1000000031

729 / 868

S T o 6]2 S T O
...bich they ehore, .od whieh rully .nrlVers ,heir eod, wa.
a, rnllows.
T hey l\pened a ruhrcription. which th~y renelV annuillly,
for a mlllion of monc:y ~ wherein (he fubfcribers ad l/doce
JO p. r ceOl. and Cfue r In o d. eont rolét la pJy the Tcm IInder I
or <l"Y pHI fherear, whencvcr lhe bAnk null CAII upoo them,
under (he p::n"hy of forft" llng 'he JO per cenL fa ilUV;¡n .
ced; in conílJercu ion of WhlCh, {he h..nk p \ys lhe fubfcri.
bers 4 pt:r c~nr ¡nterelt ror the: money in, and :T per
c.eol. for lhe ,whole fum thcy a~ree la furnln\ ; and in care
a call fh ould be macle upon lhem (1')1 lhe whole, or, aoy pHl
thereor lhe b.ink r~nher agrees to payothem al (he rale of
5 per cene per "nnum for fllCh fum ull they repay it,
which (he1 aTe under ;In obltg:w on t O do al lhe cnd oE lhe
year. By this meanG the bank obtains 0111 lhe purpofes uf
keeping a mili ion of mooey by lhemj ~nd lhuugh Ihe rub–
fqibers, ¡f no eall is mOlde upon· them (WhlCh IS io general
(he ear~, ) receive 6+ per cent. for rhe money theyadv,lOce.
yet lhe company galOs lhe fum of 23.500 1 per ;¡nnum by
the eontraét; as will appear by rhe fullowing aeeouol.
The bank reeeives {rom lhe government
for the advance of a mili iDA -- [ 3°,000
The hank pays to lhe fubferibers who advaoce
100.000 1. and engage 10 pay (when eallcd
foc) 900,000 1. more 6.500
The ele" 'o ,he baok ,here:ore i. 23 l OO
Tlois is ,he !la'e or ,he care, provided , rhould
make 00 eall 0 0 ,he rubren bers: \Vhieh ,he, w,lI be vcry
unwilliog to do. bccau[e it would nOI ooly Idren lheir pro–
nt. bUI affea the publle credi( in gentral.
B aok.llock m.y 0 0' improperly be eall, d a tradiog !loek,
fi nee \Vith ,his ,hey deal very lugely in roreigo ~old and
fil ver, in diCcouoting bilis of exdu oge, &c_ Hdide which,
(hey ;He allowed by lhe goycrnment l'ery confiderable funu
:a l1nually (or the management of the dnouilies paid at their
oAlce _ AII which advantages render a flHre in their' Oock
.,.ery Valt1iible, thtlugh it is not equ:.1 in Yllue ro the EdH
I ndIa Hock, Tbe company make dividends of the prolits
h. ILyearly, or whieh no,iee is pubt.e1y given ; when thore
who have oec;¡,(ion for their money may readdy rcceive it j
but private perlons, ¡frhey judge cODvenient, are permitted
tO,conti gue their funds , and to have their ¡meren added ro
the principal.
T his co:npany is under lhe direOion ofa gOTernor, deputy..
goveroor, 2nd 24 dil ellors, who are: annu"lIy elcéted by the
general eoun, in the f.. m\! minner as in the E ..1t India coro·
pí'.ny_ Thineen. or more, compore a eoun of direaors for
l11anaging l"'e ..Ir irs of the company.
T he offi, crs of Ihis eompany are very numerOU$.
Ojlh. Soulh S.a COlllpanJ.
D uring the long Wilr with France io lhe reíAo of quecn
Anne, the p.yment or Ihe f¡,Jors of the royal nn'y belng
neglcéted. l nd Ihey recel\.jng tickrts intlead of money, \Vera
;«ndy obl'ged by ,h,i r neeclli,ies 'o rdl ,hefe ,iekets
10 <lV.Hilious men at a difcount of 40 1. and rometimes ,o 1.
pt:r cenL Ry this and Hlher mean, lhe d(bts of lhe na·
tion unprovidcd for by ,,~rli~menl, anct wbich a010unted tO
9. 471.3" I reJl io'o ,he hands of ,h, fe ururers. On
", hleh, r\'l r F-J.ulcy, at that time chdncellor of tht." exche–
quer, aod .(ter\'lord ear! or Oxrord, propored a f;h ';ne 'o
allow ,he pl'orrie,ors or ,here d' hts and dcr.eieoeies 6 1.
per eene pu anoum, aod to incorpor¡ttc tht:m loor ler la
thC!ir carrying on a tr.ldC! 10 lhe Sou·h Sed: and lhey \Vere
aecun.lingly lOeorporOllelt llndcr rhe titleol [he G 'lvcfllor Oled
Company of tvlt:rchams uf G reat Hrítaln 1r~dlng 10 the
Soulh -Seas ¡nd' other pans of Amerleol, and tur eoeol.l–
raging ,he F,nl<ry. &c.
Though ,h:s feem, d formed ror ,he rdke or eom–
mercc, it is certain the mlnlU ry never tlu,ught Itriou(]y, du..
ríng lhe eourre oftha \Var, about m3king aRy fettlements on
the coa(l of South Ame rica, which \Vas what flauered rhe ex·
pt!tbtions of lhc pt:ople ; nor WAS it ind..!eJ ever carflt:d io·
to exe¿utjon. or any traJe ever andertaken by thts compa..
ny, except the Allicnlo. io purfuance of Ihe He,uy ot U.
trecht, for furn,fhi ng the Spa01ards Wllh negloes, of whieh
this cOOlpany W,IS depnved by the late conveolloo betweC'1
the couns of Grea~ Bnuin and Spain, foon after lhe u ealy
of Aix l. eh' pelle io '7 48.
After thls, fome olher (UOlS were lenl lO thegovernm.ent
in lhe reign of queen Anne al 6 pcr ceOl , In {he thHd of
Geor~e 1. the ¡nteren of lhe whoJe \Vas reduced to 5 per ceot.
and they advaoeed two mllJ¡ons more{othe governOlent 1l the
fame 1Dterert. By (he (latute of che ' (h ofGeorge 1 it was
detlarcd , tbat this company might redeem 211 or any ofthe
rctdre01<tble Dational debts, io confidaauon 01 which lhe
compaoy were empowereri tO augment their capital aceor.
d,ng ' 0 ' he rums ,hoy fhould direh<rge ; and ror enabliog ,he
10 «tire fuch rums for p,.rchafing annuities, ex..
ch,mgmg ror ready money ncw exchequer-blll" carrying on
thei r trade 6~, lhe company mlght, by fuch medns as they
fltould think proper, raire fuch fums of money as iD a gene·
ral eoun 01 the fh ould be jud~ed oeee(fary. T he
company were allo Impowered tO raife 1D0ney on cootraas,
bilis, bonds, or oblig.ttlons under lhelr commoo (eal, on the
credit of their capital Uock, But ir lhe fub·goveroor, de–
PUty-governor, or other memhers 01 the eompilny, Chould
purchilfe Jands or revenoes of (he cr¡Jwn upon .lecount of
the corporatioD, or lend mODey by loao or aotieipation OQ
any branch of Ihe rennue, other than (ueh pan ooly on
which a credit of loan was graoced by parliam("nt, (uch fub·
governor, or o.her member of the compeloy, Chould forfelt
treble the vdlue of money fo Ic:nt .
The/a' al Sooth·S.. reheme, tranr.éled i. ,he yeor 1720 ,
was executed upon the Jan mentionc:d (htute, The compa·
ny had a' fir!l re' out wi ,h good rueeers, aod ,he • •Iue of
,heir !loek ror ,he firU nye yeor, had ri ren r.ller ,han ,h..
or aoy o,her and his Maj,!ly, ar«r purehafing
10,000 1. Clock. had eoode_cendc:rl tO be: their governor.
Things were in (his on. when, t:lkin.e a.dvanuge of lhe
above !tatu,e. ,he Sou,h S,a bubble was proje<'l<d. The
pretended deGgn of whicb was tO ralCe a ruad for colrrying
00 a trolde to the Somh SeAS, anJ pUlchafing~onuitles. oc.
paid to lhe: other eompClOltS : and propofal'.io \Vere pnnted
aod dtf~ftbuted . Ihc:wing the adl'antage~ of the defigD, .od
inviting perrons inlo il. T he fum oc eIT' ry for earrying it
on , togl.1 her with the profits th ,( wcre lO anfe flom it,
were divHJc:d Into 3 eendi n number o( (hJrcs, or lubfcr,p–
lIons, tO be purehafed by perroas dlfpol d to ad\'entnre thc!r\!·
in. And Ihe bt'ttcr tO~arry on tbe: d(cepuon. lht." dtn...:.t¡Jrs
en gaecd tO nuke very luge dl\-Idcnds. and ¡Etu.dly dC'cI red,
tlut cvery 100 I orlgln.! Hoek wuuld yleld 50 I pi!r .0'
num; ""h leh occafion d fo grcat a rife of (heir ftoek , thu il
of 100 1. was rold ror upward of 1000 J. T blS ",a.
in ,