the South Seas and other Parts of America, and for Encouraging the
Fishery, having on the 27th January last presented their Humble Proposal
to this Honourable House, for Enlarging the Capital Stock of the said
Company, by taking thereinto the several Annuities and Publick Debts
therein Mentioned, on the Terms and Conditions in the said Proposal also
Mentioned, in which Proposal such Advantages were offer'd to the
Publick, as the said Corporation did humbly hope would have been to the
entire Satisfaction of this Honourable House, and most conducive to the
certain Discharging and Paying off the whole Debt of the Nation, and to
which Proposal they humbly crave Leave to refer. But the Governors and
Company of the Bank of England having the same day also delivered a
Proposal to this Honourable House, for enlarging their Capital Stock, by
taking in the same Annuities and Debts on the Terms and Conditions in
their Proposal also mentioned.
This Corporation therefore further, to manifest their Zeal and Earnest
desire to Contribute their utmost to the reducing and paying off the
Publick Debts, crave leave to offer the following Explanations and
Amendments to their said Proposal.
I. As to the sixth Article of their said former Proposal, wherein they
have humbly desir'd to be Allowed for Charges of Management, for their
to be increased Capital, so much as it now costs the Government for the
Charges of Paying, Assigning and Accounting for the said Debts, or such
Proportion thereof, as the Sum which shall be taken in by the Company,
shall bear to the whole of those Debts.
They now offer by way of Explanation of that Article, that the
Allowances therein Mentioned, are not to exceed a Proportion to the
Allowance they now have by Act of Parliament on their present Capital
for that purpose.
II. That whereas, in their seventh Article of their said Proposal it is
Mentioned that the Annuities for the Company's present, and to be
increased Capital, be continued at the Rates therein Mentioned till
Midsummer, 1727. And that from and after that time their then Annuity on
their whole Capital, shall be actually reduced to £4 per Cent. per Ann.
and likewise be from thenceforth redeemable by Parliament.
They do humbly offer that if this Honourable House do think it more for
the Interest of the Publick, that in lieu of the said seventh Article,
all the Sums to be taken into the Company's Capital, in pursuance of
their proposal, shall be redeemable by Parliament, from and after
Midsummer 1724, in Sums not less than £500,000 at a time they do consent
thereto.
III. And whereas by the tenth Article of their said former Proposal,
they offer'd for the Liberty of Increasing their Capital Stock, as is
therein aforesaid; that they would give and pay into his Majesty's
Exchequer, for the Service of the Publick, the sum of £3,500,000.
They now humbly Offer, that over and above the said £3,500,000, They
will farther give and pay into his Majesty's Exchequer, for the use of
the Publick, by four Equal Quarterly Payments on the days Mention'd in
their said former Proposal, £500,000 more certain, and also upon all the
said Annuities for certain Terms of Years which this Company shall take
into their Capital Stock, before the first day of March, 1721, after the
rate of four Year and half purchase, by four Quarterly Payments which if
all the said Annuities be taken into the said Company, will amount to
the Sum of £3,567,503 or thereabouts, to which being added the said
£3,500,000 and the said further Sum of £500,000 will amount in the whole
to the Sum of £7,567,500 or thereabouts.
IV. That whereas in the eleventh Article of their former Proposal, they
did submit that so much as shall arise by the sinking Fund before
Midsummer 1727 may from and after paying Off such Part of the Publick
Debts, as may be Redeemed within that time, and which shall not be taken
into this Company, be applied at the end of every Year towards paying
off, in even One Hundred Thousand Pounds, that part of the Company's
Capital, which carries £5 _per Cent. per Ann._
They do humbly offer in lieu thereof, that if this Honourable House
think fit to make their to be Increased Capital, Redeemable at Midsummer
1724, That the said sinking Fund may till that time be applied half
Yearly, to the paying off that part of the Company's which is to carry
£5 _per Cent. per Ann._
V. As to the twelfth Article of this Company's former Proposal, Relating
to the Circulating of £1,000,000 in Exchequer Bills Gratis, and likewise
pay the Interest for that Million, so as no other Exchequer Bills be
issued than what shall be Circulated by the Credit of the Exchequer,
without the aid of Subscription or Contract.
VI. And Lastly, that this Honourable House may be fully satisfied of the
sincere Intentions of this Company to use their best Endeavours to take
in all the said Annuities for ninety-nine, and ninety-six Years, which
amount to £667,705 8s. 1d. _per Ann._ This Company do further Humbly
offer to give and pay into his Majesty's Exchequer, for the Service of
the Publick, by four Equal Quarterly Payments, one Years Purchase upon
all such of those Annuities as shall happen not to come into the
Company's Capital within the time aforesaid.
And whereas this Company is very Sensible, that the Prosperity of the
Nation doth greatly depend upon the discharging the Publick Debts (a
Motive which Induced them to make the first Propositions of this Publick
and beneficial nature) They do Humbly submit these Explanations and
Amendments to this Honourable House, flattering themselves that
Readiness and Cheerfulness that Ingaged them so much earlier than any
other Society, to endeavour to reduce that great Debt under which this
Nation is Oppressed, will Intitle them to the favour and preference of
this House, since they are willing and do hereby declare they are ready
to undertake this great work upon whatever Terms may be offered by any
other Company.
By Order of the General Court.
JOHN FELLOWS, _Sub-Governour_.
CHARLES JOYE, _Dep. Governour_.
_Feb. 1, 1719_
II.
THE BUBBLE BURST.
+Source.+--_The Case of the Borrowers on the South Sea Loans Stated._
Pp. 1-7. London, 1721.
Since the Parliament has thought it of service to the Publick, that the
_unhappy sufferers by the South Sea_ should have Relief: and are at
present considering how to give it them: I am persuaded, no one will
think it either improper or unreasonable, that the case of the
_Borrowers on the Loans_ (who in my opinion are the _most unhappy_ of
them all) should be truly stated and made publick.
For my part, I will endeavour it, as far as I am able, with Justice to
the Company who are their Creditors, and with no more Compassion to
these unfortunate People, than their Circumstances honestly deserve: And
I have this Satisfaction in what I undertake, that as I believe it is
not the Intent of the Members of either of the Honourable Houses to
administer Relief with Partiality, or to neglect any set of Men who
really want it, should I so far succeed, as to show that _these
Borrowers_ do, I can't but hope that _they_ will be esteemed at least
worthy _their Care_ and _Protection_.
To what purpose these Loans were opened by the _late Directors_, I need
not mention: Every one knows, that without _them_ they could never have
perfected _their Scheme_, as they used to term their _Villainy_. It was
not enough for them to have raised their Stock to such a Price, as to
have been _only_ able to have discharged their Agreement with the
Government; they had larger Views, they were to satisfy their own
Avarice, and could not therefore give too great an imaginary Value to
their Stock. _These Managers_ (unhappily for us) set out with the good
opinion of Mankind: they were esteemed too wise to be deceived
themselves, and too honest to deceive their Friends. Thus qualified for
Mischief, they soon began it: they soon intoxicated the Brains of all
they talked with, gave them wild Notions of the rising Value of their
Stock, and persuaded them at any rate to put themselves in Fortune's
way: Having with great Art and Industry gained a _Credit_ to their
Stock, they immediately upon it took in the first Subscriptions; but
these Subscriptions having drawn a great Quantity of Money into their
hands, they apprehended the rising Spirit of the Stock might soon be
checked for want of Money, and their Project by it injured: For _even
then_ the Species of our Nation was not infinite, it was therefore
necessary to contrive some Means to carry on _quick Circulations_ of it:
and the Means contrived was to issue Money on these Loans. The Success
they had we all remember; the Price increased prodigiously, and, if I am
not mistaken, above £100 _per Cent._ in a Day. And indeed this Success
was very probable: for these Loans served two Ends at once of the
greatest moment to their Schemes: While they furnished the unhappy
Borrowers with Money to purchase Stock with, they gave fresh Credit to
the Stock, and raised the Price: For when the _Directors_, who must be
supposed to know what they were doing, had put so great a confidence in
their Stock, as to lend such Sums upon the Security of _that alone_,
others might with good reason take courage, and trust it too. And their
Cunning upon this occasion was very extraordinary, for they were not
contented with the Credit they gave to their Stock by this Act, which
was a tacit Declaration that they knew it to be intrinsically worth as
much or more than what they ventured to lend on it; but they were
diligent in private Companies to confirm Men in such Opinion of it, by a
constant Ridicule of the Bank for their pitiful and cautious Loan of
£100 _per Cent._ To this Step are greatly owing all our Misfortunes: The
most Prudent now began to blame themselves for the most unjust
Suspicions they had entertain'd of so good a Project. A Man of moderate
Fortune now seem'd poor by the Vast Riches all about him had so suddenly
acquired. All grew impatient and uneasy, who were not in this Stock, the
Managers were idolised, and only they were happy, who had Directors for
their Friends. The Merchant, who thro' a long Diligence and great
Variety of Hazard had gained a small Estate, grew mad to see so many
idle Fellows enrich themselves within a day or two. The honest Country
Gentleman, who by good Management and wise economy had been an Age in
paying off a Mortgage, or saving a few small Portions for his younger
Children, could not bear the big Discourse and Insults of this _New
Race_. Both laid aside their Prudence, and at last became unhappy
Converts to _South Sea_: Both were persuaded now to use their Diligence,
and recover that time their Disbelief had lost them. The one despised
his Trade, and sold his Effects, at any rate, to try his Fortune: The
other mortgaged what he could, or sold it for a _little stock_ or _Third
Subscription_: And now both are undone, both Beggars. I should think
Cases of such Distress as these could not be reflected on without even
Humanity itself becoming painful; and yet, whether it proceeds from such
Cases being frequent and daily seen, or from an Hardness of Heart, which
Providence for a Judgment has suffered to fall on us, I know not; but
such Cases are scarce pitied by us: Every one still pursues his own
Interest, and seems to grudge the Expense even of a few Shillings, to
save thousands from Destruction.
SIR ROBERT WALPOLE AS PRIME MINISTER (1721-1741).
I.
+Source.+--John, Baron Hervey (1696-1743), _Memoirs_, 1848. Vol. i., pp.
23-25.
No man ever was blessed with a clearer head, a truer or quicker
judgment, or a deeper insight into mankind; he knew the strength and
weakness of everybody he had to deal with, and how to make his advantage
of both; he had more warmth of affection and friendship for some
particular people than one could have believed it possible for any one
who had been so long raking in the dirt of mankind to be capable of
feeling for so worthless a species of animals. One should naturally have
imagined that the contempt and distrust he must have had for the species
in gross, would have given him at least an indifference and distrust
towards every particular. Whether his negligence of his enemies, and
never stretching his power to gratify his resentment of the sharpest
injury, was policy or constitution, I shall not determine: but I do not
believe anybody who knows these times will deny that no minister ever
was more outraged, or less apparently revengeful. Some of his friends,
who were not unforgiving themselves, nor very apt to see imaginary
faults in him, have condemned this easiness in his temper as a weakness
that has often exposed him to new injuries, and given encouragement to
his adversaries to insult him with impunity. Brigadier Churchill, a
worthy and good-natured, friendly, and honourable man, who had lived Sir
Robert's intimate friend for many years, and through all the different
stages of his power and retirement, prosperity and disgrace, has often
said that Sir Robert Walpole was so little able to resist the show of
repentance in those from whom he had received the worst usage, that a
few tears and promises of amendment have often washed out the stains
even of ingratitude.
In all occurrences, and at all times, and in all difficulties, he was
constantly present and cheerful; he had very little of what is generally
called insinuation, and with which people are apt to be taken for the
present, without being gained; but no man ever knew better among those
he had to deal with who was to be had, on what terms, by what methods,
and how the acquisitions would answer. He was not one of those
projecting systematical great geniuses who are always thinking in
theory, and are above common practice: he had been too long conversant
in business not to know that in the fluctuation of human affairs and
variety of accidents to which the best concerted schemes are liable,
they must often be disappointed who build on the certainty of the most
probable events; and therefore seldom turned his thoughts to the
provisional warding off future evils which might or might not happen; or
the scheming of remote advantages, subject to so many intervening
crosses; but always applied himself to the present occurrence, studying
and generally hitting upon the properest method to improve what was
favourable, and the best expedient to extricate himself out of what was
difficult. There never was any minister to whom access was so easy and
so frequent, nor whose answers were more explicit. He knew how to oblige
when he bestowed, and not to shock when he denied: to govern without
oppression, and conquer without triumph. He pursued his ambition without
curbing his pleasures, and his pleasures without neglecting his
business; he did the latter with ease, and indulged himself in the other
without giving scandal or offence. In private life, and to all who had
any dependence upon him, he was kind and indulgent; he was generous
without ostentation, and an economist without penuriousness; not
insolent in success, nor irresolute in distress; faithful to his
friends, and not inveterate to his foes.
II.
+Source.+--Horace Walpole's _Reminiscences_, _Works_, 1798. Vol. iv.,
p. 271.
It was an instance of Sir Robert's singular good fortune, or evidence of
his talents, that he not only preserved his power under two successive
monarchs, but in spite of the efforts of both their mistresses to remove
him. It was perhaps still more remarkable, and an instance unparalleled,
that Sir Robert governed George the first in Latin, the King not
speaking English, and his minister not German, nor even French. It was
much talked of, that Sir Robert, detecting one of the Hanoverian
ministers in some trick or falsehood before the King's face, had the
firmness to say to the German, "Mentiris, impudentissime!"
WOOD'S HALFPENCE: THE FIRST DRAPIER'S LETTER (1724).
+Source.+--_Works of Jonathan Swift_. Pp. 13 _seqq._ Bohn's edition,
1903.
_To the Tradesmen, Shop-Keepers, Farmers, and Common People in General
of Ireland._
BRETHREN, FRIENDS, COUNTRYMEN AND FELLOW-SUBJECTS,
What I intend now to say to you, is, next to your duty to God and the
care of your salvation, of the greatest concern to yourselves, and your
children, your bread and clothing, and every common necessary of life
entirely depend upon it. Therefore I do most earnestly exhort you as
men, as Christians, as parents, and as lovers of our country, to read
this paper with the utmost attention, or get it read to you by others;
which that you may do at the less expense, I have ordered the printer to
sell it at the lowest rate.
It is a great fault among you, that when a person writes with no other
intention than to do you good, you will not be at the pains to read his
advice: One copy of this paper may serve a dozen of you, which will be
less than a farthing a-piece. It is your folly that you have no common
or general interest in your view, not even the wisest among you, neither
do you know or enquire, or care who are your friends, or who are your
enemies.
About three years ago a little book[3] was written to advise all people
to wear the manufactures of this our own dear country: It had no other
design, said nothing against the King or Parliament, or any man, yet the
POOR PRINTER was prosecuted two years, with the utmost violence, and
even some WEAVERS themselves, for whose sake it was written, being upon
the JURY, FOUND HIM GUILTY. This would be enough to discourage any man
from endeavouring to do you good, when you will either neglect him or
fly in his face for his pains, and when he must expect only danger to
himself and loss of money, perhaps to his ruin.
However I cannot but warn you once more of the manifest destruction
before your eyes, if you do not behave yourselves as you ought.
I will therefore first tell you the plain story of the fact; and then I
will lay before you how you ought to act in common prudence, and
according to the laws of your country.
The fact is thus: It having been many years since COPPER HALFPENCE OR
FARTHINGS were last coined in this kingdom, they have been for some time
very scarce, and many counterfeits passed about under the name of
_raps_, several applications were made to England, that we might have
liberty to coin new ones, as in former times we did; but they did not
succeed. At last one Mr. Wood, a mean ordinary man, a hardware dealer,
procured a patent under his Majesty's broad seal to coin fourscore and
ten thousand pounds in copper for this kingdom, which patent however did
not oblige any one here to take them, unless they pleased. Now you must
know, that the halfpence and farthings in England pass for very little
more than they are worth. And if you should beat them to pieces, and
sell them to the brazier you would not lose above a penny in a shilling.
But Mr. Wood made his halfpence of such base metal, and so much smaller
than the English ones, that the brazier would not give you above a penny
of good money for a shilling of his; so that this sum of fourscore and
ten thousand pounds in good gold and silver, must be given for trash
that will not be worth above eight or nine thousand pounds real value.
But this is not the worst, for Mr. Wood, when he pleases, may by stealth
send over another and another fourscore and ten thousand pounds, and buy
all our goods for eleven parts in twelve, under the value. For example,
if a hatter sells a dozen of hats for five shillings a-piece, which
amounts to three pounds, and receives the payment in Mr. Wood's coin, he
really receives only the value of five shillings.
Perhaps you will wonder how such an ordinary fellow as this Mr. Wood
could have so much interest as to get His Majesty's broad seal for so
great a sum of bad money, to be sent to this poor country, and that all
the nobility and gentry here could not obtain the same favour, and let
us make our own halfpence, as we used to do. Now I will make that matter
very plain. We are at a great distance from the King's court, and have
nobody there to solicit for us, although a great number of lords and
squires, whose estates are here, and are our countrymen, spending all
their lives and fortunes there. But this same Mr. Wood was able to
attend constantly for his own interest; he is an Englishman and had
great friends, and it seems knew very well where to give money, and
those that would speak to others that could speak to the King and could
tell a fair story. And his Majesty, and perhaps the great lord or lords
who advised him, might think it was for our country's good; and so, as
the lawyers express it, "the King was deceived in his grant," which
often happens in all reigns. And I am sure if his Majesty knew that such
a patent, if it should take effect according to the desire of Mr. Wood,
would utterly ruin this kingdom, which hath given such great proof of
its loyalty, he would immediately recall it, and perhaps show his
displeasure to some one or other. But "a word to the wise is enough."
Most of you must have heard, with what anger our honourable House of
Commons received an account of this Wood's patent. There were several
fine speeches made upon it, and plain proof that it was all A WICKED
CHEAT from the bottom to the top, and several smart notes were printed,
which that same Wood had the assurance to answer likewise in print, and
in so confident a way, as if he were a better man than our whole
Parliament put together....
The common weight of this halfpence is between four and five to an
ounce, suppose five, then three shillings and four-pence will weigh a
pound, and consequently twenty shillings will weigh six pound butter
weight. Now there are many hundred farmers who pay two hundred pound a
year rent. Therefore when one of these farmers comes with his
half-year's rent, which is one hundred pound, it will be at least six
hundred pound weight, which is three horse load.
If a 'squire has a mind to come to town to buy clothes and wine and
spices for himself and family, or perhaps to pass the winter here; he
must bring with him five or six horses loaden with sacks as the farmers
bring their corn; and when his lady comes in her coach to our shops, it
must be followed by a car loaden with Mr. Wood's money. And I hope we
shall have the grace to take it for no more than it is worth.
They say 'Squire Conolly [Speaker of the Irish House of Commons] has
sixteen thousand pounds a year. Now if he sends for his rent to town, as
it is likely he does, he must have two hundred and forty horses to bring
up his half-year's rent, and two or three great cellars in his house for
stowage. But what the bankers will do I cannot tell. For I am assured,
that some great bankers keep by them forty thousand pounds in ready cash
to answer all payments, which sum, in Mr. Wood's money, would require
twelve hundred horses to carry it.
For my own part, I am already resolved what to do; I have a pretty good
shop of Irish stuffs and silks, and instead of taking Mr. Wood's bad
copper. I intend to truck with my neighbours the butchers, and bakers,
and brewers, and the rest, goods for goods, and the little gold and
silver I have, I will keep by me like my heart's blood till better
times, or till I am just ready to starve, and then I will buy as my
father did the brass money, in K. James's time,[4] I who could buy ten
pound of it with a guinea....
When once the kingdom is reduced to such a condition, I will tell you
what must be the end: The gentlemen of estates will all turn off their
tenants for want of payment, because as I told you before, the tenants
are obliged by their leases to pay sterling which is lawful current
money of England; then they will turn their own farmers, as too many of
them do already, run all into sheep where they can, keeping only such
other cattle as are necessary, then they will be their own merchants and
send their wool and butter and hides and linen beyond sea for ready
money and wine and spices and silks. They will keep only a few miserable
cottiers. The farmers must rob or beg, or leave their country. The
shopkeepers in this and every other town, must break and starve: for it
is the landed man that maintains the merchant, and shopkeeper, and
handicraftsman.
But when the 'squire turns farmer and merchant himself, all the good
money he gets from abroad, he will hoard up or send for England, and
keep some poor tailor or weaver and the like in his own house, who will
be glad to get bread at any rate.