The report having been read, the House passed a resolution to the effect that in maintaining suits at law between citizen and citizen in cases of disputed elections, the Common Council had "abused their trust, and been guilty of great partiality, and of a gross mismanagement of the city treasure, and a violation of the freedom of elections in the city."
A protest entered.
So scathing an indictment against the City was not allowed to pass unchallenged. Sixteen peers entered a vigorous protest on the several grounds: (1) that no evidence had been taken on oath, and that without such evidence they conceived that so heavy a censure ought not to be passed on any individual, much less on so important a body as the Common Council of the city, which had done good service on pressing occasions; (2) that the Common Council had not had due notice given them; (3) that the resolution of the House might be construed as prejudging matters which might come before the House judicially; and lastly (4) that had the Common Council been heard they might have shown that the money had been expended in defence of their ancient rights and privileges, and in order to prevent any encroachment thereon.[42] That the dissentient Lords had reason on their side there can be little doubt. Nevertheless, some writers[43] whilst setting out in full the committee's report, as well as the returns made by the Chamberlain of money expended by the City on election suits, and the resolution of the House thereon, have entirely ignored the fact that a solemn protest was made against such resolution, and the reasons which urged the dissentients to make such protest.
What is "paying Scot?"
In the meantime another disputed election had taken place. This time it concerned an alderman. The mayor had reported the case to the Court of Aldermen the day that the Lords appointed their committee to investigate the City's law costs. The case was shortly this. On the 9th January a wardmote had been held at Cordwainers' Hall, for the purpose of electing an alderman for the ward of Bread Street, in the place of Sir Richard Hoare, deceased. The show of hands for the respective candidates—Robert Baylis and Richard Brocas, both of them members of the Grocers' Company—had been so equal that the mayor had been unable to declare which had the majority. A poll had therefore been demanded, the result being declared by the mayor to be in favour of Brocas, and thereupon a scrutiny had taken place, with the same result.[44] The whole question turned upon the qualification of certain voters. Did they or did they not pay Scot, and in what did "paying Scot" consist? The matter having been argued before the Court of Aldermen by counsel on behalf of each candidate, the Court came to the conclusion that paying Scot was "a general contribution to all public taxes," and at the same time declared Baylis to be duly elected.[45] The Common Council then attempted to interfere, but the Court of Aldermen would brook no invasion of their rights,[46] and although litigation continued well into the next year (1720) Baylis retained his seat in the Court.
An insult offered to an alderman on Lord Mayor's Day, 29 Oct., 1720.
On Lord Mayor's day (29 Oct.) 1720, an incident occurred worthy of a passing notice. From particulars laid before the Court of Aldermen (10 Jan., 1721) by a committee appointed to investigate the matter,[47] it appears that when the members of the Court of Aldermen were riding in their coaches towards the Three Cranes on the banks of the river, thence to attend the new lord mayor (Sir John Fryer) in his barge to Westminster, a certain ensign in the Second Regiment of the Guards—Thomas Hockenhull or Hocknell by name—who was in charge of a detachment of soldiers on their way to the Tower, thought fit to break through the aldermen's procession, and to bring Sir John Ward's coach to a sudden standstill, his horses being struck over the head by the soldiers' muskets. The affront was too serious to be passed over, and Sir John reported the matter to Secretary Craggs, who forwarded the alderman's letter to the Secretary at War, and at the same time expressed regret that such an incident should have happened.[48] Later on the officer himself appeared before the Court of Aldermen bearing a letter from Sir George Treby to Alderman Ward to the effect that the officer had already received a reprimand, and would (he hoped) make a suitable apology. A written apology was read to the Court of Aldermen in which Hockenhull pleaded ignorance as to whose coach it was that had been stopped, and endeavoured to throw the blame on two of his soldiers, who he declared to be "a little in liquor." The officer being called in offered to make submission and to beg pardon, but the Court was not in the humour to accept his apology, and so the matter rested until the following January (1721), when upon Sir George Treby's intercession and Hockenhull's submission the Court agreed to pass the matter over. The Secretary at War was at the same time desired "that for the future the route for the Guards marching to and from the Tower may be as usual through Watling Street, and not through the high streets of this city."
The South Sea Company, 1711-1720.
Sir John Fryer had been elected mayor at one of the most critical times in the history either of London or the kingdom, for his election took place just at the time of the bursting of the great South Sea bubble. The South Sea Company had been formed in 1711 by Harley, with the view of carrying on such trade with Spanish America as Spain might be willing to allow in the treaty which was then expected. When the Treaty of Utrecht was concluded Spain was found to have conceded the right of trading with America, but only to a limited extent. Nevertheless the idea got abroad that the company was possessed of a very valuable monopoly, and that the trade with Spanish America would enrich all who took part in it. Accordingly the shares of the company were eagerly bought, and in a few years the institution began to rival the Bank of England itself. Early in 1720, when a scheme was propounded for lessening the National Debt, the company was in a position to outbid the Bank in buying up government annuities, and holders of such annuities were found only too ready to exchange them for shares in the company. The company next invited the public to subscribe new capital, and upwards of £5,000,000 were subscribed in an incredibly short space of time. The wildest speculation prevailed. Bogus companies sprang up in all directions, and no matter how ridiculous the purpose might be for which they were avowedly started, they always found subscribers. Men of all ranks, ages, and professions, nay! women also flocked to Threadneedle Street (where stood the South Sea House) or to Change Alley, and the very streets were blocked with desks and clerks, and converted into counting-houses. The whole nation suddenly became stock-jobbers. Swift, writing of the ruin worked by the mad speculation of the day, thus characterises Change Alley, the centre of all the mischief:
"There is a gulf where thousands fell
Here all the bold adventurers came,
A narrow sound, though deep as hell;
'Change Alley is the dreadful name."