everywhere. They soon received the name of Bubbles, the most appropriate
that imagination could devise. The populace are often most happy in the
nicknames they employ. None could be more apt than that of Bubbles. Some
of them lasted for a week, or a fortnight, and were no more heard of,
while others could not even live out that short span of existence.
Every evening produced new schemes, and every morning new projects. The
highest of the aristocracy were as eager in this hot pursuit of gain
as the most plodding jobber in Cornhill. The Prince of Wales became
governor of one company, and is said to have cleared 40,000 pounds by
his speculations. [Coxe's Walpole, Correspondence between Mr. Secretary
Craggs and Earl Stanhope.] The Duke of Bridgewater started a scheme
for the improvement of London and Westminster, and the Duke of Chandos
another. There were nearly a hundred different projects, each more
extravagant and deceptive than the other. To use the words of the
"Political State," they were "set on foot and promoted by crafty knaves,
then pursued by multitudes of covetous fools, and at last appeared to
be, in effect, what their vulgar appellation denoted them to be--bubbles
and mere cheats." It was computed that near one million and a half
sterling was won and lost by these unwarrantable practices, to the
impoverishment of many a fool, and the enriching of many a rogue.
Some of these schemes were plausible enough, and, had they been
undertaken at a time when the public mind was unexcited, might have
been pursued with advantage to all concerned. But they were established
merely with the view of raising the shares in the market. The projectors
took the first opportunity of a rise to sell out, and next morning
the scheme was at an end. Maitland, in his History of London, gravely
informs us, that one of the projects which received great encouragement,
was for the establishment of a company "to make deal-boards out of
saw-dust." This is, no doubt, intended as a joke; but there is
abundance of evidence to show that dozens of schemes hardly a whir more
reasonable, lived their little day, ruining hundreds ere they fell.
One of them was for a wheel for perpetual motion--capital, one million;
another was "for encouraging the breed of horses in England, and
improving of glebe and church lands, and repairing and rebuilding
parsonage and vicarage houses." Why the clergy, who were so mainly
interested in the latter clause, should have taken so much interest in
the first, is only to be explained on the supposition that the scheme
was projected by a knot of the foxhunting parsons, once so common in
England. The shares of this company were rapidly subscribed for. But the
most absurd and preposterous of all, and which showed, more completely
than any other, the utter madness of the people, was one, started by an
unknown adventurer, entitled "company for carrying on an undertaking
of great advantage, but nobody to know what it is." Were not the fact
stated by scores of credible witnesses, it would be impossible to
believe that any person could have been duped by such a project. The
man of genius who essayed this bold and successful inroad upon public
credulity, merely stated in his prospectus that the required capital was
half a million, in five thousand shares of 100 pounds each, deposit 2
pounds per share. Each subscriber, paying his deposit, would be entitled
to 100 pounds per annum per share. How this immense profit was to
be obtained, he did not condescend to inform them at that time, but
promised, that in a month full particulars should be duly announced,
and a call made for the remaining 98 pounds of the subscription. Next
morning, at nine o'clock, this great man opened an office in Cornhill.
Crowds of people beset his door, and when he shut up at three o'clock,
he found that no less than one thousand shares had been subscribed for,
and the deposits paid. He was thus, in five hours, the winner of 2,000
pounds. He was philosopher enough to be contented with his venture, and
set off the same evening for the Continent. He was never heard of again.
Well might Swift exclaim, comparing Change Alley to a gulf in the South
Sea,--
Subscribers here by thousands float,
And jostle one another down,
Each paddling in his leaky boat,
And here they fish for gold, and drown.
Now buried in the depths below,
Now mounted up to heaven again,
They reel and stagger to and fro,
At their wit's end, like drunken men
Meantime, secure on Garraway cliffs,
A savage race, by shipwrecks fed,
Lie waiting for the foundered skiffs,
And strip the bodies of the dead.
Another fraud that was very successful, was that of the "Globe Permits,"
as they were called. They were nothing more than square pieces of
playing cards, on which was the impression of a seal, in wax, bearing
the sign of the Globe Tavern, in the neighbourhood of Exchange Alley,
with the inscription of "Sail Cloth Permits." The possessors enjoyed no
other advantage from them than permission to subscribe, at some future
time, to a new sail-cloth manufactory, projected by one who was then
known to be a man of fortune, but who was afterwards involved in the
peculation and punishment of the South Sea directors. These permits sold
for as much as sixty guineas in the Alley.
Persons of distinction, of both sexes, were deeply engaged in all these
bubbles, those of the male sex going to taverns and coffee-houses to
meet their brokers, and the ladies resorting for the same purpose to
the shops of milliners and haberdashers. But it did not follow that all
these people believed in the feasibility of the schemes to which they
subscribed; it was enough for their purpose that their shares would, by
stock-jobbing arts, be soon raised to a premium, when they got rid
of them with all expedition to the really credulous. So great was the
confusion of the crowd in the alley, that shares in the same bubble were
known to have been sold at the same instant ten per cent. higher at
one end of the alley than at the other. Sensible men beheld the
extraordinary infatuation of the people with sorrow and alarm. There
were some, both in and out of Parliament, who foresaw clearly the ruin
that was impending. Mr. Walpole did not cease his gloomy forebodings.
His fears were shared by all the thinking few, and impressed most
forcibly upon the government. On the 11th of June, the day the
Parliament rose, the King published a proclamation, declaring that
all these unlawful projects should be deemed public nuisances, and
prosecuted accordingly, and forbidding any broker, under a penalty
of five hundred pounds, from buying or selling any shares in them.
Notwithstanding this proclamation, roguish speculators still carried
them on, and the deluded people still encouraged them. On the 12th of
July, an order of the Lords Justices assembled in privy council was
published, dismissing all the petitions that had been presented for
patents and charters, and dissolving all the bubble companies. The
following copy of their lordships' order, containing a list of all these
nefarious projects, will not be deemed uninteresting at the present day,
when there is but too much tendency in the public mind to indulge in
similar practices:--
"At the Council Chamber, Whitehall, the 12th day of July, 1720. Present,
their Excellencies the Lords Justices in Council.
"Their Excellencies, the Lords Justices in council, taking into
consideration the many inconveniences arising to the public from several
projects set on foot for raising of joint stock for various purposes,
and that a great many of his Majesty's subjects have been drawn in to
part with their money on pretence of assurances that their petitions
for patents and charters, to enable them to carry on the same, would
be granted: to prevent such impositions, their Excellencies, this day,
ordered the said several petitions, together with such reports from the
Board of Trade, and from his Majesty's Attorney and Solicitor General,
as had been obtained thereon, to be laid before them, and after mature
consideration thereof, were pleased, by advice of his Majesty's Privy
Council, to order that the said petitions be dismissed, which are as
follow:--
"1. Petition of several persons, praying letters patent for carrying on
a fishing trade, by the name of the Grand Fishery of Great Britain.
"2. Petition of the Company of the Royal Fishery of England, praying
letters patent for such further powers as will effectually contribute to
carry on the said fishery.
"3. Petition of George James, on behalf of himself and divers persons of
distinction concerned in a national fishery; praying letters patent of
incorporation to enable them to carry on the same.
"4. Petition of several merchants, traders, and others, whose names
are thereunto subscribed, praying to be incorporated for reviving and
carrying on a whale fishery to Greenland and elsewhere.
"5. Petition of Sir John Lambert, and others thereto subscribing, on
behalf of themselves and a great number of merchants, praying to be
incorporated for carrying on a Greenland trade, and particularly a whale
fishery in Davis's Straits.
"6. Another petition for a Greenland trade.
"7. Petition of several merchants, gentlemen, and citizens, praying to
be incorporated, for buying and building of ships to let or freight.
"8. Petition of Samuel Antrim and others, praying for letters patent for
sowing hemp and flax.
"9. Petition of several merchants, masters of ships, sail-makers, and
manufacturers of sail-cloth, praying a charter of incorporation, to
enable them to carry on and promote the said manufactory by a joint
stock.
"10. Petition of Thomas Boyd, and several hundred merchants, owners
and masters of ships, sailmakers, weavers, and other traders, praying a
charter of incorporation, empowering them to borrow money for purchasing
lands, in order to the manufacturing sail-cloth and fine Holland.
"11. Petition on behalf of several persons interested in a patent
granted by the late King William and Queen Mary, for the making of linen
and sail-cloth, praying that no charter may be granted to any persons
whatsoever for making sail-cloth, but that the privilege now enjoyed by
them may be confirmed, and likewise an additional power to carry on the
cotton and cotton-silk manufactures.
"12. Petition of several citizens, merchants, and traders in London,
and others, subscribers to a British stock, for a general insurance from
fire in any part of England, praying to be incorporated for carrying on
the said undertaking.
"13. Petition of several of his Majesty's loyal subjects of the city of
London, and other parts of Great Britain, praying to be incorporated,
for carrying on a general insurance from losses by fire within the
kingdom of England.
"14. Petition of Thomas Burges, and others his Majesty's subjects
thereto subscribing, in behalf of themselves and others, subscribers
to a fund of 1,200,000 pounds, for carrying on a trade to his Majesty's
German dominions, praying to be incorporated, by the name of the Harburg
Company.
"15. Petition of Edward Jones, a dealer in timber, on behalf of himself
and others, praying to be incorporated for the importation of timber
from Germany.
"16. Petition of several merchants of London, praying a charter of
incorporation for carrying on a salt-work.
"17. Petition of Captain Macphedris, of London, merchant, on behalf
of himself and several merchants, clothiers, hatters, dyers, and other
traders, praying a charter of incorporation, empowering them to raise
a sufficient sum of money to purchase lands for planting and rearing a
wood called madder, for the use of dyers.
"18. Petition of Joseph Galendo, of London, snuff-maker, praying a
patent for his invention to prepare and cure Virginia tobacco for
snuff in Virginia, and making it into the same in all his Majesty's
dominions."
LIST OF BUBBLES.
The following Bubble Companies were by the same order declared to be
illegal, and abolished accordingly:--
1. For the importation of Swedish iron.
2. For supplying London with sea-coal. Capital, three millions.
3. For building and rebuilding houses throughout all England. Capital,
three millions.
4. For making of muslin.
5. For carrying on and improving the British alum works.
6. For effectually settling the island of Blanco and Sal Tartagus.
7. For supplying the town of Deal with fresh water.
8. For the importation of Flanders lace.
9. For improvement of lands in Great Britain. Capital, four millions.
10. For encouraging the breed of horses in England, and improving of
glebe and church lands, and for repairing and rebuilding parsonage and
vicarage houses.
11. For making of iron and steel in Great Britain.
12. For improving the land in the county of Flint. Capital, one million.
13. For purchasing lands to build on. Capital, two millions.
14. For trading in hair.
15. For erecting salt-works in Holy Island. Capital, two millions.
16. For buying and selling estates, and lending money on mortgage.
17. For carrying on an undertaking of great advantage, but nobody to
know what it is.
18. For paving the streets of London. Capital, two millions.
19. For furnishing funerals to any part of Great Britain.
20. For buying and selling lands and lending money at interest. Capital,
five millions.
21. For carrying on the Royal Fishery of Great Britain. Capital, ten
millions.
22. For assuring of seamen's wages.
23. For erecting loan-offices for the assistance and encouragement of
the industrious. Capital, two millions.
24. For purchasing and improving leasable lands. Capital, four millions.
25. For importing pitch and tar, and other naval stores, from North
Britain and America.
26. For the clothing, felt, and pantile trade.
27. For purchasing and improving a manor and royalty in Essex.
28. For insuring of horses. Capital, two millions.
29. For exporting the woollen manufacture, and importing copper, brass,
and iron. Capital, four millions.
30. For a grand dispensary. Capital, three millions.
31. For erecting mills and purchasing lead mines. Capital, two millions.
32. For improving the art of making soap.
33. For a settlement on the island of Santa Cruz.
34. For sinking pits and smelting lead ore in Derbyshire.
35. For making glass bottles and other glass.
36. For a wheel for perpetual motion. Capital, one million.
37. For improving of gardens.
38. For insuring and increasing children's fortunes.
39. For entering and loading goods at the custom-house, and for
negotiating business for merchants.
40. For carrying on a woollen manufacture in the north of England.
41. For importing walnut-trees from Virginia. Capital, two millions.
42. For making Manchester stuffs of thread and cotton.
43. For making Joppa and Castile soap.
44. For improving the wrought-iron and steel manufactures of this
kingdom. Capital, four millions.
45. For dealing in lace, Hollands, cambrics, lawns, &c. Capital, two
millions.
46. For trading in and improving certain commodities of the produce of
this kingdom, &c. Capital, three millions.
47. For supplying the London markets with cattle.
48. For making looking-glasses, coach glasses, &c. Capital, two
millions.
49. For working the tin and lead mines in Cornwall and Derbyshire.
50. For making rape-oil.
51. For importing beaver fur. Capital, two millions.
52. For making pasteboard and packing-paper.
53. For importing of oils and other materials used in the woollen
manufacture.
54. For improving and increasing the silk manufactures.
55. For lending money on stock, annuities, tallies, &c.
56. For paying pensions to widows and others, at a small discount.
Capital, two millions.
57. For improving malt liquors. Capital, four millions.
58. For a grand American fishery.
59. For purchasing and improving the fenny lands in Lincolnshire.
Capital, two millions.
60. For improving the paper manufacture of Great Britain.
61. The Bottomry Company.
62. For drying malt by hot air.
63. For carrying on a trade in the river Oronooko.
64. For the more effectual making of baize, in Colchester and other
parts of Great Britain.
65. For buying of naval stores, supplying the victualling, and paying
the wages of the workmen.
66. For employing poor artificers, and furnishing merchants and others
with watches.
67. For improvement of tillage and the breed of cattle.
68. Another for the improvement of our breed of horses.
69. Another for a horse-insurance.
70. For carrying on the corn trade of Great Britain.
71. For insuring to all masters and mistresses the losses they may
sustain by servants. Capital, three millions.
72. For erecting houses or hospitals, for taking in and maintaining
illegitimate children. Capital, two millions.
73. For bleaching coarse sugars, without the use of fire or loss of
substance.
74. For building turnpikes and wharfs in Great Britain.
75. For insuring from thefts and robberies.
76. For extracting silver from lead.
77. For making China and Delft ware. Capital, one million.
78. For importing tobacco, and exporting it again to Sweden and the
north of Europe. Capital, four millions.
79. For making iron with pit coal.
80. For furnishing the cities of London and Westminster with hay and
straw. Capital, three millions.
81. For a sail and packing cloth manufactory in Ireland.
82. For taking up ballast.
83. For buying and fitting out ships to suppress pirates.
84. For the importation of timber from Wales. Capital, two millions.
85. For rock-salt.
86. For the transmutation of quicksilver into a malleable fine metal.
Besides these bubbles, many others sprang up daily, in spite of the
condemnation of the Government and the ridicule of the still sane
portion of the public. The print-shops teemed with caricatures, and
the newspapers with epigrams and satires, upon the prevalent folly. An
ingenious card-maker published a pack of South Sea playing-cards, which
are now extremely rare, each card containing, besides the usual figures,
of a very small size, in one corner, a caricature of a bubble company,
with appropriate verses underneath. One of the most famous bubbles
was "Puckle's Machine Company," for discharging round and square
cannon-balls and bullets, and making a total revolution in the art of
war. Its pretensions to public favour were thus summed up, on the eight
of spades:--
A rare invention to destroy the crowd
Of fools at home, instead of fools abroad.
Fear not, my friends, this terrible machine,
They're only wounded who have shares therein.
The nine of hearts was a caricature of the English Copper and Brass
Company, with the following epigram:--
The headlong fool that wants to be a swopper
Of gold and silver coin for English copper,
May, in Change Alley, prove himself an ass,
And give rich metal for adulterate brass.
The eight of diamonds celebrated the Company for the Colonization of
Acadia, with this doggrel:--
He that is rich and wants to fool away
A good round sum in North America,
Let him subscribe himself a headlong sharer,
And asses' ears shall honour him or bearer.
And in a similar style every card of the pack exposed some knavish
scheme, and ridiculed the persons who were its dupes. It was computed
that the total amount of the sums proposed for carrying on these
projects was upwards of three hundred millions sterling, a sum so
immense that it exceeded the value of all the lands in England at twenty
years' purchase.
It is time, however, to return to the great South Sea gulf, that
swallowed the fortunes of so many thousands of the avaricious and the
credulous. On the 29th of May, the stock had risen as high as five
hundred, and about two-thirds of the government annuitants had exchanged
the securities of the state for those of the South Sea Company. During
the whole of the month of May the stock continued to rise, and on the
28th it was quoted at five hundred and fifty. In four days after this it
took a prodigious leap, rising suddenly from five hundred and fifty to
eight hundred and ninety. It was now the general opinion that the stock
could rise no higher, and many persons took that opportunity of selling
out, with a view of realising their profits. Many noblemen and persons
in the train of the King, and about to accompany him to Hanover, were
also anxious to sell out. So many sellers, and so few buyers, appeared
in the Alley on the 3rd of June, that the stock fell at once from eight
hundred and ninety to six hundred and forty. The directors were alarmed,
and gave their agents orders to buy. Their efforts succeeded. Towards
evening confidence was restored, and the stock advanced to seven hundred
and fifty. It continued at this price, with some slight fluctuation,
until the company closed their books on the 22nd of June.
It would be needless and uninteresting to detail the various arts
employed by the directors to keep up the price of stock. It will be
sufficient to state that it finally rose to one thousand per cent. It
was quoted at this price in the commencement of August. The bubble
was then full-blown, and began to quiver and shake, preparatory to its
bursting.
Many of the government annuitants expressed dissatisfaction against the
directors. They accused them of partiality in making out the lists for
shares in each subscription. Further uneasiness was occasioned by
its being generally known that Sir John Blunt, the chairman, and some
others, had sold out. During the whole of the month of August the stock
fell, and on the 2nd of September it was quoted at seven hundred only.