reign was born the 'South Sea Bubble,' which burst so disastrously in the next, and involved thousands in ruin. Perhaps the mildest form it took was in insurances. We have already glanced at the fire insurances in Queen Anne's time; they now began to think of life insurance, and the first advertisement on this subject that I have noticed is in 1709. 'The Office of Assurance of Money upon Lives is at the Rainbow Coffee House in Cornhill, where Men or Women may Subscribe on their own Lives for the benefit of their Children, or other Person's Lives for the benefit of themselves, and have them approv'd without their Knowledge, paying 10s. Entrance, and 10s. towards the first Claim for each Life, and shall have a Policy for £1,000 for each Life subscribed upon in the said Society. This Office may be proper for such Persons as have Annuities, Estates, or Places for Life; and for such Persons to make Assurance upon Lives where Debts are dubious if the Person die. This Office will assure Money much Cheaper per cent. than private Persons.' This looks very much as if it were the first life insurance company that was started, in lieu of private enterprise; and as this is the only company that is advertised in Queen Anne's reign, it was probably the sole forerunner of the numerous similar enterprises now in existence.
Hatton says, 'Offices that Insure Ships or their Cargo are many about the Royal Exchange, as Mr. Hall's, Mr. Bevis's, etc., who for a Premium paid down procure those that will subscribe Policies for Insuring Ships (with their Cargo) bound to or from any part of the World, the Premium being proportioned to the Distance, Danger of Seas, Enemies, etc. But in these Offices 'tis Customary upon paying the Money on a Loss to discount 16 per cent.'
A curious marine insurance was in existence early in 1711, of which the following is the advertisement; but it seems a sporting insurance, and only meant to cover the war risk. 'For the Encouragement of Navigation for Masters, Mates and other Seafaring Men that are Burnt, Sunk or Taken. That 4,000 Persons by paying 2s. 6d. for a Policy, and 5s. to the 1st Quarter, which will be paid 21 days after Midsummer for the Lady Day Quarter, to the Sufferer or Sufferers £1,000 in full, or in proportion to what is paid in, and continuing to pay 5s. every Quarter or 14 days after; likewise if 4,000 persons by paying 2s. 6d. for a Policy, and 2s. for the 1st if full, £400 or in proportion to be paid 21 days after Midsummer for this Lady Day Quarter, and likewise 4,000 by paying 2s. 6d. for Policies and 1s. per Quarter, the Sufferer or Sufferers to receive the benefit of £200 if full, or else in proportion, to be paid in 21 days after Midsummer; the Office was opened on Saturday last, the 27th past, by Hen Willson, Gent, in Jacob Street, Southwark. Note. When 1,000 Policies are taken out, Trustees will be Chosen and Land Security given. Any Person may Insure in all 3 Offices. Proposals at large may be had at the Office. Note, that £6 per cent. will be deducted out of the Money paid for the trouble and charges.'
There were besides—and they sprang up as if by magic—insurances for everything: for marriages, for births, for baptisms—rank swindles all. And lotteries! why, every thing, unsaleable otherwise, was tried to be got rid of by lottery. The papers teemed with advertisements. Take one newspaper haphazard; for example, the Tatler, Sept. 14/16, 1710: 'Mr. Stockton's Sale of Jewels, Plate, &c., will be drawn on Michaelmas Day.' 'The Lottery in Colson's Court is to be drawn the 21st Inst.' 'The Sale of Goods to be seen at Mrs. Butler's, &c., will certainly be drawn on Tuesday the 19th Inst.' 'Mrs. Povy's Sale of Goods is put off to Saturday 23rd Inst. 'Mrs. Symond's Sale of Goods will begin, &c., on Wednesday the 20th of this Instant.' 'Mrs. Guthridge's Sixpenny Sale of Goods, &c., continues to be drawn every Day.'
The financial atmosphere was getting unwholesome, Government had to step in, and an Act was passed which duly appeared in the London Gazette, June 28/July 1, 1712, which enacted 'That every Person who, after the 24 June 1712, shall erect, set up, or keep any Office or Place for making Insurance on Marriages, Births, Christnings, or Service, or any other Office or Place, under the Denomination of Sales of Gloves, of Fans, of Cards, of Numbers, of the Queen's Picture, for the improving of small sums of Mony,[150] or the like Offices or Places under pretence of improving small sums of Money, shall Forfeit for every such Offence the sum of 500l., to be recovered with full Costs of Suit, and to be divided as aforesaid.' This had the desired effect, and both in the British Mercury, June 27/30, 1712, and the Post Boy, Aug. 21/23, 1712, we hear of prosecutions of illicit lotteries—and they soon ceased.
Of course, morally speaking, the Government had no right to complain, for they had begun the system—by legalising a lottery for £1,500,000 in 1709—from which time until 1824 no year passed without Parliament sanctioning a Lottery Bill. It is not worth while going into the schemes of the various lotteries in Queen Anne's reign, but it may be interesting to note the constitution of the one which inaugurated an indefensible system of immoral finance, which lasted over a century. There were 150,000 tickets at £10 each, making £1,500,000, the principal of which was to be sunk, and 9 per cent. to be allowed on it for 32 years. Three thousand seven hundred and fifty tickets were prizes from £1000 to £5 per annum; the rest were blanks—a proportion of thirty-nine to one prize, but, as a consolation, each blank was entitled to fourteen shillings per annum during the thirty-two years.