Peziza. Peziza acetabulum.
January 24.
St. Timothy, disciple of St. Paul. St. Babylas, A. D. 250. St. Suranus, 7th century. St. Macedonius. St. Cadoc, of Wales.
Chronology.
1721. On the 24th of January in this year, the two houses of parliament ordered several of the directors of the South Sea company into the custody of the usher of the black rod and serjeant at arms: this was in consequence of a parliamentary inquiry into the company’s affairs, which had been so managed as to involve persons of all ranks throughout the kingdom in a scene of distress unparalleled by any similar circumstance in English annals.
SOUTH SEA BUBBLE.
In 1711, the ninth year of queen Anne’s reign, a charter of incorporation was granted to a company trading to the South Seas; and the South Sea company’s affairs appeared so prosperous, that, in 1718, king George I. being chosen governor, and a bill enabling him to accept the office having passed both houses, on the 3d of February, his majesty in person attended the house of lords, and gave the royal assent to the act. A brief history of the company’s subsequent progress is interesting at any time, and more especially at a period when excess of speculation may endanger private happiness, and disturb the public welfare.
On the 27th of January, 1719, the South Sea company proposed a scheme to parliament for paying off the national debt, by taking into its funds all the debt which the nation had incurred before the year 1716, whether redeemable or irredeemable, amounting in the whole to the sum of 31,664,551l. 1s. 11⁄4d. For this the company undertook to pay to the use of the public the sum of 4,156,306l.; besides four years and a half’s purchase for all the annuities that should be subscribed into its fund, and which, if all subscribed, would have amounted to the sum of 3,567,503l.; amounting, with the above-mentioned sum, to 7,723,809l.: in case all the annuities were not subscribed, the company agreed to pay one per cent, for such unsubscribed annuities.
To this arrangement parliament acceded, and an act was passed to ratify this contract, and containing full powers to the company accordingly. In March following South Sea stock rose from 130 to 300, gradually advanced to 400, declined to 330, and on the 7th of April was at 340. This so encouraged the directors, that on the 12th they opened books at the South Sea house for taking in a subscription for a portion of their stock to the amount of 2,250,000l. every 100l. of which they offered at 300l.: it was immediately subscribed for at that price, to be paid for by nine instalments within twelve months. On the 21st, a general court of the company resolved, that the Midsummer dividend should be 10 per cent., and that the aforesaid subscription, and all other additions to their capital before that time, should be entitled to the said dividend. This gave so favourable a view to the speculation, that on the 28th the directors opened a second subscription for another million of stock, which was presently taken at 400l. for every 100l., and the subscribers had three years allowed them for payment. On the 20th of May, South Sea stock rose to 550. So amazing a price created a general infatuation. Even the more prudent, who had laughed at the folly and madness of others, were seized with the mania; they borrowed, mortgaged, and sold, to raise all the money they could, in order to hold the favourite stock; while a few quietly sold out and enriched themselves. Prodigious numbers of people resorted daily from all parts of the kingdom to ’Change-alley, where the assembled speculators, by their excessive noise and hurry, seemed like so many madmen just escaped from cells and chains. All thoughts of commerce were laid aside for the buying and selling of estates, and traffic in South Sea stock. Some, who had effected sales at high premiums, were willing to pay out the money on real property, which consequently advanced beyond its actual value: cautious landowners justly concluded that this was the time to get money without risk, and therefore sold their property; shortly afterwards they had an opportunity of purchasing more, at less than half the price they had obtained for their own.