In Elizabeth's reign "the Anthony's pigs," as the "Paul's pigeons" used to call the Threadneedle boys, used to have an annual breaking-up day procession, with streamers, flags, and beating drums, from Mile End to Austin Friars. The French or Walloon church established here by Edward VI. seems, in 1652, to have been the scene of constant wrangling among the pastors, as to whether their disputes about celebrating holidays should be settled by "colloquies" of the foreign churches in London, or the French churches of all England. At this school were educated the great Sir Thomas More, and that excellent Archbishop of Canterbury, the zealous Whitgift (the friend of Beza, the Reformer), whose only fault seems to have been his persecutions of the Genevese clergy whom Elizabeth disliked.
Next in importance to Lloyd's for the general information afforded to the public, was certainly the North and South American Coffee House (formerly situated in Threadneedle Street), fronting the thoroughfare leading to the entrance of the Royal Exchange. This establishment was the complete centre for American intelligence. There was in this, as in the whole of the leading City coffee-houses, a subscription room devoted to the use of merchants and others frequenting the house, who, by paying an annual sum, had the right of attendance to read the general news of the day, and make reference to the several files of papers, which were from every quarter of the globe. It was here also that first information could be obtained of the arrival and departure of the fleet of steamers, packets, and masters engaged in the commerce of America, whether in relation to the minor ports of Montreal and Quebec, or the larger ones of Boston, Halifax, and New York. The room the subscribers occupied had a separate entrance to that which was common to the frequenters of the eating and drinking part of the house, and was most comfortably and neatly kept, being well, and in some degree elegantly furnished. The heads of the chief American and Continental firms were on the subscription list; and the representatives of Baring's, Rothschild's, and the other large establishments celebrated for their wealth and extensive mercantile operations, attended the rooms as regularly as 'Change, to see and hear what was going on, and gossip over points of business.
At the north-east extremity of Threadneedle Street is the once famous South Sea House. The back, formerly the Excise Office, afterwards the South Sea Company's office, thence called the Old South Sea House, was consumed by fire in 1826. The building in Threadneedle Street, in which the Company's affairs were formerly transacted, is a magnificent structure of brick and stone, about a quadrangle, supported by stone pillars of the Tuscan order, which form a fine piazza. The front looks into Threadneedle Street, the walls being well built and of great thickness. The several offices were admirably disposed; the great hall for sales, the dining-room, galleries, and chambers were equally beautiful and convenient. Under these were capacious arched vaults, to guard what was valuable from the chances of fire.
The South Sea Company was originated by Swift's friend, Harley, Earl of Oxford, in the year 1711. The new Tory Government was less popular than the Whig one it had displaced, and public credit had fallen. Harley wishing to provide for the discharge of ten millions of the floating debt, guaranteed six per cent. to a company who agreed to take it on themselves. The £600,000 due for the annual interest was raised by duties on wines, silks, tobacco, &c.; and the monopoly of the trade to the South Seas granted to the ambitious new Company, which was incorporated by Act of Parliament.
To the enthusiastic Company the gold of Mexico and the silver of Peru seemed now obtainable by the ship-load. It was reported that Spain was willing to open four ports in Chili and Peru. The negotiations, however, with Philip V. of Spain led to little. The Company obtained only the privilege of supplying the Spanish colonies with negro slaves for thirty years, and sending an annual vessel to trade; but even of this vessel the Spanish king was to have one-fourth of the profits, and a tax of five per cent. on the residue. The first vessel did not sail till 1717, and the year after a rupture with Spain closed the trade.
In 1717, the King alluding to his wish to reduce the National Debt, the South Sea Company at once petitioned Parliament (in rivalry with the Bank) that their capital stock might be increased from ten millions to twelve, and offered to accept five, instead of six per cent. upon the whole amount. Their proposals were accepted.
The success of Law's Mississippi scheme, in 1720, roused the South Sea directory to emulation. They proposed to liquidate the public debt by reducing the various funds into one. January 22, 1720, a committee met on the subject. The South Sea Company offered to melt every kind of stock into a single security. The debt amounted to £30,981,712 at five per cent. for seven years, and afterwards at four per cent, for which they would Pay £3,500,000. The Government approved of the scheme, but the Bank of England opposed it, and offered £5,000,000 for the privilege. The South Sea shareholders were not to be outdone, and ultimately increased their terms to £7,500,000. In the end they remained the sole bidders; though some idea prevailed of sharing the advantage between the two companies, till Sir John Blunt exclaimed, "No, sirs, we'll never divide the child!" The preference thus given excited a positive frenzy in town and country. On the 2nd of June their stock rose to 890; it quickly reached 1,000, and several of the principal managers were dubbed baronets for their "great services." Mysterious rumours of vast treasures to be acquired in the South Seas got abroad, and 50 per cent. was boldly promised.
"The scheme," says Smollett, "was first projected by Sir John Blount, who had been bred a scrivener, and was possessed of all the cunning, plausibility, and boldness requisite for such an undertaking. He communicated his plan to Mr. Aislabie, the Chancellor of the Exchequer, and a Secretary of State. He answered every objection, and the project was adopted."
Sir Robert Walpole alone opposed the bill in the House, and with clear-sighted sense (though the stock had risen from 130 to 300 in one day) denounced "the dangerous practice of stock-jobbing, and the general infatuation, which must," he said, "end in general ruin." Rumours of free trade with Spain pushed the shares up to 400, and the bill passed the Commons by a majority of 172 against 55. In the other House, 17 peers were against it, and 83 for it. Then the madness fairly began. Stars and garters mingled with squabbling Jews, and great ladies pawned their jewels in order to gamble in the Alley. The shares sinking a little, they were revived by lying rumours that Gibraltar and Port Mahon were going to be exchanged for Peruvian sea-ports, so that the Company would be allowed to send out whole fleets of ships.
Government, at last alarmed, began too late to act. On July 18 the King published a proclamation denouncing eighteen petitions for letters patent and eighty-six bubble companies, of which the following are samples:—