debt was under consideration; but the discussion was perforce postponed, as on the next day the Minister was stabbed in the breast by the Marquis of Guiscard, who was being examined on a charge of treason by the Privy Council, and he was confined to his room for some weeks. In the meantime his brother, Edward,' proceeded to work out the scheme, presently to be known as 'the Earl of Oxford's Masterpiece,' and Harley had sufficiently recovered by May 2 to be able to submit it to Parliament. He stated that, in the circumstances, capitalists were reluctant to advance money at the usual rates, and it was obvious that exceptional advantages must be offered. His plan to satisfy the proprietors of all national debts was to allow them six per cent. interest, redeemable by Parliament at one year's notice after Christmas, 1716, and secured on the duties on wine, vinegar, tobacco, East India goods, wrought silk, whalefins, and certain other articles, and to incorporate them to carry on a trade to the South Sea. If once settled, he declared with enthusiasm, this trade would bring to Great Britain vast riches om Peru and Mexico. The proposal was keenly debated, but the main idea was approved, and a Bill brought in on May 18, 1711, quickly passed both Houses and received the Royal Assent.

In order clearly to understand the scheme, it is necessary to print the principal clauses of the Bill:

To the intent that the trade to the South Sea may be carried on for the honour and increase of the wealth and riches of this realm, Her Majesty is hereby empowered to incorporate

1 Edward Harley (1664-1735), M.P. for Leominster, 16981722. In 1702 he was appointed Auditor to the Exchequer, which post he held for life. He wrote The Memoirs of the Harley Family,' which have been printed by the Historical MSS. Commission in the Portland MSS., vol. V.

all the proprietors of the said debts, in the usual style and form. This Act allows the Company £8,000 per annum for charges of management. And, for better securing the privileges of the Bank of England, this new Company shall not borrow money on their bills or notes on demand, nor at any less time than six months neither shall they discount bills of exchange, nor any other bills or notes whatsoever; nor shall they keep any books or cash for any persons or corporations, excepting their own alone.

And whereas it is of the greatest consequence to the honour and welfare of this Kingdom, and for the increase of the strength and riches thereof, and for vending the product and manufacture, goods and merchandise of, or brought into, this Kingdom, and the employment of the poor, that a trade should be carried on to the South Seas and other parts of America, hereinafter mentioned, which cannot so securely and so successfully be begun and carried on as by a corporation with a joint stock, exclusive of all others. For the better encouragement of the members of the said intended company, be it enacted:

'That this Company shall, from the 1st of August, 1711, be vested for ever in the sole trade and traffic, unto and from all the kingdoms, lands, islands, cities, towns, ports, creeks, and places, in America, on the east side thereof, from the river of Orinoco to the southernmost part of Terra del Fuego; and on the west side thereof, from the southernmost part of the said Terra del Fuego, through the South Seas, to the northernmost part of America; and into, unto, and from all countries, etc., within the said limits, which are reputed to belong to the crown of Spain, or which shall hereafter be found out or discovered within the said limits, not exceeding three hundred leagues from the continent of America, between the southernmost part of Terra del Fuego and the northernmost part of America, on the west thereof, except the kingdom of Brazil, and such other places on the said east side of America as are now in the actual possession of the crown of Portugal, and the country of the Surinam in the possession of the States-General of the United Provinces; it not being intended that the sole trade to any part of the east side of America, now in the actual possession of the crown of Portugal or the States-General, shall be granted by this Act but it shall be and remain lawful for all Her Majesty's subjects to trade and traffic thither, as full and freely, in all respects, as they might or could do, if this Act had not been made.

'None shall trade within those limits, but the Company, their agents, and factors.

'The Queen may, in her intended charter of incorporation, empower the said Company to make laws for the good government of their trade, etc., and to inflict reasonable penalties, by imprisonment and mulcts, for any breach thereof.

'Forfeiture of ships and merchandise, and double their value, for any but the Company, or those licensed by the Company, trading to, or frequenting, any part of their limits; one-fourth to the Crown, one-fourth to the informer, and onehalf to the Company.

The Company to be the sole owners and proprietors of all islands, forts, towns, and places which they shall hereafter discover within their limits; to hold the same of the Crown, in free and common soccage by fealty, on the annual rent of an ounce of gold, if demanded.

All prizes of ships and merchandise, taken by the Company, shall be their sole property: for which end, they may seize by force of arms the persons, with their ships and goods, trading within their limits.

'The Company's bond shall charge as well their annual fund, as their other stock effects, and estate; and shall be assignable by endorsement. And it shall be felony to counterfeit this common seal or bonds, or to alter or utter the same knowingly.

The Company not to sail into any of the before-named limits beyond Terra del Fuego, except only through the Straits of Magellan, or else round the said Terra del Fuego; nor shall sail from thence unto any part of the East Indies; nor shall they return to Great Britain or to any other part of Europe, Asia, Africa, or America, by any other way except through the said Straits of Magellan, or by Terra del Fuego aforesaid : neither shall they trade in the goods of India, Persia, or China, nor in any other commodities of the countries within the limits of the East India Company. Nor shall this new Company's ships sail farther west than the shores of Chili, Peru, Mexico, California, or any other shores contained between Terra del Fuego and the northernmost part of America, than three hundred leagues; under forfeiture of ships merchandise, and double the value: one-third to the Crown, and two-thirds to the East India Company.

'And forasmuch as nothing can more conduce to the increase of the strength and riches of this kingdom, and the breeding of able seamen, than preserving and enlarging the fishery, the Queen may, in her Charter to this Company, direct a stock of