exceffively increased, whereby the perfons, who had the fame, had the advantage of that extraordinary rise.

That, at a court of directors held the 15th day of June laft, it was refolved to take in a third money-fubfcription at the rate of 1000l. per cent. one tenth part whereof was to be paid down at the time of fubfcribing; and, at a court of directors held the 23d day of the fame month, the fub governor acquainted the court, That the faid third money-fubfcription was completed, without mentioning to what fum; but at the before-mentioned general court, held the 8th day of September laft, he declared the fame to be for five millions; and Mr. Knight, late cafhier of the South-Sea company, by an article dated the 20th day of June laft, in the cafh-book, fol. 125, charges the faid fum of five millions as received; which account was passed, and allowed by the company's committee of treafury, on, or fome time after the 4th day of August laft; and yet, in the account of the third money-fubfcription delivered in to this houfe, it is ftated at 4,400,000l. only the remaining fum of 600,000 1. being entered on the credit fide of the cafhbook, on the 19th of December 1720, as a fuppofed deficiency of the payment on this fubfcription; although it appears to your committee, upon the evidence of Mr. Lockyer, and others, that not only the whole

Soon

fum of five millions, but even a confiderable exceeding thereon was paid in; that a great deal of money was repaid back to reduce the fubfcription to five millions; and that they had money enough paid in for near eight millions.

That, at a court of directors held the 12th day of Auguft Laft, it was refolved to take in a fourth money-subscription for one million, at the rate of 1000l. per cent. And, at a court of directors held the 25th of the fame month, it was declared, That, upon cafting up the books, it was found the faid fourth money-subscription, inftead of one million, was increafed to 1,250,000l. which was occafioned by taking the faid fubfcription in several books; and at the before-mentioned general court, held the 8th day of September last, the fub-governor declared the fourth moneyfubfcription was completed to 1,250,000 1. And Mr. Knight the cafhier hath, in an article dated the 30th day of Auguft laft, and entered in the cath book, fol. 128, given the company credit for the first payment made on the 4th fubfcrip tion, viz. for 2,500,000!. which account was paffed, and allowed by the committee of treafury on the 4th day of Oftober laft; and yet, in the account of the faid fourth moneyfubfcription delivered into this house, it is ftated at 1,200,000l. only: That, upon the examination of Mr. Knight, and fe

veral of the directors, in relation to the deficiency of the faid third and fourth money fubfcriptions, their anfwers were very unfatisfactory: And your committee cannot but obferve, That as, by the before mentioned additions to the first two moneyfubfcriptions, fome perfons made great gains, whilft the price of the faid fubfcriptions continued high; fo, when the price of the fubfcriptions fell, many other perfons were favoured, by having their fubfcriptions withdrawn, which was the caufe of the deficiency.

That, on the fecond moneyfubfcription each director was allowed, for himself and friends, 26,000l. and that the remainder of the million, at first refolved to be taken in was at the difpofal of the fub and deputy-governors; but, for whofe benefit the additional fubfcription of 500,000l. was intended, your committee have not yet been able to discover.

That, on the third moneyfubfcription each director was allowed 54,000l. for himself and friends; and that several large lifts of the names of perfons were fent to the fub-governor, to be admitted into the faid third fubfcription; viz. by the earl of Sunderland, firft lord commiffioner of the treafury, a lift amounting to to 167,000l. by John Aiflabie, Efq; late chancellor of the Exchequer, another of the lords of the treasury, a lift amounting to 75,300l. by James Craggs, Efq; VOL. XIX.

1. That

one of his majesty's principal fecretaries of itate, two lifts, amounting to 695,000l. and by Charles Stanhope, Efq; one of the fecretaries of the treasury, a lift amounting to 49,700 1. Which four laft-mentioned lifts amount to 987,000 1.

That, upon examination, it appears, that other lifts have been given in, as well on the third as on the fecond fubfcription; but, the fame being loft or miflaid, as your committee have been informed, they are thereby difabled, at prefent, from making any report there

on.

They find 25,000l. of the fecond fubfcription hath been gi ven unto John Aiflabie, Efq; about eight or ten days after the opening of that fubfcription, at which time the fubfcriptions were at an advanced price, of about 401. per cent. and foon after rofe vaitly higher.

That it doth not appear to your committee that any of the perfons, who had the honour to ferve his majefty in the treasury, or in any other part of the adminiftration, used any endeavours to prevent the directors of the South-Sea company from taking in fubfcriptions at the aforefaid extravagant prices; but on the contrary it doth appear, that fome of then, by the lifts they gave in as aforefaid, did not only encourage and promote the faid fubfcriptions, but did greatly enlarge the fame.

Your committee obferving that Sir John Fellows, late fub-go

vernor

1720-21.

vernor of the South-Sea company, did at a general court of the faid company, held the 21ft of April 1720, acquaint that court, that the defign of the go vernment's million of Exchequer-bills to be lent to the company, by virtue of the late act of parliament for iffuing Exchequer-bills to be circulated at or near the Exchequer, was to enable the company to lend money upon their ftock; and finding that, by order of the court of directors of the faid company, the fame had been fo lent out, your committee proceeded to enquire into this affair.

And on the examination of Mr. Robert Knight, late cafhier of the faid company, he declared, that he did not remember that any application was made by the directors to have thofe bills iffued; but that the first difcourfe of this matter was by John Aiflabie, Efq; then chancellor of the Exchequer, a week before thepropofalsof the SouthSea company were offered to this houfe; that Mr. Aiflabie faid, it would be more acceptable to have thofe bills circulated at the Exchequer, than to fend them to the Bank or elsewhere, and that the company might afford to circulate them for nothing, they being to be lent to the company to enable them to execute their fcheme. That the examinant believed, the intention of lending the faid bills upon ftock had been communicated to Mr. Aiflabie, and that he (the examinant) on his at

aiders

tending at the treasury to follicit the ffuing of these bills, did mention that defign, and never heard that the treasury difapproved of it.

That Sir John Blunt declared it would be better to employ those bills in the lending upon ftock, than in paying off the redeemables, which would take up more time.

Hereupon your committee examining Sir John Fellows, he faid, that he and others of the directors treated with Mr. Aislabie and others at the treasury about the iffuing the faid Exchequer-bills; but that it was first propofed to Mr. Aislabie, and the examinant believed, it was at first mentionedby Sir JohnBlunt, in a committee of the directors, and that it was the general opinion of the directors.

Your committee examining Sir John Blunt upon this tranfaction, he declared, that he spoke to Mr. Aiflabie to haften the iffuing of the faid bills; and that himfelf, or some other of the directors, acquainted Mr. Aiflabie (as he believes, at the treasury) with the company's defign to lend them upon stock; that it did not at first arife from the directors, but that it was intimated to them before, or very foon after the company's propo fals were laid before the house, by fome of the treafury, and on recollection, the examinant faid, it was by Mr. Aislabie, to enable the company to carry on their fcheme, and thereby to raife the price of their stock, the

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borrowers being enabled to buy ftock.

That, by the book of loans delivered in to this houfe, it appears that the fum of 9,039,9361. iis. was lent to feveral perfons on the fecurity of 2,563,1171. 17 s. 5 d. ftock: And that the further fum of 2,219,089 1. was lent on the fecurity of 773,6001. fubfcription receipts; the money fo lent, and ftill remaining due, amounting in the whole to the fum of 11,259,025 1. 11 s.

That by feveral refolutions of the court of directors of the 21ft of April, the 20th of May, and the 9th of June laft, for three feveral loans, it appears, that the fum, refolved by them to be lent on stock from the 21ft of April to the 21st of May, was limited to 500,000 l. in the whole, and that not more than 5000 l. fhould be lent to any one perfon; and fuch loan to be only at the rate of 250 1. on 1001. ftock; that, from the 20th of May to the 9th of June, the rule of lending was at the rate of 300 l. on 100l. ftock; and that not more than 3000l. fhould be lent to any one perfon; and, from the 9th of June, the rule of lending was at 400 1. on 1001. ftock, and that not more than 4000l. fhould be lent to any one perfon.

That, on examination of the book of loans, it appears, that on the first loan the rules of lending were greatly exceeded, viz. That there was lent in the whole 943,631 1. more than the

payment

fum of 500,000l. to which the faid loan was confined. That the excefs above 2501. on 100l. ftock amounts to 316,740l. and the excefs above 5000l. to one perfon amounts in the whole to 7793231 1. That on the fer cond loan the excess above the rate of 300l. on 100l. ftock amounts to 30,7501. and the excefs above 3000l. to one perfon amounts in the whole to 169,025 1. And that on the third loan the excess above 4001. on 100l. ftock amounts to 59,413 1. and the excess above the rate of 4000 1. to one perfon amounts in the whole to 1,447,6771. For the particulars of all which your committee refer to the book marked No. IV, in which the same are diftinctly expreffed, and the refolutions of the general court, and court of directors, in relation to loans, are transcribed.

That your committee do not find any refolution, either of a general court, or a court of directors, for lending money on fubfcription-receipts; but, by the examinations which they have taken, it appears, That Mr. Knight, the late cashier of the South-Sea company, and his under-cafhier and clerks, by his directions, did lend money on the fubfcription receipts, by verbal orders from the directors of the faid company, and under colour of an order of a general court, made the 21ft of April 1720, to impower the court of directors from time to time, as they fhail fee for the ec s intereft