Geo. I.

On the 8th of March, Sir Jofeph Jekyll prefented to the 1719-20, houfe a bill, to prevent the impious practice of duelling; which was occafioned by a duel between Mr. William Aldworth of Windfor, and Mr. Owen Buckingham, member of parliament for Reading; who, quarrelling after having drank too frecly, fought in the dark, and Mr. Buckingham was killed. But this bill was dropped in the house of lords.

A bill against duel

ing drop ped by the

lords.

The SouthSea scheme.

The king had carneftly recommended, in his fpeech, the confideration of all proper means for leffening the debts of the nation. Accordingly, a fcheme was laid to reduce all the public funds into one, for discharging the national debt. The South-Sea company and the Bank of England presented their feveral proposals to the house of commons. The liberty of taking in the national debts, and, in confequence thereof, of increafing their capital ftock and yearly fund, was looked upon as a very valuable benefit; and therefore the contest between the Bank and the South-Sea company was great. They endeavoured to outbid each other in parliament. The South-Sea company, for the liberty of taking into their stock the irredeemable and redeemable debts, by purchase or subscription (amounting to above thirty millions) offered at first 3,500,000l. to be paid into the Exchequer by four equal quarterly payments, beginning at Lady-day 1721. And agreed, that their whole capital fhould be reduced to 4 per cent, after Midfummer 1727, and be thence, forth redeemable by parliament.

The Bank, for the like liberty, offered, upon the long and fhort annuities, three years purchase, which (if the whole purchase was completed) would amount to about 2,367,6001. and 20 per cent. upon the redeemable debts, amounting to about 3,180,000l. So their whole offer was above five millions and a half,

But the South-Sea company, being refolved, at any rate, to obtain the liberty of taking in the public debts, offered, in a fecond scheme, not only 500,000l. more, but also four years and a half's purchafe upon all the annuities they should take into their capital ftock, which (if all the annuities were taken in) would amount to about 3,567,503 1. So that their whole offer was about 7,567,500l. They likewife offered to circulate 1,coc,000l. in Exchequer bills gratis, and pay 3 per cent. intereft for that million; as alfo one year's purchafe upon fuch annuities, as fhould happen not to come into the company's capital, before the rft day of March

3721,

Though

Though the Bank made fome farther advances, this scheme Geo. I. of the South-Sea company was approved of by the commons, 1719-20. and a bill was ordered to be brought in.

While this affair was debating in the house of commons, the ftocks of the South-Sea company gradually rose from 130 to above 300, and advanced to near 400; but, after fome fluctuation, fettled at about 330, in which ftate, with little variation, they continued to the end of March. This great rite was chiefly owing to the rejection of a motion for a clause in the South Sea bill, to fix what share in the capital ftock of the company the proprietors of the annuities should have, who fhould voluntarily fubfcribe, or how many years purchase in money they should receive upon subscribing, at the choice of the proprietors. It was pretended, that the obliging the company to fix a price upon the annuities might endanger the fuccefs of fo beneficial an undertaking: That, as it was the interest of the company to take in the annuities, fo it was not to be doubted, they would use all their endeavours for that purpose, and offer fuch terms to the annuitants, as would encourage them to come in voluntarily : That therefore the company ought to be allowed a competent time to try what they could do; and if, in a fubfequent feffion of parliament, it fhould appear, that the conditions offered to the annuitants were not reasonable, and confequently had been ineffectual, the commons, in fuch a case, might give what directions they fhould think proper about the matter. Upon these and other reasons, the motion was rejected; and foon after, the bill for enabling the SouthSea company to increase their capital ftock, paffed the com- April 2 mons, by a majority of a hundred and feventy-two against fifty-five, and fent to the lords for their concurrence, where it occafioned a long debate.

The lord North and Grey fpoke first against the bill, which he represented to be unjuft in its nature, and might prove fatal in its confequences, fince it feemed calculated for the inriching of a few, and the impoverishing of a great many, and not only made way for, but countenanced and authorised the fraudulent and pernicious practice of stockjobbing, which produced an irreparable mischief in diverting the genius of the people from trade and industry.' His lordship was fupported by the duke of Wharton, who endeavoured to fhew, That the South-Sea project might prove of infinite disadvantage to the nation: Firft, as it gave foreigners an opportunity to double and treble the vaft fums they had in our public funds, which could not but tempt

them

Geo. I. them to withdraw their capital ftock, with their immenfe 1719-20. gains, to other countries, which might drain Great-Britain

of a confiderable part of its gold and filver. Secondly, That the artificial and prodigious rife of the South-Sea ftock was a dangerous bait, which might decoy many unwary people to their ruin, and allure them, by a falfe profpect of gain, to part with what they had got by their labour and industry, to purchafe imaginary riches. And, in the third place, that the addition of above thirty millions capital would give fuch a vaft power to the South-Sea company, as might endanger the liberties of the nation, and in time fubvert our excellent conftitution, fince by their extenfive intereft they might inAluence most, if not all the elections of the members, and confequently overrule the refolutions of the houfe of commons.' Earl Cowper fpoke alfo againft the bill, which he obferved to be ushered in and received with great pomp and acclamations of joy, but which was contrived for treachery and deftruction His lordfhip urged in particular, That in all public bargains, it is a duty incumbent on them, who are intrufted with the adminiftration, to take care, that the fame be more advantageous to the ftate, than to private perfons; but that a quite contrary method feemed to have been followed in the contract made with the South-Sea company. For if the ftocks were kept up to the advanced price, to which they had been raised by the oblique arts of stock-jobbing, either that company, or its principal members, would gain above thirty millions fterling, of which they gave but one fourth part towards the difcharge of the national debts. That, though this fcheme carried the face of public good, yet nothing could be fo, that was founded on injuftice; as his lordship took this bill to be. That he apprehended, in particular, that the main publick intention of it, viz. The re-purchase of annuities, would meet with infuperable difficulties; and that, in fuch a cafe, none but a few perfons, who were in the fecret, and had early bought flocks at a low rate, and afterwards fold them at a high price, would, in the end, be gainers by this project.' The duke of Bucks and some other peers fpoke on the fame fide; but the earl of Sunderland answered moft of their objections; and, among other things, faid, That they who encouraged and coun tenanced the scheme of the South-Sea company, had nothing in their view, but the eafing the nation of part of that heavy load of debt it labours under. That, on the other hand, the managers for that company had undoubtedly a prospect of private gain, either to themfelves or to their corporation;

but

but that, when that scheme was accepted, neither the one nor the other could forefee, that the stocks would have risen to the price they were now advanced. That, if they had continued as they were at that time, the public would have had the tar greater fhare of the advantage accruing from that fcheme; and if the flocks were kept up to the price they had been raifed to, which was not unlikely, it was but reafonable, that the South-Sea company fhould enjoy the profits procured to it, by the wife management and induftry of its directors, which would inable it both to make large dividends among its members, and thereby compafs the ends intended by this scheme.' After thele debates, the bill paffed without any amendment or divifion; and, on the 7th of April, the king came on purpose to the houfe of lords, to give the royal affent to it. What were the effects of this famous act, will hereafter be largely fhewn.

Geo. I,

1720..

This act recites the feveral public debts and funds, the acts Abstract of by which they were established, the terms and conditions of the act for their continuance, the amounts of the refpective fums of increafing the capital principal and intereft due and payable, and dividing them stock of the into feveral claffes and fpecies of debts, namely, long and South-Sca fhort annuities, redeemable and irredeemable debts, and ita- company. ting what rate of intereft they bore, computes the principals and annuities at certain sums, in order to fettle the different rates and values at which they were to be estimated, to be redeemed, purchased, or taken in by the South-Sea company.

The redeemable debts are stated at 16,546,4821. 7 s. (c), the irredeemable annuities, being for the remainder of feveral long terms of 89, 96, and 99 years, are com→

1 d.

Geo. I. puted to amount to 666,8211. 8s. 3d. a year, befides fome 1720. unsubscribed lottery annuities and thort annuities for 23 and 22 years then standing out.

The company is declared willing, and is accordingly authorised to take in by purchase, or fubfcription, the irredeemable debts, at fuch time or times as they fhall find convenient, before the 1ft of March 1721, and without any compulfion on any of the proprietors, at fuch rates and prices as fhall be agreed between the company and the refpective proprietors.'

The company is likewife declared willing, and is authorifed at fuch time and times, as they fhall fee convenient (but fubject to fuch notices of redemption as are therein mentioned) to take in all and every the redeemable debts, amounting to 16,546,4821. 7 s. 1 d., either by purchase, taking fubfcriptions, or by paying them off.

Provided that the company for every annuity, part of the long annuities computed at 666,821 1. 8s. 3d. fo to be taken by them, may, in lieu thereof, have an addition made to their capital ftock, after the rate of twenty years purchase; and fuch refpective additions to their prefent yearly fund or annuity, as is after limited.

And for all fuch fhort annuities, as fhall be taken in, to have an addition to their capital ftock, after the rate of fourteen years purchase, with a proportional addition to their prefent annuity or yearly fund.

And for all and every of the redeemable debts that shall be taken in by purchase, fubfcriptions, or paying off, to have an addition of 100l. to their capital ftock, for every 100 l. of the principal monies fo taken in, with a proportional addition to their prefent yearly fund.

Thus far it appears, that the proprietors of these public Remarks. debts amounting to above twenty-fix millions, that fubfcribed into the South-Sea ftock, by virtue of this act of parliament, acted by their own choice and option without any compulfion. The irredeemables were left at full liberty to have remained in the condition they were, and an exprefs provifion was made for the fecurity of fuch as did not fubfcribe.

The redeemables had their option to have waited for the terms of redemption, to which they were before liable, and to have taken their money, when the public had been in a condition to pay them.