🕷️ Crawler Inspector

URL Lookup

Direct Parameter Lookup

Raw Queries and Responses

1. Shard Calculation

Query:

Response:

Calculated Shard: 152 (from laksa108)

2. Crawled Status Check

Query:

curl -X POST \
  'http://laksa152.int.ahrefs:8124/' \
  -H 'Content-Type: text/plain' \
  -H 'X-ClickHouse-Database: crawler3' \
  -H 'Authorization: Basic YXBpOg==' \
  -d 'SELECT getAhrefsURLFromUnparsed(src_unparsed) AS found_url, ifNull(toUnixTimestamp(download_stamp), 0) AS crawl_time, ifNull(toUnixTimestamp(props_url_first_seen), 0) AS first_indexed_time, download_http_code AS http_code, src_unparsed AS src_unparsed, src_root_hash AS src_root_hash, history_drop_reason AS history_drop_reason, meta_title AS meta_title, meta_descriptions AS meta_descriptions, attrs_boilerpipe_text AS attrs_boilerpipe_text, attrs_markdown AS attrs_markdown, attrs_readable_markdown AS attrs_readable_markdown, meta_canonical AS meta_canonical FROM crawler3.page_info_local FINAL PREWHERE (src_root_hash, src_unparsed) IN ((getAhrefsRootHashFromUnparsed(getAhrefsUnparsedNoserviceFromURL(\'https://en.wikipedia.org/wiki/South_Sea_Company\')), getAhrefsUnparsedNoserviceFromURL(\'https://en.wikipedia.org/wiki/South_Sea_Company\'))) FORMAT JSONEachRow'

Response:

{"found_url":"https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company","crawl_time":1775943688,"first_indexed_time":1378558511,"http_code":200,"src_unparsed":"org,wikipedia!en,\/wiki\/South_Sea_Company s443","src_root_hash":"17790707453426894952","history_drop_reason":null,"meta_title":"South Sea Company - Wikipedia","meta_descriptions":[],"attrs_boilerpipe_text":"South Sea Company\nArms of the South Sea Company:\nAzure, a globe whereon are represented the\nStraits of Magellan\nand\nCape Horn\nall\nproper\nand in\nsinister\nchief point two herrings haurient in saltire argent crowned or, in a\ncanton\nthe\nunited arms of Great Britain\nCompany type\nPublic\nIndustry\nSlave trade\n,\nspeculation\n,\nwhaling\nFounded\nJanuary 1711\n; 315 years ago\nDefunct\n1853\n; 173 years ago\nHeadquarters\nLondon\n,\nGreat Britain\n1754 engraving of Old South Sea House, the headquarters of the South Sea Company, which burned down in 1826,\n[\n1\n]\non the corner of\nBishopsgate Street\nand\nThreadneedle Street\nin the\nCity of London\nThe\nDividend\nHall of South Sea House, 1810\nHeraldic grouping above main entrance to the surviving South Sea House, Threadneedle Street, rebuilt after the fire of 1826\nAn early trade label of the South Sea Company, for export of finest English\nserge\ncloth. The letters circumscribing the seal below should read \"SS&FC\", for \"South Sea and Fishery Company\"\n[\n2\n]\n1723 pro-forma power of attorney signed by a shareholder of the South Sea Company showing the company's coat of arms and the Latin motto\nA Gadibus usque Auroram\n(\"From\nCádiz\nto Dawn\",\nJuvenal\n,\nSatires\n, 10)\nThe South Sea Bubble\nby\nEdward Matthew Ward\n, 1847. A\nHogarthian\nimage of the 1720 \"South Sea Bubble\" now in the\nTate Britain\nThe\nSouth Sea Company\n(officially: either\nThe Governor and Company of the merchants of Great Britain, trading to the South Seas and other parts of America and for the encouragement of the Fishery\nor\nthe Governor and Company of merchants of Great Britain, trading to the South-Seas, and other parts of America, and for encouraging the Fishery\n)\n[\na\n]\n[\n3\n]\nwas a British\njoint-stock company\nfounded in January 1711, created as a\npublic-private partnership\nto\nconsolidate\nand reduce the cost of the\nnational debt\n. To generate income, in 1713 the company was granted a monopoly (the\nAsiento de Negros\n) to supply African slaves to the islands in the \"\nSouth Seas\n\" and\nSouth America\n.\n[\n4\n]\nWhen the company was created, Britain was involved in the\nWar of the Spanish Succession\nand Spain and Portugal controlled most of South America. There was thus no realistic prospect that trade would take place, and as it turned out, the Company never realised any significant profit from its monopoly. However, Company stock rose greatly in value as it expanded its operations dealing in government debt, and peaked in 1720 before suddenly collapsing to little above its original\nflotation\nprice. The notorious\neconomic bubble\nthus created, which ruined thousands of investors, became known as the\nSouth Sea Bubble\n.\nThe\nBubble Act 1720\n(\n6 Geo. 1\nc. 18), which forbade the creation of joint-stock companies without\nroyal charter\n, was promoted by the South Sea Company itself before its collapse.\nIn Great Britain, many investors were ruined by the share-price collapse, and as a result, the national economy diminished substantially. The founders of the scheme engaged in\ninsider trading\n, by using their advance knowledge of the timings of national debt consolidations to make large profits from purchasing debt in advance. Huge bribes were given to politicians to support the\nacts of Parliament\nnecessary for the scheme.\n[\n5\n]\nCompany money was used to deal in its own shares, and selected individuals purchasing shares were given cash loans backed by those same shares to spend on purchasing more shares. The expectation of profits from trade with South America was talked up to encourage the public to purchase shares, but the bubble prices reached far beyond what the actual profits of the business (namely the slave trade) could justify.\n[\n6\n]\nA parliamentary inquiry was held after the bursting of the bubble to discover its causes. A number of politicians were disgraced, and people found to have profited unlawfully from the company had personal assets confiscated proportionate to their gains (most had already been rich and remained so). Finally, the Company was restructured and continued to operate for more than a century after the Bubble. The headquarters were in\nThreadneedle Street\n, at the centre of the\nCity of London\n, the financial district of the capital. At the time of these events, the\nBank of England\nwas also a private company dealing in national debt, and the crash of its rival confirmed its position as banker to the British government.\n[\n7\n]\nWhen in August 1710\nRobert Harley\nwas appointed\nChancellor of the Exchequer\n, the government had already become reliant on the\nBank of England\n, a privately owned company chartered 16 years previously, which had obtained a monopoly as the lender to the government. The government had become dissatisfied with the service it was receiving and Harley was actively seeking new ways to improve the national finances.\nA new parliament met in November 1710 resolved to attend to the national finances, which were suffering from the pressures of\ntwo simultaneous wars\n: the\nWar of the Spanish Succession\nwith France, which ended in 1713, and the\nGreat Northern War\n, which was not to end until 1721. Harley came prepared, with detailed accounts describing the situation of the national debt, which was customarily a piecemeal arrangement, with each government department borrowing independently as the need arose. He released the information steadily, continually adding new reports of debts incurred and scandalous expenditure, until in January 1711 the House of Commons agreed to appoint a committee to investigate the entire debt. The committee included Harley himself, the two\nAuditors of the Imprests\n(whose task was to investigate government spending),\nEdward Harley\n(the Chancellor's brother), Paul Foley (the Chancellor's brother-in-law), the\nSecretary of the Treasury\n,\nWilliam Lowndes\n(who had had significant responsibility for reminting the entire debased British coinage in 1696) and\nJohn Aislabie\n(who represented the\nOctober Club\n, a group of about 200 MPs who had agreed to vote together).\n[\n8\n]\nHarley's first concern was to find £300,000 for the next quarter's payroll for the British army operating on the Continent under the\nDuke of Marlborough\n. This funding was provided by a private consortium of Edward Gibbon (grandfather of\nthe historian\n),\nGeorge Caswall\n, and\nHoare's Bank\n. The Bank of England had been operating a\nlottery\non behalf of the government, but in 1710 this had produced less revenue than expected and another begun in 1711 was also performing poorly; Harley granted the authority to sell tickets to\nJohn Blunt\n, a director of the\nHollow Sword Blade Company\n, which despite its name was an unofficial bank. Sales commenced on 3 March 1711 and tickets had completely sold out by 7 March, making it the first truly successful English state lottery.\n[\n9\n]\nThe success was shortly followed by another larger lottery, \"The Two Million Adventure\" or \"The Classis\", with tickets costing £100, with a top prize of £20,000 and every ticket winning a prize of at least £10. Although prizes were advertised by their total value, they were in fact paid out by instalments in the form of a fixed\nannuity\nover a period of years, so that the government effectively held the prize money as borrowings until the whole value had been paid out to the winners. Marketing was handled by members of the Sword Blade syndicate, Gibbon selling £200,000 of tickets and earning £4,500 commission, and Blunt selling £993,000. Charles Blunt (a relative) was made Paymaster of the lottery with expenses of £5,000.\nConception of the company\n[\nedit\n]\nThe national debt investigation concluded that a total of £9 million was owed by the government, with no specifically allocated income to pay it off. Robert Harley and John Blunt had jointly devised a scheme to consolidate this debt in much the same way that the Bank of England had consolidated previous debts, although the Bank still held the monopoly for operating as a bank. All holders of the debt (creditors) would be required to surrender it to a new company formed for the purpose, the South Sea Company, which in return would issue them shares in itself to the same nominal value. The government would make an annual payment to the Company of £568,279, equating to 6% interest plus expenses, which would then be redistributed to the shareholders as a dividend. The company was also granted a monopoly to trade with South America, a potentially lucrative enterprise, but one controlled by Spain – with which Britain was at war.\n[\n10\n]\nAt that time, when the continent of America was being explored and colonised, Europeans applied the term \"South Seas\" only to South America and surrounding waters. The concession both held out the potential for future profits and encouraged a desire for an end to the war, necessary if any profits were to be made. The original suggestion for the South Sea scheme came from\nWilliam Paterson\n, one of the founders of the Bank of England and of the financially disastrous\nDarien Scheme\n.\n[\n10\n]\nHarley was rewarded for delivering the scheme by being created Earl of Oxford on 23 May 1711 and was promoted to\nLord High Treasurer\n. With a more secure position, he began secret peace negotiations with France.\nInitial speculation\n[\nedit\n]\nThe scheme to thus consolidate all government debt and to manage it better in the future held out the prospect of all existing creditors being repaid the full nominal value of their loans, which at the time before the scheme was publicised were valued at a discounted rate of £55 per £100 nominal value, as the lotteries were discredited. The government's ability to repay in full was widely doubted. Thus bonds representing the debt intended to be consolidated under the scheme were available for purchase on the open market at a price that allowed anyone with advance knowledge to buy and resell in the immediate future at a high profit, for as soon as the scheme became publicised the bonds would once again be worth at least their nominal value, as repayment was now more certain a prospect. This anticipation of gain made it possible for Harley to bring further financial supporters into the scheme, such as James Bateman and\nTheodore Janssen\n.\n[\n11\n]\nDaniel Defoe\ncommented:\n[\n12\n]\nUnless the Spaniards are to be divested of common sense, infatuate, and given up, abandoning their own commerce, throwing away the only valuable stake they have left in the world, and in short, bent on their own ruin, we cannot suggest that they will ever, on any consideration, or for any equivalent, part with so valuable, indeed so inestimable a jewel, as the exclusive trade to their own plantations.\n— \nAn Essay on the South-Sea Trade\nThe originators of the scheme knew that there was no money to invest in a trading venture, and no realistic expectation that there would ever be a trade to exploit, but nevertheless, the potential for great wealth was widely publicised at every opportunity, so as to encourage interest in the scheme. The founders' objective was to create a company that would enable them to become wealthy and offer opportunities for further government contracts.\n[\n13\n]\nA bubble-era stock promoter, caricatured as a \"\nnight wind hawker\n\" (\nThe Great Picture of Folly\n, 1720)\nThe\nroyal charter\nfor the company, based on that of the Bank of England, was drawn up by Blunt who was paid £3,846 for his services in setting up the company. Directors would be elected every three years and shareholders would meet twice a year. The company employed a cashier, secretary and accountant. The governor was intended as an honorary position, and was later customarily held by the monarch. The charter allowed the full court of directors to nominate a smaller committee to act on any matter on its behalf. Directors of the Bank of England and of the\nEast India Company\nwere barred from being directors of the South Sea Company. Any ship of more than 500 tons owned by the company was to have a Church of England clergyman on board.\nThe surrender of government debt for company stock was to occur in five lots. The first two of these, totalling £2.75 million from about 200 large investors, had already been arranged before the company's charter was issued on 10 September 1711. The government surrendered £0.75 million of its debt held by different departments (at that time individual office holders were at liberty to invest government funds under their control to their own advantage before it was required for government expenditure). Harley surrendered £8,000 of debt and was appointed Governor of the new company. Blunt, Caswall and Sawbridge together surrendered £65,000, Janssen £25,000 of his own plus £250,000 from a foreign consortium, Decker £49,000, Sir Ambrose Crawley £36,791. The company had a Sub-Governor, Bateman; a Deputy Governor, Ongley; and 30 ordinary directors. Nine of the directors were politicians, five were members of the Sword Blade consortium, and seven more were financial magnates who had been attracted to the scheme.\n[\n14\n]\nThe company created a coat of arms with the motto\nA Gadibus usque ad Auroram\n(\"From Cádiz to Dawn\", from\nJuvenal\n,\nSatires\n, 10) and rented a large house in the City of London as its headquarters. Seven sub-committees were created to handle its everyday business, the most important being the \"committee for the affairs of the company\". The Sword Blade company was retained as the company's banker and on the strength of its new government connections issued notes in its own right, notwithstanding the Bank of England's monopoly. The task of the Company Secretary was to oversee trading activities; the Accountant, Grigsby, was responsible for registering and issuing stock; and the Cashier, Robert Knight, acted as Blunt's personal assistant at a salary of £200 per annum.\n[\n15\n]\nAfrican slaves taken aboard a slave ship\nThe\nTreaty of Utrecht\nof 1713 granted Britain an\nAsiento de Negros\nlasting 30 years to supply the Spanish colonies with 4,800 enslaved Africans (\"slaves\") per year. Britain was permitted to open offices in\nBuenos Aires\n,\nCaracas\n,\nCartagena\n,\nHavana\n,\nPanama\n,\nPortobello\nand\nVeracruz\nto arrange the\nAtlantic slave trade\n. One ship of no more than 500 tons could be sent to one of these places each year (the\nNavío de Permiso\n) with general trade goods. One quarter of the profits were to be reserved for the King of Spain. There was provision for two extra sailings at the start of the contract. The Asiento was granted in the name of\nQueen Anne\nand then contracted to the company.\n[\n16\n]\nBy July the company had arranged contracts with the\nRoyal African Company\nto supply the African slaves to Jamaica. Ten pounds was paid for a slave aged over 16, £8 for one under 16 but over 10. Two-thirds were to be male, and 90 per cent adult. The company transported 1,230 slaves from Jamaica to America in the first year, plus any that might have been added (against standing instructions) by the ship's captains on their own behalf. On arrival of the first cargoes, the local authorities refused to accept the Asiento, which had still not been officially confirmed there by the Spanish authorities. The slaves were eventually sold at a loss in the West Indies.\n[\n17\n]\nIn 1714 the government announced that a quarter of profits would be reserved for\nQueen Anne\nand a further 7.5 per cent for a financial adviser, Manasseh Gilligan. Some company board members refused to accept the contract on these terms, and the government was obliged to reverse its decision.\n[\n18\n]\nDespite these setbacks, the company continued, having raised £200,000 to finance the operations. In 1714 2,680 slaves were carried, and for 1716–1717, 13,000 more, but the trade continued to be unprofitable. An import duty of 33\npieces of eight\nwas charged on each slave (although for this purpose some slaves might be counted only as a fraction of a slave, depending on quality). One of the extra trade ships was sent to Cartagena in 1714 carrying woollen goods, despite warnings that there was no market for them there, and they remained unsold for two years.\n[\n19\n]\nIt has been estimated that the company transported a little over 34,000 slaves with mortality comparable to its competitors, showing that slave trading was a significant part of the company's business and that it was carried out to the standards of the day.\n[\n4\n]\nIts trading activities offered a financial motive for investment in the company.\n[\n4\n]\nChanges of management\n[\nedit\n]\nThe company was dependent on the goodwill of the government; when the government changed, so too did the company board. In 1714 one of the directors who had been sponsored by Harley, Arthur Moore, had attempted to send 60 tons of private goods on board the company ship. He was dismissed as a director, but the result was the beginning of Harley's fall from favour with the company. On 27 July 1714, Harley was replaced as Lord High Treasurer as a result of a disagreement that had broken out within the Tory faction in Parliament. Queen Anne died on 1 August 1714 and at the election of directors in 1715 the Prince of Wales (the future King\nGeorge II\n) was elected as governor of the company. The new King\nGeorge I\nand the Prince of Wales both had large holdings in the company, as did some prominent Whig politicians, including\nJames Craggs the Elder\n, the\nEarl of Halifax\nand Sir\nJoseph Jekyll\n. Craggs, as Postmaster General, was responsible for intercepting mail on behalf of the government to obtain political and financial information. All Tory politicians were removed from the board and replaced with businessmen. The Whigs Horatio Townshend, brother in law of\nRobert Walpole\nand the\nDuke of Argyll\nwere elected directors.\nThe change of government led to a revival of the company's share value, which had fallen below its issue price. The previous government had failed to make the interest payments to the company for the preceding two years, owing more than £1 million. The new administration insisted that the debt be written off, but allowed the company to issue new shares to stock holders to the value of the missed payments. At around £10 million, this now represented half the share capital issued in the entire country. In 1714 the company had 2,000 to 3,000 shareholders, more than either of its rivals.\n[\n20\n]\nBy the time of the next directors' elections in 1718 a schism within the Whigs between Walpole's faction supporting the Prince of Wales and\nJames Stanhope\n's supporting the King. Argyll and Townshend were dismissed as directors, as were the surviving Tories Sir Richard Hoare and George Pitt, and King George I became governor. Four MPs remained directors, as did six people holding government financial offices. The Sword Blade Company remained bankers to the South Sea and had flourished despite the company's dubious legal position. Blunt and Sawbridge remained South Sea directors, and they had been joined by Gibbon and Child. Caswall had retired as a South Sea director to concentrate on the Sword Blade business. In November 1718 Sub-Governor Bateman and Deputy Governor Shepheard both died. Leaving aside the honorary position of Governor, this left the company suddenly without its two most senior and experienced directors. They were replaced by\nSir John Fellowes\nas Sub-Governor and Charles Joye as Deputy.\n[\n21\n]\nIn 1718 war broke out with Spain once again, in the\nWar of the Quadruple Alliance\n. The company's assets in South America were seized, at a cost claimed by the company to be £300,000. Any prospect of profit from trade, for which the company had purchased ships and had been planning its next ventures, disappeared.\n[\n22\n]\nRefinancing government debt\n[\nedit\n]\nEvents in France now came to influence the future of the company. A Scottish economist and financier,\nJohn Law\n, exiled after killing a man in a duel, had travelled around Europe before settling in France. There he founded a bank, which in December 1718 became the Banque Royale, national bank of France, while Law himself was granted sweeping powers to control the economy of France, which operated largely by royal decree. Law's remarkable success was known in financial circles throughout Europe, and came to inspire Blunt and his associates to make greater efforts to grow their own concerns.\n[\n23\n]\nIn February 1719 Craggs explained to the House of Commons a new scheme for improving the national debt by converting the annuities issued after the 1710 lottery into South Sea stock. By an act of Parliament, the\nNational Debt Act 1719\n(\n6 Geo. 1\n. c. 4), the company was granted the right to issue £1,150 of new stock for every £100 per annum of annuity which was surrendered. The government would pay 5 per cent per annum on the stock created, which would halve their annual bill. The conversion was voluntary, amounting to £2.5 million new stock if all converted. The company was to make an additional new loan to the government pro rata up to £750,000, again at 5 per cent.\n[\n24\n]\nIn March there was an abortive attempt to restore the Old Pretender,\nJames Edward Stuart\n, to the throne of Britain, with a small landing of troops in Scotland. They were defeated at the\nBattle of Glen Shiel\non 10 June. The South Sea company presented the offer to the public in July 1719. The Sword Blade company spread a rumour that the Pretender had been captured, and the general euphoria induced the South Sea share price to rise from £100, where it had been in the spring, to £114. Annuitants were still paid out at the same money value of shares, the company keeping the profit from the rise in value before issuing. About two-thirds of the annuities were exchanged.\nTrading more debt for equity\n[\nedit\n]\nWilliam Hogarth\n,\nEmblematical Print on the South Sea Scheme\n(1721). In the bottom left corner are Protestant, Catholic, and Jewish figures gambling, while in the middle there is a huge machine, like a merry-go-round, which people are boarding. At the top is a goat, written below which is \"Who'l Ride\". The people are scattered around the picture with a sense of disorder, while the progress of the well-dressed people towards the ride in the middle represents the foolishness of the crowd in buying stock in the South Sea Company, which spent more time issuing stock than anything else. Honor at left is dismembered; Honesty in center is\nbroken on the wheel\nand at lower right trade lies dead.\nThe 1719 scheme was a distinct success for the government and they sought to repeat it. Negotiations took place between Aislabie and Craggs for the government and Blunt, Cashier Knight and his assistant and Caswell. Janssen, the Sub Governor and Deputy Governor were also consulted but negotiations remained secret from most of the company. News from France was of fortunes being made investing in Law's bank, whose shares had risen sharply. Money was moving around Europe, and other flotations threatened to soak up capital (two insurance schemes in December 1719 each sought to raise £3 million).\n[\n25\n]\nPlans were made for a new scheme to take over most of the unconsolidated national debt of Britain (£30,981,712) in exchange for company shares. Annuities were valued as a lump sum necessary to produce the annual income over the original term at an assumed interest of 5 per cent, which favoured those with shorter terms still to run. The government agreed to pay the same amount to the company for all the fixed-term repayable debt as it had been paying before, but after seven years the 5 per cent interest rate would fall to 4 per cent on the new annuity debt and also that assumed previously. After the first year, the company was to give the government £3 million in four quarterly instalments. New stock would be created at a face value equal to the debt, but the share price was still rising and sales of the remaining stock, i.e. the excess of the total market value of the stock over the amount of the debt, would be used to raise the government fee plus a profit for the company. The more the price rose in advance of conversion, the more the company would make. Before the scheme, payments were costing the government £1.5 million per year.\n[\n26\n]\nIn summary, the total government debt in 1719 was £50 million:\n£18.3m was held by three large corporations:\n£3.4m by the\nBank of England\n£3.2m by the\nBritish East India Company\n£11.7m by the South Sea Company\nPrivately held redeemable debt amounted to £16.5m\n£15m consisted of irredeemable annuities, long-fixed-term annuities of 72–87 years, and short annuities of 22 years remaining to expiry.\nThe purpose of this conversion was similar to the old one, debt holders and annuitants might receive less return in total, but an illiquid investment was transformed into shares that could be readily traded. Shares backed by national debt were considered a safe investment and a convenient way to hold and move money, far easier and safer than metal coins. The only alternative safe asset, land, was much harder to sell and transfer of its ownership was legally much more complex.\nThe government received a cash payment and lower interest on the debt and gained control over when the debt had to be repaid, which was not before seven years but then at its discretion. This avoided the risk that debt might become repayable when the government needed to borrow more, and could be forced into paying higher interest rates. The payment to the government was to be used to buy any debt not subscribed to the scheme, which although it helped the government, also helped the company by removing possibly competing securities from the market, including large holdings by the Bank of England.\n[\n26\n]\nCompany stock was now trading at £123, so the issue amounted to an injection of £5 million of new money into a booming economy just as interest rates were falling.\nGross Domestic Product\n(GDP) for Britain at this point was estimated as £64.4 million.\n[\n27\n]\nPublic announcement\n[\nedit\n]\nSouth Sea Annuities share certificate, issued 13 November 1784. On display at the British Museum in London\nOn 21 January the plan was presented to the board of the South Sea Company, and on 22 January\nChancellor of the Exchequer\nJohn Aislabie\npresented it to Parliament. The House was stunned into silence but on recovering, proposed that the Bank of England should be invited to make a better offer. The South Sea increased its cash payment to £3.5 million, while the Bank proposed to undertake the conversion with a payment of £5.5 million and a fixed conversion price of £170 per £100 face-value Bank stock. On 1 February, the company negotiators led by Blunt raised their offer to £4 million plus a proportion of £3.5 million depending on how much of the debt was converted. They also agreed that the interest rate would decrease after four years instead of seven, and agreed to sell on behalf of the government £1 million of Exchequer bills (formerly handled by the Bank). The House accepted the South Sea offer and Bank stock fell sharply.\n[\n28\n]\nPerhaps the first sign of difficulty came when the South Sea Company announced that its Christmas 1719 dividend would be deferred for 12 months. The company embarked on a show of gratitude to its friends. Select individuals were sold a parcel of company stock at the current price. The transactions were recorded by Knight in the names of intermediaries, but no payments were received and no stock issued – the company had none to issue until the conversion of debt began. The individual received an option to sell his stock back to the company at any date at whatever market price might then apply. Shares went to the Craggs:\nthe Elder\nand\nthe Younger\n;\nLord Gower\n;\nLord Lansdowne\n; and four other MPs.\nLord Sunderland\nwould gain £500 for every pound that stock rose; George I's mistress, their children and Countess Platen £120 per pound rise, Aislabie £200 per pound,\nLord Stanhope\n£600 per pound. Others invested money, including the\nRichard Hampden\nthe Treasurer to the Navy, who invested £25,000 of government money on his behalf.\n[\n29\n]\nThe proposal was accepted in a slightly altered form in April 1720. Crucial in this conversion was the proportion of holders of irredeemable annuities who could be tempted to convert their securities at a high price for the new shares. (Holders of redeemable debt had no other choice but to subscribe.) The South Sea Company could set the conversion price but could not diverge much from the market price of its shares. The company ultimately acquired 85 per cent of the redeemables and 80 per cent of the irredeemables.\nChart of company stock prices.\nThe company then set to talking up its stock with \"the most extravagant rumours\" of the value of its potential trade in the New World; this was followed by a wave of \"speculating frenzy\". The share price had risen from the time the scheme was proposed, from £128 in January 1720, to £175 in February, £330 in March and following the scheme's acceptance £550 at the end of May.\n[\n30\n]\nWhat may have supported the company's high multiples (its\nP\/E ratio\n) was a fund of credit (known to the market) of £70 million available for commercial expansion which had been made available through substantial support, apparently, by Parliament and the King.\n[\n31\n]\nShares in the company were \"sold\" to politicians at the market price; rather than paying for the shares, these recipients simply held the shares, with the option of selling them back to the company at any time, receiving the increase in market price. This method, as well as winning over the heads of government, the King's mistress,\net al.\n, had the advantage of binding their interests to the interests of the company, to secure profits, the stock needed to rise. By publicising the names of their elite stockholders, the company managed to clothe itself in an aura of legitimacy, which attracted and kept other buyers.\n[\n32\n]\nThe South Sea Company was by no means the only company seeking to raise money from investors in 1720. A large number of other joint-stock companies, making extravagant (sometimes fraudulent) claims about foreign or other ventures or bizarre schemes, had been created. Others represented potentially sound, although novel, schemes, such as for founding insurance companies. These were nicknamed \"Bubbles\". Some of the companies had no legal basis, while others (such as the\nHollow Sword Blade Company\n, which acted as the South Sea Company's banker), used existing chartered companies for purposes different from those named at their creation. The York Buildings Company was set up to provide water to London, but was purchased by Case Billingsley who used it to purchase confiscated Jacobite estates in Scotland, which then formed the assets of an insurance company.\n[\n33\n]\nOn 22 February 1720, John Hungerford raised the question of bubble companies in the House of Commons, and persuaded the House to set up a committee, which he chaired, to investigate. He identified a number of companies which between them sought to raise £40 million in capital. The committee investigated the companies, establishing a principle that companies should not be operating outside the objects specified in their charters. A potential embarrassment for the South Sea was avoided when the question of the Hollow Sword Blade Company arose. Difficulty was avoided by packing the committee with MPs who were supporters of the South Sea, and voting down by 75 to 25 the proposal to investigate the Hollow Sword. (At this time, committees of the House were either 'Open' or 'secret'. A secret committee was one with a fixed set of members who could vote on its proceedings. By contrast, any MP could join in with an 'open' committee and vote on its proceedings.) Stanhope, who was a member of the committee, received £50,000 of the 'resaleable' South Sea stock from Sawbridge, a director of the Hollow Sword, at about this time. Hungerford had previously been expelled from the Commons for accepting a bribe.\n[\n33\n]\nAmongst the bubble companies investigated were two supported by Lords Onslow and Chetwynd respectively, for insuring shipping. These were severely criticised and the questionable dealings of the Attorney-General and Solicitor-General in trying to obtain charters for the companies led to both being replaced. The schemes had the support of\nWalpole\nand\nCraggs\n, so that the larger part of the\nBubble Act 1720\n(\n6 Geo. 1\n. c. 18) (which resulted in June 1720 from the committee's investigations) was devoted to creating charters for the\nRoyal Exchange Assurance Corporation\nor London Assurance Corporation. The companies were required to pay £300,000 for the privilege. The act required that a joint stock company could be incorporated only by act of Parliament or\nroyal charter\n. The prohibition on unauthorised joint stock ventures was not repealed until 1825.\n[\n34\n]\nThe passing of the act gave a boost to the South Sea Company, its shares leaping to £890 in early June. This peak encouraged people to sell; to counterbalance this the company's directors ordered their agents to buy, which succeeded in propping the price up at around £750.\nTree caricature from Bubble Cards.\nThe price of the stock went up over the course of a year from about £100 to almost £1,000 per share. Its success caused a national frenzy—\nherd behaviour\n[\n6\n]\n—as all types of people, from peasants to lords, developed a feverish interest in investing, in South Seas primarily but in stocks generally. One famous apocryphal story is of a company that went public in 1720 as \"a company for carrying out an undertaking of great advantage, but nobody to know what it is\".\n[\n35\n]\nThe price finally reached £1,000 in early August 1720, and the level of selling was such that the price started to fall, dropping back to £100 per share before the year was out.\n[\n36\n]\nThis triggered\nbankruptcies\namongst those who had bought on credit, and increased sales, including\nshort selling\n[\ncitation needed\n]\n(i.e., selling borrowed shares in the hope of buying them back at a profit if the price fell). In August 1720, the first of the instalment payments of the first and second money subscriptions on new issues of South Sea stock were due. Earlier in the year John Blunt had come up with an idea to prop up the share price, the company would lend people money to buy its shares. As a result, many shareholders could not pay for their shares except by selling them.\n[\ncitation needed\n]\nA scramble for liquidity appeared internationally as \"bubbles\" were also ending in Amsterdam and Paris. The collapse coincided with the fall of the\nMississippi Company\nof\nJohn Law\nin France and the price of South Sea shares began to decline.\n[\ncitation needed\n]\nBy the end of September the stock had fallen to £150. Company failures now extended to\nbanks\nand\ngoldsmiths\n, as they could not collect loans made on the stock, and thousands of individuals were ruined, including many members of the upper class. With investors outraged,\nParliament\nwas recalled in December and an investigation began. Reporting in 1721, it revealed widespread\nfraud\namongst the company directors and corruption in the Cabinet. Among those implicated were\nJohn Aislabie\n(the Chancellor of the Exchequer), James Craggs the Elder (the\nPostmaster General\n),\nJames Craggs the Younger\n(the\nSouthern Secretary\n), and even\nLord Stanhope\nand\nLord Sunderland\n(the heads of the Ministry). Craggs the Elder and Craggs the Younger died in disgrace; the remainder were\nimpeached\nfor their corruption. The Commons found Aislabie guilty of the \"most notorious, dangerous and infamous corruption\" and he was imprisoned.\n[\ncitation needed\n]\nThe corruption around the South Sea bubble was the impetus for the writing and publication of\nCato's Letters\nwhich became an important work first for the\nRadical Whigs\nand then into the\nlibertarian\nideology of the\nAmerican Revolution\n.\n[\n37\n]\nThe new\nFirst Lord of the Treasury\n,\nRobert Walpole\n, restored public confidence in the financial system. Public opinion, as shaped by the many prominent men who lost money, demanded revenge. Walpole supervised the process, which removed all 33 of the company directors and stripped them of, on average, 82 per cent of their wealth. The money went to the victims and the stock of the South Sea Company was divided between the Bank of England and the East India Company. Walpole made sure that King George and his mistresses were protected, and by a margin of three votes he managed to save several key government officials from impeachment. In the process, Walpole won plaudits as the saviour of the financial system while establishing himself as the dominant figure in British politics; historians credit him for rescuing the Whig government and the Hanoverian dynasty from disgrace.\n[\n38\n]\n[\n39\n]\n[\n40\n]\nQuotations prompted by the collapse\n[\nedit\n]\nJoseph Spence wrote that\nLord Radnor\nreported to him \"When Sir\nIsaac Newton\nwas asked about the continuance of the rising of South Sea stock ... He answered 'that he could not calculate the madness of people'\".\n[\n41\n]\nHe is also quoted, \"I can calculate the movement of the stars, but not the madness of men\".\n[\n42\n]\nNewton owned nearly £22,000 in South Sea stock in 1722, but it is not known how much he lost, if anything.\n[\n43\n]\nThere are numerous sources stating he lost up to £20,000\n[\n44\n]\n(equivalent to £4.21 million in 2025).\n[\n45\n]\nThe South Sea Company was created in 1711 to reduce the size of public debts, but was granted the commercial privilege of exclusive rights of trade to the Spanish Indies, based on the treaty of commerce signed by Britain and the\nArchduke Charles\n, candidate to the Spanish throne during the\nWar of the Spanish Succession\n. After\nPhilip V\nbecame the King of Spain, Britain obtained at the 1713\nTreaty of Utrecht\nthe rights to the slave trade to the Spanish Indies (or\nAsiento de Negros\n) for 30 years. Those rights were previously held by the Compagnie de Guinée et de l'Assiente du Royaume de la France.\nThe South Sea Company board opposed taking on the slave trade, which had shown little profitability when chartered companies had engaged in it. To increase the profitability, the Asiento contract included the right to send one yearly 500-ton ship to the fairs at Portobello and\nVeracruz\nloaded with duty-free merchandises, called the\nNavío de Permiso\n. The Crown of England and the King of Spain were each entitled to 25% of the profits, according to the terms of the contract, that was a copy of the French Asiento contract, but\nQueen Anne\nsoon renounced her share. The King of Spain did not receive any payments due to him, and this was one of the sources of contention between the Spanish Crown and the South Sea Company.\nAs was the case for previous holders of the Asiento, the Portuguese and the French, the profit was not in the slave trade but in the illegal contraband goods smuggled in the slave ships and in the annual ship. Those goods were sold at the Spanish colonies at a handsome price, for they were in high demand; and constituted unfair competition with taxed goods, proving a large drain on the Spanish Crown's trade income. The relationship between the South Sea Company and the Government of Spain was always bad, and worsened with time. The company complained of searches and seizures of goods, lack of profitability, and confiscation of properties during the wars between Britain and Spain of 1718–1723 and 1727–1729, during which the operations of the company were suspended. The Government of Spain complained of the illegal trade, failure of the company to present its accounts as stipulated by the contract, and non-payment of the King's share of the profits. These claims were a major cause of deteriorating relations between the two countries in 1738; and although the Prime Minister\nWalpole\nopposed war, there was strong support for it from the King, the House of Commons, and a faction in his own Cabinet. Walpole was able to negotiate a treaty with the King of Spain at the\nConvention of Pardo\nin January 1739 that stipulated that Spain would pay British merchants £95,000 in compensation for captures and seized goods, while the South Sea Company would pay the Spanish Crown £68,000 in due proceeds from the Asiento. The South Sea Company refused to pay those proceeds and the King of Spain retained payment of the compensation until payment from the South Sea Company could be secured. The break-up of relations between the South Sea Company and the Spanish Government was a prelude to the\nGuerra del Asiento\n, as the first\nRoyal Navy\nfleets departed in July 1739 for the Caribbean, prior to the declaration of war, which lasted from October 1739 until 1748. This war is known as the\nWar of Jenkins' Ear\n.\n[\n46\n]\n[\n47\n]\n[\n48\n]\nSlave trade under the Asiento\n[\nedit\n]\nCover of the English translation of the Asiento contract signed by Britain and Spain in 1713 as part of the Utrecht treaty that ended the War of Spanish Succession. The contract granted exclusive rights to Britain to sell slaves in the Spanish Indies.\nUnder the\nTreaty of Tordesillas\n, Spain was the only European power that could not establish factories in Africa to purchase slaves. The slaves for Spanish America were provided by companies that were granted exclusive rights to their trade. This monopoly contract was called the slave Asiento. Between 1701 and 1713 the Asiento contract was granted to France. In 1711 Britain had created the South Sea Company to reduce debt and to trade with Spanish America, but that commerce was illegal without a permit from Spain, and the only existing permit was the Asiento for the slave trade, so at the\nTreaty of Utrecht\nin 1713 Britain obtained the transfer of the Asiento contract from French to British hands for the next 30 years.\nThe board of directors was reluctant to take on the slave trade, which was not an object of the company and had shown little profitability when carried out by chartered companies, but they finally agreed on 26 March 1714. The Asiento set a sale quota of 4,800 units of slaves per year. An adult male slave counted as one unit; females and children counted as fractions of a unit. Initially the slaves were provided by the\nRoyal African Company\n.\nThe South Sea Company established slave reception factories at\nCartagena, Colombia\n,\nVeracruz\n, Mexico, Panama,\nPortobello\n,\nLa Guaira\n,\nBuenos Aires\n,\nLa Havana\nand\nSantiago de Cuba\n, and slave deposits at\nJamaica\nand\nBarbados\n. Despite problems with speculation, the South Sea Company was relatively successful at\nslave trading\nand meeting its quota (it was unusual for other, similarly chartered companies to fulfill their quotas). According to records compiled by David Eltis and others, during the course of 96 voyages in 25 years, the South Sea Company purchased 34,000 slaves, of whom 30,000 survived the voyage across the Atlantic.\n[\n49\n]\n(Thus about 11% of the slaves died on the voyage: a relatively low mortality rate for the\nMiddle Passage\n.\n[\n50\n]\n) The company persisted with the slave trade through two wars with Spain and the calamitous 1720 commercial\nbubble\n. The company's slave trading peaked during 1725, five years after the bubble burst.\n[\n51\n]\nThe slave Asiento contract of 1713 granted a permit to send one vessel of 500 tons per year, loaded with duty-free merchandise to be sold at the fairs of\nNew Spain\n,\nCartagena\nand\nPortobello\n. This was an unprecedented concession that broke two centuries of strict exclusion of foreign merchants from the Spanish Empire, although a quarter of the profit was to be paid to the Spanish Crown.\n[\n52\n]\nThe first ship to head for the Americas, the\nRoyal Prince\n, was scheduled for 1714 but was delayed until August 1716. In consideration of the three annual ships missed since the date of the Asiento, the permitted tonnage of the next ten ships was raised to 650.\n[\n53\n]\nOnly seven annual ships sailed during the Asiento, the last one being the\nRoyal Caroline\nin 1732. The company's failure to produce accounts for all the annual ships but the first one, and lack of payment of the proceeds to the Spanish Crown from the profits for all the annual ships, resulted in no permits being granted after the\nRoyal Caroline\ntrip of 1732–1734.\nIn contrast to the \"legitimate\" trade in slaves, the regular trade of the annual ships generated healthy returns, in some case profits were over 100%.\n[\n54\n]\nAccounts for the voyage of the\nRoyal Prince\nwere not presented until 1733, following continuous demands by Spanish officials. They reported profits of £43,607.\n[\n55\n]\nSince the King of Spain was entitled to 25% of the profits, after deducting interest on a loan he claimed £8,678. The South Sea Company never paid the amount due for the first annual ship to the Spanish Crown, nor did it pay any amount for any of the other six trips.\n[\n56\n]\n: 341 \nThe\nGreenland Company\nhad been established by an act of Parliament, the\nGreenland Trade Act 1692\n(\n4 Will. & Mar.\nc. 17) in 1693 with the object of catching whales in the Arctic. The products of their \"whale-fishery\" were to be free of customs and other duties. Partly due to maritime disruption caused by wars with France, the Greenland Company failed financially within a few years. In 1722 Henry Elking published a proposal, directed at the governors of the South Sea Company, that they should resume the \"Greenland Trade\" and send ships to catch whales in the Arctic. He made very detailed suggestions about how the ships should be crewed and equipped.\n[\n57\n]\nThe British Parliament confirmed that a British Arctic \"whale-fishery\" would continue to benefit from freedom from customs duties, and in 1724 the South Sea Company decided to commence whaling. They had 12 whale-ships built on the River Thames and these went to the Greenland seas in 1725. Further ships were built in later years, but the venture was not successful. There were hardly any experienced whalemen remaining in Britain, and the company had to engage Dutch and Danish whalemen for the key posts aboard their ships: for instance all commanding officers and harpooners were hired from the\nNorth Frisian\nisland of\nFöhr\n.\n[\n58\n]\nOther costs were badly controlled and the catches remained disappointingly few, even though the company was sending up to 25 ships to\nDavis Strait\nand the\nGreenland\nseas in some years. By 1732 the company had accumulated a net loss of £177,782 from their eight years of Arctic whaling.\n[\n59\n]\nThe South Sea Company directors appealed to the British government for further support. Parliament had passed the\nGreenland Fishery Act 1731\n(\n5 Geo. 2\n. c. 28) in 1732 that extended the duty-free concessions for a further nine years. In 1733 the\nWhale Fishery Act 1732\n(\n6 Geo. 2\n. c. 33) was passed that also granted a government subsidy to British Arctic whalers, the first in a long series of such acts of Parliament that continued and modified the whaling subsidies throughout the 18th century. This, and the subsequent acts, required the whalers to meet conditions regarding the crewing and equipping of the whale-ships that closely resembled the conditions suggested by Elking in 1722.\n[\n60\n]\nIn spite of the extended duty-free concessions, and the prospect of real subsidies as well, the court and directors of the South Sea Company decided that they could not expect to make profits from Arctic whaling. They sent out no more whale-ships after the loss-making 1732 season.\nGovernment debt after the Seven Years' War\n[\nedit\n]\nThe company continued its trade (when not interrupted by war) until the end of the\nSeven Years' War\n(1756–1763). However, its main function was always managing government debt, rather than trading with the Spanish colonies. The South Sea Company continued its management of part of the\nnational debt\nuntil it was disestablished in 1853, at which point the debt was reconsolidated. The debt was not paid off by the time of the\nFirst World War\n, at which point it was consolidated again, under terms that allowed the government to avoid repaying the principal.\nThe armorials of the South Sea Company, according to a\ngrant of arms\ndated 31 October 1711, were:\nAzure, a globe whereon are represented the Straits of Magellan and Cape Horn all proper and in sinister chief point two herrings haurient in saltire argent crowned or, in a canton the united arms of Great Britain\n. Crest:\nA ship of three masts in full sail\n. Supporters, dexter:\nThe emblematic figure of Britannia, with the shield, lance etc all proper\n; sinister:\nA fisherman completely clothed, with cap boots fishing net etc and in his hand a string of fish, all proper\n.\n[\n61\n]\nOfficers of the South Sea Company\n[\nedit\n]\nSouth Sea Company Act 1753\nAct of Parliament\nParliament of Great Britain\nLong title\nAn Act for reducing the Number of Directors of the Corporation of the Governor and Company of Merchants of Great Britain trading to The South-Seas and other Parts of America; and for encouraging the Fishery; and for regulating the Election of the Governors and Directors of the said Company.\nCitation\n26 Geo. 2\n. c. 16\nTerritorial extent \nGreat Britain\nDates\nRoyal assent\n15 May 1753\nCommencement\n11 January 1753\n[\nb\n]\nRepealed\n15 July 1867\nOther legislation\nRepealed by\nStatute Law Revision Act 1867\nStatus: Repealed\nText of statute as originally enacted\nThe South Sea Company had a governor (generally an honorary position), a subgovernor, a deputy governor and 30 directors – reduced by the\nSouth Sea Company Act 1753\n(\n26 Geo. 2\n. c. 16) to 21 directors.\n[\n62\n]\nYear\nGovernor\nSubgovernor\nDeputy governor\nJuly 1711\nRobert Harley, 1st Earl of Oxford\nSir James Bateman\nSamuel Ongley\nAugust 1712\nSir Ambrose Crowley\nOctober 1713\nSamuel Shepheard\nFebruary 1715\nGeorge, Prince of Wales\nFebruary 1718\nKing George I\nNovember 1718\nJohn Fellows\nFebruary 1719\nCharles Joye\nFebruary 1721\nSir John Eyles, Bt\nJohn Rudge\nJuly 1727\nKing George II\nFebruary 1730\nJohn Hanbury\nFebruary 1733\nSir Richard Hopkins\nJohn Bristow\nFebruary 1735\nPeter Burrell\nMarch 1756\nJohn Bristow\nJohn Philipson\nFebruary 1756\nLewis Way\nJanuary 1760\nKing George III\nFebruary 1763\nLewis Way\nRichard Jackson\nMarch 1768\nThomas Coventry\nJanuary 1771\nThomas Coventry\nvacant (?)\nJanuary 1772\nJohn Warde\nMarch 1775\nSamuel Salt\nJanuary 1793\nBenjamin Way\nRobert Dorrell\nFebruary 1802\nPeter Pierson\nFebruary 1808\nCharles Bosanquet\nBenjamin Harrison\n1820\nKing George IV\nJanuary 1826\nSir Robert Baker\n1830\nKing William IV\nJuly 1837\nQueen Victoria\nJanuary 1838\nCharles Franks\nThomas Vigne\nDavid Liss\n' historical-mystery novel\nA Conspiracy of Paper\n, set in 1720 London, is focused on the South Sea Company at the top of its power, its fierce rivalry with the\nBank of England\nand the events leading up to the collapse of the \"bubble\".\nCharles Lamb\n's essay\nThe South-Sea House\n(1820) in\nEssays of Elia\n– Lamb once worked in the South Sea House, and adopted his pseudonym (Elia) from a coworker there.\nCharles Dickens\nnovels are littered with stock-market speculations, villains, swindlers and fictional speculators:\nNicholas Nickleby\n(1839) – Ralph Nickleby's great Joint Stock Company, United Metropolitan Improved Hot Muffin and Crumpet Baking and Punctual Delivery Company.\nMartin Chuzzlewit\n(1844) – Anglo-Bengalee Disinterested Loan and Life Company, modelled loosely on the South Sea Bubble, is in essence a classic\nPonzi scheme\n.\nDavid Copperfield\n(1850) – The false accounting by the sycophant Uriah Heep, clerk to lawyer Mr Wickfield.\nLittle Dorrit\n(1857) – The financial house of Mr Merdle.\nRobert Goddard\n's novel\nSea Change\n(2000) covers the aftermath of the \"bubble\" and the attempts by politicians to evade responsibility and prevent a\nJacobite\nrestoration.\nList of stock market crashes and bear markets\nSSC coinage\nTulip mania\nHistory of company law in the United Kingdom\nWhaling in the United Kingdom\nMississippi Bubble\nButtonwood Agreement\nUSA 1792\nBern banking crisis of 1720\n^\nalternatively\nThe Governor and Company of the merchants of Great Britain, trading to the South Seas and other parts of America, and for the encouragement of fishing\n^\nStart of session.\n^\nThornbury, Walter,\nOld and New London\n, vol. 1, p. 538\n^\n\"Cloth Seal, Company, 1711–1853, South Seas & Fisheries\"\n.\nwww.bagseals.org\n.\n^\nJournals of the House of Commons\n, volume 16: 1708–1711, p. 685.\n^\na\nb\nc\nPaul, Helen (2009).\n\"The South Sea Company's slaving activities\"\n(PDF)\n.\nDiscussion Papers in Economics and Econometrics\n.\nISSN\n \n0966-4246\n.\n^\nMarshall, Dorothy (1962).\nEighteenth Century England\n, pp. 121–130.\n^\na\nb\nPaul, Helen J. (2013).\nThe South Sea Bubble: an economic history of its origins and consequences\n. London: Routledge.\nISBN\n \n978-0-415-70839-5\n.\nOCLC\n \n925312648\n.\n^\nThornbury, Walter. \"Threadneedle Street\".\nOld and New London\n. Volume 1 (London, 1878). pp. 531–544 – via British History Online. Accessed 21 July 2016.\n^\nCarswell, pp. 40, 48–50\n^\nCarswell, pp. 50–51\n^\na\nb\nCarswell, pp. 52–54\n^\nCarswell, pp. 54–55\n^\nDefoe, Daniel,\nAn Essay on the South-Sea Trade\n... , 2nd ed., (London, England: J. Baker, 1712),\npp. 40–41.\n^\nCarswell, p. 56\n^\nCarswell, pp. 57, 58\n^\nCarswell, pp. 60–63\n^\nCarswell, pp. 64–66\n^\nCarswell, pp. 65–66\n^\nCarswell, p. 67\n^\nCarswell, pp. 66–67\n^\nCarswell, pp. 67–70\n^\nCarswell, pp. 73–75\n^\nCarswell, pp. 75–76\n^\nCarswell, pp. 88–89\n^\nCarswell, pp. 89–90\n^\nCarswell, pp. 100–102\n^\na\nb\nCarswell, pp. 102–107\n^\n\"UK Budget Pie Chart for 2010 – Charts\"\n. Archived from\nthe original\non 28 July 2011.\n^\nCarswell, pp. 112–113\n^\nCarswell, pp. 114–118\n^\nCowles, ch. II, IV (esp. pp. 151, 168–169 for share prices)\n^\nCowles, ch. IV\n^\nCowles, chapter IV (esp. p. 146 for \"bribe shares\")\n^\na\nb\nCarswell, pp. 116–117\n^\nCarswell, pp. 138–140\n^\nOdlyzko, Andrew.\n\"An undertaking of great advantage, but nobody to know what it is: Bubbles and gullibility\"\n(PDF)\n.\nUniversity of Minnesota\n. Retrieved\n22 October\n2020\n.\n^\nAlter, Peter\n(2018). \"Der geplatzte Traum vom schnellen Geld\".\nDamals\n(in German). Vol. 50, no. 8. pp. \n72–\n76.\n^\nMcDonald, Forrest\n(9 September 1990).\n\"The English Revolution in America\"\n.\nNew York Times Book Review\n. Archived from\nthe original\non 25 May 2015.\n^\nMarshall, pp. 127–130.\n^\nRichard A. Kleer (2015), \"Riding a wave: the Company's role in the South Sea Bubble\", p. 165.\n^\nStephen Taylor (2008), \"Walpole, Robert, first earl of Orford (1676–1745)\",\nOxford Dictionary of National Biography\n^\nSpence,\nAnecdotes\n, 1820, p. 368.\n^\nJohn O'Farrell (2007),\nAn Utterly Impartial History of Britain – Or 2000 Years of Upper Class Idiots In Charge\n, Doubleday,\nISBN\n \n978-0-385-61198-5\n^\nWestfall, Richard S. (1983).\nNever at Rest: A Biography of Isaac Newton\n. Cambridge University Press. pp. \n861\n–862.\nISBN\n \n978-0-521-27435-7\n.\n^\nHolodny, Elena (10 November 2017).\n\"Isaac Newton Was a Genius, but Even He Lost Millions in the Stock Market\"\n.\nBusiness Insider\n.\n^\nUK\nConsumer Price Index\ninflation figures from 1209–2024 based on data from\n\"Inflation calculator\"\n.\nBank of England\n. London. 18 February 2026\n. Retrieved\n1 April\n2026\n.\n^\nNelson (1945) states that the substantial illicit trade pursued by the South Sea Company officials under the Asiento \"must be considered as a major cause of the War of Jenkins' Ear because it threatened to destroy the entire commercial framework of the Spanish Empire ... Unable to accept the destruction of its commercial system, Spain attempted to negotiate but requested that the company, as an evidence of good faith, should open its accounts for inspection by the Spanish representatives. Naturally, the directors refused, for compliance would have meant the complete exposure of the illegal traffic. Neither Spain nor the South Sea Company would yield. War was the inevitable result\".\n^\nBrown (1926, p. 663) says that The failure to comply with the accounting provisions of the Asiento treaty (in the context of Spanish knowledge of secret accounts kept by the South Sea Company which would prove clandestine trading) was a constant source of the friction which culminated in armed conflict.\n^\nFor Hildner (1938), the war of 1739 might have been averted if the issues addressed by the commission established in 1732 to settle disputes over the Asiento had been resolved.\n^\n\"History Cooperative – A Short History of Nearly Everything!\"\n.\nHistory Cooperative\n.\n{{\ncite web\n}}\n:  CS1 maint: deprecated archival service (\nlink\n)\n^\nPaul, Helen.\n\"The South Sea Company's slaving activities\"\n.\n{{\ncite web\n}}\n:  CS1 maint: deprecated archival service (\nlink\n)\n^\nPaul, H. J. (2010).\nThe South Sea Bubble\n.\n^\nWalker, G. J. (1979), p. 101\n^\nArchivo General de Indias, Seville, Spain IG2785\n^\nMcLachlan, (1940), pp. 130–131\n^\nArchivo General de Indias, Seville, Spain C266L3\n^\nHildner, Ernest G. (August 1938). \"The Role of the South Sea Company in the Diplomacy Leading to the War of Jenkins' Ear, 1729–1739\".\nThe Hispanic American Historical Review\n.\n18\n(3):\n322–\n341.\ndoi\n:\n10.2307\/2507151\n.\nJSTOR\n \n2507151\n.\n^\nElking, Henry [1722](1980).\nA view of the Greenland Trade and whale-fishery\n. Reprinted: Whitby: Caedmon.\nISBN\n \n0-905355-13-X\n^\nZacchi, Uwe (1986).\nMenschen von Föhr. Lebenswege aus drei Jahrhunderten\n(in German). Heide: Boyens & Co. p. 13.\nISBN\n \n978-3-8042-0359-4\n.\n^\nAnderson, Adam [1801](1967).\nThe Origin of Commerce\n. Reprinted: New York: Kelley.\n^\nEvans, Martin H. (2005). Statutory requirements regarding surgeons on British whale-ships.\nThe Mariner's Mirror\n91\n(1) 7–12.\n^\nNational Maritime Museum, Greenwich, catalogue entry for sculpture of arms, object ID: HRA0043\n[1]\n^\nSee, for 1711–21, J Carswell,\nSouth Sea Bubble\n(1960) 274–279; and for 1721–1840, see British Library, Add. MSS, 25544-9.\nHistorical\nBalen, Malcolm (2002).\nA Very English Deceit: The Secret History of the South Sea Bubble and the First Great Financial Scandal\n(London: Fourth Estate)\nISBN\n \n978-1-841-15552-4\nBrown, V.L. (1926), \"The South Sea Company and Contraband Trade\",\nThe American Historical Review\n,\n31\n(4):\n662–\n678,\ndoi\n:\n10.2307\/1840061\n,\nJSTOR\n \n1840061\nCarlos, Ann M. and Neal, Larry. (2006) \"The Micro-Foundations of the Early London Capital Market: Bank of England shareholders during and after the South Sea Bubble, 1720–25\",\nEconomic History Review\n59 (2006), pp. 498–538.\nonline\nCarswell, John (1960),\nThe South Sea Bubble\n, London: Cresset Press\nCowles, Virginia\n(1960),\nThe Great Swindle: The Story of the South Sea Bubble\n, New York: Harper\nDale, Richard S.; et al. (2005), \"Financial markets can go mad: evidence of irrational behaviour during the South Sea Bubble\",\nEconomic History Review\n,\n58\n(2):\n233–\n271,\ndoi\n:\n10.1111\/j.1468-0289.2005.00304.x\n,\nS2CID\n \n154836178\nDale, Richard (2004).\nThe First Crash: Lessons from the South Sea Bubble\n(Princeton University Press)\nFreeman, Mark, Robin Pearson, and James Taylor. (2013) \"Law, politics and the governance of English and Scottish joint-stock companies, 1600–1850\",\nBusiness History\n55#4 (2013): 636–652.\nonline\nHarris, Ron (1994). \"The Bubble Act: Its Passage and its Effects on Business Organization\",\nThe Journal of Economic History\n, 54 (3), 610–627\nHildner, E.G. Jr. (1938), \"The Role of the South Sea Company in the Diplomacy leading to the War of Jenkins' Ear, 1729–1739\",\nThe Hispanic American Historical Review\n,\n18\n(3):\n322–\n341,\ndoi\n:\n10.2307\/2507151\n,\nJSTOR\n \n2507151\nHoppit, Julian. (2002) \"The Myths of the South Sea Bubble\",\nTransactions of the Royal Historical Society\n, (2002) 12#1 pp. 141–165\nin JSTOR\nKleer, Richard A. (2015) \"Riding a wave: the Company's role in the South Sea Bubble\",\nThe Economic History Review\n68.1 (2015): 264–285.\nonline\nLöwe, Kathleen (2021)\nDie Südseeblase in der englischen Kunst des 18. und 19. Jahrhunderts. Bilder einer Finanzkrise\n, Berlin: Reimer.\nMcLachlan, J.O. (1940),\nTrade and Peace With Old Spain, 1667–1750\n, Cambridge: Cambridge University Press\n[\nISBN missing\n]\nMcColloch, William E. (2013) \"A shackled revolution? The Bubble Act and financial regulation in eighteenth-century England\",\nReview of Keynesian Economics\n1.3 (2013): 300–313.\nonline\nMackay, C.\nExtraordinary Popular Delusions and the Madness of Crowds\n(1841)\nMarshall, Dorothy. (1962)\nEighteenth Century England\nLongman. pp. 121–130.\n[\nISBN missing\n]\nMichie, R.C. (2001), \"From Market to Exchange, 1693–1801\",\nThe London Stock Exchange\n, Oxford: Oxford University Press,\nISBN\n \n978-0-19-924255-9\nNelson, G.H. (1945), \"Contraband Trade Under the Asiento\",\nThe American Historical Review\n,\n51\n(1):\n55–\n67,\ndoi\n:\n10.2307\/1843076\n,\nJSTOR\n \n1843076\nPaul, Helen Julia (2010)\nThe South Sea Bubble: an economic history of its origins and consequences\n,\nRoutledge Explorations in Economic History\nonline\nshort summary\nPaul, Helen. (2013)\nThe South Sea Bubble: An Economic History of its Origins and Consequences\nRoutledge, 176 pp.\n[\nISBN missing\n]\nPaul, Helen,\nThe \"South Sea Bubble\", 1720\n,\nEGO – European History Online\n, Mainz:\nInstitute of European History\n, 2015, retrieved: 17 March 2021 (\npdf\n).\nPlumb, J. H. (1956)\nSir Robert Walpole, vol. 1, The Making of a Statesman\n. ch 8\nShea, Gary S. (2007),\n\"Understanding financial derivatives during the South Sea Bubble: The case of the South Sea subscription shares\"\n(PDF)\n,\nOxford Economic Papers\n,\n59\n(Supplement 1):\ni73–\ni104,\ndoi\n:\n10.1093\/oep\/gpm031\nTemin, Peter; Voth, Hans-Joachim (2004),\n\"Riding the South Sea Bubble\"\n,\nAmerican Economic Review\n,\n94\n(5):\n1654–\n1668,\ndoi\n:\n10.1257\/0002828043052268\nStratmann, Silke (2000)\nMyths of Speculation: The South Sea Bubble and 18th-century English Literature\n. Munich: Fink\nWalker, G.J. (1979),\nPolítica Española y Comercio Colonial 1700–1789\n, Barcelona: Editorial Ariel\nFiction\nGoddard, Robert (2000),\nSea Change\n, London: Bantam Press, p. 416,\nISBN\n \n978-0-593-04667-8\n.\nNovel set against the background of the South Sea bubble.\nLiss, David (2000),\nA Conspiracy of Paper\n, New York: Random House,\nISBN\n \n978-0-375-50292-7\n.\nNovel set in the South Sea Company bubble.\nQuotations related to\nSouth Sea Company\nat Wikiquote\nSouth Sea Bubble collection at Harvard University\nFamous First Bubbles – South Sea Bubble\nCharles McKay's Account of The South Sea Bubble in Modern English\nat the\nWayback Machine\n(archived 6 January 2014)\nDeprecated link\nat\narchive.today\n(archived 2012-12-09)\nThe South Sea Bubble\n, audio programming with Melvyn Bragg and guests, BBC Radio 4.","attrs_markdown":"[Jump to content](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#bodyContent)\n\nMain menu\n\nMain menu\n\nmove to sidebar\n\nhide\n\nNavigation\n\n- [Main page](https:\/\/en.wikipedia.org\/wiki\/Main_Page \"Visit the main page [z]\")\n- [Contents](https:\/\/en.wikipedia.org\/wiki\/Wikipedia:Contents \"Guides to browsing Wikipedia\")\n- [Current events](https:\/\/en.wikipedia.org\/wiki\/Portal:Current_events \"Articles related to current events\")\n- [Random article](https:\/\/en.wikipedia.org\/wiki\/Special:Random \"Visit a randomly selected article [x]\")\n- [About Wikipedia](https:\/\/en.wikipedia.org\/wiki\/Wikipedia:About \"Learn about Wikipedia and how it works\")\n- [Contact us](https:\/\/en.wikipedia.org\/wiki\/Wikipedia:Contact_us \"How to contact Wikipedia\")\n\nContribute\n\n- [Help](https:\/\/en.wikipedia.org\/wiki\/Help:Contents \"Guidance on how to use and edit Wikipedia\")\n- [Learn to edit](https:\/\/en.wikipedia.org\/wiki\/Help:Introduction \"Learn how to edit Wikipedia\")\n- [Community portal](https:\/\/en.wikipedia.org\/wiki\/Wikipedia:Community_portal \"The hub for editors\")\n- [Recent changes](https:\/\/en.wikipedia.org\/wiki\/Special:RecentChanges \"A list of recent changes to Wikipedia [r]\")\n- [Upload file](https:\/\/en.wikipedia.org\/wiki\/Wikipedia:File_upload_wizard \"Add images or other media for use on Wikipedia\")\n- [Special pages](https:\/\/en.wikipedia.org\/wiki\/Special:SpecialPages \"A list of all special pages [q]\")\n\n[![](https:\/\/en.wikipedia.org\/static\/images\/icons\/enwiki-25.svg) ![Wikipedia](https:\/\/en.wikipedia.org\/static\/images\/mobile\/copyright\/wikipedia-wordmark-en-25.svg) ![The Free Encyclopedia](https:\/\/en.wikipedia.org\/static\/images\/mobile\/copyright\/wikipedia-tagline-en-25.svg)](https:\/\/en.wikipedia.org\/wiki\/Main_Page)\n\n[Search](https:\/\/en.wikipedia.org\/wiki\/Special:Search \"Search Wikipedia [f]\")\n\nAppearance\n\n- [Donate](https:\/\/donate.wikimedia.org\/?wmf_source=donate&wmf_medium=sidebar&wmf_campaign=en.wikipedia.org&uselang=en)\n- [Create account](https:\/\/en.wikipedia.org\/w\/index.php?title=Special:CreateAccount&returnto=South+Sea+Company \"You are encouraged to create an account and log in; however, it is not mandatory\")\n- [Log in](https:\/\/en.wikipedia.org\/w\/index.php?title=Special:UserLogin&returnto=South+Sea+Company \"You're encouraged to log in; however, it's not mandatory. [o]\")\n\nPersonal tools\n\n- [Donate](https:\/\/donate.wikimedia.org\/?wmf_source=donate&wmf_medium=sidebar&wmf_campaign=en.wikipedia.org&uselang=en)\n- [Create account](https:\/\/en.wikipedia.org\/w\/index.php?title=Special:CreateAccount&returnto=South+Sea+Company \"You are encouraged to create an account and log in; however, it is not mandatory\")\n- [Log in](https:\/\/en.wikipedia.org\/w\/index.php?title=Special:UserLogin&returnto=South+Sea+Company \"You're encouraged to log in; however, it's not mandatory. [o]\")\n\n## Contents\nmove to sidebar\n\nhide\n\n- [(Top)](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company)\n- [1 Foundation](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#Foundation)\n  Toggle Foundation subsection\n  - [1\\.1 Conception of the company](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#Conception_of_the_company)\n  - [1\\.2 Initial speculation](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#Initial_speculation)\n  - [1\\.3 Flotation](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#Flotation)\n  - [1\\.4 The slave trade](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#The_slave_trade)\n  - [1\\.5 Changes of management](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#Changes_of_management)\n  - [1\\.6 War](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#War)\n- [2 Refinancing government debt](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#Refinancing_government_debt)\n  Toggle Refinancing government debt subsection\n  - [2\\.1 Trading more debt for equity](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#Trading_more_debt_for_equity)\n    - [2\\.1.1 Public announcement](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#Public_announcement)\n  - [2\\.2 Inflating the share price](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#Inflating_the_share_price)\n  - [2\\.3 Bubble Act](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#Bubble_Act)\n  - [2\\.4 Top reached](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#Top_reached)\n  - [2\\.5 Recriminations](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#Recriminations)\n  - [2\\.6 Quotations prompted by the collapse](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#Quotations_prompted_by_the_collapse)\n- [3 A trading company](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#A_trading_company)\n  Toggle A trading company subsection\n  - [3\\.1 Slave trade under the Asiento](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#Slave_trade_under_the_Asiento)\n  - [3\\.2 The annual ship](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#The_annual_ship)\n  - [3\\.3 Arctic whaling](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#Arctic_whaling)\n- [4 Government debt after the Seven Years' War](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#Government_debt_after_the_Seven_Years'_War)\n- [5 Armorials](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#Armorials)\n- [6 Officers of the South Sea Company](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#Officers_of_the_South_Sea_Company)\n- [7 In fiction](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#In_fiction)\n- [8 See also](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#See_also)\n- [9 Notes](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#Notes)\n- [10 References](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#References)\n- [11 Bibliography](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#Bibliography)\n- [12 External links](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#External_links)\n\nToggle the table of contents\n\n# South Sea Company\n24 languages\n\n- [العربية](https:\/\/ar.wikipedia.org\/wiki\/%D8%B4%D8%B1%D9%83%D8%A9_%D8%A7%D9%84%D8%A8%D8%AD%D8%B1_%D8%A7%D9%84%D8%AC%D9%86%D9%88%D8%A8%D9%8A \"شركة البحر الجنوبي – Arabic\")\n- [Azərbaycanca](https:\/\/az.wikipedia.org\/wiki\/C%C9%99nub_d%C9%99nizl%C9%99r_%C5%9Firk%C9%99ti \"Cənub dənizlər şirkəti – Azerbaijani\")\n- [Español](https:\/\/es.wikipedia.org\/wiki\/Compa%C3%B1%C3%ADa_del_Mar_del_Sur \"Compañía del Mar del Sur – Spanish\")\n- [Eesti](https:\/\/et.wikipedia.org\/wiki\/L%C3%B5unamere_kompanii \"Lõunamere kompanii – Estonian\")\n- [Suomi](https:\/\/fi.wikipedia.org\/wiki\/Etel%C3%A4meren_kupla \"Etelämeren kupla – Finnish\")\n- [Français](https:\/\/fr.wikipedia.org\/wiki\/Compagnie_de_la_mer_du_Sud \"Compagnie de la mer du Sud – French\")\n- [Gaeilge](https:\/\/ga.wikipedia.org\/wiki\/Baothchuideachta_na_Farraige_Theas \"Baothchuideachta na Farraige Theas – Irish\")\n- [Galego](https:\/\/gl.wikipedia.org\/wiki\/Compa%C3%B1%C3%ADa_dos_Mares_do_Sur \"Compañía dos Mares do Sur – Galician\")\n- [עברית](https:\/\/he.wikipedia.org\/wiki\/%D7%97%D7%91%D7%A8%D7%AA_%D7%94%D7%99%D7%9D_%D7%94%D7%93%D7%A8%D7%95%D7%9E%D7%99 \"חברת הים הדרומי – Hebrew\")\n- [Italiano](https:\/\/it.wikipedia.org\/wiki\/South_Sea_Company \"South Sea Company – Italian\")\n- [日本語](https:\/\/ja.wikipedia.org\/wiki\/%E5%8D%97%E6%B5%B7%E4%BC%9A%E7%A4%BE \"南海会社 – Japanese\")\n- [한국어](https:\/\/ko.wikipedia.org\/wiki\/%EB%82%A8%ED%95%B4%ED%9A%8C%EC%82%AC \"남해회사 – Korean\")\n- [Nederlands](https:\/\/nl.wikipedia.org\/wiki\/South_Sea_Company \"South Sea Company – Dutch\")\n- [Norsk bokmål](https:\/\/no.wikipedia.org\/wiki\/South_Sea_Company \"South Sea Company – Norwegian Bokmål\")\n- [Polski](https:\/\/pl.wikipedia.org\/wiki\/Kompania_M%C3%B3rz_Po%C5%82udniowych \"Kompania Mórz Południowych – Polish\")\n- [پښتو](https:\/\/ps.wikipedia.org\/wiki\/%D8%AF_%D8%B3%D9%88%DB%8C%D9%84%D9%8A_%D8%B3%D9%85%D9%86%D8%AF%D8%B1_%D8%B4%D8%B1%DA%A9%D8%AA \"د سویلي سمندر شرکت – Pashto\")\n- [Português](https:\/\/pt.wikipedia.org\/wiki\/Companhia_dos_Mares_do_Sul \"Companhia dos Mares do Sul – Portuguese\")\n- [Русский](https:\/\/ru.wikipedia.org\/wiki\/%D0%9A%D0%BE%D0%BC%D0%BF%D0%B0%D0%BD%D0%B8%D1%8F_%D0%AE%D0%B6%D0%BD%D1%8B%D1%85_%D0%BC%D0%BE%D1%80%D0%B5%D0%B9 \"Компания Южных морей – Russian\")\n- [ไทย](https:\/\/th.wikipedia.org\/wiki\/%E0%B8%9A%E0%B8%A3%E0%B8%B4%E0%B8%A9%E0%B8%B1%E0%B8%97%E0%B9%80%E0%B8%8B%E0%B8%B2%E0%B8%98%E0%B9%8C%E0%B8%8B%E0%B8%B5 \"บริษัทเซาธ์ซี – Thai\")\n- [Türkçe](https:\/\/tr.wikipedia.org\/wiki\/G%C3%BCney_Denizi_%C5%9Eirketi \"Güney Denizi Şirketi – Turkish\")\n- [Українська](https:\/\/uk.wikipedia.org\/wiki\/%D0%9A%D0%BE%D0%BC%D0%BF%D0%B0%D0%BD%D1%96%D1%8F_%D0%9F%D1%96%D0%B2%D0%B4%D0%B5%D0%BD%D0%BD%D0%B8%D1%85_%D0%BC%D0%BE%D1%80%D1%96%D0%B2 \"Компанія Південних морів – Ukrainian\")\n- [吴语](https:\/\/wuu.wikipedia.org\/wiki\/%E5%8D%97%E6%B5%B7%E6%B3%A1%E6%B2%AB%E4%BA%8B%E4%BB%B6 \"南海泡沫事件 – Wu\")\n- [粵語](https:\/\/zh-yue.wikipedia.org\/wiki\/%E5%8D%97%E6%B5%B7%E5%85%AC%E5%8F%B8%E6%B3%A1%E6%B2%AB \"南海公司泡沫 – Cantonese\")\n- [中文](https:\/\/zh.wikipedia.org\/wiki\/%E5%8D%97%E6%B5%B7%E6%B3%A1%E6%B2%AB%E4%BA%8B%E4%BB%B6 \"南海泡沫事件 – Chinese\")\n\n[Edit links](https:\/\/www.wikidata.org\/wiki\/Special:EntityPage\/Q1210696#sitelinks-wikipedia \"Edit interlanguage links\")\n\n- [Article](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company \"View the content page [c]\")\n- [Talk](https:\/\/en.wikipedia.org\/wiki\/Talk:South_Sea_Company \"Discuss improvements to the content page [t]\")\n\nEnglish\n\n- [Read](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company)\n- [Edit](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=edit \"Edit this page [e]\")\n- [View history](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=history \"Past revisions of this page [h]\")\n\nTools\n\nTools\n\nmove to sidebar\n\nhide\n\nActions\n\n- [Read](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company)\n- [Edit](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=edit \"Edit this page [e]\")\n- [View history](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=history)\n\nGeneral\n\n- [What links here](https:\/\/en.wikipedia.org\/wiki\/Special:WhatLinksHere\/South_Sea_Company \"List of all English Wikipedia pages containing links to this page [j]\")\n- [Related changes](https:\/\/en.wikipedia.org\/wiki\/Special:RecentChangesLinked\/South_Sea_Company \"Recent changes in pages linked from this page [k]\")\n- [Upload 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version](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&printable=yes \"Printable version of this page [p]\")\n\nIn other projects\n\n- [Wikiquote](https:\/\/en.wikiquote.org\/wiki\/South_Sea_Company)\n- [Wikidata item](https:\/\/www.wikidata.org\/wiki\/Special:EntityPage\/Q1210696 \"Structured data on this page hosted by Wikidata [g]\")\n\nAppearance\n\nmove to sidebar\n\nhide\n\nFrom Wikipedia, the free encyclopedia\n\n18th-century economic speculation bubble\n\n\"South Sea Bubble\" redirects here. For the Noël Coward play, see [South Sea Bubble (play)](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Bubble_\\(play\\) \"South Sea Bubble (play)\"). For the painting, see [The South Sea Bubble](https:\/\/en.wikipedia.org\/wiki\/The_South_Sea_Bubble \"The South Sea Bubble\").\n\n|   |   |\n|---|---|\n| [![](https:\/\/upload.wikimedia.org\/wikipedia\/commons\/thumb\/2\/2e\/Arms_of_the_South_Sea_Company.svg\/250px-Arms_of_the_South_Sea_Company.svg.png)](https:\/\/en.wikipedia.org\/wiki\/File:Arms_of_the_South_Sea_Company.svg)Arms of the South Sea Company: *Azure, a globe whereon are represented the [Straits of Magellan](https:\/\/en.wikipedia.org\/wiki\/Straits_of_Magellan \"Straits of Magellan\") and [Cape Horn](https:\/\/en.wikipedia.org\/wiki\/Cape_Horn \"Cape Horn\") all [proper](https:\/\/en.wikipedia.org\/wiki\/Tincture_\\(heraldry\\) \"Tincture (heraldry)\") and in [sinister](https:\/\/en.wikipedia.org\/wiki\/Dexter_and_sinister \"Dexter and sinister\") chief point two herrings haurient in saltire argent crowned or, in a [canton](https:\/\/en.wikipedia.org\/wiki\/Canton_\\(heraldry\\) \"Canton (heraldry)\") the [united arms of Great Britain](https:\/\/en.wikipedia.org\/wiki\/Royal_coat_of_arms_of_the_United_Kingdom \"Royal coat of arms of the United Kingdom\")* |   |\n| Company type | [Public](https:\/\/en.wikipedia.org\/wiki\/Joint-stock_company \"Joint-stock company\") |\n| Industry | [Slave trade](https:\/\/en.wikipedia.org\/wiki\/History_of_slavery \"History of slavery\"), [speculation](https:\/\/en.wikipedia.org\/wiki\/Speculation \"Speculation\"), [whaling](https:\/\/en.wikipedia.org\/wiki\/Whaling \"Whaling\") |\n| Founded | January 1711; 315 years ago (1711-01) |\n| Defunct | 1853; 173 years ago (1853) |\n| Headquarters | London, Great Britain |\n\n[![](https:\/\/upload.wikimedia.org\/wikipedia\/commons\/thumb\/b\/b9\/SouthSeaHouse_Stowe%27sSurveyOfLondon_1754.PNG\/250px-SouthSeaHouse_Stowe%27sSurveyOfLondon_1754.PNG)](https:\/\/en.wikipedia.org\/wiki\/File:SouthSeaHouse_Stowe%27sSurveyOfLondon_1754.PNG)\n\n1754 engraving of Old South Sea House, the headquarters of the South Sea Company, which burned down in 1826,[\\[1\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-1) on the corner of [Bishopsgate Street](https:\/\/en.wikipedia.org\/wiki\/Bishopsgate_Street \"Bishopsgate Street\") and [Threadneedle Street](https:\/\/en.wikipedia.org\/wiki\/Threadneedle_Street \"Threadneedle Street\") in the [City of London](https:\/\/en.wikipedia.org\/wiki\/City_of_London \"City of London\")\n\n[![](https:\/\/upload.wikimedia.org\/wikipedia\/commons\/thumb\/2\/2c\/Microcosm_of_London_Plate_101_-_South_Sea_House%2C_Dividend_Hall_%28tone%29.jpg\/250px-Microcosm_of_London_Plate_101_-_South_Sea_House%2C_Dividend_Hall_%28tone%29.jpg)](https:\/\/en.wikipedia.org\/wiki\/File:Microcosm_of_London_Plate_101_-_South_Sea_House,_Dividend_Hall_\\(tone\\).jpg)\n\nThe [Dividend](https:\/\/en.wikipedia.org\/wiki\/Dividend \"Dividend\") Hall of South Sea House, 1810\n\n[![](https:\/\/upload.wikimedia.org\/wikipedia\/commons\/thumb\/8\/86\/South_Sea_House_-_Portal.jpg\/250px-South_Sea_House_-_Portal.jpg)](https:\/\/en.wikipedia.org\/wiki\/File:South_Sea_House_-_Portal.jpg)\n\nHeraldic grouping above main entrance to the surviving South Sea House, Threadneedle Street, rebuilt after the fire of 1826\n\n[![](https:\/\/upload.wikimedia.org\/wikipedia\/commons\/thumb\/3\/3c\/SouthSeaCompany_TradeLabel.png\/250px-SouthSeaCompany_TradeLabel.png)](https:\/\/en.wikipedia.org\/wiki\/File:SouthSeaCompany_TradeLabel.png)\n\nAn early trade label of the South Sea Company, for export of finest English [serge](https:\/\/en.wikipedia.org\/wiki\/Serge_\\(fabric\\) \"Serge (fabric)\") cloth. The letters circumscribing the seal below should read \"SS\\&FC\", for \"South Sea and Fishery Company\"[\\[2\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-2)\n\n[![](https:\/\/upload.wikimedia.org\/wikipedia\/commons\/thumb\/3\/33\/ShareCertificate_SouthSeaCompany_1733.jpg\/250px-ShareCertificate_SouthSeaCompany_1733.jpg)](https:\/\/en.wikipedia.org\/wiki\/File:ShareCertificate_SouthSeaCompany_1733.jpg)\n\n1723 pro-forma power of attorney signed by a shareholder of the South Sea Company showing the company's coat of arms and the Latin motto *A Gadibus usque Auroram* (\"From [Cádiz](https:\/\/en.wikipedia.org\/wiki\/C%C3%A1diz \"Cádiz\") to Dawn\", [Juvenal](https:\/\/en.wikipedia.org\/wiki\/Juvenal \"Juvenal\"), *[Satires](https:\/\/en.wikipedia.org\/wiki\/Satires_\\(Juvenal\\) \"Satires (Juvenal)\")*, 10)\n\n[![](https:\/\/upload.wikimedia.org\/wikipedia\/commons\/thumb\/c\/c2\/Edward_Matthew_Ward_%281816-1879%29_-_The_South_Sea_Bubble%2C_a_Scene_in_%27Change_Alley_in_1720_-_N00432_-_National_Gallery.jpg\/250px-Edward_Matthew_Ward_%281816-1879%29_-_The_South_Sea_Bubble%2C_a_Scene_in_%27Change_Alley_in_1720_-_N00432_-_National_Gallery.jpg)](https:\/\/en.wikipedia.org\/wiki\/File:Edward_Matthew_Ward_\\(1816-1879\\)_-_The_South_Sea_Bubble,_a_Scene_in_%27Change_Alley_in_1720_-_N00432_-_National_Gallery.jpg)\n\n*[The South Sea Bubble](https:\/\/en.wikipedia.org\/wiki\/The_South_Sea_Bubble \"The South Sea Bubble\")* by [Edward Matthew Ward](https:\/\/en.wikipedia.org\/wiki\/Edward_Matthew_Ward \"Edward Matthew Ward\"), 1847. A [Hogarthian](https:\/\/en.wikipedia.org\/wiki\/Hogarthian \"Hogarthian\") image of the 1720 \"South Sea Bubble\" now in the [Tate Britain](https:\/\/en.wikipedia.org\/wiki\/Tate_Britain \"Tate Britain\")\n\nThe **South Sea Company** (officially: either **The Governor and Company of the merchants of Great Britain, trading to the South Seas and other parts of America and for the encouragement of the Fishery** or **the Governor and Company of merchants of Great Britain, trading to the South-Seas, and other parts of America, and for encouraging the Fishery**)[\\[a\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-3)[\\[3\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-4) was a British [joint-stock company](https:\/\/en.wikipedia.org\/wiki\/Joint-stock_company \"Joint-stock company\") founded in January 1711, created as a [public-private partnership](https:\/\/en.wikipedia.org\/wiki\/Public-private_partnership \"Public-private partnership\") to [consolidate](https:\/\/en.wikipedia.org\/wiki\/Debt_consolidation \"Debt consolidation\") and reduce the cost of the [national debt](https:\/\/en.wikipedia.org\/wiki\/National_debt \"National debt\"). To generate income, in 1713 the company was granted a monopoly (the *[Asiento de Negros](https:\/\/en.wikipedia.org\/wiki\/Asiento_de_Negros \"Asiento de Negros\")*) to supply African slaves to the islands in the \"[South Seas](https:\/\/en.wikipedia.org\/wiki\/South_Seas \"South Seas\")\" and [South America](https:\/\/en.wikipedia.org\/wiki\/South_America \"South America\").[\\[4\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-:0-5) When the company was created, Britain was involved in the [War of the Spanish Succession](https:\/\/en.wikipedia.org\/wiki\/War_of_the_Spanish_Succession \"War of the Spanish Succession\") and Spain and Portugal controlled most of South America. There was thus no realistic prospect that trade would take place, and as it turned out, the Company never realised any significant profit from its monopoly. However, Company stock rose greatly in value as it expanded its operations dealing in government debt, and peaked in 1720 before suddenly collapsing to little above its original [flotation](https:\/\/en.wikipedia.org\/wiki\/Flotation_\\(shares\\) \"Flotation (shares)\") price. The notorious [economic bubble](https:\/\/en.wikipedia.org\/wiki\/Economic_bubble \"Economic bubble\") thus created, which ruined thousands of investors, became known as the **South Sea Bubble**.\n\nThe [Bubble Act 1720](https:\/\/en.wikipedia.org\/wiki\/Bubble_Act_1720 \"Bubble Act 1720\") ([6 Geo. 1](https:\/\/en.wikipedia.org\/wiki\/6_Geo._1 \"6 Geo. 1\") c. 18), which forbade the creation of joint-stock companies without [royal charter](https:\/\/en.wikipedia.org\/wiki\/Royal_charter \"Royal charter\"), was promoted by the South Sea Company itself before its collapse.\n\nIn Great Britain, many investors were ruined by the share-price collapse, and as a result, the national economy diminished substantially. The founders of the scheme engaged in [insider trading](https:\/\/en.wikipedia.org\/wiki\/Insider_trading \"Insider trading\"), by using their advance knowledge of the timings of national debt consolidations to make large profits from purchasing debt in advance. Huge bribes were given to politicians to support the [acts of Parliament](https:\/\/en.wikipedia.org\/wiki\/Acts_of_Parliament \"Acts of Parliament\") necessary for the scheme.[\\[5\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-6) Company money was used to deal in its own shares, and selected individuals purchasing shares were given cash loans backed by those same shares to spend on purchasing more shares. The expectation of profits from trade with South America was talked up to encourage the public to purchase shares, but the bubble prices reached far beyond what the actual profits of the business (namely the slave trade) could justify.[\\[6\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-:1-7)\n\nA parliamentary inquiry was held after the bursting of the bubble to discover its causes. A number of politicians were disgraced, and people found to have profited unlawfully from the company had personal assets confiscated proportionate to their gains (most had already been rich and remained so). Finally, the Company was restructured and continued to operate for more than a century after the Bubble. The headquarters were in [Threadneedle Street](https:\/\/en.wikipedia.org\/wiki\/Threadneedle_Street \"Threadneedle Street\"), at the centre of the [City of London](https:\/\/en.wikipedia.org\/wiki\/City_of_London \"City of London\"), the financial district of the capital. At the time of these events, the [Bank of England](https:\/\/en.wikipedia.org\/wiki\/Bank_of_England \"Bank of England\") was also a private company dealing in national debt, and the crash of its rival confirmed its position as banker to the British government.[\\[7\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-8)\n\n## Foundation\n\\[[edit](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=edit&section=1 \"Edit section: Foundation\")\\]\n\nWhen in August 1710 [Robert Harley](https:\/\/en.wikipedia.org\/wiki\/Robert_Harley,_1st_Earl_of_Oxford_and_Earl_Mortimer \"Robert Harley, 1st Earl of Oxford and Earl Mortimer\") was appointed [Chancellor of the Exchequer](https:\/\/en.wikipedia.org\/wiki\/Chancellor_of_the_Exchequer \"Chancellor of the Exchequer\"), the government had already become reliant on the [Bank of England](https:\/\/en.wikipedia.org\/wiki\/Bank_of_England \"Bank of England\"), a privately owned company chartered 16 years previously, which had obtained a monopoly as the lender to the government. The government had become dissatisfied with the service it was receiving and Harley was actively seeking new ways to improve the national finances.\n\nA new parliament met in November 1710 resolved to attend to the national finances, which were suffering from the pressures of [two simultaneous wars](https:\/\/en.wikipedia.org\/wiki\/List_of_wars_involving_Great_Britain \"List of wars involving Great Britain\"): the [War of the Spanish Succession](https:\/\/en.wikipedia.org\/wiki\/War_of_the_Spanish_Succession \"War of the Spanish Succession\") with France, which ended in 1713, and the [Great Northern War](https:\/\/en.wikipedia.org\/wiki\/Great_Northern_War \"Great Northern War\"), which was not to end until 1721. Harley came prepared, with detailed accounts describing the situation of the national debt, which was customarily a piecemeal arrangement, with each government department borrowing independently as the need arose. He released the information steadily, continually adding new reports of debts incurred and scandalous expenditure, until in January 1711 the House of Commons agreed to appoint a committee to investigate the entire debt. The committee included Harley himself, the two [Auditors of the Imprests](https:\/\/en.wikipedia.org\/wiki\/Auditor_of_the_Imprests \"Auditor of the Imprests\") (whose task was to investigate government spending), [Edward Harley](https:\/\/en.wikipedia.org\/wiki\/Edward_Harley_\\(1664%E2%80%931735\\) \"Edward Harley (1664–1735)\") (the Chancellor's brother), Paul Foley (the Chancellor's brother-in-law), the [Secretary of the Treasury](https:\/\/en.wikipedia.org\/wiki\/Secretary_to_the_Treasury \"Secretary to the Treasury\"), [William Lowndes](https:\/\/en.wikipedia.org\/wiki\/William_Lowndes_\\(British_politician\\) \"William Lowndes (British politician)\") (who had had significant responsibility for reminting the entire debased British coinage in 1696) and [John Aislabie](https:\/\/en.wikipedia.org\/wiki\/John_Aislabie \"John Aislabie\") (who represented the [October Club](https:\/\/en.wikipedia.org\/wiki\/October_Club_\\(Tory_Party\\) \"October Club (Tory Party)\"), a group of about 200 MPs who had agreed to vote together).[\\[8\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-9)\n\nHarley's first concern was to find £300,000 for the next quarter's payroll for the British army operating on the Continent under the [Duke of Marlborough](https:\/\/en.wikipedia.org\/wiki\/Duke_of_Marlborough \"Duke of Marlborough\"). This funding was provided by a private consortium of Edward Gibbon (grandfather of [the historian](https:\/\/en.wikipedia.org\/wiki\/Edward_Gibbon#Early_life:_1737%E2%80%931752 \"Edward Gibbon\")), [George Caswall](https:\/\/en.wikipedia.org\/wiki\/George_Caswall \"George Caswall\"), and [Hoare's Bank](https:\/\/en.wikipedia.org\/wiki\/Hoare%27s_Bank \"Hoare's Bank\"). The Bank of England had been operating a [lottery](https:\/\/en.wikipedia.org\/wiki\/Lottery \"Lottery\") on behalf of the government, but in 1710 this had produced less revenue than expected and another begun in 1711 was also performing poorly; Harley granted the authority to sell tickets to [John Blunt](https:\/\/en.wikipedia.org\/wiki\/Sir_John_Blunt,_1st_Baronet \"Sir John Blunt, 1st Baronet\"), a director of the [Hollow Sword Blade Company](https:\/\/en.wikipedia.org\/wiki\/Hollow_Sword_Blade_Company \"Hollow Sword Blade Company\"), which despite its name was an unofficial bank. Sales commenced on 3 March 1711 and tickets had completely sold out by 7 March, making it the first truly successful English state lottery.[\\[9\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-10)\n\nThe success was shortly followed by another larger lottery, \"The Two Million Adventure\" or \"The Classis\", with tickets costing £100, with a top prize of £20,000 and every ticket winning a prize of at least £10. Although prizes were advertised by their total value, they were in fact paid out by instalments in the form of a fixed [annuity](https:\/\/en.wikipedia.org\/wiki\/Annuity \"Annuity\") over a period of years, so that the government effectively held the prize money as borrowings until the whole value had been paid out to the winners. Marketing was handled by members of the Sword Blade syndicate, Gibbon selling £200,000 of tickets and earning £4,500 commission, and Blunt selling £993,000. Charles Blunt (a relative) was made Paymaster of the lottery with expenses of £5,000.\n\n### Conception of the company\n\\[[edit](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=edit&section=2 \"Edit section: Conception of the company\")\\]\n\nThe national debt investigation concluded that a total of £9 million was owed by the government, with no specifically allocated income to pay it off. Robert Harley and John Blunt had jointly devised a scheme to consolidate this debt in much the same way that the Bank of England had consolidated previous debts, although the Bank still held the monopoly for operating as a bank. All holders of the debt (creditors) would be required to surrender it to a new company formed for the purpose, the South Sea Company, which in return would issue them shares in itself to the same nominal value. The government would make an annual payment to the Company of £568,279, equating to 6% interest plus expenses, which would then be redistributed to the shareholders as a dividend. The company was also granted a monopoly to trade with South America, a potentially lucrative enterprise, but one controlled by Spain – with which Britain was at war.[\\[10\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-auto2-11)\n\nAt that time, when the continent of America was being explored and colonised, Europeans applied the term \"South Seas\" only to South America and surrounding waters. The concession both held out the potential for future profits and encouraged a desire for an end to the war, necessary if any profits were to be made. The original suggestion for the South Sea scheme came from [William Paterson](https:\/\/en.wikipedia.org\/wiki\/William_Paterson_\\(banker\\) \"William Paterson (banker)\"), one of the founders of the Bank of England and of the financially disastrous [Darien Scheme](https:\/\/en.wikipedia.org\/wiki\/Darien_Scheme \"Darien Scheme\").[\\[10\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-auto2-11)\n\nHarley was rewarded for delivering the scheme by being created Earl of Oxford on 23 May 1711 and was promoted to [Lord High Treasurer](https:\/\/en.wikipedia.org\/wiki\/Lord_High_Treasurer \"Lord High Treasurer\"). With a more secure position, he began secret peace negotiations with France.\n\n### Initial speculation\n\\[[edit](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=edit&section=3 \"Edit section: Initial speculation\")\\]\n\nThe scheme to thus consolidate all government debt and to manage it better in the future held out the prospect of all existing creditors being repaid the full nominal value of their loans, which at the time before the scheme was publicised were valued at a discounted rate of £55 per £100 nominal value, as the lotteries were discredited. The government's ability to repay in full was widely doubted. Thus bonds representing the debt intended to be consolidated under the scheme were available for purchase on the open market at a price that allowed anyone with advance knowledge to buy and resell in the immediate future at a high profit, for as soon as the scheme became publicised the bonds would once again be worth at least their nominal value, as repayment was now more certain a prospect. This anticipation of gain made it possible for Harley to bring further financial supporters into the scheme, such as James Bateman and [Theodore Janssen](https:\/\/en.wikipedia.org\/wiki\/Theodore_Janssen \"Theodore Janssen\").[\\[11\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-12)\n\n[Daniel Defoe](https:\/\/en.wikipedia.org\/wiki\/Daniel_Defoe \"Daniel Defoe\") commented:[\\[12\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-13)\n\n> Unless the Spaniards are to be divested of common sense, infatuate, and given up, abandoning their own commerce, throwing away the only valuable stake they have left in the world, and in short, bent on their own ruin, we cannot suggest that they will ever, on any consideration, or for any equivalent, part with so valuable, indeed so inestimable a jewel, as the exclusive trade to their own plantations.\n\n— *An Essay on the South-Sea Trade*\n\nThe originators of the scheme knew that there was no money to invest in a trading venture, and no realistic expectation that there would ever be a trade to exploit, but nevertheless, the potential for great wealth was widely publicised at every opportunity, so as to encourage interest in the scheme. The founders' objective was to create a company that would enable them to become wealthy and offer opportunities for further government contracts.[\\[13\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-14)\n\n### Flotation\n\\[[edit](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=edit&section=4 \"Edit section: Flotation\")\\]\n\n[![](https:\/\/upload.wikimedia.org\/wikipedia\/commons\/thumb\/d\/d4\/Bubble.folly.jpg\/250px-Bubble.folly.jpg)](https:\/\/en.wikipedia.org\/wiki\/File:Bubble.folly.jpg)\n\nA bubble-era stock promoter, caricatured as a \"[night wind hawker](https:\/\/en.wikipedia.org\/wiki\/Pump_and_dump \"Pump and dump\")\" (*The Great Picture of Folly*, 1720)\n\nThe [royal charter](https:\/\/en.wikipedia.org\/wiki\/Royal_charter \"Royal charter\") for the company, based on that of the Bank of England, was drawn up by Blunt who was paid £3,846 for his services in setting up the company. Directors would be elected every three years and shareholders would meet twice a year. The company employed a cashier, secretary and accountant. The governor was intended as an honorary position, and was later customarily held by the monarch. The charter allowed the full court of directors to nominate a smaller committee to act on any matter on its behalf. Directors of the Bank of England and of the [East India Company](https:\/\/en.wikipedia.org\/wiki\/East_India_Company \"East India Company\") were barred from being directors of the South Sea Company. Any ship of more than 500 tons owned by the company was to have a Church of England clergyman on board.\n\nThe surrender of government debt for company stock was to occur in five lots. The first two of these, totalling £2.75 million from about 200 large investors, had already been arranged before the company's charter was issued on 10 September 1711. The government surrendered £0.75 million of its debt held by different departments (at that time individual office holders were at liberty to invest government funds under their control to their own advantage before it was required for government expenditure). Harley surrendered £8,000 of debt and was appointed Governor of the new company. Blunt, Caswall and Sawbridge together surrendered £65,000, Janssen £25,000 of his own plus £250,000 from a foreign consortium, Decker £49,000, Sir Ambrose Crawley £36,791. The company had a Sub-Governor, Bateman; a Deputy Governor, Ongley; and 30 ordinary directors. Nine of the directors were politicians, five were members of the Sword Blade consortium, and seven more were financial magnates who had been attracted to the scheme.[\\[14\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-15)\n\nThe company created a coat of arms with the motto *A Gadibus usque ad Auroram* (\"From Cádiz to Dawn\", from [Juvenal](https:\/\/en.wikipedia.org\/wiki\/Juvenal \"Juvenal\"), [Satires](https:\/\/en.wikipedia.org\/wiki\/Satires_\\(Juvenal\\) \"Satires (Juvenal)\"), 10) and rented a large house in the City of London as its headquarters. Seven sub-committees were created to handle its everyday business, the most important being the \"committee for the affairs of the company\". The Sword Blade company was retained as the company's banker and on the strength of its new government connections issued notes in its own right, notwithstanding the Bank of England's monopoly. The task of the Company Secretary was to oversee trading activities; the Accountant, Grigsby, was responsible for registering and issuing stock; and the Cashier, Robert Knight, acted as Blunt's personal assistant at a salary of £200 per annum.[\\[15\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-16)\n\n### The slave trade\n\\[[edit](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=edit&section=5 \"Edit section: The slave trade\")\\]\n\n[![](https:\/\/upload.wikimedia.org\/wikipedia\/commons\/thumb\/9\/98\/Slavers-4496.jpg\/250px-Slavers-4496.jpg)](https:\/\/en.wikipedia.org\/wiki\/File:Slavers-4496.jpg)\n\nAfrican slaves taken aboard a slave ship\n\nThe [Treaty of Utrecht](https:\/\/en.wikipedia.org\/wiki\/Treaty_of_Utrecht \"Treaty of Utrecht\") of 1713 granted Britain an *[Asiento de Negros](https:\/\/en.wikipedia.org\/wiki\/Asiento_de_Negros \"Asiento de Negros\")* lasting 30 years to supply the Spanish colonies with 4,800 enslaved Africans (\"slaves\") per year. Britain was permitted to open offices in [Buenos Aires](https:\/\/en.wikipedia.org\/wiki\/Buenos_Aires \"Buenos Aires\"), [Caracas](https:\/\/en.wikipedia.org\/wiki\/Caracas \"Caracas\"), [Cartagena](https:\/\/en.wikipedia.org\/wiki\/Cartagena,_Colombia \"Cartagena, Colombia\"), [Havana](https:\/\/en.wikipedia.org\/wiki\/Havana \"Havana\"), [Panama](https:\/\/en.wikipedia.org\/wiki\/Panama \"Panama\"), [Portobello](https:\/\/en.wikipedia.org\/wiki\/Portobelo,_Col%C3%B3n \"Portobelo, Colón\") and [Veracruz](https:\/\/en.wikipedia.org\/wiki\/Veracruz_\\(city\\) \"Veracruz (city)\") to arrange the [Atlantic slave trade](https:\/\/en.wikipedia.org\/wiki\/Atlantic_slave_trade \"Atlantic slave trade\"). One ship of no more than 500 tons could be sent to one of these places each year (the *Navío de Permiso*) with general trade goods. One quarter of the profits were to be reserved for the King of Spain. There was provision for two extra sailings at the start of the contract. The Asiento was granted in the name of [Queen Anne](https:\/\/en.wikipedia.org\/wiki\/Anne,_Queen_of_Great_Britain \"Anne, Queen of Great Britain\") and then contracted to the company.[\\[16\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-17)\n\nBy July the company had arranged contracts with the [Royal African Company](https:\/\/en.wikipedia.org\/wiki\/Royal_African_Company \"Royal African Company\") to supply the African slaves to Jamaica. Ten pounds was paid for a slave aged over 16, £8 for one under 16 but over 10. Two-thirds were to be male, and 90 per cent adult. The company transported 1,230 slaves from Jamaica to America in the first year, plus any that might have been added (against standing instructions) by the ship's captains on their own behalf. On arrival of the first cargoes, the local authorities refused to accept the Asiento, which had still not been officially confirmed there by the Spanish authorities. The slaves were eventually sold at a loss in the West Indies.[\\[17\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-18)\n\nIn 1714 the government announced that a quarter of profits would be reserved for [Queen Anne](https:\/\/en.wikipedia.org\/wiki\/Anne,_Queen_of_Great_Britain \"Anne, Queen of Great Britain\") and a further 7.5 per cent for a financial adviser, Manasseh Gilligan. Some company board members refused to accept the contract on these terms, and the government was obliged to reverse its decision.[\\[18\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-19) Despite these setbacks, the company continued, having raised £200,000 to finance the operations. In 1714 2,680 slaves were carried, and for 1716–1717, 13,000 more, but the trade continued to be unprofitable. An import duty of 33 [pieces of eight](https:\/\/en.wikipedia.org\/wiki\/Pieces_of_eight \"Pieces of eight\") was charged on each slave (although for this purpose some slaves might be counted only as a fraction of a slave, depending on quality). One of the extra trade ships was sent to Cartagena in 1714 carrying woollen goods, despite warnings that there was no market for them there, and they remained unsold for two years.[\\[19\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-20)\n\nIt has been estimated that the company transported a little over 34,000 slaves with mortality comparable to its competitors, showing that slave trading was a significant part of the company's business and that it was carried out to the standards of the day.[\\[4\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-:0-5) Its trading activities offered a financial motive for investment in the company.[\\[4\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-:0-5)\n\n### Changes of management\n\\[[edit](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=edit&section=6 \"Edit section: Changes of management\")\\]\n\nThe company was dependent on the goodwill of the government; when the government changed, so too did the company board. In 1714 one of the directors who had been sponsored by Harley, Arthur Moore, had attempted to send 60 tons of private goods on board the company ship. He was dismissed as a director, but the result was the beginning of Harley's fall from favour with the company. On 27 July 1714, Harley was replaced as Lord High Treasurer as a result of a disagreement that had broken out within the Tory faction in Parliament. Queen Anne died on 1 August 1714 and at the election of directors in 1715 the Prince of Wales (the future King [George II](https:\/\/en.wikipedia.org\/wiki\/George_II_of_Great_Britain \"George II of Great Britain\")) was elected as governor of the company. The new King [George I](https:\/\/en.wikipedia.org\/wiki\/George_I_of_Great_Britain \"George I of Great Britain\") and the Prince of Wales both had large holdings in the company, as did some prominent Whig politicians, including [James Craggs the Elder](https:\/\/en.wikipedia.org\/wiki\/James_Craggs_the_Elder \"James Craggs the Elder\"), the [Earl of Halifax](https:\/\/en.wikipedia.org\/wiki\/Charles_Montagu,_1st_Earl_of_Halifax \"Charles Montagu, 1st Earl of Halifax\") and Sir [Joseph Jekyll](https:\/\/en.wikipedia.org\/wiki\/Joseph_Jekyll \"Joseph Jekyll\"). Craggs, as Postmaster General, was responsible for intercepting mail on behalf of the government to obtain political and financial information. All Tory politicians were removed from the board and replaced with businessmen. The Whigs Horatio Townshend, brother in law of [Robert Walpole](https:\/\/en.wikipedia.org\/wiki\/Robert_Walpole \"Robert Walpole\") and the [Duke of Argyll](https:\/\/en.wikipedia.org\/wiki\/John_Campbell,_2nd_Duke_of_Argyll \"John Campbell, 2nd Duke of Argyll\") were elected directors.\n\nThe change of government led to a revival of the company's share value, which had fallen below its issue price. The previous government had failed to make the interest payments to the company for the preceding two years, owing more than £1 million. The new administration insisted that the debt be written off, but allowed the company to issue new shares to stock holders to the value of the missed payments. At around £10 million, this now represented half the share capital issued in the entire country. In 1714 the company had 2,000 to 3,000 shareholders, more than either of its rivals.[\\[20\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-21)\n\nBy the time of the next directors' elections in 1718 a schism within the Whigs between Walpole's faction supporting the Prince of Wales and [James Stanhope](https:\/\/en.wikipedia.org\/wiki\/James_Stanhope,_1st_Earl_Stanhope \"James Stanhope, 1st Earl Stanhope\")'s supporting the King. Argyll and Townshend were dismissed as directors, as were the surviving Tories Sir Richard Hoare and George Pitt, and King George I became governor. Four MPs remained directors, as did six people holding government financial offices. The Sword Blade Company remained bankers to the South Sea and had flourished despite the company's dubious legal position. Blunt and Sawbridge remained South Sea directors, and they had been joined by Gibbon and Child. Caswall had retired as a South Sea director to concentrate on the Sword Blade business. In November 1718 Sub-Governor Bateman and Deputy Governor Shepheard both died. Leaving aside the honorary position of Governor, this left the company suddenly without its two most senior and experienced directors. They were replaced by [Sir John Fellowes](https:\/\/en.wikipedia.org\/wiki\/Sir_John_Fellowes \"Sir John Fellowes\") as Sub-Governor and Charles Joye as Deputy.[\\[21\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-22)\n\n### War\n\\[[edit](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=edit&section=7 \"Edit section: War\")\\]\n\nIn 1718 war broke out with Spain once again, in the [War of the Quadruple Alliance](https:\/\/en.wikipedia.org\/wiki\/War_of_the_Quadruple_Alliance \"War of the Quadruple Alliance\"). The company's assets in South America were seized, at a cost claimed by the company to be £300,000. Any prospect of profit from trade, for which the company had purchased ships and had been planning its next ventures, disappeared.[\\[22\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-23)\n\n## Refinancing government debt\n\\[[edit](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=edit&section=8 \"Edit section: Refinancing government debt\")\\]\n\nEvents in France now came to influence the future of the company. A Scottish economist and financier, [John Law](https:\/\/en.wikipedia.org\/wiki\/John_Law_\\(economist\\) \"John Law (economist)\"), exiled after killing a man in a duel, had travelled around Europe before settling in France. There he founded a bank, which in December 1718 became the Banque Royale, national bank of France, while Law himself was granted sweeping powers to control the economy of France, which operated largely by royal decree. Law's remarkable success was known in financial circles throughout Europe, and came to inspire Blunt and his associates to make greater efforts to grow their own concerns.[\\[23\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-24)\n\nIn February 1719 Craggs explained to the House of Commons a new scheme for improving the national debt by converting the annuities issued after the 1710 lottery into South Sea stock. By an act of Parliament, the [National Debt Act 1719](https:\/\/en.wikipedia.org\/w\/index.php?title=National_Debt_Act_1719&action=edit&redlink=1 \"National Debt Act 1719 (page does not exist)\") ([6 Geo. 1](https:\/\/en.wikipedia.org\/wiki\/6_Geo._1 \"6 Geo. 1\"). c. 4), the company was granted the right to issue £1,150 of new stock for every £100 per annum of annuity which was surrendered. The government would pay 5 per cent per annum on the stock created, which would halve their annual bill. The conversion was voluntary, amounting to £2.5 million new stock if all converted. The company was to make an additional new loan to the government pro rata up to £750,000, again at 5 per cent.[\\[24\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-25)\n\nIn March there was an abortive attempt to restore the Old Pretender, [James Edward Stuart](https:\/\/en.wikipedia.org\/wiki\/James_Edward_Stuart \"James Edward Stuart\"), to the throne of Britain, with a small landing of troops in Scotland. They were defeated at the [Battle of Glen Shiel](https:\/\/en.wikipedia.org\/wiki\/Battle_of_Glen_Shiel \"Battle of Glen Shiel\") on 10 June. The South Sea company presented the offer to the public in July 1719. The Sword Blade company spread a rumour that the Pretender had been captured, and the general euphoria induced the South Sea share price to rise from £100, where it had been in the spring, to £114. Annuitants were still paid out at the same money value of shares, the company keeping the profit from the rise in value before issuing. About two-thirds of the annuities were exchanged.\n\n### Trading more debt for equity\n\\[[edit](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=edit&section=9 \"Edit section: Trading more debt for equity\")\\]\n\n[![](https:\/\/upload.wikimedia.org\/wikipedia\/commons\/thumb\/1\/17\/William_Hogarth_-_The_South_Sea_Scheme.png\/500px-William_Hogarth_-_The_South_Sea_Scheme.png)](https:\/\/en.wikipedia.org\/wiki\/File:William_Hogarth_-_The_South_Sea_Scheme.png)\n\n[William Hogarth](https:\/\/en.wikipedia.org\/wiki\/William_Hogarth \"William Hogarth\"), *[Emblematical Print on the South Sea Scheme](https:\/\/en.wikipedia.org\/wiki\/Emblematical_Print_on_the_South_Sea_Scheme \"Emblematical Print on the South Sea Scheme\")* (1721). In the bottom left corner are Protestant, Catholic, and Jewish figures gambling, while in the middle there is a huge machine, like a merry-go-round, which people are boarding. At the top is a goat, written below which is \"Who'l Ride\". The people are scattered around the picture with a sense of disorder, while the progress of the well-dressed people towards the ride in the middle represents the foolishness of the crowd in buying stock in the South Sea Company, which spent more time issuing stock than anything else. Honor at left is dismembered; Honesty in center is [broken on the wheel](https:\/\/en.wikipedia.org\/wiki\/Broken_on_the_wheel \"Broken on the wheel\") and at lower right trade lies dead.\n\nThe 1719 scheme was a distinct success for the government and they sought to repeat it. Negotiations took place between Aislabie and Craggs for the government and Blunt, Cashier Knight and his assistant and Caswell. Janssen, the Sub Governor and Deputy Governor were also consulted but negotiations remained secret from most of the company. News from France was of fortunes being made investing in Law's bank, whose shares had risen sharply. Money was moving around Europe, and other flotations threatened to soak up capital (two insurance schemes in December 1719 each sought to raise £3 million).[\\[25\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-26)\n\nPlans were made for a new scheme to take over most of the unconsolidated national debt of Britain (£30,981,712) in exchange for company shares. Annuities were valued as a lump sum necessary to produce the annual income over the original term at an assumed interest of 5 per cent, which favoured those with shorter terms still to run. The government agreed to pay the same amount to the company for all the fixed-term repayable debt as it had been paying before, but after seven years the 5 per cent interest rate would fall to 4 per cent on the new annuity debt and also that assumed previously. After the first year, the company was to give the government £3 million in four quarterly instalments. New stock would be created at a face value equal to the debt, but the share price was still rising and sales of the remaining stock, i.e. the excess of the total market value of the stock over the amount of the debt, would be used to raise the government fee plus a profit for the company. The more the price rose in advance of conversion, the more the company would make. Before the scheme, payments were costing the government £1.5 million per year.[\\[26\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-auto-27)\n\nIn summary, the total government debt in 1719 was £50 million:\n\n- £18.3m was held by three large corporations:\n  - £3.4m by the [Bank of England](https:\/\/en.wikipedia.org\/wiki\/Bank_of_England \"Bank of England\")\n  - £3.2m by the [British East India Company](https:\/\/en.wikipedia.org\/wiki\/British_East_India_Company \"British East India Company\")\n  - £11.7m by the South Sea Company\n- Privately held redeemable debt amounted to £16.5m\n- £15m consisted of irredeemable annuities, long-fixed-term annuities of 72–87 years, and short annuities of 22 years remaining to expiry.\n\nThe purpose of this conversion was similar to the old one, debt holders and annuitants might receive less return in total, but an illiquid investment was transformed into shares that could be readily traded. Shares backed by national debt were considered a safe investment and a convenient way to hold and move money, far easier and safer than metal coins. The only alternative safe asset, land, was much harder to sell and transfer of its ownership was legally much more complex.\n\nThe government received a cash payment and lower interest on the debt and gained control over when the debt had to be repaid, which was not before seven years but then at its discretion. This avoided the risk that debt might become repayable when the government needed to borrow more, and could be forced into paying higher interest rates. The payment to the government was to be used to buy any debt not subscribed to the scheme, which although it helped the government, also helped the company by removing possibly competing securities from the market, including large holdings by the Bank of England.[\\[26\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-auto-27)\n\nCompany stock was now trading at £123, so the issue amounted to an injection of £5 million of new money into a booming economy just as interest rates were falling. [Gross Domestic Product](https:\/\/en.wikipedia.org\/wiki\/Gross_Domestic_Product \"Gross Domestic Product\") (GDP) for Britain at this point was estimated as £64.4 million.[\\[27\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-28)\n\n#### Public announcement\n\\[[edit](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=edit&section=10 \"Edit section: Public announcement\")\\]\n\n[![](https:\/\/upload.wikimedia.org\/wikipedia\/commons\/thumb\/4\/49\/South_Sea_Annuities_share_certificate%2C_issued_November_13%2C_1784._On_display_at_the_British_Museum_in_London.jpg\/250px-South_Sea_Annuities_share_certificate%2C_issued_November_13%2C_1784._On_display_at_the_British_Museum_in_London.jpg)](https:\/\/en.wikipedia.org\/wiki\/File:South_Sea_Annuities_share_certificate,_issued_November_13,_1784._On_display_at_the_British_Museum_in_London.jpg)\n\nSouth Sea Annuities share certificate, issued 13 November 1784. On display at the British Museum in London\n\nOn 21 January the plan was presented to the board of the South Sea Company, and on 22 January [Chancellor of the Exchequer](https:\/\/en.wikipedia.org\/wiki\/Chancellor_of_the_Exchequer \"Chancellor of the Exchequer\") [John Aislabie](https:\/\/en.wikipedia.org\/wiki\/John_Aislabie \"John Aislabie\") presented it to Parliament. The House was stunned into silence but on recovering, proposed that the Bank of England should be invited to make a better offer. The South Sea increased its cash payment to £3.5 million, while the Bank proposed to undertake the conversion with a payment of £5.5 million and a fixed conversion price of £170 per £100 face-value Bank stock. On 1 February, the company negotiators led by Blunt raised their offer to £4 million plus a proportion of £3.5 million depending on how much of the debt was converted. They also agreed that the interest rate would decrease after four years instead of seven, and agreed to sell on behalf of the government £1 million of Exchequer bills (formerly handled by the Bank). The House accepted the South Sea offer and Bank stock fell sharply.[\\[28\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-29)\n\nPerhaps the first sign of difficulty came when the South Sea Company announced that its Christmas 1719 dividend would be deferred for 12 months. The company embarked on a show of gratitude to its friends. Select individuals were sold a parcel of company stock at the current price. The transactions were recorded by Knight in the names of intermediaries, but no payments were received and no stock issued – the company had none to issue until the conversion of debt began. The individual received an option to sell his stock back to the company at any date at whatever market price might then apply. Shares went to the Craggs: [the Elder](https:\/\/en.wikipedia.org\/wiki\/James_Craggs_the_Elder \"James Craggs the Elder\") and [the Younger](https:\/\/en.wikipedia.org\/wiki\/James_Craggs_the_Younger \"James Craggs the Younger\"); [Lord Gower](https:\/\/en.wikipedia.org\/wiki\/John_Leveson-Gower,_1st_Earl_Gower \"John Leveson-Gower, 1st Earl Gower\"); [Lord Lansdowne](https:\/\/en.wikipedia.org\/wiki\/George_Granville,_1st_Baron_Lansdowne \"George Granville, 1st Baron Lansdowne\"); and four other MPs. [Lord Sunderland](https:\/\/en.wikipedia.org\/wiki\/Charles_Spencer,_3rd_Earl_of_Sunderland \"Charles Spencer, 3rd Earl of Sunderland\") would gain £500 for every pound that stock rose; George I's mistress, their children and Countess Platen £120 per pound rise, Aislabie £200 per pound, [Lord Stanhope](https:\/\/en.wikipedia.org\/wiki\/James_Stanhope,_1st_Earl_Stanhope \"James Stanhope, 1st Earl Stanhope\") £600 per pound. Others invested money, including the [Richard Hampden](https:\/\/en.wikipedia.org\/wiki\/Richard_Hampden_\\(1674%E2%80%931728\\) \"Richard Hampden (1674–1728)\") the Treasurer to the Navy, who invested £25,000 of government money on his behalf.[\\[29\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-30)\n\nThe proposal was accepted in a slightly altered form in April 1720. Crucial in this conversion was the proportion of holders of irredeemable annuities who could be tempted to convert their securities at a high price for the new shares. (Holders of redeemable debt had no other choice but to subscribe.) The South Sea Company could set the conversion price but could not diverge much from the market price of its shares. The company ultimately acquired 85 per cent of the redeemables and 80 per cent of the irredeemables.\n\n### Inflating the share price\n\\[[edit](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=edit&section=11 \"Edit section: Inflating the share price\")\\]\n\n[![](https:\/\/upload.wikimedia.org\/wikipedia\/commons\/e\/ef\/South-sea-bubble-chart.png)](https:\/\/en.wikipedia.org\/wiki\/File:South-sea-bubble-chart.png)\n\nChart of company stock prices.\n\nThe company then set to talking up its stock with \"the most extravagant rumours\" of the value of its potential trade in the New World; this was followed by a wave of \"speculating frenzy\". The share price had risen from the time the scheme was proposed, from £128 in January 1720, to £175 in February, £330 in March and following the scheme's acceptance £550 at the end of May.[\\[30\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-31) What may have supported the company's high multiples (its [P\/E ratio](https:\/\/en.wikipedia.org\/wiki\/P\/E_ratio \"P\/E ratio\")) was a fund of credit (known to the market) of £70 million available for commercial expansion which had been made available through substantial support, apparently, by Parliament and the King.[\\[31\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-32)\n\nShares in the company were \"sold\" to politicians at the market price; rather than paying for the shares, these recipients simply held the shares, with the option of selling them back to the company at any time, receiving the increase in market price. This method, as well as winning over the heads of government, the King's mistress, *et al.*, had the advantage of binding their interests to the interests of the company, to secure profits, the stock needed to rise. By publicising the names of their elite stockholders, the company managed to clothe itself in an aura of legitimacy, which attracted and kept other buyers.[\\[32\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-33)\n\n### Bubble Act\n\\[[edit](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=edit&section=12 \"Edit section: Bubble Act\")\\]\n\nMain article: [Bubble Act](https:\/\/en.wikipedia.org\/wiki\/Bubble_Act \"Bubble Act\")\n\nThe South Sea Company was by no means the only company seeking to raise money from investors in 1720. A large number of other joint-stock companies, making extravagant (sometimes fraudulent) claims about foreign or other ventures or bizarre schemes, had been created. Others represented potentially sound, although novel, schemes, such as for founding insurance companies. These were nicknamed \"Bubbles\". Some of the companies had no legal basis, while others (such as the [Hollow Sword Blade Company](https:\/\/en.wikipedia.org\/wiki\/Hollow_Sword_Blade_Company \"Hollow Sword Blade Company\"), which acted as the South Sea Company's banker), used existing chartered companies for purposes different from those named at their creation. The York Buildings Company was set up to provide water to London, but was purchased by Case Billingsley who used it to purchase confiscated Jacobite estates in Scotland, which then formed the assets of an insurance company.[\\[33\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-auto1-34)\n\nOn 22 February 1720, John Hungerford raised the question of bubble companies in the House of Commons, and persuaded the House to set up a committee, which he chaired, to investigate. He identified a number of companies which between them sought to raise £40 million in capital. The committee investigated the companies, establishing a principle that companies should not be operating outside the objects specified in their charters. A potential embarrassment for the South Sea was avoided when the question of the Hollow Sword Blade Company arose. Difficulty was avoided by packing the committee with MPs who were supporters of the South Sea, and voting down by 75 to 25 the proposal to investigate the Hollow Sword. (At this time, committees of the House were either 'Open' or 'secret'. A secret committee was one with a fixed set of members who could vote on its proceedings. By contrast, any MP could join in with an 'open' committee and vote on its proceedings.) Stanhope, who was a member of the committee, received £50,000 of the 'resaleable' South Sea stock from Sawbridge, a director of the Hollow Sword, at about this time. Hungerford had previously been expelled from the Commons for accepting a bribe.[\\[33\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-auto1-34)\n\nAmongst the bubble companies investigated were two supported by Lords Onslow and Chetwynd respectively, for insuring shipping. These were severely criticised and the questionable dealings of the Attorney-General and Solicitor-General in trying to obtain charters for the companies led to both being replaced. The schemes had the support of [Walpole](https:\/\/en.wikipedia.org\/wiki\/Walpole \"Walpole\") and [Craggs](https:\/\/en.wikipedia.org\/wiki\/James_Craggs_the_Younger \"James Craggs the Younger\"), so that the larger part of the [Bubble Act 1720](https:\/\/en.wikipedia.org\/wiki\/Bubble_Act_1720 \"Bubble Act 1720\") ([6 Geo. 1](https:\/\/en.wikipedia.org\/wiki\/6_Geo._1 \"6 Geo. 1\"). c. 18) (which resulted in June 1720 from the committee's investigations) was devoted to creating charters for the [Royal Exchange Assurance Corporation](https:\/\/en.wikipedia.org\/wiki\/Royal_Exchange_Assurance_Corporation \"Royal Exchange Assurance Corporation\") or London Assurance Corporation. The companies were required to pay £300,000 for the privilege. The act required that a joint stock company could be incorporated only by act of Parliament or [royal charter](https:\/\/en.wikipedia.org\/wiki\/Royal_charter \"Royal charter\"). The prohibition on unauthorised joint stock ventures was not repealed until 1825.[\\[34\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-35) The passing of the act gave a boost to the South Sea Company, its shares leaping to £890 in early June. This peak encouraged people to sell; to counterbalance this the company's directors ordered their agents to buy, which succeeded in propping the price up at around £750.\n\n### Top reached\n\\[[edit](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=edit&section=13 \"Edit section: Top reached\")\\]\n\n[![](https:\/\/upload.wikimedia.org\/wikipedia\/commons\/thumb\/2\/2d\/South_Sea_Bubble_Cards-Tree.png\/250px-South_Sea_Bubble_Cards-Tree.png)](https:\/\/en.wikipedia.org\/wiki\/File:South_Sea_Bubble_Cards-Tree.png)\n\nTree caricature from Bubble Cards.\n\nThe price of the stock went up over the course of a year from about £100 to almost £1,000 per share. Its success caused a national frenzy—[herd behaviour](https:\/\/en.wikipedia.org\/wiki\/Herd_behaviour \"Herd behaviour\")[\\[6\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-:1-7)—as all types of people, from peasants to lords, developed a feverish interest in investing, in South Seas primarily but in stocks generally. One famous apocryphal story is of a company that went public in 1720 as \"a company for carrying out an undertaking of great advantage, but nobody to know what it is\".[\\[35\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-36)\n\nThe price finally reached £1,000 in early August 1720, and the level of selling was such that the price started to fall, dropping back to £100 per share before the year was out.[\\[36\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-37) This triggered [bankruptcies](https:\/\/en.wikipedia.org\/wiki\/Bankruptcies \"Bankruptcies\") amongst those who had bought on credit, and increased sales, including [short selling](https:\/\/en.wikipedia.org\/wiki\/Short_selling \"Short selling\")\\[*[citation needed](https:\/\/en.wikipedia.org\/wiki\/Wikipedia:Citation_needed \"Wikipedia:Citation needed\")*\\] (i.e., selling borrowed shares in the hope of buying them back at a profit if the price fell). In August 1720, the first of the instalment payments of the first and second money subscriptions on new issues of South Sea stock were due. Earlier in the year John Blunt had come up with an idea to prop up the share price, the company would lend people money to buy its shares. As a result, many shareholders could not pay for their shares except by selling them.\\[*[citation needed](https:\/\/en.wikipedia.org\/wiki\/Wikipedia:Citation_needed \"Wikipedia:Citation needed\")*\\] A scramble for liquidity appeared internationally as \"bubbles\" were also ending in Amsterdam and Paris. The collapse coincided with the fall of the [Mississippi Company](https:\/\/en.wikipedia.org\/wiki\/Mississippi_Company \"Mississippi Company\") of [John Law](https:\/\/en.wikipedia.org\/wiki\/John_Law_\\(economist\\) \"John Law (economist)\") in France and the price of South Sea shares began to decline.\\[*[citation needed](https:\/\/en.wikipedia.org\/wiki\/Wikipedia:Citation_needed \"Wikipedia:Citation needed\")*\\]\n\n### Recriminations\n\\[[edit](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=edit&section=14 \"Edit section: Recriminations\")\\]\n\nBy the end of September the stock had fallen to £150. Company failures now extended to [banks](https:\/\/en.wikipedia.org\/wiki\/Bank \"Bank\") and [goldsmiths](https:\/\/en.wikipedia.org\/wiki\/Goldsmith \"Goldsmith\"), as they could not collect loans made on the stock, and thousands of individuals were ruined, including many members of the upper class. With investors outraged, [Parliament](https:\/\/en.wikipedia.org\/wiki\/Parliament_of_the_United_Kingdom \"Parliament of the United Kingdom\") was recalled in December and an investigation began. Reporting in 1721, it revealed widespread [fraud](https:\/\/en.wikipedia.org\/wiki\/Fraud \"Fraud\") amongst the company directors and corruption in the Cabinet. Among those implicated were [John Aislabie](https:\/\/en.wikipedia.org\/wiki\/John_Aislabie \"John Aislabie\") (the Chancellor of the Exchequer), James Craggs the Elder (the [Postmaster General](https:\/\/en.wikipedia.org\/wiki\/Postmaster_General_of_the_United_Kingdom \"Postmaster General of the United Kingdom\")), [James Craggs the Younger](https:\/\/en.wikipedia.org\/wiki\/James_Craggs_the_Younger \"James Craggs the Younger\") (the [Southern Secretary](https:\/\/en.wikipedia.org\/wiki\/Southern_Secretary \"Southern Secretary\")), and even [Lord Stanhope](https:\/\/en.wikipedia.org\/wiki\/James_Stanhope,_1st_Earl_Stanhope \"James Stanhope, 1st Earl Stanhope\") and [Lord Sunderland](https:\/\/en.wikipedia.org\/wiki\/Charles_Spencer,_3rd_Earl_of_Sunderland \"Charles Spencer, 3rd Earl of Sunderland\") (the heads of the Ministry). Craggs the Elder and Craggs the Younger died in disgrace; the remainder were [impeached](https:\/\/en.wikipedia.org\/wiki\/Impeachment_in_the_United_Kingdom \"Impeachment in the United Kingdom\") for their corruption. The Commons found Aislabie guilty of the \"most notorious, dangerous and infamous corruption\" and he was imprisoned.\\[*[citation needed](https:\/\/en.wikipedia.org\/wiki\/Wikipedia:Citation_needed \"Wikipedia:Citation needed\")*\\] The corruption around the South Sea bubble was the impetus for the writing and publication of [Cato's Letters](https:\/\/en.wikipedia.org\/wiki\/Cato%27s_Letters \"Cato's Letters\") which became an important work first for the [Radical Whigs](https:\/\/en.wikipedia.org\/wiki\/Radical_Whigs \"Radical Whigs\") and then into the [libertarian](https:\/\/en.wikipedia.org\/wiki\/Libertarian \"Libertarian\") ideology of the [American Revolution](https:\/\/en.wikipedia.org\/wiki\/American_Revolution \"American Revolution\").[\\[37\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-38)\n\nThe new [First Lord of the Treasury](https:\/\/en.wikipedia.org\/wiki\/First_Lord_of_the_Treasury \"First Lord of the Treasury\"), [Robert Walpole](https:\/\/en.wikipedia.org\/wiki\/Robert_Walpole \"Robert Walpole\"), restored public confidence in the financial system. Public opinion, as shaped by the many prominent men who lost money, demanded revenge. Walpole supervised the process, which removed all 33 of the company directors and stripped them of, on average, 82 per cent of their wealth. The money went to the victims and the stock of the South Sea Company was divided between the Bank of England and the East India Company. Walpole made sure that King George and his mistresses were protected, and by a margin of three votes he managed to save several key government officials from impeachment. In the process, Walpole won plaudits as the saviour of the financial system while establishing himself as the dominant figure in British politics; historians credit him for rescuing the Whig government and the Hanoverian dynasty from disgrace.[\\[38\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-39)[\\[39\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-40)[\\[40\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-41)\n\n### Quotations prompted by the collapse\n\\[[edit](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=edit&section=15 \"Edit section: Quotations prompted by the collapse\")\\]\n\nJoseph Spence wrote that [Lord Radnor](https:\/\/en.wikipedia.org\/wiki\/Earl_of_Radnor \"Earl of Radnor\") reported to him \"When Sir [Isaac Newton](https:\/\/en.wikipedia.org\/wiki\/Isaac_Newton \"Isaac Newton\") was asked about the continuance of the rising of South Sea stock ... He answered 'that he could not calculate the madness of people'\".[\\[41\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-42) He is also quoted, \"I can calculate the movement of the stars, but not the madness of men\".[\\[42\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-43) Newton owned nearly £22,000 in South Sea stock in 1722, but it is not known how much he lost, if anything.[\\[43\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-44) There are numerous sources stating he lost up to £20,000[\\[44\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-45) (equivalent to £4.21 million in 2025).[\\[45\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-inflation-UK-46)\n\n## A trading company\n\\[[edit](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=edit&section=16 \"Edit section: A trading company\")\\]\n\nThe South Sea Company was created in 1711 to reduce the size of public debts, but was granted the commercial privilege of exclusive rights of trade to the Spanish Indies, based on the treaty of commerce signed by Britain and the [Archduke Charles](https:\/\/en.wikipedia.org\/wiki\/Charles_VI,_Holy_Roman_Emperor \"Charles VI, Holy Roman Emperor\"), candidate to the Spanish throne during the [War of the Spanish Succession](https:\/\/en.wikipedia.org\/wiki\/War_of_the_Spanish_Succession \"War of the Spanish Succession\"). After [Philip V](https:\/\/en.wikipedia.org\/wiki\/Philip_V_of_Spain \"Philip V of Spain\") became the King of Spain, Britain obtained at the 1713 [Treaty of Utrecht](https:\/\/en.wikipedia.org\/wiki\/Treaty_of_Utrecht \"Treaty of Utrecht\") the rights to the slave trade to the Spanish Indies (or [Asiento de Negros](https:\/\/en.wikipedia.org\/wiki\/Asiento_de_Negros \"Asiento de Negros\")) for 30 years. Those rights were previously held by the Compagnie de Guinée et de l'Assiente du Royaume de la France.\n\nThe South Sea Company board opposed taking on the slave trade, which had shown little profitability when chartered companies had engaged in it. To increase the profitability, the Asiento contract included the right to send one yearly 500-ton ship to the fairs at Portobello and [Veracruz](https:\/\/en.wikipedia.org\/wiki\/Veracruz,_Veracruz \"Veracruz, Veracruz\") loaded with duty-free merchandises, called the *Navío de Permiso*. The Crown of England and the King of Spain were each entitled to 25% of the profits, according to the terms of the contract, that was a copy of the French Asiento contract, but [Queen Anne](https:\/\/en.wikipedia.org\/wiki\/Anne,_Queen_of_Great_Britain \"Anne, Queen of Great Britain\") soon renounced her share. The King of Spain did not receive any payments due to him, and this was one of the sources of contention between the Spanish Crown and the South Sea Company.\n\nAs was the case for previous holders of the Asiento, the Portuguese and the French, the profit was not in the slave trade but in the illegal contraband goods smuggled in the slave ships and in the annual ship. Those goods were sold at the Spanish colonies at a handsome price, for they were in high demand; and constituted unfair competition with taxed goods, proving a large drain on the Spanish Crown's trade income. The relationship between the South Sea Company and the Government of Spain was always bad, and worsened with time. The company complained of searches and seizures of goods, lack of profitability, and confiscation of properties during the wars between Britain and Spain of 1718–1723 and 1727–1729, during which the operations of the company were suspended. The Government of Spain complained of the illegal trade, failure of the company to present its accounts as stipulated by the contract, and non-payment of the King's share of the profits. These claims were a major cause of deteriorating relations between the two countries in 1738; and although the Prime Minister [Walpole](https:\/\/en.wikipedia.org\/wiki\/Walpole \"Walpole\") opposed war, there was strong support for it from the King, the House of Commons, and a faction in his own Cabinet. Walpole was able to negotiate a treaty with the King of Spain at the [Convention of Pardo](https:\/\/en.wikipedia.org\/wiki\/Convention_of_Pardo \"Convention of Pardo\") in January 1739 that stipulated that Spain would pay British merchants £95,000 in compensation for captures and seized goods, while the South Sea Company would pay the Spanish Crown £68,000 in due proceeds from the Asiento. The South Sea Company refused to pay those proceeds and the King of Spain retained payment of the compensation until payment from the South Sea Company could be secured. The break-up of relations between the South Sea Company and the Spanish Government was a prelude to the *[Guerra del Asiento](https:\/\/en.wikipedia.org\/wiki\/Guerra_del_Asiento \"Guerra del Asiento\")*, as the first [Royal Navy](https:\/\/en.wikipedia.org\/wiki\/Royal_Navy \"Royal Navy\") fleets departed in July 1739 for the Caribbean, prior to the declaration of war, which lasted from October 1739 until 1748. This war is known as the [War of Jenkins' Ear](https:\/\/en.wikipedia.org\/wiki\/War_of_Jenkins%27_Ear \"War of Jenkins' Ear\").[\\[46\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-47)[\\[47\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-48)[\\[48\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-49)\n\n### Slave trade under the Asiento\n\\[[edit](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=edit&section=17 \"Edit section: Slave trade under the Asiento\")\\]\n\nMain article: [Asiento de Negros](https:\/\/en.wikipedia.org\/wiki\/Asiento_de_Negros \"Asiento de Negros\")\n\n[![](https:\/\/upload.wikimedia.org\/wikipedia\/commons\/thumb\/d\/d7\/1713_Asiento_contract.png\/250px-1713_Asiento_contract.png)](https:\/\/en.wikipedia.org\/wiki\/File:1713_Asiento_contract.png)\n\nCover of the English translation of the Asiento contract signed by Britain and Spain in 1713 as part of the Utrecht treaty that ended the War of Spanish Succession. The contract granted exclusive rights to Britain to sell slaves in the Spanish Indies.\n\nUnder the [Treaty of Tordesillas](https:\/\/en.wikipedia.org\/wiki\/Treaty_of_Tordesillas \"Treaty of Tordesillas\"), Spain was the only European power that could not establish factories in Africa to purchase slaves. The slaves for Spanish America were provided by companies that were granted exclusive rights to their trade. This monopoly contract was called the slave Asiento. Between 1701 and 1713 the Asiento contract was granted to France. In 1711 Britain had created the South Sea Company to reduce debt and to trade with Spanish America, but that commerce was illegal without a permit from Spain, and the only existing permit was the Asiento for the slave trade, so at the [Treaty of Utrecht](https:\/\/en.wikipedia.org\/wiki\/Treaty_of_Utrecht \"Treaty of Utrecht\") in 1713 Britain obtained the transfer of the Asiento contract from French to British hands for the next 30 years.\n\nThe board of directors was reluctant to take on the slave trade, which was not an object of the company and had shown little profitability when carried out by chartered companies, but they finally agreed on 26 March 1714. The Asiento set a sale quota of 4,800 units of slaves per year. An adult male slave counted as one unit; females and children counted as fractions of a unit. Initially the slaves were provided by the [Royal African Company](https:\/\/en.wikipedia.org\/wiki\/Royal_African_Company \"Royal African Company\").\n\nThe South Sea Company established slave reception factories at [Cartagena, Colombia](https:\/\/en.wikipedia.org\/wiki\/Cartagena,_Colombia \"Cartagena, Colombia\"), [Veracruz](https:\/\/en.wikipedia.org\/wiki\/Veracruz,_Veracruz \"Veracruz, Veracruz\"), Mexico, Panama, [Portobello](https:\/\/en.wikipedia.org\/wiki\/Portobelo,_Col%C3%B3n \"Portobelo, Colón\"), [La Guaira](https:\/\/en.wikipedia.org\/wiki\/La_Guaira \"La Guaira\"), [Buenos Aires](https:\/\/en.wikipedia.org\/wiki\/Buenos_Aires \"Buenos Aires\"), [La Havana](https:\/\/en.wikipedia.org\/wiki\/La_Havana \"La Havana\") and [Santiago de Cuba](https:\/\/en.wikipedia.org\/wiki\/Santiago_de_Cuba \"Santiago de Cuba\"), and slave deposits at [Jamaica](https:\/\/en.wikipedia.org\/wiki\/Jamaica \"Jamaica\") and [Barbados](https:\/\/en.wikipedia.org\/wiki\/Barbados \"Barbados\"). Despite problems with speculation, the South Sea Company was relatively successful at [slave trading](https:\/\/en.wikipedia.org\/wiki\/Atlantic_slave_trade \"Atlantic slave trade\") and meeting its quota (it was unusual for other, similarly chartered companies to fulfill their quotas). According to records compiled by David Eltis and others, during the course of 96 voyages in 25 years, the South Sea Company purchased 34,000 slaves, of whom 30,000 survived the voyage across the Atlantic.[\\[49\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-50) (Thus about 11% of the slaves died on the voyage: a relatively low mortality rate for the [Middle Passage](https:\/\/en.wikipedia.org\/wiki\/Middle_Passage \"Middle Passage\").[\\[50\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-51)) The company persisted with the slave trade through two wars with Spain and the calamitous 1720 commercial [bubble](https:\/\/en.wikipedia.org\/wiki\/Economic_bubble \"Economic bubble\"). The company's slave trading peaked during 1725, five years after the bubble burst.[\\[51\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-52)\n\n### The annual ship\n\\[[edit](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=edit&section=18 \"Edit section: The annual ship\")\\]\n\nThe slave Asiento contract of 1713 granted a permit to send one vessel of 500 tons per year, loaded with duty-free merchandise to be sold at the fairs of [New Spain](https:\/\/en.wikipedia.org\/wiki\/New_Spain \"New Spain\"), [Cartagena](https:\/\/en.wikipedia.org\/wiki\/Cartagena,_Colombia \"Cartagena, Colombia\") and [Portobello](https:\/\/en.wikipedia.org\/wiki\/Portobelo,_Col%C3%B3n \"Portobelo, Colón\"). This was an unprecedented concession that broke two centuries of strict exclusion of foreign merchants from the Spanish Empire, although a quarter of the profit was to be paid to the Spanish Crown.[\\[52\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-53)\n\nThe first ship to head for the Americas, the *Royal Prince*, was scheduled for 1714 but was delayed until August 1716. In consideration of the three annual ships missed since the date of the Asiento, the permitted tonnage of the next ten ships was raised to 650.[\\[53\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-54) Only seven annual ships sailed during the Asiento, the last one being the *Royal Caroline* in 1732. The company's failure to produce accounts for all the annual ships but the first one, and lack of payment of the proceeds to the Spanish Crown from the profits for all the annual ships, resulted in no permits being granted after the *Royal Caroline* trip of 1732–1734.\n\nIn contrast to the \"legitimate\" trade in slaves, the regular trade of the annual ships generated healthy returns, in some case profits were over 100%.[\\[54\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-55) Accounts for the voyage of the *Royal Prince* were not presented until 1733, following continuous demands by Spanish officials. They reported profits of £43,607.[\\[55\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-56) Since the King of Spain was entitled to 25% of the profits, after deducting interest on a loan he claimed £8,678. The South Sea Company never paid the amount due for the first annual ship to the Spanish Crown, nor did it pay any amount for any of the other six trips.[\\[56\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-57): 341\n\n### Arctic whaling\n\\[[edit](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=edit&section=19 \"Edit section: Arctic whaling\")\\]\n\nMain article: [Whaling in the United Kingdom § The northern whale fishery](https:\/\/en.wikipedia.org\/wiki\/Whaling_in_the_United_Kingdom#The_northern_whale_fishery \"Whaling in the United Kingdom\")\n\nThe [Greenland Company](https:\/\/en.wikipedia.org\/w\/index.php?title=Greenland_Company&action=edit&redlink=1 \"Greenland Company (page does not exist)\") had been established by an act of Parliament, the [Greenland Trade Act 1692](https:\/\/en.wikipedia.org\/w\/index.php?title=Greenland_Trade_Act_1692&action=edit&redlink=1 \"Greenland Trade Act 1692 (page does not exist)\") ([4 Will. & Mar.](https:\/\/en.wikipedia.org\/wiki\/4_Will._%26_Mar. \"4 Will. & Mar.\") c. 17) in 1693 with the object of catching whales in the Arctic. The products of their \"whale-fishery\" were to be free of customs and other duties. Partly due to maritime disruption caused by wars with France, the Greenland Company failed financially within a few years. In 1722 Henry Elking published a proposal, directed at the governors of the South Sea Company, that they should resume the \"Greenland Trade\" and send ships to catch whales in the Arctic. He made very detailed suggestions about how the ships should be crewed and equipped.[\\[57\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-58)\n\nThe British Parliament confirmed that a British Arctic \"whale-fishery\" would continue to benefit from freedom from customs duties, and in 1724 the South Sea Company decided to commence whaling. They had 12 whale-ships built on the River Thames and these went to the Greenland seas in 1725. Further ships were built in later years, but the venture was not successful. There were hardly any experienced whalemen remaining in Britain, and the company had to engage Dutch and Danish whalemen for the key posts aboard their ships: for instance all commanding officers and harpooners were hired from the [North Frisian](https:\/\/en.wikipedia.org\/wiki\/North_Frisia \"North Frisia\") island of [Föhr](https:\/\/en.wikipedia.org\/wiki\/F%C3%B6hr \"Föhr\").[\\[58\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-59) Other costs were badly controlled and the catches remained disappointingly few, even though the company was sending up to 25 ships to [Davis Strait](https:\/\/en.wikipedia.org\/wiki\/Davis_Strait \"Davis Strait\") and the [Greenland](https:\/\/en.wikipedia.org\/wiki\/Greenland \"Greenland\") seas in some years. By 1732 the company had accumulated a net loss of £177,782 from their eight years of Arctic whaling.[\\[59\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-60)\n\nThe South Sea Company directors appealed to the British government for further support. Parliament had passed the [Greenland Fishery Act 1731](https:\/\/en.wikipedia.org\/w\/index.php?title=Greenland_Fishery_Act_1731&action=edit&redlink=1 \"Greenland Fishery Act 1731 (page does not exist)\") ([5 Geo. 2](https:\/\/en.wikipedia.org\/wiki\/5_Geo._2 \"5 Geo. 2\"). c. 28) in 1732 that extended the duty-free concessions for a further nine years. In 1733 the [Whale Fishery Act 1732](https:\/\/en.wikipedia.org\/w\/index.php?title=Whale_Fishery_Act_1732&action=edit&redlink=1 \"Whale Fishery Act 1732 (page does not exist)\") ([6 Geo. 2](https:\/\/en.wikipedia.org\/wiki\/6_Geo._2 \"6 Geo. 2\"). c. 33) was passed that also granted a government subsidy to British Arctic whalers, the first in a long series of such acts of Parliament that continued and modified the whaling subsidies throughout the 18th century. This, and the subsequent acts, required the whalers to meet conditions regarding the crewing and equipping of the whale-ships that closely resembled the conditions suggested by Elking in 1722.[\\[60\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-61) In spite of the extended duty-free concessions, and the prospect of real subsidies as well, the court and directors of the South Sea Company decided that they could not expect to make profits from Arctic whaling. They sent out no more whale-ships after the loss-making 1732 season.\n\n## Government debt after the Seven Years' War\n\\[[edit](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=edit&section=20 \"Edit section: Government debt after the Seven Years' War\")\\]\n\nThe company continued its trade (when not interrupted by war) until the end of the [Seven Years' War](https:\/\/en.wikipedia.org\/wiki\/Seven_Years%27_War \"Seven Years' War\") (1756–1763). However, its main function was always managing government debt, rather than trading with the Spanish colonies. The South Sea Company continued its management of part of the [national debt](https:\/\/en.wikipedia.org\/wiki\/National_debt \"National debt\") until it was disestablished in 1853, at which point the debt was reconsolidated. The debt was not paid off by the time of the [First World War](https:\/\/en.wikipedia.org\/wiki\/First_World_War \"First World War\"), at which point it was consolidated again, under terms that allowed the government to avoid repaying the principal.\n\n## Armorials\n\\[[edit](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=edit&section=21 \"Edit section: Armorials\")\\]\n\nThe armorials of the South Sea Company, according to a [grant of arms](https:\/\/en.wikipedia.org\/wiki\/Grant_of_arms \"Grant of arms\") dated 31 October 1711, were: *Azure, a globe whereon are represented the Straits of Magellan and Cape Horn all proper and in sinister chief point two herrings haurient in saltire argent crowned or, in a canton the united arms of Great Britain*. Crest: *A ship of three masts in full sail*. Supporters, dexter: *The emblematic figure of Britannia, with the shield, lance etc all proper*; sinister: *A fisherman completely clothed, with cap boots fishing net etc and in his hand a string of fish, all proper*.[\\[61\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-62)\n\n## Officers of the South Sea Company\n\\[[edit](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=edit&section=22 \"Edit section: Officers of the South Sea Company\")\\]\n\n| South Sea Company Act 1753 |   |\n|---|---|\n| Act of Parliament |   |\n| [![coat of arms](https:\/\/upload.wikimedia.org\/wikipedia\/commons\/thumb\/3\/30\/Coat_of_arms_of_Great_Britain_%281714%E2%80%931801%29.svg\/250px-Coat_of_arms_of_Great_Britain_%281714%E2%80%931801%29.svg.png)](https:\/\/en.wikipedia.org\/wiki\/File:Coat_of_arms_of_Great_Britain_\\(1714%E2%80%931801\\).svg)[Parliament of Great Britain](https:\/\/en.wikipedia.org\/wiki\/Parliament_of_Great_Britain \"Parliament of Great Britain\") |   |\n| [Long title](https:\/\/en.wikipedia.org\/wiki\/Short_and_long_titles \"Short and long titles\") | An Act for reducing the Number of Directors of the Corporation of the Governor and Company of Merchants of Great Britain trading to The South-Seas and other Parts of America; and for encouraging the Fishery; and for regulating the Election of the Governors and Directors of the said Company. |\n| [Citation](https:\/\/en.wikipedia.org\/wiki\/Citation_of_United_Kingdom_legislation \"Citation of United Kingdom legislation\") | [26 Geo. 2](https:\/\/en.wikipedia.org\/wiki\/26_Geo._2 \"26 Geo. 2\"). c. 16 |\n| Territorial extent | [Great Britain](https:\/\/en.wikipedia.org\/wiki\/Great_Britain \"Great Britain\") |\n| Dates |   |\n| [Royal assent](https:\/\/en.wikipedia.org\/wiki\/Royal_assent \"Royal assent\") | 15 May 1753 |\n| [Commencement](https:\/\/en.wikipedia.org\/wiki\/Coming_into_force \"Coming into force\") | 11 January 1753[\\[b\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-63) |\n| Repealed | 15 July 1867 |\n| Other legislation |   |\n| [Repealed by](https:\/\/en.wikipedia.org\/wiki\/Repeal \"Repeal\") | [Statute Law Revision Act 1867](https:\/\/en.wikipedia.org\/wiki\/Statute_Law_Revision_Act_1867 \"Statute Law Revision Act 1867\") |\n| Status: Repealed |   |\n| [Text of statute as originally enacted](https:\/\/books.google.co.uk\/books?id=a7wuAAAAIAAJ&pg=PA42) |   |\n\nThe South Sea Company had a governor (generally an honorary position), a subgovernor, a deputy governor and 30 directors – reduced by the **South Sea Company Act 1753** ([26 Geo. 2](https:\/\/en.wikipedia.org\/wiki\/26_Geo._2 \"26 Geo. 2\"). c. 16) to 21 directors.[\\[62\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-64)\n\n| Year | Governor | Subgovernor | Deputy governor |\n|---|---|---|---|\n| July 1711 | [Robert Harley, 1st Earl of Oxford](https:\/\/en.wikipedia.org\/wiki\/Robert_Harley,_1st_Earl_of_Oxford \"Robert Harley, 1st Earl of Oxford\") | Sir James Bateman | [Samuel Ongley](https:\/\/en.wikipedia.org\/wiki\/Samuel_Ongley_\\(died_1726\\) \"Samuel Ongley (died 1726)\") |\n| August 1712 | [Sir Ambrose Crowley](https:\/\/en.wikipedia.org\/wiki\/Ambrose_Crowley \"Ambrose Crowley\") |   |   |\n| October 1713 | [Samuel Shepheard](https:\/\/en.wikipedia.org\/wiki\/Samuel_Shepheard_\\(died_1719\\) \"Samuel Shepheard (died 1719)\") |   |   |\n| February 1715 | [George, Prince of Wales](https:\/\/en.wikipedia.org\/wiki\/George_II_of_Great_Britain \"George II of Great Britain\") |   |   |\n| February 1718 | [King George I](https:\/\/en.wikipedia.org\/wiki\/George_I_of_Great_Britain \"George I of Great Britain\") |   |   |\n| November 1718 | John Fellows |   |   |\n| February 1719 | [Charles Joye](https:\/\/en.wikipedia.org\/w\/index.php?title=Charles_Joye&action=edit&redlink=1 \"Charles Joye (page does not exist)\") |   |   |\n| February 1721 | [Sir John Eyles, Bt](https:\/\/en.wikipedia.org\/wiki\/Sir_John_Eyles,_2nd_Baronet \"Sir John Eyles, 2nd Baronet\") | John Rudge |   |\n| July 1727 | [King George II](https:\/\/en.wikipedia.org\/wiki\/George_II_of_Great_Britain \"George II of Great Britain\") |   |   |\n| February 1730 | [John Hanbury](https:\/\/en.wikipedia.org\/wiki\/John_Hanbury_\\(1664%E2%80%931734\\) \"John Hanbury (1664–1734)\") |   |   |\n| February 1733 | [Sir Richard Hopkins](https:\/\/en.wikipedia.org\/wiki\/Richard_Hopkins_\\(died_1736\\) \"Richard Hopkins (died 1736)\") | [John Bristow](https:\/\/en.wikipedia.org\/wiki\/John_Bristow \"John Bristow\") |   |\n| February 1735 | [Peter Burrell](https:\/\/en.wikipedia.org\/wiki\/Peter_Burrell_\\(1692%E2%80%931756\\) \"Peter Burrell (1692–1756)\") |   |   |\n| March 1756 | [John Bristow](https:\/\/en.wikipedia.org\/wiki\/John_Bristow \"John Bristow\") | [John Philipson](https:\/\/en.wikipedia.org\/w\/index.php?title=John_Philipson&action=edit&redlink=1 \"John Philipson (page does not exist)\") |   |\n| February 1756 | Lewis Way |   |   |\n| January 1760 | [King George III](https:\/\/en.wikipedia.org\/wiki\/King_George_III \"King George III\") |   |   |\n| February 1763 | Lewis Way | Richard Jackson |   |\n| March 1768 | [Thomas Coventry](https:\/\/en.wikipedia.org\/wiki\/Thomas_Coventry_\\(died_1797\\) \"Thomas Coventry (died 1797)\") |   |   |\n| January 1771 | [Thomas Coventry](https:\/\/en.wikipedia.org\/wiki\/Thomas_Coventry_\\(politician\\) \"Thomas Coventry (politician)\") | vacant (?) |   |\n| January 1772 | John Warde |   |   |\n| March 1775 | [Samuel Salt](https:\/\/en.wikipedia.org\/wiki\/Samuel_Salt \"Samuel Salt\") |   |   |\n| January 1793 | [Benjamin Way](https:\/\/en.wikipedia.org\/wiki\/Benjamin_Way \"Benjamin Way\") | [Robert Dorrell](https:\/\/en.wikipedia.org\/w\/index.php?title=Robert_Dorrell&action=edit&redlink=1 \"Robert Dorrell (page does not exist)\") |   |\n| February 1802 | [Peter Pierson](https:\/\/en.wikipedia.org\/w\/index.php?title=Peter_Pierson&action=edit&redlink=1 \"Peter Pierson (page does not exist)\") |   |   |\n| February 1808 | [Charles Bosanquet](https:\/\/en.wikipedia.org\/wiki\/Charles_Bosanquet \"Charles Bosanquet\") | Benjamin Harrison |   |\n| 1820 | [King George IV](https:\/\/en.wikipedia.org\/wiki\/King_George_IV \"King George IV\") |   |   |\n| January 1826 | Sir Robert Baker |   |   |\n| 1830 | [King William IV](https:\/\/en.wikipedia.org\/wiki\/King_William_IV \"King William IV\") |   |   |\n| July 1837 | [Queen Victoria](https:\/\/en.wikipedia.org\/wiki\/Queen_Victoria \"Queen Victoria\") |   |   |\n| January 1838 | Charles Franks | [Thomas Vigne](https:\/\/en.wikipedia.org\/wiki\/Thomas_Vigne \"Thomas Vigne\") |   |\n\n|   |   |\n|---|---|\n| ![](https:\/\/upload.wikimedia.org\/wikipedia\/en\/thumb\/1\/1d\/Information_icon4.svg\/20px-Information_icon4.svg.png) | This list is [incomplete](https:\/\/en.wikipedia.org\/wiki\/Wikipedia:WikiProject_Lists#Incomplete_lists \"Wikipedia:WikiProject Lists\"); you can help by [adding missing items](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=edit). *(January 2010)* |\n\n## In fiction\n\\[[edit](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=edit&section=23 \"Edit section: In fiction\")\\]\n\n- [David Liss](https:\/\/en.wikipedia.org\/wiki\/David_Liss \"David Liss\")' historical-mystery novel *[A Conspiracy of Paper](https:\/\/en.wikipedia.org\/wiki\/A_Conspiracy_of_Paper \"A Conspiracy of Paper\")*, set in 1720 London, is focused on the South Sea Company at the top of its power, its fierce rivalry with the [Bank of England](https:\/\/en.wikipedia.org\/wiki\/Bank_of_England \"Bank of England\") and the events leading up to the collapse of the \"bubble\".\n- [Charles Lamb](https:\/\/en.wikipedia.org\/wiki\/Charles_Lamb \"Charles Lamb\")'s essay *The South-Sea House* (1820) in *[Essays of Elia](https:\/\/en.wikipedia.org\/wiki\/Essays_of_Elia \"Essays of Elia\")* – Lamb once worked in the South Sea House, and adopted his pseudonym (Elia) from a coworker there.\n- [Charles Dickens](https:\/\/en.wikipedia.org\/wiki\/Charles_Dickens \"Charles Dickens\") novels are littered with stock-market speculations, villains, swindlers and fictional speculators:\n  - *[Nicholas Nickleby](https:\/\/en.wikipedia.org\/wiki\/Nicholas_Nickleby \"Nicholas Nickleby\")* (1839) – Ralph Nickleby's great Joint Stock Company, United Metropolitan Improved Hot Muffin and Crumpet Baking and Punctual Delivery Company.\n  - *[Martin Chuzzlewit](https:\/\/en.wikipedia.org\/wiki\/Martin_Chuzzlewit \"Martin Chuzzlewit\")* (1844) – Anglo-Bengalee Disinterested Loan and Life Company, modelled loosely on the South Sea Bubble, is in essence a classic [Ponzi scheme](https:\/\/en.wikipedia.org\/wiki\/Ponzi_scheme \"Ponzi scheme\").\n  - *[David Copperfield](https:\/\/en.wikipedia.org\/wiki\/David_Copperfield \"David Copperfield\")* (1850) – The false accounting by the sycophant Uriah Heep, clerk to lawyer Mr Wickfield.\n  - *[Little Dorrit](https:\/\/en.wikipedia.org\/wiki\/Little_Dorrit \"Little Dorrit\")* (1857) – The financial house of Mr Merdle.\n- [Robert Goddard](https:\/\/en.wikipedia.org\/wiki\/Robert_Goddard_\\(novelist\\) \"Robert Goddard (novelist)\")'s novel *Sea Change* (2000) covers the aftermath of the \"bubble\" and the attempts by politicians to evade responsibility and prevent a [Jacobite](https:\/\/en.wikipedia.org\/wiki\/Jacobitism \"Jacobitism\") restoration.\n\n## See also\n\\[[edit](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=edit&section=24 \"Edit section: See also\")\\]\n\n- [List of stock market crashes and bear markets](https:\/\/en.wikipedia.org\/wiki\/List_of_stock_market_crashes_and_bear_markets \"List of stock market crashes and bear markets\")\n- [SSC coinage](https:\/\/en.wikipedia.org\/wiki\/SSC_coinage \"SSC coinage\")\n- [Tulip mania](https:\/\/en.wikipedia.org\/wiki\/Tulip_mania \"Tulip mania\")\n- [History of company law in the United Kingdom](https:\/\/en.wikipedia.org\/wiki\/History_of_company_law_in_the_United_Kingdom \"History of company law in the United Kingdom\")\n- [Whaling in the United Kingdom](https:\/\/en.wikipedia.org\/wiki\/Whaling_in_the_United_Kingdom \"Whaling in the United Kingdom\")\n- [Mississippi Bubble](https:\/\/en.wikipedia.org\/wiki\/Mississippi_Bubble \"Mississippi Bubble\")\n- [Buttonwood Agreement](https:\/\/en.wikipedia.org\/wiki\/Buttonwood_Agreement \"Buttonwood Agreement\") USA 1792\n- [Bern banking crisis of 1720](https:\/\/en.wikipedia.org\/wiki\/Bern_banking_crisis_of_1720 \"Bern banking crisis of 1720\")\n\n## Notes\n\\[[edit](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=edit&section=25 \"Edit section: Notes\")\\]\n\n1. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-3)** alternatively **The Governor and Company of the merchants of Great Britain, trading to the South Seas and other parts of America, and for the encouragement of fishing**\n2. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-63)** Start of session.\n\n## References\n\\[[edit](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=edit&section=26 \"Edit section: References\")\\]\n\n1. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-1)** Thornbury, Walter, *Old and New London*, vol. 1, p. 538\n2. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-2)**\n   [\"Cloth Seal, Company, 1711–1853, South Seas & Fisheries\"](http:\/\/www.bagseals.org\/gallery\/main.php?g2_itemId=3246). *www.bagseals.org*.\n3. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-4)** *Journals of the House of Commons*, volume 16: 1708–1711, p. 685.\n4. ^ [***a***](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-:0_5-0) [***b***](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-:0_5-1) [***c***](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-:0_5-2)\n   Paul, Helen (2009). [\"The South Sea Company's slaving activities\"](https:\/\/www.southampton.ac.uk\/assets\/imported\/transforms\/content-block\/UsefulDownloads_Download\/326F907A8F434B05B2199578407AA4B6\/0924.pdf) (PDF). *Discussion Papers in Economics and Econometrics*. [ISSN](https:\/\/en.wikipedia.org\/wiki\/ISSN_\\(identifier\\) \"ISSN (identifier)\") [0966-4246](https:\/\/search.worldcat.org\/issn\/0966-4246).\n5. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-6)** Marshall, Dorothy (1962). *Eighteenth Century England*, pp. 121–130.\n6. ^ [***a***](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-:1_7-0) [***b***](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-:1_7-1)\n   Paul, Helen J. (2013). *The South Sea Bubble: an economic history of its origins and consequences*. London: Routledge. [ISBN](https:\/\/en.wikipedia.org\/wiki\/ISBN_\\(identifier\\) \"ISBN (identifier)\")\n   \n   [978-0-415-70839-5](https:\/\/en.wikipedia.org\/wiki\/Special:BookSources\/978-0-415-70839-5 \"Special:BookSources\/978-0-415-70839-5\")\n   \n   . [OCLC](https:\/\/en.wikipedia.org\/wiki\/OCLC_\\(identifier\\) \"OCLC (identifier)\") [925312648](https:\/\/search.worldcat.org\/oclc\/925312648).\n7. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-8)** Thornbury, Walter. \"Threadneedle Street\". [*Old and New London*](http:\/\/www.british-history.ac.uk\/old-new-london\/vol1\/pp531-544). Volume 1 (London, 1878). pp. 531–544 – via British History Online. Accessed 21 July 2016.\n8. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-9)** Carswell, pp. 40, 48–50\n9. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-10)** Carswell, pp. 50–51\n10. ^ [***a***](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-auto2_11-0) [***b***](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-auto2_11-1) Carswell, pp. 52–54\n11. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-12)** Carswell, pp. 54–55\n12. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-13)** Defoe, Daniel, *An Essay on the South-Sea Trade* ... , 2nd ed., (London, England: J. Baker, 1712), [pp. 40–41.](https:\/\/books.google.com\/books?id=NZ5VAAAAcAAJ&pg=PA40)\n13. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-14)** Carswell, p. 56\n14. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-15)** Carswell, pp. 57, 58\n15. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-16)** Carswell, pp. 60–63\n16. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-17)** Carswell, pp. 64–66\n17. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-18)** Carswell, pp. 65–66\n18. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-19)** Carswell, p. 67\n19. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-20)** Carswell, pp. 66–67\n20. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-21)** Carswell, pp. 67–70\n21. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-22)** Carswell, pp. 73–75\n22. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-23)** Carswell, pp. 75–76\n23. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-24)** Carswell, pp. 88–89\n24. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-25)** Carswell, pp. 89–90\n25. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-26)** Carswell, pp. 100–102\n26. ^ [***a***](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-auto_27-0) [***b***](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-auto_27-1) Carswell, pp. 102–107\n27. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-28)**\n    [\"UK Budget Pie Chart for 2010 – Charts\"](https:\/\/web.archive.org\/web\/20110728044409\/http:\/\/www.ukpublicspending.co.uk\/budget_pie_ukgs.php?span=ukgs302&year=1717&view=1&expand=&units=b&fy=2010&state=UK). Archived from [the original](http:\/\/www.ukpublicspending.co.uk\/budget_pie_ukgs.php?span=ukgs302&year=1717&view=1&expand=&units=b&fy=2010&state=UK#ukgs302) on 28 July 2011.\n28. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-29)** Carswell, pp. 112–113\n29. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-30)** Carswell, pp. 114–118\n30. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-31)** Cowles, ch. II, IV (esp. pp. 151, 168–169 for share prices)\n31. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-32)** Cowles, ch. IV\n32. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-33)** Cowles, chapter IV (esp. p. 146 for \"bribe shares\")\n33. ^ [***a***](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-auto1_34-0) [***b***](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-auto1_34-1) Carswell, pp. 116–117\n34. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-35)** Carswell, pp. 138–140\n35. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-36)**\n    Odlyzko, Andrew. [\"An undertaking of great advantage, but nobody to know what it is: Bubbles and gullibility\"](https:\/\/www.dtc.umn.edu\/~odlyzko\/doc\/mania17.pdf) (PDF). *University of Minnesota*. Retrieved 22 October 2020.\n36. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-37)**\n    [Alter, Peter](https:\/\/en.wikipedia.org\/wiki\/Peter_Alter \"Peter Alter\") (2018). \"Der geplatzte Traum vom schnellen Geld\". *[Damals](https:\/\/en.wikipedia.org\/wiki\/Damals \"Damals\")* (in German). Vol. 50, no. 8. pp. 72–76\\.\n37. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-38)**\n    [McDonald, Forrest](https:\/\/en.wikipedia.org\/wiki\/Forrest_McDonald \"Forrest McDonald\") (9 September 1990). [\"The English Revolution in America\"](https:\/\/web.archive.org\/web\/20150525193440\/https:\/\/www.nytimes.com\/1990\/09\/09\/books\/the-english-revolution-in-america.html). *New York Times Book Review*. Archived from [the original](https:\/\/www.nytimes.com\/1990\/09\/09\/books\/the-english-revolution-in-america.html?smid=url-share) on 25 May 2015.\n38. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-39)** Marshall, pp. 127–130.\n39. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-40)** Richard A. Kleer (2015), \"Riding a wave: the Company's role in the South Sea Bubble\", p. 165.\n40. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-41)** Stephen Taylor (2008), \"Walpole, Robert, first earl of Orford (1676–1745)\", *Oxford Dictionary of National Biography*\n41. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-42)** Spence, *Anecdotes*, 1820, p. 368.\n42. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-43)**\n    John O'Farrell (2007), *An Utterly Impartial History of Britain – Or 2000 Years of Upper Class Idiots In Charge*, Doubleday,\n    \n    [ISBN](https:\/\/en.wikipedia.org\/wiki\/ISBN_\\(identifier\\) \"ISBN (identifier)\")\n    \n    [978-0-385-61198-5](https:\/\/en.wikipedia.org\/wiki\/Special:BookSources\/978-0-385-61198-5 \"Special:BookSources\/978-0-385-61198-5\")\n43. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-44)**\n    Westfall, Richard S. (1983). [*Never at Rest: A Biography of Isaac Newton*](https:\/\/archive.org\/details\/neveratrestbiogr00west). Cambridge University Press. pp. [861](https:\/\/archive.org\/details\/neveratrestbiogr00west\/page\/861)–862. [ISBN](https:\/\/en.wikipedia.org\/wiki\/ISBN_\\(identifier\\) \"ISBN (identifier)\")\n    \n    [978-0-521-27435-7](https:\/\/en.wikipedia.org\/wiki\/Special:BookSources\/978-0-521-27435-7 \"Special:BookSources\/978-0-521-27435-7\")\n    \n    .\n44. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-45)** Holodny, Elena (10 November 2017). [\"Isaac Newton Was a Genius, but Even He Lost Millions in the Stock Market\"](https:\/\/www.businessinsider.com\/isaac-newton-lost-a-fortune-on-englands-hottest-stock-2016-1). *Business Insider*.\n45. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-inflation-UK_46-0)**\n    UK [Consumer Price Index](https:\/\/en.wikipedia.org\/wiki\/Consumer_Price_Index \"Consumer Price Index\") inflation figures from 1209–2024 based on data from\n    \n    [\"Inflation calculator\"](https:\/\/www.bankofengland.co.uk\/monetary-policy\/inflation\/inflation-calculator). *[Bank of England](https:\/\/en.wikipedia.org\/wiki\/Bank_of_England \"Bank of England\")*. London. 18 February 2026. Retrieved 1 April 2026.\n46. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-47)** Nelson (1945) states that the substantial illicit trade pursued by the South Sea Company officials under the Asiento \"must be considered as a major cause of the War of Jenkins' Ear because it threatened to destroy the entire commercial framework of the Spanish Empire ... Unable to accept the destruction of its commercial system, Spain attempted to negotiate but requested that the company, as an evidence of good faith, should open its accounts for inspection by the Spanish representatives. Naturally, the directors refused, for compliance would have meant the complete exposure of the illegal traffic. Neither Spain nor the South Sea Company would yield. War was the inevitable result\".\n47. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-48)** Brown (1926, p. 663) says that The failure to comply with the accounting provisions of the Asiento treaty (in the context of Spanish knowledge of secret accounts kept by the South Sea Company which would prove clandestine trading) was a constant source of the friction which culminated in armed conflict.\n48. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-49)** For Hildner (1938), the war of 1739 might have been averted if the issues addressed by the commission established in 1732 to settle disputes over the Asiento had been resolved.\n49. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-50)**\n    [\"History Cooperative – A Short History of Nearly Everything!\"](http:\/\/www.historycooperative.org\/cgi-bin\/justtop.cgi?act=justtop&url=http:\/\/www.historycooperative.org\/journals\/wm\/58.1\/eltis.html). *History Cooperative*.\n    \n    `{{cite web}}`: CS1 maint: deprecated archival service ([link](https:\/\/en.wikipedia.org\/wiki\/Category:CS1_maint:_deprecated_archival_service \"Category:CS1 maint: deprecated archival service\"))\n50. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-51)**\n    Paul, Helen. [\"The South Sea Company's slaving activities\"](http:\/\/www.ehs.org.uk\/ehs\/conference2004\/assets\/paul.doc).\n    \n    `{{cite web}}`: CS1 maint: deprecated archival service ([link](https:\/\/en.wikipedia.org\/wiki\/Category:CS1_maint:_deprecated_archival_service \"Category:CS1 maint: deprecated archival service\"))\n51. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-52)** Paul, H. J. (2010). *The South Sea Bubble*.\n52. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-53)** Walker, G. J. (1979), p. 101\n53. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-54)** Archivo General de Indias, Seville, Spain IG2785\n54. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-55)** McLachlan, (1940), pp. 130–131\n55. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-56)** Archivo General de Indias, Seville, Spain C266L3\n56. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-57)**\n    Hildner, Ernest G. (August 1938). \"The Role of the South Sea Company in the Diplomacy Leading to the War of Jenkins' Ear, 1729–1739\". *The Hispanic American Historical Review*. **18** (3): 322–341\\. [doi](https:\/\/en.wikipedia.org\/wiki\/Doi_\\(identifier\\) \"Doi (identifier)\"):[10\\.2307\/2507151](https:\/\/doi.org\/10.2307%2F2507151). [JSTOR](https:\/\/en.wikipedia.org\/wiki\/JSTOR_\\(identifier\\) \"JSTOR (identifier)\") [2507151](https:\/\/www.jstor.org\/stable\/2507151).\n57. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-58)**\n    Elking, Henry \\[1722\\](1980). *A view of the Greenland Trade and whale-fishery*. Reprinted: Whitby: Caedmon.\n    \n    [ISBN](https:\/\/en.wikipedia.org\/wiki\/ISBN_\\(identifier\\) \"ISBN (identifier)\")\n    \n    [0-905355-13-X](https:\/\/en.wikipedia.org\/wiki\/Special:BookSources\/0-905355-13-X \"Special:BookSources\/0-905355-13-X\")\n58. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-59)**\n    Zacchi, Uwe (1986). *Menschen von Föhr. Lebenswege aus drei Jahrhunderten* (in German). Heide: Boyens & Co. p. 13. [ISBN](https:\/\/en.wikipedia.org\/wiki\/ISBN_\\(identifier\\) \"ISBN (identifier)\")\n    \n    [978-3-8042-0359-4](https:\/\/en.wikipedia.org\/wiki\/Special:BookSources\/978-3-8042-0359-4 \"Special:BookSources\/978-3-8042-0359-4\")\n    \n    .\n59. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-60)** Anderson, Adam \\[1801\\](1967). *The Origin of Commerce*. Reprinted: New York: Kelley.\n60. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-61)** Evans, Martin H. (2005). Statutory requirements regarding surgeons on British whale-ships. *The Mariner's Mirror* **91** (1) 7–12.\n61. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-62)** National Maritime Museum, Greenwich, catalogue entry for sculpture of arms, object ID: HRA0043 [\\[1\\]](https:\/\/collections.rmg.co.uk\/collections\/objects\/605213.html)\n62. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-64)** See, for 1711–21, J Carswell, *South Sea Bubble* (1960) 274–279; and for 1721–1840, see British Library, Add. MSS, 25544-9.\n\n## Bibliography\n\\[[edit](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=edit&section=27 \"Edit section: Bibliography\")\\]\n\nHistorical\n\n- Balen, Malcolm (2002). *A Very English Deceit: The Secret History of the South Sea Bubble and the First Great Financial Scandal* (London: Fourth Estate)\n  [ISBN](https:\/\/en.wikipedia.org\/wiki\/ISBN_\\(identifier\\) \"ISBN (identifier)\")\n  [978-1-841-15552-4](https:\/\/en.wikipedia.org\/wiki\/Special:BookSources\/978-1-841-15552-4 \"Special:BookSources\/978-1-841-15552-4\")\n- Brown, V.L. (1926), \"The South Sea Company and Contraband Trade\", *[The American Historical Review](https:\/\/en.wikipedia.org\/wiki\/The_American_Historical_Review \"The American Historical Review\")*, **31** (4): 662–678, [doi](https:\/\/en.wikipedia.org\/wiki\/Doi_\\(identifier\\) \"Doi (identifier)\"):[10\\.2307\/1840061](https:\/\/doi.org\/10.2307%2F1840061), [JSTOR](https:\/\/en.wikipedia.org\/wiki\/JSTOR_\\(identifier\\) \"JSTOR (identifier)\") [1840061](https:\/\/www.jstor.org\/stable\/1840061)\n- Carlos, Ann M. and Neal, Larry. (2006) \"The Micro-Foundations of the Early London Capital Market: Bank of England shareholders during and after the South Sea Bubble, 1720–25\", *Economic History Review* 59 (2006), pp. 498–538. [online](https:\/\/www.researchgate.net\/publication\/227708231_The_micro-foundations_of_the_early_London_capital_market_Bank_of_England_shareholders_during_and_after_the_South_Sea_Bubble_1720-251)\n- Carswell, John (1960), *The South Sea Bubble*, London: Cresset Press\n- [Cowles, Virginia](https:\/\/en.wikipedia.org\/wiki\/Virginia_Cowles \"Virginia Cowles\") (1960), *The Great Swindle: The Story of the South Sea Bubble*, New York: Harper\n- Dale, Richard S.; et al. (2005), \"Financial markets can go mad: evidence of irrational behaviour during the South Sea Bubble\", *Economic History Review*, **58** (2): 233–271, [doi](https:\/\/en.wikipedia.org\/wiki\/Doi_\\(identifier\\) \"Doi (identifier)\"):[10\\.1111\/j.1468-0289.2005.00304.x](https:\/\/doi.org\/10.1111%2Fj.1468-0289.2005.00304.x), [S2CID](https:\/\/en.wikipedia.org\/wiki\/S2CID_\\(identifier\\) \"S2CID (identifier)\") [154836178](https:\/\/api.semanticscholar.org\/CorpusID:154836178)\n- Dale, Richard (2004). *The First Crash: Lessons from the South Sea Bubble* (Princeton University Press)\n- Freeman, Mark, Robin Pearson, and James Taylor. (2013) \"Law, politics and the governance of English and Scottish joint-stock companies, 1600–1850\", *Business History* 55\\#4 (2013): 636–652. [online](http:\/\/www.tandfonline.com\/doi\/full\/10.1080\/00076791.2012.741971)\n- Harris, Ron (1994). \"The Bubble Act: Its Passage and its Effects on Business Organization\", *The Journal of Economic History*, 54 (3), 610–627\n- Hildner, E.G. Jr. (1938), \"The Role of the South Sea Company in the Diplomacy leading to the War of Jenkins' Ear, 1729–1739\", *The Hispanic American Historical Review*, **18** (3): 322–341, [doi](https:\/\/en.wikipedia.org\/wiki\/Doi_\\(identifier\\) \"Doi (identifier)\"):[10\\.2307\/2507151](https:\/\/doi.org\/10.2307%2F2507151), [JSTOR](https:\/\/en.wikipedia.org\/wiki\/JSTOR_\\(identifier\\) \"JSTOR (identifier)\") [2507151](https:\/\/www.jstor.org\/stable\/2507151)\n- Hoppit, Julian. (2002) \"The Myths of the South Sea Bubble\", *Transactions of the Royal Historical Society*, (2002) 12\\#1 pp. 141–165 [in JSTOR](https:\/\/www.jstor.org\/stable\/3679343)\n- Kleer, Richard A. (2015) \"Riding a wave: the Company's role in the South Sea Bubble\", *The Economic History Review* 68.1 (2015): 264–285. [online](https:\/\/www.researchgate.net\/profile\/Richard_Kleer\/publication\/264537000_Riding_a_wave_The_Company's_role_in_the_South_Sea_Bubble\/links\/564b825208ae3374e5ddba9a.)\n- Löwe, Kathleen (2021) *[Die Südseeblase in der englischen Kunst des 18. und 19. Jahrhunderts. Bilder einer Finanzkrise](http:\/\/www.reimer-mann-verlag.de\/controller.php?cmd=detail&titelnummer=103047&verlag=4)*, Berlin: Reimer.\n- McLachlan, J.O. (1940), *Trade and Peace With Old Spain, 1667–1750*, Cambridge: Cambridge University Press\n  \\[*[ISBN missing](https:\/\/en.wikipedia.org\/wiki\/Wikipedia:Citing_sources \"Wikipedia:Citing sources\")*\\]\n- McColloch, William E. (2013) \"A shackled revolution? The Bubble Act and financial regulation in eighteenth-century England\", *Review of Keynesian Economics* 1.3 (2013): 300–313. [online](https:\/\/www.researchgate.net\/profile\/Valerio_Cerretano\/publication\/286423413_Economic_crises_and_the_development_of_the_industrial_state_the_industrial_intervention_of_the_Bank_of_Italy_and_the_Bank_of_England_1918-1939\/links\/5804b91208ae73d9d6149867\/Economic-crises-and-the-development-of-the-industrial-state-the-industrial-intervention-of-the-Bank-of-Italy-and-the-Bank-of-England-1918-1939.pdf#page=38)\n- Mackay, C. *[Extraordinary Popular Delusions and the Madness of Crowds](https:\/\/en.wikipedia.org\/wiki\/Extraordinary_Popular_Delusions_and_the_Madness_of_Crowds \"Extraordinary Popular Delusions and the Madness of Crowds\")* (1841)\n- Marshall, Dorothy. (1962) *Eighteenth Century England* Longman. pp. 121–130.\\[*[ISBN missing](https:\/\/en.wikipedia.org\/wiki\/Wikipedia:Citing_sources \"Wikipedia:Citing sources\")*\\]\n- Michie, R.C. (2001), \"From Market to Exchange, 1693–1801\", *The London Stock Exchange*, Oxford: Oxford University Press, [ISBN](https:\/\/en.wikipedia.org\/wiki\/ISBN_\\(identifier\\) \"ISBN (identifier)\")\n  \n  [978-0-19-924255-9](https:\/\/en.wikipedia.org\/wiki\/Special:BookSources\/978-0-19-924255-9 \"Special:BookSources\/978-0-19-924255-9\")\n- Nelson, G.H. (1945), \"Contraband Trade Under the Asiento\", *[The American Historical Review](https:\/\/en.wikipedia.org\/wiki\/The_American_Historical_Review \"The American Historical Review\")*, **51** (1): 55–67, [doi](https:\/\/en.wikipedia.org\/wiki\/Doi_\\(identifier\\) \"Doi (identifier)\"):[10\\.2307\/1843076](https:\/\/doi.org\/10.2307%2F1843076), [JSTOR](https:\/\/en.wikipedia.org\/wiki\/JSTOR_\\(identifier\\) \"JSTOR (identifier)\") [1843076](https:\/\/www.jstor.org\/stable\/1843076)\n- Paul, Helen Julia (2010) *The South Sea Bubble: an economic history of its origins and consequences*, *Routledge Explorations in Economic History* [online](http:\/\/ieg-ego.eu\/en\/threads\/european-media\/european-media-events\/helen-j-paul-the-south-sea-bubble-1720) short summary\n- Paul, Helen. (2013) *The South Sea Bubble: An Economic History of its Origins and Consequences* Routledge, 176 pp. \\[*[ISBN missing](https:\/\/en.wikipedia.org\/wiki\/Wikipedia:Citing_sources \"Wikipedia:Citing sources\")*\\]\n- Paul, Helen, [*The \"South Sea Bubble\", 1720*](https:\/\/ieg-ego.eu\/de\/threads\/europaeische-medien\/europaeische-medienereignisse\/the-south-sea-bubble-1720-south-sea-bubble-be-freigabe), [EGO – European History Online](https:\/\/www.ieg-ego.eu\/), Mainz: [Institute of European History](http:\/\/www.ieg-mainz.de\/likecms\/index.php), 2015, retrieved: 17 March 2021 ([pdf](https:\/\/d-nb.info\/1125542748\/34)).\n- Plumb, J. H. (1956) *Sir Robert Walpole, vol. 1, The Making of a Statesman*. ch 8\n- Shea, Gary S. (2007), [\"Understanding financial derivatives during the South Sea Bubble: The case of the South Sea subscription shares\"](https:\/\/www.st-andrews.ac.uk\/~wwwecon\/CDMA\/papers\/wp0512.pdf) (PDF), *Oxford Economic Papers*, **59** (Supplement 1): i73–i104, [doi](https:\/\/en.wikipedia.org\/wiki\/Doi_\\(identifier\\) \"Doi (identifier)\"):[10\\.1093\/oep\/gpm031](https:\/\/doi.org\/10.1093%2Foep%2Fgpm031)\n- Temin, Peter; Voth, Hans-Joachim (2004), [\"Riding the South Sea Bubble\"](http:\/\/www.aeaweb.org\/articles.php?doi=10.1257\/0002828043052268), *[American Economic Review](https:\/\/en.wikipedia.org\/wiki\/American_Economic_Review \"American Economic Review\")*, **94** (5): 1654–1668, [doi](https:\/\/en.wikipedia.org\/wiki\/Doi_\\(identifier\\) \"Doi (identifier)\"):[10\\.1257\/0002828043052268](https:\/\/doi.org\/10.1257%2F0002828043052268)\n- Stratmann, Silke (2000) *Myths of Speculation: The South Sea Bubble and 18th-century English Literature*. Munich: Fink\n- Walker, G.J. (1979), *Política Española y Comercio Colonial 1700–1789*, Barcelona: Editorial Ariel\n\nFiction\n\n- Goddard, Robert (2000), *Sea Change*, London: Bantam Press, p. 416, [ISBN](https:\/\/en.wikipedia.org\/wiki\/ISBN_\\(identifier\\) \"ISBN (identifier)\")\n  \n  [978-0-593-04667-8](https:\/\/en.wikipedia.org\/wiki\/Special:BookSources\/978-0-593-04667-8 \"Special:BookSources\/978-0-593-04667-8\")\n  . *Novel set against the background of the South Sea bubble.*\n- Liss, David (2000), [*A Conspiracy of Paper*](https:\/\/archive.org\/details\/conspiracyofpape00liss), New York: Random House, [ISBN](https:\/\/en.wikipedia.org\/wiki\/ISBN_\\(identifier\\) \"ISBN (identifier)\")\n  \n  [978-0-375-50292-7](https:\/\/en.wikipedia.org\/wiki\/Special:BookSources\/978-0-375-50292-7 \"Special:BookSources\/978-0-375-50292-7\")\n  . *Novel set in the South Sea Company bubble.*\n\n## External links\n\\[[edit](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=edit&section=28 \"Edit section: External links\")\\]\n\n[![Wikimedia Commons logo](https:\/\/upload.wikimedia.org\/wikipedia\/en\/thumb\/4\/4a\/Commons-logo.svg\/40px-Commons-logo.svg.png)](https:\/\/en.wikipedia.org\/wiki\/File:Commons-logo.svg)\n\nWikimedia Commons has media related to [South Sea Bubble](https:\/\/commons.wikimedia.org\/wiki\/Category:South_Sea_Bubble \"commons:Category:South Sea Bubble\").\n\n[![Wikisource logo](https:\/\/upload.wikimedia.org\/wikipedia\/commons\/thumb\/4\/4c\/Wikisource-logo.svg\/40px-Wikisource-logo.svg.png)](https:\/\/en.wikipedia.org\/wiki\/File:Wikisource-logo.svg)\n\n[Wikisource](https:\/\/en.wikipedia.org\/wiki\/Wikisource \"Wikisource\") has the text of the [1911 *Encyclopædia Britannica*](https:\/\/en.wikipedia.org\/wiki\/Encyclop%C3%A6dia_Britannica_Eleventh_Edition \"Encyclopædia Britannica Eleventh Edition\") article \"[South Sea Bubble](https:\/\/en.wikisource.org\/wiki\/1911_Encyclop%C3%A6dia_Britannica\/South_Sea_Bubble \"wikisource:1911 Encyclopædia Britannica\/South Sea Bubble\")\".\n\n- ![](https:\/\/upload.wikimedia.org\/wikipedia\/commons\/thumb\/f\/fa\/Wikiquote-logo.svg\/20px-Wikiquote-logo.svg.png) Quotations related to [South Sea Company](https:\/\/en.wikiquote.org\/wiki\/Special:Search\/South_Sea_Company \"wikiquote:Special:Search\/South Sea Company\") at Wikiquote\n- [South Sea Bubble collection at Harvard University](http:\/\/www.library.hbs.edu\/hc\/ssb\/index.html)\n- [Famous First Bubbles – South Sea Bubble](https:\/\/sites.google.com\/site\/davesmant\/monetary-economics\/famous-first-bubbles\/south-sea-bubble)\n- [Charles McKay's Account of The South Sea Bubble in Modern English](https:\/\/web.archive.org\/web\/20140106143016\/http:\/\/www.thesouthseabubble.com\/) at the [Wayback Machine](https:\/\/en.wikipedia.org\/wiki\/Wayback_Machine \"Wayback Machine\") (archived 6 January 2014)\n- [Deprecated link](https:\/\/en.wikipedia.org\/wiki\/Wikipedia:Archive.today_guidance \"Wikipedia:Archive.today guidance\") at [archive.today](https:\/\/en.wikipedia.org\/wiki\/Archive.today \"Archive.today\") (archived 2012-12-09)\n- [The South Sea Bubble](https:\/\/www.bbc.co.uk\/programmes\/b01pcs5g), audio programming with Melvyn Bragg and guests, BBC Radio 4.\n\n| [v](https:\/\/en.wikipedia.org\/wiki\/Template:Corporate_scandals \"Template:Corporate scandals\") [t](https:\/\/en.wikipedia.org\/wiki\/Template_talk:Corporate_scandals \"Template talk:Corporate scandals\") [e](https:\/\/en.wikipedia.org\/wiki\/Special:EditPage\/Template:Corporate_scandals \"Special:EditPage\/Template:Corporate scandals\")[Corporate scandals](https:\/\/en.wikipedia.org\/wiki\/List_of_corporate_collapses_and_scandals \"List of corporate collapses and scandals\") |\n|---|\n| [South Sea Company]() (1720) [Panic of 1890 (Baring crisis)](https:\/\/en.wikipedia.org\/wiki\/Baring_crisis \"Baring crisis\") (1890) [Salad Oil](https:\/\/en.wikipedia.org\/wiki\/Salad_Oil_scandal \"Salad Oil scandal\") (1963) [Kinney Services, Inc.](https:\/\/en.wikipedia.org\/wiki\/Kinney_National_Company#Financial_scandal,_spinoff_and_reorganization \"Kinney National Company\") (1971) [Banco Ambrosiano](https:\/\/en.wikipedia.org\/wiki\/Banco_Ambrosiano \"Banco Ambrosiano\") (1982) [Carrian Group](https:\/\/en.wikipedia.org\/wiki\/Carrian_Group \"Carrian Group\") (1983) [Guinness](https:\/\/en.wikipedia.org\/wiki\/Guinness_share-trading_fraud \"Guinness share-trading fraud\") (1986) [Bofors scandal](https:\/\/en.wikipedia.org\/wiki\/Bofors_scandal \"Bofors scandal\") (1990) [Polly Peck](https:\/\/en.wikipedia.org\/wiki\/Polly_Peck \"Polly Peck\") (1990) [Bank of Credit and Commerce International](https:\/\/en.wikipedia.org\/wiki\/Bank_of_Credit_and_Commerce_International \"Bank of Credit and Commerce International\") (1990) [Robert Maxwell](https:\/\/en.wikipedia.org\/wiki\/Robert_Maxwell \"Robert Maxwell\") (1991) [Indian stock market scam](https:\/\/en.wikipedia.org\/wiki\/1992_Indian_stock_market_scam \"1992 Indian stock market scam\") (1992) [Banesto](https:\/\/en.wikipedia.org\/wiki\/Banesto#1993_crisis_&_intervention \"Banesto\") (1993) [Metallgesellschaft](https:\/\/en.wikipedia.org\/wiki\/Metallgesellschaft#Hedging_debacle \"Metallgesellschaft\") (1993) [Towers Financial Corporation](https:\/\/en.wikipedia.org\/wiki\/Towers_Financial_Corporation \"Towers Financial Corporation\") (1993) [Barings Bank](https:\/\/en.wikipedia.org\/wiki\/Barings_Bank \"Barings Bank\") (1995) [Sumitomo Corporation](https:\/\/en.wikipedia.org\/wiki\/Sumitomo_copper_affair \"Sumitomo copper affair\") (1996) [Lysine price-fixing conspiracy](https:\/\/en.wikipedia.org\/wiki\/Lysine_price-fixing_conspiracy \"Lysine price-fixing conspiracy\") (1997) [Daewoo](https:\/\/en.wikipedia.org\/wiki\/Daewoo_dissolution_and_corruption_scandal \"Daewoo dissolution and corruption scandal\") (1999–2006) [Long-Term Capital Management](https:\/\/en.wikipedia.org\/wiki\/Long-Term_Capital_Management \"Long-Term Capital Management\") (2000) [CINAR](https:\/\/en.wikipedia.org\/wiki\/CINAR_scandal \"CINAR scandal\") (2000) [One.Tel](https:\/\/en.wikipedia.org\/wiki\/One.Tel \"One.Tel\") (2001) [Enron](https:\/\/en.wikipedia.org\/wiki\/Enron_scandal \"Enron scandal\") (2001) [Adelphia](https:\/\/en.wikipedia.org\/wiki\/Adelphia_Communications_Corporation \"Adelphia Communications Corporation\") (2002) [WorldCom](https:\/\/en.wikipedia.org\/wiki\/WorldCom_scandal \"WorldCom scandal\") (2002) [Parmalat](https:\/\/en.wikipedia.org\/wiki\/Parmalat_bankruptcy_timeline \"Parmalat bankruptcy timeline\") (2003–2005) [Tyco](https:\/\/en.wikipedia.org\/wiki\/Tyco_International#Corporate_scandal_of_2002 \"Tyco International\") (2004) [Bayou Hedge Fund Group](https:\/\/en.wikipedia.org\/wiki\/Bayou_Hedge_Fund_Group \"Bayou Hedge Fund Group\") (2005) [Société Générale](https:\/\/en.wikipedia.org\/wiki\/2008_Soci%C3%A9t%C3%A9_G%C3%A9n%C3%A9rale_trading_loss \"2008 Société Générale trading loss\") (2008) [Bear Stearns](https:\/\/en.wikipedia.org\/wiki\/Bear_Stearns#Subprime_mortgage_hedge_fund_crisis \"Bear Stearns\") (2008) [Libor](https:\/\/en.wikipedia.org\/wiki\/Libor_scandal \"Libor scandal\") (2008–2012) [Anglo Irish Bank](https:\/\/en.wikipedia.org\/wiki\/Anglo_Irish_Bank_hidden_loans_controversy \"Anglo Irish Bank hidden loans controversy\") (2008–2011) [Volkswagen emissions scandal](https:\/\/en.wikipedia.org\/wiki\/Volkswagen_emissions_scandal \"Volkswagen emissions scandal\") (2008–2015) [Satyam](https:\/\/en.wikipedia.org\/wiki\/Satyam_scandal \"Satyam scandal\") (2009) [2G spectrum case](https:\/\/en.wikipedia.org\/wiki\/2G_spectrum_case \"2G spectrum case\") (2010–2019) [National Herald corruption case](https:\/\/en.wikipedia.org\/wiki\/National_Herald_corruption_case \"National Herald corruption case\") (2010–ongoing) [News Corporation scandal](https:\/\/en.wikipedia.org\/wiki\/News_Corporation_scandal \"News Corporation scandal\") (2011) [Olympus](https:\/\/en.wikipedia.org\/wiki\/Olympus_scandal \"Olympus scandal\") (2011) [Indian coal allocation scam](https:\/\/en.wikipedia.org\/wiki\/Indian_coal_allocation_scam \"Indian coal allocation scam\") (2012) [OCZ](https:\/\/en.wikipedia.org\/wiki\/OCZ#Accounting_practices \"OCZ\") (2012–2013) [Saradha Group financial scandal](https:\/\/en.wikipedia.org\/wiki\/Saradha_Group_financial_scandal \"Saradha Group financial scandal\") (2013–ongoing) [Forex](https:\/\/en.wikipedia.org\/wiki\/Forex_scandal \"Forex scandal\") (2013–ongoing) [Toshiba](https:\/\/en.wikipedia.org\/wiki\/Toshiba#2015_accounting_scandal \"Toshiba\") (2015) [1Malaysia Development Berhad](https:\/\/en.wikipedia.org\/wiki\/1Malaysia_Development_Berhad_scandal \"1Malaysia Development Berhad scandal\") (2015–ongoing) [Wells Fargo account fraud scandal](https:\/\/en.wikipedia.org\/wiki\/Wells_Fargo_account_fraud_scandal \"Wells Fargo account fraud scandal\") (2016–ongoing) [Facebook–Cambridge Analytica data scandal](https:\/\/en.wikipedia.org\/wiki\/Facebook%E2%80%93Cambridge_Analytica_data_scandal \"Facebook–Cambridge Analytica data scandal\") (2018) [Moser Baer](https:\/\/en.wikipedia.org\/wiki\/Moser_Baer \"Moser Baer\") (2019) [Wirecard](https:\/\/en.wikipedia.org\/wiki\/Wirecard_scandal \"Wirecard scandal\") (2020) [Nikola](https:\/\/en.wikipedia.org\/wiki\/Nikola_Corporation#Fraud_allegations \"Nikola Corporation\") (2020) [Facebook company files leak](https:\/\/en.wikipedia.org\/wiki\/2021_Facebook_leak \"2021 Facebook leak\") (2021) |\n| [Accounting scandals](https:\/\/en.wikipedia.org\/wiki\/Accounting_scandals \"Accounting scandals\") [Corporate haven](https:\/\/en.wikipedia.org\/wiki\/Corporate_haven \"Corporate haven\") [Unreported employment](https:\/\/en.wikipedia.org\/wiki\/Unreported_employment \"Unreported employment\") |\n\n| [v](https:\/\/en.wikipedia.org\/wiki\/Template:Chartered_companies \"Template:Chartered companies\") [t](https:\/\/en.wikipedia.org\/wiki\/Template_talk:Chartered_companies \"Template talk:Chartered companies\") [e](https:\/\/en.wikipedia.org\/wiki\/Special:EditPage\/Template:Chartered_companies \"Special:EditPage\/Template:Chartered companies\")[Chartered companies](https:\/\/en.wikipedia.org\/wiki\/Chartered_company \"Chartered company\") |   |\n|---|---|\n| British | [African Company of Merchants](https:\/\/en.wikipedia.org\/wiki\/African_Company_of_Merchants \"African Company of Merchants\") [Barbary Company](https:\/\/en.wikipedia.org\/wiki\/Barbary_Company \"Barbary Company\") [British American Land Company](https:\/\/en.wikipedia.org\/wiki\/British_American_Land_Company \"British American Land Company\") [British East Africa Company](https:\/\/en.wikipedia.org\/wiki\/Imperial_British_East_Africa_Company \"Imperial British East Africa Company\") [Canada Company](https:\/\/en.wikipedia.org\/wiki\/Canada_Company \"Canada Company\") [Canterbury Association](https:\/\/en.wikipedia.org\/wiki\/Canterbury_Association \"Canterbury Association\") [Company of Merchant Adventurers of London](https:\/\/en.wikipedia.org\/wiki\/Company_of_Merchant_Adventurers_of_London \"Company of Merchant Adventurers of London\") [Company of Merchant Adventurers to New Lands](https:\/\/en.wikipedia.org\/wiki\/Company_of_Merchant_Adventurers_to_New_Lands \"Company of Merchant Adventurers to New Lands\") [Company of Scotland](https:\/\/en.wikipedia.org\/wiki\/Company_of_Scotland \"Company of Scotland\") [East India Company](https:\/\/en.wikipedia.org\/wiki\/East_India_Company \"East India Company\") [Eastern Archipelago Company](https:\/\/en.wikipedia.org\/wiki\/Eastern_Archipelago_Company \"Eastern Archipelago Company\") [Eastland Company](https:\/\/en.wikipedia.org\/wiki\/Eastland_Company \"Eastland Company\") [Guinea Company](https:\/\/en.wikipedia.org\/wiki\/Guinea_Company_\\(London\\) \"Guinea Company (London)\") [Hudson's Bay Company](https:\/\/en.wikipedia.org\/wiki\/Hudson%27s_Bay_Company \"Hudson's Bay Company\") [Levant Company](https:\/\/en.wikipedia.org\/wiki\/Levant_Company \"Levant Company\") [London and Bristol Company](https:\/\/en.wikipedia.org\/wiki\/London_and_Bristol_Company \"London and Bristol Company\") [Massachusetts Bay Company](https:\/\/en.wikipedia.org\/wiki\/Massachusetts_Bay_Colony \"Massachusetts Bay Colony\") [Muscovy Company](https:\/\/en.wikipedia.org\/wiki\/Muscovy_Company \"Muscovy Company\") [New Zealand Company](https:\/\/en.wikipedia.org\/wiki\/New_Zealand_Company \"New Zealand Company\") [North Borneo Company](https:\/\/en.wikipedia.org\/wiki\/North_Borneo_Chartered_Company \"North Borneo Chartered Company\") [Providence Island Company](https:\/\/en.wikipedia.org\/wiki\/Providence_Island_Company \"Providence Island Company\") [Royal African Company](https:\/\/en.wikipedia.org\/wiki\/Royal_African_Company \"Royal African Company\") [Royal British Bank](https:\/\/en.wikipedia.org\/wiki\/Royal_British_Bank \"Royal British Bank\") [Royal Niger Company](https:\/\/en.wikipedia.org\/wiki\/Royal_Niger_Company \"Royal Niger Company\") [South Africa Company](https:\/\/en.wikipedia.org\/wiki\/British_South_Africa_Company \"British South Africa Company\") [Sierra Leone Company](https:\/\/en.wikipedia.org\/wiki\/Sierra_Leone_Company \"Sierra Leone Company\") [Somers Isles Company](https:\/\/en.wikipedia.org\/wiki\/Somers_Isles_Company \"Somers Isles Company\") [South Australian Company](https:\/\/en.wikipedia.org\/wiki\/South_Australian_Company \"South Australian Company\") [South Sea Company]() [Spanish Company](https:\/\/en.wikipedia.org\/wiki\/Spanish_Company \"Spanish Company\") [Venice Company](https:\/\/en.wikipedia.org\/wiki\/Venice_Company \"Venice Company\") [Virginia Company](https:\/\/en.wikipedia.org\/wiki\/Virginia_Company \"Virginia Company\") [Plymouth Company](https:\/\/en.wikipedia.org\/wiki\/Plymouth_Company \"Plymouth Company\") [Virginia Company of London](https:\/\/en.wikipedia.org\/wiki\/Virginia_Company_of_London \"Virginia Company of London\") |\n| French | [First French East Indies Company](https:\/\/en.wikipedia.org\/wiki\/First_French_East_Indies_Company \"First French East Indies Company\") [Company of One Hundred Associates](https:\/\/en.wikipedia.org\/wiki\/Company_of_One_Hundred_Associates \"Company of One Hundred Associates\") [Company of the American Islands](https:\/\/en.wikipedia.org\/wiki\/Company_of_the_American_Islands \"Company of the American Islands\") [Company of Habitants](https:\/\/en.wikipedia.org\/wiki\/Company_of_Habitants \"Company of Habitants\") [French West India Company](https:\/\/en.wikipedia.org\/wiki\/French_West_India_Company \"French West India Company\") [Compagnie du Sénégal](https:\/\/en.wikipedia.org\/wiki\/Compagnie_du_S%C3%A9n%C3%A9gal \"Compagnie du Sénégal\") [Louis XIV's East India Company](https:\/\/en.wikipedia.org\/wiki\/Louis_XIV%27s_East_India_Company \"Louis XIV's East India Company\") [John Law's Company](https:\/\/en.wikipedia.org\/wiki\/John_Law%27s_Company \"John Law's Company\") [French Indies Company](https:\/\/en.wikipedia.org\/wiki\/French_Indies_Company \"French Indies Company\") [Compagnie de Calonne](https:\/\/en.wikipedia.org\/wiki\/Compagnie_de_Calonne \"Compagnie de Calonne\") |\n| German | [Brandenburg African Company](https:\/\/en.wikipedia.org\/wiki\/Brandenburger_Gold_Coast \"Brandenburger Gold Coast\") [East Africa Company](https:\/\/en.wikipedia.org\/wiki\/German_East_Africa_Company \"German East Africa Company\") [Emden Company](https:\/\/en.wikipedia.org\/wiki\/Emden_Company \"Emden Company\") [New Guinea Company](https:\/\/en.wikipedia.org\/wiki\/German_New_Guinea_Company \"German New Guinea Company\") [West African Company](https:\/\/en.wikipedia.org\/wiki\/German_West_African_Company \"German West African Company\") |\n| Portuguese | [Cacheu and Cape Verde Company](https:\/\/en.wikipedia.org\/wiki\/Cacheu_and_Cape_Verde_Company \"Cacheu and Cape Verde Company\") [East India Company](https:\/\/en.wikipedia.org\/wiki\/Portuguese_East_India_Company \"Portuguese East India Company\") [Grão Pará and Maranhão Company](https:\/\/en.wikipedia.org\/wiki\/Gr%C3%A3o_Par%C3%A1_and_Maranh%C3%A3o_Company \"Grão Pará and Maranhão Company\") [Company of Guinea](https:\/\/en.wikipedia.org\/wiki\/Casa_da_Guin%C3%A9 \"Casa da Guiné\") [House of India](https:\/\/en.wikipedia.org\/wiki\/Casa_da_%C3%8Dndia \"Casa da Índia\") [Mozambique Company](https:\/\/en.wikipedia.org\/wiki\/Mozambique_Company \"Mozambique Company\") [Zambezia Company](https:\/\/en.wikipedia.org\/wiki\/Zambezia_Company \"Zambezia Company\") [Niassa Company](https:\/\/en.wikipedia.org\/wiki\/Niassa_Company \"Niassa Company\") |\n| Austrian and [Low Countries](https:\/\/en.wikipedia.org\/wiki\/Low_Countries \"Low Countries\") | [Brabantsche Compagnie](https:\/\/en.wikipedia.org\/wiki\/Brabantsche_Compagnie \"Brabantsche Compagnie\") [Dutch East India Company](https:\/\/en.wikipedia.org\/wiki\/Dutch_East_India_Company \"Dutch East India Company\") [Imperial Company of Trieste and Antwerp](https:\/\/en.wikipedia.org\/wiki\/Austrian_East_India_Company \"Austrian East India Company\") [Imperial Privileged Oriental Company](https:\/\/en.wikipedia.org\/wiki\/Imperial_Privileged_Oriental_Company \"Imperial Privileged Oriental Company\") [New Netherland Company](https:\/\/en.wikipedia.org\/wiki\/New_Netherland_Company \"New Netherland Company\") [Noordsche Compagnie](https:\/\/en.wikipedia.org\/wiki\/Noordsche_Compagnie \"Noordsche Compagnie\") [Ostend Company](https:\/\/en.wikipedia.org\/wiki\/Ostend_Company \"Ostend Company\") [Dutch West India Company](https:\/\/en.wikipedia.org\/wiki\/Dutch_West_India_Company \"Dutch West India Company\") [Compagnie van Verre](https:\/\/en.wikipedia.org\/wiki\/Compagnie_van_Verre \"Compagnie van Verre\") [Compagnie van De Moucheron](https:\/\/en.wikipedia.org\/wiki\/Compagnie_van_De_Moucheron \"Compagnie van De Moucheron\") [Veerse Compagnie](https:\/\/en.wikipedia.org\/wiki\/Veerse_Compagnie \"Veerse Compagnie\") |\n| Spanish | [Adelantamientos](https:\/\/en.wikipedia.org\/wiki\/Adelantado \"Adelantado\") [Columbian Adelantamiento](https:\/\/en.wikipedia.org\/wiki\/Columbian_Viceroyalty \"Columbian Viceroyalty\") [Peruvian Adelantamientos' Charters](https:\/\/en.wikipedia.org\/wiki\/Capitulations_of_1534 \"Capitulations of 1534\") [New Andalusia](https:\/\/en.wikipedia.org\/wiki\/Governorate_of_New_Andalusia \"Governorate of New Andalusia\") [New Castile](https:\/\/en.wikipedia.org\/wiki\/Governorate_of_New_Castile \"Governorate of New Castile\") [New León](https:\/\/en.wikipedia.org\/wiki\/Governorate_of_New_Le%C3%B3n \"Governorate of New León\") [New Toledo](https:\/\/en.wikipedia.org\/wiki\/Governorate_of_New_Toledo \"Governorate of New Toledo\") [Terra Australis](https:\/\/en.wikipedia.org\/wiki\/Governorate_of_Terra_Australis \"Governorate of Terra Australis\") [Barcelona Trading Company](https:\/\/en.wikipedia.org\/wiki\/Barcelona_Trading_Company \"Barcelona Trading Company\") [Casa de Contratación](https:\/\/en.wikipedia.org\/wiki\/Casa_de_Contrataci%C3%B3n \"Casa de Contratación\") [Guipuzcoan Company of Caracas](https:\/\/en.wikipedia.org\/wiki\/Guipuzcoan_Company_of_Caracas \"Guipuzcoan Company of Caracas\") [Royal Company of the Philippines](https:\/\/en.wikipedia.org\/wiki\/Royal_Company_of_the_Philippines \"Royal Company of the Philippines\") [Welser's Klein-Venedig Charter](https:\/\/en.wikipedia.org\/wiki\/Klein-Venedig \"Klein-Venedig\") |\n| Swedish | [Swedish Africa Company](https:\/\/en.wikipedia.org\/wiki\/Swedish_Africa_Company \"Swedish Africa Company\") [Swedish East India Company](https:\/\/en.wikipedia.org\/wiki\/Swedish_East_India_Company \"Swedish East India Company\") [Swedish Levant Company](https:\/\/en.wikipedia.org\/wiki\/Swedish_Levant_Company \"Swedish Levant Company\") [Swedish South Company](https:\/\/en.wikipedia.org\/wiki\/Swedish_South_Company \"Swedish South Company\") [Swedish West India Company](https:\/\/en.wikipedia.org\/wiki\/Swedish_West_India_Company \"Swedish West India Company\") |\n| Danish | [Danish Asiatic Company](https:\/\/en.wikipedia.org\/wiki\/Danish_Asiatic_Company \"Danish Asiatic Company\") [Danish East India Company](https:\/\/en.wikipedia.org\/wiki\/Danish_East_India_Company \"Danish East India Company\") [Danish West India Company](https:\/\/en.wikipedia.org\/wiki\/Danish_West_India_Company \"Danish West India Company\") [Royal Greenland Trading Department](https:\/\/en.wikipedia.org\/wiki\/Royal_Greenland_Trading_Department \"Royal Greenland Trading Department\") |\n| Russian | [Russian-American Company](https:\/\/en.wikipedia.org\/wiki\/Russian-American_Company \"Russian-American Company\") |\n| American | [American Trading Company of Borneo](https:\/\/en.wikipedia.org\/wiki\/American_Trading_Company_of_Borneo \"American Trading Company of Borneo\") |\n| ![](https:\/\/upload.wikimedia.org\/wikipedia\/en\/thumb\/9\/96\/Symbol_category_class.svg\/20px-Symbol_category_class.svg.png) [Category](https:\/\/en.wikipedia.org\/wiki\/Category:Chartered_companies \"Category:Chartered companies\") |   |\n\n| [v](https:\/\/en.wikipedia.org\/wiki\/Template:Financial_bubbles \"Template:Financial bubbles\") [t](https:\/\/en.wikipedia.org\/wiki\/Template_talk:Financial_bubbles \"Template talk:Financial bubbles\") [e](https:\/\/en.wikipedia.org\/wiki\/Special:EditPage\/Template:Financial_bubbles \"Special:EditPage\/Template:Financial bubbles\")[Financial bubbles](https:\/\/en.wikipedia.org\/wiki\/Economic_bubble \"Economic bubble\") |   |\n|---|---|\n| [Market trend](https:\/\/en.wikipedia.org\/wiki\/Market_trend \"Market trend\") [Credit cycle](https:\/\/en.wikipedia.org\/wiki\/Credit_cycle \"Credit cycle\") [Irrational exuberance](https:\/\/en.wikipedia.org\/wiki\/Irrational_exuberance \"Irrational exuberance\") [Social contagion](https:\/\/en.wikipedia.org\/wiki\/Social_contagion \"Social contagion\") [Real-estate bubble](https:\/\/en.wikipedia.org\/wiki\/Real-estate_bubble \"Real-estate bubble\") [Stock market bubble](https:\/\/en.wikipedia.org\/wiki\/Stock_market_bubble \"Stock market bubble\") |   |\n| [Commercial revolution](https:\/\/en.wikipedia.org\/wiki\/Commercial_revolution \"Commercial revolution\") (1000–1760) | [Tulip mania](https:\/\/en.wikipedia.org\/wiki\/Tulip_mania \"Tulip mania\") (1634–1637) [Mississippi bubble](https:\/\/en.wikipedia.org\/wiki\/John_Law%27s_Company \"John Law's Company\") (1684–1720) [South Sea bubble]() (1711–1720) [Bengal Bubble of 1769](https:\/\/en.wikipedia.org\/wiki\/Bengal_Bubble_of_1769 \"Bengal Bubble of 1769\") (1757–1769) |\n| [1st Industrial Revolution](https:\/\/en.wikipedia.org\/wiki\/Industrial_Revolution \"Industrial Revolution\") (1760–1840) | [Canal Mania](https:\/\/en.wikipedia.org\/wiki\/Canal_Mania \"Canal Mania\") (c. 1790–c. 1810) [Carolina gold rush](https:\/\/en.wikipedia.org\/wiki\/Carolina_gold_rush \"Carolina gold rush\") (1802–1825) [1810s Alabama real estate bubble](https:\/\/en.wikipedia.org\/wiki\/Alabama_real_estate_bubble_of_the_1810s \"Alabama real estate bubble of the 1810s\") [Georgia Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Georgia_Gold_Rush \"Georgia Gold Rush\") (1828–c. 1840) [1830s Chicago real estate bubble](https:\/\/en.wikipedia.org\/wiki\/Chicago_real_estate_bubble_of_the_1830s \"Chicago real estate bubble of the 1830s\") [Chilean silver rush](https:\/\/en.wikipedia.org\/wiki\/Chilean_silver_rush \"Chilean silver rush\") (1832–1850) |\n| 1840–1870 | [Railway Mania](https:\/\/en.wikipedia.org\/wiki\/Railway_Mania \"Railway Mania\") (c. 1840–c. 1850) [California gold rush](https:\/\/en.wikipedia.org\/wiki\/California_gold_rush \"California gold rush\") (1848–1855) [Queen Charlottes Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Queen_Charlottes_Gold_Rush \"Queen Charlottes Gold Rush\") (1851) [Victorian gold rush](https:\/\/en.wikipedia.org\/wiki\/Victorian_gold_rush \"Victorian gold rush\") (1851–c. 1870) [New South Wales gold rush](https:\/\/en.wikipedia.org\/wiki\/New_South_Wales_gold_rush \"New South Wales gold rush\") (1851–1880) [Australian gold rushes](https:\/\/en.wikipedia.org\/wiki\/Australian_gold_rushes \"Australian gold rushes\") (1851–1914) [Fraser Canyon Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Fraser_Canyon_Gold_Rush \"Fraser Canyon Gold Rush\") (1858) [Pike's Peak gold rush](https:\/\/en.wikipedia.org\/wiki\/Pike%27s_Peak_gold_rush \"Pike's Peak gold rush\") (1858–1861) [Rock Creek Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Rock_Creek_Gold_Rush \"Rock Creek Gold Rush\") (1859) [Pennsylvania oil rush](https:\/\/en.wikipedia.org\/wiki\/Pennsylvania_oil_rush \"Pennsylvania oil rush\") (1859–1891) [Similkameen Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Similkameen_Gold_Rush \"Similkameen Gold Rush\") (1860) [Stikine Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Stikine_Gold_Rush \"Stikine Gold Rush\") (1861) [Colorado River mining boom](https:\/\/en.wikipedia.org\/wiki\/Steamboats_of_the_Colorado_River \"Steamboats of the Colorado River\") (1861–1864) [Otago gold rush](https:\/\/en.wikipedia.org\/wiki\/Otago_gold_rush \"Otago gold rush\") (1861–1864) [Cariboo Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Cariboo_Gold_Rush \"Cariboo Gold Rush\") (1861–1867) [First Nova Scotia Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Gold_mining_in_Nova_Scotia \"Gold mining in Nova Scotia\") (1861–1874) [West Coast gold rush](https:\/\/en.wikipedia.org\/wiki\/West_Coast_gold_rush \"West Coast gold rush\") (1864–1867) [Big Bend Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Big_Bend_Gold_Rush \"Big Bend Gold Rush\") (c. 1865) [Vermilion Lake gold rush](https:\/\/en.wikipedia.org\/wiki\/Vermilion_Lake_gold_rush \"Vermilion Lake gold rush\") (1865–1867) [Kildonan Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Kildonan_Gold_Rush \"Kildonan Gold Rush\") (1869) [Omineca Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Omineca_Gold_Rush \"Omineca Gold Rush\") (1869) |\n| [2nd Industrial Revolution](https:\/\/en.wikipedia.org\/wiki\/Second_Industrial_Revolution \"Second Industrial Revolution\") (1870–1914) | [1870s Lapland gold rush](https:\/\/en.wikipedia.org\/wiki\/Lapland_gold_rush \"Lapland gold rush\") [Coromandel Gold Rushes](https:\/\/en.wikipedia.org\/wiki\/Coromandel_Gold_Rushes \"Coromandel Gold Rushes\") (c. 1870–c. 1890) [Cassiar Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Cassiar_Country \"Cassiar Country\") (c. 1870–c. 1890) [Black Hills gold rush](https:\/\/en.wikipedia.org\/wiki\/Black_Hills_gold_rush \"Black Hills gold rush\") (1874–1880) [Colorado Silver Boom](https:\/\/en.wikipedia.org\/wiki\/Colorado_Silver_Boom \"Colorado Silver Boom\") (1879–1893) [Western Australian gold rushes](https:\/\/en.wikipedia.org\/wiki\/Western_Australian_gold_rushes \"Western Australian gold rushes\") (c. 1880–c. 1900) [Indiana gas boom](https:\/\/en.wikipedia.org\/wiki\/Indiana_gas_boom \"Indiana gas boom\") (c. 1880–1903) [Ohio oil rush](https:\/\/en.wikipedia.org\/wiki\/Petroleum_industry_in_Ohio \"Petroleum industry in Ohio\") (c. 1880–c. 1930) [Tierra del Fuego gold rush](https:\/\/en.wikipedia.org\/wiki\/Tierra_del_Fuego_gold_rush \"Tierra del Fuego gold rush\") (1883–1906) [Cayoosh Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Cayoosh_Gold_Rush \"Cayoosh Gold Rush\") (1884) [Witwatersrand Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Witwatersrand_Gold_Rush \"Witwatersrand Gold Rush\") (1886) [Encilhamento](https:\/\/en.wikipedia.org\/wiki\/Encilhamento \"Encilhamento\") (1886–1890) [Cripple Creek Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Cripple_Creek_Gold_Rush \"Cripple Creek Gold Rush\") (c. 1890–c. 1910) [Klondike Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Klondike_Gold_Rush \"Klondike Gold Rush\") (1896–1899) [Second Nova Scotia Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Gold_mining_in_Nova_Scotia \"Gold mining in Nova Scotia\") (1896–1903) [Kobuk River Stampede](https:\/\/en.wikipedia.org\/wiki\/Kobuk_River_Stampede \"Kobuk River Stampede\") (1897–1899) [Mount Baker gold rush](https:\/\/en.wikipedia.org\/wiki\/Mount_Baker_gold_rush \"Mount Baker gold rush\") (1897–c. 1925) [Nome Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Nome_Gold_Rush \"Nome Gold Rush\") (1899–1909) [Fairbanks Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Fairbanks_Gold_Rush \"Fairbanks Gold Rush\") (c. 1900–1918) [Texas oil boom](https:\/\/en.wikipedia.org\/wiki\/Texas_oil_boom \"Texas oil boom\") (1901–1918) [Cobalt silver rush](https:\/\/en.wikipedia.org\/wiki\/Cobalt_silver_rush \"Cobalt silver rush\") (1903–1918) [Porcupine Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Porcupine_Gold_Rush \"Porcupine Gold Rush\") (1909–1918) |\n| [Interwar period](https:\/\/en.wikipedia.org\/wiki\/Interwar_period \"Interwar period\") (1918–1939) | [1920s Florida land boom](https:\/\/en.wikipedia.org\/wiki\/1920s_Florida_land_boom \"1920s Florida land boom\") (c. 1920–1925) [Fairbanks Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Fairbanks_Gold_Rush \"Fairbanks Gold Rush\") (1918–c. 1930) [Texas oil boom](https:\/\/en.wikipedia.org\/wiki\/Texas_oil_boom \"Texas oil boom\") (1918–1945) [Cobalt silver rush](https:\/\/en.wikipedia.org\/wiki\/Cobalt_silver_rush \"Cobalt silver rush\") (1918–c. 1930) [Porcupine Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Porcupine_Gold_Rush \"Porcupine Gold Rush\") (1918–1945) [1930s Kakamega gold rush](https:\/\/en.wikipedia.org\/wiki\/Kakamega_gold_rush \"Kakamega gold rush\") [Third Nova Scotia Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Gold_mining_in_Nova_Scotia \"Gold mining in Nova Scotia\") (1932–1942) |\n| [Post–WWII expansion](https:\/\/en.wikipedia.org\/wiki\/Post%E2%80%93World_War_II_economic_expansion \"Post–World War II economic expansion\") (1945–1973) | [Texas oil boom](https:\/\/en.wikipedia.org\/wiki\/Texas_oil_boom \"Texas oil boom\") (1945–c. 1950) [Porcupine Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Porcupine_Gold_Rush \"Porcupine Gold Rush\") (1945–c. 1960) [Poseidon bubble](https:\/\/en.wikipedia.org\/wiki\/Poseidon_bubble \"Poseidon bubble\") (1969–1970) |\n| [The Great Inflation](https:\/\/en.wikipedia.org\/wiki\/Stagflation \"Stagflation\") (1973–1982) | [1970s commodities boom](https:\/\/en.wikipedia.org\/wiki\/1970s_commodities_boom \"1970s commodities boom\") [Mexican oil boom](https:\/\/en.wikipedia.org\/wiki\/Mexican_oil_boom \"Mexican oil boom\") (1977–1981) [Silver Thursday](https:\/\/en.wikipedia.org\/wiki\/Silver_Thursday \"Silver Thursday\") (1980) [New Zealand property bubble](https:\/\/en.wikipedia.org\/wiki\/New_Zealand_property_bubble \"New Zealand property bubble\") (c. 1980–1982) |\n| [Great Moderation](https:\/\/en.wikipedia.org\/wiki\/Great_Moderation \"Great Moderation\")\/ Great Regression (1982–2007) | [1980s oil glut](https:\/\/en.wikipedia.org\/wiki\/1980s_oil_glut \"1980s oil glut\") [New Zealand property bubble](https:\/\/en.wikipedia.org\/wiki\/New_Zealand_property_bubble \"New Zealand property bubble\") (1982–) [Spanish property bubble](https:\/\/en.wikipedia.org\/wiki\/Spanish_property_bubble \"Spanish property bubble\") (1985–2008) [Japanese asset price bubble](https:\/\/en.wikipedia.org\/wiki\/Japanese_asset_price_bubble \"Japanese asset price bubble\") (1986–1990) [Dot-com bubble](https:\/\/en.wikipedia.org\/wiki\/Dot-com_bubble \"Dot-com bubble\") (1995–2000) [Baltic states housing bubble](https:\/\/en.wikipedia.org\/wiki\/Baltic_states_housing_bubble \"Baltic states housing bubble\") (2000–2006) [Irish property bubble](https:\/\/en.wikipedia.org\/wiki\/Irish_property_bubble \"Irish property bubble\") (c. 2000–2007) [2000s commodities boom](https:\/\/en.wikipedia.org\/wiki\/2000s_commodities_boom \"2000s commodities boom\") (2000–2008) [2000s Danish property bubble](https:\/\/en.wikipedia.org\/wiki\/Danish_property_bubble_of_2000s \"Danish property bubble of 2000s\") (2001–2006) [United States housing bubble](https:\/\/en.wikipedia.org\/wiki\/2000s_United_States_housing_bubble \"2000s United States housing bubble\") (2002–2006) [Romanian property bubble](https:\/\/en.wikipedia.org\/wiki\/Romanian_property_bubble \"Romanian property bubble\") (2002–2007) [Polish property bubble](https:\/\/en.wikipedia.org\/wiki\/Polish_property_bubble \"Polish property bubble\") (2002–2008) [Canadian property bubble](https:\/\/en.wikipedia.org\/wiki\/Canadian_property_bubble \"Canadian property bubble\") (2002–) [Chinese property bubble](https:\/\/en.wikipedia.org\/wiki\/Chinese_property_bubble_\\(2005%E2%80%932011\\) \"Chinese property bubble (2005–2011)\") (2005–2011) [Lebanese housing bubble](https:\/\/en.wikipedia.org\/wiki\/Lebanese_housing_bubble \"Lebanese housing bubble\") (2005–2008) [Chinese stock bubble of 2007](https:\/\/en.wikipedia.org\/wiki\/Chinese_stock_bubble_of_2007 \"Chinese stock bubble of 2007\") [Uranium bubble of 2007](https:\/\/en.wikipedia.org\/wiki\/Uranium_bubble_of_2007 \"Uranium bubble of 2007\") |\n| [Information Age](https:\/\/en.wikipedia.org\/wiki\/Information_Age \"Information Age\") (2007–present) | [2000s commodities boom](https:\/\/en.wikipedia.org\/wiki\/2000s_commodities_boom \"2000s commodities boom\") (2008–2014) [Lebanese housing bubble](https:\/\/en.wikipedia.org\/wiki\/Lebanese_housing_bubble \"Lebanese housing bubble\") (2008–) [Corporate debt bubble](https:\/\/en.wikipedia.org\/wiki\/Corporate_debt_bubble \"Corporate debt bubble\") (2008–) [Australian property bubble](https:\/\/en.wikipedia.org\/wiki\/Australian_property_bubble \"Australian property bubble\") (2010–) [Cryptocurrency bubble](https:\/\/en.wikipedia.org\/wiki\/Cryptocurrency_bubble \"Cryptocurrency bubble\") (2011–) [Everything bubble](https:\/\/en.wikipedia.org\/wiki\/Everything_bubble \"Everything bubble\") (2020–21) [AI bubble](https:\/\/en.wikipedia.org\/wiki\/AI_bubble \"AI bubble\") (2022–) |\n| [Carbon bubble](https:\/\/en.wikipedia.org\/wiki\/Carbon_bubble \"Carbon bubble\") [Green bubble](https:\/\/en.wikipedia.org\/wiki\/Green_bubble \"Green bubble\") [Social media stock bubble](https:\/\/en.wikipedia.org\/wiki\/Social_media_stock_bubble \"Social media stock bubble\") [Unicorn bubble](https:\/\/en.wikipedia.org\/wiki\/Unicorn_bubble \"Unicorn bubble\") [U.S. higher education bubble](https:\/\/en.wikipedia.org\/wiki\/Higher_education_bubble_in_the_United_States \"Higher education bubble in the United States\") |   |\n\n| [v](https:\/\/en.wikipedia.org\/wiki\/Template:Financial_crises \"Template:Financial crises\") [t](https:\/\/en.wikipedia.org\/wiki\/Template_talk:Financial_crises \"Template talk:Financial crises\") [e](https:\/\/en.wikipedia.org\/wiki\/Special:EditPage\/Template:Financial_crises \"Special:EditPage\/Template:Financial crises\")[Financial crises](https:\/\/en.wikipedia.org\/wiki\/Financial_crisis \"Financial crisis\") |   |\n|---|---|\n| [Bank run](https:\/\/en.wikipedia.org\/wiki\/Bank_run \"Bank run\") [Commodity price shocks](https:\/\/en.wikipedia.org\/wiki\/Commodity_price_shocks \"Commodity price shocks\") [Credit crunch](https:\/\/en.wikipedia.org\/wiki\/Credit_crunch \"Credit crunch\") [Credit cycle](https:\/\/en.wikipedia.org\/wiki\/Credit_cycle \"Credit cycle\") [Currency crisis](https:\/\/en.wikipedia.org\/wiki\/Currency_crisis \"Currency crisis\") [Debt crisis](https:\/\/en.wikipedia.org\/wiki\/Debt_crisis \"Debt crisis\") [Energy crisis](https:\/\/en.wikipedia.org\/wiki\/Energy_crisis \"Energy crisis\") [Financial contagion](https:\/\/en.wikipedia.org\/wiki\/Financial_contagion \"Financial contagion\") [Social contagion](https:\/\/en.wikipedia.org\/wiki\/Social_contagion \"Social contagion\") [Flash crash](https:\/\/en.wikipedia.org\/wiki\/Flash_crash \"Flash crash\") [Hyperinflation](https:\/\/en.wikipedia.org\/wiki\/Hyperinflation \"Hyperinflation\") [Liquidity crisis](https:\/\/en.wikipedia.org\/wiki\/Liquidity_crisis \"Liquidity crisis\") [Accounting](https:\/\/en.wikipedia.org\/wiki\/Accounting_liquidity \"Accounting liquidity\") [Capital](https:\/\/en.wikipedia.org\/wiki\/Liquid_capital \"Liquid capital\") [Funding](https:\/\/en.wikipedia.org\/wiki\/Funding_liquidity \"Funding liquidity\") [Market](https:\/\/en.wikipedia.org\/wiki\/Market_liquidity \"Market liquidity\") [Minsky moment](https:\/\/en.wikipedia.org\/wiki\/Minsky_moment \"Minsky moment\") [Social crisis](https:\/\/en.wikipedia.org\/wiki\/Social_crisis \"Social crisis\") [Stock market crash](https:\/\/en.wikipedia.org\/wiki\/Stock_market_crash \"Stock market crash\") |   |\n| Pre-[1000](https:\/\/en.wikipedia.org\/wiki\/Commercial_revolution \"Commercial revolution\") | [Financial crisis of 33 CE](https:\/\/en.wikipedia.org\/wiki\/Financial_crisis_of_33 \"Financial crisis of 33\") [Crisis of the Third Century](https:\/\/en.wikipedia.org\/wiki\/Crisis_of_the_Third_Century \"Crisis of the Third Century\") (235–284 CE) |\n| [Commercial revolution](https:\/\/en.wikipedia.org\/wiki\/Commercial_revolution \"Commercial revolution\") (1000–1760) | [Great Bullion Famine](https:\/\/en.wikipedia.org\/wiki\/Great_Bullion_Famine \"Great Bullion Famine\") (c. 1400–c. 1500) [The Great Debasement](https:\/\/en.wikipedia.org\/wiki\/The_Great_Debasement \"The Great Debasement\") (1544–1551) [Spanish Price Revolution](https:\/\/en.wikipedia.org\/wiki\/Price_revolution \"Price revolution\") (c. 1550–c. 1650) [Dutch Republic stock market crashes](https:\/\/en.wikipedia.org\/wiki\/Financial_history_of_the_Dutch_Republic \"Financial history of the Dutch Republic\") (c. 1600–1760) *[Kipper und Wipper](https:\/\/en.wikipedia.org\/wiki\/Kipper_und_Wipper \"Kipper und Wipper\")* (1621–1623) [Tulip mania](https:\/\/en.wikipedia.org\/wiki\/Tulip_mania \"Tulip mania\") (1637) [South Sea bubble]() (1720) [Mississippi bubble](https:\/\/en.wikipedia.org\/wiki\/John_Law%27s_Company \"John Law's Company\") (1720) |\n| [1st Industrial Revolution](https:\/\/en.wikipedia.org\/wiki\/Industrial_Revolution \"Industrial Revolution\") (1760–1840) | [Amsterdam banking crisis of 1763](https:\/\/en.wikipedia.org\/wiki\/Amsterdam_banking_crisis_of_1763 \"Amsterdam banking crisis of 1763\") [Bengal Bubble of 1769](https:\/\/en.wikipedia.org\/wiki\/Bengal_Bubble_of_1769 \"Bengal Bubble of 1769\") (1769–1784) [British credit crisis of 1772–1773](https:\/\/en.wikipedia.org\/wiki\/British_credit_crisis_of_1772%E2%80%931773 \"British credit crisis of 1772–1773\") [Dutch Republic financial collapse](https:\/\/en.wikipedia.org\/wiki\/Financial_history_of_the_Dutch_Republic \"Financial history of the Dutch Republic\") (c. 1780–1795) [Copper Panic of 1789](https:\/\/en.wikipedia.org\/wiki\/Copper_Panic_of_1789 \"Copper Panic of 1789\") [Panic of 1792](https:\/\/en.wikipedia.org\/wiki\/Panic_of_1792 \"Panic of 1792\") [Panic of 1796–1797](https:\/\/en.wikipedia.org\/wiki\/Panic_of_1796%E2%80%931797 \"Panic of 1796–1797\") [Danish state bankruptcy of 1813](https:\/\/en.wikipedia.org\/wiki\/Danish_state_bankruptcy_of_1813 \"Danish state bankruptcy of 1813\") [Post-Napoleonic Irish grain price and land use shocks](https:\/\/en.wikipedia.org\/wiki\/Commodity_price_shocks \"Commodity price shocks\") (1815–1816) [Panic of 1819](https:\/\/en.wikipedia.org\/wiki\/Panic_of_1819 \"Panic of 1819\") [Panic of 1825](https:\/\/en.wikipedia.org\/wiki\/Panic_of_1825 \"Panic of 1825\") [Panic of 1837](https:\/\/en.wikipedia.org\/wiki\/Panic_of_1837 \"Panic of 1837\") |\n| 1840–1870 | [European potato failure](https:\/\/en.wikipedia.org\/wiki\/European_potato_failure \"European potato failure\") (1845–1856) [Great Irish Famine](https:\/\/en.wikipedia.org\/wiki\/Great_Famine_\\(Ireland\\) \"Great Famine (Ireland)\") [Highland Potato Famine](https:\/\/en.wikipedia.org\/wiki\/Highland_Potato_Famine \"Highland Potato Famine\") [Panic of 1847](https:\/\/en.wikipedia.org\/wiki\/Panic_of_1847 \"Panic of 1847\") [Panic of 1857](https:\/\/en.wikipedia.org\/wiki\/Panic_of_1857 \"Panic of 1857\") [Panic of 1866](https:\/\/en.wikipedia.org\/wiki\/Panic_of_1866 \"Panic of 1866\") [Black Friday](https:\/\/en.wikipedia.org\/wiki\/Black_Friday_\\(1869\\) \"Black Friday (1869)\") (1869) |\n| [2nd Industrial Revolution](https:\/\/en.wikipedia.org\/wiki\/Second_Industrial_Revolution \"Second Industrial Revolution\") (1870–1914) | [Panic of 1873](https:\/\/en.wikipedia.org\/wiki\/Panic_of_1873 \"Panic of 1873\") [Paris Bourse crash of 1882](https:\/\/en.wikipedia.org\/wiki\/Paris_Bourse_crash_of_1882 \"Paris Bourse crash of 1882\") [Panic of 1884](https:\/\/en.wikipedia.org\/wiki\/Panic_of_1884 \"Panic of 1884\") [Arendal crash](https:\/\/en.wikipedia.org\/wiki\/Arendal_crash \"Arendal crash\") (1886) [Baring crisis](https:\/\/en.wikipedia.org\/wiki\/Baring_crisis \"Baring crisis\") (1890) [Encilhamento](https:\/\/en.wikipedia.org\/wiki\/Encilhamento \"Encilhamento\") (1890–1893) [Panic of 1893](https:\/\/en.wikipedia.org\/wiki\/Panic_of_1893 \"Panic of 1893\") [Australian banking crisis of 1893](https:\/\/en.wikipedia.org\/wiki\/Australian_banking_crisis_of_1893 \"Australian banking crisis of 1893\") [Black Monday](https:\/\/en.wikipedia.org\/wiki\/Black_Monday_\\(1894\\) \"Black Monday (1894)\") (1894) [Panic of 1896](https:\/\/en.wikipedia.org\/wiki\/Panic_of_1896 \"Panic of 1896\") [Panic of 1901](https:\/\/en.wikipedia.org\/wiki\/Panic_of_1901 \"Panic of 1901\") [Panic of 1907](https:\/\/en.wikipedia.org\/wiki\/Panic_of_1907 \"Panic of 1907\") [Shanghai rubber stock market crisis](https:\/\/en.wikipedia.org\/wiki\/Shanghai_rubber_stock_market_crisis \"Shanghai rubber stock market crisis\") (1910) [Panic of 1910–11](https:\/\/en.wikipedia.org\/wiki\/Panic_of_1910%E2%80%9311 \"Panic of 1910–11\") [Financial crisis of 1914](https:\/\/en.wikipedia.org\/wiki\/Financial_crisis_of_1914 \"Financial crisis of 1914\") |\n| [Interwar period](https:\/\/en.wikipedia.org\/wiki\/Interwar_period \"Interwar period\") (1918–1939) | [Early Soviet hyperinflation](https:\/\/en.wikipedia.org\/wiki\/Hyperinflation_in_early_Soviet_Russia \"Hyperinflation in early Soviet Russia\") (1917–1924) [Weimar Republic hyperinflation](https:\/\/en.wikipedia.org\/wiki\/Hyperinflation_in_the_Weimar_Republic \"Hyperinflation in the Weimar Republic\") (1921–1923) [Shōwa financial crisis](https:\/\/en.wikipedia.org\/wiki\/Sh%C5%8Dwa_financial_crisis \"Shōwa financial crisis\") (1927) [Wall Street crash of 1929](https:\/\/en.wikipedia.org\/wiki\/Wall_Street_crash_of_1929 \"Wall Street crash of 1929\") [Panic of 1930](https:\/\/en.wikipedia.org\/wiki\/Panic_of_1930 \"Panic of 1930\") [Chinese hyperinflation](https:\/\/en.wikipedia.org\/wiki\/Chinese_hyperinflation \"Chinese hyperinflation\") (1937–1950) |\n| [Wartime period](https:\/\/en.wikipedia.org\/wiki\/World_War_II \"World War II\") (1939–1945) | [Greek hyperinflation](https:\/\/en.wikipedia.org\/wiki\/Hyperinflation_in_Greece \"Hyperinflation in Greece\") (1941–1946) [Chinese hyperinflation](https:\/\/en.wikipedia.org\/wiki\/Chinese_hyperinflation \"Chinese hyperinflation\") (1937–1950) |\n| [Post–WWII expansion](https:\/\/en.wikipedia.org\/wiki\/Post%E2%80%93World_War_II_economic_expansion \"Post–World War II economic expansion\") (1945–1973) | [Hungarian pengő hyperinflation](https:\/\/en.wikipedia.org\/wiki\/Hungarian_peng%C5%91#Hyperinflation \"Hungarian pengő\") (1945–1946) [Kennedy Slide of 1962](https:\/\/en.wikipedia.org\/wiki\/Kennedy_Slide_of_1962 \"Kennedy Slide of 1962\") [1963–1965 Indonesian hyperinflation](https:\/\/en.wikipedia.org\/w\/index.php?title=1963%E2%80%931965_Indonesian_hyperinflation&action=edit&redlink=1 \"1963–1965 Indonesian hyperinflation (page does not exist)\") [Chinese hyperinflation](https:\/\/en.wikipedia.org\/wiki\/Chinese_hyperinflation \"Chinese hyperinflation\") (1937–1950) |\n| [Great Inflation](https:\/\/en.wikipedia.org\/wiki\/Stagflation \"Stagflation\") (1973–1982) | [1970s energy crisis](https:\/\/en.wikipedia.org\/wiki\/1970s_energy_crisis \"1970s energy crisis\") (1973–1980) [1973 oil crisis](https:\/\/en.wikipedia.org\/wiki\/1973_oil_crisis \"1973 oil crisis\") [1973–1974 stock market crash](https:\/\/en.wikipedia.org\/wiki\/1973%E2%80%931974_stock_market_crash \"1973–1974 stock market crash\") [Secondary banking crisis of 1973–1975](https:\/\/en.wikipedia.org\/wiki\/Secondary_banking_crisis_of_1973%E2%80%931975 \"Secondary banking crisis of 1973–1975\") [Steel crisis](https:\/\/en.wikipedia.org\/wiki\/Steel_crisis \"Steel crisis\") (1973–1982) [Latin American debt crisis](https:\/\/en.wikipedia.org\/wiki\/Latin_American_debt_crisis \"Latin American debt crisis\") (1975–1982) [1976 sterling crisis](https:\/\/en.wikipedia.org\/wiki\/1976_sterling_crisis \"1976 sterling crisis\") [1979 oil crisis](https:\/\/en.wikipedia.org\/wiki\/1979_oil_crisis \"1979 oil crisis\") [Brazilian hyperinflation](https:\/\/en.wikipedia.org\/wiki\/Hyperinflation_in_Brazil \"Hyperinflation in Brazil\") (1980–1982) |\n| [Great Moderation](https:\/\/en.wikipedia.org\/wiki\/Great_Moderation \"Great Moderation\")\/ Great Regression (1982–2007) | [Brazilian hyperinflation](https:\/\/en.wikipedia.org\/wiki\/Hyperinflation_in_Brazil \"Hyperinflation in Brazil\") (1982–1994) [Souk Al-Manakh stock market crash](https:\/\/en.wikipedia.org\/wiki\/Souk_Al-Manakh_stock_market_crash \"Souk Al-Manakh stock market crash\") (1982) [Chilean crisis of 1982](https:\/\/en.wikipedia.org\/wiki\/Crisis_of_1982 \"Crisis of 1982\") [1983 Israel bank stock crisis](https:\/\/en.wikipedia.org\/wiki\/1983_Israel_bank_stock_crisis \"1983 Israel bank stock crisis\") [Black Saturday (1983)](https:\/\/en.wikipedia.org\/wiki\/Black_Saturday_\\(1983\\) \"Black Saturday (1983)\") [Savings and loan crisis](https:\/\/en.wikipedia.org\/wiki\/Savings_and_loan_crisis \"Savings and loan crisis\") (1986–1995) [Cameroonian economic crisis](https:\/\/en.wikipedia.org\/wiki\/Cameroonian_economic_crisis \"Cameroonian economic crisis\") (1987–2000s) [Black Monday (1987)](https:\/\/en.wikipedia.org\/wiki\/Black_Monday_\\(1987\\) \"Black Monday (1987)\") [1988–1992 Norwegian banking crisis](https:\/\/en.wikipedia.org\/wiki\/1988%E2%80%931992_Norwegian_banking_crisis \"1988–1992 Norwegian banking crisis\") [Japanese asset price bubble crash](https:\/\/en.wikipedia.org\/wiki\/Japanese_asset_price_bubble \"Japanese asset price bubble\") (1990–1992) [Rhode Island banking crisis](https:\/\/en.wikipedia.org\/wiki\/Rhode_Island_banking_crisis \"Rhode Island banking crisis\") (1990–1992) [1991 Indian economic crisis](https:\/\/en.wikipedia.org\/wiki\/1991_Indian_economic_crisis \"1991 Indian economic crisis\") [1990–1994 Swedish financial crisis](https:\/\/en.wikipedia.org\/wiki\/1990%E2%80%931994_Swedish_financial_crisis \"1990–1994 Swedish financial crisis\") [1990s Finnish banking crisis](https:\/\/en.wikipedia.org\/wiki\/1990s_Finnish_banking_crisis \"1990s Finnish banking crisis\") [1990s Armenian energy crisis](https:\/\/en.wikipedia.org\/wiki\/1990s_Armenian_energy_crisis \"1990s Armenian energy crisis\") [Cuban Special Period](https:\/\/en.wikipedia.org\/wiki\/Special_Period \"Special Period\") (1991–2000) [Black Wednesday (1992 Sterling crisis)](https:\/\/en.wikipedia.org\/wiki\/Black_Wednesday \"Black Wednesday\") [Hyperinflation in Serbia and Montenegro](https:\/\/en.wikipedia.org\/wiki\/Hyperinflation_in_Serbia_and_Montenegro \"Hyperinflation in Serbia and Montenegro\") (1992–1994) [1994 bond market crisis](https:\/\/en.wikipedia.org\/wiki\/1994_bond_market_crisis \"1994 bond market crisis\") [Venezuelan banking crisis of 1994](https:\/\/en.wikipedia.org\/wiki\/Venezuelan_banking_crisis_of_1994 \"Venezuelan banking crisis of 1994\") [1994 Papua New Guinea financial crisis](https:\/\/en.wikipedia.org\/wiki\/1994_Papua_New_Guinea_financial_crisis \"1994 Papua New Guinea financial crisis\") [Mexican peso crisis](https:\/\/en.wikipedia.org\/wiki\/Mexican_peso_crisis \"Mexican peso crisis\") (1994–1996) [1997 Asian financial crisis](https:\/\/en.wikipedia.org\/wiki\/1997_Asian_financial_crisis \"1997 Asian financial crisis\") [October 27, 1997, mini-crash](https:\/\/en.wikipedia.org\/wiki\/October_27,_1997,_mini-crash \"October 27, 1997, mini-crash\") [1998 Russian financial crisis](https:\/\/en.wikipedia.org\/wiki\/1998_Russian_financial_crisis \"1998 Russian financial crisis\") [1998–1999 Ecuador economic crisis](https:\/\/en.wikipedia.org\/wiki\/1998%E2%80%931999_Ecuador_economic_crisis \"1998–1999 Ecuador economic crisis\") [1998–2002 Argentine great depression](https:\/\/en.wikipedia.org\/wiki\/1998%E2%80%932002_Argentine_great_depression \"1998–2002 Argentine great depression\") [Samba effect](https:\/\/en.wikipedia.org\/wiki\/Samba_effect \"Samba effect\") (1999) [Dot-com bubble](https:\/\/en.wikipedia.org\/wiki\/Dot-com_bubble \"Dot-com bubble\") (2000–2004) [9\/11 stock market crash](https:\/\/en.wikipedia.org\/wiki\/Economic_effects_of_the_September_11_attacks \"Economic effects of the September 11 attacks\") (2001) [2001 Turkish economic crisis](https:\/\/en.wikipedia.org\/wiki\/2001_Turkish_economic_crisis \"2001 Turkish economic crisis\") [South American economic crisis of 2002](https:\/\/en.wikipedia.org\/wiki\/South_American_economic_crisis_of_2002 \"South American economic crisis of 2002\") [Stock market downturn of 2002](https:\/\/en.wikipedia.org\/wiki\/Stock_market_downturn_of_2002 \"Stock market downturn of 2002\") [2002 Uruguay banking crisis](https:\/\/en.wikipedia.org\/wiki\/2002_Uruguay_banking_crisis \"2002 Uruguay banking crisis\") [2003 Myanmar banking crisis](https:\/\/en.wikipedia.org\/wiki\/2003_Myanmar_banking_crisis \"2003 Myanmar banking crisis\") [2000s energy crisis](https:\/\/en.wikipedia.org\/wiki\/2000s_energy_crisis \"2000s energy crisis\") (2003–2008) [2004 Argentine energy crisis](https:\/\/en.wikipedia.org\/wiki\/2004_Argentine_energy_crisis \"2004 Argentine energy crisis\") [Chinese stock bubble of 2007](https:\/\/en.wikipedia.org\/wiki\/Chinese_stock_bubble_of_2007 \"Chinese stock bubble of 2007\") [Hyperinflation in Zimbabwe](https:\/\/en.wikipedia.org\/wiki\/Hyperinflation_in_Zimbabwe \"Hyperinflation in Zimbabwe\") (2007–present) |\n| [Great Recession](https:\/\/en.wikipedia.org\/wiki\/Great_Recession \"Great Recession\") (2007–2009) | [2008 financial crisis](https:\/\/en.wikipedia.org\/wiki\/2008_financial_crisis \"2008 financial crisis\") [September 2008](https:\/\/en.wikipedia.org\/wiki\/Global_financial_crisis_in_September_2008 \"Global financial crisis in September 2008\") [October 2008](https:\/\/en.wikipedia.org\/wiki\/Global_financial_crisis_in_October_2008 \"Global financial crisis in October 2008\") [November 2008](https:\/\/en.wikipedia.org\/wiki\/Global_financial_crisis_in_November_2008 \"Global financial crisis in November 2008\") [December 2008](https:\/\/en.wikipedia.org\/wiki\/Global_financial_crisis_in_December_2008 \"Global financial crisis in December 2008\") [2009](https:\/\/en.wikipedia.org\/wiki\/Global_financial_crisis_in_2009 \"Global financial crisis in 2009\") [Subprime mortgage crisis](https:\/\/en.wikipedia.org\/wiki\/Subprime_mortgage_crisis \"Subprime mortgage crisis\") [2000s U.S. housing market correction](https:\/\/en.wikipedia.org\/wiki\/2000s_United_States_housing_market_correction \"2000s United States housing market correction\") [U.S. bear market of 2007–2009](https:\/\/en.wikipedia.org\/wiki\/United_States_bear_market_of_2007%E2%80%932009 \"United States bear market of 2007–2009\") [2008 Latvian financial crisis](https:\/\/en.wikipedia.org\/wiki\/2008_Latvian_financial_crisis \"2008 Latvian financial crisis\") [2008–2009 Belgian financial crisis](https:\/\/en.wikipedia.org\/wiki\/2008%E2%80%932009_Belgian_financial_crisis \"2008–2009 Belgian financial crisis\") [Great Recession in Russia](https:\/\/en.wikipedia.org\/wiki\/Great_Recession_in_Russia \"Great Recession in Russia\") [2008–2009 Ukrainian financial crisis](https:\/\/en.wikipedia.org\/wiki\/2008%E2%80%932009_Ukrainian_financial_crisis \"2008–2009 Ukrainian financial crisis\") [2008–2011 Icelandic financial crisis](https:\/\/en.wikipedia.org\/wiki\/2008%E2%80%932011_Icelandic_financial_crisis \"2008–2011 Icelandic financial crisis\") [Post-2008 Irish banking crisis](https:\/\/en.wikipedia.org\/wiki\/Post-2008_Irish_banking_crisis \"Post-2008 Irish banking crisis\") [2008–2014 Spanish financial crisis](https:\/\/en.wikipedia.org\/wiki\/2008%E2%80%932014_Spanish_financial_crisis \"2008–2014 Spanish financial crisis\") [Blue Monday Crash 2009](https:\/\/en.wikipedia.org\/wiki\/Blue_Monday_Crash_2009 \"Blue Monday Crash 2009\") [Euro area crisis](https:\/\/en.wikipedia.org\/wiki\/Euro_area_crisis \"Euro area crisis\") [Greek government-debt crisis](https:\/\/en.wikipedia.org\/wiki\/Greek_government-debt_crisis \"Greek government-debt crisis\") |\n| [Information Age](https:\/\/en.wikipedia.org\/wiki\/Information_Age \"Information Age\") (2009–present) | [2009 Dubai debt standstill](https:\/\/en.wikipedia.org\/wiki\/Dubai_World \"Dubai World\") [Venezuelan banking crisis of 2009–2010](https:\/\/en.wikipedia.org\/wiki\/Venezuelan_banking_crisis_of_2009%E2%80%932010 \"Venezuelan banking crisis of 2009–2010\") [2010–2014 Portuguese financial crisis](https:\/\/en.wikipedia.org\/wiki\/2010%E2%80%932014_Portuguese_financial_crisis \"2010–2014 Portuguese financial crisis\") [Energy crisis in Venezuela](https:\/\/en.wikipedia.org\/wiki\/Energy_crisis_in_Venezuela \"Energy crisis in Venezuela\") (2010–present) [Syrian economic crisis](https:\/\/en.wikipedia.org\/wiki\/Economy_of_Syria \"Economy of Syria\") (2011–present) [August 2011 stock markets fall](https:\/\/en.wikipedia.org\/wiki\/August_2011_stock_markets_fall \"August 2011 stock markets fall\") [2011 Bangladesh share market scam](https:\/\/en.wikipedia.org\/wiki\/2011_Bangladesh_share_market_scam \"2011 Bangladesh share market scam\") [2012–2013 Cypriot financial crisis](https:\/\/en.wikipedia.org\/wiki\/2012%E2%80%932013_Cypriot_financial_crisis \"2012–2013 Cypriot financial crisis\") [Chinese Banking Liquidity Crisis of 2013](https:\/\/en.wikipedia.org\/wiki\/Chinese_Banking_Liquidity_Crisis_of_2013 \"Chinese Banking Liquidity Crisis of 2013\") [Venezuela economic crisis](https:\/\/en.wikipedia.org\/wiki\/2013%E2%80%93present_economic_crisis_in_Venezuela \"2013–present economic crisis in Venezuela\") (2013–present) [2014 Brazilian economic crisis](https:\/\/en.wikipedia.org\/wiki\/2014_Brazilian_economic_crisis \"2014 Brazilian economic crisis\") [Puerto Rican government-debt crisis](https:\/\/en.wikipedia.org\/wiki\/Puerto_Rican_government-debt_crisis \"Puerto Rican government-debt crisis\") (2014–2022) [Russian financial crisis (2014–2016)](https:\/\/en.wikipedia.org\/wiki\/Russian_financial_crisis_\\(2014%E2%80%932016\\) \"Russian financial crisis (2014–2016)\") [2015–16 Nepal blockade](https:\/\/en.wikipedia.org\/wiki\/2015%E2%80%9316_Nepal_blockade \"2015–16 Nepal blockade\") [2015–2016 Chinese stock market turbulence](https:\/\/en.wikipedia.org\/wiki\/2015%E2%80%932016_Chinese_stock_market_turbulence \"2015–2016 Chinese stock market turbulence\") [2015–2016 stock market selloff](https:\/\/en.wikipedia.org\/wiki\/2015%E2%80%932016_stock_market_selloff \"2015–2016 stock market selloff\") [Brexit stock market crash](https:\/\/en.wikipedia.org\/wiki\/Economic_effects_of_Brexit \"Economic effects of Brexit\") (2016) [Hyperinflation in Venezuela](https:\/\/en.wikipedia.org\/wiki\/Hyperinflation_in_Venezuela \"Hyperinflation in Venezuela\") (2016–2022) [2017 Sri Lankan fuel crisis](https:\/\/en.wikipedia.org\/wiki\/2017_Sri_Lankan_fuel_crisis \"2017 Sri Lankan fuel crisis\") [Ghana banking crisis](https:\/\/en.wikipedia.org\/wiki\/Ghana_banking_crisis \"Ghana banking crisis\") (2017–2018) [Turkish economic crisis (2018–current)](https:\/\/en.wikipedia.org\/wiki\/Turkish_economic_crisis_\\(2018%E2%80%93current\\) \"Turkish economic crisis (2018–current)\") [Lebanese liquidity crisis](https:\/\/en.wikipedia.org\/wiki\/Lebanese_liquidity_crisis \"Lebanese liquidity crisis\") (2019–present) [Sri Lankan economic crisis (2019–2024)](https:\/\/en.wikipedia.org\/wiki\/Sri_Lankan_economic_crisis_\\(2019%E2%80%932024\\) \"Sri Lankan economic crisis (2019–2024)\") [COVID-19 pandemic](https:\/\/en.wikipedia.org\/wiki\/Economic_impact_of_the_COVID-19_pandemic \"Economic impact of the COVID-19 pandemic\") [Financial market impact](https:\/\/en.wikipedia.org\/wiki\/Financial_market_impact_of_the_COVID-19_pandemic \"Financial market impact of the COVID-19 pandemic\") [2020 stock market crash](https:\/\/en.wikipedia.org\/wiki\/2020_stock_market_crash \"2020 stock market crash\") [Recession](https:\/\/en.wikipedia.org\/wiki\/COVID-19_recession \"COVID-19 recession\") [Chinese property sector crisis (2020–present)](https:\/\/en.wikipedia.org\/wiki\/Chinese_property_sector_crisis_\\(2020%E2%80%93present\\) \"Chinese property sector crisis (2020–present)\") [2021–2023 inflation surge](https:\/\/en.wikipedia.org\/wiki\/2021%E2%80%932023_inflation_surge \"2021–2023 inflation surge\") [2022 Russian financial crisis](https:\/\/en.wikipedia.org\/wiki\/Economic_impact_of_the_Russo-Ukrainian_war_\\(2022%E2%80%93present\\) \"Economic impact of the Russo-Ukrainian war (2022–present)\") [Pakistani economic crisis (2021–2024)](https:\/\/en.wikipedia.org\/wiki\/Pakistani_economic_crisis_\\(2021%E2%80%932024\\) \"Pakistani economic crisis (2021–2024)\") [2022 stock market decline](https:\/\/en.wikipedia.org\/wiki\/2022_stock_market_decline \"2022 stock market decline\") [German economic crisis (2022–present)](https:\/\/en.wikipedia.org\/wiki\/German_economic_crisis_\\(2022%E2%80%93present\\) \"German economic crisis (2022–present)\") [2023 United States banking crisis](https:\/\/en.wikipedia.org\/wiki\/2023_United_States_banking_crisis \"2023 United States banking crisis\") [2023–2024 Egyptian financial crisis](https:\/\/en.wikipedia.org\/wiki\/2023%E2%80%932024_Egyptian_financial_crisis \"2023–2024 Egyptian financial crisis\") [2025 stock market crash](https:\/\/en.wikipedia.org\/wiki\/2025_stock_market_crash \"2025 stock market crash\") |\n| [List of banking crises](https:\/\/en.wikipedia.org\/wiki\/List_of_banking_crises \"List of banking crises\") [List of economic crises](https:\/\/en.wikipedia.org\/wiki\/List_of_economic_crises \"List of economic crises\") [List of sovereign debt crises](https:\/\/en.wikipedia.org\/wiki\/List_of_sovereign_debt_crises \"List of sovereign debt crises\") [List of stock market crashes and bear markets](https:\/\/en.wikipedia.org\/wiki\/List_of_stock_market_crashes_and_bear_markets \"List of stock market crashes and bear markets\") |   |\n\n| [v](https:\/\/en.wikipedia.org\/wiki\/Template:United_States_%E2%80%93_Commonwealth_of_Nations_recessions \"Template:United States – Commonwealth of Nations recessions\") [t](https:\/\/en.wikipedia.org\/wiki\/Template_talk:United_States_%E2%80%93_Commonwealth_of_Nations_recessions \"Template talk:United States – Commonwealth of Nations recessions\") [e](https:\/\/en.wikipedia.org\/wiki\/Special:EditPage\/Template:United_States_%E2%80%93_Commonwealth_of_Nations_recessions \"Special:EditPage\/Template:United States – Commonwealth of Nations recessions\")[Economic history of the United States](https:\/\/en.wikipedia.org\/wiki\/Economic_history_of_the_United_States \"Economic history of the United States\") and Commonwealth of Nations countries |   |\n|---|---|\n| [Commercial revolution](https:\/\/en.wikipedia.org\/wiki\/Commercial_revolution \"Commercial revolution\") (1000–1760) | [Great Bullion Famine](https:\/\/en.wikipedia.org\/wiki\/Great_Bullion_Famine \"Great Bullion Famine\") (c. 1400–c. 1500) [Great Slump](https:\/\/en.wikipedia.org\/wiki\/Great_Slump_\\(15th_century\\) \"Great Slump (15th century)\") (1430–1490) [The Great Debasement](https:\/\/en.wikipedia.org\/wiki\/The_Great_Debasement \"The Great Debasement\") (1544–1551) [Financial Revolution](https:\/\/en.wikipedia.org\/wiki\/Financial_Revolution \"Financial Revolution\") (1690–1800) [Slump of 1706](https:\/\/en.wikipedia.org\/wiki\/War_of_the_Spanish_Succession \"War of the Spanish Succession\") [Great Frost of 1709](https:\/\/en.wikipedia.org\/wiki\/Great_Frost_of_1709 \"Great Frost of 1709\") [South Sea bubble]() (1713–1720) [Mississippi bubble](https:\/\/en.wikipedia.org\/wiki\/John_Law%27s_Company \"John Law's Company\") (1717–1720) [Economic impact of the Seven Years' War](https:\/\/en.wikipedia.org\/wiki\/Financial_costs_of_the_Seven_Years%27_War \"Financial costs of the Seven Years' War\") (1754–1763) |\n| [1st Industrial Revolution](https:\/\/en.wikipedia.org\/wiki\/Industrial_Revolution \"Industrial Revolution\")\/ [Market Revolution](https:\/\/en.wikipedia.org\/wiki\/Market_Revolution \"Market Revolution\") (1760–1870) | Industrial Revolution [Scotland](https:\/\/en.wikipedia.org\/wiki\/Industrial_Revolution_in_Scotland \"Industrial Revolution in Scotland\") [United States](https:\/\/en.wikipedia.org\/wiki\/Industrial_Revolution_in_the_United_States \"Industrial Revolution in the United States\") [Wales](https:\/\/en.wikipedia.org\/wiki\/Industrial_Revolution_in_Wales \"Industrial Revolution in Wales\") [Bengal Bubble of 1769](https:\/\/en.wikipedia.org\/wiki\/Bengal_Bubble_of_1769 \"Bengal Bubble of 1769\") (1769–1784) [British credit crisis of 1772–1773](https:\/\/en.wikipedia.org\/wiki\/British_credit_crisis_of_1772%E2%80%931773 \"British credit crisis of 1772–1773\") [American Revolutionary War inflation](https:\/\/en.wikipedia.org\/wiki\/Financial_costs_of_the_American_Revolutionary_War \"Financial costs of the American Revolutionary War\") (1775–1783) [Panic of 1785](https:\/\/en.wikipedia.org\/wiki\/List_of_recessions_in_the_United_States#Early_recessions_and_crises_\\(1785%E2%80%931836\\) \"List of recessions in the United States\") (1785–1788) [Copper Panic of 1789](https:\/\/en.wikipedia.org\/wiki\/Copper_Panic_of_1789 \"Copper Panic of 1789\")\/[Panic of 1792](https:\/\/en.wikipedia.org\/wiki\/Panic_of_1792 \"Panic of 1792\") (1789–1793) [Canal Mania](https:\/\/en.wikipedia.org\/wiki\/Canal_Mania \"Canal Mania\") (c. 1790–c. 1810) [Panic of 1796–1797](https:\/\/en.wikipedia.org\/wiki\/Panic_of_1796%E2%80%931797 \"Panic of 1796–1797\") (1796–1799) [1802–1804 recession](https:\/\/en.wikipedia.org\/wiki\/List_of_recessions_in_the_United_States#Early_recessions_and_crises_\\(1785%E2%80%931836\\) \"List of recessions in the United States\") [Carolina gold rush](https:\/\/en.wikipedia.org\/wiki\/Carolina_gold_rush \"Carolina gold rush\") (1802–1825) [Depression of 1807](https:\/\/en.wikipedia.org\/wiki\/List_of_recessions_in_the_United_States#Early_recessions_and_crises_\\(1785%E2%80%931836\\) \"List of recessions in the United States\") (1807–1810) [1810s Alabama real estate bubble](https:\/\/en.wikipedia.org\/wiki\/Alabama_real_estate_bubble_of_the_1810s \"Alabama real estate bubble of the 1810s\") [Alabama Fever](https:\/\/en.wikipedia.org\/wiki\/Alabama_Fever \"Alabama Fever\") [1812 recession](https:\/\/en.wikipedia.org\/wiki\/List_of_recessions_in_the_United_States#Early_recessions_and_crises_\\(1785%E2%80%931836\\) \"List of recessions in the United States\") [Post-Napoleonic Depression](https:\/\/en.wikipedia.org\/wiki\/Post-Napoleonic_Depression \"Post-Napoleonic Depression\") (1815–1821) [1822–23 recession](https:\/\/en.wikipedia.org\/wiki\/List_of_recessions_in_the_United_States#Early_recessions_and_crises_\\(1785%E2%80%931836\\) \"List of recessions in the United States\") [Panic of 1825](https:\/\/en.wikipedia.org\/wiki\/Panic_of_1825 \"Panic of 1825\") [Panic of 1826](https:\/\/en.wikipedia.org\/wiki\/Panic_of_1826 \"Panic of 1826\") [1828–29 recession](https:\/\/en.wikipedia.org\/wiki\/List_of_recessions_in_the_United_States#Early_recessions_and_crises_\\(1785%E2%80%931836\\) \"List of recessions in the United States\") [Georgia Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Georgia_Gold_Rush \"Georgia Gold Rush\") (1828–c. 1840) [1830s Chicago real estate bubble](https:\/\/en.wikipedia.org\/wiki\/Chicago_real_estate_bubble_of_the_1830s \"Chicago real estate bubble of the 1830s\") [1833–34 recession](https:\/\/en.wikipedia.org\/wiki\/List_of_recessions_in_the_United_States#Early_recessions_and_crises_\\(1785%E2%80%931836\\) \"List of recessions in the United States\") [Panic of 1837](https:\/\/en.wikipedia.org\/wiki\/Panic_of_1837 \"Panic of 1837\") (1836–1838 and 1839–1843) [U.S. state defaults in the 1840s](https:\/\/en.wikipedia.org\/wiki\/U.S._state_defaults_in_the_1840s \"U.S. state defaults in the 1840s\") [Railway Mania](https:\/\/en.wikipedia.org\/wiki\/Railway_Mania \"Railway Mania\") (c. 1840–c. 1850) [Plank Road Boom](https:\/\/en.wikipedia.org\/wiki\/Plank_Road_Boom \"Plank Road Boom\") (1844–c. 1855) [1845–46 recession](https:\/\/en.wikipedia.org\/wiki\/List_of_recessions_in_the_United_States#Free_Banking_Era_to_the_Great_Depression_\\(1836%E2%80%931929\\) \"List of recessions in the United States\") [Panic of 1847](https:\/\/en.wikipedia.org\/wiki\/Panic_of_1847 \"Panic of 1847\") (1847–1848) [California gold rush](https:\/\/en.wikipedia.org\/wiki\/California_gold_rush \"California gold rush\") (1848–1855) [British Columbia gold rushes](https:\/\/en.wikipedia.org\/wiki\/British_Columbia_gold_rushes \"British Columbia gold rushes\") [Queen Charlottes Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Queen_Charlottes_Gold_Rush \"Queen Charlottes Gold Rush\"), 1851 [Fraser Canyon Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Fraser_Canyon_Gold_Rush \"Fraser Canyon Gold Rush\"), 1858 [Rock Creek Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Rock_Creek_Gold_Rush \"Rock Creek Gold Rush\"), 1859 [Similkameen Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Similkameen_Gold_Rush \"Similkameen Gold Rush\"), 1860 [Stikine Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Stikine_Gold_Rush \"Stikine Gold Rush\"), 1861 [Cariboo Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Cariboo_Gold_Rush \"Cariboo Gold Rush\"), 1861–1867 [Wild Horse Creek Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Fisherville,_British_Columbia \"Fisherville, British Columbia\"), 1863–1870 [Leechtown Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Leechtown,_British_Columbia \"Leechtown, British Columbia\"), 1864–1865 [Big Bend Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Big_Bend_Gold_Rush \"Big Bend Gold Rush\"), c. 1865 [Omineca Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Omineca_Gold_Rush \"Omineca Gold Rush\"), 1869 [Victorian gold rush](https:\/\/en.wikipedia.org\/wiki\/Victorian_gold_rush \"Victorian gold rush\") (1851–c. 1870) [New South Wales gold rush](https:\/\/en.wikipedia.org\/wiki\/New_South_Wales_gold_rush \"New South Wales gold rush\") (1851–1880) [Australian gold rushes](https:\/\/en.wikipedia.org\/wiki\/Australian_gold_rushes \"Australian gold rushes\") (1851–1914) [1853–54 recession](https:\/\/en.wikipedia.org\/wiki\/List_of_recessions_in_the_United_States#Free_Banking_Era_to_the_Great_Depression_\\(1836%E2%80%931929\\) \"List of recessions in the United States\") [Panic of 1857](https:\/\/en.wikipedia.org\/wiki\/Panic_of_1857 \"Panic of 1857\") (1857–1858) [Pike's Peak gold rush](https:\/\/en.wikipedia.org\/wiki\/Pike%27s_Peak_gold_rush \"Pike's Peak gold rush\") (1858–1861) [Pennsylvania oil rush](https:\/\/en.wikipedia.org\/wiki\/Pennsylvania_oil_rush \"Pennsylvania oil rush\") (1859–1891) [1860–61 recession](https:\/\/en.wikipedia.org\/wiki\/List_of_recessions_in_the_United_States#Free_Banking_Era_to_the_Great_Depression_\\(1836%E2%80%931929\\) \"List of recessions in the United States\") [Colorado River mining boom](https:\/\/en.wikipedia.org\/wiki\/Steamboats_of_the_Colorado_River \"Steamboats of the Colorado River\") (1861–1864) [Otago gold rush](https:\/\/en.wikipedia.org\/wiki\/Otago_gold_rush \"Otago gold rush\") (1861–1864) [U.S. Civil War economy](https:\/\/en.wikipedia.org\/wiki\/Economic_history_of_the_American_Civil_War \"Economic history of the American Civil War\") (1861–1865) [First Nova Scotia Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Gold_mining_in_Nova_Scotia \"Gold mining in Nova Scotia\") (1861–1874) [West Coast gold rush](https:\/\/en.wikipedia.org\/wiki\/West_Coast_gold_rush \"West Coast gold rush\") (1864–1867) [Panic of 1866](https:\/\/en.wikipedia.org\/wiki\/Panic_of_1866 \"Panic of 1866\") (1865–1867) [Vermilion Lake gold rush](https:\/\/en.wikipedia.org\/wiki\/Vermilion_Lake_gold_rush \"Vermilion Lake gold rush\") (1865–1867) [Kildonan Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Kildonan_Gold_Rush \"Kildonan Gold Rush\") (1869) [Black Friday](https:\/\/en.wikipedia.org\/wiki\/Black_Friday_\\(1869\\) \"Black Friday (1869)\") (1869–1870) |\n| [Gilded Age](https:\/\/en.wikipedia.org\/wiki\/Gilded_Age \"Gilded Age\")\/ [2nd Industrial Revolution](https:\/\/en.wikipedia.org\/wiki\/Second_Industrial_Revolution \"Second Industrial Revolution\") (1870–1914) | [Coromandel Gold Rushes](https:\/\/en.wikipedia.org\/wiki\/Coromandel_Gold_Rushes \"Coromandel Gold Rushes\") (c. 1870–c. 1890) [Cassiar Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Cassiar_Country \"Cassiar Country\") (c. 1870–c. 1890) [Long Depression](https:\/\/en.wikipedia.org\/wiki\/Long_Depression \"Long Depression\") 1873–1879; [Panic of 1873](https:\/\/en.wikipedia.org\/wiki\/Panic_of_1873 \"Panic of 1873\") [Black Hills gold rush](https:\/\/en.wikipedia.org\/wiki\/Black_Hills_gold_rush \"Black Hills gold rush\") (1874–1880) [Colorado Silver Boom](https:\/\/en.wikipedia.org\/wiki\/Colorado_Silver_Boom \"Colorado Silver Boom\") (1879–1893) [Western Australian gold rushes](https:\/\/en.wikipedia.org\/wiki\/Western_Australian_gold_rushes \"Western Australian gold rushes\") (c. 1880–c. 1900) [Indiana gas boom](https:\/\/en.wikipedia.org\/wiki\/Indiana_gas_boom \"Indiana gas boom\") (c. 1880–1903) [Ohio oil rush](https:\/\/en.wikipedia.org\/wiki\/Petroleum_industry_in_Ohio \"Petroleum industry in Ohio\") (c. 1880–c. 1930) [Depression of 1882–1885](https:\/\/en.wikipedia.org\/wiki\/Depression_of_1882%E2%80%931885 \"Depression of 1882–1885\") [Panic of 1884](https:\/\/en.wikipedia.org\/wiki\/Panic_of_1884 \"Panic of 1884\") [Cayoosh Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Cayoosh_Gold_Rush \"Cayoosh Gold Rush\") (1884) [Witwatersrand Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Witwatersrand_Gold_Rush \"Witwatersrand Gold Rush\") (1886) [1887–88 recession](https:\/\/en.wikipedia.org\/wiki\/List_of_recessions_in_the_United_States#Free_Banking_Era_to_the_Great_Depression_\\(1836%E2%80%931929\\) \"List of recessions in the United States\") [Baring crisis](https:\/\/en.wikipedia.org\/wiki\/Baring_crisis \"Baring crisis\") (1890–1891) [Cripple Creek Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Cripple_Creek_Gold_Rush \"Cripple Creek Gold Rush\") (c. 1890–c. 1910) [Panic of 1893](https:\/\/en.wikipedia.org\/wiki\/Panic_of_1893 \"Panic of 1893\") (1893–1897) [Australian banking crisis of 1893](https:\/\/en.wikipedia.org\/wiki\/Australian_banking_crisis_of_1893 \"Australian banking crisis of 1893\") [Black Monday](https:\/\/en.wikipedia.org\/wiki\/Black_Monday_\\(1894\\) \"Black Monday (1894)\") (1894) [Panic of 1896](https:\/\/en.wikipedia.org\/wiki\/Panic_of_1896 \"Panic of 1896\") [Klondike Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Klondike_Gold_Rush \"Klondike Gold Rush\") (1896–1899) [Second Nova Scotia Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Gold_mining_in_Nova_Scotia \"Gold mining in Nova Scotia\") (1896–1903) [Kobuk River Stampede](https:\/\/en.wikipedia.org\/wiki\/Kobuk_River_Stampede \"Kobuk River Stampede\") (1897–1899) [Mount Baker gold rush](https:\/\/en.wikipedia.org\/wiki\/Mount_Baker_gold_rush \"Mount Baker gold rush\") (1897–c. 1925) [1899–1900 recession](https:\/\/en.wikipedia.org\/wiki\/List_of_recessions_in_the_United_States#Free_Banking_Era_to_the_Great_Depression_\\(1836%E2%80%931929\\) \"List of recessions in the United States\") [Nome Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Nome_Gold_Rush \"Nome Gold Rush\") (1899–1909) [Fairbanks Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Fairbanks_Gold_Rush \"Fairbanks Gold Rush\") (c. 1900–c. 1930) [Texas oil boom](https:\/\/en.wikipedia.org\/wiki\/Texas_oil_boom \"Texas oil boom\") (1901–c. 1950) [Panic of 1901](https:\/\/en.wikipedia.org\/wiki\/Panic_of_1901 \"Panic of 1901\") (1902–1904) [Cobalt silver rush](https:\/\/en.wikipedia.org\/wiki\/Cobalt_silver_rush \"Cobalt silver rush\") (1903–c. 1930) [Panic of 1907](https:\/\/en.wikipedia.org\/wiki\/Panic_of_1907 \"Panic of 1907\") (1907–1908) [Porcupine Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Porcupine_Gold_Rush \"Porcupine Gold Rush\") (1909–c. 1960) [Panic of 1910–11](https:\/\/en.wikipedia.org\/wiki\/Panic_of_1910%E2%80%9311 \"Panic of 1910–11\") (1910–1912) [Financial crisis of 1914](https:\/\/en.wikipedia.org\/wiki\/Financial_crisis_of_1914 \"Financial crisis of 1914\") (1913–14) |\n| World War home fronts\/ [Interwar period](https:\/\/en.wikipedia.org\/wiki\/Interwar_period \"Interwar period\") (1914–1945) | [World War I economy](https:\/\/en.wikipedia.org\/wiki\/Economic_history_of_World_War_I \"Economic history of World War I\") and [home fronts](https:\/\/en.wikipedia.org\/wiki\/Home_front_during_World_War_I \"Home front during World War I\") [Australia](https:\/\/en.wikipedia.org\/wiki\/Australia_in_World_War_I#Home_front \"Australia in World War I\") [Canada](https:\/\/en.wikipedia.org\/wiki\/Canada_in_World_War_I#Home_Front \"Canada in World War I\") [United Kingdom](https:\/\/en.wikipedia.org\/wiki\/History_of_the_United_Kingdom_during_the_First_World_War \"History of the United Kingdom during the First World War\") [United States](https:\/\/en.wikipedia.org\/wiki\/United_States_home_front_during_World_War_I \"United States home front during World War I\") [Post–World War I recession](https:\/\/en.wikipedia.org\/wiki\/Post%E2%80%93World_War_I_recession \"Post–World War I recession\") (1918–1919) [Recession of 1920–1921](https:\/\/en.wikipedia.org\/wiki\/Recession_of_1920%E2%80%931921 \"Recession of 1920–1921\") [1920s Florida land boom](https:\/\/en.wikipedia.org\/wiki\/Florida_land_boom_of_the_1920s \"Florida land boom of the 1920s\") (c. 1920–1925) [Roaring Twenties](https:\/\/en.wikipedia.org\/wiki\/Roaring_Twenties \"Roaring Twenties\") [1923–1924 recession](https:\/\/en.wikipedia.org\/wiki\/List_of_recessions_in_the_United_States#Free_Banking_Era_to_the_Great_Depression_\\(1836%E2%80%931929\\) \"List of recessions in the United States\") [1926–1927 recession](https:\/\/en.wikipedia.org\/wiki\/List_of_recessions_in_the_United_States#Free_Banking_Era_to_the_Great_Depression_\\(1836%E2%80%931929\\) \"List of recessions in the United States\") [Great Depression](https:\/\/en.wikipedia.org\/wiki\/Great_Depression \"Great Depression\") 1929–1939; [Wall Street crash of 1929](https:\/\/en.wikipedia.org\/wiki\/Wall_Street_crash_of_1929 \"Wall Street crash of 1929\") [Panic of 1930](https:\/\/en.wikipedia.org\/wiki\/Panic_of_1930 \"Panic of 1930\") [Great Contraction](https:\/\/en.wikipedia.org\/wiki\/Great_Contraction \"Great Contraction\"), 1929–1933 [Recession of 1937–1938](https:\/\/en.wikipedia.org\/wiki\/Recession_of_1937%E2%80%931938 \"Recession of 1937–1938\") [Australia](https:\/\/en.wikipedia.org\/wiki\/Great_Depression_in_Australia \"Great Depression in Australia\") [Canada](https:\/\/en.wikipedia.org\/wiki\/Great_Depression_in_Canada \"Great Depression in Canada\") [India](https:\/\/en.wikipedia.org\/wiki\/Great_Depression_in_India \"Great Depression in India\") [South Africa](https:\/\/en.wikipedia.org\/wiki\/Great_Depression_in_South_Africa \"Great Depression in South Africa\") [United Kingdom](https:\/\/en.wikipedia.org\/wiki\/Great_Depression_in_the_United_Kingdom \"Great Depression in the United Kingdom\") [United States](https:\/\/en.wikipedia.org\/wiki\/Great_Depression_in_the_United_States \"Great Depression in the United States\") [1930s Kakamega gold rush](https:\/\/en.wikipedia.org\/wiki\/Kakamega_gold_rush \"Kakamega gold rush\") [Third Nova Scotia Gold Rush](https:\/\/en.wikipedia.org\/wiki\/Gold_mining_in_Nova_Scotia \"Gold mining in Nova Scotia\") (1932–1942) [World War II home front](https:\/\/en.wikipedia.org\/wiki\/Home_front_during_World_War_II \"Home front during World War II\") [Australia](https:\/\/en.wikipedia.org\/wiki\/Australian_home_front_during_World_War_II \"Australian home front during World War II\") [Canada](https:\/\/en.wikipedia.org\/wiki\/Canada_in_World_War_II#Home_front \"Canada in World War II\") [United Kingdom](https:\/\/en.wikipedia.org\/wiki\/British_home_front_during_World_War_II \"British home front during World War II\") [United States](https:\/\/en.wikipedia.org\/wiki\/United_States_home_front_during_World_War_II \"United States home front during World War II\") |\n| [Post–WWII expansion](https:\/\/en.wikipedia.org\/wiki\/Post%E2%80%93World_War_II_economic_expansion \"Post–World War II economic expansion\")\/ [1970s stagflation](https:\/\/en.wikipedia.org\/wiki\/Stagflation \"Stagflation\") (1945–1982) | [Great Compression](https:\/\/en.wikipedia.org\/wiki\/Great_Compression \"Great Compression\") [1945 recession](https:\/\/en.wikipedia.org\/wiki\/List_of_recessions_in_the_United_States#Great_Depression_onward_\\(1929%E2%80%93present\\) \"List of recessions in the United States\") [Recession of 1949](https:\/\/en.wikipedia.org\/wiki\/Recession_of_1949 \"Recession of 1949\") (1948–1949) [Hong Kong and Singapore Asian Tiger expansions](https:\/\/en.wikipedia.org\/wiki\/Four_Asian_Tigers \"Four Asian Tigers\") (1950–1990) [1951 Canada recession](https:\/\/en.wikipedia.org\/wiki\/List_of_recessions_in_Canada \"List of recessions in Canada\") [Recession of 1953](https:\/\/en.wikipedia.org\/wiki\/Recession_of_1953 \"Recession of 1953\") (1953–1954) [Recession of 1958](https:\/\/en.wikipedia.org\/wiki\/Recession_of_1958 \"Recession of 1958\") (1957–1958) [Recession of 1960–1961](https:\/\/en.wikipedia.org\/wiki\/Recession_of_1960%E2%80%931961 \"Recession of 1960–1961\") [Kennedy Slide of 1962](https:\/\/en.wikipedia.org\/wiki\/Kennedy_Slide_of_1962 \"Kennedy Slide of 1962\") [Poseidon bubble](https:\/\/en.wikipedia.org\/wiki\/Poseidon_bubble \"Poseidon bubble\") (1969–1970) [Recession of 1969–1970](https:\/\/en.wikipedia.org\/wiki\/Recession_of_1969%E2%80%931970 \"Recession of 1969–1970\") [1970s commodities boom](https:\/\/en.wikipedia.org\/wiki\/1970s_commodities_boom \"1970s commodities boom\") [1973–1975 recession](https:\/\/en.wikipedia.org\/wiki\/1973%E2%80%931975_recession \"1973–1975 recession\") [1973–1974 stock market crash](https:\/\/en.wikipedia.org\/wiki\/1973%E2%80%931974_stock_market_crash \"1973–1974 stock market crash\") [Secondary banking crisis of 1973–1975](https:\/\/en.wikipedia.org\/wiki\/Secondary_banking_crisis_of_1973%E2%80%931975 \"Secondary banking crisis of 1973–1975\") [1970s energy crisis](https:\/\/en.wikipedia.org\/wiki\/1970s_energy_crisis \"1970s energy crisis\") 1973–1980; [1973 oil crisis](https:\/\/en.wikipedia.org\/wiki\/1973_oil_crisis \"1973 oil crisis\") [1979 oil crisis](https:\/\/en.wikipedia.org\/wiki\/1979_oil_crisis \"1979 oil crisis\") [Steel crisis](https:\/\/en.wikipedia.org\/wiki\/Steel_crisis \"Steel crisis\") (1973–1982) [1976 sterling crisis](https:\/\/en.wikipedia.org\/wiki\/1976_sterling_crisis \"1976 sterling crisis\") [Silver Thursday](https:\/\/en.wikipedia.org\/wiki\/Silver_Thursday \"Silver Thursday\") (1980) [Early 1980s recession](https:\/\/en.wikipedia.org\/wiki\/Early_1980s_recession \"Early 1980s recession\") 1980–1982; [United States](https:\/\/en.wikipedia.org\/wiki\/Early_1980s_recession_in_the_United_States \"Early 1980s recession in the United States\") |\n| [Computer Age](https:\/\/en.wikipedia.org\/wiki\/Information_Age \"Information Age\")\/ [Second Gilded Age](https:\/\/en.wikipedia.org\/wiki\/Second_Gilded_Age \"Second Gilded Age\") (1982–present) | [Great Moderation](https:\/\/en.wikipedia.org\/wiki\/Great_Moderation \"Great Moderation\") (1982–2007) [1980s oil glut](https:\/\/en.wikipedia.org\/wiki\/1980s_oil_glut \"1980s oil glut\") [Black Saturday](https:\/\/en.wikipedia.org\/wiki\/Black_Saturday_\\(1983\\) \"Black Saturday (1983)\") (1983) [New Zealand property bubble](https:\/\/en.wikipedia.org\/wiki\/New_Zealand_property_bubble \"New Zealand property bubble\") (c. 1985–) [Savings and loan crisis](https:\/\/en.wikipedia.org\/wiki\/Savings_and_loan_crisis \"Savings and loan crisis\") (1986–1995) [Black Monday](https:\/\/en.wikipedia.org\/wiki\/Black_Monday_\\(1987\\) \"Black Monday (1987)\") (1987) [Friday the 13th mini-crash](https:\/\/en.wikipedia.org\/wiki\/Friday_the_13th_mini-crash \"Friday the 13th mini-crash\") (1989) [Early 1990s recession](https:\/\/en.wikipedia.org\/wiki\/Early_1990s_recession \"Early 1990s recession\") 1990–1991; [Australia](https:\/\/en.wikipedia.org\/wiki\/Early_1990s_recession_in_Australia \"Early 1990s recession in Australia\") [United States](https:\/\/en.wikipedia.org\/wiki\/Early_1990s_recession_in_the_United_States \"Early 1990s recession in the United States\") [1990 oil price shock](https:\/\/en.wikipedia.org\/wiki\/1990_oil_price_shock \"1990 oil price shock\") [Rhode Island banking crisis](https:\/\/en.wikipedia.org\/wiki\/Rhode_Island_banking_crisis \"Rhode Island banking crisis\") (1990–1992) [1991 Indian economic crisis](https:\/\/en.wikipedia.org\/wiki\/1991_Indian_economic_crisis \"1991 Indian economic crisis\") [1990s United States boom](https:\/\/en.wikipedia.org\/wiki\/1990s_United_States_boom \"1990s United States boom\") (1991–2001) [1990s India economic boom](https:\/\/en.wikipedia.org\/wiki\/Economic_liberalisation_in_India \"Economic liberalisation in India\") [Hyperinflation in Zimbabwe](https:\/\/en.wikipedia.org\/wiki\/Hyperinflation_in_Zimbabwe \"Hyperinflation in Zimbabwe\") (1991–present) [Black Wednesday](https:\/\/en.wikipedia.org\/wiki\/Black_Wednesday \"Black Wednesday\") (1992) [1994 bond market crisis](https:\/\/en.wikipedia.org\/wiki\/1994_bond_market_crisis \"1994 bond market crisis\") [1994 Papua New Guinea financial crisis](https:\/\/en.wikipedia.org\/wiki\/1994_Papua_New_Guinea_financial_crisis \"1994 Papua New Guinea financial crisis\") [Dot-com bubble](https:\/\/en.wikipedia.org\/wiki\/Dot-com_bubble \"Dot-com bubble\") 1995–2004; [Stock market downturn of 2002](https:\/\/en.wikipedia.org\/wiki\/Stock_market_downturn_of_2002 \"Stock market downturn of 2002\") [1997 Asian financial crisis](https:\/\/en.wikipedia.org\/wiki\/1997_Asian_financial_crisis \"1997 Asian financial crisis\") [October 27, 1997, mini-crash](https:\/\/en.wikipedia.org\/wiki\/October_27,_1997,_mini-crash \"October 27, 1997, mini-crash\") [Early 2000s recession](https:\/\/en.wikipedia.org\/wiki\/Early_2000s_recession \"Early 2000s recession\") 2001; [9\/11 stock market crash](https:\/\/en.wikipedia.org\/wiki\/Economic_effects_of_the_September_11_attacks \"Economic effects of the September 11 attacks\") [2000s commodities boom](https:\/\/en.wikipedia.org\/wiki\/2000s_commodities_boom \"2000s commodities boom\") (2000–2014) [United States housing bubble](https:\/\/en.wikipedia.org\/wiki\/2000s_United_States_housing_bubble \"2000s United States housing bubble\") (2002–2006) [Canadian property bubble](https:\/\/en.wikipedia.org\/wiki\/Canadian_property_bubble \"Canadian property bubble\") (2002–) [2003 Myanmar banking crisis](https:\/\/en.wikipedia.org\/wiki\/2003_Myanmar_banking_crisis \"2003 Myanmar banking crisis\") [2000s energy crisis](https:\/\/en.wikipedia.org\/wiki\/2000s_energy_crisis \"2000s energy crisis\") (2003–2008) [North Dakota oil boom](https:\/\/en.wikipedia.org\/wiki\/North_Dakota_oil_boom \"North Dakota oil boom\") (2006–2015) [Uranium bubble of 2007](https:\/\/en.wikipedia.org\/wiki\/Uranium_bubble_of_2007 \"Uranium bubble of 2007\") [Great Recession](https:\/\/en.wikipedia.org\/wiki\/Great_Recession \"Great Recession\") 2007–2009; [Australia and New Zealand](https:\/\/en.wikipedia.org\/wiki\/Great_Recession_in_Oceania \"Great Recession in Oceania\") [Bangladesh, India, Malaysia, Pakistan, and Sri Lanka](https:\/\/en.wikipedia.org\/wiki\/Great_Recession_in_Asia \"Great Recession in Asia\") [British West Indies](https:\/\/en.wikipedia.org\/wiki\/Great_Recession_in_South_America \"Great Recession in South America\") [Canada](https:\/\/en.wikipedia.org\/wiki\/Great_Recession_in_the_Americas \"Great Recession in the Americas\") [South Africa](https:\/\/en.wikipedia.org\/wiki\/Great_Recession_in_Africa \"Great Recession in Africa\") [United Kingdom](https:\/\/en.wikipedia.org\/wiki\/Great_Recession_in_Europe#United_Kingdom \"Great Recession in Europe\") [United States](https:\/\/en.wikipedia.org\/wiki\/Great_Recession_in_the_United_States \"Great Recession in the United States\") [2008 financial crisis](https:\/\/en.wikipedia.org\/wiki\/2008_financial_crisis \"2008 financial crisis\") [September](https:\/\/en.wikipedia.org\/wiki\/Global_financial_crisis_in_September_2008 \"Global financial crisis in September 2008\") [October](https:\/\/en.wikipedia.org\/wiki\/Global_financial_crisis_in_October_2008 \"Global financial crisis in October 2008\") [November](https:\/\/en.wikipedia.org\/wiki\/Global_financial_crisis_in_November_2008 \"Global financial crisis in November 2008\") [December](https:\/\/en.wikipedia.org\/wiki\/Global_financial_crisis_in_December_2008 \"Global financial crisis in December 2008\") [2009](https:\/\/en.wikipedia.org\/wiki\/Global_financial_crisis_in_2009 \"Global financial crisis in 2009\") [Subprime mortgage crisis](https:\/\/en.wikipedia.org\/wiki\/Subprime_mortgage_crisis \"Subprime mortgage crisis\") [2000s U.S. housing market correction](https:\/\/en.wikipedia.org\/wiki\/2000s_United_States_housing_market_correction \"2000s United States housing market correction\") [U.S. bear market of 2007–2009](https:\/\/en.wikipedia.org\/wiki\/United_States_bear_market_of_2007%E2%80%932009 \"United States bear market of 2007–2009\") [2007–2010 U.S. bank failures](https:\/\/en.wikipedia.org\/wiki\/List_of_banks_acquired_or_bankrupted_in_the_United_States_during_the_2008_financial_crisis \"List of banks acquired or bankrupted in the United States during the 2008 financial crisis\") [Corporate debt bubble](https:\/\/en.wikipedia.org\/wiki\/Corporate_debt_bubble \"Corporate debt bubble\") (2008–) [Blue Monday Crash 2009](https:\/\/en.wikipedia.org\/wiki\/Blue_Monday_Crash_2009 \"Blue Monday Crash 2009\") [2010 flash crash](https:\/\/en.wikipedia.org\/wiki\/2010_flash_crash \"2010 flash crash\") [Malaysia Tiger Cub expansion](https:\/\/en.wikipedia.org\/wiki\/Tiger_Cub_Economies \"Tiger Cub Economies\") (2010s) [Australian property bubble](https:\/\/en.wikipedia.org\/wiki\/Australian_property_bubble \"Australian property bubble\") (2010–) [August 2011 stock markets fall](https:\/\/en.wikipedia.org\/wiki\/August_2011_stock_markets_fall \"August 2011 stock markets fall\") [Black Monday](https:\/\/en.wikipedia.org\/wiki\/Black_Monday_\\(2011\\) \"Black Monday (2011)\") [2011 Bangladesh share market scam](https:\/\/en.wikipedia.org\/wiki\/2011_Bangladesh_share_market_scam \"2011 Bangladesh share market scam\") [Cryptocurrency bubble](https:\/\/en.wikipedia.org\/wiki\/Cryptocurrency_bubble \"Cryptocurrency bubble\") (2011–) [Puerto Rican government-debt crisis](https:\/\/en.wikipedia.org\/wiki\/Puerto_Rican_government-debt_crisis \"Puerto Rican government-debt crisis\") (2014–2022) [2015–2016 stock market selloff](https:\/\/en.wikipedia.org\/wiki\/2015%E2%80%932016_stock_market_selloff \"2015–2016 stock market selloff\") [Brexit stock market crash](https:\/\/en.wikipedia.org\/wiki\/Economic_effects_of_Brexit \"Economic effects of Brexit\") (2016) [2017 Sri Lankan fuel crisis](https:\/\/en.wikipedia.org\/wiki\/2017_Sri_Lankan_fuel_crisis \"2017 Sri Lankan fuel crisis\") [Ghana banking crisis](https:\/\/en.wikipedia.org\/wiki\/Ghana_banking_crisis \"Ghana banking crisis\") (2017–2018) [Sri Lankan economic crisis](https:\/\/en.wikipedia.org\/wiki\/Sri_Lankan_economic_crisis_\\(2019%E2%80%932024\\) \"Sri Lankan economic crisis (2019–2024)\") (2019–2024) [COVID-19 recession](https:\/\/en.wikipedia.org\/wiki\/COVID-19_recession \"COVID-19 recession\") 2020–2022; [2020 stock market crash](https:\/\/en.wikipedia.org\/wiki\/2020_stock_market_crash \"2020 stock market crash\") [financial market impact](https:\/\/en.wikipedia.org\/wiki\/Financial_market_impact_of_the_COVID-19_pandemic \"Financial market impact of the COVID-19 pandemic\") [sectoral impacts](https:\/\/en.wikipedia.org\/wiki\/Economic_impact_of_the_COVID-19_pandemic \"Economic impact of the COVID-19 pandemic\") [shortages](https:\/\/en.wikipedia.org\/wiki\/Shortages_related_to_the_COVID-19_pandemic \"Shortages related to the COVID-19 pandemic\") [Canada](https:\/\/en.wikipedia.org\/wiki\/Economic_impact_of_the_COVID-19_pandemic_in_Canada \"Economic impact of the COVID-19 pandemic in Canada\") [India](https:\/\/en.wikipedia.org\/wiki\/Economic_impact_of_the_COVID-19_pandemic_in_India \"Economic impact of the COVID-19 pandemic in India\") [Malaysia](https:\/\/en.wikipedia.org\/wiki\/Economic_impact_of_the_COVID-19_pandemic_in_Malaysia \"Economic impact of the COVID-19 pandemic in Malaysia\") [New Zealand](https:\/\/en.wikipedia.org\/wiki\/Economic_impact_of_the_COVID-19_pandemic_in_New_Zealand \"Economic impact of the COVID-19 pandemic in New Zealand\") [United Kingdom](https:\/\/en.wikipedia.org\/wiki\/Economic_impact_of_the_COVID-19_pandemic_in_the_United_Kingdom \"Economic impact of the COVID-19 pandemic in the United Kingdom\") [United States](https:\/\/en.wikipedia.org\/wiki\/Economic_impact_of_the_COVID-19_pandemic_in_the_United_States \"Economic impact of the COVID-19 pandemic in the United States\") [2020s commodities boom](https:\/\/en.wikipedia.org\/wiki\/2020s_commodities_boom \"2020s commodities boom\") [Global energy crisis](https:\/\/en.wikipedia.org\/wiki\/Global_energy_crisis_\\(2021%E2%80%932023\\) \"Global energy crisis (2021–2023)\") 2021–2023; [2021 United Kingdom natural gas supplier crisis](https:\/\/en.wikipedia.org\/wiki\/2021_United_Kingdom_natural_gas_supplier_crisis \"2021 United Kingdom natural gas supplier crisis\") [regional effects](https:\/\/en.wikipedia.org\/wiki\/Regional_effects_of_the_2021%E2%80%932023_global_energy_crisis \"Regional effects of the 2021–2023 global energy crisis\") [2021–2023 global supply chain crisis](https:\/\/en.wikipedia.org\/wiki\/2021%E2%80%932023_global_supply_chain_crisis \"2021–2023 global supply chain crisis\") [2021–2023 inflation surge](https:\/\/en.wikipedia.org\/wiki\/2021%E2%80%932023_inflation_surge \"2021–2023 inflation surge\") [Pakistani economic crisis](https:\/\/en.wikipedia.org\/wiki\/Pakistani_economic_crisis_\\(2021%E2%80%932024\\) \"Pakistani economic crisis (2021–2024)\") (2021–2024) [2022 stock market decline](https:\/\/en.wikipedia.org\/wiki\/2022_stock_market_decline \"2022 stock market decline\") [2022–2023 global food crises](https:\/\/en.wikipedia.org\/wiki\/2022%E2%80%932023_global_food_crises \"2022–2023 global food crises\") [2023 United Kingdom recession](https:\/\/en.wikipedia.org\/wiki\/List_of_recessions_in_the_United_Kingdom \"List of recessions in the United Kingdom\") [2023 United States banking crisis](https:\/\/en.wikipedia.org\/wiki\/2023_United_States_banking_crisis \"2023 United States banking crisis\") [2025 stock market crash](https:\/\/en.wikipedia.org\/wiki\/2025_stock_market_crash \"2025 stock market crash\") |\n| Countries and sectors | [Australia](https:\/\/en.wikipedia.org\/wiki\/Economic_history_of_Australia \"Economic history of Australia\") [rail transport](https:\/\/en.wikipedia.org\/wiki\/History_of_rail_transport_in_Australia \"History of rail transport in Australia\") [slavery](https:\/\/en.wikipedia.org\/wiki\/Slavery_in_Australia \"Slavery in Australia\") [whaling](https:\/\/en.wikipedia.org\/wiki\/Whaling_in_Australia \"Whaling in Australia\")\/[Western Australia](https:\/\/en.wikipedia.org\/wiki\/Whaling_in_Western_Australia \"Whaling in Western Australia\") [Canada](https:\/\/en.wikipedia.org\/wiki\/Economic_history_of_Canada \"Economic history of Canada\") [agriculture](https:\/\/en.wikipedia.org\/wiki\/History_of_agriculture_in_Canada \"History of agriculture in Canada\") [currencies](https:\/\/en.wikipedia.org\/wiki\/History_of_Canadian_currencies \"History of Canadian currencies\") [early banking system](https:\/\/en.wikipedia.org\/wiki\/Early_Canadian_banking_system \"Early Canadian banking system\") [list of recessions](https:\/\/en.wikipedia.org\/wiki\/List_of_recessions_in_Canada \"List of recessions in Canada\") [petroleum industry](https:\/\/en.wikipedia.org\/wiki\/History_of_the_petroleum_industry_in_Canada \"History of the petroleum industry in Canada\") [rail transport](https:\/\/en.wikipedia.org\/wiki\/History_of_rail_transport_in_Canada \"History of rail transport in Canada\") [slavery](https:\/\/en.wikipedia.org\/wiki\/Slavery_in_Canada \"Slavery in Canada\") [technological and industrial](https:\/\/en.wikipedia.org\/wiki\/Technological_and_industrial_history_of_Canada \"Technological and industrial history of Canada\") [whaling](https:\/\/en.wikipedia.org\/wiki\/Whaling_in_Canada \"Whaling in Canada\")\/[Pacific Northwest](https:\/\/en.wikipedia.org\/wiki\/Whaling_on_the_Pacific_Northwest_Coast \"Whaling on the Pacific Northwest Coast\") [Ghana](https:\/\/en.wikipedia.org\/wiki\/Economic_history_of_Ghana \"Economic history of Ghana\") [India](https:\/\/en.wikipedia.org\/wiki\/Economic_history_of_India \"Economic history of India\") [agriculture](https:\/\/en.wikipedia.org\/wiki\/History_of_agriculture_in_the_Indian_subcontinent \"History of agriculture in the Indian subcontinent\") [Company rule](https:\/\/en.wikipedia.org\/wiki\/Economy_of_India_under_Company_rule \"Economy of India under Company rule\") [maritime](https:\/\/en.wikipedia.org\/wiki\/Indian_maritime_history \"Indian maritime history\") [British Raj](https:\/\/en.wikipedia.org\/wiki\/Economy_of_India_under_the_British_Raj \"Economy of India under the British Raj\") [Deindustrialisation](https:\/\/en.wikipedia.org\/wiki\/De-industrialisation_of_India \"De-industrialisation of India\") [salt tax](https:\/\/en.wikipedia.org\/wiki\/History_of_the_salt_tax_in_British_India \"History of the salt tax in British India\") [slavery](https:\/\/en.wikipedia.org\/wiki\/Slavery_in_India \"Slavery in India\") [Malaysia](https:\/\/en.wikipedia.org\/wiki\/Economic_history_of_Malaysia \"Economic history of Malaysia\") [New Zealand](https:\/\/en.wikipedia.org\/wiki\/Economic_history_of_New_Zealand \"Economic history of New Zealand\") [whaling](https:\/\/en.wikipedia.org\/wiki\/Whaling_in_New_Zealand \"Whaling in New Zealand\") [Nigeria](https:\/\/en.wikipedia.org\/wiki\/Economic_history_of_Nigeria \"Economic history of Nigeria\") [slavery](https:\/\/en.wikipedia.org\/wiki\/Slavery_in_Nigeria \"Slavery in Nigeria\") [Pakistan](https:\/\/en.wikipedia.org\/wiki\/Economic_history_of_Pakistan \"Economic history of Pakistan\") [maritime](https:\/\/en.wikipedia.org\/wiki\/Maritime_history_of_Pakistan \"Maritime history of Pakistan\") [rail transport](https:\/\/en.wikipedia.org\/wiki\/History_of_rail_transport_in_Pakistan \"History of rail transport in Pakistan\") [South Africa](https:\/\/en.wikipedia.org\/wiki\/Economic_history_of_South_Africa \"Economic history of South Africa\") [slavery](https:\/\/en.wikipedia.org\/wiki\/Slavery_in_South_Africa \"Slavery in South Africa\") [whaling](https:\/\/en.wikipedia.org\/wiki\/Whaling_in_South_Africa \"Whaling in South Africa\") [Uganda](https:\/\/en.wikipedia.org\/wiki\/Economic_history_of_Uganda \"Economic history of Uganda\") [United Kingdom](https:\/\/en.wikipedia.org\/wiki\/Economic_history_of_the_United_Kingdom \"Economic history of the United Kingdom\") [Agricultural Revolution](https:\/\/en.wikipedia.org\/wiki\/British_Agricultural_Revolution \"British Agricultural Revolution\") [Atlantic slave trade](https:\/\/en.wikipedia.org\/wiki\/Atlantic_slave_trade \"Atlantic slave trade\") [banking](https:\/\/en.wikipedia.org\/wiki\/History_of_banking_in_the_United_Kingdom \"History of banking in the United Kingdom\") [British Empire](https:\/\/en.wikipedia.org\/wiki\/Economy_of_the_British_Empire \"Economy of the British Empire\") [English fiscal system](https:\/\/en.wikipedia.org\/wiki\/History_of_the_English_fiscal_system \"History of the English fiscal system\") [Interwar unemployment and poverty](https:\/\/en.wikipedia.org\/wiki\/Interwar_unemployment_and_poverty_in_the_United_Kingdom \"Interwar unemployment and poverty in the United Kingdom\") [list of recessions](https:\/\/en.wikipedia.org\/wiki\/List_of_recessions_in_the_United_Kingdom \"List of recessions in the United Kingdom\") [maritime](https:\/\/en.wikipedia.org\/wiki\/Maritime_history_of_the_United_Kingdom \"Maritime history of the United Kingdom\")\/[England](https:\/\/en.wikipedia.org\/wiki\/Maritime_history_of_England \"Maritime history of England\")\/[Scotland](https:\/\/en.wikipedia.org\/wiki\/Maritime_history_of_Scotland \"Maritime history of Scotland\") [Middle Ages England](https:\/\/en.wikipedia.org\/wiki\/Economy_of_England_in_the_Middle_Ages \"Economy of England in the Middle Ages\")\/[agriculture](https:\/\/en.wikipedia.org\/wiki\/Economics_of_English_agriculture_in_the_Middle_Ages \"Economics of English agriculture in the Middle Ages\") [national debt](https:\/\/en.wikipedia.org\/wiki\/History_of_the_British_national_debt \"History of the British national debt\") [Scotland](https:\/\/en.wikipedia.org\/wiki\/Economic_history_of_Scotland \"Economic history of Scotland\")\/[agriculture](https:\/\/en.wikipedia.org\/wiki\/History_of_agriculture_in_Scotland \"History of agriculture in Scotland\")\/[Middle Ages](https:\/\/en.wikipedia.org\/wiki\/Economy_of_Scotland_in_the_Middle_Ages \"Economy of Scotland in the Middle Ages\") [rail transport](https:\/\/en.wikipedia.org\/wiki\/History_of_rail_transport_in_Great_Britain \"History of rail transport in Great Britain\")\/[pre–1830](https:\/\/en.wikipedia.org\/wiki\/History_of_rail_transport_in_Great_Britain_to_1830 \"History of rail transport in Great Britain to 1830\")\/[1830–1922](https:\/\/en.wikipedia.org\/wiki\/History_of_rail_transport_in_Great_Britain_1830%E2%80%931922 \"History of rail transport in Great Britain 1830–1922\")\/[1923–1947](https:\/\/en.wikipedia.org\/wiki\/History_of_rail_transport_in_Great_Britain_1923%E2%80%931947 \"History of rail transport in Great Britain 1923–1947\")\/[1948–1994](https:\/\/en.wikipedia.org\/wiki\/History_of_rail_transport_in_Great_Britain_1948%E2%80%931994 \"History of rail transport in Great Britain 1948–1994\")\/[1995–present](https:\/\/en.wikipedia.org\/wiki\/History_of_rail_transport_in_Great_Britain_1995_to_date \"History of rail transport in Great Britain 1995 to date\") [slavery](https:\/\/en.wikipedia.org\/wiki\/Slavery_in_Britain \"Slavery in Britain\") [trade unions](https:\/\/en.wikipedia.org\/wiki\/History_of_trade_unions_in_the_United_Kingdom \"History of trade unions in the United Kingdom\") [Victorian era](https:\/\/en.wikipedia.org\/wiki\/Economy,_industry,_and_trade_of_the_Victorian_era \"Economy, industry, and trade of the Victorian era\") [Wales](https:\/\/en.wikipedia.org\/wiki\/Economic_history_of_Wales \"Economic history of Wales\") [whaling](https:\/\/en.wikipedia.org\/wiki\/Whaling_in_the_United_Kingdom \"Whaling in the United Kingdom\")\/[Scotland](https:\/\/en.wikipedia.org\/wiki\/Whaling_in_Scotland \"Whaling in Scotland\") [United States](https:\/\/en.wikipedia.org\/wiki\/Economic_history_of_the_United_States \"Economic history of the United States\") [agriculture](https:\/\/en.wikipedia.org\/wiki\/History_of_agriculture_in_the_United_States \"History of agriculture in the United States\") [banking](https:\/\/en.wikipedia.org\/wiki\/History_of_banking_in_the_United_States \"History of banking in the United States\")\/[colonial-era credit](https:\/\/en.wikipedia.org\/wiki\/Credit_in_the_Thirteen_Colonies \"Credit in the Thirteen Colonies\")\/[cooperatives](https:\/\/en.wikipedia.org\/wiki\/History_of_cooperatives_in_the_United_States \"History of cooperatives in the United States\")\/[investment banking](https:\/\/en.wikipedia.org\/wiki\/History_of_investment_banking_in_the_United_States \"History of investment banking in the United States\")\/[wildcat banking](https:\/\/en.wikipedia.org\/wiki\/Wildcat_banking \"Wildcat banking\") [business](https:\/\/en.wikipedia.org\/wiki\/American_business_history \"American business history\") [central banking](https:\/\/en.wikipedia.org\/wiki\/History_of_central_banking_in_the_United_States \"History of central banking in the United States\") [coal mining](https:\/\/en.wikipedia.org\/wiki\/History_of_coal_mining_in_the_United_States \"History of coal mining in the United States\") [indentured servitude](https:\/\/en.wikipedia.org\/wiki\/Indentured_servitude_in_British_America \"Indentured servitude in British America\") [iron and steel industry](https:\/\/en.wikipedia.org\/wiki\/History_of_the_iron_and_steel_industry_in_the_United_States \"History of the iron and steel industry in the United States\") [labor](https:\/\/en.wikipedia.org\/wiki\/Labor_history_of_the_United_States \"Labor history of the United States\") [list of economic expansions](https:\/\/en.wikipedia.org\/wiki\/List_of_economic_expansions_in_the_United_States \"List of economic expansions in the United States\") [list of recessions](https:\/\/en.wikipedia.org\/wiki\/List_of_recessions_in_the_United_States \"List of recessions in the United States\") [lumber industry](https:\/\/en.wikipedia.org\/wiki\/History_of_the_lumber_industry_in_the_United_States \"History of the lumber industry in the United States\") [maritime](https:\/\/en.wikipedia.org\/wiki\/History_of_the_United_States_Merchant_Marine \"History of the United States Merchant Marine\")\/[colonial-era](https:\/\/en.wikipedia.org\/wiki\/Maritime_history_of_Colonial_America \"Maritime history of Colonial America\")\/[1776–1799](https:\/\/en.wikipedia.org\/wiki\/Maritime_history_of_the_United_States_\\(1776%E2%80%931799\\) \"Maritime history of the United States (1776–1799)\")\/[1800–1899](https:\/\/en.wikipedia.org\/wiki\/Maritime_history_of_the_United_States_\\(1800%E2%80%931899\\) \"Maritime history of the United States (1800–1899)\")\/[1900–1999](https:\/\/en.wikipedia.org\/wiki\/Maritime_history_of_the_United_States_\\(1900%E2%80%931999\\) \"Maritime history of the United States (1900–1999)\")\/[2000–present](https:\/\/en.wikipedia.org\/wiki\/Maritime_history_of_the_United_States_\\(2000%E2%80%93present\\) \"Maritime history of the United States (2000–present)\") [monetary policy](https:\/\/en.wikipedia.org\/wiki\/History_of_monetary_policy_in_the_United_States \"History of monetary policy in the United States\") [poverty](https:\/\/en.wikipedia.org\/wiki\/History_of_poverty_in_the_United_States \"History of poverty in the United States\") [petroleum industry](https:\/\/en.wikipedia.org\/wiki\/History_of_the_petroleum_industry_in_the_United_States \"History of the petroleum industry in the United States\")\/[oil shale](https:\/\/en.wikipedia.org\/wiki\/History_of_the_oil_shale_industry_in_the_United_States \"History of the oil shale industry in the United States\") [public debt](https:\/\/en.wikipedia.org\/wiki\/History_of_the_United_States_public_debt \"History of the United States public debt\") [rail transportation](https:\/\/en.wikipedia.org\/wiki\/History_of_rail_transportation_in_the_United_States \"History of rail transportation in the United States\") [slavery](https:\/\/en.wikipedia.org\/wiki\/Slavery_in_the_United_States \"Slavery in the United States\")\/[colonial-era slavery](https:\/\/en.wikipedia.org\/wiki\/Slavery_in_the_colonial_history_of_the_United_States \"Slavery in the colonial history of the United States\")\/[forced labor](https:\/\/en.wikipedia.org\/wiki\/History_of_forced_labor_in_the_United_States \"History of forced labor in the United States\")\/[slave trade](https:\/\/en.wikipedia.org\/wiki\/Slave_trade_in_the_United_States \"Slave trade in the United States\")\/[slave markets](https:\/\/en.wikipedia.org\/wiki\/Slave_markets_and_slave_jails_in_the_United_States \"Slave markets and slave jails in the United States\") [tariffs](https:\/\/en.wikipedia.org\/wiki\/History_of_tariffs_in_the_United_States \"History of tariffs in the United States\") [taxation](https:\/\/en.wikipedia.org\/wiki\/History_of_taxation_in_the_United_States \"History of taxation in the United States\") [technological and industrial](https:\/\/en.wikipedia.org\/wiki\/Technological_and_industrial_history_of_the_United_States \"Technological and industrial history of the United States\") [United States dollar](https:\/\/en.wikipedia.org\/wiki\/History_of_the_United_States_dollar \"History of the United States dollar\") [whaling](https:\/\/en.wikipedia.org\/wiki\/Whaling_in_the_United_States \"Whaling in the United States\") [Zimbabwe](https:\/\/en.wikipedia.org\/wiki\/Economic_history_of_Zimbabwe \"Economic history of Zimbabwe\") |\n| [Business cycle](https:\/\/en.wikipedia.org\/wiki\/Business_cycle \"Business cycle\") topics | [Aggregate demand](https:\/\/en.wikipedia.org\/wiki\/Aggregate_demand \"Aggregate demand\")\/[Supply](https:\/\/en.wikipedia.org\/wiki\/Aggregate_supply \"Aggregate supply\") [Effective demand](https:\/\/en.wikipedia.org\/wiki\/Effective_demand \"Effective demand\") [General glut](https:\/\/en.wikipedia.org\/wiki\/General_glut \"General glut\") [Model](https:\/\/en.wikipedia.org\/wiki\/AD%E2%80%93AS_model \"AD–AS model\") [Overproduction](https:\/\/en.wikipedia.org\/wiki\/Overproduction \"Overproduction\") [Paradox of thrift](https:\/\/en.wikipedia.org\/wiki\/Paradox_of_thrift \"Paradox of thrift\") [Price-and-wage stickiness](https:\/\/en.wikipedia.org\/wiki\/Nominal_rigidity \"Nominal rigidity\") [Underconsumption](https:\/\/en.wikipedia.org\/wiki\/Underconsumption \"Underconsumption\") [Inflation](https:\/\/en.wikipedia.org\/wiki\/Inflation \"Inflation\") and [unemployment](https:\/\/en.wikipedia.org\/wiki\/Unemployment \"Unemployment\") [Chronic](https:\/\/en.wikipedia.org\/wiki\/Chronic_inflation \"Chronic inflation\") [Classical dichotomy](https:\/\/en.wikipedia.org\/wiki\/Classical_dichotomy \"Classical dichotomy\") [Debasement](https:\/\/en.wikipedia.org\/wiki\/Debasement \"Debasement\") [Debt monetization](https:\/\/en.wikipedia.org\/wiki\/Debt_monetization \"Debt monetization\") [Demand-pull](https:\/\/en.wikipedia.org\/wiki\/Demand-pull_inflation \"Demand-pull 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Wikipedia® is a registered trademark of the [Wikimedia Foundation, Inc.](https:\/\/wikimediafoundation.org\/), a non-profit organization.\n\n- [Privacy policy](https:\/\/foundation.wikimedia.org\/wiki\/Special:MyLanguage\/Policy:Privacy_policy)\n- [About Wikipedia](https:\/\/en.wikipedia.org\/wiki\/Wikipedia:About)\n- [Disclaimers](https:\/\/en.wikipedia.org\/wiki\/Wikipedia:General_disclaimer)\n- [Contact Wikipedia](https:\/\/en.wikipedia.org\/wiki\/Wikipedia:Contact_us)\n- [Legal & safety contacts](https:\/\/foundation.wikimedia.org\/wiki\/Special:MyLanguage\/Legal:Wikimedia_Foundation_Legal_and_Safety_Contact_Information)\n- [Code of Conduct](https:\/\/foundation.wikimedia.org\/wiki\/Special:MyLanguage\/Policy:Universal_Code_of_Conduct)\n- [Developers](https:\/\/developer.wikimedia.org\/)\n- [Statistics](https:\/\/stats.wikimedia.org\/#\/en.wikipedia.org)\n- [Cookie statement](https:\/\/foundation.wikimedia.org\/wiki\/Special:MyLanguage\/Policy:Cookie_statement)\n- [Mobile view](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&mobileaction=toggle_view_mobile)\n\n- [![Wikimedia Foundation](https:\/\/en.wikipedia.org\/static\/images\/footer\/wikimedia.svg)](https:\/\/www.wikimedia.org\/)\n- [![Powered by MediaWiki](https:\/\/en.wikipedia.org\/w\/resources\/assets\/mediawiki_compact.svg)](https:\/\/www.mediawiki.org\/)\n\nSearch\n\nToggle the table of contents\n\nSouth Sea Company\n\n24 languages\n\n[Add topic](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company)","attrs_readable_markdown":"|   |   |\n|---|---|\n| [![](https:\/\/upload.wikimedia.org\/wikipedia\/commons\/thumb\/2\/2e\/Arms_of_the_South_Sea_Company.svg\/250px-Arms_of_the_South_Sea_Company.svg.png)](https:\/\/en.wikipedia.org\/wiki\/File:Arms_of_the_South_Sea_Company.svg)Arms of the South Sea Company: *Azure, a globe whereon are represented the [Straits of Magellan](https:\/\/en.wikipedia.org\/wiki\/Straits_of_Magellan \"Straits of Magellan\") and [Cape Horn](https:\/\/en.wikipedia.org\/wiki\/Cape_Horn \"Cape Horn\") all [proper](https:\/\/en.wikipedia.org\/wiki\/Tincture_\\(heraldry\\) \"Tincture (heraldry)\") and in [sinister](https:\/\/en.wikipedia.org\/wiki\/Dexter_and_sinister \"Dexter and sinister\") chief point two herrings haurient in saltire argent crowned or, in a [canton](https:\/\/en.wikipedia.org\/wiki\/Canton_\\(heraldry\\) \"Canton (heraldry)\") the [united arms of Great Britain](https:\/\/en.wikipedia.org\/wiki\/Royal_coat_of_arms_of_the_United_Kingdom \"Royal coat of arms of the United Kingdom\")* |   |\n| Company type | [Public](https:\/\/en.wikipedia.org\/wiki\/Joint-stock_company \"Joint-stock company\") |\n| Industry | [Slave trade](https:\/\/en.wikipedia.org\/wiki\/History_of_slavery \"History of slavery\"), [speculation](https:\/\/en.wikipedia.org\/wiki\/Speculation \"Speculation\"), [whaling](https:\/\/en.wikipedia.org\/wiki\/Whaling \"Whaling\") |\n| Founded | January 1711; 315 years ago |\n| Defunct | 1853; 173 years ago |\n| Headquarters | London, Great Britain |\n\n[![](https:\/\/upload.wikimedia.org\/wikipedia\/commons\/thumb\/b\/b9\/SouthSeaHouse_Stowe%27sSurveyOfLondon_1754.PNG\/250px-SouthSeaHouse_Stowe%27sSurveyOfLondon_1754.PNG)](https:\/\/en.wikipedia.org\/wiki\/File:SouthSeaHouse_Stowe%27sSurveyOfLondon_1754.PNG)\n\n1754 engraving of Old South Sea House, the headquarters of the South Sea Company, which burned down in 1826,[\\[1\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-1) on the corner of [Bishopsgate Street](https:\/\/en.wikipedia.org\/wiki\/Bishopsgate_Street \"Bishopsgate Street\") and [Threadneedle Street](https:\/\/en.wikipedia.org\/wiki\/Threadneedle_Street \"Threadneedle Street\") in the [City of London](https:\/\/en.wikipedia.org\/wiki\/City_of_London \"City of London\")\n\n[![](https:\/\/upload.wikimedia.org\/wikipedia\/commons\/thumb\/2\/2c\/Microcosm_of_London_Plate_101_-_South_Sea_House%2C_Dividend_Hall_%28tone%29.jpg\/250px-Microcosm_of_London_Plate_101_-_South_Sea_House%2C_Dividend_Hall_%28tone%29.jpg)](https:\/\/en.wikipedia.org\/wiki\/File:Microcosm_of_London_Plate_101_-_South_Sea_House,_Dividend_Hall_\\(tone\\).jpg)\n\nThe [Dividend](https:\/\/en.wikipedia.org\/wiki\/Dividend \"Dividend\") Hall of South Sea House, 1810\n\n[![](https:\/\/upload.wikimedia.org\/wikipedia\/commons\/thumb\/8\/86\/South_Sea_House_-_Portal.jpg\/250px-South_Sea_House_-_Portal.jpg)](https:\/\/en.wikipedia.org\/wiki\/File:South_Sea_House_-_Portal.jpg)\n\nHeraldic grouping above main entrance to the surviving South Sea House, Threadneedle Street, rebuilt after the fire of 1826\n\n[![](https:\/\/upload.wikimedia.org\/wikipedia\/commons\/thumb\/3\/3c\/SouthSeaCompany_TradeLabel.png\/250px-SouthSeaCompany_TradeLabel.png)](https:\/\/en.wikipedia.org\/wiki\/File:SouthSeaCompany_TradeLabel.png)\n\nAn early trade label of the South Sea Company, for export of finest English [serge](https:\/\/en.wikipedia.org\/wiki\/Serge_\\(fabric\\) \"Serge (fabric)\") cloth. The letters circumscribing the seal below should read \"SS\\&FC\", for \"South Sea and Fishery Company\"[\\[2\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-2)\n\n[![](https:\/\/upload.wikimedia.org\/wikipedia\/commons\/thumb\/3\/33\/ShareCertificate_SouthSeaCompany_1733.jpg\/250px-ShareCertificate_SouthSeaCompany_1733.jpg)](https:\/\/en.wikipedia.org\/wiki\/File:ShareCertificate_SouthSeaCompany_1733.jpg)\n\n1723 pro-forma power of attorney signed by a shareholder of the South Sea Company showing the company's coat of arms and the Latin motto *A Gadibus usque Auroram* (\"From [Cádiz](https:\/\/en.wikipedia.org\/wiki\/C%C3%A1diz \"Cádiz\") to Dawn\", [Juvenal](https:\/\/en.wikipedia.org\/wiki\/Juvenal \"Juvenal\"), *[Satires](https:\/\/en.wikipedia.org\/wiki\/Satires_\\(Juvenal\\) \"Satires (Juvenal)\")*, 10)\n\n[![](https:\/\/upload.wikimedia.org\/wikipedia\/commons\/thumb\/c\/c2\/Edward_Matthew_Ward_%281816-1879%29_-_The_South_Sea_Bubble%2C_a_Scene_in_%27Change_Alley_in_1720_-_N00432_-_National_Gallery.jpg\/250px-Edward_Matthew_Ward_%281816-1879%29_-_The_South_Sea_Bubble%2C_a_Scene_in_%27Change_Alley_in_1720_-_N00432_-_National_Gallery.jpg)](https:\/\/en.wikipedia.org\/wiki\/File:Edward_Matthew_Ward_\\(1816-1879\\)_-_The_South_Sea_Bubble,_a_Scene_in_%27Change_Alley_in_1720_-_N00432_-_National_Gallery.jpg)\n\n*[The South Sea Bubble](https:\/\/en.wikipedia.org\/wiki\/The_South_Sea_Bubble \"The South Sea Bubble\")* by [Edward Matthew Ward](https:\/\/en.wikipedia.org\/wiki\/Edward_Matthew_Ward \"Edward Matthew Ward\"), 1847. A [Hogarthian](https:\/\/en.wikipedia.org\/wiki\/Hogarthian \"Hogarthian\") image of the 1720 \"South Sea Bubble\" now in the [Tate Britain](https:\/\/en.wikipedia.org\/wiki\/Tate_Britain \"Tate Britain\")\n\nThe **South Sea Company** (officially: either **The Governor and Company of the merchants of Great Britain, trading to the South Seas and other parts of America and for the encouragement of the Fishery** or **the Governor and Company of merchants of Great Britain, trading to the South-Seas, and other parts of America, and for encouraging the Fishery**)[\\[a\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-3)[\\[3\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-4) was a British [joint-stock company](https:\/\/en.wikipedia.org\/wiki\/Joint-stock_company \"Joint-stock company\") founded in January 1711, created as a [public-private partnership](https:\/\/en.wikipedia.org\/wiki\/Public-private_partnership \"Public-private partnership\") to [consolidate](https:\/\/en.wikipedia.org\/wiki\/Debt_consolidation \"Debt consolidation\") and reduce the cost of the [national debt](https:\/\/en.wikipedia.org\/wiki\/National_debt \"National debt\"). To generate income, in 1713 the company was granted a monopoly (the *[Asiento de Negros](https:\/\/en.wikipedia.org\/wiki\/Asiento_de_Negros \"Asiento de Negros\")*) to supply African slaves to the islands in the \"[South Seas](https:\/\/en.wikipedia.org\/wiki\/South_Seas \"South Seas\")\" and [South America](https:\/\/en.wikipedia.org\/wiki\/South_America \"South America\").[\\[4\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-:0-5) When the company was created, Britain was involved in the [War of the Spanish Succession](https:\/\/en.wikipedia.org\/wiki\/War_of_the_Spanish_Succession \"War of the Spanish Succession\") and Spain and Portugal controlled most of South America. There was thus no realistic prospect that trade would take place, and as it turned out, the Company never realised any significant profit from its monopoly. However, Company stock rose greatly in value as it expanded its operations dealing in government debt, and peaked in 1720 before suddenly collapsing to little above its original [flotation](https:\/\/en.wikipedia.org\/wiki\/Flotation_\\(shares\\) \"Flotation (shares)\") price. The notorious [economic bubble](https:\/\/en.wikipedia.org\/wiki\/Economic_bubble \"Economic bubble\") thus created, which ruined thousands of investors, became known as the **South Sea Bubble**.\n\nThe [Bubble Act 1720](https:\/\/en.wikipedia.org\/wiki\/Bubble_Act_1720 \"Bubble Act 1720\") ([6 Geo. 1](https:\/\/en.wikipedia.org\/wiki\/6_Geo._1 \"6 Geo. 1\") c. 18), which forbade the creation of joint-stock companies without [royal charter](https:\/\/en.wikipedia.org\/wiki\/Royal_charter \"Royal charter\"), was promoted by the South Sea Company itself before its collapse.\n\nIn Great Britain, many investors were ruined by the share-price collapse, and as a result, the national economy diminished substantially. The founders of the scheme engaged in [insider trading](https:\/\/en.wikipedia.org\/wiki\/Insider_trading \"Insider trading\"), by using their advance knowledge of the timings of national debt consolidations to make large profits from purchasing debt in advance. Huge bribes were given to politicians to support the [acts of Parliament](https:\/\/en.wikipedia.org\/wiki\/Acts_of_Parliament \"Acts of Parliament\") necessary for the scheme.[\\[5\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-6) Company money was used to deal in its own shares, and selected individuals purchasing shares were given cash loans backed by those same shares to spend on purchasing more shares. The expectation of profits from trade with South America was talked up to encourage the public to purchase shares, but the bubble prices reached far beyond what the actual profits of the business (namely the slave trade) could justify.[\\[6\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-:1-7)\n\nA parliamentary inquiry was held after the bursting of the bubble to discover its causes. A number of politicians were disgraced, and people found to have profited unlawfully from the company had personal assets confiscated proportionate to their gains (most had already been rich and remained so). Finally, the Company was restructured and continued to operate for more than a century after the Bubble. The headquarters were in [Threadneedle Street](https:\/\/en.wikipedia.org\/wiki\/Threadneedle_Street \"Threadneedle Street\"), at the centre of the [City of London](https:\/\/en.wikipedia.org\/wiki\/City_of_London \"City of London\"), the financial district of the capital. At the time of these events, the [Bank of England](https:\/\/en.wikipedia.org\/wiki\/Bank_of_England \"Bank of England\") was also a private company dealing in national debt, and the crash of its rival confirmed its position as banker to the British government.[\\[7\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-8)\n\nWhen in August 1710 [Robert Harley](https:\/\/en.wikipedia.org\/wiki\/Robert_Harley,_1st_Earl_of_Oxford_and_Earl_Mortimer \"Robert Harley, 1st Earl of Oxford and Earl Mortimer\") was appointed [Chancellor of the Exchequer](https:\/\/en.wikipedia.org\/wiki\/Chancellor_of_the_Exchequer \"Chancellor of the Exchequer\"), the government had already become reliant on the [Bank of England](https:\/\/en.wikipedia.org\/wiki\/Bank_of_England \"Bank of England\"), a privately owned company chartered 16 years previously, which had obtained a monopoly as the lender to the government. The government had become dissatisfied with the service it was receiving and Harley was actively seeking new ways to improve the national finances.\n\nA new parliament met in November 1710 resolved to attend to the national finances, which were suffering from the pressures of [two simultaneous wars](https:\/\/en.wikipedia.org\/wiki\/List_of_wars_involving_Great_Britain \"List of wars involving Great Britain\"): the [War of the Spanish Succession](https:\/\/en.wikipedia.org\/wiki\/War_of_the_Spanish_Succession \"War of the Spanish Succession\") with France, which ended in 1713, and the [Great Northern War](https:\/\/en.wikipedia.org\/wiki\/Great_Northern_War \"Great Northern War\"), which was not to end until 1721. Harley came prepared, with detailed accounts describing the situation of the national debt, which was customarily a piecemeal arrangement, with each government department borrowing independently as the need arose. He released the information steadily, continually adding new reports of debts incurred and scandalous expenditure, until in January 1711 the House of Commons agreed to appoint a committee to investigate the entire debt. The committee included Harley himself, the two [Auditors of the Imprests](https:\/\/en.wikipedia.org\/wiki\/Auditor_of_the_Imprests \"Auditor of the Imprests\") (whose task was to investigate government spending), [Edward Harley](https:\/\/en.wikipedia.org\/wiki\/Edward_Harley_\\(1664%E2%80%931735\\) \"Edward Harley (1664–1735)\") (the Chancellor's brother), Paul Foley (the Chancellor's brother-in-law), the [Secretary of the Treasury](https:\/\/en.wikipedia.org\/wiki\/Secretary_to_the_Treasury \"Secretary to the Treasury\"), [William Lowndes](https:\/\/en.wikipedia.org\/wiki\/William_Lowndes_\\(British_politician\\) \"William Lowndes (British politician)\") (who had had significant responsibility for reminting the entire debased British coinage in 1696) and [John Aislabie](https:\/\/en.wikipedia.org\/wiki\/John_Aislabie \"John Aislabie\") (who represented the [October Club](https:\/\/en.wikipedia.org\/wiki\/October_Club_\\(Tory_Party\\) \"October Club (Tory Party)\"), a group of about 200 MPs who had agreed to vote together).[\\[8\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-9)\n\nHarley's first concern was to find £300,000 for the next quarter's payroll for the British army operating on the Continent under the [Duke of Marlborough](https:\/\/en.wikipedia.org\/wiki\/Duke_of_Marlborough \"Duke of Marlborough\"). This funding was provided by a private consortium of Edward Gibbon (grandfather of [the historian](https:\/\/en.wikipedia.org\/wiki\/Edward_Gibbon#Early_life:_1737%E2%80%931752 \"Edward Gibbon\")), [George Caswall](https:\/\/en.wikipedia.org\/wiki\/George_Caswall \"George Caswall\"), and [Hoare's Bank](https:\/\/en.wikipedia.org\/wiki\/Hoare%27s_Bank \"Hoare's Bank\"). The Bank of England had been operating a [lottery](https:\/\/en.wikipedia.org\/wiki\/Lottery \"Lottery\") on behalf of the government, but in 1710 this had produced less revenue than expected and another begun in 1711 was also performing poorly; Harley granted the authority to sell tickets to [John Blunt](https:\/\/en.wikipedia.org\/wiki\/Sir_John_Blunt,_1st_Baronet \"Sir John Blunt, 1st Baronet\"), a director of the [Hollow Sword Blade Company](https:\/\/en.wikipedia.org\/wiki\/Hollow_Sword_Blade_Company \"Hollow Sword Blade Company\"), which despite its name was an unofficial bank. Sales commenced on 3 March 1711 and tickets had completely sold out by 7 March, making it the first truly successful English state lottery.[\\[9\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-10)\n\nThe success was shortly followed by another larger lottery, \"The Two Million Adventure\" or \"The Classis\", with tickets costing £100, with a top prize of £20,000 and every ticket winning a prize of at least £10. Although prizes were advertised by their total value, they were in fact paid out by instalments in the form of a fixed [annuity](https:\/\/en.wikipedia.org\/wiki\/Annuity \"Annuity\") over a period of years, so that the government effectively held the prize money as borrowings until the whole value had been paid out to the winners. Marketing was handled by members of the Sword Blade syndicate, Gibbon selling £200,000 of tickets and earning £4,500 commission, and Blunt selling £993,000. Charles Blunt (a relative) was made Paymaster of the lottery with expenses of £5,000.\n\n### Conception of the company\n\\[[edit](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=edit&section=2 \"Edit section: Conception of the company\")\\]\n\nThe national debt investigation concluded that a total of £9 million was owed by the government, with no specifically allocated income to pay it off. Robert Harley and John Blunt had jointly devised a scheme to consolidate this debt in much the same way that the Bank of England had consolidated previous debts, although the Bank still held the monopoly for operating as a bank. All holders of the debt (creditors) would be required to surrender it to a new company formed for the purpose, the South Sea Company, which in return would issue them shares in itself to the same nominal value. The government would make an annual payment to the Company of £568,279, equating to 6% interest plus expenses, which would then be redistributed to the shareholders as a dividend. The company was also granted a monopoly to trade with South America, a potentially lucrative enterprise, but one controlled by Spain – with which Britain was at war.[\\[10\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-auto2-11)\n\nAt that time, when the continent of America was being explored and colonised, Europeans applied the term \"South Seas\" only to South America and surrounding waters. The concession both held out the potential for future profits and encouraged a desire for an end to the war, necessary if any profits were to be made. The original suggestion for the South Sea scheme came from [William Paterson](https:\/\/en.wikipedia.org\/wiki\/William_Paterson_\\(banker\\) \"William Paterson (banker)\"), one of the founders of the Bank of England and of the financially disastrous [Darien Scheme](https:\/\/en.wikipedia.org\/wiki\/Darien_Scheme \"Darien Scheme\").[\\[10\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-auto2-11)\n\nHarley was rewarded for delivering the scheme by being created Earl of Oxford on 23 May 1711 and was promoted to [Lord High Treasurer](https:\/\/en.wikipedia.org\/wiki\/Lord_High_Treasurer \"Lord High Treasurer\"). With a more secure position, he began secret peace negotiations with France.\n\n### Initial speculation\n\\[[edit](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=edit&section=3 \"Edit section: Initial speculation\")\\]\n\nThe scheme to thus consolidate all government debt and to manage it better in the future held out the prospect of all existing creditors being repaid the full nominal value of their loans, which at the time before the scheme was publicised were valued at a discounted rate of £55 per £100 nominal value, as the lotteries were discredited. The government's ability to repay in full was widely doubted. Thus bonds representing the debt intended to be consolidated under the scheme were available for purchase on the open market at a price that allowed anyone with advance knowledge to buy and resell in the immediate future at a high profit, for as soon as the scheme became publicised the bonds would once again be worth at least their nominal value, as repayment was now more certain a prospect. This anticipation of gain made it possible for Harley to bring further financial supporters into the scheme, such as James Bateman and [Theodore Janssen](https:\/\/en.wikipedia.org\/wiki\/Theodore_Janssen \"Theodore Janssen\").[\\[11\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-12)\n\n[Daniel Defoe](https:\/\/en.wikipedia.org\/wiki\/Daniel_Defoe \"Daniel Defoe\") commented:[\\[12\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-13)\n\n> Unless the Spaniards are to be divested of common sense, infatuate, and given up, abandoning their own commerce, throwing away the only valuable stake they have left in the world, and in short, bent on their own ruin, we cannot suggest that they will ever, on any consideration, or for any equivalent, part with so valuable, indeed so inestimable a jewel, as the exclusive trade to their own plantations.\n\n— *An Essay on the South-Sea Trade*\n\nThe originators of the scheme knew that there was no money to invest in a trading venture, and no realistic expectation that there would ever be a trade to exploit, but nevertheless, the potential for great wealth was widely publicised at every opportunity, so as to encourage interest in the scheme. The founders' objective was to create a company that would enable them to become wealthy and offer opportunities for further government contracts.[\\[13\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-14)\n\n[![](https:\/\/upload.wikimedia.org\/wikipedia\/commons\/thumb\/d\/d4\/Bubble.folly.jpg\/250px-Bubble.folly.jpg)](https:\/\/en.wikipedia.org\/wiki\/File:Bubble.folly.jpg)\n\nA bubble-era stock promoter, caricatured as a \"[night wind hawker](https:\/\/en.wikipedia.org\/wiki\/Pump_and_dump \"Pump and dump\")\" (*The Great Picture of Folly*, 1720)\n\nThe [royal charter](https:\/\/en.wikipedia.org\/wiki\/Royal_charter \"Royal charter\") for the company, based on that of the Bank of England, was drawn up by Blunt who was paid £3,846 for his services in setting up the company. Directors would be elected every three years and shareholders would meet twice a year. The company employed a cashier, secretary and accountant. The governor was intended as an honorary position, and was later customarily held by the monarch. The charter allowed the full court of directors to nominate a smaller committee to act on any matter on its behalf. Directors of the Bank of England and of the [East India Company](https:\/\/en.wikipedia.org\/wiki\/East_India_Company \"East India Company\") were barred from being directors of the South Sea Company. Any ship of more than 500 tons owned by the company was to have a Church of England clergyman on board.\n\nThe surrender of government debt for company stock was to occur in five lots. The first two of these, totalling £2.75 million from about 200 large investors, had already been arranged before the company's charter was issued on 10 September 1711. The government surrendered £0.75 million of its debt held by different departments (at that time individual office holders were at liberty to invest government funds under their control to their own advantage before it was required for government expenditure). Harley surrendered £8,000 of debt and was appointed Governor of the new company. Blunt, Caswall and Sawbridge together surrendered £65,000, Janssen £25,000 of his own plus £250,000 from a foreign consortium, Decker £49,000, Sir Ambrose Crawley £36,791. The company had a Sub-Governor, Bateman; a Deputy Governor, Ongley; and 30 ordinary directors. Nine of the directors were politicians, five were members of the Sword Blade consortium, and seven more were financial magnates who had been attracted to the scheme.[\\[14\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-15)\n\nThe company created a coat of arms with the motto *A Gadibus usque ad Auroram* (\"From Cádiz to Dawn\", from [Juvenal](https:\/\/en.wikipedia.org\/wiki\/Juvenal \"Juvenal\"), [Satires](https:\/\/en.wikipedia.org\/wiki\/Satires_\\(Juvenal\\) \"Satires (Juvenal)\"), 10) and rented a large house in the City of London as its headquarters. Seven sub-committees were created to handle its everyday business, the most important being the \"committee for the affairs of the company\". The Sword Blade company was retained as the company's banker and on the strength of its new government connections issued notes in its own right, notwithstanding the Bank of England's monopoly. The task of the Company Secretary was to oversee trading activities; the Accountant, Grigsby, was responsible for registering and issuing stock; and the Cashier, Robert Knight, acted as Blunt's personal assistant at a salary of £200 per annum.[\\[15\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-16)\n\n[![](https:\/\/upload.wikimedia.org\/wikipedia\/commons\/thumb\/9\/98\/Slavers-4496.jpg\/250px-Slavers-4496.jpg)](https:\/\/en.wikipedia.org\/wiki\/File:Slavers-4496.jpg)\n\nAfrican slaves taken aboard a slave ship\n\nThe [Treaty of Utrecht](https:\/\/en.wikipedia.org\/wiki\/Treaty_of_Utrecht \"Treaty of Utrecht\") of 1713 granted Britain an *[Asiento de Negros](https:\/\/en.wikipedia.org\/wiki\/Asiento_de_Negros \"Asiento de Negros\")* lasting 30 years to supply the Spanish colonies with 4,800 enslaved Africans (\"slaves\") per year. Britain was permitted to open offices in [Buenos Aires](https:\/\/en.wikipedia.org\/wiki\/Buenos_Aires \"Buenos Aires\"), [Caracas](https:\/\/en.wikipedia.org\/wiki\/Caracas \"Caracas\"), [Cartagena](https:\/\/en.wikipedia.org\/wiki\/Cartagena,_Colombia \"Cartagena, Colombia\"), [Havana](https:\/\/en.wikipedia.org\/wiki\/Havana \"Havana\"), [Panama](https:\/\/en.wikipedia.org\/wiki\/Panama \"Panama\"), [Portobello](https:\/\/en.wikipedia.org\/wiki\/Portobelo,_Col%C3%B3n \"Portobelo, Colón\") and [Veracruz](https:\/\/en.wikipedia.org\/wiki\/Veracruz_\\(city\\) \"Veracruz (city)\") to arrange the [Atlantic slave trade](https:\/\/en.wikipedia.org\/wiki\/Atlantic_slave_trade \"Atlantic slave trade\"). One ship of no more than 500 tons could be sent to one of these places each year (the *Navío de Permiso*) with general trade goods. One quarter of the profits were to be reserved for the King of Spain. There was provision for two extra sailings at the start of the contract. The Asiento was granted in the name of [Queen Anne](https:\/\/en.wikipedia.org\/wiki\/Anne,_Queen_of_Great_Britain \"Anne, Queen of Great Britain\") and then contracted to the company.[\\[16\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-17)\n\nBy July the company had arranged contracts with the [Royal African Company](https:\/\/en.wikipedia.org\/wiki\/Royal_African_Company \"Royal African Company\") to supply the African slaves to Jamaica. Ten pounds was paid for a slave aged over 16, £8 for one under 16 but over 10. Two-thirds were to be male, and 90 per cent adult. The company transported 1,230 slaves from Jamaica to America in the first year, plus any that might have been added (against standing instructions) by the ship's captains on their own behalf. On arrival of the first cargoes, the local authorities refused to accept the Asiento, which had still not been officially confirmed there by the Spanish authorities. The slaves were eventually sold at a loss in the West Indies.[\\[17\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-18)\n\nIn 1714 the government announced that a quarter of profits would be reserved for [Queen Anne](https:\/\/en.wikipedia.org\/wiki\/Anne,_Queen_of_Great_Britain \"Anne, Queen of Great Britain\") and a further 7.5 per cent for a financial adviser, Manasseh Gilligan. Some company board members refused to accept the contract on these terms, and the government was obliged to reverse its decision.[\\[18\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-19) Despite these setbacks, the company continued, having raised £200,000 to finance the operations. In 1714 2,680 slaves were carried, and for 1716–1717, 13,000 more, but the trade continued to be unprofitable. An import duty of 33 [pieces of eight](https:\/\/en.wikipedia.org\/wiki\/Pieces_of_eight \"Pieces of eight\") was charged on each slave (although for this purpose some slaves might be counted only as a fraction of a slave, depending on quality). One of the extra trade ships was sent to Cartagena in 1714 carrying woollen goods, despite warnings that there was no market for them there, and they remained unsold for two years.[\\[19\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-20)\n\nIt has been estimated that the company transported a little over 34,000 slaves with mortality comparable to its competitors, showing that slave trading was a significant part of the company's business and that it was carried out to the standards of the day.[\\[4\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-:0-5) Its trading activities offered a financial motive for investment in the company.[\\[4\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-:0-5)\n\n### Changes of management\n\\[[edit](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=edit&section=6 \"Edit section: Changes of management\")\\]\n\nThe company was dependent on the goodwill of the government; when the government changed, so too did the company board. In 1714 one of the directors who had been sponsored by Harley, Arthur Moore, had attempted to send 60 tons of private goods on board the company ship. He was dismissed as a director, but the result was the beginning of Harley's fall from favour with the company. On 27 July 1714, Harley was replaced as Lord High Treasurer as a result of a disagreement that had broken out within the Tory faction in Parliament. Queen Anne died on 1 August 1714 and at the election of directors in 1715 the Prince of Wales (the future King [George II](https:\/\/en.wikipedia.org\/wiki\/George_II_of_Great_Britain \"George II of Great Britain\")) was elected as governor of the company. The new King [George I](https:\/\/en.wikipedia.org\/wiki\/George_I_of_Great_Britain \"George I of Great Britain\") and the Prince of Wales both had large holdings in the company, as did some prominent Whig politicians, including [James Craggs the Elder](https:\/\/en.wikipedia.org\/wiki\/James_Craggs_the_Elder \"James Craggs the Elder\"), the [Earl of Halifax](https:\/\/en.wikipedia.org\/wiki\/Charles_Montagu,_1st_Earl_of_Halifax \"Charles Montagu, 1st Earl of Halifax\") and Sir [Joseph Jekyll](https:\/\/en.wikipedia.org\/wiki\/Joseph_Jekyll \"Joseph Jekyll\"). Craggs, as Postmaster General, was responsible for intercepting mail on behalf of the government to obtain political and financial information. All Tory politicians were removed from the board and replaced with businessmen. The Whigs Horatio Townshend, brother in law of [Robert Walpole](https:\/\/en.wikipedia.org\/wiki\/Robert_Walpole \"Robert Walpole\") and the [Duke of Argyll](https:\/\/en.wikipedia.org\/wiki\/John_Campbell,_2nd_Duke_of_Argyll \"John Campbell, 2nd Duke of Argyll\") were elected directors.\n\nThe change of government led to a revival of the company's share value, which had fallen below its issue price. The previous government had failed to make the interest payments to the company for the preceding two years, owing more than £1 million. The new administration insisted that the debt be written off, but allowed the company to issue new shares to stock holders to the value of the missed payments. At around £10 million, this now represented half the share capital issued in the entire country. In 1714 the company had 2,000 to 3,000 shareholders, more than either of its rivals.[\\[20\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-21)\n\nBy the time of the next directors' elections in 1718 a schism within the Whigs between Walpole's faction supporting the Prince of Wales and [James Stanhope](https:\/\/en.wikipedia.org\/wiki\/James_Stanhope,_1st_Earl_Stanhope \"James Stanhope, 1st Earl Stanhope\")'s supporting the King. Argyll and Townshend were dismissed as directors, as were the surviving Tories Sir Richard Hoare and George Pitt, and King George I became governor. Four MPs remained directors, as did six people holding government financial offices. The Sword Blade Company remained bankers to the South Sea and had flourished despite the company's dubious legal position. Blunt and Sawbridge remained South Sea directors, and they had been joined by Gibbon and Child. Caswall had retired as a South Sea director to concentrate on the Sword Blade business. In November 1718 Sub-Governor Bateman and Deputy Governor Shepheard both died. Leaving aside the honorary position of Governor, this left the company suddenly without its two most senior and experienced directors. They were replaced by [Sir John Fellowes](https:\/\/en.wikipedia.org\/wiki\/Sir_John_Fellowes \"Sir John Fellowes\") as Sub-Governor and Charles Joye as Deputy.[\\[21\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-22)\n\nIn 1718 war broke out with Spain once again, in the [War of the Quadruple Alliance](https:\/\/en.wikipedia.org\/wiki\/War_of_the_Quadruple_Alliance \"War of the Quadruple Alliance\"). The company's assets in South America were seized, at a cost claimed by the company to be £300,000. Any prospect of profit from trade, for which the company had purchased ships and had been planning its next ventures, disappeared.[\\[22\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-23)\n\n## Refinancing government debt\n\\[[edit](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=edit&section=8 \"Edit section: Refinancing government debt\")\\]\n\nEvents in France now came to influence the future of the company. A Scottish economist and financier, [John Law](https:\/\/en.wikipedia.org\/wiki\/John_Law_\\(economist\\) \"John Law (economist)\"), exiled after killing a man in a duel, had travelled around Europe before settling in France. There he founded a bank, which in December 1718 became the Banque Royale, national bank of France, while Law himself was granted sweeping powers to control the economy of France, which operated largely by royal decree. Law's remarkable success was known in financial circles throughout Europe, and came to inspire Blunt and his associates to make greater efforts to grow their own concerns.[\\[23\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-24)\n\nIn February 1719 Craggs explained to the House of Commons a new scheme for improving the national debt by converting the annuities issued after the 1710 lottery into South Sea stock. By an act of Parliament, the [National Debt Act 1719](https:\/\/en.wikipedia.org\/w\/index.php?title=National_Debt_Act_1719&action=edit&redlink=1 \"National Debt Act 1719 (page does not exist)\") ([6 Geo. 1](https:\/\/en.wikipedia.org\/wiki\/6_Geo._1 \"6 Geo. 1\"). c. 4), the company was granted the right to issue £1,150 of new stock for every £100 per annum of annuity which was surrendered. The government would pay 5 per cent per annum on the stock created, which would halve their annual bill. The conversion was voluntary, amounting to £2.5 million new stock if all converted. The company was to make an additional new loan to the government pro rata up to £750,000, again at 5 per cent.[\\[24\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-25)\n\nIn March there was an abortive attempt to restore the Old Pretender, [James Edward Stuart](https:\/\/en.wikipedia.org\/wiki\/James_Edward_Stuart \"James Edward Stuart\"), to the throne of Britain, with a small landing of troops in Scotland. They were defeated at the [Battle of Glen Shiel](https:\/\/en.wikipedia.org\/wiki\/Battle_of_Glen_Shiel \"Battle of Glen Shiel\") on 10 June. The South Sea company presented the offer to the public in July 1719. The Sword Blade company spread a rumour that the Pretender had been captured, and the general euphoria induced the South Sea share price to rise from £100, where it had been in the spring, to £114. Annuitants were still paid out at the same money value of shares, the company keeping the profit from the rise in value before issuing. About two-thirds of the annuities were exchanged.\n\n### Trading more debt for equity\n\\[[edit](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=edit&section=9 \"Edit section: Trading more debt for equity\")\\]\n\n[![](https:\/\/upload.wikimedia.org\/wikipedia\/commons\/thumb\/1\/17\/William_Hogarth_-_The_South_Sea_Scheme.png\/500px-William_Hogarth_-_The_South_Sea_Scheme.png)](https:\/\/en.wikipedia.org\/wiki\/File:William_Hogarth_-_The_South_Sea_Scheme.png)\n\n[William Hogarth](https:\/\/en.wikipedia.org\/wiki\/William_Hogarth \"William Hogarth\"), *[Emblematical Print on the South Sea Scheme](https:\/\/en.wikipedia.org\/wiki\/Emblematical_Print_on_the_South_Sea_Scheme \"Emblematical Print on the South Sea Scheme\")* (1721). In the bottom left corner are Protestant, Catholic, and Jewish figures gambling, while in the middle there is a huge machine, like a merry-go-round, which people are boarding. At the top is a goat, written below which is \"Who'l Ride\". The people are scattered around the picture with a sense of disorder, while the progress of the well-dressed people towards the ride in the middle represents the foolishness of the crowd in buying stock in the South Sea Company, which spent more time issuing stock than anything else. Honor at left is dismembered; Honesty in center is [broken on the wheel](https:\/\/en.wikipedia.org\/wiki\/Broken_on_the_wheel \"Broken on the wheel\") and at lower right trade lies dead.\n\nThe 1719 scheme was a distinct success for the government and they sought to repeat it. Negotiations took place between Aislabie and Craggs for the government and Blunt, Cashier Knight and his assistant and Caswell. Janssen, the Sub Governor and Deputy Governor were also consulted but negotiations remained secret from most of the company. News from France was of fortunes being made investing in Law's bank, whose shares had risen sharply. Money was moving around Europe, and other flotations threatened to soak up capital (two insurance schemes in December 1719 each sought to raise £3 million).[\\[25\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-26)\n\nPlans were made for a new scheme to take over most of the unconsolidated national debt of Britain (£30,981,712) in exchange for company shares. Annuities were valued as a lump sum necessary to produce the annual income over the original term at an assumed interest of 5 per cent, which favoured those with shorter terms still to run. The government agreed to pay the same amount to the company for all the fixed-term repayable debt as it had been paying before, but after seven years the 5 per cent interest rate would fall to 4 per cent on the new annuity debt and also that assumed previously. After the first year, the company was to give the government £3 million in four quarterly instalments. New stock would be created at a face value equal to the debt, but the share price was still rising and sales of the remaining stock, i.e. the excess of the total market value of the stock over the amount of the debt, would be used to raise the government fee plus a profit for the company. The more the price rose in advance of conversion, the more the company would make. Before the scheme, payments were costing the government £1.5 million per year.[\\[26\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-auto-27)\n\nIn summary, the total government debt in 1719 was £50 million:\n\n- £18.3m was held by three large corporations:\n  - £3.4m by the [Bank of England](https:\/\/en.wikipedia.org\/wiki\/Bank_of_England \"Bank of England\")\n  - £3.2m by the [British East India Company](https:\/\/en.wikipedia.org\/wiki\/British_East_India_Company \"British East India Company\")\n  - £11.7m by the South Sea Company\n- Privately held redeemable debt amounted to £16.5m\n- £15m consisted of irredeemable annuities, long-fixed-term annuities of 72–87 years, and short annuities of 22 years remaining to expiry.\n\nThe purpose of this conversion was similar to the old one, debt holders and annuitants might receive less return in total, but an illiquid investment was transformed into shares that could be readily traded. Shares backed by national debt were considered a safe investment and a convenient way to hold and move money, far easier and safer than metal coins. The only alternative safe asset, land, was much harder to sell and transfer of its ownership was legally much more complex.\n\nThe government received a cash payment and lower interest on the debt and gained control over when the debt had to be repaid, which was not before seven years but then at its discretion. This avoided the risk that debt might become repayable when the government needed to borrow more, and could be forced into paying higher interest rates. The payment to the government was to be used to buy any debt not subscribed to the scheme, which although it helped the government, also helped the company by removing possibly competing securities from the market, including large holdings by the Bank of England.[\\[26\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-auto-27)\n\nCompany stock was now trading at £123, so the issue amounted to an injection of £5 million of new money into a booming economy just as interest rates were falling. [Gross Domestic Product](https:\/\/en.wikipedia.org\/wiki\/Gross_Domestic_Product \"Gross Domestic Product\") (GDP) for Britain at this point was estimated as £64.4 million.[\\[27\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-28)\n\n#### Public announcement\n\\[[edit](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=edit&section=10 \"Edit section: Public announcement\")\\]\n\n[![](https:\/\/upload.wikimedia.org\/wikipedia\/commons\/thumb\/4\/49\/South_Sea_Annuities_share_certificate%2C_issued_November_13%2C_1784._On_display_at_the_British_Museum_in_London.jpg\/250px-South_Sea_Annuities_share_certificate%2C_issued_November_13%2C_1784._On_display_at_the_British_Museum_in_London.jpg)](https:\/\/en.wikipedia.org\/wiki\/File:South_Sea_Annuities_share_certificate,_issued_November_13,_1784._On_display_at_the_British_Museum_in_London.jpg)\n\nSouth Sea Annuities share certificate, issued 13 November 1784. On display at the British Museum in London\n\nOn 21 January the plan was presented to the board of the South Sea Company, and on 22 January [Chancellor of the Exchequer](https:\/\/en.wikipedia.org\/wiki\/Chancellor_of_the_Exchequer \"Chancellor of the Exchequer\") [John Aislabie](https:\/\/en.wikipedia.org\/wiki\/John_Aislabie \"John Aislabie\") presented it to Parliament. The House was stunned into silence but on recovering, proposed that the Bank of England should be invited to make a better offer. The South Sea increased its cash payment to £3.5 million, while the Bank proposed to undertake the conversion with a payment of £5.5 million and a fixed conversion price of £170 per £100 face-value Bank stock. On 1 February, the company negotiators led by Blunt raised their offer to £4 million plus a proportion of £3.5 million depending on how much of the debt was converted. They also agreed that the interest rate would decrease after four years instead of seven, and agreed to sell on behalf of the government £1 million of Exchequer bills (formerly handled by the Bank). The House accepted the South Sea offer and Bank stock fell sharply.[\\[28\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-29)\n\nPerhaps the first sign of difficulty came when the South Sea Company announced that its Christmas 1719 dividend would be deferred for 12 months. The company embarked on a show of gratitude to its friends. Select individuals were sold a parcel of company stock at the current price. The transactions were recorded by Knight in the names of intermediaries, but no payments were received and no stock issued – the company had none to issue until the conversion of debt began. The individual received an option to sell his stock back to the company at any date at whatever market price might then apply. Shares went to the Craggs: [the Elder](https:\/\/en.wikipedia.org\/wiki\/James_Craggs_the_Elder \"James Craggs the Elder\") and [the Younger](https:\/\/en.wikipedia.org\/wiki\/James_Craggs_the_Younger \"James Craggs the Younger\"); [Lord Gower](https:\/\/en.wikipedia.org\/wiki\/John_Leveson-Gower,_1st_Earl_Gower \"John Leveson-Gower, 1st Earl Gower\"); [Lord Lansdowne](https:\/\/en.wikipedia.org\/wiki\/George_Granville,_1st_Baron_Lansdowne \"George Granville, 1st Baron Lansdowne\"); and four other MPs. [Lord Sunderland](https:\/\/en.wikipedia.org\/wiki\/Charles_Spencer,_3rd_Earl_of_Sunderland \"Charles Spencer, 3rd Earl of Sunderland\") would gain £500 for every pound that stock rose; George I's mistress, their children and Countess Platen £120 per pound rise, Aislabie £200 per pound, [Lord Stanhope](https:\/\/en.wikipedia.org\/wiki\/James_Stanhope,_1st_Earl_Stanhope \"James Stanhope, 1st Earl Stanhope\") £600 per pound. Others invested money, including the [Richard Hampden](https:\/\/en.wikipedia.org\/wiki\/Richard_Hampden_\\(1674%E2%80%931728\\) \"Richard Hampden (1674–1728)\") the Treasurer to the Navy, who invested £25,000 of government money on his behalf.[\\[29\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-30)\n\nThe proposal was accepted in a slightly altered form in April 1720. Crucial in this conversion was the proportion of holders of irredeemable annuities who could be tempted to convert their securities at a high price for the new shares. (Holders of redeemable debt had no other choice but to subscribe.) The South Sea Company could set the conversion price but could not diverge much from the market price of its shares. The company ultimately acquired 85 per cent of the redeemables and 80 per cent of the irredeemables.\n\n[![](https:\/\/upload.wikimedia.org\/wikipedia\/commons\/e\/ef\/South-sea-bubble-chart.png)](https:\/\/en.wikipedia.org\/wiki\/File:South-sea-bubble-chart.png)\n\nChart of company stock prices.\n\nThe company then set to talking up its stock with \"the most extravagant rumours\" of the value of its potential trade in the New World; this was followed by a wave of \"speculating frenzy\". The share price had risen from the time the scheme was proposed, from £128 in January 1720, to £175 in February, £330 in March and following the scheme's acceptance £550 at the end of May.[\\[30\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-31) What may have supported the company's high multiples (its [P\/E ratio](https:\/\/en.wikipedia.org\/wiki\/P\/E_ratio \"P\/E ratio\")) was a fund of credit (known to the market) of £70 million available for commercial expansion which had been made available through substantial support, apparently, by Parliament and the King.[\\[31\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-32)\n\nShares in the company were \"sold\" to politicians at the market price; rather than paying for the shares, these recipients simply held the shares, with the option of selling them back to the company at any time, receiving the increase in market price. This method, as well as winning over the heads of government, the King's mistress, *et al.*, had the advantage of binding their interests to the interests of the company, to secure profits, the stock needed to rise. By publicising the names of their elite stockholders, the company managed to clothe itself in an aura of legitimacy, which attracted and kept other buyers.[\\[32\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-33)\n\nThe South Sea Company was by no means the only company seeking to raise money from investors in 1720. A large number of other joint-stock companies, making extravagant (sometimes fraudulent) claims about foreign or other ventures or bizarre schemes, had been created. Others represented potentially sound, although novel, schemes, such as for founding insurance companies. These were nicknamed \"Bubbles\". Some of the companies had no legal basis, while others (such as the [Hollow Sword Blade Company](https:\/\/en.wikipedia.org\/wiki\/Hollow_Sword_Blade_Company \"Hollow Sword Blade Company\"), which acted as the South Sea Company's banker), used existing chartered companies for purposes different from those named at their creation. The York Buildings Company was set up to provide water to London, but was purchased by Case Billingsley who used it to purchase confiscated Jacobite estates in Scotland, which then formed the assets of an insurance company.[\\[33\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-auto1-34)\n\nOn 22 February 1720, John Hungerford raised the question of bubble companies in the House of Commons, and persuaded the House to set up a committee, which he chaired, to investigate. He identified a number of companies which between them sought to raise £40 million in capital. The committee investigated the companies, establishing a principle that companies should not be operating outside the objects specified in their charters. A potential embarrassment for the South Sea was avoided when the question of the Hollow Sword Blade Company arose. Difficulty was avoided by packing the committee with MPs who were supporters of the South Sea, and voting down by 75 to 25 the proposal to investigate the Hollow Sword. (At this time, committees of the House were either 'Open' or 'secret'. A secret committee was one with a fixed set of members who could vote on its proceedings. By contrast, any MP could join in with an 'open' committee and vote on its proceedings.) Stanhope, who was a member of the committee, received £50,000 of the 'resaleable' South Sea stock from Sawbridge, a director of the Hollow Sword, at about this time. Hungerford had previously been expelled from the Commons for accepting a bribe.[\\[33\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-auto1-34)\n\nAmongst the bubble companies investigated were two supported by Lords Onslow and Chetwynd respectively, for insuring shipping. These were severely criticised and the questionable dealings of the Attorney-General and Solicitor-General in trying to obtain charters for the companies led to both being replaced. The schemes had the support of [Walpole](https:\/\/en.wikipedia.org\/wiki\/Walpole \"Walpole\") and [Craggs](https:\/\/en.wikipedia.org\/wiki\/James_Craggs_the_Younger \"James Craggs the Younger\"), so that the larger part of the [Bubble Act 1720](https:\/\/en.wikipedia.org\/wiki\/Bubble_Act_1720 \"Bubble Act 1720\") ([6 Geo. 1](https:\/\/en.wikipedia.org\/wiki\/6_Geo._1 \"6 Geo. 1\"). c. 18) (which resulted in June 1720 from the committee's investigations) was devoted to creating charters for the [Royal Exchange Assurance Corporation](https:\/\/en.wikipedia.org\/wiki\/Royal_Exchange_Assurance_Corporation \"Royal Exchange Assurance Corporation\") or London Assurance Corporation. The companies were required to pay £300,000 for the privilege. The act required that a joint stock company could be incorporated only by act of Parliament or [royal charter](https:\/\/en.wikipedia.org\/wiki\/Royal_charter \"Royal charter\"). The prohibition on unauthorised joint stock ventures was not repealed until 1825.[\\[34\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-35) The passing of the act gave a boost to the South Sea Company, its shares leaping to £890 in early June. This peak encouraged people to sell; to counterbalance this the company's directors ordered their agents to buy, which succeeded in propping the price up at around £750.\n\n[![](https:\/\/upload.wikimedia.org\/wikipedia\/commons\/thumb\/2\/2d\/South_Sea_Bubble_Cards-Tree.png\/250px-South_Sea_Bubble_Cards-Tree.png)](https:\/\/en.wikipedia.org\/wiki\/File:South_Sea_Bubble_Cards-Tree.png)\n\nTree caricature from Bubble Cards.\n\nThe price of the stock went up over the course of a year from about £100 to almost £1,000 per share. Its success caused a national frenzy—[herd behaviour](https:\/\/en.wikipedia.org\/wiki\/Herd_behaviour \"Herd behaviour\")[\\[6\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-:1-7)—as all types of people, from peasants to lords, developed a feverish interest in investing, in South Seas primarily but in stocks generally. One famous apocryphal story is of a company that went public in 1720 as \"a company for carrying out an undertaking of great advantage, but nobody to know what it is\".[\\[35\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-36)\n\nThe price finally reached £1,000 in early August 1720, and the level of selling was such that the price started to fall, dropping back to £100 per share before the year was out.[\\[36\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-37) This triggered [bankruptcies](https:\/\/en.wikipedia.org\/wiki\/Bankruptcies \"Bankruptcies\") amongst those who had bought on credit, and increased sales, including [short selling](https:\/\/en.wikipedia.org\/wiki\/Short_selling \"Short selling\")\\[*[citation needed](https:\/\/en.wikipedia.org\/wiki\/Wikipedia:Citation_needed \"Wikipedia:Citation needed\")*\\] (i.e., selling borrowed shares in the hope of buying them back at a profit if the price fell). In August 1720, the first of the instalment payments of the first and second money subscriptions on new issues of South Sea stock were due. Earlier in the year John Blunt had come up with an idea to prop up the share price, the company would lend people money to buy its shares. As a result, many shareholders could not pay for their shares except by selling them.\\[*[citation needed](https:\/\/en.wikipedia.org\/wiki\/Wikipedia:Citation_needed \"Wikipedia:Citation needed\")*\\] A scramble for liquidity appeared internationally as \"bubbles\" were also ending in Amsterdam and Paris. The collapse coincided with the fall of the [Mississippi Company](https:\/\/en.wikipedia.org\/wiki\/Mississippi_Company \"Mississippi Company\") of [John Law](https:\/\/en.wikipedia.org\/wiki\/John_Law_\\(economist\\) \"John Law (economist)\") in France and the price of South Sea shares began to decline.\\[*[citation needed](https:\/\/en.wikipedia.org\/wiki\/Wikipedia:Citation_needed \"Wikipedia:Citation needed\")*\\]\n\nBy the end of September the stock had fallen to £150. Company failures now extended to [banks](https:\/\/en.wikipedia.org\/wiki\/Bank \"Bank\") and [goldsmiths](https:\/\/en.wikipedia.org\/wiki\/Goldsmith \"Goldsmith\"), as they could not collect loans made on the stock, and thousands of individuals were ruined, including many members of the upper class. With investors outraged, [Parliament](https:\/\/en.wikipedia.org\/wiki\/Parliament_of_the_United_Kingdom \"Parliament of the United Kingdom\") was recalled in December and an investigation began. Reporting in 1721, it revealed widespread [fraud](https:\/\/en.wikipedia.org\/wiki\/Fraud \"Fraud\") amongst the company directors and corruption in the Cabinet. Among those implicated were [John Aislabie](https:\/\/en.wikipedia.org\/wiki\/John_Aislabie \"John Aislabie\") (the Chancellor of the Exchequer), James Craggs the Elder (the [Postmaster General](https:\/\/en.wikipedia.org\/wiki\/Postmaster_General_of_the_United_Kingdom \"Postmaster General of the United Kingdom\")), [James Craggs the Younger](https:\/\/en.wikipedia.org\/wiki\/James_Craggs_the_Younger \"James Craggs the Younger\") (the [Southern Secretary](https:\/\/en.wikipedia.org\/wiki\/Southern_Secretary \"Southern Secretary\")), and even [Lord Stanhope](https:\/\/en.wikipedia.org\/wiki\/James_Stanhope,_1st_Earl_Stanhope \"James Stanhope, 1st Earl Stanhope\") and [Lord Sunderland](https:\/\/en.wikipedia.org\/wiki\/Charles_Spencer,_3rd_Earl_of_Sunderland \"Charles Spencer, 3rd Earl of Sunderland\") (the heads of the Ministry). Craggs the Elder and Craggs the Younger died in disgrace; the remainder were [impeached](https:\/\/en.wikipedia.org\/wiki\/Impeachment_in_the_United_Kingdom \"Impeachment in the United Kingdom\") for their corruption. The Commons found Aislabie guilty of the \"most notorious, dangerous and infamous corruption\" and he was imprisoned.\\[*[citation needed](https:\/\/en.wikipedia.org\/wiki\/Wikipedia:Citation_needed \"Wikipedia:Citation needed\")*\\] The corruption around the South Sea bubble was the impetus for the writing and publication of [Cato's Letters](https:\/\/en.wikipedia.org\/wiki\/Cato%27s_Letters \"Cato's Letters\") which became an important work first for the [Radical Whigs](https:\/\/en.wikipedia.org\/wiki\/Radical_Whigs \"Radical Whigs\") and then into the [libertarian](https:\/\/en.wikipedia.org\/wiki\/Libertarian \"Libertarian\") ideology of the [American Revolution](https:\/\/en.wikipedia.org\/wiki\/American_Revolution \"American Revolution\").[\\[37\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-38)\n\nThe new [First Lord of the Treasury](https:\/\/en.wikipedia.org\/wiki\/First_Lord_of_the_Treasury \"First Lord of the Treasury\"), [Robert Walpole](https:\/\/en.wikipedia.org\/wiki\/Robert_Walpole \"Robert Walpole\"), restored public confidence in the financial system. Public opinion, as shaped by the many prominent men who lost money, demanded revenge. Walpole supervised the process, which removed all 33 of the company directors and stripped them of, on average, 82 per cent of their wealth. The money went to the victims and the stock of the South Sea Company was divided between the Bank of England and the East India Company. Walpole made sure that King George and his mistresses were protected, and by a margin of three votes he managed to save several key government officials from impeachment. In the process, Walpole won plaudits as the saviour of the financial system while establishing himself as the dominant figure in British politics; historians credit him for rescuing the Whig government and the Hanoverian dynasty from disgrace.[\\[38\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-39)[\\[39\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-40)[\\[40\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-41)\n\n### Quotations prompted by the collapse\n\\[[edit](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=edit&section=15 \"Edit section: Quotations prompted by the collapse\")\\]\n\nJoseph Spence wrote that [Lord Radnor](https:\/\/en.wikipedia.org\/wiki\/Earl_of_Radnor \"Earl of Radnor\") reported to him \"When Sir [Isaac Newton](https:\/\/en.wikipedia.org\/wiki\/Isaac_Newton \"Isaac Newton\") was asked about the continuance of the rising of South Sea stock ... He answered 'that he could not calculate the madness of people'\".[\\[41\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-42) He is also quoted, \"I can calculate the movement of the stars, but not the madness of men\".[\\[42\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-43) Newton owned nearly £22,000 in South Sea stock in 1722, but it is not known how much he lost, if anything.[\\[43\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-44) There are numerous sources stating he lost up to £20,000[\\[44\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-45) (equivalent to £4.21 million in 2025).[\\[45\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-inflation-UK-46)\n\nThe South Sea Company was created in 1711 to reduce the size of public debts, but was granted the commercial privilege of exclusive rights of trade to the Spanish Indies, based on the treaty of commerce signed by Britain and the [Archduke Charles](https:\/\/en.wikipedia.org\/wiki\/Charles_VI,_Holy_Roman_Emperor \"Charles VI, Holy Roman Emperor\"), candidate to the Spanish throne during the [War of the Spanish Succession](https:\/\/en.wikipedia.org\/wiki\/War_of_the_Spanish_Succession \"War of the Spanish Succession\"). After [Philip V](https:\/\/en.wikipedia.org\/wiki\/Philip_V_of_Spain \"Philip V of Spain\") became the King of Spain, Britain obtained at the 1713 [Treaty of Utrecht](https:\/\/en.wikipedia.org\/wiki\/Treaty_of_Utrecht \"Treaty of Utrecht\") the rights to the slave trade to the Spanish Indies (or [Asiento de Negros](https:\/\/en.wikipedia.org\/wiki\/Asiento_de_Negros \"Asiento de Negros\")) for 30 years. Those rights were previously held by the Compagnie de Guinée et de l'Assiente du Royaume de la France.\n\nThe South Sea Company board opposed taking on the slave trade, which had shown little profitability when chartered companies had engaged in it. To increase the profitability, the Asiento contract included the right to send one yearly 500-ton ship to the fairs at Portobello and [Veracruz](https:\/\/en.wikipedia.org\/wiki\/Veracruz,_Veracruz \"Veracruz, Veracruz\") loaded with duty-free merchandises, called the *Navío de Permiso*. The Crown of England and the King of Spain were each entitled to 25% of the profits, according to the terms of the contract, that was a copy of the French Asiento contract, but [Queen Anne](https:\/\/en.wikipedia.org\/wiki\/Anne,_Queen_of_Great_Britain \"Anne, Queen of Great Britain\") soon renounced her share. The King of Spain did not receive any payments due to him, and this was one of the sources of contention between the Spanish Crown and the South Sea Company.\n\nAs was the case for previous holders of the Asiento, the Portuguese and the French, the profit was not in the slave trade but in the illegal contraband goods smuggled in the slave ships and in the annual ship. Those goods were sold at the Spanish colonies at a handsome price, for they were in high demand; and constituted unfair competition with taxed goods, proving a large drain on the Spanish Crown's trade income. The relationship between the South Sea Company and the Government of Spain was always bad, and worsened with time. The company complained of searches and seizures of goods, lack of profitability, and confiscation of properties during the wars between Britain and Spain of 1718–1723 and 1727–1729, during which the operations of the company were suspended. The Government of Spain complained of the illegal trade, failure of the company to present its accounts as stipulated by the contract, and non-payment of the King's share of the profits. These claims were a major cause of deteriorating relations between the two countries in 1738; and although the Prime Minister [Walpole](https:\/\/en.wikipedia.org\/wiki\/Walpole \"Walpole\") opposed war, there was strong support for it from the King, the House of Commons, and a faction in his own Cabinet. Walpole was able to negotiate a treaty with the King of Spain at the [Convention of Pardo](https:\/\/en.wikipedia.org\/wiki\/Convention_of_Pardo \"Convention of Pardo\") in January 1739 that stipulated that Spain would pay British merchants £95,000 in compensation for captures and seized goods, while the South Sea Company would pay the Spanish Crown £68,000 in due proceeds from the Asiento. The South Sea Company refused to pay those proceeds and the King of Spain retained payment of the compensation until payment from the South Sea Company could be secured. The break-up of relations between the South Sea Company and the Spanish Government was a prelude to the *[Guerra del Asiento](https:\/\/en.wikipedia.org\/wiki\/Guerra_del_Asiento \"Guerra del Asiento\")*, as the first [Royal Navy](https:\/\/en.wikipedia.org\/wiki\/Royal_Navy \"Royal Navy\") fleets departed in July 1739 for the Caribbean, prior to the declaration of war, which lasted from October 1739 until 1748. This war is known as the [War of Jenkins' Ear](https:\/\/en.wikipedia.org\/wiki\/War_of_Jenkins%27_Ear \"War of Jenkins' Ear\").[\\[46\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-47)[\\[47\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-48)[\\[48\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-49)\n\n### Slave trade under the Asiento\n\\[[edit](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=edit&section=17 \"Edit section: Slave trade under the Asiento\")\\]\n\n[![](https:\/\/upload.wikimedia.org\/wikipedia\/commons\/thumb\/d\/d7\/1713_Asiento_contract.png\/250px-1713_Asiento_contract.png)](https:\/\/en.wikipedia.org\/wiki\/File:1713_Asiento_contract.png)\n\nCover of the English translation of the Asiento contract signed by Britain and Spain in 1713 as part of the Utrecht treaty that ended the War of Spanish Succession. The contract granted exclusive rights to Britain to sell slaves in the Spanish Indies.\n\nUnder the [Treaty of Tordesillas](https:\/\/en.wikipedia.org\/wiki\/Treaty_of_Tordesillas \"Treaty of Tordesillas\"), Spain was the only European power that could not establish factories in Africa to purchase slaves. The slaves for Spanish America were provided by companies that were granted exclusive rights to their trade. This monopoly contract was called the slave Asiento. Between 1701 and 1713 the Asiento contract was granted to France. In 1711 Britain had created the South Sea Company to reduce debt and to trade with Spanish America, but that commerce was illegal without a permit from Spain, and the only existing permit was the Asiento for the slave trade, so at the [Treaty of Utrecht](https:\/\/en.wikipedia.org\/wiki\/Treaty_of_Utrecht \"Treaty of Utrecht\") in 1713 Britain obtained the transfer of the Asiento contract from French to British hands for the next 30 years.\n\nThe board of directors was reluctant to take on the slave trade, which was not an object of the company and had shown little profitability when carried out by chartered companies, but they finally agreed on 26 March 1714. The Asiento set a sale quota of 4,800 units of slaves per year. An adult male slave counted as one unit; females and children counted as fractions of a unit. Initially the slaves were provided by the [Royal African Company](https:\/\/en.wikipedia.org\/wiki\/Royal_African_Company \"Royal African Company\").\n\nThe South Sea Company established slave reception factories at [Cartagena, Colombia](https:\/\/en.wikipedia.org\/wiki\/Cartagena,_Colombia \"Cartagena, Colombia\"), [Veracruz](https:\/\/en.wikipedia.org\/wiki\/Veracruz,_Veracruz \"Veracruz, Veracruz\"), Mexico, Panama, [Portobello](https:\/\/en.wikipedia.org\/wiki\/Portobelo,_Col%C3%B3n \"Portobelo, Colón\"), [La Guaira](https:\/\/en.wikipedia.org\/wiki\/La_Guaira \"La Guaira\"), [Buenos Aires](https:\/\/en.wikipedia.org\/wiki\/Buenos_Aires \"Buenos Aires\"), [La Havana](https:\/\/en.wikipedia.org\/wiki\/La_Havana \"La Havana\") and [Santiago de Cuba](https:\/\/en.wikipedia.org\/wiki\/Santiago_de_Cuba \"Santiago de Cuba\"), and slave deposits at [Jamaica](https:\/\/en.wikipedia.org\/wiki\/Jamaica \"Jamaica\") and [Barbados](https:\/\/en.wikipedia.org\/wiki\/Barbados \"Barbados\"). Despite problems with speculation, the South Sea Company was relatively successful at [slave trading](https:\/\/en.wikipedia.org\/wiki\/Atlantic_slave_trade \"Atlantic slave trade\") and meeting its quota (it was unusual for other, similarly chartered companies to fulfill their quotas). According to records compiled by David Eltis and others, during the course of 96 voyages in 25 years, the South Sea Company purchased 34,000 slaves, of whom 30,000 survived the voyage across the Atlantic.[\\[49\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-50) (Thus about 11% of the slaves died on the voyage: a relatively low mortality rate for the [Middle Passage](https:\/\/en.wikipedia.org\/wiki\/Middle_Passage \"Middle Passage\").[\\[50\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-51)) The company persisted with the slave trade through two wars with Spain and the calamitous 1720 commercial [bubble](https:\/\/en.wikipedia.org\/wiki\/Economic_bubble \"Economic bubble\"). The company's slave trading peaked during 1725, five years after the bubble burst.[\\[51\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-52)\n\nThe slave Asiento contract of 1713 granted a permit to send one vessel of 500 tons per year, loaded with duty-free merchandise to be sold at the fairs of [New Spain](https:\/\/en.wikipedia.org\/wiki\/New_Spain \"New Spain\"), [Cartagena](https:\/\/en.wikipedia.org\/wiki\/Cartagena,_Colombia \"Cartagena, Colombia\") and [Portobello](https:\/\/en.wikipedia.org\/wiki\/Portobelo,_Col%C3%B3n \"Portobelo, Colón\"). This was an unprecedented concession that broke two centuries of strict exclusion of foreign merchants from the Spanish Empire, although a quarter of the profit was to be paid to the Spanish Crown.[\\[52\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-53)\n\nThe first ship to head for the Americas, the *Royal Prince*, was scheduled for 1714 but was delayed until August 1716. In consideration of the three annual ships missed since the date of the Asiento, the permitted tonnage of the next ten ships was raised to 650.[\\[53\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-54) Only seven annual ships sailed during the Asiento, the last one being the *Royal Caroline* in 1732. The company's failure to produce accounts for all the annual ships but the first one, and lack of payment of the proceeds to the Spanish Crown from the profits for all the annual ships, resulted in no permits being granted after the *Royal Caroline* trip of 1732–1734.\n\nIn contrast to the \"legitimate\" trade in slaves, the regular trade of the annual ships generated healthy returns, in some case profits were over 100%.[\\[54\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-55) Accounts for the voyage of the *Royal Prince* were not presented until 1733, following continuous demands by Spanish officials. They reported profits of £43,607.[\\[55\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-56) Since the King of Spain was entitled to 25% of the profits, after deducting interest on a loan he claimed £8,678. The South Sea Company never paid the amount due for the first annual ship to the Spanish Crown, nor did it pay any amount for any of the other six trips.[\\[56\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-57): 341\n\nThe [Greenland Company](https:\/\/en.wikipedia.org\/w\/index.php?title=Greenland_Company&action=edit&redlink=1 \"Greenland Company (page does not exist)\") had been established by an act of Parliament, the [Greenland Trade Act 1692](https:\/\/en.wikipedia.org\/w\/index.php?title=Greenland_Trade_Act_1692&action=edit&redlink=1 \"Greenland Trade Act 1692 (page does not exist)\") ([4 Will. & Mar.](https:\/\/en.wikipedia.org\/wiki\/4_Will._%26_Mar. \"4 Will. & Mar.\") c. 17) in 1693 with the object of catching whales in the Arctic. The products of their \"whale-fishery\" were to be free of customs and other duties. Partly due to maritime disruption caused by wars with France, the Greenland Company failed financially within a few years. In 1722 Henry Elking published a proposal, directed at the governors of the South Sea Company, that they should resume the \"Greenland Trade\" and send ships to catch whales in the Arctic. He made very detailed suggestions about how the ships should be crewed and equipped.[\\[57\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-58)\n\nThe British Parliament confirmed that a British Arctic \"whale-fishery\" would continue to benefit from freedom from customs duties, and in 1724 the South Sea Company decided to commence whaling. They had 12 whale-ships built on the River Thames and these went to the Greenland seas in 1725. Further ships were built in later years, but the venture was not successful. There were hardly any experienced whalemen remaining in Britain, and the company had to engage Dutch and Danish whalemen for the key posts aboard their ships: for instance all commanding officers and harpooners were hired from the [North Frisian](https:\/\/en.wikipedia.org\/wiki\/North_Frisia \"North Frisia\") island of [Föhr](https:\/\/en.wikipedia.org\/wiki\/F%C3%B6hr \"Föhr\").[\\[58\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-59) Other costs were badly controlled and the catches remained disappointingly few, even though the company was sending up to 25 ships to [Davis Strait](https:\/\/en.wikipedia.org\/wiki\/Davis_Strait \"Davis Strait\") and the [Greenland](https:\/\/en.wikipedia.org\/wiki\/Greenland \"Greenland\") seas in some years. By 1732 the company had accumulated a net loss of £177,782 from their eight years of Arctic whaling.[\\[59\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-60)\n\nThe South Sea Company directors appealed to the British government for further support. Parliament had passed the [Greenland Fishery Act 1731](https:\/\/en.wikipedia.org\/w\/index.php?title=Greenland_Fishery_Act_1731&action=edit&redlink=1 \"Greenland Fishery Act 1731 (page does not exist)\") ([5 Geo. 2](https:\/\/en.wikipedia.org\/wiki\/5_Geo._2 \"5 Geo. 2\"). c. 28) in 1732 that extended the duty-free concessions for a further nine years. In 1733 the [Whale Fishery Act 1732](https:\/\/en.wikipedia.org\/w\/index.php?title=Whale_Fishery_Act_1732&action=edit&redlink=1 \"Whale Fishery Act 1732 (page does not exist)\") ([6 Geo. 2](https:\/\/en.wikipedia.org\/wiki\/6_Geo._2 \"6 Geo. 2\"). c. 33) was passed that also granted a government subsidy to British Arctic whalers, the first in a long series of such acts of Parliament that continued and modified the whaling subsidies throughout the 18th century. This, and the subsequent acts, required the whalers to meet conditions regarding the crewing and equipping of the whale-ships that closely resembled the conditions suggested by Elking in 1722.[\\[60\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-61) In spite of the extended duty-free concessions, and the prospect of real subsidies as well, the court and directors of the South Sea Company decided that they could not expect to make profits from Arctic whaling. They sent out no more whale-ships after the loss-making 1732 season.\n\n## Government debt after the Seven Years' War\n\\[[edit](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=edit&section=20 \"Edit section: Government debt after the Seven Years' War\")\\]\n\nThe company continued its trade (when not interrupted by war) until the end of the [Seven Years' War](https:\/\/en.wikipedia.org\/wiki\/Seven_Years%27_War \"Seven Years' War\") (1756–1763). However, its main function was always managing government debt, rather than trading with the Spanish colonies. The South Sea Company continued its management of part of the [national debt](https:\/\/en.wikipedia.org\/wiki\/National_debt \"National debt\") until it was disestablished in 1853, at which point the debt was reconsolidated. The debt was not paid off by the time of the [First World War](https:\/\/en.wikipedia.org\/wiki\/First_World_War \"First World War\"), at which point it was consolidated again, under terms that allowed the government to avoid repaying the principal.\n\nThe armorials of the South Sea Company, according to a [grant of arms](https:\/\/en.wikipedia.org\/wiki\/Grant_of_arms \"Grant of arms\") dated 31 October 1711, were: *Azure, a globe whereon are represented the Straits of Magellan and Cape Horn all proper and in sinister chief point two herrings haurient in saltire argent crowned or, in a canton the united arms of Great Britain*. Crest: *A ship of three masts in full sail*. Supporters, dexter: *The emblematic figure of Britannia, with the shield, lance etc all proper*; sinister: *A fisherman completely clothed, with cap boots fishing net etc and in his hand a string of fish, all proper*.[\\[61\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-62)\n\n## Officers of the South Sea Company\n\\[[edit](https:\/\/en.wikipedia.org\/w\/index.php?title=South_Sea_Company&action=edit&section=22 \"Edit section: Officers of the South Sea Company\")\\]\n\n| South Sea Company Act 1753 |   |\n|---|---|\n| Act of Parliament |   |\n| [![coat of arms](https:\/\/upload.wikimedia.org\/wikipedia\/commons\/thumb\/3\/30\/Coat_of_arms_of_Great_Britain_%281714%E2%80%931801%29.svg\/250px-Coat_of_arms_of_Great_Britain_%281714%E2%80%931801%29.svg.png)](https:\/\/en.wikipedia.org\/wiki\/File:Coat_of_arms_of_Great_Britain_\\(1714%E2%80%931801\\).svg)[Parliament of Great Britain](https:\/\/en.wikipedia.org\/wiki\/Parliament_of_Great_Britain \"Parliament of Great Britain\") |   |\n| [Long title](https:\/\/en.wikipedia.org\/wiki\/Short_and_long_titles \"Short and long titles\") | An Act for reducing the Number of Directors of the Corporation of the Governor and Company of Merchants of Great Britain trading to The South-Seas and other Parts of America; and for encouraging the Fishery; and for regulating the Election of the Governors and Directors of the said Company. |\n| [Citation](https:\/\/en.wikipedia.org\/wiki\/Citation_of_United_Kingdom_legislation \"Citation of United Kingdom legislation\") | [26 Geo. 2](https:\/\/en.wikipedia.org\/wiki\/26_Geo._2 \"26 Geo. 2\"). c. 16 |\n| Territorial extent | [Great Britain](https:\/\/en.wikipedia.org\/wiki\/Great_Britain \"Great Britain\") |\n| Dates |   |\n| [Royal assent](https:\/\/en.wikipedia.org\/wiki\/Royal_assent \"Royal assent\") | 15 May 1753 |\n| [Commencement](https:\/\/en.wikipedia.org\/wiki\/Coming_into_force \"Coming into force\") | 11 January 1753[\\[b\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-63) |\n| Repealed | 15 July 1867 |\n| Other legislation |   |\n| [Repealed by](https:\/\/en.wikipedia.org\/wiki\/Repeal \"Repeal\") | [Statute Law Revision Act 1867](https:\/\/en.wikipedia.org\/wiki\/Statute_Law_Revision_Act_1867 \"Statute Law Revision Act 1867\") |\n| Status: Repealed |   |\n| [Text of statute as originally enacted](https:\/\/books.google.co.uk\/books?id=a7wuAAAAIAAJ&pg=PA42) |   |\n\nThe South Sea Company had a governor (generally an honorary position), a subgovernor, a deputy governor and 30 directors – reduced by the **South Sea Company Act 1753** ([26 Geo. 2](https:\/\/en.wikipedia.org\/wiki\/26_Geo._2 \"26 Geo. 2\"). c. 16) to 21 directors.[\\[62\\]](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_note-64)\n\n| Year | Governor | Subgovernor | Deputy governor |\n|---|---|---|---|\n| July 1711 | [Robert Harley, 1st Earl of Oxford](https:\/\/en.wikipedia.org\/wiki\/Robert_Harley,_1st_Earl_of_Oxford \"Robert Harley, 1st Earl of Oxford\") | Sir James Bateman | [Samuel Ongley](https:\/\/en.wikipedia.org\/wiki\/Samuel_Ongley_\\(died_1726\\) \"Samuel Ongley (died 1726)\") |\n| August 1712 | [Sir Ambrose Crowley](https:\/\/en.wikipedia.org\/wiki\/Ambrose_Crowley \"Ambrose Crowley\") |   |   |\n| October 1713 | [Samuel Shepheard](https:\/\/en.wikipedia.org\/wiki\/Samuel_Shepheard_\\(died_1719\\) \"Samuel Shepheard (died 1719)\") |   |   |\n| February 1715 | [George, Prince of Wales](https:\/\/en.wikipedia.org\/wiki\/George_II_of_Great_Britain \"George II of Great Britain\") |   |   |\n| February 1718 | [King George I](https:\/\/en.wikipedia.org\/wiki\/George_I_of_Great_Britain \"George I of Great Britain\") |   |   |\n| November 1718 | John Fellows |   |   |\n| February 1719 | [Charles Joye](https:\/\/en.wikipedia.org\/w\/index.php?title=Charles_Joye&action=edit&redlink=1 \"Charles Joye (page does not exist)\") |   |   |\n| February 1721 | [Sir John Eyles, Bt](https:\/\/en.wikipedia.org\/wiki\/Sir_John_Eyles,_2nd_Baronet \"Sir John Eyles, 2nd Baronet\") | John Rudge |   |\n| July 1727 | [King George II](https:\/\/en.wikipedia.org\/wiki\/George_II_of_Great_Britain \"George II of Great Britain\") |   |   |\n| February 1730 | [John Hanbury](https:\/\/en.wikipedia.org\/wiki\/John_Hanbury_\\(1664%E2%80%931734\\) \"John Hanbury (1664–1734)\") |   |   |\n| February 1733 | [Sir Richard Hopkins](https:\/\/en.wikipedia.org\/wiki\/Richard_Hopkins_\\(died_1736\\) \"Richard Hopkins (died 1736)\") | [John Bristow](https:\/\/en.wikipedia.org\/wiki\/John_Bristow \"John Bristow\") |   |\n| February 1735 | [Peter Burrell](https:\/\/en.wikipedia.org\/wiki\/Peter_Burrell_\\(1692%E2%80%931756\\) \"Peter Burrell (1692–1756)\") |   |   |\n| March 1756 | [John Bristow](https:\/\/en.wikipedia.org\/wiki\/John_Bristow \"John Bristow\") | [John Philipson](https:\/\/en.wikipedia.org\/w\/index.php?title=John_Philipson&action=edit&redlink=1 \"John Philipson (page does not exist)\") |   |\n| February 1756 | Lewis Way |   |   |\n| January 1760 | [King George III](https:\/\/en.wikipedia.org\/wiki\/King_George_III \"King George III\") |   |   |\n| February 1763 | Lewis Way | Richard Jackson |   |\n| March 1768 | [Thomas Coventry](https:\/\/en.wikipedia.org\/wiki\/Thomas_Coventry_\\(died_1797\\) \"Thomas Coventry (died 1797)\") |   |   |\n| January 1771 | [Thomas Coventry](https:\/\/en.wikipedia.org\/wiki\/Thomas_Coventry_\\(politician\\) \"Thomas Coventry (politician)\") | vacant (?) |   |\n| January 1772 | John Warde |   |   |\n| March 1775 | [Samuel Salt](https:\/\/en.wikipedia.org\/wiki\/Samuel_Salt \"Samuel Salt\") |   |   |\n| January 1793 | [Benjamin Way](https:\/\/en.wikipedia.org\/wiki\/Benjamin_Way \"Benjamin Way\") | [Robert Dorrell](https:\/\/en.wikipedia.org\/w\/index.php?title=Robert_Dorrell&action=edit&redlink=1 \"Robert Dorrell (page does not exist)\") |   |\n| February 1802 | [Peter Pierson](https:\/\/en.wikipedia.org\/w\/index.php?title=Peter_Pierson&action=edit&redlink=1 \"Peter Pierson (page does not exist)\") |   |   |\n| February 1808 | [Charles Bosanquet](https:\/\/en.wikipedia.org\/wiki\/Charles_Bosanquet \"Charles Bosanquet\") | Benjamin Harrison |   |\n| 1820 | [King George IV](https:\/\/en.wikipedia.org\/wiki\/King_George_IV \"King George IV\") |   |   |\n| January 1826 | Sir Robert Baker |   |   |\n| 1830 | [King William IV](https:\/\/en.wikipedia.org\/wiki\/King_William_IV \"King William IV\") |   |   |\n| July 1837 | [Queen Victoria](https:\/\/en.wikipedia.org\/wiki\/Queen_Victoria \"Queen Victoria\") |   |   |\n| January 1838 | Charles Franks | [Thomas Vigne](https:\/\/en.wikipedia.org\/wiki\/Thomas_Vigne \"Thomas Vigne\") |   |\n\n- [David Liss](https:\/\/en.wikipedia.org\/wiki\/David_Liss \"David Liss\")' historical-mystery novel *[A Conspiracy of Paper](https:\/\/en.wikipedia.org\/wiki\/A_Conspiracy_of_Paper \"A Conspiracy of Paper\")*, set in 1720 London, is focused on the South Sea Company at the top of its power, its fierce rivalry with the [Bank of England](https:\/\/en.wikipedia.org\/wiki\/Bank_of_England \"Bank of England\") and the events leading up to the collapse of the \"bubble\".\n- [Charles Lamb](https:\/\/en.wikipedia.org\/wiki\/Charles_Lamb \"Charles Lamb\")'s essay *The South-Sea House* (1820) in *[Essays of Elia](https:\/\/en.wikipedia.org\/wiki\/Essays_of_Elia \"Essays of Elia\")* – Lamb once worked in the South Sea House, and adopted his pseudonym (Elia) from a coworker there.\n- [Charles Dickens](https:\/\/en.wikipedia.org\/wiki\/Charles_Dickens \"Charles Dickens\") novels are littered with stock-market speculations, villains, swindlers and fictional speculators:\n  - *[Nicholas Nickleby](https:\/\/en.wikipedia.org\/wiki\/Nicholas_Nickleby \"Nicholas Nickleby\")* (1839) – Ralph Nickleby's great Joint Stock Company, United Metropolitan Improved Hot Muffin and Crumpet Baking and Punctual Delivery Company.\n  - *[Martin Chuzzlewit](https:\/\/en.wikipedia.org\/wiki\/Martin_Chuzzlewit \"Martin Chuzzlewit\")* (1844) – Anglo-Bengalee Disinterested Loan and Life Company, modelled loosely on the South Sea Bubble, is in essence a classic [Ponzi scheme](https:\/\/en.wikipedia.org\/wiki\/Ponzi_scheme \"Ponzi scheme\").\n  - *[David Copperfield](https:\/\/en.wikipedia.org\/wiki\/David_Copperfield \"David Copperfield\")* (1850) – The false accounting by the sycophant Uriah Heep, clerk to lawyer Mr Wickfield.\n  - *[Little Dorrit](https:\/\/en.wikipedia.org\/wiki\/Little_Dorrit \"Little Dorrit\")* (1857) – The financial house of Mr Merdle.\n- [Robert Goddard](https:\/\/en.wikipedia.org\/wiki\/Robert_Goddard_\\(novelist\\) \"Robert Goddard (novelist)\")'s novel *Sea Change* (2000) covers the aftermath of the \"bubble\" and the attempts by politicians to evade responsibility and prevent a [Jacobite](https:\/\/en.wikipedia.org\/wiki\/Jacobitism \"Jacobitism\") restoration.\n\n- [List of stock market crashes and bear markets](https:\/\/en.wikipedia.org\/wiki\/List_of_stock_market_crashes_and_bear_markets \"List of stock market crashes and bear markets\")\n- [SSC coinage](https:\/\/en.wikipedia.org\/wiki\/SSC_coinage \"SSC coinage\")\n- [Tulip mania](https:\/\/en.wikipedia.org\/wiki\/Tulip_mania \"Tulip mania\")\n- [History of company law in the United Kingdom](https:\/\/en.wikipedia.org\/wiki\/History_of_company_law_in_the_United_Kingdom \"History of company law in the United Kingdom\")\n- [Whaling in the United Kingdom](https:\/\/en.wikipedia.org\/wiki\/Whaling_in_the_United_Kingdom \"Whaling in the United Kingdom\")\n- [Mississippi Bubble](https:\/\/en.wikipedia.org\/wiki\/Mississippi_Bubble \"Mississippi Bubble\")\n- [Buttonwood Agreement](https:\/\/en.wikipedia.org\/wiki\/Buttonwood_Agreement \"Buttonwood Agreement\") USA 1792\n- [Bern banking crisis of 1720](https:\/\/en.wikipedia.org\/wiki\/Bern_banking_crisis_of_1720 \"Bern banking crisis of 1720\")\n\n1. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-3)** alternatively **The Governor and Company of the merchants of Great Britain, trading to the South Seas and other parts of America, and for the encouragement of fishing**\n2. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-63)** Start of session.\n\n1. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-1)** Thornbury, Walter, *Old and New London*, vol. 1, p. 538\n2. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-2)**\n   [\"Cloth Seal, Company, 1711–1853, South Seas & Fisheries\"](http:\/\/www.bagseals.org\/gallery\/main.php?g2_itemId=3246). *www.bagseals.org*.\n3. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-4)** *Journals of the House of Commons*, volume 16: 1708–1711, p. 685.\n4. ^ [***a***](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-:0_5-0) [***b***](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-:0_5-1) [***c***](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-:0_5-2)\n   Paul, Helen (2009). [\"The South Sea Company's slaving activities\"](https:\/\/www.southampton.ac.uk\/assets\/imported\/transforms\/content-block\/UsefulDownloads_Download\/326F907A8F434B05B2199578407AA4B6\/0924.pdf) (PDF). *Discussion Papers in Economics and Econometrics*. [ISSN](https:\/\/en.wikipedia.org\/wiki\/ISSN_\\(identifier\\) \"ISSN (identifier)\") [0966-4246](https:\/\/search.worldcat.org\/issn\/0966-4246).\n5. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-6)** Marshall, Dorothy (1962). *Eighteenth Century England*, pp. 121–130.\n6. ^ [***a***](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-:1_7-0) [***b***](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-:1_7-1)\n   Paul, Helen J. (2013). *The South Sea Bubble: an economic history of its origins and consequences*. London: Routledge. [ISBN](https:\/\/en.wikipedia.org\/wiki\/ISBN_\\(identifier\\) \"ISBN (identifier)\")\n   \n   [978-0-415-70839-5](https:\/\/en.wikipedia.org\/wiki\/Special:BookSources\/978-0-415-70839-5 \"Special:BookSources\/978-0-415-70839-5\")\n   \n   . [OCLC](https:\/\/en.wikipedia.org\/wiki\/OCLC_\\(identifier\\) \"OCLC (identifier)\") [925312648](https:\/\/search.worldcat.org\/oclc\/925312648).\n7. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-8)** Thornbury, Walter. \"Threadneedle Street\". [*Old and New London*](http:\/\/www.british-history.ac.uk\/old-new-london\/vol1\/pp531-544). Volume 1 (London, 1878). pp. 531–544 – via British History Online. Accessed 21 July 2016.\n8. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-9)** Carswell, pp. 40, 48–50\n9. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-10)** Carswell, pp. 50–51\n10. ^ [***a***](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-auto2_11-0) [***b***](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-auto2_11-1) Carswell, pp. 52–54\n11. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-12)** Carswell, pp. 54–55\n12. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-13)** Defoe, Daniel, *An Essay on the South-Sea Trade* ... , 2nd ed., (London, England: J. Baker, 1712), [pp. 40–41.](https:\/\/books.google.com\/books?id=NZ5VAAAAcAAJ&pg=PA40)\n13. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-14)** Carswell, p. 56\n14. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-15)** Carswell, pp. 57, 58\n15. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-16)** Carswell, pp. 60–63\n16. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-17)** Carswell, pp. 64–66\n17. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-18)** Carswell, pp. 65–66\n18. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-19)** Carswell, p. 67\n19. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-20)** Carswell, pp. 66–67\n20. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-21)** Carswell, pp. 67–70\n21. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-22)** Carswell, pp. 73–75\n22. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-23)** Carswell, pp. 75–76\n23. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-24)** Carswell, pp. 88–89\n24. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-25)** Carswell, pp. 89–90\n25. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-26)** Carswell, pp. 100–102\n26. ^ [***a***](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-auto_27-0) [***b***](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-auto_27-1) Carswell, pp. 102–107\n27. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-28)**\n    [\"UK Budget Pie Chart for 2010 – Charts\"](https:\/\/web.archive.org\/web\/20110728044409\/http:\/\/www.ukpublicspending.co.uk\/budget_pie_ukgs.php?span=ukgs302&year=1717&view=1&expand=&units=b&fy=2010&state=UK). Archived from [the original](http:\/\/www.ukpublicspending.co.uk\/budget_pie_ukgs.php?span=ukgs302&year=1717&view=1&expand=&units=b&fy=2010&state=UK#ukgs302) on 28 July 2011.\n28. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-29)** Carswell, pp. 112–113\n29. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-30)** Carswell, pp. 114–118\n30. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-31)** Cowles, ch. II, IV (esp. pp. 151, 168–169 for share prices)\n31. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-32)** Cowles, ch. IV\n32. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-33)** Cowles, chapter IV (esp. p. 146 for \"bribe shares\")\n33. ^ [***a***](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-auto1_34-0) [***b***](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-auto1_34-1) Carswell, pp. 116–117\n34. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-35)** Carswell, pp. 138–140\n35. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-36)**\n    Odlyzko, Andrew. [\"An undertaking of great advantage, but nobody to know what it is: Bubbles and gullibility\"](https:\/\/www.dtc.umn.edu\/~odlyzko\/doc\/mania17.pdf) (PDF). *University of Minnesota*. Retrieved 22 October 2020.\n36. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-37)**\n    [Alter, Peter](https:\/\/en.wikipedia.org\/wiki\/Peter_Alter \"Peter Alter\") (2018). \"Der geplatzte Traum vom schnellen Geld\". *[Damals](https:\/\/en.wikipedia.org\/wiki\/Damals \"Damals\")* (in German). Vol. 50, no. 8. pp. 72–76\\.\n37. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-38)**\n    [McDonald, Forrest](https:\/\/en.wikipedia.org\/wiki\/Forrest_McDonald \"Forrest McDonald\") (9 September 1990). [\"The English Revolution in America\"](https:\/\/web.archive.org\/web\/20150525193440\/https:\/\/www.nytimes.com\/1990\/09\/09\/books\/the-english-revolution-in-america.html). *New York Times Book Review*. Archived from [the original](https:\/\/www.nytimes.com\/1990\/09\/09\/books\/the-english-revolution-in-america.html?smid=url-share) on 25 May 2015.\n38. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-39)** Marshall, pp. 127–130.\n39. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-40)** Richard A. Kleer (2015), \"Riding a wave: the Company's role in the South Sea Bubble\", p. 165.\n40. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-41)** Stephen Taylor (2008), \"Walpole, Robert, first earl of Orford (1676–1745)\", *Oxford Dictionary of National Biography*\n41. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-42)** Spence, *Anecdotes*, 1820, p. 368.\n42. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-43)**\n    John O'Farrell (2007), *An Utterly Impartial History of Britain – Or 2000 Years of Upper Class Idiots In Charge*, Doubleday, [ISBN](https:\/\/en.wikipedia.org\/wiki\/ISBN_\\(identifier\\) \"ISBN (identifier)\")\n    \n    [978-0-385-61198-5](https:\/\/en.wikipedia.org\/wiki\/Special:BookSources\/978-0-385-61198-5 \"Special:BookSources\/978-0-385-61198-5\")\n43. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-44)**\n    Westfall, Richard S. (1983). [*Never at Rest: A Biography of Isaac Newton*](https:\/\/archive.org\/details\/neveratrestbiogr00west). Cambridge University Press. pp. [861](https:\/\/archive.org\/details\/neveratrestbiogr00west\/page\/861)–862. [ISBN](https:\/\/en.wikipedia.org\/wiki\/ISBN_\\(identifier\\) \"ISBN (identifier)\")\n    \n    [978-0-521-27435-7](https:\/\/en.wikipedia.org\/wiki\/Special:BookSources\/978-0-521-27435-7 \"Special:BookSources\/978-0-521-27435-7\")\n    \n    .\n44. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-45)** Holodny, Elena (10 November 2017). [\"Isaac Newton Was a Genius, but Even He Lost Millions in the Stock Market\"](https:\/\/www.businessinsider.com\/isaac-newton-lost-a-fortune-on-englands-hottest-stock-2016-1). *Business Insider*.\n45. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-inflation-UK_46-0)**\n    UK [Consumer Price Index](https:\/\/en.wikipedia.org\/wiki\/Consumer_Price_Index \"Consumer Price Index\") inflation figures from 1209–2024 based on data from\n    \n    [\"Inflation calculator\"](https:\/\/www.bankofengland.co.uk\/monetary-policy\/inflation\/inflation-calculator). *[Bank of England](https:\/\/en.wikipedia.org\/wiki\/Bank_of_England \"Bank of England\")*. London. 18 February 2026. Retrieved 1 April 2026.\n46. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-47)** Nelson (1945) states that the substantial illicit trade pursued by the South Sea Company officials under the Asiento \"must be considered as a major cause of the War of Jenkins' Ear because it threatened to destroy the entire commercial framework of the Spanish Empire ... Unable to accept the destruction of its commercial system, Spain attempted to negotiate but requested that the company, as an evidence of good faith, should open its accounts for inspection by the Spanish representatives. Naturally, the directors refused, for compliance would have meant the complete exposure of the illegal traffic. Neither Spain nor the South Sea Company would yield. War was the inevitable result\".\n47. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-48)** Brown (1926, p. 663) says that The failure to comply with the accounting provisions of the Asiento treaty (in the context of Spanish knowledge of secret accounts kept by the South Sea Company which would prove clandestine trading) was a constant source of the friction which culminated in armed conflict.\n48. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-49)** For Hildner (1938), the war of 1739 might have been averted if the issues addressed by the commission established in 1732 to settle disputes over the Asiento had been resolved.\n49. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-50)**\n    [\"History Cooperative – A Short History of Nearly Everything!\"](http:\/\/www.historycooperative.org\/cgi-bin\/justtop.cgi?act=justtop&url=http:\/\/www.historycooperative.org\/journals\/wm\/58.1\/eltis.html). *History Cooperative*.\n    \n    `{{cite web}}`: CS1 maint: deprecated archival service ([link](https:\/\/en.wikipedia.org\/wiki\/Category:CS1_maint:_deprecated_archival_service \"Category:CS1 maint: deprecated archival service\"))\n50. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-51)**\n    Paul, Helen. [\"The South Sea Company's slaving activities\"](http:\/\/www.ehs.org.uk\/ehs\/conference2004\/assets\/paul.doc).\n    \n    `{{cite web}}`: CS1 maint: deprecated archival service ([link](https:\/\/en.wikipedia.org\/wiki\/Category:CS1_maint:_deprecated_archival_service \"Category:CS1 maint: deprecated archival service\"))\n51. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-52)** Paul, H. J. (2010). *The South Sea Bubble*.\n52. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-53)** Walker, G. J. (1979), p. 101\n53. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-54)** Archivo General de Indias, Seville, Spain IG2785\n54. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-55)** McLachlan, (1940), pp. 130–131\n55. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-56)** Archivo General de Indias, Seville, Spain C266L3\n56. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-57)**\n    Hildner, Ernest G. (August 1938). \"The Role of the South Sea Company in the Diplomacy Leading to the War of Jenkins' Ear, 1729–1739\". *The Hispanic American Historical Review*. **18** (3): 322–341\\. [doi](https:\/\/en.wikipedia.org\/wiki\/Doi_\\(identifier\\) \"Doi (identifier)\"):[10\\.2307\/2507151](https:\/\/doi.org\/10.2307%2F2507151). [JSTOR](https:\/\/en.wikipedia.org\/wiki\/JSTOR_\\(identifier\\) \"JSTOR (identifier)\") [2507151](https:\/\/www.jstor.org\/stable\/2507151).\n57. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-58)**\n    Elking, Henry \\[1722\\](1980). *A view of the Greenland Trade and whale-fishery*. Reprinted: Whitby: Caedmon. [ISBN](https:\/\/en.wikipedia.org\/wiki\/ISBN_\\(identifier\\) \"ISBN (identifier)\")\n    \n    [0-905355-13-X](https:\/\/en.wikipedia.org\/wiki\/Special:BookSources\/0-905355-13-X \"Special:BookSources\/0-905355-13-X\")\n58. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-59)**\n    Zacchi, Uwe (1986). *Menschen von Föhr. Lebenswege aus drei Jahrhunderten* (in German). Heide: Boyens & Co. p. 13. [ISBN](https:\/\/en.wikipedia.org\/wiki\/ISBN_\\(identifier\\) \"ISBN (identifier)\")\n    \n    [978-3-8042-0359-4](https:\/\/en.wikipedia.org\/wiki\/Special:BookSources\/978-3-8042-0359-4 \"Special:BookSources\/978-3-8042-0359-4\")\n    \n    .\n59. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-60)** Anderson, Adam \\[1801\\](1967). *The Origin of Commerce*. Reprinted: New York: Kelley.\n60. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-61)** Evans, Martin H. (2005). Statutory requirements regarding surgeons on British whale-ships. *The Mariner's Mirror* **91** (1) 7–12.\n61. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-62)** National Maritime Museum, Greenwich, catalogue entry for sculpture of arms, object ID: HRA0043 [\\[1\\]](https:\/\/collections.rmg.co.uk\/collections\/objects\/605213.html)\n62. **[^](https:\/\/en.wikipedia.org\/wiki\/South_Sea_Company#cite_ref-64)** See, for 1711–21, J Carswell, *South Sea Bubble* (1960) 274–279; and for 1721–1840, see British Library, Add. MSS, 25544-9.\n\nHistorical\n\n- Balen, Malcolm (2002). *A Very English Deceit: The Secret History of the South Sea Bubble and the First Great Financial Scandal* (London: Fourth Estate) [ISBN](https:\/\/en.wikipedia.org\/wiki\/ISBN_\\(identifier\\) \"ISBN (identifier)\")\n  [978-1-841-15552-4](https:\/\/en.wikipedia.org\/wiki\/Special:BookSources\/978-1-841-15552-4 \"Special:BookSources\/978-1-841-15552-4\")\n- Brown, V.L. (1926), \"The South Sea Company and Contraband Trade\", *[The American Historical Review](https:\/\/en.wikipedia.org\/wiki\/The_American_Historical_Review \"The American Historical Review\")*, **31** (4): 662–678, [doi](https:\/\/en.wikipedia.org\/wiki\/Doi_\\(identifier\\) \"Doi (identifier)\"):[10\\.2307\/1840061](https:\/\/doi.org\/10.2307%2F1840061), [JSTOR](https:\/\/en.wikipedia.org\/wiki\/JSTOR_\\(identifier\\) \"JSTOR (identifier)\") [1840061](https:\/\/www.jstor.org\/stable\/1840061)\n- Carlos, Ann M. and Neal, Larry. (2006) \"The Micro-Foundations of the Early London Capital Market: Bank of England shareholders during and after the South Sea Bubble, 1720–25\", *Economic History Review* 59 (2006), pp. 498–538. [online](https:\/\/www.researchgate.net\/publication\/227708231_The_micro-foundations_of_the_early_London_capital_market_Bank_of_England_shareholders_during_and_after_the_South_Sea_Bubble_1720-251)\n- Carswell, John (1960), *The South Sea Bubble*, London: Cresset Press\n- [Cowles, Virginia](https:\/\/en.wikipedia.org\/wiki\/Virginia_Cowles \"Virginia Cowles\") (1960), *The Great Swindle: The Story of the South Sea Bubble*, New York: Harper\n- Dale, Richard S.; et al. (2005), \"Financial markets can go mad: evidence of irrational behaviour during the South Sea Bubble\", *Economic History Review*, **58** (2): 233–271, [doi](https:\/\/en.wikipedia.org\/wiki\/Doi_\\(identifier\\) \"Doi (identifier)\"):[10\\.1111\/j.1468-0289.2005.00304.x](https:\/\/doi.org\/10.1111%2Fj.1468-0289.2005.00304.x), [S2CID](https:\/\/en.wikipedia.org\/wiki\/S2CID_\\(identifier\\) \"S2CID (identifier)\") [154836178](https:\/\/api.semanticscholar.org\/CorpusID:154836178)\n- Dale, Richard (2004). *The First Crash: Lessons from the South Sea Bubble* (Princeton University Press)\n- Freeman, Mark, Robin Pearson, and James Taylor. (2013) \"Law, politics and the governance of English and Scottish joint-stock companies, 1600–1850\", *Business History* 55\\#4 (2013): 636–652. [online](http:\/\/www.tandfonline.com\/doi\/full\/10.1080\/00076791.2012.741971)\n- Harris, Ron (1994). \"The Bubble Act: Its Passage and its Effects on Business Organization\", *The Journal of Economic History*, 54 (3), 610–627\n- Hildner, E.G. Jr. (1938), \"The Role of the South Sea Company in the Diplomacy leading to the War of Jenkins' Ear, 1729–1739\", *The Hispanic American Historical Review*, **18** (3): 322–341, [doi](https:\/\/en.wikipedia.org\/wiki\/Doi_\\(identifier\\) \"Doi (identifier)\"):[10\\.2307\/2507151](https:\/\/doi.org\/10.2307%2F2507151), [JSTOR](https:\/\/en.wikipedia.org\/wiki\/JSTOR_\\(identifier\\) \"JSTOR (identifier)\") [2507151](https:\/\/www.jstor.org\/stable\/2507151)\n- Hoppit, Julian. (2002) \"The Myths of the South Sea Bubble\", *Transactions of the Royal Historical Society*, (2002) 12\\#1 pp. 141–165 [in JSTOR](https:\/\/www.jstor.org\/stable\/3679343)\n- Kleer, Richard A. (2015) \"Riding a wave: the Company's role in the South Sea Bubble\", *The Economic History Review* 68.1 (2015): 264–285. [online](https:\/\/www.researchgate.net\/profile\/Richard_Kleer\/publication\/264537000_Riding_a_wave_The_Company's_role_in_the_South_Sea_Bubble\/links\/564b825208ae3374e5ddba9a.)\n- Löwe, Kathleen (2021) *[Die Südseeblase in der englischen Kunst des 18. und 19. Jahrhunderts. Bilder einer Finanzkrise](http:\/\/www.reimer-mann-verlag.de\/controller.php?cmd=detail&titelnummer=103047&verlag=4)*, Berlin: Reimer.\n- McLachlan, J.O. (1940), *Trade and Peace With Old Spain, 1667–1750*, Cambridge: Cambridge University Press\n  \\[*[ISBN missing](https:\/\/en.wikipedia.org\/wiki\/Wikipedia:Citing_sources \"Wikipedia:Citing sources\")*\\]\n- McColloch, William E. (2013) \"A shackled revolution? The Bubble Act and financial regulation in eighteenth-century England\", *Review of Keynesian Economics* 1.3 (2013): 300–313. [online](https:\/\/www.researchgate.net\/profile\/Valerio_Cerretano\/publication\/286423413_Economic_crises_and_the_development_of_the_industrial_state_the_industrial_intervention_of_the_Bank_of_Italy_and_the_Bank_of_England_1918-1939\/links\/5804b91208ae73d9d6149867\/Economic-crises-and-the-development-of-the-industrial-state-the-industrial-intervention-of-the-Bank-of-Italy-and-the-Bank-of-England-1918-1939.pdf#page=38)\n- Mackay, C. *[Extraordinary Popular Delusions and the Madness of Crowds](https:\/\/en.wikipedia.org\/wiki\/Extraordinary_Popular_Delusions_and_the_Madness_of_Crowds \"Extraordinary Popular Delusions and the Madness of Crowds\")* (1841)\n- Marshall, Dorothy. (1962) *Eighteenth Century England* Longman. pp. 121–130.\\[*[ISBN missing](https:\/\/en.wikipedia.org\/wiki\/Wikipedia:Citing_sources \"Wikipedia:Citing sources\")*\\]\n- Michie, R.C. (2001), \"From Market to Exchange, 1693–1801\", *The London Stock Exchange*, Oxford: Oxford University Press, [ISBN](https:\/\/en.wikipedia.org\/wiki\/ISBN_\\(identifier\\) \"ISBN (identifier)\")\n  \n  [978-0-19-924255-9](https:\/\/en.wikipedia.org\/wiki\/Special:BookSources\/978-0-19-924255-9 \"Special:BookSources\/978-0-19-924255-9\")\n- Nelson, G.H. (1945), \"Contraband Trade Under the Asiento\", *[The American Historical Review](https:\/\/en.wikipedia.org\/wiki\/The_American_Historical_Review \"The American Historical Review\")*, **51** (1): 55–67, [doi](https:\/\/en.wikipedia.org\/wiki\/Doi_\\(identifier\\) \"Doi (identifier)\"):[10\\.2307\/1843076](https:\/\/doi.org\/10.2307%2F1843076), [JSTOR](https:\/\/en.wikipedia.org\/wiki\/JSTOR_\\(identifier\\) \"JSTOR (identifier)\") [1843076](https:\/\/www.jstor.org\/stable\/1843076)\n- Paul, Helen Julia (2010) *The South Sea Bubble: an economic history of its origins and consequences*, *Routledge Explorations in Economic History* [online](http:\/\/ieg-ego.eu\/en\/threads\/european-media\/european-media-events\/helen-j-paul-the-south-sea-bubble-1720) short summary\n- Paul, Helen. (2013) *The South Sea Bubble: An Economic History of its Origins and Consequences* Routledge, 176 pp. \\[*[ISBN missing](https:\/\/en.wikipedia.org\/wiki\/Wikipedia:Citing_sources \"Wikipedia:Citing sources\")*\\]\n- Paul, Helen, [*The \"South Sea Bubble\", 1720*](https:\/\/ieg-ego.eu\/de\/threads\/europaeische-medien\/europaeische-medienereignisse\/the-south-sea-bubble-1720-south-sea-bubble-be-freigabe), [EGO – European History Online](https:\/\/www.ieg-ego.eu\/), Mainz: [Institute of European History](http:\/\/www.ieg-mainz.de\/likecms\/index.php), 2015, retrieved: 17 March 2021 ([pdf](https:\/\/d-nb.info\/1125542748\/34)).\n- Plumb, J. H. (1956) *Sir Robert Walpole, vol. 1, The Making of a Statesman*. ch 8\n- Shea, Gary S. (2007), [\"Understanding financial derivatives during the South Sea Bubble: The case of the South Sea subscription shares\"](https:\/\/www.st-andrews.ac.uk\/~wwwecon\/CDMA\/papers\/wp0512.pdf) (PDF), *Oxford Economic Papers*, **59** (Supplement 1): i73–i104, [doi](https:\/\/en.wikipedia.org\/wiki\/Doi_\\(identifier\\) \"Doi (identifier)\"):[10\\.1093\/oep\/gpm031](https:\/\/doi.org\/10.1093%2Foep%2Fgpm031)\n- Temin, Peter; Voth, Hans-Joachim (2004), [\"Riding the South Sea Bubble\"](http:\/\/www.aeaweb.org\/articles.php?doi=10.1257\/0002828043052268), *[American Economic Review](https:\/\/en.wikipedia.org\/wiki\/American_Economic_Review \"American Economic Review\")*, **94** (5): 1654–1668, [doi](https:\/\/en.wikipedia.org\/wiki\/Doi_\\(identifier\\) \"Doi (identifier)\"):[10\\.1257\/0002828043052268](https:\/\/doi.org\/10.1257%2F0002828043052268)\n- Stratmann, Silke (2000) *Myths of Speculation: The South Sea Bubble and 18th-century English Literature*. Munich: Fink\n- Walker, G.J. (1979), *Política Española y Comercio Colonial 1700–1789*, Barcelona: Editorial Ariel\n\nFiction\n\n- Goddard, Robert (2000), *Sea Change*, London: Bantam Press, p. 416, [ISBN](https:\/\/en.wikipedia.org\/wiki\/ISBN_\\(identifier\\) \"ISBN (identifier)\")\n  \n  [978-0-593-04667-8](https:\/\/en.wikipedia.org\/wiki\/Special:BookSources\/978-0-593-04667-8 \"Special:BookSources\/978-0-593-04667-8\")\n  . *Novel set against the background of the South Sea bubble.*\n- Liss, David (2000), [*A Conspiracy of Paper*](https:\/\/archive.org\/details\/conspiracyofpape00liss), New York: Random House, [ISBN](https:\/\/en.wikipedia.org\/wiki\/ISBN_\\(identifier\\) \"ISBN (identifier)\")\n  \n  [978-0-375-50292-7](https:\/\/en.wikipedia.org\/wiki\/Special:BookSources\/978-0-375-50292-7 \"Special:BookSources\/978-0-375-50292-7\")\n  . *Novel set in the South Sea Company bubble.*\n\n[![Wikisource logo](https:\/\/upload.wikimedia.org\/wikipedia\/commons\/thumb\/4\/4c\/Wikisource-logo.svg\/40px-Wikisource-logo.svg.png)](https:\/\/en.wikipedia.org\/wiki\/File:Wikisource-logo.svg)\n\n- ![](https:\/\/upload.wikimedia.org\/wikipedia\/commons\/thumb\/f\/fa\/Wikiquote-logo.svg\/20px-Wikiquote-logo.svg.png) Quotations related to [South Sea Company](https:\/\/en.wikiquote.org\/wiki\/Special:Search\/South_Sea_Company \"wikiquote:Special:Search\/South Sea Company\") at Wikiquote\n- [South Sea Bubble collection at Harvard University](http:\/\/www.library.hbs.edu\/hc\/ssb\/index.html)\n- [Famous First Bubbles – South Sea Bubble](https:\/\/sites.google.com\/site\/davesmant\/monetary-economics\/famous-first-bubbles\/south-sea-bubble)\n- [Charles McKay's Account of The South Sea Bubble in Modern English](https:\/\/web.archive.org\/web\/20140106143016\/http:\/\/www.thesouthseabubble.com\/) at the [Wayback Machine](https:\/\/en.wikipedia.org\/wiki\/Wayback_Machine \"Wayback Machine\") (archived 6 January 2014)\n- [Deprecated link](https:\/\/en.wikipedia.org\/wiki\/Wikipedia:Archive.today_guidance \"Wikipedia:Archive.today guidance\") at [archive.today](https:\/\/en.wikipedia.org\/wiki\/Archive.today \"Archive.today\") (archived 2012-12-09)\n- [The South Sea Bubble](https:\/\/www.bbc.co.uk\/programmes\/b01pcs5g), audio programming with Melvyn Bragg and guests, BBC Radio 4.","meta_canonical":null}

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Boilerpipe Text	South Sea Company Arms of the South Sea Company: Azure, a globe whereon are represented the Straits of Magellan and Cape Horn all proper and in sinister chief point two herrings haurient in saltire argent crowned or, in a canton the united arms of Great Britain Company type Public Industry Slave trade , speculation , whaling Founded January 1711 ; 315 years ago Defunct 1853 ; 173 years ago Headquarters London , Great Britain 1754 engraving of Old South Sea House, the headquarters of the South Sea Company, which burned down in 1826, [ 1 ] on the corner of Bishopsgate Street and Threadneedle Street in the City of London The Dividend Hall of South Sea House, 1810 Heraldic grouping above main entrance to the surviving South Sea House, Threadneedle Street, rebuilt after the fire of 1826 An early trade label of the South Sea Company, for export of finest English serge cloth. The letters circumscribing the seal below should read "SS&FC", for "South Sea and Fishery Company" [ 2 ] 1723 pro-forma power of attorney signed by a shareholder of the South Sea Company showing the company's coat of arms and the Latin motto A Gadibus usque Auroram ("From Cádiz to Dawn", Juvenal , Satires , 10) The South Sea Bubble by Edward Matthew Ward , 1847. A Hogarthian image of the 1720 "South Sea Bubble" now in the Tate Britain The South Sea Company (officially: either The Governor and Company of the merchants of Great Britain, trading to the South Seas and other parts of America and for the encouragement of the Fishery or the Governor and Company of merchants of Great Britain, trading to the South-Seas, and other parts of America, and for encouraging the Fishery ) [ a ] [ 3 ] was a British joint-stock company founded in January 1711, created as a public-private partnership to consolidate and reduce the cost of the national debt . To generate income, in 1713 the company was granted a monopoly (the Asiento de Negros ) to supply African slaves to the islands in the " South Seas " and South America . [ 4 ] When the company was created, Britain was involved in the War of the Spanish Succession and Spain and Portugal controlled most of South America. There was thus no realistic prospect that trade would take place, and as it turned out, the Company never realised any significant profit from its monopoly. However, Company stock rose greatly in value as it expanded its operations dealing in government debt, and peaked in 1720 before suddenly collapsing to little above its original flotation price. The notorious economic bubble thus created, which ruined thousands of investors, became known as the South Sea Bubble . The Bubble Act 1720 ( 6 Geo. 1 c. 18), which forbade the creation of joint-stock companies without royal charter , was promoted by the South Sea Company itself before its collapse. In Great Britain, many investors were ruined by the share-price collapse, and as a result, the national economy diminished substantially. The founders of the scheme engaged in insider trading , by using their advance knowledge of the timings of national debt consolidations to make large profits from purchasing debt in advance. Huge bribes were given to politicians to support the acts of Parliament necessary for the scheme. [ 5 ] Company money was used to deal in its own shares, and selected individuals purchasing shares were given cash loans backed by those same shares to spend on purchasing more shares. The expectation of profits from trade with South America was talked up to encourage the public to purchase shares, but the bubble prices reached far beyond what the actual profits of the business (namely the slave trade) could justify. [ 6 ] A parliamentary inquiry was held after the bursting of the bubble to discover its causes. A number of politicians were disgraced, and people found to have profited unlawfully from the company had personal assets confiscated proportionate to their gains (most had already been rich and remained so). Finally, the Company was restructured and continued to operate for more than a century after the Bubble. The headquarters were in Threadneedle Street , at the centre of the City of London , the financial district of the capital. At the time of these events, the Bank of England was also a private company dealing in national debt, and the crash of its rival confirmed its position as banker to the British government. [ 7 ] When in August 1710 Robert Harley was appointed Chancellor of the Exchequer , the government had already become reliant on the Bank of England , a privately owned company chartered 16 years previously, which had obtained a monopoly as the lender to the government. The government had become dissatisfied with the service it was receiving and Harley was actively seeking new ways to improve the national finances. A new parliament met in November 1710 resolved to attend to the national finances, which were suffering from the pressures of two simultaneous wars : the War of the Spanish Succession with France, which ended in 1713, and the Great Northern War , which was not to end until 1721. Harley came prepared, with detailed accounts describing the situation of the national debt, which was customarily a piecemeal arrangement, with each government department borrowing independently as the need arose. He released the information steadily, continually adding new reports of debts incurred and scandalous expenditure, until in January 1711 the House of Commons agreed to appoint a committee to investigate the entire debt. The committee included Harley himself, the two Auditors of the Imprests (whose task was to investigate government spending), Edward Harley (the Chancellor's brother), Paul Foley (the Chancellor's brother-in-law), the Secretary of the Treasury , William Lowndes (who had had significant responsibility for reminting the entire debased British coinage in 1696) and John Aislabie (who represented the October Club , a group of about 200 MPs who had agreed to vote together). [ 8 ] Harley's first concern was to find £300,000 for the next quarter's payroll for the British army operating on the Continent under the Duke of Marlborough . This funding was provided by a private consortium of Edward Gibbon (grandfather of the historian ), George Caswall , and Hoare's Bank . The Bank of England had been operating a lottery on behalf of the government, but in 1710 this had produced less revenue than expected and another begun in 1711 was also performing poorly; Harley granted the authority to sell tickets to John Blunt , a director of the Hollow Sword Blade Company , which despite its name was an unofficial bank. Sales commenced on 3 March 1711 and tickets had completely sold out by 7 March, making it the first truly successful English state lottery. [ 9 ] The success was shortly followed by another larger lottery, "The Two Million Adventure" or "The Classis", with tickets costing £100, with a top prize of £20,000 and every ticket winning a prize of at least £10. Although prizes were advertised by their total value, they were in fact paid out by instalments in the form of a fixed annuity over a period of years, so that the government effectively held the prize money as borrowings until the whole value had been paid out to the winners. Marketing was handled by members of the Sword Blade syndicate, Gibbon selling £200,000 of tickets and earning £4,500 commission, and Blunt selling £993,000. Charles Blunt (a relative) was made Paymaster of the lottery with expenses of £5,000. Conception of the company [ edit ] The national debt investigation concluded that a total of £9 million was owed by the government, with no specifically allocated income to pay it off. Robert Harley and John Blunt had jointly devised a scheme to consolidate this debt in much the same way that the Bank of England had consolidated previous debts, although the Bank still held the monopoly for operating as a bank. All holders of the debt (creditors) would be required to surrender it to a new company formed for the purpose, the South Sea Company, which in return would issue them shares in itself to the same nominal value. The government would make an annual payment to the Company of £568,279, equating to 6% interest plus expenses, which would then be redistributed to the shareholders as a dividend. The company was also granted a monopoly to trade with South America, a potentially lucrative enterprise, but one controlled by Spain – with which Britain was at war. [ 10 ] At that time, when the continent of America was being explored and colonised, Europeans applied the term "South Seas" only to South America and surrounding waters. The concession both held out the potential for future profits and encouraged a desire for an end to the war, necessary if any profits were to be made. The original suggestion for the South Sea scheme came from William Paterson , one of the founders of the Bank of England and of the financially disastrous Darien Scheme . [ 10 ] Harley was rewarded for delivering the scheme by being created Earl of Oxford on 23 May 1711 and was promoted to Lord High Treasurer . With a more secure position, he began secret peace negotiations with France. Initial speculation [ edit ] The scheme to thus consolidate all government debt and to manage it better in the future held out the prospect of all existing creditors being repaid the full nominal value of their loans, which at the time before the scheme was publicised were valued at a discounted rate of £55 per £100 nominal value, as the lotteries were discredited. The government's ability to repay in full was widely doubted. Thus bonds representing the debt intended to be consolidated under the scheme were available for purchase on the open market at a price that allowed anyone with advance knowledge to buy and resell in the immediate future at a high profit, for as soon as the scheme became publicised the bonds would once again be worth at least their nominal value, as repayment was now more certain a prospect. This anticipation of gain made it possible for Harley to bring further financial supporters into the scheme, such as James Bateman and Theodore Janssen . [ 11 ] Daniel Defoe commented: [ 12 ] Unless the Spaniards are to be divested of common sense, infatuate, and given up, abandoning their own commerce, throwing away the only valuable stake they have left in the world, and in short, bent on their own ruin, we cannot suggest that they will ever, on any consideration, or for any equivalent, part with so valuable, indeed so inestimable a jewel, as the exclusive trade to their own plantations. — An Essay on the South-Sea Trade The originators of the scheme knew that there was no money to invest in a trading venture, and no realistic expectation that there would ever be a trade to exploit, but nevertheless, the potential for great wealth was widely publicised at every opportunity, so as to encourage interest in the scheme. The founders' objective was to create a company that would enable them to become wealthy and offer opportunities for further government contracts. [ 13 ] A bubble-era stock promoter, caricatured as a " night wind hawker " ( The Great Picture of Folly , 1720) The royal charter for the company, based on that of the Bank of England, was drawn up by Blunt who was paid £3,846 for his services in setting up the company. Directors would be elected every three years and shareholders would meet twice a year. The company employed a cashier, secretary and accountant. The governor was intended as an honorary position, and was later customarily held by the monarch. The charter allowed the full court of directors to nominate a smaller committee to act on any matter on its behalf. Directors of the Bank of England and of the East India Company were barred from being directors of the South Sea Company. Any ship of more than 500 tons owned by the company was to have a Church of England clergyman on board. The surrender of government debt for company stock was to occur in five lots. The first two of these, totalling £2.75 million from about 200 large investors, had already been arranged before the company's charter was issued on 10 September 1711. The government surrendered £0.75 million of its debt held by different departments (at that time individual office holders were at liberty to invest government funds under their control to their own advantage before it was required for government expenditure). Harley surrendered £8,000 of debt and was appointed Governor of the new company. Blunt, Caswall and Sawbridge together surrendered £65,000, Janssen £25,000 of his own plus £250,000 from a foreign consortium, Decker £49,000, Sir Ambrose Crawley £36,791. The company had a Sub-Governor, Bateman; a Deputy Governor, Ongley; and 30 ordinary directors. Nine of the directors were politicians, five were members of the Sword Blade consortium, and seven more were financial magnates who had been attracted to the scheme. [ 14 ] The company created a coat of arms with the motto A Gadibus usque ad Auroram ("From Cádiz to Dawn", from Juvenal , Satires , 10) and rented a large house in the City of London as its headquarters. Seven sub-committees were created to handle its everyday business, the most important being the "committee for the affairs of the company". The Sword Blade company was retained as the company's banker and on the strength of its new government connections issued notes in its own right, notwithstanding the Bank of England's monopoly. The task of the Company Secretary was to oversee trading activities; the Accountant, Grigsby, was responsible for registering and issuing stock; and the Cashier, Robert Knight, acted as Blunt's personal assistant at a salary of £200 per annum. [ 15 ] African slaves taken aboard a slave ship The Treaty of Utrecht of 1713 granted Britain an Asiento de Negros lasting 30 years to supply the Spanish colonies with 4,800 enslaved Africans ("slaves") per year. Britain was permitted to open offices in Buenos Aires , Caracas , Cartagena , Havana , Panama , Portobello and Veracruz to arrange the Atlantic slave trade . One ship of no more than 500 tons could be sent to one of these places each year (the Navío de Permiso ) with general trade goods. One quarter of the profits were to be reserved for the King of Spain. There was provision for two extra sailings at the start of the contract. The Asiento was granted in the name of Queen Anne and then contracted to the company. [ 16 ] By July the company had arranged contracts with the Royal African Company to supply the African slaves to Jamaica. Ten pounds was paid for a slave aged over 16, £8 for one under 16 but over 10. Two-thirds were to be male, and 90 per cent adult. The company transported 1,230 slaves from Jamaica to America in the first year, plus any that might have been added (against standing instructions) by the ship's captains on their own behalf. On arrival of the first cargoes, the local authorities refused to accept the Asiento, which had still not been officially confirmed there by the Spanish authorities. The slaves were eventually sold at a loss in the West Indies. [ 17 ] In 1714 the government announced that a quarter of profits would be reserved for Queen Anne and a further 7.5 per cent for a financial adviser, Manasseh Gilligan. Some company board members refused to accept the contract on these terms, and the government was obliged to reverse its decision. [ 18 ] Despite these setbacks, the company continued, having raised £200,000 to finance the operations. In 1714 2,680 slaves were carried, and for 1716–1717, 13,000 more, but the trade continued to be unprofitable. An import duty of 33 pieces of eight was charged on each slave (although for this purpose some slaves might be counted only as a fraction of a slave, depending on quality). One of the extra trade ships was sent to Cartagena in 1714 carrying woollen goods, despite warnings that there was no market for them there, and they remained unsold for two years. [ 19 ] It has been estimated that the company transported a little over 34,000 slaves with mortality comparable to its competitors, showing that slave trading was a significant part of the company's business and that it was carried out to the standards of the day. [ 4 ] Its trading activities offered a financial motive for investment in the company. [ 4 ] Changes of management [ edit ] The company was dependent on the goodwill of the government; when the government changed, so too did the company board. In 1714 one of the directors who had been sponsored by Harley, Arthur Moore, had attempted to send 60 tons of private goods on board the company ship. He was dismissed as a director, but the result was the beginning of Harley's fall from favour with the company. On 27 July 1714, Harley was replaced as Lord High Treasurer as a result of a disagreement that had broken out within the Tory faction in Parliament. Queen Anne died on 1 August 1714 and at the election of directors in 1715 the Prince of Wales (the future King George II ) was elected as governor of the company. The new King George I and the Prince of Wales both had large holdings in the company, as did some prominent Whig politicians, including James Craggs the Elder , the Earl of Halifax and Sir Joseph Jekyll . Craggs, as Postmaster General, was responsible for intercepting mail on behalf of the government to obtain political and financial information. All Tory politicians were removed from the board and replaced with businessmen. The Whigs Horatio Townshend, brother in law of Robert Walpole and the Duke of Argyll were elected directors. The change of government led to a revival of the company's share value, which had fallen below its issue price. The previous government had failed to make the interest payments to the company for the preceding two years, owing more than £1 million. The new administration insisted that the debt be written off, but allowed the company to issue new shares to stock holders to the value of the missed payments. At around £10 million, this now represented half the share capital issued in the entire country. In 1714 the company had 2,000 to 3,000 shareholders, more than either of its rivals. [ 20 ] By the time of the next directors' elections in 1718 a schism within the Whigs between Walpole's faction supporting the Prince of Wales and James Stanhope 's supporting the King. Argyll and Townshend were dismissed as directors, as were the surviving Tories Sir Richard Hoare and George Pitt, and King George I became governor. Four MPs remained directors, as did six people holding government financial offices. The Sword Blade Company remained bankers to the South Sea and had flourished despite the company's dubious legal position. Blunt and Sawbridge remained South Sea directors, and they had been joined by Gibbon and Child. Caswall had retired as a South Sea director to concentrate on the Sword Blade business. In November 1718 Sub-Governor Bateman and Deputy Governor Shepheard both died. Leaving aside the honorary position of Governor, this left the company suddenly without its two most senior and experienced directors. They were replaced by Sir John Fellowes as Sub-Governor and Charles Joye as Deputy. [ 21 ] In 1718 war broke out with Spain once again, in the War of the Quadruple Alliance . The company's assets in South America were seized, at a cost claimed by the company to be £300,000. Any prospect of profit from trade, for which the company had purchased ships and had been planning its next ventures, disappeared. [ 22 ] Refinancing government debt [ edit ] Events in France now came to influence the future of the company. A Scottish economist and financier, John Law , exiled after killing a man in a duel, had travelled around Europe before settling in France. There he founded a bank, which in December 1718 became the Banque Royale, national bank of France, while Law himself was granted sweeping powers to control the economy of France, which operated largely by royal decree. Law's remarkable success was known in financial circles throughout Europe, and came to inspire Blunt and his associates to make greater efforts to grow their own concerns. [ 23 ] In February 1719 Craggs explained to the House of Commons a new scheme for improving the national debt by converting the annuities issued after the 1710 lottery into South Sea stock. By an act of Parliament, the National Debt Act 1719 ( 6 Geo. 1 . c. 4), the company was granted the right to issue £1,150 of new stock for every £100 per annum of annuity which was surrendered. The government would pay 5 per cent per annum on the stock created, which would halve their annual bill. The conversion was voluntary, amounting to £2.5 million new stock if all converted. The company was to make an additional new loan to the government pro rata up to £750,000, again at 5 per cent. [ 24 ] In March there was an abortive attempt to restore the Old Pretender, James Edward Stuart , to the throne of Britain, with a small landing of troops in Scotland. They were defeated at the Battle of Glen Shiel on 10 June. The South Sea company presented the offer to the public in July 1719. The Sword Blade company spread a rumour that the Pretender had been captured, and the general euphoria induced the South Sea share price to rise from £100, where it had been in the spring, to £114. Annuitants were still paid out at the same money value of shares, the company keeping the profit from the rise in value before issuing. About two-thirds of the annuities were exchanged. Trading more debt for equity [ edit ] William Hogarth , Emblematical Print on the South Sea Scheme (1721). In the bottom left corner are Protestant, Catholic, and Jewish figures gambling, while in the middle there is a huge machine, like a merry-go-round, which people are boarding. At the top is a goat, written below which is "Who'l Ride". The people are scattered around the picture with a sense of disorder, while the progress of the well-dressed people towards the ride in the middle represents the foolishness of the crowd in buying stock in the South Sea Company, which spent more time issuing stock than anything else. Honor at left is dismembered; Honesty in center is broken on the wheel and at lower right trade lies dead. The 1719 scheme was a distinct success for the government and they sought to repeat it. Negotiations took place between Aislabie and Craggs for the government and Blunt, Cashier Knight and his assistant and Caswell. Janssen, the Sub Governor and Deputy Governor were also consulted but negotiations remained secret from most of the company. News from France was of fortunes being made investing in Law's bank, whose shares had risen sharply. Money was moving around Europe, and other flotations threatened to soak up capital (two insurance schemes in December 1719 each sought to raise £3 million). [ 25 ] Plans were made for a new scheme to take over most of the unconsolidated national debt of Britain (£30,981,712) in exchange for company shares. Annuities were valued as a lump sum necessary to produce the annual income over the original term at an assumed interest of 5 per cent, which favoured those with shorter terms still to run. The government agreed to pay the same amount to the company for all the fixed-term repayable debt as it had been paying before, but after seven years the 5 per cent interest rate would fall to 4 per cent on the new annuity debt and also that assumed previously. After the first year, the company was to give the government £3 million in four quarterly instalments. New stock would be created at a face value equal to the debt, but the share price was still rising and sales of the remaining stock, i.e. the excess of the total market value of the stock over the amount of the debt, would be used to raise the government fee plus a profit for the company. The more the price rose in advance of conversion, the more the company would make. Before the scheme, payments were costing the government £1.5 million per year. [ 26 ] In summary, the total government debt in 1719 was £50 million: £18.3m was held by three large corporations: £3.4m by the Bank of England £3.2m by the British East India Company £11.7m by the South Sea Company Privately held redeemable debt amounted to £16.5m £15m consisted of irredeemable annuities, long-fixed-term annuities of 72–87 years, and short annuities of 22 years remaining to expiry. The purpose of this conversion was similar to the old one, debt holders and annuitants might receive less return in total, but an illiquid investment was transformed into shares that could be readily traded. Shares backed by national debt were considered a safe investment and a convenient way to hold and move money, far easier and safer than metal coins. The only alternative safe asset, land, was much harder to sell and transfer of its ownership was legally much more complex. The government received a cash payment and lower interest on the debt and gained control over when the debt had to be repaid, which was not before seven years but then at its discretion. This avoided the risk that debt might become repayable when the government needed to borrow more, and could be forced into paying higher interest rates. The payment to the government was to be used to buy any debt not subscribed to the scheme, which although it helped the government, also helped the company by removing possibly competing securities from the market, including large holdings by the Bank of England. [ 26 ] Company stock was now trading at £123, so the issue amounted to an injection of £5 million of new money into a booming economy just as interest rates were falling. Gross Domestic Product (GDP) for Britain at this point was estimated as £64.4 million. [ 27 ] Public announcement [ edit ] South Sea Annuities share certificate, issued 13 November 1784. On display at the British Museum in London On 21 January the plan was presented to the board of the South Sea Company, and on 22 January Chancellor of the Exchequer John Aislabie presented it to Parliament. The House was stunned into silence but on recovering, proposed that the Bank of England should be invited to make a better offer. The South Sea increased its cash payment to £3.5 million, while the Bank proposed to undertake the conversion with a payment of £5.5 million and a fixed conversion price of £170 per £100 face-value Bank stock. On 1 February, the company negotiators led by Blunt raised their offer to £4 million plus a proportion of £3.5 million depending on how much of the debt was converted. They also agreed that the interest rate would decrease after four years instead of seven, and agreed to sell on behalf of the government £1 million of Exchequer bills (formerly handled by the Bank). The House accepted the South Sea offer and Bank stock fell sharply. [ 28 ] Perhaps the first sign of difficulty came when the South Sea Company announced that its Christmas 1719 dividend would be deferred for 12 months. The company embarked on a show of gratitude to its friends. Select individuals were sold a parcel of company stock at the current price. The transactions were recorded by Knight in the names of intermediaries, but no payments were received and no stock issued – the company had none to issue until the conversion of debt began. The individual received an option to sell his stock back to the company at any date at whatever market price might then apply. Shares went to the Craggs: the Elder and the Younger ; Lord Gower ; Lord Lansdowne ; and four other MPs. Lord Sunderland would gain £500 for every pound that stock rose; George I's mistress, their children and Countess Platen £120 per pound rise, Aislabie £200 per pound, Lord Stanhope £600 per pound. Others invested money, including the Richard Hampden the Treasurer to the Navy, who invested £25,000 of government money on his behalf. [ 29 ] The proposal was accepted in a slightly altered form in April 1720. Crucial in this conversion was the proportion of holders of irredeemable annuities who could be tempted to convert their securities at a high price for the new shares. (Holders of redeemable debt had no other choice but to subscribe.) The South Sea Company could set the conversion price but could not diverge much from the market price of its shares. The company ultimately acquired 85 per cent of the redeemables and 80 per cent of the irredeemables. Chart of company stock prices. The company then set to talking up its stock with "the most extravagant rumours" of the value of its potential trade in the New World; this was followed by a wave of "speculating frenzy". The share price had risen from the time the scheme was proposed, from £128 in January 1720, to £175 in February, £330 in March and following the scheme's acceptance £550 at the end of May. [ 30 ] What may have supported the company's high multiples (its P/E ratio ) was a fund of credit (known to the market) of £70 million available for commercial expansion which had been made available through substantial support, apparently, by Parliament and the King. [ 31 ] Shares in the company were "sold" to politicians at the market price; rather than paying for the shares, these recipients simply held the shares, with the option of selling them back to the company at any time, receiving the increase in market price. This method, as well as winning over the heads of government, the King's mistress, et al. , had the advantage of binding their interests to the interests of the company, to secure profits, the stock needed to rise. By publicising the names of their elite stockholders, the company managed to clothe itself in an aura of legitimacy, which attracted and kept other buyers. [ 32 ] The South Sea Company was by no means the only company seeking to raise money from investors in 1720. A large number of other joint-stock companies, making extravagant (sometimes fraudulent) claims about foreign or other ventures or bizarre schemes, had been created. Others represented potentially sound, although novel, schemes, such as for founding insurance companies. These were nicknamed "Bubbles". Some of the companies had no legal basis, while others (such as the Hollow Sword Blade Company , which acted as the South Sea Company's banker), used existing chartered companies for purposes different from those named at their creation. The York Buildings Company was set up to provide water to London, but was purchased by Case Billingsley who used it to purchase confiscated Jacobite estates in Scotland, which then formed the assets of an insurance company. [ 33 ] On 22 February 1720, John Hungerford raised the question of bubble companies in the House of Commons, and persuaded the House to set up a committee, which he chaired, to investigate. He identified a number of companies which between them sought to raise £40 million in capital. The committee investigated the companies, establishing a principle that companies should not be operating outside the objects specified in their charters. A potential embarrassment for the South Sea was avoided when the question of the Hollow Sword Blade Company arose. Difficulty was avoided by packing the committee with MPs who were supporters of the South Sea, and voting down by 75 to 25 the proposal to investigate the Hollow Sword. (At this time, committees of the House were either 'Open' or 'secret'. A secret committee was one with a fixed set of members who could vote on its proceedings. By contrast, any MP could join in with an 'open' committee and vote on its proceedings.) Stanhope, who was a member of the committee, received £50,000 of the 'resaleable' South Sea stock from Sawbridge, a director of the Hollow Sword, at about this time. Hungerford had previously been expelled from the Commons for accepting a bribe. [ 33 ] Amongst the bubble companies investigated were two supported by Lords Onslow and Chetwynd respectively, for insuring shipping. These were severely criticised and the questionable dealings of the Attorney-General and Solicitor-General in trying to obtain charters for the companies led to both being replaced. The schemes had the support of Walpole and Craggs , so that the larger part of the Bubble Act 1720 ( 6 Geo. 1 . c. 18) (which resulted in June 1720 from the committee's investigations) was devoted to creating charters for the Royal Exchange Assurance Corporation or London Assurance Corporation. The companies were required to pay £300,000 for the privilege. The act required that a joint stock company could be incorporated only by act of Parliament or royal charter . The prohibition on unauthorised joint stock ventures was not repealed until 1825. [ 34 ] The passing of the act gave a boost to the South Sea Company, its shares leaping to £890 in early June. This peak encouraged people to sell; to counterbalance this the company's directors ordered their agents to buy, which succeeded in propping the price up at around £750. Tree caricature from Bubble Cards. The price of the stock went up over the course of a year from about £100 to almost £1,000 per share. Its success caused a national frenzy— herd behaviour [ 6 ] —as all types of people, from peasants to lords, developed a feverish interest in investing, in South Seas primarily but in stocks generally. One famous apocryphal story is of a company that went public in 1720 as "a company for carrying out an undertaking of great advantage, but nobody to know what it is". [ 35 ] The price finally reached £1,000 in early August 1720, and the level of selling was such that the price started to fall, dropping back to £100 per share before the year was out. [ 36 ] This triggered bankruptcies amongst those who had bought on credit, and increased sales, including short selling [ citation needed ] (i.e., selling borrowed shares in the hope of buying them back at a profit if the price fell). In August 1720, the first of the instalment payments of the first and second money subscriptions on new issues of South Sea stock were due. Earlier in the year John Blunt had come up with an idea to prop up the share price, the company would lend people money to buy its shares. As a result, many shareholders could not pay for their shares except by selling them. [ citation needed ] A scramble for liquidity appeared internationally as "bubbles" were also ending in Amsterdam and Paris. The collapse coincided with the fall of the Mississippi Company of John Law in France and the price of South Sea shares began to decline. [ citation needed ] By the end of September the stock had fallen to £150. Company failures now extended to banks and goldsmiths , as they could not collect loans made on the stock, and thousands of individuals were ruined, including many members of the upper class. With investors outraged, Parliament was recalled in December and an investigation began. Reporting in 1721, it revealed widespread fraud amongst the company directors and corruption in the Cabinet. Among those implicated were John Aislabie (the Chancellor of the Exchequer), James Craggs the Elder (the Postmaster General ), James Craggs the Younger (the Southern Secretary ), and even Lord Stanhope and Lord Sunderland (the heads of the Ministry). Craggs the Elder and Craggs the Younger died in disgrace; the remainder were impeached for their corruption. The Commons found Aislabie guilty of the "most notorious, dangerous and infamous corruption" and he was imprisoned. [ citation needed ] The corruption around the South Sea bubble was the impetus for the writing and publication of Cato's Letters which became an important work first for the Radical Whigs and then into the libertarian ideology of the American Revolution . [ 37 ] The new First Lord of the Treasury , Robert Walpole , restored public confidence in the financial system. Public opinion, as shaped by the many prominent men who lost money, demanded revenge. Walpole supervised the process, which removed all 33 of the company directors and stripped them of, on average, 82 per cent of their wealth. The money went to the victims and the stock of the South Sea Company was divided between the Bank of England and the East India Company. Walpole made sure that King George and his mistresses were protected, and by a margin of three votes he managed to save several key government officials from impeachment. In the process, Walpole won plaudits as the saviour of the financial system while establishing himself as the dominant figure in British politics; historians credit him for rescuing the Whig government and the Hanoverian dynasty from disgrace. [ 38 ] [ 39 ] [ 40 ] Quotations prompted by the collapse [ edit ] Joseph Spence wrote that Lord Radnor reported to him "When Sir Isaac Newton was asked about the continuance of the rising of South Sea stock ... He answered 'that he could not calculate the madness of people'". [ 41 ] He is also quoted, "I can calculate the movement of the stars, but not the madness of men". [ 42 ] Newton owned nearly £22,000 in South Sea stock in 1722, but it is not known how much he lost, if anything. [ 43 ] There are numerous sources stating he lost up to £20,000 [ 44 ] (equivalent to £4.21 million in 2025). [ 45 ] The South Sea Company was created in 1711 to reduce the size of public debts, but was granted the commercial privilege of exclusive rights of trade to the Spanish Indies, based on the treaty of commerce signed by Britain and the Archduke Charles , candidate to the Spanish throne during the War of the Spanish Succession . After Philip V became the King of Spain, Britain obtained at the 1713 Treaty of Utrecht the rights to the slave trade to the Spanish Indies (or Asiento de Negros ) for 30 years. Those rights were previously held by the Compagnie de Guinée et de l'Assiente du Royaume de la France. The South Sea Company board opposed taking on the slave trade, which had shown little profitability when chartered companies had engaged in it. To increase the profitability, the Asiento contract included the right to send one yearly 500-ton ship to the fairs at Portobello and Veracruz loaded with duty-free merchandises, called the Navío de Permiso . The Crown of England and the King of Spain were each entitled to 25% of the profits, according to the terms of the contract, that was a copy of the French Asiento contract, but Queen Anne soon renounced her share. The King of Spain did not receive any payments due to him, and this was one of the sources of contention between the Spanish Crown and the South Sea Company. As was the case for previous holders of the Asiento, the Portuguese and the French, the profit was not in the slave trade but in the illegal contraband goods smuggled in the slave ships and in the annual ship. Those goods were sold at the Spanish colonies at a handsome price, for they were in high demand; and constituted unfair competition with taxed goods, proving a large drain on the Spanish Crown's trade income. The relationship between the South Sea Company and the Government of Spain was always bad, and worsened with time. The company complained of searches and seizures of goods, lack of profitability, and confiscation of properties during the wars between Britain and Spain of 1718–1723 and 1727–1729, during which the operations of the company were suspended. The Government of Spain complained of the illegal trade, failure of the company to present its accounts as stipulated by the contract, and non-payment of the King's share of the profits. These claims were a major cause of deteriorating relations between the two countries in 1738; and although the Prime Minister Walpole opposed war, there was strong support for it from the King, the House of Commons, and a faction in his own Cabinet. Walpole was able to negotiate a treaty with the King of Spain at the Convention of Pardo in January 1739 that stipulated that Spain would pay British merchants £95,000 in compensation for captures and seized goods, while the South Sea Company would pay the Spanish Crown £68,000 in due proceeds from the Asiento. The South Sea Company refused to pay those proceeds and the King of Spain retained payment of the compensation until payment from the South Sea Company could be secured. The break-up of relations between the South Sea Company and the Spanish Government was a prelude to the Guerra del Asiento , as the first Royal Navy fleets departed in July 1739 for the Caribbean, prior to the declaration of war, which lasted from October 1739 until 1748. This war is known as the War of Jenkins' Ear . [ 46 ] [ 47 ] [ 48 ] Slave trade under the Asiento [ edit ] Cover of the English translation of the Asiento contract signed by Britain and Spain in 1713 as part of the Utrecht treaty that ended the War of Spanish Succession. The contract granted exclusive rights to Britain to sell slaves in the Spanish Indies. Under the Treaty of Tordesillas , Spain was the only European power that could not establish factories in Africa to purchase slaves. The slaves for Spanish America were provided by companies that were granted exclusive rights to their trade. This monopoly contract was called the slave Asiento. Between 1701 and 1713 the Asiento contract was granted to France. In 1711 Britain had created the South Sea Company to reduce debt and to trade with Spanish America, but that commerce was illegal without a permit from Spain, and the only existing permit was the Asiento for the slave trade, so at the Treaty of Utrecht in 1713 Britain obtained the transfer of the Asiento contract from French to British hands for the next 30 years. The board of directors was reluctant to take on the slave trade, which was not an object of the company and had shown little profitability when carried out by chartered companies, but they finally agreed on 26 March 1714. The Asiento set a sale quota of 4,800 units of slaves per year. An adult male slave counted as one unit; females and children counted as fractions of a unit. Initially the slaves were provided by the Royal African Company . The South Sea Company established slave reception factories at Cartagena, Colombia , Veracruz , Mexico, Panama, Portobello , La Guaira , Buenos Aires , La Havana and Santiago de Cuba , and slave deposits at Jamaica and Barbados . Despite problems with speculation, the South Sea Company was relatively successful at slave trading and meeting its quota (it was unusual for other, similarly chartered companies to fulfill their quotas). According to records compiled by David Eltis and others, during the course of 96 voyages in 25 years, the South Sea Company purchased 34,000 slaves, of whom 30,000 survived the voyage across the Atlantic. [ 49 ] (Thus about 11% of the slaves died on the voyage: a relatively low mortality rate for the Middle Passage . [ 50 ] ) The company persisted with the slave trade through two wars with Spain and the calamitous 1720 commercial bubble . The company's slave trading peaked during 1725, five years after the bubble burst. [ 51 ] The slave Asiento contract of 1713 granted a permit to send one vessel of 500 tons per year, loaded with duty-free merchandise to be sold at the fairs of New Spain , Cartagena and Portobello . This was an unprecedented concession that broke two centuries of strict exclusion of foreign merchants from the Spanish Empire, although a quarter of the profit was to be paid to the Spanish Crown. [ 52 ] The first ship to head for the Americas, the Royal Prince , was scheduled for 1714 but was delayed until August 1716. In consideration of the three annual ships missed since the date of the Asiento, the permitted tonnage of the next ten ships was raised to 650. [ 53 ] Only seven annual ships sailed during the Asiento, the last one being the Royal Caroline in 1732. The company's failure to produce accounts for all the annual ships but the first one, and lack of payment of the proceeds to the Spanish Crown from the profits for all the annual ships, resulted in no permits being granted after the Royal Caroline trip of 1732–1734. In contrast to the "legitimate" trade in slaves, the regular trade of the annual ships generated healthy returns, in some case profits were over 100%. [ 54 ] Accounts for the voyage of the Royal Prince were not presented until 1733, following continuous demands by Spanish officials. They reported profits of £43,607. [ 55 ] Since the King of Spain was entitled to 25% of the profits, after deducting interest on a loan he claimed £8,678. The South Sea Company never paid the amount due for the first annual ship to the Spanish Crown, nor did it pay any amount for any of the other six trips. [ 56 ] : 341 The Greenland Company had been established by an act of Parliament, the Greenland Trade Act 1692 ( 4 Will. & Mar. c. 17) in 1693 with the object of catching whales in the Arctic. The products of their "whale-fishery" were to be free of customs and other duties. Partly due to maritime disruption caused by wars with France, the Greenland Company failed financially within a few years. In 1722 Henry Elking published a proposal, directed at the governors of the South Sea Company, that they should resume the "Greenland Trade" and send ships to catch whales in the Arctic. He made very detailed suggestions about how the ships should be crewed and equipped. [ 57 ] The British Parliament confirmed that a British Arctic "whale-fishery" would continue to benefit from freedom from customs duties, and in 1724 the South Sea Company decided to commence whaling. They had 12 whale-ships built on the River Thames and these went to the Greenland seas in 1725. Further ships were built in later years, but the venture was not successful. There were hardly any experienced whalemen remaining in Britain, and the company had to engage Dutch and Danish whalemen for the key posts aboard their ships: for instance all commanding officers and harpooners were hired from the North Frisian island of Föhr . [ 58 ] Other costs were badly controlled and the catches remained disappointingly few, even though the company was sending up to 25 ships to Davis Strait and the Greenland seas in some years. By 1732 the company had accumulated a net loss of £177,782 from their eight years of Arctic whaling. [ 59 ] The South Sea Company directors appealed to the British government for further support. Parliament had passed the Greenland Fishery Act 1731 ( 5 Geo. 2 . c. 28) in 1732 that extended the duty-free concessions for a further nine years. In 1733 the Whale Fishery Act 1732 ( 6 Geo. 2 . c. 33) was passed that also granted a government subsidy to British Arctic whalers, the first in a long series of such acts of Parliament that continued and modified the whaling subsidies throughout the 18th century. This, and the subsequent acts, required the whalers to meet conditions regarding the crewing and equipping of the whale-ships that closely resembled the conditions suggested by Elking in 1722. [ 60 ] In spite of the extended duty-free concessions, and the prospect of real subsidies as well, the court and directors of the South Sea Company decided that they could not expect to make profits from Arctic whaling. They sent out no more whale-ships after the loss-making 1732 season. Government debt after the Seven Years' War [ edit ] The company continued its trade (when not interrupted by war) until the end of the Seven Years' War (1756–1763). However, its main function was always managing government debt, rather than trading with the Spanish colonies. The South Sea Company continued its management of part of the national debt until it was disestablished in 1853, at which point the debt was reconsolidated. The debt was not paid off by the time of the First World War , at which point it was consolidated again, under terms that allowed the government to avoid repaying the principal. The armorials of the South Sea Company, according to a grant of arms dated 31 October 1711, were: Azure, a globe whereon are represented the Straits of Magellan and Cape Horn all proper and in sinister chief point two herrings haurient in saltire argent crowned or, in a canton the united arms of Great Britain . Crest: A ship of three masts in full sail . Supporters, dexter: The emblematic figure of Britannia, with the shield, lance etc all proper ; sinister: A fisherman completely clothed, with cap boots fishing net etc and in his hand a string of fish, all proper . [ 61 ] Officers of the South Sea Company [ edit ] South Sea Company Act 1753 Act of Parliament Parliament of Great Britain Long title An Act for reducing the Number of Directors of the Corporation of the Governor and Company of Merchants of Great Britain trading to The South-Seas and other Parts of America; and for encouraging the Fishery; and for regulating the Election of the Governors and Directors of the said Company. Citation 26 Geo. 2 . c. 16 Territorial extent Great Britain Dates Royal assent 15 May 1753 Commencement 11 January 1753 [ b ] Repealed 15 July 1867 Other legislation Repealed by Statute Law Revision Act 1867 Status: Repealed Text of statute as originally enacted The South Sea Company had a governor (generally an honorary position), a subgovernor, a deputy governor and 30 directors – reduced by the South Sea Company Act 1753 ( 26 Geo. 2 . c. 16) to 21 directors. [ 62 ] Year Governor Subgovernor Deputy governor July 1711 Robert Harley, 1st Earl of Oxford Sir James Bateman Samuel Ongley August 1712 Sir Ambrose Crowley October 1713 Samuel Shepheard February 1715 George, Prince of Wales February 1718 King George I November 1718 John Fellows February 1719 Charles Joye February 1721 Sir John Eyles, Bt John Rudge July 1727 King George II February 1730 John Hanbury February 1733 Sir Richard Hopkins John Bristow February 1735 Peter Burrell March 1756 John Bristow John Philipson February 1756 Lewis Way January 1760 King George III February 1763 Lewis Way Richard Jackson March 1768 Thomas Coventry January 1771 Thomas Coventry vacant (?) January 1772 John Warde March 1775 Samuel Salt January 1793 Benjamin Way Robert Dorrell February 1802 Peter Pierson February 1808 Charles Bosanquet Benjamin Harrison 1820 King George IV January 1826 Sir Robert Baker 1830 King William IV July 1837 Queen Victoria January 1838 Charles Franks Thomas Vigne David Liss ' historical-mystery novel A Conspiracy of Paper , set in 1720 London, is focused on the South Sea Company at the top of its power, its fierce rivalry with the Bank of England and the events leading up to the collapse of the "bubble". Charles Lamb 's essay The South-Sea House (1820) in Essays of Elia – Lamb once worked in the South Sea House, and adopted his pseudonym (Elia) from a coworker there. Charles Dickens novels are littered with stock-market speculations, villains, swindlers and fictional speculators: Nicholas Nickleby (1839) – Ralph Nickleby's great Joint Stock Company, United Metropolitan Improved Hot Muffin and Crumpet Baking and Punctual Delivery Company. Martin Chuzzlewit (1844) – Anglo-Bengalee Disinterested Loan and Life Company, modelled loosely on the South Sea Bubble, is in essence a classic Ponzi scheme . David Copperfield (1850) – The false accounting by the sycophant Uriah Heep, clerk to lawyer Mr Wickfield. Little Dorrit (1857) – The financial house of Mr Merdle. Robert Goddard 's novel Sea Change (2000) covers the aftermath of the "bubble" and the attempts by politicians to evade responsibility and prevent a Jacobite restoration. List of stock market crashes and bear markets SSC coinage Tulip mania History of company law in the United Kingdom Whaling in the United Kingdom Mississippi Bubble Buttonwood Agreement USA 1792 Bern banking crisis of 1720 ^ alternatively The Governor and Company of the merchants of Great Britain, trading to the South Seas and other parts of America, and for the encouragement of fishing ^ Start of session. ^ Thornbury, Walter, Old and New London , vol. 1, p. 538 ^ "Cloth Seal, Company, 1711–1853, South Seas & Fisheries" . www.bagseals.org . ^ Journals of the House of Commons , volume 16: 1708–1711, p. 685. ^ a b c Paul, Helen (2009). "The South Sea Company's slaving activities" (PDF) . Discussion Papers in Economics and Econometrics . ISSN 0966-4246 . ^ Marshall, Dorothy (1962). Eighteenth Century England , pp. 121–130. ^ a b Paul, Helen J. (2013). The South Sea Bubble: an economic history of its origins and consequences . London: Routledge. ISBN 978-0-415-70839-5 . OCLC 925312648 . ^ Thornbury, Walter. "Threadneedle Street". Old and New London . Volume 1 (London, 1878). pp. 531–544 – via British History Online. Accessed 21 July 2016. ^ Carswell, pp. 40, 48–50 ^ Carswell, pp. 50–51 ^ a b Carswell, pp. 52–54 ^ Carswell, pp. 54–55 ^ Defoe, Daniel, An Essay on the South-Sea Trade ... , 2nd ed., (London, England: J. Baker, 1712), pp. 40–41. ^ Carswell, p. 56 ^ Carswell, pp. 57, 58 ^ Carswell, pp. 60–63 ^ Carswell, pp. 64–66 ^ Carswell, pp. 65–66 ^ Carswell, p. 67 ^ Carswell, pp. 66–67 ^ Carswell, pp. 67–70 ^ Carswell, pp. 73–75 ^ Carswell, pp. 75–76 ^ Carswell, pp. 88–89 ^ Carswell, pp. 89–90 ^ Carswell, pp. 100–102 ^ a b Carswell, pp. 102–107 ^ "UK Budget Pie Chart for 2010 – Charts" . Archived from the original on 28 July 2011. ^ Carswell, pp. 112–113 ^ Carswell, pp. 114–118 ^ Cowles, ch. II, IV (esp. pp. 151, 168–169 for share prices) ^ Cowles, ch. IV ^ Cowles, chapter IV (esp. p. 146 for "bribe shares") ^ a b Carswell, pp. 116–117 ^ Carswell, pp. 138–140 ^ Odlyzko, Andrew. "An undertaking of great advantage, but nobody to know what it is: Bubbles and gullibility" (PDF) . University of Minnesota . Retrieved 22 October 2020 . ^ Alter, Peter (2018). "Der geplatzte Traum vom schnellen Geld". Damals (in German). Vol. 50, no. 8. pp. 72– 76. ^ McDonald, Forrest (9 September 1990). "The English Revolution in America" . New York Times Book Review . Archived from the original on 25 May 2015. ^ Marshall, pp. 127–130. ^ Richard A. Kleer (2015), "Riding a wave: the Company's role in the South Sea Bubble", p. 165. ^ Stephen Taylor (2008), "Walpole, Robert, first earl of Orford (1676–1745)", Oxford Dictionary of National Biography ^ Spence, Anecdotes , 1820, p. 368. ^ John O'Farrell (2007), An Utterly Impartial History of Britain – Or 2000 Years of Upper Class Idiots In Charge , Doubleday, ISBN 978-0-385-61198-5 ^ Westfall, Richard S. (1983). Never at Rest: A Biography of Isaac Newton . Cambridge University Press. pp. 861 –862. ISBN 978-0-521-27435-7 . ^ Holodny, Elena (10 November 2017). "Isaac Newton Was a Genius, but Even He Lost Millions in the Stock Market" . Business Insider . ^ UK Consumer Price Index inflation figures from 1209–2024 based on data from "Inflation calculator" . Bank of England . London. 18 February 2026 . Retrieved 1 April 2026 . ^ Nelson (1945) states that the substantial illicit trade pursued by the South Sea Company officials under the Asiento "must be considered as a major cause of the War of Jenkins' Ear because it threatened to destroy the entire commercial framework of the Spanish Empire ... Unable to accept the destruction of its commercial system, Spain attempted to negotiate but requested that the company, as an evidence of good faith, should open its accounts for inspection by the Spanish representatives. Naturally, the directors refused, for compliance would have meant the complete exposure of the illegal traffic. Neither Spain nor the South Sea Company would yield. War was the inevitable result". ^ Brown (1926, p. 663) says that The failure to comply with the accounting provisions of the Asiento treaty (in the context of Spanish knowledge of secret accounts kept by the South Sea Company which would prove clandestine trading) was a constant source of the friction which culminated in armed conflict. ^ For Hildner (1938), the war of 1739 might have been averted if the issues addressed by the commission established in 1732 to settle disputes over the Asiento had been resolved. ^ "History Cooperative – A Short History of Nearly Everything!" . History Cooperative . {{ cite web }} : CS1 maint: deprecated archival service ( link ) ^ Paul, Helen. "The South Sea Company's slaving activities" . {{ cite web }} : CS1 maint: deprecated archival service ( link ) ^ Paul, H. J. (2010). The South Sea Bubble . ^ Walker, G. J. (1979), p. 101 ^ Archivo General de Indias, Seville, Spain IG2785 ^ McLachlan, (1940), pp. 130–131 ^ Archivo General de Indias, Seville, Spain C266L3 ^ Hildner, Ernest G. (August 1938). "The Role of the South Sea Company in the Diplomacy Leading to the War of Jenkins' Ear, 1729–1739". The Hispanic American Historical Review . 18 (3): 322– 341. doi : 10.2307/2507151 . JSTOR 2507151 . ^ Elking, Henry [1722](1980). A view of the Greenland Trade and whale-fishery . Reprinted: Whitby: Caedmon. ISBN 0-905355-13-X ^ Zacchi, Uwe (1986). Menschen von Föhr. Lebenswege aus drei Jahrhunderten (in German). Heide: Boyens & Co. p. 13. ISBN 978-3-8042-0359-4 . ^ Anderson, Adam [1801](1967). The Origin of Commerce . Reprinted: New York: Kelley. ^ Evans, Martin H. (2005). Statutory requirements regarding surgeons on British whale-ships. 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The Bubble Act and financial regulation in eighteenth-century England", Review of Keynesian Economics 1.3 (2013): 300–313. online Mackay, C. Extraordinary Popular Delusions and the Madness of Crowds (1841) Marshall, Dorothy. (1962) Eighteenth Century England Longman. pp. 121–130. [ ISBN missing ] Michie, R.C. (2001), "From Market to Exchange, 1693–1801", The London Stock Exchange , Oxford: Oxford University Press, ISBN 978-0-19-924255-9 Nelson, G.H. (1945), "Contraband Trade Under the Asiento", The American Historical Review , 51 (1): 55– 67, doi : 10.2307/1843076 , JSTOR 1843076 Paul, Helen Julia (2010) The South Sea Bubble: an economic history of its origins and consequences , Routledge Explorations in Economic History online short summary Paul, Helen. (2013) The South Sea Bubble: An Economic History of its Origins and Consequences Routledge, 176 pp. [ ISBN missing ] Paul, Helen, The "South Sea Bubble", 1720 , EGO – European History Online , Mainz: Institute of European History , 2015, retrieved: 17 March 2021 ( pdf ). Plumb, J. H. (1956) Sir Robert Walpole, vol. 1, The Making of a Statesman . ch 8 Shea, Gary S. (2007), "Understanding financial derivatives during the South Sea Bubble: The case of the South Sea subscription shares" (PDF) , Oxford Economic Papers , 59 (Supplement 1): i73– i104, doi : 10.1093/oep/gpm031 Temin, Peter; Voth, Hans-Joachim (2004), "Riding the South Sea Bubble" , American Economic Review , 94 (5): 1654– 1668, doi : 10.1257/0002828043052268 Stratmann, Silke (2000) Myths of Speculation: The South Sea Bubble and 18th-century English Literature . Munich: Fink Walker, G.J. (1979), Política Española y Comercio Colonial 1700–1789 , Barcelona: Editorial Ariel Fiction Goddard, Robert (2000), Sea Change , London: Bantam Press, p. 416, ISBN 978-0-593-04667-8 . Novel set against the background of the South Sea bubble. Liss, David (2000), A Conspiracy of Paper , New York: Random House, ISBN 978-0-375-50292-7 . Novel set in the South Sea Company bubble. Quotations related to South Sea Company at Wikiquote South Sea Bubble collection at Harvard University Famous First Bubbles – South Sea Bubble Charles McKay's Account of The South Sea Bubble in Modern English at the Wayback Machine (archived 6 January 2014) Deprecated link at archive.today (archived 2012-12-09) The South Sea Bubble , audio programming with Melvyn Bragg and guests, BBC Radio 4.
Markdown	[Jump to content](https://en.wikipedia.org/wiki/South_Sea_Company#bodyContent) Main menu Main menu move to sidebar hide Navigation - [Main page](https://en.wikipedia.org/wiki/Main_Page "Visit the main page [z]") - [Contents](https://en.wikipedia.org/wiki/Wikipedia:Contents "Guides to browsing Wikipedia") - [Current events](https://en.wikipedia.org/wiki/Portal:Current_events "Articles related to current events") - [Random article](https://en.wikipedia.org/wiki/Special:Random "Visit a randomly selected article [x]") - [About Wikipedia](https://en.wikipedia.org/wiki/Wikipedia:About "Learn about Wikipedia and how it works") - [Contact us](https://en.wikipedia.org/wiki/Wikipedia:Contact_us "How to contact Wikipedia") Contribute - [Help](https://en.wikipedia.org/wiki/Help:Contents "Guidance on how to use and edit Wikipedia") - [Learn to edit](https://en.wikipedia.org/wiki/Help:Introduction "Learn how to edit Wikipedia") - [Community portal](https://en.wikipedia.org/wiki/Wikipedia:Community_portal "The hub for editors") - [Recent changes](https://en.wikipedia.org/wiki/Special:RecentChanges "A list of recent changes to Wikipedia [r]") - [Upload file](https://en.wikipedia.org/wiki/Wikipedia:File_upload_wizard "Add images or other media for use on Wikipedia") - [Special pages](https://en.wikipedia.org/wiki/Special:SpecialPages "A list of all special pages [q]") [![](https://en.wikipedia.org/static/images/icons/enwiki-25.svg) ![Wikipedia](https://en.wikipedia.org/static/images/mobile/copyright/wikipedia-wordmark-en-25.svg) ![The Free Encyclopedia](https://en.wikipedia.org/static/images/mobile/copyright/wikipedia-tagline-en-25.svg)](https://en.wikipedia.org/wiki/Main_Page) [Search](https://en.wikipedia.org/wiki/Special:Search "Search Wikipedia [f]") Appearance - [Donate](https://donate.wikimedia.org/?wmf_source=donate&wmf_medium=sidebar&wmf_campaign=en.wikipedia.org&uselang=en) - [Create account](https://en.wikipedia.org/w/index.php?title=Special:CreateAccount&returnto=South+Sea+Company "You are encouraged to create an account and log in; however, it is not mandatory") - [Log in](https://en.wikipedia.org/w/index.php?title=Special:UserLogin&returnto=South+Sea+Company "You're encouraged to log in; however, it's not mandatory. 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[o]") ## Contents move to sidebar hide - [(Top)](https://en.wikipedia.org/wiki/South_Sea_Company) - [1 Foundation](https://en.wikipedia.org/wiki/South_Sea_Company#Foundation) Toggle Foundation subsection - [1\.1 Conception of the company](https://en.wikipedia.org/wiki/South_Sea_Company#Conception_of_the_company) - [1\.2 Initial speculation](https://en.wikipedia.org/wiki/South_Sea_Company#Initial_speculation) - [1\.3 Flotation](https://en.wikipedia.org/wiki/South_Sea_Company#Flotation) - [1\.4 The slave trade](https://en.wikipedia.org/wiki/South_Sea_Company#The_slave_trade) - [1\.5 Changes of management](https://en.wikipedia.org/wiki/South_Sea_Company#Changes_of_management) - [1\.6 War](https://en.wikipedia.org/wiki/South_Sea_Company#War) - [2 Refinancing government debt](https://en.wikipedia.org/wiki/South_Sea_Company#Refinancing_government_debt) Toggle Refinancing government debt subsection - [2\.1 Trading more debt for equity](https://en.wikipedia.org/wiki/South_Sea_Company#Trading_more_debt_for_equity) - [2\.1.1 Public announcement](https://en.wikipedia.org/wiki/South_Sea_Company#Public_announcement) - [2\.2 Inflating the share price](https://en.wikipedia.org/wiki/South_Sea_Company#Inflating_the_share_price) - [2\.3 Bubble Act](https://en.wikipedia.org/wiki/South_Sea_Company#Bubble_Act) - [2\.4 Top reached](https://en.wikipedia.org/wiki/South_Sea_Company#Top_reached) - [2\.5 Recriminations](https://en.wikipedia.org/wiki/South_Sea_Company#Recriminations) - [2\.6 Quotations prompted by the collapse](https://en.wikipedia.org/wiki/South_Sea_Company#Quotations_prompted_by_the_collapse) - [3 A trading company](https://en.wikipedia.org/wiki/South_Sea_Company#A_trading_company) Toggle A trading company subsection - [3\.1 Slave trade under the Asiento](https://en.wikipedia.org/wiki/South_Sea_Company#Slave_trade_under_the_Asiento) - [3\.2 The annual ship](https://en.wikipedia.org/wiki/South_Sea_Company#The_annual_ship) - [3\.3 Arctic whaling](https://en.wikipedia.org/wiki/South_Sea_Company#Arctic_whaling) - [4 Government debt after the Seven Years' War](https://en.wikipedia.org/wiki/South_Sea_Company#Government_debt_after_the_Seven_Years'_War) - [5 Armorials](https://en.wikipedia.org/wiki/South_Sea_Company#Armorials) - [6 Officers of the South Sea Company](https://en.wikipedia.org/wiki/South_Sea_Company#Officers_of_the_South_Sea_Company) - [7 In fiction](https://en.wikipedia.org/wiki/South_Sea_Company#In_fiction) - [8 See also](https://en.wikipedia.org/wiki/South_Sea_Company#See_also) - [9 Notes](https://en.wikipedia.org/wiki/South_Sea_Company#Notes) - [10 References](https://en.wikipedia.org/wiki/South_Sea_Company#References) - [11 Bibliography](https://en.wikipedia.org/wiki/South_Sea_Company#Bibliography) - [12 External links](https://en.wikipedia.org/wiki/South_Sea_Company#External_links) Toggle the table of contents # South Sea Company 24 languages - [العربية](https://ar.wikipedia.org/wiki/%D8%B4%D8%B1%D9%83%D8%A9_%D8%A7%D9%84%D8%A8%D8%AD%D8%B1_%D8%A7%D9%84%D8%AC%D9%86%D9%88%D8%A8%D9%8A "شركة البحر الجنوبي – Arabic") - [Azərbaycanca](https://az.wikipedia.org/wiki/C%C9%99nub_d%C9%99nizl%C9%99r_%C5%9Firk%C9%99ti "Cənub dənizlər şirkəti – Azerbaijani") - [Español](https://es.wikipedia.org/wiki/Compa%C3%B1%C3%ADa_del_Mar_del_Sur "Compañía del Mar del Sur – Spanish") - [Eesti](https://et.wikipedia.org/wiki/L%C3%B5unamere_kompanii "Lõunamere kompanii – Estonian") - [Suomi](https://fi.wikipedia.org/wiki/Etel%C3%A4meren_kupla "Etelämeren kupla – Finnish") - [Français](https://fr.wikipedia.org/wiki/Compagnie_de_la_mer_du_Sud "Compagnie de la mer du Sud – French") - [Gaeilge](https://ga.wikipedia.org/wiki/Baothchuideachta_na_Farraige_Theas "Baothchuideachta na Farraige Theas – Irish") - [Galego](https://gl.wikipedia.org/wiki/Compa%C3%B1%C3%ADa_dos_Mares_do_Sur "Compañía dos Mares do Sur – Galician") - [עברית](https://he.wikipedia.org/wiki/%D7%97%D7%91%D7%A8%D7%AA_%D7%94%D7%99%D7%9D_%D7%94%D7%93%D7%A8%D7%95%D7%9E%D7%99 "חברת הים הדרומי – Hebrew") - [Italiano](https://it.wikipedia.org/wiki/South_Sea_Company "South Sea Company – Italian") - [日本語](https://ja.wikipedia.org/wiki/%E5%8D%97%E6%B5%B7%E4%BC%9A%E7%A4%BE "南海会社 – Japanese") - [한국어](https://ko.wikipedia.org/wiki/%EB%82%A8%ED%95%B4%ED%9A%8C%EC%82%AC "남해회사 – Korean") - [Nederlands](https://nl.wikipedia.org/wiki/South_Sea_Company "South Sea Company – Dutch") - [Norsk bokmål](https://no.wikipedia.org/wiki/South_Sea_Company "South Sea Company – Norwegian Bokmål") - [Polski](https://pl.wikipedia.org/wiki/Kompania_M%C3%B3rz_Po%C5%82udniowych "Kompania Mórz Południowych – Polish") - [پښتو](https://ps.wikipedia.org/wiki/%D8%AF_%D8%B3%D9%88%DB%8C%D9%84%D9%8A_%D8%B3%D9%85%D9%86%D8%AF%D8%B1_%D8%B4%D8%B1%DA%A9%D8%AA "د سویلي سمندر شرکت – Pashto") - [Português](https://pt.wikipedia.org/wiki/Companhia_dos_Mares_do_Sul "Companhia dos Mares do Sul – Portuguese") - [Русский](https://ru.wikipedia.org/wiki/%D0%9A%D0%BE%D0%BC%D0%BF%D0%B0%D0%BD%D0%B8%D1%8F_%D0%AE%D0%B6%D0%BD%D1%8B%D1%85_%D0%BC%D0%BE%D1%80%D0%B5%D0%B9 "Компания Южных морей – Russian") - [ไทย](https://th.wikipedia.org/wiki/%E0%B8%9A%E0%B8%A3%E0%B8%B4%E0%B8%A9%E0%B8%B1%E0%B8%97%E0%B9%80%E0%B8%8B%E0%B8%B2%E0%B8%98%E0%B9%8C%E0%B8%8B%E0%B8%B5 "บริษัทเซาธ์ซี – Thai") - [Türkçe](https://tr.wikipedia.org/wiki/G%C3%BCney_Denizi_%C5%9Eirketi "Güney Denizi Şirketi – Turkish") - [Українська](https://uk.wikipedia.org/wiki/%D0%9A%D0%BE%D0%BC%D0%BF%D0%B0%D0%BD%D1%96%D1%8F_%D0%9F%D1%96%D0%B2%D0%B4%D0%B5%D0%BD%D0%BD%D0%B8%D1%85_%D0%BC%D0%BE%D1%80%D1%96%D0%B2 "Компанія Південних морів – Ukrainian") - [吴语](https://wuu.wikipedia.org/wiki/%E5%8D%97%E6%B5%B7%E6%B3%A1%E6%B2%AB%E4%BA%8B%E4%BB%B6 "南海泡沫事件 – Wu") - [粵語](https://zh-yue.wikipedia.org/wiki/%E5%8D%97%E6%B5%B7%E5%85%AC%E5%8F%B8%E6%B3%A1%E6%B2%AB "南海公司泡沫 – Cantonese") - [中文](https://zh.wikipedia.org/wiki/%E5%8D%97%E6%B5%B7%E6%B3%A1%E6%B2%AB%E4%BA%8B%E4%BB%B6 "南海泡沫事件 – Chinese") [Edit links](https://www.wikidata.org/wiki/Special:EntityPage/Q1210696#sitelinks-wikipedia "Edit interlanguage links") - [Article](https://en.wikipedia.org/wiki/South_Sea_Company "View the content page [c]") - [Talk](https://en.wikipedia.org/wiki/Talk:South_Sea_Company "Discuss improvements to the content page [t]") English - [Read](https://en.wikipedia.org/wiki/South_Sea_Company) - 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For the Noël Coward play, see [South Sea Bubble (play)](https://en.wikipedia.org/wiki/South_Sea_Bubble_\(play\) "South Sea Bubble (play)"). For the painting, see [The South Sea Bubble](https://en.wikipedia.org/wiki/The_South_Sea_Bubble "The South Sea Bubble"). \| \| \| \|---\|---\| \| [![](https://upload.wikimedia.org/wikipedia/commons/thumb/2/2e/Arms_of_the_South_Sea_Company.svg/250px-Arms_of_the_South_Sea_Company.svg.png)](https://en.wikipedia.org/wiki/File:Arms_of_the_South_Sea_Company.svg)Arms of the South Sea Company: Azure, a globe whereon are represented the [Straits of Magellan](https://en.wikipedia.org/wiki/Straits_of_Magellan "Straits of Magellan") and [Cape Horn](https://en.wikipedia.org/wiki/Cape_Horn "Cape Horn") all [proper](https://en.wikipedia.org/wiki/Tincture_\(heraldry\) "Tincture (heraldry)") and in [sinister](https://en.wikipedia.org/wiki/Dexter_and_sinister "Dexter and sinister") chief point two herrings haurient in saltire argent crowned or, in a [canton](https://en.wikipedia.org/wiki/Canton_\(heraldry\) "Canton (heraldry)") the [united arms of Great Britain](https://en.wikipedia.org/wiki/Royal_coat_of_arms_of_the_United_Kingdom "Royal coat of arms of the United Kingdom") \| \| \| Company type \| [Public](https://en.wikipedia.org/wiki/Joint-stock_company "Joint-stock company") \| \| Industry \| [Slave trade](https://en.wikipedia.org/wiki/History_of_slavery "History of slavery"), [speculation](https://en.wikipedia.org/wiki/Speculation "Speculation"), [whaling](https://en.wikipedia.org/wiki/Whaling "Whaling") \| \| Founded \| January 1711; 315 years ago (1711-01) \| \| Defunct \| 1853; 173 years ago (1853) \| \| Headquarters \| London, Great Britain \| [![](https://upload.wikimedia.org/wikipedia/commons/thumb/b/b9/SouthSeaHouse_Stowe%27sSurveyOfLondon_1754.PNG/250px-SouthSeaHouse_Stowe%27sSurveyOfLondon_1754.PNG)](https://en.wikipedia.org/wiki/File:SouthSeaHouse_Stowe%27sSurveyOfLondon_1754.PNG) 1754 engraving of Old South Sea House, the headquarters of the South Sea Company, which burned down in 1826,[\[1\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-1) on the corner of [Bishopsgate Street](https://en.wikipedia.org/wiki/Bishopsgate_Street "Bishopsgate Street") and [Threadneedle Street](https://en.wikipedia.org/wiki/Threadneedle_Street "Threadneedle Street") in the [City of London](https://en.wikipedia.org/wiki/City_of_London "City of London") [![](https://upload.wikimedia.org/wikipedia/commons/thumb/2/2c/Microcosm_of_London_Plate_101_-_South_Sea_House%2C_Dividend_Hall_%28tone%29.jpg/250px-Microcosm_of_London_Plate_101_-_South_Sea_House%2C_Dividend_Hall_%28tone%29.jpg)](https://en.wikipedia.org/wiki/File:Microcosm_of_London_Plate_101_-_South_Sea_House,_Dividend_Hall_\(tone\).jpg) The [Dividend](https://en.wikipedia.org/wiki/Dividend "Dividend") Hall of South Sea House, 1810 [![](https://upload.wikimedia.org/wikipedia/commons/thumb/8/86/South_Sea_House_-_Portal.jpg/250px-South_Sea_House_-_Portal.jpg)](https://en.wikipedia.org/wiki/File:South_Sea_House_-_Portal.jpg) Heraldic grouping above main entrance to the surviving South Sea House, Threadneedle Street, rebuilt after the fire of 1826 [![](https://upload.wikimedia.org/wikipedia/commons/thumb/3/3c/SouthSeaCompany_TradeLabel.png/250px-SouthSeaCompany_TradeLabel.png)](https://en.wikipedia.org/wiki/File:SouthSeaCompany_TradeLabel.png) An early trade label of the South Sea Company, for export of finest English [serge](https://en.wikipedia.org/wiki/Serge_\(fabric\) "Serge (fabric)") cloth. The letters circumscribing the seal below should read "SS\&FC", for "South Sea and Fishery Company"[\[2\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-2) [![](https://upload.wikimedia.org/wikipedia/commons/thumb/3/33/ShareCertificate_SouthSeaCompany_1733.jpg/250px-ShareCertificate_SouthSeaCompany_1733.jpg)](https://en.wikipedia.org/wiki/File:ShareCertificate_SouthSeaCompany_1733.jpg) 1723 pro-forma power of attorney signed by a shareholder of the South Sea Company showing the company's coat of arms and the Latin motto A Gadibus usque Auroram ("From [Cádiz](https://en.wikipedia.org/wiki/C%C3%A1diz "Cádiz") to Dawn", [Juvenal](https://en.wikipedia.org/wiki/Juvenal "Juvenal"), [Satires](https://en.wikipedia.org/wiki/Satires_\(Juvenal\) "Satires (Juvenal)"), 10) [![](https://upload.wikimedia.org/wikipedia/commons/thumb/c/c2/Edward_Matthew_Ward_%281816-1879%29_-_The_South_Sea_Bubble%2C_a_Scene_in_%27Change_Alley_in_1720_-_N00432_-_National_Gallery.jpg/250px-Edward_Matthew_Ward_%281816-1879%29_-_The_South_Sea_Bubble%2C_a_Scene_in_%27Change_Alley_in_1720_-_N00432_-_National_Gallery.jpg)](https://en.wikipedia.org/wiki/File:Edward_Matthew_Ward_\(1816-1879\)_-_The_South_Sea_Bubble,_a_Scene_in_%27Change_Alley_in_1720_-_N00432_-_National_Gallery.jpg) [The South Sea Bubble](https://en.wikipedia.org/wiki/The_South_Sea_Bubble "The South Sea Bubble") by [Edward Matthew Ward](https://en.wikipedia.org/wiki/Edward_Matthew_Ward "Edward Matthew Ward"), 1847. A [Hogarthian](https://en.wikipedia.org/wiki/Hogarthian "Hogarthian") image of the 1720 "South Sea Bubble" now in the [Tate Britain](https://en.wikipedia.org/wiki/Tate_Britain "Tate Britain") The South Sea Company (officially: either The Governor and Company of the merchants of Great Britain, trading to the South Seas and other parts of America and for the encouragement of the Fishery or the Governor and Company of merchants of Great Britain, trading to the South-Seas, and other parts of America, and for encouraging the Fishery)[\[a\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-3)[\[3\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-4) was a British [joint-stock company](https://en.wikipedia.org/wiki/Joint-stock_company "Joint-stock company") founded in January 1711, created as a [public-private partnership](https://en.wikipedia.org/wiki/Public-private_partnership "Public-private partnership") to [consolidate](https://en.wikipedia.org/wiki/Debt_consolidation "Debt consolidation") and reduce the cost of the [national debt](https://en.wikipedia.org/wiki/National_debt "National debt"). To generate income, in 1713 the company was granted a monopoly (the [Asiento de Negros](https://en.wikipedia.org/wiki/Asiento_de_Negros "Asiento de Negros")) to supply African slaves to the islands in the "[South Seas](https://en.wikipedia.org/wiki/South_Seas "South Seas")" and [South America](https://en.wikipedia.org/wiki/South_America "South America").[\[4\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-:0-5) When the company was created, Britain was involved in the [War of the Spanish Succession](https://en.wikipedia.org/wiki/War_of_the_Spanish_Succession "War of the Spanish Succession") and Spain and Portugal controlled most of South America. There was thus no realistic prospect that trade would take place, and as it turned out, the Company never realised any significant profit from its monopoly. However, Company stock rose greatly in value as it expanded its operations dealing in government debt, and peaked in 1720 before suddenly collapsing to little above its original [flotation](https://en.wikipedia.org/wiki/Flotation_\(shares\) "Flotation (shares)") price. The notorious [economic bubble](https://en.wikipedia.org/wiki/Economic_bubble "Economic bubble") thus created, which ruined thousands of investors, became known as the South Sea Bubble. The [Bubble Act 1720](https://en.wikipedia.org/wiki/Bubble_Act_1720 "Bubble Act 1720") ([6 Geo. 1](https://en.wikipedia.org/wiki/6_Geo._1 "6 Geo. 1") c. 18), which forbade the creation of joint-stock companies without [royal charter](https://en.wikipedia.org/wiki/Royal_charter "Royal charter"), was promoted by the South Sea Company itself before its collapse. In Great Britain, many investors were ruined by the share-price collapse, and as a result, the national economy diminished substantially. The founders of the scheme engaged in [insider trading](https://en.wikipedia.org/wiki/Insider_trading "Insider trading"), by using their advance knowledge of the timings of national debt consolidations to make large profits from purchasing debt in advance. Huge bribes were given to politicians to support the [acts of Parliament](https://en.wikipedia.org/wiki/Acts_of_Parliament "Acts of Parliament") necessary for the scheme.[\[5\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-6) Company money was used to deal in its own shares, and selected individuals purchasing shares were given cash loans backed by those same shares to spend on purchasing more shares. The expectation of profits from trade with South America was talked up to encourage the public to purchase shares, but the bubble prices reached far beyond what the actual profits of the business (namely the slave trade) could justify.[\[6\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-:1-7) A parliamentary inquiry was held after the bursting of the bubble to discover its causes. A number of politicians were disgraced, and people found to have profited unlawfully from the company had personal assets confiscated proportionate to their gains (most had already been rich and remained so). Finally, the Company was restructured and continued to operate for more than a century after the Bubble. The headquarters were in [Threadneedle Street](https://en.wikipedia.org/wiki/Threadneedle_Street "Threadneedle Street"), at the centre of the [City of London](https://en.wikipedia.org/wiki/City_of_London "City of London"), the financial district of the capital. At the time of these events, the [Bank of England](https://en.wikipedia.org/wiki/Bank_of_England "Bank of England") was also a private company dealing in national debt, and the crash of its rival confirmed its position as banker to the British government.[\[7\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-8) ## Foundation \[[edit](https://en.wikipedia.org/w/index.php?title=South_Sea_Company&action=edit&section=1 "Edit section: Foundation")\] When in August 1710 [Robert Harley](https://en.wikipedia.org/wiki/Robert_Harley,_1st_Earl_of_Oxford_and_Earl_Mortimer "Robert Harley, 1st Earl of Oxford and Earl Mortimer") was appointed [Chancellor of the Exchequer](https://en.wikipedia.org/wiki/Chancellor_of_the_Exchequer "Chancellor of the Exchequer"), the government had already become reliant on the [Bank of England](https://en.wikipedia.org/wiki/Bank_of_England "Bank of England"), a privately owned company chartered 16 years previously, which had obtained a monopoly as the lender to the government. The government had become dissatisfied with the service it was receiving and Harley was actively seeking new ways to improve the national finances. A new parliament met in November 1710 resolved to attend to the national finances, which were suffering from the pressures of [two simultaneous wars](https://en.wikipedia.org/wiki/List_of_wars_involving_Great_Britain "List of wars involving Great Britain"): the [War of the Spanish Succession](https://en.wikipedia.org/wiki/War_of_the_Spanish_Succession "War of the Spanish Succession") with France, which ended in 1713, and the [Great Northern War](https://en.wikipedia.org/wiki/Great_Northern_War "Great Northern War"), which was not to end until 1721. Harley came prepared, with detailed accounts describing the situation of the national debt, which was customarily a piecemeal arrangement, with each government department borrowing independently as the need arose. He released the information steadily, continually adding new reports of debts incurred and scandalous expenditure, until in January 1711 the House of Commons agreed to appoint a committee to investigate the entire debt. The committee included Harley himself, the two [Auditors of the Imprests](https://en.wikipedia.org/wiki/Auditor_of_the_Imprests "Auditor of the Imprests") (whose task was to investigate government spending), [Edward Harley](https://en.wikipedia.org/wiki/Edward_Harley_\(1664%E2%80%931735\) "Edward Harley (1664–1735)") (the Chancellor's brother), Paul Foley (the Chancellor's brother-in-law), the [Secretary of the Treasury](https://en.wikipedia.org/wiki/Secretary_to_the_Treasury "Secretary to the Treasury"), [William Lowndes](https://en.wikipedia.org/wiki/William_Lowndes_\(British_politician\) "William Lowndes (British politician)") (who had had significant responsibility for reminting the entire debased British coinage in 1696) and [John Aislabie](https://en.wikipedia.org/wiki/John_Aislabie "John Aislabie") (who represented the [October Club](https://en.wikipedia.org/wiki/October_Club_\(Tory_Party\) "October Club (Tory Party)"), a group of about 200 MPs who had agreed to vote together).[\[8\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-9) Harley's first concern was to find £300,000 for the next quarter's payroll for the British army operating on the Continent under the [Duke of Marlborough](https://en.wikipedia.org/wiki/Duke_of_Marlborough "Duke of Marlborough"). This funding was provided by a private consortium of Edward Gibbon (grandfather of [the historian](https://en.wikipedia.org/wiki/Edward_Gibbon#Early_life:_1737%E2%80%931752 "Edward Gibbon")), [George Caswall](https://en.wikipedia.org/wiki/George_Caswall "George Caswall"), and [Hoare's Bank](https://en.wikipedia.org/wiki/Hoare%27s_Bank "Hoare's Bank"). The Bank of England had been operating a [lottery](https://en.wikipedia.org/wiki/Lottery "Lottery") on behalf of the government, but in 1710 this had produced less revenue than expected and another begun in 1711 was also performing poorly; Harley granted the authority to sell tickets to [John Blunt](https://en.wikipedia.org/wiki/Sir_John_Blunt,_1st_Baronet "Sir John Blunt, 1st Baronet"), a director of the [Hollow Sword Blade Company](https://en.wikipedia.org/wiki/Hollow_Sword_Blade_Company "Hollow Sword Blade Company"), which despite its name was an unofficial bank. Sales commenced on 3 March 1711 and tickets had completely sold out by 7 March, making it the first truly successful English state lottery.[\[9\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-10) The success was shortly followed by another larger lottery, "The Two Million Adventure" or "The Classis", with tickets costing £100, with a top prize of £20,000 and every ticket winning a prize of at least £10. Although prizes were advertised by their total value, they were in fact paid out by instalments in the form of a fixed [annuity](https://en.wikipedia.org/wiki/Annuity "Annuity") over a period of years, so that the government effectively held the prize money as borrowings until the whole value had been paid out to the winners. Marketing was handled by members of the Sword Blade syndicate, Gibbon selling £200,000 of tickets and earning £4,500 commission, and Blunt selling £993,000. Charles Blunt (a relative) was made Paymaster of the lottery with expenses of £5,000. ### Conception of the company \[[edit](https://en.wikipedia.org/w/index.php?title=South_Sea_Company&action=edit&section=2 "Edit section: Conception of the company")\] The national debt investigation concluded that a total of £9 million was owed by the government, with no specifically allocated income to pay it off. Robert Harley and John Blunt had jointly devised a scheme to consolidate this debt in much the same way that the Bank of England had consolidated previous debts, although the Bank still held the monopoly for operating as a bank. All holders of the debt (creditors) would be required to surrender it to a new company formed for the purpose, the South Sea Company, which in return would issue them shares in itself to the same nominal value. The government would make an annual payment to the Company of £568,279, equating to 6% interest plus expenses, which would then be redistributed to the shareholders as a dividend. The company was also granted a monopoly to trade with South America, a potentially lucrative enterprise, but one controlled by Spain – with which Britain was at war.[\[10\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-auto2-11) At that time, when the continent of America was being explored and colonised, Europeans applied the term "South Seas" only to South America and surrounding waters. The concession both held out the potential for future profits and encouraged a desire for an end to the war, necessary if any profits were to be made. The original suggestion for the South Sea scheme came from [William Paterson](https://en.wikipedia.org/wiki/William_Paterson_\(banker\) "William Paterson (banker)"), one of the founders of the Bank of England and of the financially disastrous [Darien Scheme](https://en.wikipedia.org/wiki/Darien_Scheme "Darien Scheme").[\[10\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-auto2-11) Harley was rewarded for delivering the scheme by being created Earl of Oxford on 23 May 1711 and was promoted to [Lord High Treasurer](https://en.wikipedia.org/wiki/Lord_High_Treasurer "Lord High Treasurer"). With a more secure position, he began secret peace negotiations with France. ### Initial speculation \[[edit](https://en.wikipedia.org/w/index.php?title=South_Sea_Company&action=edit&section=3 "Edit section: Initial speculation")\] The scheme to thus consolidate all government debt and to manage it better in the future held out the prospect of all existing creditors being repaid the full nominal value of their loans, which at the time before the scheme was publicised were valued at a discounted rate of £55 per £100 nominal value, as the lotteries were discredited. The government's ability to repay in full was widely doubted. Thus bonds representing the debt intended to be consolidated under the scheme were available for purchase on the open market at a price that allowed anyone with advance knowledge to buy and resell in the immediate future at a high profit, for as soon as the scheme became publicised the bonds would once again be worth at least their nominal value, as repayment was now more certain a prospect. This anticipation of gain made it possible for Harley to bring further financial supporters into the scheme, such as James Bateman and [Theodore Janssen](https://en.wikipedia.org/wiki/Theodore_Janssen "Theodore Janssen").[\[11\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-12) [Daniel Defoe](https://en.wikipedia.org/wiki/Daniel_Defoe "Daniel Defoe") commented:[\[12\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-13) > Unless the Spaniards are to be divested of common sense, infatuate, and given up, abandoning their own commerce, throwing away the only valuable stake they have left in the world, and in short, bent on their own ruin, we cannot suggest that they will ever, on any consideration, or for any equivalent, part with so valuable, indeed so inestimable a jewel, as the exclusive trade to their own plantations. — An Essay on the South-Sea Trade The originators of the scheme knew that there was no money to invest in a trading venture, and no realistic expectation that there would ever be a trade to exploit, but nevertheless, the potential for great wealth was widely publicised at every opportunity, so as to encourage interest in the scheme. The founders' objective was to create a company that would enable them to become wealthy and offer opportunities for further government contracts.[\[13\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-14) ### Flotation \[[edit](https://en.wikipedia.org/w/index.php?title=South_Sea_Company&action=edit&section=4 "Edit section: Flotation")\] [![](https://upload.wikimedia.org/wikipedia/commons/thumb/d/d4/Bubble.folly.jpg/250px-Bubble.folly.jpg)](https://en.wikipedia.org/wiki/File:Bubble.folly.jpg) A bubble-era stock promoter, caricatured as a "[night wind hawker](https://en.wikipedia.org/wiki/Pump_and_dump "Pump and dump")" (The Great Picture of Folly, 1720) The [royal charter](https://en.wikipedia.org/wiki/Royal_charter "Royal charter") for the company, based on that of the Bank of England, was drawn up by Blunt who was paid £3,846 for his services in setting up the company. Directors would be elected every three years and shareholders would meet twice a year. The company employed a cashier, secretary and accountant. The governor was intended as an honorary position, and was later customarily held by the monarch. The charter allowed the full court of directors to nominate a smaller committee to act on any matter on its behalf. Directors of the Bank of England and of the [East India Company](https://en.wikipedia.org/wiki/East_India_Company "East India Company") were barred from being directors of the South Sea Company. Any ship of more than 500 tons owned by the company was to have a Church of England clergyman on board. The surrender of government debt for company stock was to occur in five lots. The first two of these, totalling £2.75 million from about 200 large investors, had already been arranged before the company's charter was issued on 10 September 1711. The government surrendered £0.75 million of its debt held by different departments (at that time individual office holders were at liberty to invest government funds under their control to their own advantage before it was required for government expenditure). Harley surrendered £8,000 of debt and was appointed Governor of the new company. Blunt, Caswall and Sawbridge together surrendered £65,000, Janssen £25,000 of his own plus £250,000 from a foreign consortium, Decker £49,000, Sir Ambrose Crawley £36,791. The company had a Sub-Governor, Bateman; a Deputy Governor, Ongley; and 30 ordinary directors. Nine of the directors were politicians, five were members of the Sword Blade consortium, and seven more were financial magnates who had been attracted to the scheme.[\[14\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-15) The company created a coat of arms with the motto A Gadibus usque ad Auroram ("From Cádiz to Dawn", from [Juvenal](https://en.wikipedia.org/wiki/Juvenal "Juvenal"), [Satires](https://en.wikipedia.org/wiki/Satires_\(Juvenal\) "Satires (Juvenal)"), 10) and rented a large house in the City of London as its headquarters. Seven sub-committees were created to handle its everyday business, the most important being the "committee for the affairs of the company". The Sword Blade company was retained as the company's banker and on the strength of its new government connections issued notes in its own right, notwithstanding the Bank of England's monopoly. The task of the Company Secretary was to oversee trading activities; the Accountant, Grigsby, was responsible for registering and issuing stock; and the Cashier, Robert Knight, acted as Blunt's personal assistant at a salary of £200 per annum.[\[15\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-16) ### The slave trade \[[edit](https://en.wikipedia.org/w/index.php?title=South_Sea_Company&action=edit&section=5 "Edit section: The slave trade")\] [![](https://upload.wikimedia.org/wikipedia/commons/thumb/9/98/Slavers-4496.jpg/250px-Slavers-4496.jpg)](https://en.wikipedia.org/wiki/File:Slavers-4496.jpg) African slaves taken aboard a slave ship The [Treaty of Utrecht](https://en.wikipedia.org/wiki/Treaty_of_Utrecht "Treaty of Utrecht") of 1713 granted Britain an [Asiento de Negros](https://en.wikipedia.org/wiki/Asiento_de_Negros "Asiento de Negros") lasting 30 years to supply the Spanish colonies with 4,800 enslaved Africans ("slaves") per year. Britain was permitted to open offices in [Buenos Aires](https://en.wikipedia.org/wiki/Buenos_Aires "Buenos Aires"), [Caracas](https://en.wikipedia.org/wiki/Caracas "Caracas"), [Cartagena](https://en.wikipedia.org/wiki/Cartagena,_Colombia "Cartagena, Colombia"), [Havana](https://en.wikipedia.org/wiki/Havana "Havana"), [Panama](https://en.wikipedia.org/wiki/Panama "Panama"), [Portobello](https://en.wikipedia.org/wiki/Portobelo,_Col%C3%B3n "Portobelo, Colón") and [Veracruz](https://en.wikipedia.org/wiki/Veracruz_\(city\) "Veracruz (city)") to arrange the [Atlantic slave trade](https://en.wikipedia.org/wiki/Atlantic_slave_trade "Atlantic slave trade"). One ship of no more than 500 tons could be sent to one of these places each year (the Navío de Permiso) with general trade goods. One quarter of the profits were to be reserved for the King of Spain. There was provision for two extra sailings at the start of the contract. The Asiento was granted in the name of [Queen Anne](https://en.wikipedia.org/wiki/Anne,_Queen_of_Great_Britain "Anne, Queen of Great Britain") and then contracted to the company.[\[16\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-17) By July the company had arranged contracts with the [Royal African Company](https://en.wikipedia.org/wiki/Royal_African_Company "Royal African Company") to supply the African slaves to Jamaica. Ten pounds was paid for a slave aged over 16, £8 for one under 16 but over 10. Two-thirds were to be male, and 90 per cent adult. The company transported 1,230 slaves from Jamaica to America in the first year, plus any that might have been added (against standing instructions) by the ship's captains on their own behalf. On arrival of the first cargoes, the local authorities refused to accept the Asiento, which had still not been officially confirmed there by the Spanish authorities. The slaves were eventually sold at a loss in the West Indies.[\[17\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-18) In 1714 the government announced that a quarter of profits would be reserved for [Queen Anne](https://en.wikipedia.org/wiki/Anne,_Queen_of_Great_Britain "Anne, Queen of Great Britain") and a further 7.5 per cent for a financial adviser, Manasseh Gilligan. Some company board members refused to accept the contract on these terms, and the government was obliged to reverse its decision.[\[18\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-19) Despite these setbacks, the company continued, having raised £200,000 to finance the operations. In 1714 2,680 slaves were carried, and for 1716–1717, 13,000 more, but the trade continued to be unprofitable. An import duty of 33 [pieces of eight](https://en.wikipedia.org/wiki/Pieces_of_eight "Pieces of eight") was charged on each slave (although for this purpose some slaves might be counted only as a fraction of a slave, depending on quality). One of the extra trade ships was sent to Cartagena in 1714 carrying woollen goods, despite warnings that there was no market for them there, and they remained unsold for two years.[\[19\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-20) It has been estimated that the company transported a little over 34,000 slaves with mortality comparable to its competitors, showing that slave trading was a significant part of the company's business and that it was carried out to the standards of the day.[\[4\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-:0-5) Its trading activities offered a financial motive for investment in the company.[\[4\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-:0-5) ### Changes of management \[[edit](https://en.wikipedia.org/w/index.php?title=South_Sea_Company&action=edit&section=6 "Edit section: Changes of management")\] The company was dependent on the goodwill of the government; when the government changed, so too did the company board. In 1714 one of the directors who had been sponsored by Harley, Arthur Moore, had attempted to send 60 tons of private goods on board the company ship. He was dismissed as a director, but the result was the beginning of Harley's fall from favour with the company. On 27 July 1714, Harley was replaced as Lord High Treasurer as a result of a disagreement that had broken out within the Tory faction in Parliament. Queen Anne died on 1 August 1714 and at the election of directors in 1715 the Prince of Wales (the future King [George II](https://en.wikipedia.org/wiki/George_II_of_Great_Britain "George II of Great Britain")) was elected as governor of the company. The new King [George I](https://en.wikipedia.org/wiki/George_I_of_Great_Britain "George I of Great Britain") and the Prince of Wales both had large holdings in the company, as did some prominent Whig politicians, including [James Craggs the Elder](https://en.wikipedia.org/wiki/James_Craggs_the_Elder "James Craggs the Elder"), the [Earl of Halifax](https://en.wikipedia.org/wiki/Charles_Montagu,_1st_Earl_of_Halifax "Charles Montagu, 1st Earl of Halifax") and Sir [Joseph Jekyll](https://en.wikipedia.org/wiki/Joseph_Jekyll "Joseph Jekyll"). Craggs, as Postmaster General, was responsible for intercepting mail on behalf of the government to obtain political and financial information. All Tory politicians were removed from the board and replaced with businessmen. The Whigs Horatio Townshend, brother in law of [Robert Walpole](https://en.wikipedia.org/wiki/Robert_Walpole "Robert Walpole") and the [Duke of Argyll](https://en.wikipedia.org/wiki/John_Campbell,_2nd_Duke_of_Argyll "John Campbell, 2nd Duke of Argyll") were elected directors. The change of government led to a revival of the company's share value, which had fallen below its issue price. The previous government had failed to make the interest payments to the company for the preceding two years, owing more than £1 million. The new administration insisted that the debt be written off, but allowed the company to issue new shares to stock holders to the value of the missed payments. At around £10 million, this now represented half the share capital issued in the entire country. In 1714 the company had 2,000 to 3,000 shareholders, more than either of its rivals.[\[20\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-21) By the time of the next directors' elections in 1718 a schism within the Whigs between Walpole's faction supporting the Prince of Wales and [James Stanhope](https://en.wikipedia.org/wiki/James_Stanhope,_1st_Earl_Stanhope "James Stanhope, 1st Earl Stanhope")'s supporting the King. Argyll and Townshend were dismissed as directors, as were the surviving Tories Sir Richard Hoare and George Pitt, and King George I became governor. Four MPs remained directors, as did six people holding government financial offices. The Sword Blade Company remained bankers to the South Sea and had flourished despite the company's dubious legal position. Blunt and Sawbridge remained South Sea directors, and they had been joined by Gibbon and Child. Caswall had retired as a South Sea director to concentrate on the Sword Blade business. In November 1718 Sub-Governor Bateman and Deputy Governor Shepheard both died. Leaving aside the honorary position of Governor, this left the company suddenly without its two most senior and experienced directors. They were replaced by [Sir John Fellowes](https://en.wikipedia.org/wiki/Sir_John_Fellowes "Sir John Fellowes") as Sub-Governor and Charles Joye as Deputy.[\[21\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-22) ### War \[[edit](https://en.wikipedia.org/w/index.php?title=South_Sea_Company&action=edit&section=7 "Edit section: War")\] In 1718 war broke out with Spain once again, in the [War of the Quadruple Alliance](https://en.wikipedia.org/wiki/War_of_the_Quadruple_Alliance "War of the Quadruple Alliance"). The company's assets in South America were seized, at a cost claimed by the company to be £300,000. Any prospect of profit from trade, for which the company had purchased ships and had been planning its next ventures, disappeared.[\[22\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-23) ## Refinancing government debt \[[edit](https://en.wikipedia.org/w/index.php?title=South_Sea_Company&action=edit&section=8 "Edit section: Refinancing government debt")\] Events in France now came to influence the future of the company. A Scottish economist and financier, [John Law](https://en.wikipedia.org/wiki/John_Law_\(economist\) "John Law (economist)"), exiled after killing a man in a duel, had travelled around Europe before settling in France. There he founded a bank, which in December 1718 became the Banque Royale, national bank of France, while Law himself was granted sweeping powers to control the economy of France, which operated largely by royal decree. Law's remarkable success was known in financial circles throughout Europe, and came to inspire Blunt and his associates to make greater efforts to grow their own concerns.[\[23\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-24) In February 1719 Craggs explained to the House of Commons a new scheme for improving the national debt by converting the annuities issued after the 1710 lottery into South Sea stock. By an act of Parliament, the [National Debt Act 1719](https://en.wikipedia.org/w/index.php?title=National_Debt_Act_1719&action=edit&redlink=1 "National Debt Act 1719 (page does not exist)") ([6 Geo. 1](https://en.wikipedia.org/wiki/6_Geo._1 "6 Geo. 1"). c. 4), the company was granted the right to issue £1,150 of new stock for every £100 per annum of annuity which was surrendered. The government would pay 5 per cent per annum on the stock created, which would halve their annual bill. The conversion was voluntary, amounting to £2.5 million new stock if all converted. The company was to make an additional new loan to the government pro rata up to £750,000, again at 5 per cent.[\[24\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-25) In March there was an abortive attempt to restore the Old Pretender, [James Edward Stuart](https://en.wikipedia.org/wiki/James_Edward_Stuart "James Edward Stuart"), to the throne of Britain, with a small landing of troops in Scotland. They were defeated at the [Battle of Glen Shiel](https://en.wikipedia.org/wiki/Battle_of_Glen_Shiel "Battle of Glen Shiel") on 10 June. The South Sea company presented the offer to the public in July 1719. The Sword Blade company spread a rumour that the Pretender had been captured, and the general euphoria induced the South Sea share price to rise from £100, where it had been in the spring, to £114. Annuitants were still paid out at the same money value of shares, the company keeping the profit from the rise in value before issuing. About two-thirds of the annuities were exchanged. ### Trading more debt for equity \[[edit](https://en.wikipedia.org/w/index.php?title=South_Sea_Company&action=edit&section=9 "Edit section: Trading more debt for equity")\] [![](https://upload.wikimedia.org/wikipedia/commons/thumb/1/17/William_Hogarth_-_The_South_Sea_Scheme.png/500px-William_Hogarth_-_The_South_Sea_Scheme.png)](https://en.wikipedia.org/wiki/File:William_Hogarth_-_The_South_Sea_Scheme.png) [William Hogarth](https://en.wikipedia.org/wiki/William_Hogarth "William Hogarth"), [Emblematical Print on the South Sea Scheme](https://en.wikipedia.org/wiki/Emblematical_Print_on_the_South_Sea_Scheme "Emblematical Print on the South Sea Scheme") (1721). In the bottom left corner are Protestant, Catholic, and Jewish figures gambling, while in the middle there is a huge machine, like a merry-go-round, which people are boarding. At the top is a goat, written below which is "Who'l Ride". The people are scattered around the picture with a sense of disorder, while the progress of the well-dressed people towards the ride in the middle represents the foolishness of the crowd in buying stock in the South Sea Company, which spent more time issuing stock than anything else. Honor at left is dismembered; Honesty in center is [broken on the wheel](https://en.wikipedia.org/wiki/Broken_on_the_wheel "Broken on the wheel") and at lower right trade lies dead. The 1719 scheme was a distinct success for the government and they sought to repeat it. Negotiations took place between Aislabie and Craggs for the government and Blunt, Cashier Knight and his assistant and Caswell. Janssen, the Sub Governor and Deputy Governor were also consulted but negotiations remained secret from most of the company. News from France was of fortunes being made investing in Law's bank, whose shares had risen sharply. Money was moving around Europe, and other flotations threatened to soak up capital (two insurance schemes in December 1719 each sought to raise £3 million).[\[25\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-26) Plans were made for a new scheme to take over most of the unconsolidated national debt of Britain (£30,981,712) in exchange for company shares. Annuities were valued as a lump sum necessary to produce the annual income over the original term at an assumed interest of 5 per cent, which favoured those with shorter terms still to run. The government agreed to pay the same amount to the company for all the fixed-term repayable debt as it had been paying before, but after seven years the 5 per cent interest rate would fall to 4 per cent on the new annuity debt and also that assumed previously. After the first year, the company was to give the government £3 million in four quarterly instalments. New stock would be created at a face value equal to the debt, but the share price was still rising and sales of the remaining stock, i.e. the excess of the total market value of the stock over the amount of the debt, would be used to raise the government fee plus a profit for the company. The more the price rose in advance of conversion, the more the company would make. Before the scheme, payments were costing the government £1.5 million per year.[\[26\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-auto-27) In summary, the total government debt in 1719 was £50 million: - £18.3m was held by three large corporations: - £3.4m by the [Bank of England](https://en.wikipedia.org/wiki/Bank_of_England "Bank of England") - £3.2m by the [British East India Company](https://en.wikipedia.org/wiki/British_East_India_Company "British East India Company") - £11.7m by the South Sea Company - Privately held redeemable debt amounted to £16.5m - £15m consisted of irredeemable annuities, long-fixed-term annuities of 72–87 years, and short annuities of 22 years remaining to expiry. The purpose of this conversion was similar to the old one, debt holders and annuitants might receive less return in total, but an illiquid investment was transformed into shares that could be readily traded. Shares backed by national debt were considered a safe investment and a convenient way to hold and move money, far easier and safer than metal coins. The only alternative safe asset, land, was much harder to sell and transfer of its ownership was legally much more complex. The government received a cash payment and lower interest on the debt and gained control over when the debt had to be repaid, which was not before seven years but then at its discretion. This avoided the risk that debt might become repayable when the government needed to borrow more, and could be forced into paying higher interest rates. The payment to the government was to be used to buy any debt not subscribed to the scheme, which although it helped the government, also helped the company by removing possibly competing securities from the market, including large holdings by the Bank of England.[\[26\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-auto-27) Company stock was now trading at £123, so the issue amounted to an injection of £5 million of new money into a booming economy just as interest rates were falling. [Gross Domestic Product](https://en.wikipedia.org/wiki/Gross_Domestic_Product "Gross Domestic Product") (GDP) for Britain at this point was estimated as £64.4 million.[\[27\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-28) #### Public announcement \[[edit](https://en.wikipedia.org/w/index.php?title=South_Sea_Company&action=edit&section=10 "Edit section: Public announcement")\] [![](https://upload.wikimedia.org/wikipedia/commons/thumb/4/49/South_Sea_Annuities_share_certificate%2C_issued_November_13%2C_1784._On_display_at_the_British_Museum_in_London.jpg/250px-South_Sea_Annuities_share_certificate%2C_issued_November_13%2C_1784._On_display_at_the_British_Museum_in_London.jpg)](https://en.wikipedia.org/wiki/File:South_Sea_Annuities_share_certificate,_issued_November_13,_1784._On_display_at_the_British_Museum_in_London.jpg) South Sea Annuities share certificate, issued 13 November 1784. On display at the British Museum in London On 21 January the plan was presented to the board of the South Sea Company, and on 22 January [Chancellor of the Exchequer](https://en.wikipedia.org/wiki/Chancellor_of_the_Exchequer "Chancellor of the Exchequer") [John Aislabie](https://en.wikipedia.org/wiki/John_Aislabie "John Aislabie") presented it to Parliament. The House was stunned into silence but on recovering, proposed that the Bank of England should be invited to make a better offer. The South Sea increased its cash payment to £3.5 million, while the Bank proposed to undertake the conversion with a payment of £5.5 million and a fixed conversion price of £170 per £100 face-value Bank stock. On 1 February, the company negotiators led by Blunt raised their offer to £4 million plus a proportion of £3.5 million depending on how much of the debt was converted. They also agreed that the interest rate would decrease after four years instead of seven, and agreed to sell on behalf of the government £1 million of Exchequer bills (formerly handled by the Bank). The House accepted the South Sea offer and Bank stock fell sharply.[\[28\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-29) Perhaps the first sign of difficulty came when the South Sea Company announced that its Christmas 1719 dividend would be deferred for 12 months. The company embarked on a show of gratitude to its friends. Select individuals were sold a parcel of company stock at the current price. The transactions were recorded by Knight in the names of intermediaries, but no payments were received and no stock issued – the company had none to issue until the conversion of debt began. The individual received an option to sell his stock back to the company at any date at whatever market price might then apply. Shares went to the Craggs: [the Elder](https://en.wikipedia.org/wiki/James_Craggs_the_Elder "James Craggs the Elder") and [the Younger](https://en.wikipedia.org/wiki/James_Craggs_the_Younger "James Craggs the Younger"); [Lord Gower](https://en.wikipedia.org/wiki/John_Leveson-Gower,_1st_Earl_Gower "John Leveson-Gower, 1st Earl Gower"); [Lord Lansdowne](https://en.wikipedia.org/wiki/George_Granville,_1st_Baron_Lansdowne "George Granville, 1st Baron Lansdowne"); and four other MPs. [Lord Sunderland](https://en.wikipedia.org/wiki/Charles_Spencer,_3rd_Earl_of_Sunderland "Charles Spencer, 3rd Earl of Sunderland") would gain £500 for every pound that stock rose; George I's mistress, their children and Countess Platen £120 per pound rise, Aislabie £200 per pound, [Lord Stanhope](https://en.wikipedia.org/wiki/James_Stanhope,_1st_Earl_Stanhope "James Stanhope, 1st Earl Stanhope") £600 per pound. Others invested money, including the [Richard Hampden](https://en.wikipedia.org/wiki/Richard_Hampden_\(1674%E2%80%931728\) "Richard Hampden (1674–1728)") the Treasurer to the Navy, who invested £25,000 of government money on his behalf.[\[29\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-30) The proposal was accepted in a slightly altered form in April 1720. Crucial in this conversion was the proportion of holders of irredeemable annuities who could be tempted to convert their securities at a high price for the new shares. (Holders of redeemable debt had no other choice but to subscribe.) The South Sea Company could set the conversion price but could not diverge much from the market price of its shares. The company ultimately acquired 85 per cent of the redeemables and 80 per cent of the irredeemables. ### Inflating the share price \[[edit](https://en.wikipedia.org/w/index.php?title=South_Sea_Company&action=edit&section=11 "Edit section: Inflating the share price")\] [![](https://upload.wikimedia.org/wikipedia/commons/e/ef/South-sea-bubble-chart.png)](https://en.wikipedia.org/wiki/File:South-sea-bubble-chart.png) Chart of company stock prices. The company then set to talking up its stock with "the most extravagant rumours" of the value of its potential trade in the New World; this was followed by a wave of "speculating frenzy". The share price had risen from the time the scheme was proposed, from £128 in January 1720, to £175 in February, £330 in March and following the scheme's acceptance £550 at the end of May.[\[30\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-31) What may have supported the company's high multiples (its [P/E ratio](https://en.wikipedia.org/wiki/P/E_ratio "P/E ratio")) was a fund of credit (known to the market) of £70 million available for commercial expansion which had been made available through substantial support, apparently, by Parliament and the King.[\[31\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-32) Shares in the company were "sold" to politicians at the market price; rather than paying for the shares, these recipients simply held the shares, with the option of selling them back to the company at any time, receiving the increase in market price. This method, as well as winning over the heads of government, the King's mistress, et al., had the advantage of binding their interests to the interests of the company, to secure profits, the stock needed to rise. By publicising the names of their elite stockholders, the company managed to clothe itself in an aura of legitimacy, which attracted and kept other buyers.[\[32\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-33) ### Bubble Act \[[edit](https://en.wikipedia.org/w/index.php?title=South_Sea_Company&action=edit&section=12 "Edit section: Bubble Act")\] Main article: [Bubble Act](https://en.wikipedia.org/wiki/Bubble_Act "Bubble Act") The South Sea Company was by no means the only company seeking to raise money from investors in 1720. A large number of other joint-stock companies, making extravagant (sometimes fraudulent) claims about foreign or other ventures or bizarre schemes, had been created. Others represented potentially sound, although novel, schemes, such as for founding insurance companies. These were nicknamed "Bubbles". Some of the companies had no legal basis, while others (such as the [Hollow Sword Blade Company](https://en.wikipedia.org/wiki/Hollow_Sword_Blade_Company "Hollow Sword Blade Company"), which acted as the South Sea Company's banker), used existing chartered companies for purposes different from those named at their creation. The York Buildings Company was set up to provide water to London, but was purchased by Case Billingsley who used it to purchase confiscated Jacobite estates in Scotland, which then formed the assets of an insurance company.[\[33\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-auto1-34) On 22 February 1720, John Hungerford raised the question of bubble companies in the House of Commons, and persuaded the House to set up a committee, which he chaired, to investigate. He identified a number of companies which between them sought to raise £40 million in capital. The committee investigated the companies, establishing a principle that companies should not be operating outside the objects specified in their charters. A potential embarrassment for the South Sea was avoided when the question of the Hollow Sword Blade Company arose. Difficulty was avoided by packing the committee with MPs who were supporters of the South Sea, and voting down by 75 to 25 the proposal to investigate the Hollow Sword. (At this time, committees of the House were either 'Open' or 'secret'. A secret committee was one with a fixed set of members who could vote on its proceedings. By contrast, any MP could join in with an 'open' committee and vote on its proceedings.) Stanhope, who was a member of the committee, received £50,000 of the 'resaleable' South Sea stock from Sawbridge, a director of the Hollow Sword, at about this time. Hungerford had previously been expelled from the Commons for accepting a bribe.[\[33\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-auto1-34) Amongst the bubble companies investigated were two supported by Lords Onslow and Chetwynd respectively, for insuring shipping. These were severely criticised and the questionable dealings of the Attorney-General and Solicitor-General in trying to obtain charters for the companies led to both being replaced. The schemes had the support of [Walpole](https://en.wikipedia.org/wiki/Walpole "Walpole") and [Craggs](https://en.wikipedia.org/wiki/James_Craggs_the_Younger "James Craggs the Younger"), so that the larger part of the [Bubble Act 1720](https://en.wikipedia.org/wiki/Bubble_Act_1720 "Bubble Act 1720") ([6 Geo. 1](https://en.wikipedia.org/wiki/6_Geo._1 "6 Geo. 1"). c. 18) (which resulted in June 1720 from the committee's investigations) was devoted to creating charters for the [Royal Exchange Assurance Corporation](https://en.wikipedia.org/wiki/Royal_Exchange_Assurance_Corporation "Royal Exchange Assurance Corporation") or London Assurance Corporation. The companies were required to pay £300,000 for the privilege. The act required that a joint stock company could be incorporated only by act of Parliament or [royal charter](https://en.wikipedia.org/wiki/Royal_charter "Royal charter"). The prohibition on unauthorised joint stock ventures was not repealed until 1825.[\[34\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-35) The passing of the act gave a boost to the South Sea Company, its shares leaping to £890 in early June. This peak encouraged people to sell; to counterbalance this the company's directors ordered their agents to buy, which succeeded in propping the price up at around £750. ### Top reached \[[edit](https://en.wikipedia.org/w/index.php?title=South_Sea_Company&action=edit&section=13 "Edit section: Top reached")\] [![](https://upload.wikimedia.org/wikipedia/commons/thumb/2/2d/South_Sea_Bubble_Cards-Tree.png/250px-South_Sea_Bubble_Cards-Tree.png)](https://en.wikipedia.org/wiki/File:South_Sea_Bubble_Cards-Tree.png) Tree caricature from Bubble Cards. The price of the stock went up over the course of a year from about £100 to almost £1,000 per share. Its success caused a national frenzy—[herd behaviour](https://en.wikipedia.org/wiki/Herd_behaviour "Herd behaviour")[\[6\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-:1-7)—as all types of people, from peasants to lords, developed a feverish interest in investing, in South Seas primarily but in stocks generally. One famous apocryphal story is of a company that went public in 1720 as "a company for carrying out an undertaking of great advantage, but nobody to know what it is".[\[35\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-36) The price finally reached £1,000 in early August 1720, and the level of selling was such that the price started to fall, dropping back to £100 per share before the year was out.[\[36\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-37) This triggered [bankruptcies](https://en.wikipedia.org/wiki/Bankruptcies "Bankruptcies") amongst those who had bought on credit, and increased sales, including [short selling](https://en.wikipedia.org/wiki/Short_selling "Short selling")\[[citation needed](https://en.wikipedia.org/wiki/Wikipedia:Citation_needed "Wikipedia:Citation needed")\] (i.e., selling borrowed shares in the hope of buying them back at a profit if the price fell). In August 1720, the first of the instalment payments of the first and second money subscriptions on new issues of South Sea stock were due. Earlier in the year John Blunt had come up with an idea to prop up the share price, the company would lend people money to buy its shares. As a result, many shareholders could not pay for their shares except by selling them.\[[citation needed](https://en.wikipedia.org/wiki/Wikipedia:Citation_needed "Wikipedia:Citation needed")\] A scramble for liquidity appeared internationally as "bubbles" were also ending in Amsterdam and Paris. The collapse coincided with the fall of the [Mississippi Company](https://en.wikipedia.org/wiki/Mississippi_Company "Mississippi Company") of [John Law](https://en.wikipedia.org/wiki/John_Law_\(economist\) "John Law (economist)") in France and the price of South Sea shares began to decline.\[[citation needed](https://en.wikipedia.org/wiki/Wikipedia:Citation_needed "Wikipedia:Citation needed")\] ### Recriminations \[[edit](https://en.wikipedia.org/w/index.php?title=South_Sea_Company&action=edit&section=14 "Edit section: Recriminations")\] By the end of September the stock had fallen to £150. Company failures now extended to [banks](https://en.wikipedia.org/wiki/Bank "Bank") and [goldsmiths](https://en.wikipedia.org/wiki/Goldsmith "Goldsmith"), as they could not collect loans made on the stock, and thousands of individuals were ruined, including many members of the upper class. With investors outraged, [Parliament](https://en.wikipedia.org/wiki/Parliament_of_the_United_Kingdom "Parliament of the United Kingdom") was recalled in December and an investigation began. Reporting in 1721, it revealed widespread [fraud](https://en.wikipedia.org/wiki/Fraud "Fraud") amongst the company directors and corruption in the Cabinet. Among those implicated were [John Aislabie](https://en.wikipedia.org/wiki/John_Aislabie "John Aislabie") (the Chancellor of the Exchequer), James Craggs the Elder (the [Postmaster General](https://en.wikipedia.org/wiki/Postmaster_General_of_the_United_Kingdom "Postmaster General of the United Kingdom")), [James Craggs the Younger](https://en.wikipedia.org/wiki/James_Craggs_the_Younger "James Craggs the Younger") (the [Southern Secretary](https://en.wikipedia.org/wiki/Southern_Secretary "Southern Secretary")), and even [Lord Stanhope](https://en.wikipedia.org/wiki/James_Stanhope,_1st_Earl_Stanhope "James Stanhope, 1st Earl Stanhope") and [Lord Sunderland](https://en.wikipedia.org/wiki/Charles_Spencer,_3rd_Earl_of_Sunderland "Charles Spencer, 3rd Earl of Sunderland") (the heads of the Ministry). Craggs the Elder and Craggs the Younger died in disgrace; the remainder were [impeached](https://en.wikipedia.org/wiki/Impeachment_in_the_United_Kingdom "Impeachment in the United Kingdom") for their corruption. The Commons found Aislabie guilty of the "most notorious, dangerous and infamous corruption" and he was imprisoned.\[[citation needed](https://en.wikipedia.org/wiki/Wikipedia:Citation_needed "Wikipedia:Citation needed")\] The corruption around the South Sea bubble was the impetus for the writing and publication of [Cato's Letters](https://en.wikipedia.org/wiki/Cato%27s_Letters "Cato's Letters") which became an important work first for the [Radical Whigs](https://en.wikipedia.org/wiki/Radical_Whigs "Radical Whigs") and then into the [libertarian](https://en.wikipedia.org/wiki/Libertarian "Libertarian") ideology of the [American Revolution](https://en.wikipedia.org/wiki/American_Revolution "American Revolution").[\[37\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-38) The new [First Lord of the Treasury](https://en.wikipedia.org/wiki/First_Lord_of_the_Treasury "First Lord of the Treasury"), [Robert Walpole](https://en.wikipedia.org/wiki/Robert_Walpole "Robert Walpole"), restored public confidence in the financial system. Public opinion, as shaped by the many prominent men who lost money, demanded revenge. Walpole supervised the process, which removed all 33 of the company directors and stripped them of, on average, 82 per cent of their wealth. The money went to the victims and the stock of the South Sea Company was divided between the Bank of England and the East India Company. Walpole made sure that King George and his mistresses were protected, and by a margin of three votes he managed to save several key government officials from impeachment. In the process, Walpole won plaudits as the saviour of the financial system while establishing himself as the dominant figure in British politics; historians credit him for rescuing the Whig government and the Hanoverian dynasty from disgrace.[\[38\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-39)[\[39\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-40)[\[40\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-41) ### Quotations prompted by the collapse \[[edit](https://en.wikipedia.org/w/index.php?title=South_Sea_Company&action=edit&section=15 "Edit section: Quotations prompted by the collapse")\] Joseph Spence wrote that [Lord Radnor](https://en.wikipedia.org/wiki/Earl_of_Radnor "Earl of Radnor") reported to him "When Sir [Isaac Newton](https://en.wikipedia.org/wiki/Isaac_Newton "Isaac Newton") was asked about the continuance of the rising of South Sea stock ... He answered 'that he could not calculate the madness of people'".[\[41\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-42) He is also quoted, "I can calculate the movement of the stars, but not the madness of men".[\[42\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-43) Newton owned nearly £22,000 in South Sea stock in 1722, but it is not known how much he lost, if anything.[\[43\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-44) There are numerous sources stating he lost up to £20,000[\[44\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-45) (equivalent to £4.21 million in 2025).[\[45\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-inflation-UK-46) ## A trading company \[[edit](https://en.wikipedia.org/w/index.php?title=South_Sea_Company&action=edit&section=16 "Edit section: A trading company")\] The South Sea Company was created in 1711 to reduce the size of public debts, but was granted the commercial privilege of exclusive rights of trade to the Spanish Indies, based on the treaty of commerce signed by Britain and the [Archduke Charles](https://en.wikipedia.org/wiki/Charles_VI,_Holy_Roman_Emperor "Charles VI, Holy Roman Emperor"), candidate to the Spanish throne during the [War of the Spanish Succession](https://en.wikipedia.org/wiki/War_of_the_Spanish_Succession "War of the Spanish Succession"). After [Philip V](https://en.wikipedia.org/wiki/Philip_V_of_Spain "Philip V of Spain") became the King of Spain, Britain obtained at the 1713 [Treaty of Utrecht](https://en.wikipedia.org/wiki/Treaty_of_Utrecht "Treaty of Utrecht") the rights to the slave trade to the Spanish Indies (or [Asiento de Negros](https://en.wikipedia.org/wiki/Asiento_de_Negros "Asiento de Negros")) for 30 years. Those rights were previously held by the Compagnie de Guinée et de l'Assiente du Royaume de la France. The South Sea Company board opposed taking on the slave trade, which had shown little profitability when chartered companies had engaged in it. To increase the profitability, the Asiento contract included the right to send one yearly 500-ton ship to the fairs at Portobello and [Veracruz](https://en.wikipedia.org/wiki/Veracruz,_Veracruz "Veracruz, Veracruz") loaded with duty-free merchandises, called the Navío de Permiso. The Crown of England and the King of Spain were each entitled to 25% of the profits, according to the terms of the contract, that was a copy of the French Asiento contract, but [Queen Anne](https://en.wikipedia.org/wiki/Anne,_Queen_of_Great_Britain "Anne, Queen of Great Britain") soon renounced her share. The King of Spain did not receive any payments due to him, and this was one of the sources of contention between the Spanish Crown and the South Sea Company. As was the case for previous holders of the Asiento, the Portuguese and the French, the profit was not in the slave trade but in the illegal contraband goods smuggled in the slave ships and in the annual ship. Those goods were sold at the Spanish colonies at a handsome price, for they were in high demand; and constituted unfair competition with taxed goods, proving a large drain on the Spanish Crown's trade income. The relationship between the South Sea Company and the Government of Spain was always bad, and worsened with time. The company complained of searches and seizures of goods, lack of profitability, and confiscation of properties during the wars between Britain and Spain of 1718–1723 and 1727–1729, during which the operations of the company were suspended. The Government of Spain complained of the illegal trade, failure of the company to present its accounts as stipulated by the contract, and non-payment of the King's share of the profits. These claims were a major cause of deteriorating relations between the two countries in 1738; and although the Prime Minister [Walpole](https://en.wikipedia.org/wiki/Walpole "Walpole") opposed war, there was strong support for it from the King, the House of Commons, and a faction in his own Cabinet. Walpole was able to negotiate a treaty with the King of Spain at the [Convention of Pardo](https://en.wikipedia.org/wiki/Convention_of_Pardo "Convention of Pardo") in January 1739 that stipulated that Spain would pay British merchants £95,000 in compensation for captures and seized goods, while the South Sea Company would pay the Spanish Crown £68,000 in due proceeds from the Asiento. The South Sea Company refused to pay those proceeds and the King of Spain retained payment of the compensation until payment from the South Sea Company could be secured. The break-up of relations between the South Sea Company and the Spanish Government was a prelude to the [Guerra del Asiento](https://en.wikipedia.org/wiki/Guerra_del_Asiento "Guerra del Asiento"), as the first [Royal Navy](https://en.wikipedia.org/wiki/Royal_Navy "Royal Navy") fleets departed in July 1739 for the Caribbean, prior to the declaration of war, which lasted from October 1739 until 1748. This war is known as the [War of Jenkins' Ear](https://en.wikipedia.org/wiki/War_of_Jenkins%27_Ear "War of Jenkins' Ear").[\[46\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-47)[\[47\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-48)[\[48\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-49) ### Slave trade under the Asiento \[[edit](https://en.wikipedia.org/w/index.php?title=South_Sea_Company&action=edit&section=17 "Edit section: Slave trade under the Asiento")\] Main article: [Asiento de Negros](https://en.wikipedia.org/wiki/Asiento_de_Negros "Asiento de Negros") [![](https://upload.wikimedia.org/wikipedia/commons/thumb/d/d7/1713_Asiento_contract.png/250px-1713_Asiento_contract.png)](https://en.wikipedia.org/wiki/File:1713_Asiento_contract.png) Cover of the English translation of the Asiento contract signed by Britain and Spain in 1713 as part of the Utrecht treaty that ended the War of Spanish Succession. The contract granted exclusive rights to Britain to sell slaves in the Spanish Indies. Under the [Treaty of Tordesillas](https://en.wikipedia.org/wiki/Treaty_of_Tordesillas "Treaty of Tordesillas"), Spain was the only European power that could not establish factories in Africa to purchase slaves. The slaves for Spanish America were provided by companies that were granted exclusive rights to their trade. This monopoly contract was called the slave Asiento. Between 1701 and 1713 the Asiento contract was granted to France. In 1711 Britain had created the South Sea Company to reduce debt and to trade with Spanish America, but that commerce was illegal without a permit from Spain, and the only existing permit was the Asiento for the slave trade, so at the [Treaty of Utrecht](https://en.wikipedia.org/wiki/Treaty_of_Utrecht "Treaty of Utrecht") in 1713 Britain obtained the transfer of the Asiento contract from French to British hands for the next 30 years. The board of directors was reluctant to take on the slave trade, which was not an object of the company and had shown little profitability when carried out by chartered companies, but they finally agreed on 26 March 1714. The Asiento set a sale quota of 4,800 units of slaves per year. An adult male slave counted as one unit; females and children counted as fractions of a unit. Initially the slaves were provided by the [Royal African Company](https://en.wikipedia.org/wiki/Royal_African_Company "Royal African Company"). The South Sea Company established slave reception factories at [Cartagena, Colombia](https://en.wikipedia.org/wiki/Cartagena,_Colombia "Cartagena, Colombia"), [Veracruz](https://en.wikipedia.org/wiki/Veracruz,_Veracruz "Veracruz, Veracruz"), Mexico, Panama, [Portobello](https://en.wikipedia.org/wiki/Portobelo,_Col%C3%B3n "Portobelo, Colón"), [La Guaira](https://en.wikipedia.org/wiki/La_Guaira "La Guaira"), [Buenos Aires](https://en.wikipedia.org/wiki/Buenos_Aires "Buenos Aires"), [La Havana](https://en.wikipedia.org/wiki/La_Havana "La Havana") and [Santiago de Cuba](https://en.wikipedia.org/wiki/Santiago_de_Cuba "Santiago de Cuba"), and slave deposits at [Jamaica](https://en.wikipedia.org/wiki/Jamaica "Jamaica") and [Barbados](https://en.wikipedia.org/wiki/Barbados "Barbados"). Despite problems with speculation, the South Sea Company was relatively successful at [slave trading](https://en.wikipedia.org/wiki/Atlantic_slave_trade "Atlantic slave trade") and meeting its quota (it was unusual for other, similarly chartered companies to fulfill their quotas). According to records compiled by David Eltis and others, during the course of 96 voyages in 25 years, the South Sea Company purchased 34,000 slaves, of whom 30,000 survived the voyage across the Atlantic.[\[49\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-50) (Thus about 11% of the slaves died on the voyage: a relatively low mortality rate for the [Middle Passage](https://en.wikipedia.org/wiki/Middle_Passage "Middle Passage").[\[50\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-51)) The company persisted with the slave trade through two wars with Spain and the calamitous 1720 commercial [bubble](https://en.wikipedia.org/wiki/Economic_bubble "Economic bubble"). The company's slave trading peaked during 1725, five years after the bubble burst.[\[51\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-52) ### The annual ship \[[edit](https://en.wikipedia.org/w/index.php?title=South_Sea_Company&action=edit&section=18 "Edit section: The annual ship")\] The slave Asiento contract of 1713 granted a permit to send one vessel of 500 tons per year, loaded with duty-free merchandise to be sold at the fairs of [New Spain](https://en.wikipedia.org/wiki/New_Spain "New Spain"), [Cartagena](https://en.wikipedia.org/wiki/Cartagena,_Colombia "Cartagena, Colombia") and [Portobello](https://en.wikipedia.org/wiki/Portobelo,_Col%C3%B3n "Portobelo, Colón"). This was an unprecedented concession that broke two centuries of strict exclusion of foreign merchants from the Spanish Empire, although a quarter of the profit was to be paid to the Spanish Crown.[\[52\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-53) The first ship to head for the Americas, the Royal Prince, was scheduled for 1714 but was delayed until August 1716. In consideration of the three annual ships missed since the date of the Asiento, the permitted tonnage of the next ten ships was raised to 650.[\[53\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-54) Only seven annual ships sailed during the Asiento, the last one being the Royal Caroline in 1732. The company's failure to produce accounts for all the annual ships but the first one, and lack of payment of the proceeds to the Spanish Crown from the profits for all the annual ships, resulted in no permits being granted after the Royal Caroline trip of 1732–1734. In contrast to the "legitimate" trade in slaves, the regular trade of the annual ships generated healthy returns, in some case profits were over 100%.[\[54\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-55) Accounts for the voyage of the Royal Prince were not presented until 1733, following continuous demands by Spanish officials. They reported profits of £43,607.[\[55\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-56) Since the King of Spain was entitled to 25% of the profits, after deducting interest on a loan he claimed £8,678. The South Sea Company never paid the amount due for the first annual ship to the Spanish Crown, nor did it pay any amount for any of the other six trips.[\[56\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-57): 341 ### Arctic whaling \[[edit](https://en.wikipedia.org/w/index.php?title=South_Sea_Company&action=edit&section=19 "Edit section: Arctic whaling")\] Main article: [Whaling in the United Kingdom § The northern whale fishery](https://en.wikipedia.org/wiki/Whaling_in_the_United_Kingdom#The_northern_whale_fishery "Whaling in the United Kingdom") The [Greenland Company](https://en.wikipedia.org/w/index.php?title=Greenland_Company&action=edit&redlink=1 "Greenland Company (page does not exist)") had been established by an act of Parliament, the [Greenland Trade Act 1692](https://en.wikipedia.org/w/index.php?title=Greenland_Trade_Act_1692&action=edit&redlink=1 "Greenland Trade Act 1692 (page does not exist)") ([4 Will. & Mar.](https://en.wikipedia.org/wiki/4_Will._%26_Mar. "4 Will. & Mar.") c. 17) in 1693 with the object of catching whales in the Arctic. The products of their "whale-fishery" were to be free of customs and other duties. Partly due to maritime disruption caused by wars with France, the Greenland Company failed financially within a few years. In 1722 Henry Elking published a proposal, directed at the governors of the South Sea Company, that they should resume the "Greenland Trade" and send ships to catch whales in the Arctic. He made very detailed suggestions about how the ships should be crewed and equipped.[\[57\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-58) The British Parliament confirmed that a British Arctic "whale-fishery" would continue to benefit from freedom from customs duties, and in 1724 the South Sea Company decided to commence whaling. They had 12 whale-ships built on the River Thames and these went to the Greenland seas in 1725. Further ships were built in later years, but the venture was not successful. There were hardly any experienced whalemen remaining in Britain, and the company had to engage Dutch and Danish whalemen for the key posts aboard their ships: for instance all commanding officers and harpooners were hired from the [North Frisian](https://en.wikipedia.org/wiki/North_Frisia "North Frisia") island of [Föhr](https://en.wikipedia.org/wiki/F%C3%B6hr "Föhr").[\[58\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-59) Other costs were badly controlled and the catches remained disappointingly few, even though the company was sending up to 25 ships to [Davis Strait](https://en.wikipedia.org/wiki/Davis_Strait "Davis Strait") and the [Greenland](https://en.wikipedia.org/wiki/Greenland "Greenland") seas in some years. By 1732 the company had accumulated a net loss of £177,782 from their eight years of Arctic whaling.[\[59\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-60) The South Sea Company directors appealed to the British government for further support. Parliament had passed the [Greenland Fishery Act 1731](https://en.wikipedia.org/w/index.php?title=Greenland_Fishery_Act_1731&action=edit&redlink=1 "Greenland Fishery Act 1731 (page does not exist)") ([5 Geo. 2](https://en.wikipedia.org/wiki/5_Geo._2 "5 Geo. 2"). c. 28) in 1732 that extended the duty-free concessions for a further nine years. In 1733 the [Whale Fishery Act 1732](https://en.wikipedia.org/w/index.php?title=Whale_Fishery_Act_1732&action=edit&redlink=1 "Whale Fishery Act 1732 (page does not exist)") ([6 Geo. 2](https://en.wikipedia.org/wiki/6_Geo._2 "6 Geo. 2"). c. 33) was passed that also granted a government subsidy to British Arctic whalers, the first in a long series of such acts of Parliament that continued and modified the whaling subsidies throughout the 18th century. This, and the subsequent acts, required the whalers to meet conditions regarding the crewing and equipping of the whale-ships that closely resembled the conditions suggested by Elking in 1722.[\[60\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-61) In spite of the extended duty-free concessions, and the prospect of real subsidies as well, the court and directors of the South Sea Company decided that they could not expect to make profits from Arctic whaling. They sent out no more whale-ships after the loss-making 1732 season. ## Government debt after the Seven Years' War \[[edit](https://en.wikipedia.org/w/index.php?title=South_Sea_Company&action=edit&section=20 "Edit section: Government debt after the Seven Years' War")\] The company continued its trade (when not interrupted by war) until the end of the [Seven Years' War](https://en.wikipedia.org/wiki/Seven_Years%27_War "Seven Years' War") (1756–1763). However, its main function was always managing government debt, rather than trading with the Spanish colonies. The South Sea Company continued its management of part of the [national debt](https://en.wikipedia.org/wiki/National_debt "National debt") until it was disestablished in 1853, at which point the debt was reconsolidated. The debt was not paid off by the time of the [First World War](https://en.wikipedia.org/wiki/First_World_War "First World War"), at which point it was consolidated again, under terms that allowed the government to avoid repaying the principal. ## Armorials \[[edit](https://en.wikipedia.org/w/index.php?title=South_Sea_Company&action=edit&section=21 "Edit section: Armorials")\] The armorials of the South Sea Company, according to a [grant of arms](https://en.wikipedia.org/wiki/Grant_of_arms "Grant of arms") dated 31 October 1711, were: Azure, a globe whereon are represented the Straits of Magellan and Cape Horn all proper and in sinister chief point two herrings haurient in saltire argent crowned or, in a canton the united arms of Great Britain. Crest: A ship of three masts in full sail. Supporters, dexter: The emblematic figure of Britannia, with the shield, lance etc all proper; sinister: A fisherman completely clothed, with cap boots fishing net etc and in his hand a string of fish, all proper.[\[61\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-62) ## Officers of the South Sea Company \[[edit](https://en.wikipedia.org/w/index.php?title=South_Sea_Company&action=edit&section=22 "Edit section: Officers of the South Sea Company")\] \| South Sea Company Act 1753 \| \| \|---\|---\| \| Act of Parliament \| \| \| [![coat of arms](https://upload.wikimedia.org/wikipedia/commons/thumb/3/30/Coat_of_arms_of_Great_Britain_%281714%E2%80%931801%29.svg/250px-Coat_of_arms_of_Great_Britain_%281714%E2%80%931801%29.svg.png)](https://en.wikipedia.org/wiki/File:Coat_of_arms_of_Great_Britain_\(1714%E2%80%931801\).svg)[Parliament of Great Britain](https://en.wikipedia.org/wiki/Parliament_of_Great_Britain "Parliament of Great Britain") \| \| \| [Long title](https://en.wikipedia.org/wiki/Short_and_long_titles "Short and long titles") \| An Act for reducing the Number of Directors of the Corporation of the Governor and Company of Merchants of Great Britain trading to The South-Seas and other Parts of America; and for encouraging the Fishery; and for regulating the Election of the Governors and Directors of the said Company. \| \| [Citation](https://en.wikipedia.org/wiki/Citation_of_United_Kingdom_legislation "Citation of United Kingdom legislation") \| [26 Geo. 2](https://en.wikipedia.org/wiki/26_Geo._2 "26 Geo. 2"). c. 16 \| \| Territorial extent \| [Great Britain](https://en.wikipedia.org/wiki/Great_Britain "Great Britain") \| \| Dates \| \| \| [Royal assent](https://en.wikipedia.org/wiki/Royal_assent "Royal assent") \| 15 May 1753 \| \| [Commencement](https://en.wikipedia.org/wiki/Coming_into_force "Coming into force") \| 11 January 1753[\[b\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-63) \| \| Repealed \| 15 July 1867 \| \| Other legislation \| \| \| [Repealed by](https://en.wikipedia.org/wiki/Repeal "Repeal") \| [Statute Law Revision Act 1867](https://en.wikipedia.org/wiki/Statute_Law_Revision_Act_1867 "Statute Law Revision Act 1867") \| \| Status: Repealed \| \| \| [Text of statute as originally enacted](https://books.google.co.uk/books?id=a7wuAAAAIAAJ&pg=PA42) \| \| The South Sea Company had a governor (generally an honorary position), a subgovernor, a deputy governor and 30 directors – reduced by the South Sea Company Act 1753 ([26 Geo. 2](https://en.wikipedia.org/wiki/26_Geo._2 "26 Geo. 2"). c. 16) to 21 directors.[\[62\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-64) \| Year \| Governor \| Subgovernor \| Deputy governor \| \|---\|---\|---\|---\| \| July 1711 \| [Robert Harley, 1st Earl of Oxford](https://en.wikipedia.org/wiki/Robert_Harley,_1st_Earl_of_Oxford "Robert Harley, 1st Earl of Oxford") \| Sir James Bateman \| [Samuel Ongley](https://en.wikipedia.org/wiki/Samuel_Ongley_\(died_1726\) "Samuel Ongley (died 1726)") \| \| August 1712 \| [Sir Ambrose Crowley](https://en.wikipedia.org/wiki/Ambrose_Crowley "Ambrose Crowley") \| \| \| \| October 1713 \| [Samuel Shepheard](https://en.wikipedia.org/wiki/Samuel_Shepheard_\(died_1719\) "Samuel Shepheard (died 1719)") \| \| \| \| February 1715 \| [George, Prince of Wales](https://en.wikipedia.org/wiki/George_II_of_Great_Britain "George II of Great Britain") \| \| \| \| February 1718 \| [King George I](https://en.wikipedia.org/wiki/George_I_of_Great_Britain "George I of Great Britain") \| \| \| \| November 1718 \| John Fellows \| \| \| \| February 1719 \| [Charles Joye](https://en.wikipedia.org/w/index.php?title=Charles_Joye&action=edit&redlink=1 "Charles Joye (page does not exist)") \| \| \| \| February 1721 \| [Sir John Eyles, Bt](https://en.wikipedia.org/wiki/Sir_John_Eyles,_2nd_Baronet "Sir John Eyles, 2nd Baronet") \| John Rudge \| \| \| July 1727 \| [King George II](https://en.wikipedia.org/wiki/George_II_of_Great_Britain "George II of Great Britain") \| \| \| \| February 1730 \| [John Hanbury](https://en.wikipedia.org/wiki/John_Hanbury_\(1664%E2%80%931734\) "John Hanbury (1664–1734)") \| \| \| \| February 1733 \| [Sir Richard Hopkins](https://en.wikipedia.org/wiki/Richard_Hopkins_\(died_1736\) "Richard Hopkins (died 1736)") \| [John Bristow](https://en.wikipedia.org/wiki/John_Bristow "John Bristow") \| \| \| February 1735 \| [Peter Burrell](https://en.wikipedia.org/wiki/Peter_Burrell_\(1692%E2%80%931756\) "Peter Burrell (1692–1756)") \| \| \| \| March 1756 \| [John Bristow](https://en.wikipedia.org/wiki/John_Bristow "John Bristow") \| [John Philipson](https://en.wikipedia.org/w/index.php?title=John_Philipson&action=edit&redlink=1 "John Philipson (page does not exist)") \| \| \| February 1756 \| Lewis Way \| \| \| \| January 1760 \| [King George III](https://en.wikipedia.org/wiki/King_George_III "King George III") \| \| \| \| February 1763 \| Lewis Way \| Richard Jackson \| \| \| March 1768 \| [Thomas Coventry](https://en.wikipedia.org/wiki/Thomas_Coventry_\(died_1797\) "Thomas Coventry (died 1797)") \| \| \| \| January 1771 \| [Thomas Coventry](https://en.wikipedia.org/wiki/Thomas_Coventry_\(politician\) "Thomas Coventry (politician)") \| vacant (?) \| \| \| January 1772 \| John Warde \| \| \| \| March 1775 \| [Samuel Salt](https://en.wikipedia.org/wiki/Samuel_Salt "Samuel Salt") \| \| \| \| January 1793 \| [Benjamin Way](https://en.wikipedia.org/wiki/Benjamin_Way "Benjamin Way") \| [Robert Dorrell](https://en.wikipedia.org/w/index.php?title=Robert_Dorrell&action=edit&redlink=1 "Robert Dorrell (page does not exist)") \| \| \| February 1802 \| [Peter Pierson](https://en.wikipedia.org/w/index.php?title=Peter_Pierson&action=edit&redlink=1 "Peter Pierson (page does not exist)") \| \| \| \| February 1808 \| [Charles Bosanquet](https://en.wikipedia.org/wiki/Charles_Bosanquet "Charles Bosanquet") \| Benjamin Harrison \| \| \| 1820 \| [King George IV](https://en.wikipedia.org/wiki/King_George_IV "King George IV") \| \| \| \| January 1826 \| Sir Robert Baker \| \| \| \| 1830 \| [King William IV](https://en.wikipedia.org/wiki/King_William_IV "King William IV") \| \| \| \| July 1837 \| [Queen Victoria](https://en.wikipedia.org/wiki/Queen_Victoria "Queen Victoria") \| \| \| \| January 1838 \| Charles Franks \| [Thomas Vigne](https://en.wikipedia.org/wiki/Thomas_Vigne "Thomas Vigne") \| \| \| \| \| \|---\|---\| \| ![](https://upload.wikimedia.org/wikipedia/en/thumb/1/1d/Information_icon4.svg/20px-Information_icon4.svg.png) \| This list is [incomplete](https://en.wikipedia.org/wiki/Wikipedia:WikiProject_Lists#Incomplete_lists "Wikipedia:WikiProject Lists"); you can help by [adding missing items](https://en.wikipedia.org/w/index.php?title=South_Sea_Company&action=edit). (January 2010) \| ## In fiction \[[edit](https://en.wikipedia.org/w/index.php?title=South_Sea_Company&action=edit&section=23 "Edit section: In fiction")\] - [David Liss](https://en.wikipedia.org/wiki/David_Liss "David Liss")' historical-mystery novel [A Conspiracy of Paper](https://en.wikipedia.org/wiki/A_Conspiracy_of_Paper "A Conspiracy of Paper"), set in 1720 London, is focused on the South Sea Company at the top of its power, its fierce rivalry with the [Bank of England](https://en.wikipedia.org/wiki/Bank_of_England "Bank of England") and the events leading up to the collapse of the "bubble". - [Charles Lamb](https://en.wikipedia.org/wiki/Charles_Lamb "Charles Lamb")'s essay The South-Sea House (1820) in [Essays of Elia](https://en.wikipedia.org/wiki/Essays_of_Elia "Essays of Elia") – Lamb once worked in the South Sea House, and adopted his pseudonym (Elia) from a coworker there. - [Charles Dickens](https://en.wikipedia.org/wiki/Charles_Dickens "Charles Dickens") novels are littered with stock-market speculations, villains, swindlers and fictional speculators: - [Nicholas Nickleby](https://en.wikipedia.org/wiki/Nicholas_Nickleby "Nicholas Nickleby") (1839) – Ralph Nickleby's great Joint Stock Company, United Metropolitan Improved Hot Muffin and Crumpet Baking and Punctual Delivery Company. - [Martin Chuzzlewit](https://en.wikipedia.org/wiki/Martin_Chuzzlewit "Martin Chuzzlewit") (1844) – Anglo-Bengalee Disinterested Loan and Life Company, modelled loosely on the South Sea Bubble, is in essence a classic [Ponzi scheme](https://en.wikipedia.org/wiki/Ponzi_scheme "Ponzi scheme"). - [David Copperfield](https://en.wikipedia.org/wiki/David_Copperfield "David Copperfield") (1850) – The false accounting by the sycophant Uriah Heep, clerk to lawyer Mr Wickfield. - [Little Dorrit](https://en.wikipedia.org/wiki/Little_Dorrit "Little Dorrit") (1857) – The financial house of Mr Merdle. - [Robert Goddard](https://en.wikipedia.org/wiki/Robert_Goddard_\(novelist\) "Robert Goddard (novelist)")'s novel Sea Change (2000) covers the aftermath of the "bubble" and the attempts by politicians to evade responsibility and prevent a [Jacobite](https://en.wikipedia.org/wiki/Jacobitism "Jacobitism") restoration. ## See also \[[edit](https://en.wikipedia.org/w/index.php?title=South_Sea_Company&action=edit&section=24 "Edit section: See also")\] - [List of stock market crashes and bear markets](https://en.wikipedia.org/wiki/List_of_stock_market_crashes_and_bear_markets "List of stock market crashes and bear markets") - [SSC coinage](https://en.wikipedia.org/wiki/SSC_coinage "SSC coinage") - [Tulip mania](https://en.wikipedia.org/wiki/Tulip_mania "Tulip mania") - [History of company law in the United Kingdom](https://en.wikipedia.org/wiki/History_of_company_law_in_the_United_Kingdom "History of company law in the United Kingdom") - [Whaling in the United Kingdom](https://en.wikipedia.org/wiki/Whaling_in_the_United_Kingdom "Whaling in the United Kingdom") - [Mississippi Bubble](https://en.wikipedia.org/wiki/Mississippi_Bubble "Mississippi Bubble") - [Buttonwood Agreement](https://en.wikipedia.org/wiki/Buttonwood_Agreement "Buttonwood Agreement") USA 1792 - [Bern banking crisis of 1720](https://en.wikipedia.org/wiki/Bern_banking_crisis_of_1720 "Bern banking crisis of 1720") ## Notes \[[edit](https://en.wikipedia.org/w/index.php?title=South_Sea_Company&action=edit&section=25 "Edit section: Notes")\] 1. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-3) alternatively The Governor and Company of the merchants of Great Britain, trading to the South Seas and other parts of America, and for the encouragement of fishing 2. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-63) Start of session. ## References \[[edit](https://en.wikipedia.org/w/index.php?title=South_Sea_Company&action=edit&section=26 "Edit section: References")\] 1. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-1) Thornbury, Walter, Old and New London, vol. 1, p. 538 2. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-2) ["Cloth Seal, Company, 1711–1853, South Seas & Fisheries"](http://www.bagseals.org/gallery/main.php?g2_itemId=3246). www.bagseals.org. 3. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-4) Journals of the House of Commons, volume 16: 1708–1711, p. 685. 4. ^ [*a](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-:0_5-0) [b](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-:0_5-1) [c](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-:0_5-2) Paul, Helen (2009). ["The South Sea Company's slaving activities"](https://www.southampton.ac.uk/assets/imported/transforms/content-block/UsefulDownloads_Download/326F907A8F434B05B2199578407AA4B6/0924.pdf) (PDF). Discussion Papers in Economics and Econometrics. [ISSN](https://en.wikipedia.org/wiki/ISSN_\(identifier\) "ISSN (identifier)") [0966-4246](https://search.worldcat.org/issn/0966-4246). 5. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-6)* Marshall, Dorothy (1962). Eighteenth Century England, pp. 121–130. 6. ^ [*a](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-:1_7-0) [b](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-:1_7-1) Paul, Helen J. (2013). The South Sea Bubble: an economic history of its origins and consequences. London: Routledge. [ISBN](https://en.wikipedia.org/wiki/ISBN_\(identifier\) "ISBN (identifier)") [978-0-415-70839-5](https://en.wikipedia.org/wiki/Special:BookSources/978-0-415-70839-5 "Special:BookSources/978-0-415-70839-5") . [OCLC](https://en.wikipedia.org/wiki/OCLC_\(identifier\) "OCLC (identifier)") [925312648](https://search.worldcat.org/oclc/925312648). 7. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-8)* Thornbury, Walter. "Threadneedle Street". [Old and New London](http://www.british-history.ac.uk/old-new-london/vol1/pp531-544). Volume 1 (London, 1878). pp. 531–544 – via British History Online. Accessed 21 July 2016. 8. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-9) Carswell, pp. 40, 48–50 9. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-10) Carswell, pp. 50–51 10. ^ [*a](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-auto2_11-0) [b](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-auto2_11-1) Carswell, pp. 52–54 11. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-12)* Carswell, pp. 54–55 12. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-13) Defoe, Daniel, An Essay on the South-Sea Trade ... , 2nd ed., (London, England: J. Baker, 1712), [pp. 40–41.](https://books.google.com/books?id=NZ5VAAAAcAAJ&pg=PA40) 13. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-14) Carswell, p. 56 14. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-15) Carswell, pp. 57, 58 15. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-16) Carswell, pp. 60–63 16. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-17) Carswell, pp. 64–66 17. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-18) Carswell, pp. 65–66 18. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-19) Carswell, p. 67 19. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-20) Carswell, pp. 66–67 20. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-21) Carswell, pp. 67–70 21. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-22) Carswell, pp. 73–75 22. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-23) Carswell, pp. 75–76 23. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-24) Carswell, pp. 88–89 24. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-25) Carswell, pp. 89–90 25. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-26) Carswell, pp. 100–102 26. ^ [*a](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-auto_27-0) [b](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-auto_27-1) Carswell, pp. 102–107 27. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-28)* ["UK Budget Pie Chart for 2010 – Charts"](https://web.archive.org/web/20110728044409/http://www.ukpublicspending.co.uk/budget_pie_ukgs.php?span=ukgs302&year=1717&view=1&expand=&units=b&fy=2010&state=UK). Archived from [the original](http://www.ukpublicspending.co.uk/budget_pie_ukgs.php?span=ukgs302&year=1717&view=1&expand=&units=b&fy=2010&state=UK#ukgs302) on 28 July 2011. 28. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-29) Carswell, pp. 112–113 29. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-30) Carswell, pp. 114–118 30. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-31) Cowles, ch. II, IV (esp. pp. 151, 168–169 for share prices) 31. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-32) Cowles, ch. IV 32. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-33) Cowles, chapter IV (esp. p. 146 for "bribe shares") 33. ^ [*a](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-auto1_34-0) [b](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-auto1_34-1) Carswell, pp. 116–117 34. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-35)* Carswell, pp. 138–140 35. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-36) Odlyzko, Andrew. ["An undertaking of great advantage, but nobody to know what it is: Bubbles and gullibility"](https://www.dtc.umn.edu/~odlyzko/doc/mania17.pdf) (PDF). University of Minnesota. Retrieved 22 October 2020. 36. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-37) [Alter, Peter](https://en.wikipedia.org/wiki/Peter_Alter "Peter Alter") (2018). "Der geplatzte Traum vom schnellen Geld". [Damals](https://en.wikipedia.org/wiki/Damals "Damals") (in German). Vol. 50, no. 8. pp. 72–76\. 37. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-38) [McDonald, Forrest](https://en.wikipedia.org/wiki/Forrest_McDonald "Forrest McDonald") (9 September 1990). ["The English Revolution in America"](https://web.archive.org/web/20150525193440/https://www.nytimes.com/1990/09/09/books/the-english-revolution-in-america.html). New York Times Book Review. Archived from [the original](https://www.nytimes.com/1990/09/09/books/the-english-revolution-in-america.html?smid=url-share) on 25 May 2015. 38. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-39) Marshall, pp. 127–130. 39. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-40) Richard A. Kleer (2015), "Riding a wave: the Company's role in the South Sea Bubble", p. 165. 40. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-41) Stephen Taylor (2008), "Walpole, Robert, first earl of Orford (1676–1745)", Oxford Dictionary of National Biography 41. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-42) Spence, Anecdotes, 1820, p. 368. 42. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-43) John O'Farrell (2007), An Utterly Impartial History of Britain – Or 2000 Years of Upper Class Idiots In Charge, Doubleday, [ISBN](https://en.wikipedia.org/wiki/ISBN_\(identifier\) "ISBN (identifier)") [978-0-385-61198-5](https://en.wikipedia.org/wiki/Special:BookSources/978-0-385-61198-5 "Special:BookSources/978-0-385-61198-5") 43. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-44) Westfall, Richard S. (1983). [Never at Rest: A Biography of Isaac Newton](https://archive.org/details/neveratrestbiogr00west). Cambridge University Press. pp. [861](https://archive.org/details/neveratrestbiogr00west/page/861)–862. [ISBN](https://en.wikipedia.org/wiki/ISBN_\(identifier\) "ISBN (identifier)") [978-0-521-27435-7](https://en.wikipedia.org/wiki/Special:BookSources/978-0-521-27435-7 "Special:BookSources/978-0-521-27435-7") . 44. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-45) Holodny, Elena (10 November 2017). ["Isaac Newton Was a Genius, but Even He Lost Millions in the Stock Market"](https://www.businessinsider.com/isaac-newton-lost-a-fortune-on-englands-hottest-stock-2016-1). Business Insider. 45. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-inflation-UK_46-0) UK [Consumer Price Index](https://en.wikipedia.org/wiki/Consumer_Price_Index "Consumer Price Index") inflation figures from 1209–2024 based on data from ["Inflation calculator"](https://www.bankofengland.co.uk/monetary-policy/inflation/inflation-calculator). [Bank of England](https://en.wikipedia.org/wiki/Bank_of_England "Bank of England"). London. 18 February 2026. Retrieved 1 April 2026. 46. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-47) Nelson (1945) states that the substantial illicit trade pursued by the South Sea Company officials under the Asiento "must be considered as a major cause of the War of Jenkins' Ear because it threatened to destroy the entire commercial framework of the Spanish Empire ... Unable to accept the destruction of its commercial system, Spain attempted to negotiate but requested that the company, as an evidence of good faith, should open its accounts for inspection by the Spanish representatives. Naturally, the directors refused, for compliance would have meant the complete exposure of the illegal traffic. Neither Spain nor the South Sea Company would yield. War was the inevitable result". 47. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-48) Brown (1926, p. 663) says that The failure to comply with the accounting provisions of the Asiento treaty (in the context of Spanish knowledge of secret accounts kept by the South Sea Company which would prove clandestine trading) was a constant source of the friction which culminated in armed conflict. 48. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-49) For Hildner (1938), the war of 1739 might have been averted if the issues addressed by the commission established in 1732 to settle disputes over the Asiento had been resolved. 49. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-50) ["History Cooperative – A Short History of Nearly Everything!"](http://www.historycooperative.org/cgi-bin/justtop.cgi?act=justtop&url=http://www.historycooperative.org/journals/wm/58.1/eltis.html). History Cooperative. `{{cite web}}`: CS1 maint: deprecated archival service ([link](https://en.wikipedia.org/wiki/Category:CS1_maint:_deprecated_archival_service "Category:CS1 maint: deprecated archival service")) 50. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-51) Paul, Helen. ["The South Sea Company's slaving activities"](http://www.ehs.org.uk/ehs/conference2004/assets/paul.doc). `{{cite web}}`: CS1 maint: deprecated archival service ([link](https://en.wikipedia.org/wiki/Category:CS1_maint:_deprecated_archival_service "Category:CS1 maint: deprecated archival service")) 51. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-52) Paul, H. J. (2010). The South Sea Bubble. 52. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-53) Walker, G. J. (1979), p. 101 53. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-54) Archivo General de Indias, Seville, Spain IG2785 54. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-55) McLachlan, (1940), pp. 130–131 55. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-56) Archivo General de Indias, Seville, Spain C266L3 56. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-57) Hildner, Ernest G. (August 1938). "The Role of the South Sea Company in the Diplomacy Leading to the War of Jenkins' Ear, 1729–1739". The Hispanic American Historical Review. 18 (3): 322–341\. [doi](https://en.wikipedia.org/wiki/Doi_\(identifier\) "Doi (identifier)"):[10\.2307/2507151](https://doi.org/10.2307%2F2507151). [JSTOR](https://en.wikipedia.org/wiki/JSTOR_\(identifier\) "JSTOR (identifier)") [2507151](https://www.jstor.org/stable/2507151). 57. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-58) Elking, Henry \[1722\](1980). A view of the Greenland Trade and whale-fishery. Reprinted: Whitby: Caedmon. [ISBN](https://en.wikipedia.org/wiki/ISBN_\(identifier\) "ISBN (identifier)") [0-905355-13-X](https://en.wikipedia.org/wiki/Special:BookSources/0-905355-13-X "Special:BookSources/0-905355-13-X") 58. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-59) Zacchi, Uwe (1986). Menschen von Föhr. Lebenswege aus drei Jahrhunderten (in German). Heide: Boyens & Co. p. 13. [ISBN](https://en.wikipedia.org/wiki/ISBN_\(identifier\) "ISBN (identifier)") [978-3-8042-0359-4](https://en.wikipedia.org/wiki/Special:BookSources/978-3-8042-0359-4 "Special:BookSources/978-3-8042-0359-4") . 59. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-60) Anderson, Adam \[1801\](1967). The Origin of Commerce. Reprinted: New York: Kelley. 60. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-61) Evans, Martin H. (2005). Statutory requirements regarding surgeons on British whale-ships. The Mariner's Mirror 91 (1) 7–12. 61. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-62) National Maritime Museum, Greenwich, catalogue entry for sculpture of arms, object ID: HRA0043 [\[1\]](https://collections.rmg.co.uk/collections/objects/605213.html) 62. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-64) See, for 1711–21, J Carswell, South Sea Bubble (1960) 274–279; and for 1721–1840, see British Library, Add. MSS, 25544-9. ## Bibliography \[[edit](https://en.wikipedia.org/w/index.php?title=South_Sea_Company&action=edit&section=27 "Edit section: Bibliography")\] Historical - Balen, Malcolm (2002). A Very English Deceit: The Secret History of the South Sea Bubble and the First Great Financial Scandal (London: Fourth Estate) [ISBN](https://en.wikipedia.org/wiki/ISBN_\(identifier\) "ISBN (identifier)") [978-1-841-15552-4](https://en.wikipedia.org/wiki/Special:BookSources/978-1-841-15552-4 "Special:BookSources/978-1-841-15552-4") - Brown, V.L. (1926), "The South Sea Company and Contraband Trade", [The American Historical Review](https://en.wikipedia.org/wiki/The_American_Historical_Review "The American Historical Review"), 31 (4): 662–678, [doi](https://en.wikipedia.org/wiki/Doi_\(identifier\) "Doi (identifier)"):[10\.2307/1840061](https://doi.org/10.2307%2F1840061), [JSTOR](https://en.wikipedia.org/wiki/JSTOR_\(identifier\) "JSTOR (identifier)") [1840061](https://www.jstor.org/stable/1840061) - Carlos, Ann M. and Neal, Larry. (2006) "The Micro-Foundations of the Early London Capital Market: Bank of England shareholders during and after the South Sea Bubble, 1720–25", Economic History Review 59 (2006), pp. 498–538. [online](https://www.researchgate.net/publication/227708231_The_micro-foundations_of_the_early_London_capital_market_Bank_of_England_shareholders_during_and_after_the_South_Sea_Bubble_1720-251) - Carswell, John (1960), The South Sea Bubble, London: Cresset Press - [Cowles, Virginia](https://en.wikipedia.org/wiki/Virginia_Cowles "Virginia Cowles") (1960), The Great Swindle: The Story of the South Sea Bubble, New York: Harper - Dale, Richard S.; et al. (2005), "Financial markets can go mad: evidence of irrational behaviour during the South Sea Bubble", Economic History Review, 58 (2): 233–271, [doi](https://en.wikipedia.org/wiki/Doi_\(identifier\) "Doi (identifier)"):[10\.1111/j.1468-0289.2005.00304.x](https://doi.org/10.1111%2Fj.1468-0289.2005.00304.x), [S2CID](https://en.wikipedia.org/wiki/S2CID_\(identifier\) "S2CID (identifier)") [154836178](https://api.semanticscholar.org/CorpusID:154836178) - Dale, Richard (2004). The First Crash: Lessons from the South Sea Bubble (Princeton University Press) - Freeman, Mark, Robin Pearson, and James Taylor. (2013) "Law, politics and the governance of English and Scottish joint-stock companies, 1600–1850", Business History 55\#4 (2013): 636–652. [online](http://www.tandfonline.com/doi/full/10.1080/00076791.2012.741971) - Harris, Ron (1994). "The Bubble Act: Its Passage and its Effects on Business Organization", The Journal of Economic History, 54 (3), 610–627 - Hildner, E.G. Jr. (1938), "The Role of the South Sea Company in the Diplomacy leading to the War of Jenkins' Ear, 1729–1739", The Hispanic American Historical Review, 18 (3): 322–341, [doi](https://en.wikipedia.org/wiki/Doi_\(identifier\) "Doi (identifier)"):[10\.2307/2507151](https://doi.org/10.2307%2F2507151), [JSTOR](https://en.wikipedia.org/wiki/JSTOR_\(identifier\) "JSTOR (identifier)") [2507151](https://www.jstor.org/stable/2507151) - Hoppit, Julian. (2002) "The Myths of the South Sea Bubble", Transactions of the Royal Historical Society, (2002) 12\#1 pp. 141–165 [in JSTOR](https://www.jstor.org/stable/3679343) - Kleer, Richard A. (2015) "Riding a wave: the Company's role in the South Sea Bubble", The Economic History Review 68.1 (2015): 264–285. [online](https://www.researchgate.net/profile/Richard_Kleer/publication/264537000_Riding_a_wave_The_Company's_role_in_the_South_Sea_Bubble/links/564b825208ae3374e5ddba9a.) - Löwe, Kathleen (2021) [Die Südseeblase in der englischen Kunst des 18. und 19. Jahrhunderts. Bilder einer Finanzkrise](http://www.reimer-mann-verlag.de/controller.php?cmd=detail&titelnummer=103047&verlag=4), Berlin: Reimer. - McLachlan, J.O. (1940), Trade and Peace With Old Spain, 1667–1750, Cambridge: Cambridge University Press \[[ISBN missing](https://en.wikipedia.org/wiki/Wikipedia:Citing_sources "Wikipedia:Citing sources")\] - McColloch, William E. (2013) "A shackled revolution? The Bubble Act and financial regulation in eighteenth-century England", Review of Keynesian Economics 1.3 (2013): 300–313. [online](https://www.researchgate.net/profile/Valerio_Cerretano/publication/286423413_Economic_crises_and_the_development_of_the_industrial_state_the_industrial_intervention_of_the_Bank_of_Italy_and_the_Bank_of_England_1918-1939/links/5804b91208ae73d9d6149867/Economic-crises-and-the-development-of-the-industrial-state-the-industrial-intervention-of-the-Bank-of-Italy-and-the-Bank-of-England-1918-1939.pdf#page=38) - Mackay, C. [Extraordinary Popular Delusions and the Madness of Crowds](https://en.wikipedia.org/wiki/Extraordinary_Popular_Delusions_and_the_Madness_of_Crowds "Extraordinary Popular Delusions and the Madness of Crowds") (1841) - Marshall, Dorothy. (1962) Eighteenth Century England Longman. pp. 121–130.\[[ISBN missing](https://en.wikipedia.org/wiki/Wikipedia:Citing_sources "Wikipedia:Citing sources")\] - Michie, R.C. (2001), "From Market to Exchange, 1693–1801", The London Stock Exchange, Oxford: Oxford University Press, [ISBN](https://en.wikipedia.org/wiki/ISBN_\(identifier\) "ISBN (identifier)") [978-0-19-924255-9](https://en.wikipedia.org/wiki/Special:BookSources/978-0-19-924255-9 "Special:BookSources/978-0-19-924255-9") - Nelson, G.H. (1945), "Contraband Trade Under the Asiento", [The American Historical Review](https://en.wikipedia.org/wiki/The_American_Historical_Review "The American Historical Review"), 51 (1): 55–67, [doi](https://en.wikipedia.org/wiki/Doi_\(identifier\) "Doi (identifier)"):[10\.2307/1843076](https://doi.org/10.2307%2F1843076), [JSTOR](https://en.wikipedia.org/wiki/JSTOR_\(identifier\) "JSTOR (identifier)") [1843076](https://www.jstor.org/stable/1843076) - Paul, Helen Julia (2010) The South Sea Bubble: an economic history of its origins and consequences, Routledge Explorations in Economic History [online](http://ieg-ego.eu/en/threads/european-media/european-media-events/helen-j-paul-the-south-sea-bubble-1720) short summary - Paul, Helen. (2013) The South Sea Bubble: An Economic History of its Origins and Consequences Routledge, 176 pp. \[[ISBN missing](https://en.wikipedia.org/wiki/Wikipedia:Citing_sources "Wikipedia:Citing sources")\] - Paul, Helen, [The "South Sea Bubble", 1720](https://ieg-ego.eu/de/threads/europaeische-medien/europaeische-medienereignisse/the-south-sea-bubble-1720-south-sea-bubble-be-freigabe), [EGO – European History Online](https://www.ieg-ego.eu/), Mainz: [Institute of European History](http://www.ieg-mainz.de/likecms/index.php), 2015, retrieved: 17 March 2021 ([pdf](https://d-nb.info/1125542748/34)). - Plumb, J. H. (1956) Sir Robert Walpole, vol. 1, The Making of a Statesman. ch 8 - Shea, Gary S. (2007), ["Understanding financial derivatives during the South Sea Bubble: The case of the South Sea subscription shares"](https://www.st-andrews.ac.uk/~wwwecon/CDMA/papers/wp0512.pdf) (PDF), Oxford Economic Papers, 59 (Supplement 1): i73–i104, [doi](https://en.wikipedia.org/wiki/Doi_\(identifier\) "Doi (identifier)"):[10\.1093/oep/gpm031](https://doi.org/10.1093%2Foep%2Fgpm031) - Temin, Peter; Voth, Hans-Joachim (2004), ["Riding the South Sea Bubble"](http://www.aeaweb.org/articles.php?doi=10.1257/0002828043052268), [American Economic Review](https://en.wikipedia.org/wiki/American_Economic_Review "American Economic Review"), 94 (5): 1654–1668, [doi](https://en.wikipedia.org/wiki/Doi_\(identifier\) "Doi (identifier)"):[10\.1257/0002828043052268](https://doi.org/10.1257%2F0002828043052268) - Stratmann, Silke (2000) Myths of Speculation: The South Sea Bubble and 18th-century English Literature. Munich: Fink - Walker, G.J. (1979), Política Española y Comercio Colonial 1700–1789, Barcelona: Editorial Ariel Fiction - Goddard, Robert (2000), Sea Change, London: Bantam Press, p. 416, [ISBN](https://en.wikipedia.org/wiki/ISBN_\(identifier\) "ISBN (identifier)") [978-0-593-04667-8](https://en.wikipedia.org/wiki/Special:BookSources/978-0-593-04667-8 "Special:BookSources/978-0-593-04667-8") . Novel set against the background of the South Sea bubble. - Liss, David (2000), [A Conspiracy of Paper](https://archive.org/details/conspiracyofpape00liss), New York: Random House, [ISBN](https://en.wikipedia.org/wiki/ISBN_\(identifier\) "ISBN (identifier)") [978-0-375-50292-7](https://en.wikipedia.org/wiki/Special:BookSources/978-0-375-50292-7 "Special:BookSources/978-0-375-50292-7") . Novel set in the South Sea Company bubble. ## External links \[[edit](https://en.wikipedia.org/w/index.php?title=South_Sea_Company&action=edit&section=28 "Edit section: External links")\] [![Wikimedia Commons logo](https://upload.wikimedia.org/wikipedia/en/thumb/4/4a/Commons-logo.svg/40px-Commons-logo.svg.png)](https://en.wikipedia.org/wiki/File:Commons-logo.svg) Wikimedia Commons has media related to [South Sea Bubble](https://commons.wikimedia.org/wiki/Category:South_Sea_Bubble "commons:Category:South Sea Bubble"). 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"1Malaysia Development Berhad scandal") (2015–ongoing) [Wells Fargo account fraud scandal](https://en.wikipedia.org/wiki/Wells_Fargo_account_fraud_scandal "Wells Fargo account fraud scandal") (2016–ongoing) [Facebook–Cambridge Analytica data scandal](https://en.wikipedia.org/wiki/Facebook%E2%80%93Cambridge_Analytica_data_scandal "Facebook–Cambridge Analytica data scandal") (2018) [Moser Baer](https://en.wikipedia.org/wiki/Moser_Baer "Moser Baer") (2019) [Wirecard](https://en.wikipedia.org/wiki/Wirecard_scandal "Wirecard scandal") (2020) [Nikola](https://en.wikipedia.org/wiki/Nikola_Corporation#Fraud_allegations "Nikola Corporation") (2020) [Facebook company files leak](https://en.wikipedia.org/wiki/2021_Facebook_leak "2021 Facebook leak") (2021) \| \| [Accounting scandals](https://en.wikipedia.org/wiki/Accounting_scandals "Accounting scandals") [Corporate haven](https://en.wikipedia.org/wiki/Corporate_haven "Corporate haven") [Unreported employment](https://en.wikipedia.org/wiki/Unreported_employment "Unreported employment") \| \| [v](https://en.wikipedia.org/wiki/Template:Chartered_companies "Template:Chartered companies") [t](https://en.wikipedia.org/wiki/Template_talk:Chartered_companies "Template talk:Chartered companies") [e](https://en.wikipedia.org/wiki/Special:EditPage/Template:Chartered_companies "Special:EditPage/Template:Chartered companies")[Chartered companies](https://en.wikipedia.org/wiki/Chartered_company "Chartered company") \| \| \|---\|---\| \| British \| [African Company of Merchants](https://en.wikipedia.org/wiki/African_Company_of_Merchants "African Company of Merchants") [Barbary Company](https://en.wikipedia.org/wiki/Barbary_Company "Barbary Company") [British American Land Company](https://en.wikipedia.org/wiki/British_American_Land_Company "British American Land Company") [British East Africa Company](https://en.wikipedia.org/wiki/Imperial_British_East_Africa_Company "Imperial British East Africa Company") [Canada Company](https://en.wikipedia.org/wiki/Canada_Company "Canada Company") [Canterbury Association](https://en.wikipedia.org/wiki/Canterbury_Association "Canterbury Association") [Company of Merchant Adventurers of London](https://en.wikipedia.org/wiki/Company_of_Merchant_Adventurers_of_London "Company of Merchant Adventurers of London") [Company of Merchant Adventurers to New Lands](https://en.wikipedia.org/wiki/Company_of_Merchant_Adventurers_to_New_Lands "Company of Merchant Adventurers to New Lands") [Company of Scotland](https://en.wikipedia.org/wiki/Company_of_Scotland "Company of Scotland") [East India Company](https://en.wikipedia.org/wiki/East_India_Company "East India Company") [Eastern Archipelago Company](https://en.wikipedia.org/wiki/Eastern_Archipelago_Company "Eastern Archipelago Company") [Eastland Company](https://en.wikipedia.org/wiki/Eastland_Company "Eastland Company") [Guinea Company](https://en.wikipedia.org/wiki/Guinea_Company_\(London\) "Guinea Company (London)") [Hudson's Bay Company](https://en.wikipedia.org/wiki/Hudson%27s_Bay_Company "Hudson's Bay Company") [Levant Company](https://en.wikipedia.org/wiki/Levant_Company "Levant Company") [London and Bristol Company](https://en.wikipedia.org/wiki/London_and_Bristol_Company "London and Bristol Company") [Massachusetts Bay Company](https://en.wikipedia.org/wiki/Massachusetts_Bay_Colony "Massachusetts Bay Colony") [Muscovy Company](https://en.wikipedia.org/wiki/Muscovy_Company "Muscovy Company") [New Zealand Company](https://en.wikipedia.org/wiki/New_Zealand_Company "New Zealand Company") [North Borneo Company](https://en.wikipedia.org/wiki/North_Borneo_Chartered_Company "North Borneo Chartered Company") [Providence Island Company](https://en.wikipedia.org/wiki/Providence_Island_Company "Providence Island Company") [Royal African Company](https://en.wikipedia.org/wiki/Royal_African_Company "Royal African Company") [Royal British Bank](https://en.wikipedia.org/wiki/Royal_British_Bank "Royal British Bank") [Royal Niger Company](https://en.wikipedia.org/wiki/Royal_Niger_Company "Royal Niger Company") [South Africa Company](https://en.wikipedia.org/wiki/British_South_Africa_Company "British South Africa Company") [Sierra Leone Company](https://en.wikipedia.org/wiki/Sierra_Leone_Company "Sierra Leone Company") [Somers Isles Company](https://en.wikipedia.org/wiki/Somers_Isles_Company "Somers Isles Company") [South Australian Company](https://en.wikipedia.org/wiki/South_Australian_Company "South Australian Company") [South Sea Company]() [Spanish Company](https://en.wikipedia.org/wiki/Spanish_Company "Spanish Company") [Venice Company](https://en.wikipedia.org/wiki/Venice_Company "Venice Company") [Virginia Company](https://en.wikipedia.org/wiki/Virginia_Company "Virginia Company") [Plymouth Company](https://en.wikipedia.org/wiki/Plymouth_Company "Plymouth Company") [Virginia Company of London](https://en.wikipedia.org/wiki/Virginia_Company_of_London "Virginia Company of London") \| \| French \| [First French East Indies Company](https://en.wikipedia.org/wiki/First_French_East_Indies_Company "First French East Indies Company") [Company of One Hundred Associates](https://en.wikipedia.org/wiki/Company_of_One_Hundred_Associates "Company of One Hundred Associates") [Company of the American Islands](https://en.wikipedia.org/wiki/Company_of_the_American_Islands "Company of the American Islands") [Company of Habitants](https://en.wikipedia.org/wiki/Company_of_Habitants "Company of Habitants") [French West India Company](https://en.wikipedia.org/wiki/French_West_India_Company "French West India Company") [Compagnie du Sénégal](https://en.wikipedia.org/wiki/Compagnie_du_S%C3%A9n%C3%A9gal "Compagnie du Sénégal") [Louis XIV's East India Company](https://en.wikipedia.org/wiki/Louis_XIV%27s_East_India_Company "Louis XIV's East India Company") [John Law's Company](https://en.wikipedia.org/wiki/John_Law%27s_Company "John Law's Company") [French Indies Company](https://en.wikipedia.org/wiki/French_Indies_Company "French Indies Company") [Compagnie de Calonne](https://en.wikipedia.org/wiki/Compagnie_de_Calonne "Compagnie de Calonne") \| \| German \| [Brandenburg African Company](https://en.wikipedia.org/wiki/Brandenburger_Gold_Coast "Brandenburger Gold Coast") [East Africa Company](https://en.wikipedia.org/wiki/German_East_Africa_Company "German East Africa Company") [Emden Company](https://en.wikipedia.org/wiki/Emden_Company "Emden Company") [New Guinea Company](https://en.wikipedia.org/wiki/German_New_Guinea_Company "German New Guinea Company") [West African Company](https://en.wikipedia.org/wiki/German_West_African_Company "German West African Company") \| \| Portuguese \| [Cacheu and Cape Verde Company](https://en.wikipedia.org/wiki/Cacheu_and_Cape_Verde_Company "Cacheu and Cape Verde Company") [East India Company](https://en.wikipedia.org/wiki/Portuguese_East_India_Company "Portuguese East India Company") [Grão Pará and Maranhão Company](https://en.wikipedia.org/wiki/Gr%C3%A3o_Par%C3%A1_and_Maranh%C3%A3o_Company "Grão Pará and Maranhão Company") [Company of Guinea](https://en.wikipedia.org/wiki/Casa_da_Guin%C3%A9 "Casa da Guiné") [House of India](https://en.wikipedia.org/wiki/Casa_da_%C3%8Dndia "Casa da Índia") [Mozambique Company](https://en.wikipedia.org/wiki/Mozambique_Company "Mozambique Company") [Zambezia Company](https://en.wikipedia.org/wiki/Zambezia_Company "Zambezia Company") [Niassa Company](https://en.wikipedia.org/wiki/Niassa_Company "Niassa Company") \| \| Austrian and [Low Countries](https://en.wikipedia.org/wiki/Low_Countries "Low Countries") \| [Brabantsche Compagnie](https://en.wikipedia.org/wiki/Brabantsche_Compagnie "Brabantsche Compagnie") [Dutch East India Company](https://en.wikipedia.org/wiki/Dutch_East_India_Company "Dutch East India Company") [Imperial Company of Trieste and Antwerp](https://en.wikipedia.org/wiki/Austrian_East_India_Company "Austrian East India Company") [Imperial Privileged Oriental Company](https://en.wikipedia.org/wiki/Imperial_Privileged_Oriental_Company "Imperial Privileged Oriental Company") [New Netherland Company](https://en.wikipedia.org/wiki/New_Netherland_Company "New Netherland Company") [Noordsche Compagnie](https://en.wikipedia.org/wiki/Noordsche_Compagnie "Noordsche Compagnie") [Ostend Company](https://en.wikipedia.org/wiki/Ostend_Company "Ostend Company") [Dutch West India Company](https://en.wikipedia.org/wiki/Dutch_West_India_Company "Dutch West India Company") [Compagnie van Verre](https://en.wikipedia.org/wiki/Compagnie_van_Verre "Compagnie van Verre") [Compagnie van De Moucheron](https://en.wikipedia.org/wiki/Compagnie_van_De_Moucheron "Compagnie van De Moucheron") [Veerse Compagnie](https://en.wikipedia.org/wiki/Veerse_Compagnie "Veerse Compagnie") \| \| Spanish \| [Adelantamientos](https://en.wikipedia.org/wiki/Adelantado "Adelantado") [Columbian Adelantamiento](https://en.wikipedia.org/wiki/Columbian_Viceroyalty "Columbian Viceroyalty") [Peruvian Adelantamientos' Charters](https://en.wikipedia.org/wiki/Capitulations_of_1534 "Capitulations of 1534") [New Andalusia](https://en.wikipedia.org/wiki/Governorate_of_New_Andalusia "Governorate of New Andalusia") [New Castile](https://en.wikipedia.org/wiki/Governorate_of_New_Castile "Governorate of New Castile") [New León](https://en.wikipedia.org/wiki/Governorate_of_New_Le%C3%B3n "Governorate of New León") [New Toledo](https://en.wikipedia.org/wiki/Governorate_of_New_Toledo "Governorate of New Toledo") [Terra Australis](https://en.wikipedia.org/wiki/Governorate_of_Terra_Australis "Governorate of Terra Australis") [Barcelona Trading Company](https://en.wikipedia.org/wiki/Barcelona_Trading_Company "Barcelona Trading Company") [Casa de Contratación](https://en.wikipedia.org/wiki/Casa_de_Contrataci%C3%B3n "Casa de Contratación") [Guipuzcoan Company of Caracas](https://en.wikipedia.org/wiki/Guipuzcoan_Company_of_Caracas "Guipuzcoan Company of Caracas") [Royal Company of the Philippines](https://en.wikipedia.org/wiki/Royal_Company_of_the_Philippines "Royal Company of the Philippines") [Welser's Klein-Venedig Charter](https://en.wikipedia.org/wiki/Klein-Venedig "Klein-Venedig") \| \| Swedish \| [Swedish Africa Company](https://en.wikipedia.org/wiki/Swedish_Africa_Company "Swedish Africa Company") [Swedish East India Company](https://en.wikipedia.org/wiki/Swedish_East_India_Company "Swedish East India Company") [Swedish Levant Company](https://en.wikipedia.org/wiki/Swedish_Levant_Company "Swedish Levant Company") [Swedish South Company](https://en.wikipedia.org/wiki/Swedish_South_Company "Swedish South Company") [Swedish West India Company](https://en.wikipedia.org/wiki/Swedish_West_India_Company "Swedish West India Company") \| \| Danish \| [Danish Asiatic Company](https://en.wikipedia.org/wiki/Danish_Asiatic_Company "Danish Asiatic Company") [Danish East India Company](https://en.wikipedia.org/wiki/Danish_East_India_Company "Danish East India Company") [Danish West India Company](https://en.wikipedia.org/wiki/Danish_West_India_Company "Danish West India Company") [Royal Greenland Trading Department](https://en.wikipedia.org/wiki/Royal_Greenland_Trading_Department "Royal Greenland Trading Department") \| \| Russian \| [Russian-American Company](https://en.wikipedia.org/wiki/Russian-American_Company "Russian-American Company") \| \| American \| [American Trading Company of Borneo](https://en.wikipedia.org/wiki/American_Trading_Company_of_Borneo "American Trading Company of Borneo") \| \| ![](https://upload.wikimedia.org/wikipedia/en/thumb/9/96/Symbol_category_class.svg/20px-Symbol_category_class.svg.png) [Category](https://en.wikipedia.org/wiki/Category:Chartered_companies "Category:Chartered companies") \| \| \| [v](https://en.wikipedia.org/wiki/Template:Financial_bubbles "Template:Financial bubbles") [t](https://en.wikipedia.org/wiki/Template_talk:Financial_bubbles "Template talk:Financial bubbles") [e](https://en.wikipedia.org/wiki/Special:EditPage/Template:Financial_bubbles "Special:EditPage/Template:Financial bubbles")[Financial bubbles](https://en.wikipedia.org/wiki/Economic_bubble "Economic bubble") \| \| \|---\|---\| \| [Market trend](https://en.wikipedia.org/wiki/Market_trend "Market trend") [Credit cycle](https://en.wikipedia.org/wiki/Credit_cycle "Credit cycle") [Irrational exuberance](https://en.wikipedia.org/wiki/Irrational_exuberance "Irrational exuberance") [Social contagion](https://en.wikipedia.org/wiki/Social_contagion "Social contagion") [Real-estate bubble](https://en.wikipedia.org/wiki/Real-estate_bubble "Real-estate bubble") [Stock market bubble](https://en.wikipedia.org/wiki/Stock_market_bubble "Stock market bubble") \| \| \| [Commercial revolution](https://en.wikipedia.org/wiki/Commercial_revolution "Commercial revolution") (1000–1760) \| [Tulip mania](https://en.wikipedia.org/wiki/Tulip_mania "Tulip mania") (1634–1637) [Mississippi bubble](https://en.wikipedia.org/wiki/John_Law%27s_Company "John Law's Company") (1684–1720) [South Sea bubble]() (1711–1720) [Bengal Bubble of 1769](https://en.wikipedia.org/wiki/Bengal_Bubble_of_1769 "Bengal Bubble of 1769") (1757–1769) \| \| [1st Industrial Revolution](https://en.wikipedia.org/wiki/Industrial_Revolution "Industrial Revolution") (1760–1840) \| [Canal Mania](https://en.wikipedia.org/wiki/Canal_Mania "Canal Mania") (c. 1790–c. 1810) [Carolina gold rush](https://en.wikipedia.org/wiki/Carolina_gold_rush "Carolina gold rush") (1802–1825) [1810s Alabama real estate bubble](https://en.wikipedia.org/wiki/Alabama_real_estate_bubble_of_the_1810s "Alabama real estate bubble of the 1810s") [Georgia Gold Rush](https://en.wikipedia.org/wiki/Georgia_Gold_Rush "Georgia Gold Rush") (1828–c. 1840) [1830s Chicago real estate bubble](https://en.wikipedia.org/wiki/Chicago_real_estate_bubble_of_the_1830s "Chicago real estate bubble of the 1830s") [Chilean silver rush](https://en.wikipedia.org/wiki/Chilean_silver_rush "Chilean silver rush") (1832–1850) \| \| 1840–1870 \| [Railway Mania](https://en.wikipedia.org/wiki/Railway_Mania "Railway Mania") (c. 1840–c. 1850) [California gold rush](https://en.wikipedia.org/wiki/California_gold_rush "California gold rush") (1848–1855) [Queen Charlottes Gold Rush](https://en.wikipedia.org/wiki/Queen_Charlottes_Gold_Rush "Queen Charlottes Gold Rush") (1851) [Victorian gold rush](https://en.wikipedia.org/wiki/Victorian_gold_rush "Victorian gold rush") (1851–c. 1870) [New South Wales gold rush](https://en.wikipedia.org/wiki/New_South_Wales_gold_rush "New South Wales gold rush") (1851–1880) [Australian gold rushes](https://en.wikipedia.org/wiki/Australian_gold_rushes "Australian gold rushes") (1851–1914) [Fraser Canyon Gold Rush](https://en.wikipedia.org/wiki/Fraser_Canyon_Gold_Rush "Fraser Canyon Gold Rush") (1858) [Pike's Peak gold rush](https://en.wikipedia.org/wiki/Pike%27s_Peak_gold_rush "Pike's Peak gold rush") (1858–1861) [Rock Creek Gold Rush](https://en.wikipedia.org/wiki/Rock_Creek_Gold_Rush "Rock Creek Gold Rush") (1859) [Pennsylvania oil rush](https://en.wikipedia.org/wiki/Pennsylvania_oil_rush "Pennsylvania oil rush") (1859–1891) [Similkameen Gold Rush](https://en.wikipedia.org/wiki/Similkameen_Gold_Rush "Similkameen Gold Rush") (1860) [Stikine Gold Rush](https://en.wikipedia.org/wiki/Stikine_Gold_Rush "Stikine Gold Rush") (1861) [Colorado River mining boom](https://en.wikipedia.org/wiki/Steamboats_of_the_Colorado_River "Steamboats of the Colorado River") (1861–1864) [Otago gold rush](https://en.wikipedia.org/wiki/Otago_gold_rush "Otago gold rush") (1861–1864) [Cariboo Gold Rush](https://en.wikipedia.org/wiki/Cariboo_Gold_Rush "Cariboo Gold Rush") (1861–1867) [First Nova Scotia Gold Rush](https://en.wikipedia.org/wiki/Gold_mining_in_Nova_Scotia "Gold mining in Nova Scotia") (1861–1874) [West Coast gold rush](https://en.wikipedia.org/wiki/West_Coast_gold_rush "West Coast gold rush") (1864–1867) [Big Bend Gold Rush](https://en.wikipedia.org/wiki/Big_Bend_Gold_Rush "Big Bend Gold Rush") (c. 1865) [Vermilion Lake gold rush](https://en.wikipedia.org/wiki/Vermilion_Lake_gold_rush "Vermilion Lake gold rush") (1865–1867) [Kildonan Gold Rush](https://en.wikipedia.org/wiki/Kildonan_Gold_Rush "Kildonan Gold Rush") (1869) [Omineca Gold Rush](https://en.wikipedia.org/wiki/Omineca_Gold_Rush "Omineca Gold Rush") (1869) \| \| [2nd Industrial Revolution](https://en.wikipedia.org/wiki/Second_Industrial_Revolution "Second Industrial Revolution") (1870–1914) \| [1870s Lapland gold rush](https://en.wikipedia.org/wiki/Lapland_gold_rush "Lapland gold rush") [Coromandel Gold Rushes](https://en.wikipedia.org/wiki/Coromandel_Gold_Rushes "Coromandel Gold Rushes") (c. 1870–c. 1890) [Cassiar Gold Rush](https://en.wikipedia.org/wiki/Cassiar_Country "Cassiar Country") (c. 1870–c. 1890) [Black Hills gold rush](https://en.wikipedia.org/wiki/Black_Hills_gold_rush "Black Hills gold rush") (1874–1880) [Colorado Silver Boom](https://en.wikipedia.org/wiki/Colorado_Silver_Boom "Colorado Silver Boom") (1879–1893) [Western Australian gold rushes](https://en.wikipedia.org/wiki/Western_Australian_gold_rushes "Western Australian gold rushes") (c. 1880–c. 1900) [Indiana gas boom](https://en.wikipedia.org/wiki/Indiana_gas_boom "Indiana gas boom") (c. 1880–1903) [Ohio oil rush](https://en.wikipedia.org/wiki/Petroleum_industry_in_Ohio "Petroleum industry in Ohio") (c. 1880–c. 1930) [Tierra del Fuego gold rush](https://en.wikipedia.org/wiki/Tierra_del_Fuego_gold_rush "Tierra del Fuego gold rush") (1883–1906) [Cayoosh Gold Rush](https://en.wikipedia.org/wiki/Cayoosh_Gold_Rush "Cayoosh Gold Rush") (1884) [Witwatersrand Gold Rush](https://en.wikipedia.org/wiki/Witwatersrand_Gold_Rush "Witwatersrand Gold Rush") (1886) [Encilhamento](https://en.wikipedia.org/wiki/Encilhamento "Encilhamento") (1886–1890) [Cripple Creek Gold Rush](https://en.wikipedia.org/wiki/Cripple_Creek_Gold_Rush "Cripple Creek Gold Rush") (c. 1890–c. 1910) [Klondike Gold Rush](https://en.wikipedia.org/wiki/Klondike_Gold_Rush "Klondike Gold Rush") (1896–1899) [Second Nova Scotia Gold Rush](https://en.wikipedia.org/wiki/Gold_mining_in_Nova_Scotia "Gold mining in Nova Scotia") (1896–1903) [Kobuk River Stampede](https://en.wikipedia.org/wiki/Kobuk_River_Stampede "Kobuk River Stampede") (1897–1899) [Mount Baker gold rush](https://en.wikipedia.org/wiki/Mount_Baker_gold_rush "Mount Baker gold rush") (1897–c. 1925) [Nome Gold Rush](https://en.wikipedia.org/wiki/Nome_Gold_Rush "Nome Gold Rush") (1899–1909) [Fairbanks Gold Rush](https://en.wikipedia.org/wiki/Fairbanks_Gold_Rush "Fairbanks Gold Rush") (c. 1900–1918) [Texas oil boom](https://en.wikipedia.org/wiki/Texas_oil_boom "Texas oil boom") (1901–1918) [Cobalt silver rush](https://en.wikipedia.org/wiki/Cobalt_silver_rush "Cobalt silver rush") (1903–1918) [Porcupine Gold Rush](https://en.wikipedia.org/wiki/Porcupine_Gold_Rush "Porcupine Gold Rush") (1909–1918) \| \| [Interwar period](https://en.wikipedia.org/wiki/Interwar_period "Interwar period") (1918–1939) \| [1920s Florida land boom](https://en.wikipedia.org/wiki/1920s_Florida_land_boom "1920s Florida land boom") (c. 1920–1925) [Fairbanks Gold Rush](https://en.wikipedia.org/wiki/Fairbanks_Gold_Rush "Fairbanks Gold Rush") (1918–c. 1930) [Texas oil boom](https://en.wikipedia.org/wiki/Texas_oil_boom "Texas oil boom") (1918–1945) [Cobalt silver rush](https://en.wikipedia.org/wiki/Cobalt_silver_rush "Cobalt silver rush") (1918–c. 1930) [Porcupine Gold Rush](https://en.wikipedia.org/wiki/Porcupine_Gold_Rush "Porcupine Gold Rush") (1918–1945) [1930s Kakamega gold rush](https://en.wikipedia.org/wiki/Kakamega_gold_rush "Kakamega gold rush") [Third Nova Scotia Gold Rush](https://en.wikipedia.org/wiki/Gold_mining_in_Nova_Scotia "Gold mining in Nova Scotia") (1932–1942) \| \| [Post–WWII expansion](https://en.wikipedia.org/wiki/Post%E2%80%93World_War_II_economic_expansion "Post–World War II economic expansion") (1945–1973) \| [Texas oil boom](https://en.wikipedia.org/wiki/Texas_oil_boom "Texas oil boom") (1945–c. 1950) [Porcupine Gold Rush](https://en.wikipedia.org/wiki/Porcupine_Gold_Rush "Porcupine Gold Rush") (1945–c. 1960) [Poseidon bubble](https://en.wikipedia.org/wiki/Poseidon_bubble "Poseidon bubble") (1969–1970) \| \| [The Great Inflation](https://en.wikipedia.org/wiki/Stagflation "Stagflation") (1973–1982) \| [1970s commodities boom](https://en.wikipedia.org/wiki/1970s_commodities_boom "1970s commodities boom") [Mexican oil boom](https://en.wikipedia.org/wiki/Mexican_oil_boom "Mexican oil boom") (1977–1981) [Silver Thursday](https://en.wikipedia.org/wiki/Silver_Thursday "Silver Thursday") (1980) [New Zealand property bubble](https://en.wikipedia.org/wiki/New_Zealand_property_bubble "New Zealand property bubble") (c. 1980–1982) \| \| [Great Moderation](https://en.wikipedia.org/wiki/Great_Moderation "Great Moderation")/ Great Regression (1982–2007) \| [1980s oil glut](https://en.wikipedia.org/wiki/1980s_oil_glut "1980s oil glut") [New Zealand property bubble](https://en.wikipedia.org/wiki/New_Zealand_property_bubble "New Zealand property bubble") (1982–) [Spanish property bubble](https://en.wikipedia.org/wiki/Spanish_property_bubble "Spanish property bubble") (1985–2008) [Japanese asset price bubble](https://en.wikipedia.org/wiki/Japanese_asset_price_bubble "Japanese asset price bubble") (1986–1990) [Dot-com bubble](https://en.wikipedia.org/wiki/Dot-com_bubble "Dot-com bubble") (1995–2000) [Baltic states housing bubble](https://en.wikipedia.org/wiki/Baltic_states_housing_bubble "Baltic states housing bubble") (2000–2006) [Irish property bubble](https://en.wikipedia.org/wiki/Irish_property_bubble "Irish property bubble") (c. 2000–2007) [2000s commodities boom](https://en.wikipedia.org/wiki/2000s_commodities_boom "2000s commodities boom") (2000–2008) [2000s Danish property bubble](https://en.wikipedia.org/wiki/Danish_property_bubble_of_2000s "Danish property bubble of 2000s") (2001–2006) [United States housing bubble](https://en.wikipedia.org/wiki/2000s_United_States_housing_bubble "2000s United States housing bubble") (2002–2006) [Romanian property bubble](https://en.wikipedia.org/wiki/Romanian_property_bubble "Romanian property bubble") (2002–2007) [Polish property bubble](https://en.wikipedia.org/wiki/Polish_property_bubble "Polish property bubble") (2002–2008) [Canadian property bubble](https://en.wikipedia.org/wiki/Canadian_property_bubble "Canadian property bubble") (2002–) [Chinese property bubble](https://en.wikipedia.org/wiki/Chinese_property_bubble_\(2005%E2%80%932011\) "Chinese property bubble (2005–2011)") (2005–2011) [Lebanese housing bubble](https://en.wikipedia.org/wiki/Lebanese_housing_bubble "Lebanese housing bubble") (2005–2008) [Chinese stock bubble of 2007](https://en.wikipedia.org/wiki/Chinese_stock_bubble_of_2007 "Chinese stock bubble of 2007") [Uranium bubble of 2007](https://en.wikipedia.org/wiki/Uranium_bubble_of_2007 "Uranium bubble of 2007") \| \| [Information Age](https://en.wikipedia.org/wiki/Information_Age "Information Age") (2007–present) \| [2000s commodities boom](https://en.wikipedia.org/wiki/2000s_commodities_boom "2000s commodities boom") (2008–2014) [Lebanese housing bubble](https://en.wikipedia.org/wiki/Lebanese_housing_bubble "Lebanese housing bubble") (2008–) [Corporate debt bubble](https://en.wikipedia.org/wiki/Corporate_debt_bubble "Corporate debt bubble") (2008–) [Australian property bubble](https://en.wikipedia.org/wiki/Australian_property_bubble "Australian property bubble") (2010–) [Cryptocurrency bubble](https://en.wikipedia.org/wiki/Cryptocurrency_bubble "Cryptocurrency bubble") (2011–) [Everything bubble](https://en.wikipedia.org/wiki/Everything_bubble "Everything bubble") (2020–21) [AI bubble](https://en.wikipedia.org/wiki/AI_bubble "AI bubble") (2022–) \| \| [Carbon bubble](https://en.wikipedia.org/wiki/Carbon_bubble "Carbon bubble") [Green bubble](https://en.wikipedia.org/wiki/Green_bubble "Green bubble") [Social media stock bubble](https://en.wikipedia.org/wiki/Social_media_stock_bubble "Social media stock bubble") [Unicorn bubble](https://en.wikipedia.org/wiki/Unicorn_bubble "Unicorn bubble") [U.S. higher education bubble](https://en.wikipedia.org/wiki/Higher_education_bubble_in_the_United_States "Higher education bubble in the United States") \| \| \| [v](https://en.wikipedia.org/wiki/Template:Financial_crises "Template:Financial crises") [t](https://en.wikipedia.org/wiki/Template_talk:Financial_crises "Template talk:Financial crises") [e](https://en.wikipedia.org/wiki/Special:EditPage/Template:Financial_crises "Special:EditPage/Template:Financial crises")[Financial crises](https://en.wikipedia.org/wiki/Financial_crisis "Financial crisis") \| \| \|---\|---\| \| [Bank run](https://en.wikipedia.org/wiki/Bank_run "Bank run") [Commodity price shocks](https://en.wikipedia.org/wiki/Commodity_price_shocks "Commodity price shocks") [Credit crunch](https://en.wikipedia.org/wiki/Credit_crunch "Credit crunch") [Credit cycle](https://en.wikipedia.org/wiki/Credit_cycle "Credit cycle") [Currency crisis](https://en.wikipedia.org/wiki/Currency_crisis "Currency crisis") [Debt crisis](https://en.wikipedia.org/wiki/Debt_crisis "Debt crisis") [Energy crisis](https://en.wikipedia.org/wiki/Energy_crisis "Energy crisis") [Financial contagion](https://en.wikipedia.org/wiki/Financial_contagion "Financial contagion") [Social contagion](https://en.wikipedia.org/wiki/Social_contagion "Social contagion") [Flash crash](https://en.wikipedia.org/wiki/Flash_crash "Flash crash") [Hyperinflation](https://en.wikipedia.org/wiki/Hyperinflation "Hyperinflation") [Liquidity crisis](https://en.wikipedia.org/wiki/Liquidity_crisis "Liquidity crisis") [Accounting](https://en.wikipedia.org/wiki/Accounting_liquidity "Accounting liquidity") [Capital](https://en.wikipedia.org/wiki/Liquid_capital "Liquid capital") [Funding](https://en.wikipedia.org/wiki/Funding_liquidity "Funding liquidity") [Market](https://en.wikipedia.org/wiki/Market_liquidity "Market liquidity") [Minsky moment](https://en.wikipedia.org/wiki/Minsky_moment "Minsky moment") [Social crisis](https://en.wikipedia.org/wiki/Social_crisis "Social crisis") [Stock market crash](https://en.wikipedia.org/wiki/Stock_market_crash "Stock market crash") \| \| \| Pre-[1000](https://en.wikipedia.org/wiki/Commercial_revolution "Commercial revolution") \| [Financial crisis of 33 CE](https://en.wikipedia.org/wiki/Financial_crisis_of_33 "Financial crisis of 33") [Crisis of the Third Century](https://en.wikipedia.org/wiki/Crisis_of_the_Third_Century "Crisis of the Third Century") (235–284 CE) \| \| [Commercial revolution](https://en.wikipedia.org/wiki/Commercial_revolution "Commercial revolution") (1000–1760) \| [Great Bullion Famine](https://en.wikipedia.org/wiki/Great_Bullion_Famine "Great Bullion Famine") (c. 1400–c. 1500) [The Great Debasement](https://en.wikipedia.org/wiki/The_Great_Debasement "The Great Debasement") (1544–1551) [Spanish Price Revolution](https://en.wikipedia.org/wiki/Price_revolution "Price revolution") (c. 1550–c. 1650) [Dutch Republic stock market crashes](https://en.wikipedia.org/wiki/Financial_history_of_the_Dutch_Republic "Financial history of the Dutch Republic") (c. 1600–1760) [Kipper und Wipper](https://en.wikipedia.org/wiki/Kipper_und_Wipper "Kipper und Wipper") (1621–1623) [Tulip mania](https://en.wikipedia.org/wiki/Tulip_mania "Tulip mania") (1637) [South Sea bubble]() (1720) [Mississippi bubble](https://en.wikipedia.org/wiki/John_Law%27s_Company "John Law's Company") (1720) \| \| [1st Industrial Revolution](https://en.wikipedia.org/wiki/Industrial_Revolution "Industrial Revolution") (1760–1840) \| [Amsterdam banking crisis of 1763](https://en.wikipedia.org/wiki/Amsterdam_banking_crisis_of_1763 "Amsterdam banking crisis of 1763") [Bengal Bubble of 1769](https://en.wikipedia.org/wiki/Bengal_Bubble_of_1769 "Bengal Bubble of 1769") (1769–1784) [British credit crisis of 1772–1773](https://en.wikipedia.org/wiki/British_credit_crisis_of_1772%E2%80%931773 "British credit crisis of 1772–1773") [Dutch Republic financial collapse](https://en.wikipedia.org/wiki/Financial_history_of_the_Dutch_Republic "Financial history of the Dutch Republic") (c. 1780–1795) [Copper Panic of 1789](https://en.wikipedia.org/wiki/Copper_Panic_of_1789 "Copper Panic of 1789") [Panic of 1792](https://en.wikipedia.org/wiki/Panic_of_1792 "Panic of 1792") [Panic of 1796–1797](https://en.wikipedia.org/wiki/Panic_of_1796%E2%80%931797 "Panic of 1796–1797") [Danish state bankruptcy of 1813](https://en.wikipedia.org/wiki/Danish_state_bankruptcy_of_1813 "Danish state bankruptcy of 1813") [Post-Napoleonic Irish grain price and land use shocks](https://en.wikipedia.org/wiki/Commodity_price_shocks "Commodity price shocks") (1815–1816) [Panic of 1819](https://en.wikipedia.org/wiki/Panic_of_1819 "Panic of 1819") [Panic of 1825](https://en.wikipedia.org/wiki/Panic_of_1825 "Panic of 1825") [Panic of 1837](https://en.wikipedia.org/wiki/Panic_of_1837 "Panic of 1837") \| \| 1840–1870 \| [European potato failure](https://en.wikipedia.org/wiki/European_potato_failure "European potato failure") (1845–1856) [Great Irish Famine](https://en.wikipedia.org/wiki/Great_Famine_\(Ireland\) "Great Famine (Ireland)") [Highland Potato Famine](https://en.wikipedia.org/wiki/Highland_Potato_Famine "Highland Potato Famine") [Panic of 1847](https://en.wikipedia.org/wiki/Panic_of_1847 "Panic of 1847") [Panic of 1857](https://en.wikipedia.org/wiki/Panic_of_1857 "Panic of 1857") [Panic of 1866](https://en.wikipedia.org/wiki/Panic_of_1866 "Panic of 1866") [Black Friday](https://en.wikipedia.org/wiki/Black_Friday_\(1869\) "Black Friday (1869)") (1869) \| \| [2nd Industrial Revolution](https://en.wikipedia.org/wiki/Second_Industrial_Revolution "Second Industrial Revolution") (1870–1914) \| [Panic of 1873](https://en.wikipedia.org/wiki/Panic_of_1873 "Panic of 1873") [Paris Bourse crash of 1882](https://en.wikipedia.org/wiki/Paris_Bourse_crash_of_1882 "Paris Bourse crash of 1882") [Panic of 1884](https://en.wikipedia.org/wiki/Panic_of_1884 "Panic of 1884") [Arendal crash](https://en.wikipedia.org/wiki/Arendal_crash "Arendal crash") (1886) [Baring crisis](https://en.wikipedia.org/wiki/Baring_crisis "Baring crisis") (1890) [Encilhamento](https://en.wikipedia.org/wiki/Encilhamento "Encilhamento") (1890–1893) [Panic of 1893](https://en.wikipedia.org/wiki/Panic_of_1893 "Panic of 1893") [Australian banking crisis of 1893](https://en.wikipedia.org/wiki/Australian_banking_crisis_of_1893 "Australian banking crisis of 1893") [Black Monday](https://en.wikipedia.org/wiki/Black_Monday_\(1894\) "Black Monday (1894)") (1894) [Panic of 1896](https://en.wikipedia.org/wiki/Panic_of_1896 "Panic of 1896") [Panic of 1901](https://en.wikipedia.org/wiki/Panic_of_1901 "Panic of 1901") [Panic of 1907](https://en.wikipedia.org/wiki/Panic_of_1907 "Panic of 1907") [Shanghai rubber stock market crisis](https://en.wikipedia.org/wiki/Shanghai_rubber_stock_market_crisis "Shanghai rubber stock market crisis") (1910) [Panic of 1910–11](https://en.wikipedia.org/wiki/Panic_of_1910%E2%80%9311 "Panic of 1910–11") [Financial crisis of 1914](https://en.wikipedia.org/wiki/Financial_crisis_of_1914 "Financial crisis of 1914") \| \| [Interwar period](https://en.wikipedia.org/wiki/Interwar_period "Interwar period") (1918–1939) \| [Early Soviet hyperinflation](https://en.wikipedia.org/wiki/Hyperinflation_in_early_Soviet_Russia "Hyperinflation in early Soviet Russia") (1917–1924) [Weimar Republic hyperinflation](https://en.wikipedia.org/wiki/Hyperinflation_in_the_Weimar_Republic "Hyperinflation in the Weimar Republic") (1921–1923) [Shōwa financial crisis](https://en.wikipedia.org/wiki/Sh%C5%8Dwa_financial_crisis "Shōwa financial crisis") (1927) [Wall Street crash of 1929](https://en.wikipedia.org/wiki/Wall_Street_crash_of_1929 "Wall Street crash of 1929") [Panic of 1930](https://en.wikipedia.org/wiki/Panic_of_1930 "Panic of 1930") [Chinese hyperinflation](https://en.wikipedia.org/wiki/Chinese_hyperinflation "Chinese hyperinflation") (1937–1950) \| \| [Wartime period](https://en.wikipedia.org/wiki/World_War_II "World War II") (1939–1945) \| [Greek hyperinflation](https://en.wikipedia.org/wiki/Hyperinflation_in_Greece "Hyperinflation in Greece") (1941–1946) [Chinese hyperinflation](https://en.wikipedia.org/wiki/Chinese_hyperinflation "Chinese hyperinflation") (1937–1950) \| \| [Post–WWII expansion](https://en.wikipedia.org/wiki/Post%E2%80%93World_War_II_economic_expansion "Post–World War II economic expansion") (1945–1973) \| [Hungarian pengő hyperinflation](https://en.wikipedia.org/wiki/Hungarian_peng%C5%91#Hyperinflation "Hungarian pengő") (1945–1946) [Kennedy Slide of 1962](https://en.wikipedia.org/wiki/Kennedy_Slide_of_1962 "Kennedy Slide of 1962") [1963–1965 Indonesian hyperinflation](https://en.wikipedia.org/w/index.php?title=1963%E2%80%931965_Indonesian_hyperinflation&action=edit&redlink=1 "1963–1965 Indonesian hyperinflation (page does not exist)") [Chinese hyperinflation](https://en.wikipedia.org/wiki/Chinese_hyperinflation "Chinese hyperinflation") (1937–1950) \| \| [Great Inflation](https://en.wikipedia.org/wiki/Stagflation "Stagflation") (1973–1982) \| [1970s energy crisis](https://en.wikipedia.org/wiki/1970s_energy_crisis "1970s energy crisis") (1973–1980) [1973 oil crisis](https://en.wikipedia.org/wiki/1973_oil_crisis "1973 oil crisis") [1973–1974 stock market crash](https://en.wikipedia.org/wiki/1973%E2%80%931974_stock_market_crash "1973–1974 stock market crash") [Secondary banking crisis of 1973–1975](https://en.wikipedia.org/wiki/Secondary_banking_crisis_of_1973%E2%80%931975 "Secondary banking crisis of 1973–1975") [Steel crisis](https://en.wikipedia.org/wiki/Steel_crisis "Steel crisis") (1973–1982) [Latin American debt crisis](https://en.wikipedia.org/wiki/Latin_American_debt_crisis "Latin American debt crisis") (1975–1982) [1976 sterling crisis](https://en.wikipedia.org/wiki/1976_sterling_crisis "1976 sterling crisis") [1979 oil crisis](https://en.wikipedia.org/wiki/1979_oil_crisis "1979 oil crisis") [Brazilian hyperinflation](https://en.wikipedia.org/wiki/Hyperinflation_in_Brazil "Hyperinflation in Brazil") (1980–1982) \| \| [Great Moderation](https://en.wikipedia.org/wiki/Great_Moderation "Great Moderation")/ Great Regression (1982–2007) \| [Brazilian hyperinflation](https://en.wikipedia.org/wiki/Hyperinflation_in_Brazil "Hyperinflation in Brazil") (1982–1994) [Souk Al-Manakh stock market crash](https://en.wikipedia.org/wiki/Souk_Al-Manakh_stock_market_crash "Souk Al-Manakh stock market crash") (1982) [Chilean crisis of 1982](https://en.wikipedia.org/wiki/Crisis_of_1982 "Crisis of 1982") [1983 Israel bank stock crisis](https://en.wikipedia.org/wiki/1983_Israel_bank_stock_crisis "1983 Israel bank stock crisis") [Black Saturday (1983)](https://en.wikipedia.org/wiki/Black_Saturday_\(1983\) "Black Saturday (1983)") [Savings and loan crisis](https://en.wikipedia.org/wiki/Savings_and_loan_crisis "Savings and loan crisis") (1986–1995) [Cameroonian economic crisis](https://en.wikipedia.org/wiki/Cameroonian_economic_crisis "Cameroonian economic crisis") (1987–2000s) [Black Monday (1987)](https://en.wikipedia.org/wiki/Black_Monday_\(1987\) "Black Monday (1987)") [1988–1992 Norwegian banking crisis](https://en.wikipedia.org/wiki/1988%E2%80%931992_Norwegian_banking_crisis "1988–1992 Norwegian banking crisis") [Japanese asset price bubble crash](https://en.wikipedia.org/wiki/Japanese_asset_price_bubble "Japanese asset price bubble") (1990–1992) [Rhode Island banking crisis](https://en.wikipedia.org/wiki/Rhode_Island_banking_crisis "Rhode Island banking crisis") (1990–1992) [1991 Indian economic crisis](https://en.wikipedia.org/wiki/1991_Indian_economic_crisis "1991 Indian economic crisis") [1990–1994 Swedish financial crisis](https://en.wikipedia.org/wiki/1990%E2%80%931994_Swedish_financial_crisis "1990–1994 Swedish financial crisis") [1990s Finnish banking crisis](https://en.wikipedia.org/wiki/1990s_Finnish_banking_crisis "1990s Finnish banking crisis") [1990s Armenian energy crisis](https://en.wikipedia.org/wiki/1990s_Armenian_energy_crisis "1990s Armenian energy crisis") [Cuban Special Period](https://en.wikipedia.org/wiki/Special_Period "Special Period") (1991–2000) [Black Wednesday (1992 Sterling crisis)](https://en.wikipedia.org/wiki/Black_Wednesday "Black Wednesday") [Hyperinflation in Serbia and Montenegro](https://en.wikipedia.org/wiki/Hyperinflation_in_Serbia_and_Montenegro "Hyperinflation in Serbia and Montenegro") (1992–1994) [1994 bond market crisis](https://en.wikipedia.org/wiki/1994_bond_market_crisis "1994 bond market crisis") [Venezuelan banking crisis of 1994](https://en.wikipedia.org/wiki/Venezuelan_banking_crisis_of_1994 "Venezuelan banking crisis of 1994") [1994 Papua New Guinea financial crisis](https://en.wikipedia.org/wiki/1994_Papua_New_Guinea_financial_crisis "1994 Papua New Guinea financial crisis") [Mexican peso crisis](https://en.wikipedia.org/wiki/Mexican_peso_crisis "Mexican peso crisis") (1994–1996) [1997 Asian financial crisis](https://en.wikipedia.org/wiki/1997_Asian_financial_crisis "1997 Asian financial crisis") [October 27, 1997, mini-crash](https://en.wikipedia.org/wiki/October_27,_1997,_mini-crash "October 27, 1997, mini-crash") [1998 Russian financial crisis](https://en.wikipedia.org/wiki/1998_Russian_financial_crisis "1998 Russian financial crisis") [1998–1999 Ecuador economic crisis](https://en.wikipedia.org/wiki/1998%E2%80%931999_Ecuador_economic_crisis "1998–1999 Ecuador economic crisis") [1998–2002 Argentine great depression](https://en.wikipedia.org/wiki/1998%E2%80%932002_Argentine_great_depression "1998–2002 Argentine great depression") [Samba effect](https://en.wikipedia.org/wiki/Samba_effect "Samba effect") (1999) [Dot-com bubble](https://en.wikipedia.org/wiki/Dot-com_bubble "Dot-com bubble") (2000–2004) [9/11 stock market crash](https://en.wikipedia.org/wiki/Economic_effects_of_the_September_11_attacks "Economic effects of the September 11 attacks") (2001) [2001 Turkish economic crisis](https://en.wikipedia.org/wiki/2001_Turkish_economic_crisis "2001 Turkish economic crisis") [South American economic crisis of 2002](https://en.wikipedia.org/wiki/South_American_economic_crisis_of_2002 "South American economic crisis of 2002") [Stock market downturn of 2002](https://en.wikipedia.org/wiki/Stock_market_downturn_of_2002 "Stock market downturn of 2002") [2002 Uruguay banking crisis](https://en.wikipedia.org/wiki/2002_Uruguay_banking_crisis "2002 Uruguay banking crisis") [2003 Myanmar banking crisis](https://en.wikipedia.org/wiki/2003_Myanmar_banking_crisis "2003 Myanmar banking crisis") [2000s energy crisis](https://en.wikipedia.org/wiki/2000s_energy_crisis "2000s energy crisis") (2003–2008) [2004 Argentine energy crisis](https://en.wikipedia.org/wiki/2004_Argentine_energy_crisis "2004 Argentine energy crisis") [Chinese stock bubble of 2007](https://en.wikipedia.org/wiki/Chinese_stock_bubble_of_2007 "Chinese stock bubble of 2007") [Hyperinflation in Zimbabwe](https://en.wikipedia.org/wiki/Hyperinflation_in_Zimbabwe "Hyperinflation in Zimbabwe") (2007–present) \| \| [Great Recession](https://en.wikipedia.org/wiki/Great_Recession "Great Recession") (2007–2009) \| [2008 financial crisis](https://en.wikipedia.org/wiki/2008_financial_crisis "2008 financial crisis") [September 2008](https://en.wikipedia.org/wiki/Global_financial_crisis_in_September_2008 "Global financial crisis in September 2008") [October 2008](https://en.wikipedia.org/wiki/Global_financial_crisis_in_October_2008 "Global financial crisis in October 2008") [November 2008](https://en.wikipedia.org/wiki/Global_financial_crisis_in_November_2008 "Global financial crisis in November 2008") [December 2008](https://en.wikipedia.org/wiki/Global_financial_crisis_in_December_2008 "Global financial crisis in December 2008") [2009](https://en.wikipedia.org/wiki/Global_financial_crisis_in_2009 "Global financial crisis in 2009") [Subprime mortgage crisis](https://en.wikipedia.org/wiki/Subprime_mortgage_crisis "Subprime mortgage crisis") [2000s U.S. housing market correction](https://en.wikipedia.org/wiki/2000s_United_States_housing_market_correction "2000s United States housing market correction") [U.S. bear market of 2007–2009](https://en.wikipedia.org/wiki/United_States_bear_market_of_2007%E2%80%932009 "United States bear market of 2007–2009") [2008 Latvian financial crisis](https://en.wikipedia.org/wiki/2008_Latvian_financial_crisis "2008 Latvian financial crisis") [2008–2009 Belgian financial crisis](https://en.wikipedia.org/wiki/2008%E2%80%932009_Belgian_financial_crisis "2008–2009 Belgian financial crisis") [Great Recession in Russia](https://en.wikipedia.org/wiki/Great_Recession_in_Russia "Great Recession in Russia") [2008–2009 Ukrainian financial crisis](https://en.wikipedia.org/wiki/2008%E2%80%932009_Ukrainian_financial_crisis "2008–2009 Ukrainian financial crisis") [2008–2011 Icelandic financial crisis](https://en.wikipedia.org/wiki/2008%E2%80%932011_Icelandic_financial_crisis "2008–2011 Icelandic financial crisis") [Post-2008 Irish banking crisis](https://en.wikipedia.org/wiki/Post-2008_Irish_banking_crisis "Post-2008 Irish banking crisis") [2008–2014 Spanish financial crisis](https://en.wikipedia.org/wiki/2008%E2%80%932014_Spanish_financial_crisis "2008–2014 Spanish financial crisis") [Blue Monday Crash 2009](https://en.wikipedia.org/wiki/Blue_Monday_Crash_2009 "Blue Monday Crash 2009") [Euro area crisis](https://en.wikipedia.org/wiki/Euro_area_crisis "Euro area crisis") [Greek government-debt crisis](https://en.wikipedia.org/wiki/Greek_government-debt_crisis "Greek government-debt crisis") \| \| [Information Age](https://en.wikipedia.org/wiki/Information_Age "Information Age") (2009–present) \| [2009 Dubai debt standstill](https://en.wikipedia.org/wiki/Dubai_World "Dubai World") [Venezuelan banking crisis of 2009–2010](https://en.wikipedia.org/wiki/Venezuelan_banking_crisis_of_2009%E2%80%932010 "Venezuelan banking crisis of 2009–2010") [2010–2014 Portuguese financial crisis](https://en.wikipedia.org/wiki/2010%E2%80%932014_Portuguese_financial_crisis "2010–2014 Portuguese financial crisis") [Energy crisis in Venezuela](https://en.wikipedia.org/wiki/Energy_crisis_in_Venezuela "Energy crisis in Venezuela") (2010–present) [Syrian economic crisis](https://en.wikipedia.org/wiki/Economy_of_Syria "Economy of Syria") (2011–present) [August 2011 stock markets fall](https://en.wikipedia.org/wiki/August_2011_stock_markets_fall "August 2011 stock markets fall") [2011 Bangladesh share market scam](https://en.wikipedia.org/wiki/2011_Bangladesh_share_market_scam "2011 Bangladesh share market scam") [2012–2013 Cypriot financial crisis](https://en.wikipedia.org/wiki/2012%E2%80%932013_Cypriot_financial_crisis "2012–2013 Cypriot financial crisis") [Chinese Banking Liquidity Crisis of 2013](https://en.wikipedia.org/wiki/Chinese_Banking_Liquidity_Crisis_of_2013 "Chinese Banking Liquidity Crisis of 2013") [Venezuela economic crisis](https://en.wikipedia.org/wiki/2013%E2%80%93present_economic_crisis_in_Venezuela "2013–present economic crisis in Venezuela") (2013–present) [2014 Brazilian economic crisis](https://en.wikipedia.org/wiki/2014_Brazilian_economic_crisis "2014 Brazilian economic crisis") [Puerto Rican government-debt crisis](https://en.wikipedia.org/wiki/Puerto_Rican_government-debt_crisis "Puerto Rican government-debt crisis") (2014–2022) [Russian financial crisis (2014–2016)](https://en.wikipedia.org/wiki/Russian_financial_crisis_\(2014%E2%80%932016\) "Russian financial crisis (2014–2016)") [2015–16 Nepal blockade](https://en.wikipedia.org/wiki/2015%E2%80%9316_Nepal_blockade "2015–16 Nepal blockade") [2015–2016 Chinese stock market turbulence](https://en.wikipedia.org/wiki/2015%E2%80%932016_Chinese_stock_market_turbulence "2015–2016 Chinese stock market turbulence") [2015–2016 stock market selloff](https://en.wikipedia.org/wiki/2015%E2%80%932016_stock_market_selloff "2015–2016 stock market selloff") [Brexit stock market crash](https://en.wikipedia.org/wiki/Economic_effects_of_Brexit "Economic effects of Brexit") (2016) [Hyperinflation in Venezuela](https://en.wikipedia.org/wiki/Hyperinflation_in_Venezuela "Hyperinflation in Venezuela") (2016–2022) [2017 Sri Lankan fuel crisis](https://en.wikipedia.org/wiki/2017_Sri_Lankan_fuel_crisis "2017 Sri Lankan fuel crisis") [Ghana banking crisis](https://en.wikipedia.org/wiki/Ghana_banking_crisis "Ghana banking crisis") (2017–2018) [Turkish economic crisis (2018–current)](https://en.wikipedia.org/wiki/Turkish_economic_crisis_\(2018%E2%80%93current\) "Turkish economic crisis (2018–current)") [Lebanese liquidity crisis](https://en.wikipedia.org/wiki/Lebanese_liquidity_crisis "Lebanese liquidity crisis") (2019–present) [Sri Lankan economic crisis (2019–2024)](https://en.wikipedia.org/wiki/Sri_Lankan_economic_crisis_\(2019%E2%80%932024\) "Sri Lankan economic crisis (2019–2024)") [COVID-19 pandemic](https://en.wikipedia.org/wiki/Economic_impact_of_the_COVID-19_pandemic "Economic impact of the COVID-19 pandemic") [Financial market impact](https://en.wikipedia.org/wiki/Financial_market_impact_of_the_COVID-19_pandemic "Financial market impact of the COVID-19 pandemic") [2020 stock market crash](https://en.wikipedia.org/wiki/2020_stock_market_crash "2020 stock market crash") [Recession](https://en.wikipedia.org/wiki/COVID-19_recession "COVID-19 recession") [Chinese property sector crisis (2020–present)](https://en.wikipedia.org/wiki/Chinese_property_sector_crisis_\(2020%E2%80%93present\) "Chinese property sector crisis (2020–present)") [2021–2023 inflation surge](https://en.wikipedia.org/wiki/2021%E2%80%932023_inflation_surge "2021–2023 inflation surge") [2022 Russian financial crisis](https://en.wikipedia.org/wiki/Economic_impact_of_the_Russo-Ukrainian_war_\(2022%E2%80%93present\) "Economic impact of the Russo-Ukrainian war (2022–present)") [Pakistani economic crisis (2021–2024)](https://en.wikipedia.org/wiki/Pakistani_economic_crisis_\(2021%E2%80%932024\) "Pakistani economic crisis (2021–2024)") [2022 stock market decline](https://en.wikipedia.org/wiki/2022_stock_market_decline "2022 stock market decline") [German economic crisis (2022–present)](https://en.wikipedia.org/wiki/German_economic_crisis_\(2022%E2%80%93present\) "German economic crisis (2022–present)") [2023 United States banking crisis](https://en.wikipedia.org/wiki/2023_United_States_banking_crisis "2023 United States banking crisis") [2023–2024 Egyptian financial crisis](https://en.wikipedia.org/wiki/2023%E2%80%932024_Egyptian_financial_crisis "2023–2024 Egyptian financial crisis") [2025 stock market crash](https://en.wikipedia.org/wiki/2025_stock_market_crash "2025 stock market crash") \| \| [List of banking crises](https://en.wikipedia.org/wiki/List_of_banking_crises "List of banking crises") [List of economic crises](https://en.wikipedia.org/wiki/List_of_economic_crises "List of economic crises") [List of sovereign debt crises](https://en.wikipedia.org/wiki/List_of_sovereign_debt_crises "List of sovereign debt crises") [List of stock market crashes and bear markets](https://en.wikipedia.org/wiki/List_of_stock_market_crashes_and_bear_markets "List of stock market crashes and bear markets") \| \| \| [v](https://en.wikipedia.org/wiki/Template:United_States_%E2%80%93_Commonwealth_of_Nations_recessions "Template:United States – Commonwealth of Nations recessions") [t](https://en.wikipedia.org/wiki/Template_talk:United_States_%E2%80%93_Commonwealth_of_Nations_recessions "Template talk:United States – Commonwealth of Nations recessions") [e](https://en.wikipedia.org/wiki/Special:EditPage/Template:United_States_%E2%80%93_Commonwealth_of_Nations_recessions "Special:EditPage/Template:United States – Commonwealth of Nations recessions")[Economic history of the United States](https://en.wikipedia.org/wiki/Economic_history_of_the_United_States "Economic history of the United States") and Commonwealth of Nations countries \| \| \|---\|---\| \| [Commercial revolution](https://en.wikipedia.org/wiki/Commercial_revolution "Commercial revolution") (1000–1760) \| [Great Bullion Famine](https://en.wikipedia.org/wiki/Great_Bullion_Famine "Great Bullion Famine") (c. 1400–c. 1500) [Great Slump](https://en.wikipedia.org/wiki/Great_Slump_\(15th_century\) "Great Slump (15th century)") (1430–1490) [The Great Debasement](https://en.wikipedia.org/wiki/The_Great_Debasement "The Great Debasement") (1544–1551) [Financial Revolution](https://en.wikipedia.org/wiki/Financial_Revolution "Financial Revolution") (1690–1800) [Slump of 1706](https://en.wikipedia.org/wiki/War_of_the_Spanish_Succession "War of the Spanish Succession") [Great Frost of 1709](https://en.wikipedia.org/wiki/Great_Frost_of_1709 "Great Frost of 1709") [South Sea bubble]() (1713–1720) [Mississippi bubble](https://en.wikipedia.org/wiki/John_Law%27s_Company "John Law's Company") (1717–1720) [Economic impact of the Seven Years' War](https://en.wikipedia.org/wiki/Financial_costs_of_the_Seven_Years%27_War "Financial costs of the Seven Years' War") (1754–1763) \| \| [1st Industrial Revolution](https://en.wikipedia.org/wiki/Industrial_Revolution "Industrial Revolution")/ [Market Revolution](https://en.wikipedia.org/wiki/Market_Revolution "Market Revolution") (1760–1870) \| Industrial Revolution [Scotland](https://en.wikipedia.org/wiki/Industrial_Revolution_in_Scotland "Industrial Revolution in Scotland") [United States](https://en.wikipedia.org/wiki/Industrial_Revolution_in_the_United_States "Industrial Revolution in the United States") [Wales](https://en.wikipedia.org/wiki/Industrial_Revolution_in_Wales "Industrial Revolution in Wales") [Bengal Bubble of 1769](https://en.wikipedia.org/wiki/Bengal_Bubble_of_1769 "Bengal Bubble of 1769") (1769–1784) [British credit crisis of 1772–1773](https://en.wikipedia.org/wiki/British_credit_crisis_of_1772%E2%80%931773 "British credit crisis of 1772–1773") [American Revolutionary War inflation](https://en.wikipedia.org/wiki/Financial_costs_of_the_American_Revolutionary_War "Financial costs of the American Revolutionary War") (1775–1783) [Panic of 1785](https://en.wikipedia.org/wiki/List_of_recessions_in_the_United_States#Early_recessions_and_crises_\(1785%E2%80%931836\) "List of recessions in the United States") (1785–1788) [Copper Panic of 1789](https://en.wikipedia.org/wiki/Copper_Panic_of_1789 "Copper Panic of 1789")/[Panic of 1792](https://en.wikipedia.org/wiki/Panic_of_1792 "Panic of 1792") (1789–1793) [Canal Mania](https://en.wikipedia.org/wiki/Canal_Mania "Canal Mania") (c. 1790–c. 1810) [Panic of 1796–1797](https://en.wikipedia.org/wiki/Panic_of_1796%E2%80%931797 "Panic of 1796–1797") (1796–1799) [1802–1804 recession](https://en.wikipedia.org/wiki/List_of_recessions_in_the_United_States#Early_recessions_and_crises_\(1785%E2%80%931836\) "List of recessions in the United States") [Carolina gold rush](https://en.wikipedia.org/wiki/Carolina_gold_rush "Carolina gold rush") (1802–1825) [Depression of 1807](https://en.wikipedia.org/wiki/List_of_recessions_in_the_United_States#Early_recessions_and_crises_\(1785%E2%80%931836\) "List of recessions in the United States") (1807–1810) [1810s Alabama real estate bubble](https://en.wikipedia.org/wiki/Alabama_real_estate_bubble_of_the_1810s "Alabama real estate bubble of the 1810s") [Alabama Fever](https://en.wikipedia.org/wiki/Alabama_Fever "Alabama Fever") [1812 recession](https://en.wikipedia.org/wiki/List_of_recessions_in_the_United_States#Early_recessions_and_crises_\(1785%E2%80%931836\) "List of recessions in the United States") [Post-Napoleonic Depression](https://en.wikipedia.org/wiki/Post-Napoleonic_Depression "Post-Napoleonic Depression") (1815–1821) [1822–23 recession](https://en.wikipedia.org/wiki/List_of_recessions_in_the_United_States#Early_recessions_and_crises_\(1785%E2%80%931836\) "List of recessions in the United States") [Panic of 1825](https://en.wikipedia.org/wiki/Panic_of_1825 "Panic of 1825") [Panic of 1826](https://en.wikipedia.org/wiki/Panic_of_1826 "Panic of 1826") [1828–29 recession](https://en.wikipedia.org/wiki/List_of_recessions_in_the_United_States#Early_recessions_and_crises_\(1785%E2%80%931836\) "List of recessions in the United States") [Georgia Gold Rush](https://en.wikipedia.org/wiki/Georgia_Gold_Rush "Georgia Gold Rush") (1828–c. 1840) [1830s Chicago real estate bubble](https://en.wikipedia.org/wiki/Chicago_real_estate_bubble_of_the_1830s "Chicago real estate bubble of the 1830s") [1833–34 recession](https://en.wikipedia.org/wiki/List_of_recessions_in_the_United_States#Early_recessions_and_crises_\(1785%E2%80%931836\) "List of recessions in the United States") [Panic of 1837](https://en.wikipedia.org/wiki/Panic_of_1837 "Panic of 1837") (1836–1838 and 1839–1843) [U.S. state defaults in the 1840s](https://en.wikipedia.org/wiki/U.S._state_defaults_in_the_1840s "U.S. state defaults in the 1840s") [Railway Mania](https://en.wikipedia.org/wiki/Railway_Mania "Railway Mania") (c. 1840–c. 1850) [Plank Road Boom](https://en.wikipedia.org/wiki/Plank_Road_Boom "Plank Road Boom") (1844–c. 1855) [1845–46 recession](https://en.wikipedia.org/wiki/List_of_recessions_in_the_United_States#Free_Banking_Era_to_the_Great_Depression_\(1836%E2%80%931929\) "List of recessions in the United States") [Panic of 1847](https://en.wikipedia.org/wiki/Panic_of_1847 "Panic of 1847") (1847–1848) [California gold rush](https://en.wikipedia.org/wiki/California_gold_rush "California gold rush") (1848–1855) [British Columbia gold rushes](https://en.wikipedia.org/wiki/British_Columbia_gold_rushes "British Columbia gold rushes") [Queen Charlottes Gold Rush](https://en.wikipedia.org/wiki/Queen_Charlottes_Gold_Rush "Queen Charlottes Gold Rush"), 1851 [Fraser Canyon Gold Rush](https://en.wikipedia.org/wiki/Fraser_Canyon_Gold_Rush "Fraser Canyon Gold Rush"), 1858 [Rock Creek Gold Rush](https://en.wikipedia.org/wiki/Rock_Creek_Gold_Rush "Rock Creek Gold Rush"), 1859 [Similkameen Gold Rush](https://en.wikipedia.org/wiki/Similkameen_Gold_Rush "Similkameen Gold Rush"), 1860 [Stikine Gold Rush](https://en.wikipedia.org/wiki/Stikine_Gold_Rush "Stikine Gold Rush"), 1861 [Cariboo Gold Rush](https://en.wikipedia.org/wiki/Cariboo_Gold_Rush "Cariboo Gold Rush"), 1861–1867 [Wild Horse Creek Gold Rush](https://en.wikipedia.org/wiki/Fisherville,_British_Columbia "Fisherville, British Columbia"), 1863–1870 [Leechtown Gold Rush](https://en.wikipedia.org/wiki/Leechtown,_British_Columbia "Leechtown, British Columbia"), 1864–1865 [Big Bend Gold Rush](https://en.wikipedia.org/wiki/Big_Bend_Gold_Rush "Big Bend Gold Rush"), c. 1865 [Omineca Gold Rush](https://en.wikipedia.org/wiki/Omineca_Gold_Rush "Omineca Gold Rush"), 1869 [Victorian gold rush](https://en.wikipedia.org/wiki/Victorian_gold_rush "Victorian gold rush") (1851–c. 1870) [New South Wales gold rush](https://en.wikipedia.org/wiki/New_South_Wales_gold_rush "New South Wales gold rush") (1851–1880) [Australian gold rushes](https://en.wikipedia.org/wiki/Australian_gold_rushes "Australian gold rushes") (1851–1914) [1853–54 recession](https://en.wikipedia.org/wiki/List_of_recessions_in_the_United_States#Free_Banking_Era_to_the_Great_Depression_\(1836%E2%80%931929\) "List of recessions in the United States") [Panic of 1857](https://en.wikipedia.org/wiki/Panic_of_1857 "Panic of 1857") (1857–1858) [Pike's Peak gold rush](https://en.wikipedia.org/wiki/Pike%27s_Peak_gold_rush "Pike's Peak gold rush") (1858–1861) [Pennsylvania oil rush](https://en.wikipedia.org/wiki/Pennsylvania_oil_rush "Pennsylvania oil rush") (1859–1891) [1860–61 recession](https://en.wikipedia.org/wiki/List_of_recessions_in_the_United_States#Free_Banking_Era_to_the_Great_Depression_\(1836%E2%80%931929\) "List of recessions in the United States") [Colorado River mining boom](https://en.wikipedia.org/wiki/Steamboats_of_the_Colorado_River "Steamboats of the Colorado River") (1861–1864) [Otago gold rush](https://en.wikipedia.org/wiki/Otago_gold_rush "Otago gold rush") (1861–1864) [U.S. Civil War economy](https://en.wikipedia.org/wiki/Economic_history_of_the_American_Civil_War "Economic history of the American Civil War") (1861–1865) [First Nova Scotia Gold Rush](https://en.wikipedia.org/wiki/Gold_mining_in_Nova_Scotia "Gold mining in Nova Scotia") (1861–1874) [West Coast gold rush](https://en.wikipedia.org/wiki/West_Coast_gold_rush "West Coast gold rush") (1864–1867) [Panic of 1866](https://en.wikipedia.org/wiki/Panic_of_1866 "Panic of 1866") (1865–1867) [Vermilion Lake gold rush](https://en.wikipedia.org/wiki/Vermilion_Lake_gold_rush "Vermilion Lake gold rush") (1865–1867) [Kildonan Gold Rush](https://en.wikipedia.org/wiki/Kildonan_Gold_Rush "Kildonan Gold Rush") (1869) [Black Friday](https://en.wikipedia.org/wiki/Black_Friday_\(1869\) "Black Friday (1869)") (1869–1870) \| \| [Gilded Age](https://en.wikipedia.org/wiki/Gilded_Age "Gilded Age")/ [2nd Industrial Revolution](https://en.wikipedia.org/wiki/Second_Industrial_Revolution "Second Industrial Revolution") (1870–1914) \| [Coromandel Gold Rushes](https://en.wikipedia.org/wiki/Coromandel_Gold_Rushes "Coromandel Gold Rushes") (c. 1870–c. 1890) [Cassiar Gold Rush](https://en.wikipedia.org/wiki/Cassiar_Country "Cassiar Country") (c. 1870–c. 1890) [Long Depression](https://en.wikipedia.org/wiki/Long_Depression "Long Depression") 1873–1879; [Panic of 1873](https://en.wikipedia.org/wiki/Panic_of_1873 "Panic of 1873") [Black Hills gold rush](https://en.wikipedia.org/wiki/Black_Hills_gold_rush "Black Hills gold rush") (1874–1880) [Colorado Silver Boom](https://en.wikipedia.org/wiki/Colorado_Silver_Boom "Colorado Silver Boom") (1879–1893) [Western Australian gold rushes](https://en.wikipedia.org/wiki/Western_Australian_gold_rushes "Western Australian gold rushes") (c. 1880–c. 1900) [Indiana gas boom](https://en.wikipedia.org/wiki/Indiana_gas_boom "Indiana gas boom") (c. 1880–1903) [Ohio oil rush](https://en.wikipedia.org/wiki/Petroleum_industry_in_Ohio "Petroleum industry in Ohio") (c. 1880–c. 1930) [Depression of 1882–1885](https://en.wikipedia.org/wiki/Depression_of_1882%E2%80%931885 "Depression of 1882–1885") [Panic of 1884](https://en.wikipedia.org/wiki/Panic_of_1884 "Panic of 1884") [Cayoosh Gold Rush](https://en.wikipedia.org/wiki/Cayoosh_Gold_Rush "Cayoosh Gold Rush") (1884) [Witwatersrand Gold Rush](https://en.wikipedia.org/wiki/Witwatersrand_Gold_Rush "Witwatersrand Gold Rush") (1886) [1887–88 recession](https://en.wikipedia.org/wiki/List_of_recessions_in_the_United_States#Free_Banking_Era_to_the_Great_Depression_\(1836%E2%80%931929\) "List of recessions in the United States") [Baring crisis](https://en.wikipedia.org/wiki/Baring_crisis "Baring crisis") (1890–1891) [Cripple Creek Gold Rush](https://en.wikipedia.org/wiki/Cripple_Creek_Gold_Rush "Cripple Creek Gold Rush") (c. 1890–c. 1910) [Panic of 1893](https://en.wikipedia.org/wiki/Panic_of_1893 "Panic of 1893") (1893–1897) [Australian banking crisis of 1893](https://en.wikipedia.org/wiki/Australian_banking_crisis_of_1893 "Australian banking crisis of 1893") [Black Monday](https://en.wikipedia.org/wiki/Black_Monday_\(1894\) "Black Monday (1894)") (1894) [Panic of 1896](https://en.wikipedia.org/wiki/Panic_of_1896 "Panic of 1896") [Klondike Gold Rush](https://en.wikipedia.org/wiki/Klondike_Gold_Rush "Klondike Gold Rush") (1896–1899) [Second Nova Scotia Gold Rush](https://en.wikipedia.org/wiki/Gold_mining_in_Nova_Scotia "Gold mining in Nova Scotia") (1896–1903) [Kobuk River Stampede](https://en.wikipedia.org/wiki/Kobuk_River_Stampede "Kobuk River Stampede") (1897–1899) [Mount Baker gold rush](https://en.wikipedia.org/wiki/Mount_Baker_gold_rush "Mount Baker gold rush") (1897–c. 1925) [1899–1900 recession](https://en.wikipedia.org/wiki/List_of_recessions_in_the_United_States#Free_Banking_Era_to_the_Great_Depression_\(1836%E2%80%931929\) "List of recessions in the United States") [Nome Gold Rush](https://en.wikipedia.org/wiki/Nome_Gold_Rush "Nome Gold Rush") (1899–1909) [Fairbanks Gold Rush](https://en.wikipedia.org/wiki/Fairbanks_Gold_Rush "Fairbanks Gold Rush") (c. 1900–c. 1930) [Texas oil boom](https://en.wikipedia.org/wiki/Texas_oil_boom "Texas oil boom") (1901–c. 1950) [Panic of 1901](https://en.wikipedia.org/wiki/Panic_of_1901 "Panic of 1901") (1902–1904) [Cobalt silver rush](https://en.wikipedia.org/wiki/Cobalt_silver_rush "Cobalt silver rush") (1903–c. 1930) [Panic of 1907](https://en.wikipedia.org/wiki/Panic_of_1907 "Panic of 1907") (1907–1908) [Porcupine Gold Rush](https://en.wikipedia.org/wiki/Porcupine_Gold_Rush "Porcupine Gold Rush") (1909–c. 1960) [Panic of 1910–11](https://en.wikipedia.org/wiki/Panic_of_1910%E2%80%9311 "Panic of 1910–11") (1910–1912) [Financial crisis of 1914](https://en.wikipedia.org/wiki/Financial_crisis_of_1914 "Financial crisis of 1914") (1913–14) \| \| World War home fronts/ [Interwar period](https://en.wikipedia.org/wiki/Interwar_period "Interwar period") (1914–1945) \| [World War I economy](https://en.wikipedia.org/wiki/Economic_history_of_World_War_I "Economic history of World War I") and [home fronts](https://en.wikipedia.org/wiki/Home_front_during_World_War_I "Home front during World War I") [Australia](https://en.wikipedia.org/wiki/Australia_in_World_War_I#Home_front "Australia in World War I") [Canada](https://en.wikipedia.org/wiki/Canada_in_World_War_I#Home_Front "Canada in World War I") [United Kingdom](https://en.wikipedia.org/wiki/History_of_the_United_Kingdom_during_the_First_World_War "History of the United Kingdom during the First World War") [United States](https://en.wikipedia.org/wiki/United_States_home_front_during_World_War_I "United States home front during World War I") [Post–World War I recession](https://en.wikipedia.org/wiki/Post%E2%80%93World_War_I_recession "Post–World War I recession") (1918–1919) [Recession of 1920–1921](https://en.wikipedia.org/wiki/Recession_of_1920%E2%80%931921 "Recession of 1920–1921") [1920s Florida land boom](https://en.wikipedia.org/wiki/Florida_land_boom_of_the_1920s "Florida land boom of the 1920s") (c. 1920–1925) [Roaring Twenties](https://en.wikipedia.org/wiki/Roaring_Twenties "Roaring Twenties") [1923–1924 recession](https://en.wikipedia.org/wiki/List_of_recessions_in_the_United_States#Free_Banking_Era_to_the_Great_Depression_\(1836%E2%80%931929\) "List of recessions in the United States") [1926–1927 recession](https://en.wikipedia.org/wiki/List_of_recessions_in_the_United_States#Free_Banking_Era_to_the_Great_Depression_\(1836%E2%80%931929\) "List of recessions in the United States") [Great Depression](https://en.wikipedia.org/wiki/Great_Depression "Great Depression") 1929–1939; [Wall Street crash of 1929](https://en.wikipedia.org/wiki/Wall_Street_crash_of_1929 "Wall Street crash of 1929") [Panic of 1930](https://en.wikipedia.org/wiki/Panic_of_1930 "Panic of 1930") [Great Contraction](https://en.wikipedia.org/wiki/Great_Contraction "Great Contraction"), 1929–1933 [Recession of 1937–1938](https://en.wikipedia.org/wiki/Recession_of_1937%E2%80%931938 "Recession of 1937–1938") [Australia](https://en.wikipedia.org/wiki/Great_Depression_in_Australia "Great Depression in Australia") [Canada](https://en.wikipedia.org/wiki/Great_Depression_in_Canada "Great Depression in Canada") [India](https://en.wikipedia.org/wiki/Great_Depression_in_India "Great Depression in India") [South Africa](https://en.wikipedia.org/wiki/Great_Depression_in_South_Africa "Great Depression in South Africa") [United Kingdom](https://en.wikipedia.org/wiki/Great_Depression_in_the_United_Kingdom "Great Depression in the United Kingdom") [United States](https://en.wikipedia.org/wiki/Great_Depression_in_the_United_States "Great Depression in the United States") [1930s Kakamega gold rush](https://en.wikipedia.org/wiki/Kakamega_gold_rush "Kakamega gold rush") [Third Nova Scotia Gold Rush](https://en.wikipedia.org/wiki/Gold_mining_in_Nova_Scotia "Gold mining in Nova Scotia") (1932–1942) [World War II home front](https://en.wikipedia.org/wiki/Home_front_during_World_War_II "Home front during World War II") [Australia](https://en.wikipedia.org/wiki/Australian_home_front_during_World_War_II "Australian home front during World War II") [Canada](https://en.wikipedia.org/wiki/Canada_in_World_War_II#Home_front "Canada in World War II") [United Kingdom](https://en.wikipedia.org/wiki/British_home_front_during_World_War_II "British home front during World War II") [United States](https://en.wikipedia.org/wiki/United_States_home_front_during_World_War_II "United States home front during World War II") \| \| [Post–WWII expansion](https://en.wikipedia.org/wiki/Post%E2%80%93World_War_II_economic_expansion "Post–World War II economic expansion")/ [1970s stagflation](https://en.wikipedia.org/wiki/Stagflation "Stagflation") (1945–1982) \| [Great Compression](https://en.wikipedia.org/wiki/Great_Compression "Great Compression") [1945 recession](https://en.wikipedia.org/wiki/List_of_recessions_in_the_United_States#Great_Depression_onward_\(1929%E2%80%93present\) "List of recessions in the United States") [Recession of 1949](https://en.wikipedia.org/wiki/Recession_of_1949 "Recession of 1949") (1948–1949) [Hong Kong and Singapore Asian Tiger expansions](https://en.wikipedia.org/wiki/Four_Asian_Tigers "Four Asian Tigers") (1950–1990) [1951 Canada recession](https://en.wikipedia.org/wiki/List_of_recessions_in_Canada "List of recessions in Canada") [Recession of 1953](https://en.wikipedia.org/wiki/Recession_of_1953 "Recession of 1953") (1953–1954) [Recession of 1958](https://en.wikipedia.org/wiki/Recession_of_1958 "Recession of 1958") (1957–1958) [Recession of 1960–1961](https://en.wikipedia.org/wiki/Recession_of_1960%E2%80%931961 "Recession of 1960–1961") [Kennedy Slide of 1962](https://en.wikipedia.org/wiki/Kennedy_Slide_of_1962 "Kennedy Slide of 1962") [Poseidon bubble](https://en.wikipedia.org/wiki/Poseidon_bubble "Poseidon bubble") (1969–1970) [Recession of 1969–1970](https://en.wikipedia.org/wiki/Recession_of_1969%E2%80%931970 "Recession of 1969–1970") [1970s commodities boom](https://en.wikipedia.org/wiki/1970s_commodities_boom "1970s commodities boom") [1973–1975 recession](https://en.wikipedia.org/wiki/1973%E2%80%931975_recession "1973–1975 recession") [1973–1974 stock market crash](https://en.wikipedia.org/wiki/1973%E2%80%931974_stock_market_crash "1973–1974 stock market crash") [Secondary banking crisis of 1973–1975](https://en.wikipedia.org/wiki/Secondary_banking_crisis_of_1973%E2%80%931975 "Secondary banking crisis of 1973–1975") [1970s energy crisis](https://en.wikipedia.org/wiki/1970s_energy_crisis "1970s energy crisis") 1973–1980; [1973 oil crisis](https://en.wikipedia.org/wiki/1973_oil_crisis "1973 oil crisis") [1979 oil crisis](https://en.wikipedia.org/wiki/1979_oil_crisis "1979 oil crisis") [Steel crisis](https://en.wikipedia.org/wiki/Steel_crisis "Steel crisis") (1973–1982) [1976 sterling crisis](https://en.wikipedia.org/wiki/1976_sterling_crisis "1976 sterling crisis") [Silver Thursday](https://en.wikipedia.org/wiki/Silver_Thursday "Silver Thursday") (1980) [Early 1980s recession](https://en.wikipedia.org/wiki/Early_1980s_recession "Early 1980s recession") 1980–1982; [United States](https://en.wikipedia.org/wiki/Early_1980s_recession_in_the_United_States "Early 1980s recession in the United States") \| \| [Computer Age](https://en.wikipedia.org/wiki/Information_Age "Information Age")/ [Second Gilded Age](https://en.wikipedia.org/wiki/Second_Gilded_Age "Second Gilded Age") (1982–present) \| [Great Moderation](https://en.wikipedia.org/wiki/Great_Moderation "Great Moderation") (1982–2007) [1980s oil glut](https://en.wikipedia.org/wiki/1980s_oil_glut "1980s oil glut") [Black Saturday](https://en.wikipedia.org/wiki/Black_Saturday_\(1983\) "Black Saturday (1983)") (1983) [New Zealand property bubble](https://en.wikipedia.org/wiki/New_Zealand_property_bubble "New Zealand property bubble") (c. 1985–) [Savings and loan crisis](https://en.wikipedia.org/wiki/Savings_and_loan_crisis "Savings and loan crisis") (1986–1995) [Black Monday](https://en.wikipedia.org/wiki/Black_Monday_\(1987\) "Black Monday (1987)") (1987) [Friday the 13th mini-crash](https://en.wikipedia.org/wiki/Friday_the_13th_mini-crash "Friday the 13th mini-crash") (1989) [Early 1990s recession](https://en.wikipedia.org/wiki/Early_1990s_recession "Early 1990s recession") 1990–1991; [Australia](https://en.wikipedia.org/wiki/Early_1990s_recession_in_Australia "Early 1990s recession in Australia") [United States](https://en.wikipedia.org/wiki/Early_1990s_recession_in_the_United_States "Early 1990s recession in the United States") [1990 oil price shock](https://en.wikipedia.org/wiki/1990_oil_price_shock "1990 oil price shock") [Rhode Island banking crisis](https://en.wikipedia.org/wiki/Rhode_Island_banking_crisis "Rhode Island banking crisis") (1990–1992) [1991 Indian economic crisis](https://en.wikipedia.org/wiki/1991_Indian_economic_crisis "1991 Indian economic crisis") [1990s United States boom](https://en.wikipedia.org/wiki/1990s_United_States_boom "1990s United States boom") (1991–2001) [1990s India economic boom](https://en.wikipedia.org/wiki/Economic_liberalisation_in_India "Economic liberalisation in India") [Hyperinflation in Zimbabwe](https://en.wikipedia.org/wiki/Hyperinflation_in_Zimbabwe "Hyperinflation in Zimbabwe") (1991–present) [Black Wednesday](https://en.wikipedia.org/wiki/Black_Wednesday "Black Wednesday") (1992) [1994 bond market crisis](https://en.wikipedia.org/wiki/1994_bond_market_crisis "1994 bond market crisis") [1994 Papua New Guinea financial crisis](https://en.wikipedia.org/wiki/1994_Papua_New_Guinea_financial_crisis "1994 Papua New Guinea financial crisis") [Dot-com bubble](https://en.wikipedia.org/wiki/Dot-com_bubble "Dot-com bubble") 1995–2004; [Stock market downturn of 2002](https://en.wikipedia.org/wiki/Stock_market_downturn_of_2002 "Stock market downturn of 2002") [1997 Asian financial crisis](https://en.wikipedia.org/wiki/1997_Asian_financial_crisis "1997 Asian financial crisis") [October 27, 1997, mini-crash](https://en.wikipedia.org/wiki/October_27,_1997,_mini-crash "October 27, 1997, mini-crash") [Early 2000s recession](https://en.wikipedia.org/wiki/Early_2000s_recession "Early 2000s recession") 2001; [9/11 stock market crash](https://en.wikipedia.org/wiki/Economic_effects_of_the_September_11_attacks "Economic effects of the September 11 attacks") [2000s commodities boom](https://en.wikipedia.org/wiki/2000s_commodities_boom "2000s commodities boom") (2000–2014) [United States housing bubble](https://en.wikipedia.org/wiki/2000s_United_States_housing_bubble "2000s United States housing bubble") (2002–2006) [Canadian property bubble](https://en.wikipedia.org/wiki/Canadian_property_bubble "Canadian property bubble") (2002–) [2003 Myanmar banking crisis](https://en.wikipedia.org/wiki/2003_Myanmar_banking_crisis "2003 Myanmar banking crisis") [2000s energy crisis](https://en.wikipedia.org/wiki/2000s_energy_crisis "2000s energy crisis") (2003–2008) [North Dakota oil boom](https://en.wikipedia.org/wiki/North_Dakota_oil_boom "North Dakota oil boom") (2006–2015) [Uranium bubble of 2007](https://en.wikipedia.org/wiki/Uranium_bubble_of_2007 "Uranium bubble of 2007") [Great Recession](https://en.wikipedia.org/wiki/Great_Recession "Great Recession") 2007–2009; [Australia and New Zealand](https://en.wikipedia.org/wiki/Great_Recession_in_Oceania "Great Recession in Oceania") [Bangladesh, India, Malaysia, Pakistan, and Sri Lanka](https://en.wikipedia.org/wiki/Great_Recession_in_Asia "Great Recession in Asia") [British West Indies](https://en.wikipedia.org/wiki/Great_Recession_in_South_America "Great Recession in South America") [Canada](https://en.wikipedia.org/wiki/Great_Recession_in_the_Americas "Great Recession in the Americas") [South Africa](https://en.wikipedia.org/wiki/Great_Recession_in_Africa "Great Recession in Africa") [United Kingdom](https://en.wikipedia.org/wiki/Great_Recession_in_Europe#United_Kingdom "Great Recession in Europe") [United States](https://en.wikipedia.org/wiki/Great_Recession_in_the_United_States "Great Recession in the United States") [2008 financial crisis](https://en.wikipedia.org/wiki/2008_financial_crisis "2008 financial crisis") [September](https://en.wikipedia.org/wiki/Global_financial_crisis_in_September_2008 "Global financial crisis in September 2008") [October](https://en.wikipedia.org/wiki/Global_financial_crisis_in_October_2008 "Global financial crisis in October 2008") [November](https://en.wikipedia.org/wiki/Global_financial_crisis_in_November_2008 "Global financial crisis in November 2008") [December](https://en.wikipedia.org/wiki/Global_financial_crisis_in_December_2008 "Global financial crisis in December 2008") [2009](https://en.wikipedia.org/wiki/Global_financial_crisis_in_2009 "Global financial crisis in 2009") [Subprime mortgage crisis](https://en.wikipedia.org/wiki/Subprime_mortgage_crisis "Subprime mortgage crisis") [2000s U.S. housing market correction](https://en.wikipedia.org/wiki/2000s_United_States_housing_market_correction "2000s United States housing market correction") [U.S. bear market of 2007–2009](https://en.wikipedia.org/wiki/United_States_bear_market_of_2007%E2%80%932009 "United States bear market of 2007–2009") [2007–2010 U.S. bank failures](https://en.wikipedia.org/wiki/List_of_banks_acquired_or_bankrupted_in_the_United_States_during_the_2008_financial_crisis "List of banks acquired or bankrupted in the United States during the 2008 financial crisis") [Corporate debt bubble](https://en.wikipedia.org/wiki/Corporate_debt_bubble "Corporate debt bubble") (2008–) [Blue Monday Crash 2009](https://en.wikipedia.org/wiki/Blue_Monday_Crash_2009 "Blue Monday Crash 2009") [2010 flash crash](https://en.wikipedia.org/wiki/2010_flash_crash "2010 flash crash") [Malaysia Tiger Cub expansion](https://en.wikipedia.org/wiki/Tiger_Cub_Economies "Tiger Cub Economies") (2010s) [Australian property bubble](https://en.wikipedia.org/wiki/Australian_property_bubble "Australian property bubble") (2010–) [August 2011 stock markets fall](https://en.wikipedia.org/wiki/August_2011_stock_markets_fall "August 2011 stock markets fall") [Black Monday](https://en.wikipedia.org/wiki/Black_Monday_\(2011\) "Black Monday (2011)") [2011 Bangladesh share market scam](https://en.wikipedia.org/wiki/2011_Bangladesh_share_market_scam "2011 Bangladesh share market scam") [Cryptocurrency bubble](https://en.wikipedia.org/wiki/Cryptocurrency_bubble "Cryptocurrency bubble") (2011–) [Puerto Rican government-debt crisis](https://en.wikipedia.org/wiki/Puerto_Rican_government-debt_crisis "Puerto Rican government-debt crisis") (2014–2022) [2015–2016 stock market selloff](https://en.wikipedia.org/wiki/2015%E2%80%932016_stock_market_selloff "2015–2016 stock market selloff") [Brexit stock market crash](https://en.wikipedia.org/wiki/Economic_effects_of_Brexit "Economic effects of Brexit") (2016) [2017 Sri Lankan fuel crisis](https://en.wikipedia.org/wiki/2017_Sri_Lankan_fuel_crisis "2017 Sri Lankan fuel crisis") [Ghana banking crisis](https://en.wikipedia.org/wiki/Ghana_banking_crisis "Ghana banking crisis") (2017–2018) [Sri Lankan economic crisis](https://en.wikipedia.org/wiki/Sri_Lankan_economic_crisis_\(2019%E2%80%932024\) "Sri Lankan economic crisis (2019–2024)") (2019–2024) [COVID-19 recession](https://en.wikipedia.org/wiki/COVID-19_recession "COVID-19 recession") 2020–2022; [2020 stock market crash](https://en.wikipedia.org/wiki/2020_stock_market_crash "2020 stock market crash") [financial market impact](https://en.wikipedia.org/wiki/Financial_market_impact_of_the_COVID-19_pandemic "Financial market impact of the COVID-19 pandemic") [sectoral impacts](https://en.wikipedia.org/wiki/Economic_impact_of_the_COVID-19_pandemic "Economic impact of the COVID-19 pandemic") [shortages](https://en.wikipedia.org/wiki/Shortages_related_to_the_COVID-19_pandemic "Shortages related to the COVID-19 pandemic") [Canada](https://en.wikipedia.org/wiki/Economic_impact_of_the_COVID-19_pandemic_in_Canada "Economic impact of the COVID-19 pandemic in Canada") [India](https://en.wikipedia.org/wiki/Economic_impact_of_the_COVID-19_pandemic_in_India "Economic impact of the COVID-19 pandemic in India") [Malaysia](https://en.wikipedia.org/wiki/Economic_impact_of_the_COVID-19_pandemic_in_Malaysia "Economic impact of the COVID-19 pandemic in Malaysia") [New Zealand](https://en.wikipedia.org/wiki/Economic_impact_of_the_COVID-19_pandemic_in_New_Zealand "Economic impact of the COVID-19 pandemic in New Zealand") [United Kingdom](https://en.wikipedia.org/wiki/Economic_impact_of_the_COVID-19_pandemic_in_the_United_Kingdom "Economic impact of the COVID-19 pandemic in the United Kingdom") [United States](https://en.wikipedia.org/wiki/Economic_impact_of_the_COVID-19_pandemic_in_the_United_States "Economic impact of the COVID-19 pandemic in the United States") [2020s commodities boom](https://en.wikipedia.org/wiki/2020s_commodities_boom "2020s commodities boom") [Global energy crisis](https://en.wikipedia.org/wiki/Global_energy_crisis_\(2021%E2%80%932023\) "Global energy crisis (2021–2023)") 2021–2023; [2021 United Kingdom natural gas supplier crisis](https://en.wikipedia.org/wiki/2021_United_Kingdom_natural_gas_supplier_crisis "2021 United Kingdom natural gas supplier crisis") [regional effects](https://en.wikipedia.org/wiki/Regional_effects_of_the_2021%E2%80%932023_global_energy_crisis "Regional effects of the 2021–2023 global energy crisis") [2021–2023 global supply chain crisis](https://en.wikipedia.org/wiki/2021%E2%80%932023_global_supply_chain_crisis "2021–2023 global supply chain crisis") [2021–2023 inflation surge](https://en.wikipedia.org/wiki/2021%E2%80%932023_inflation_surge "2021–2023 inflation surge") [Pakistani economic crisis](https://en.wikipedia.org/wiki/Pakistani_economic_crisis_\(2021%E2%80%932024\) "Pakistani economic crisis (2021–2024)") (2021–2024) [2022 stock market decline](https://en.wikipedia.org/wiki/2022_stock_market_decline "2022 stock market decline") [2022–2023 global food crises](https://en.wikipedia.org/wiki/2022%E2%80%932023_global_food_crises "2022–2023 global food crises") [2023 United Kingdom recession](https://en.wikipedia.org/wiki/List_of_recessions_in_the_United_Kingdom "List of recessions in the United Kingdom") [2023 United States banking crisis](https://en.wikipedia.org/wiki/2023_United_States_banking_crisis "2023 United States banking crisis") [2025 stock market crash](https://en.wikipedia.org/wiki/2025_stock_market_crash "2025 stock market crash") \| \| Countries and sectors \| [Australia](https://en.wikipedia.org/wiki/Economic_history_of_Australia "Economic history of Australia") [rail transport](https://en.wikipedia.org/wiki/History_of_rail_transport_in_Australia "History of rail transport in Australia") [slavery](https://en.wikipedia.org/wiki/Slavery_in_Australia "Slavery in Australia") [whaling](https://en.wikipedia.org/wiki/Whaling_in_Australia "Whaling in Australia")/[Western Australia](https://en.wikipedia.org/wiki/Whaling_in_Western_Australia "Whaling in Western Australia") [Canada](https://en.wikipedia.org/wiki/Economic_history_of_Canada "Economic history of Canada") [agriculture](https://en.wikipedia.org/wiki/History_of_agriculture_in_Canada "History of agriculture in Canada") [currencies](https://en.wikipedia.org/wiki/History_of_Canadian_currencies "History of Canadian currencies") [early banking system](https://en.wikipedia.org/wiki/Early_Canadian_banking_system "Early Canadian banking system") [list of recessions](https://en.wikipedia.org/wiki/List_of_recessions_in_Canada "List of recessions in Canada") [petroleum industry](https://en.wikipedia.org/wiki/History_of_the_petroleum_industry_in_Canada "History of the petroleum industry in Canada") [rail transport](https://en.wikipedia.org/wiki/History_of_rail_transport_in_Canada "History of rail transport in Canada") [slavery](https://en.wikipedia.org/wiki/Slavery_in_Canada "Slavery in Canada") [technological and industrial](https://en.wikipedia.org/wiki/Technological_and_industrial_history_of_Canada "Technological and industrial history of Canada") [whaling](https://en.wikipedia.org/wiki/Whaling_in_Canada "Whaling in Canada")/[Pacific Northwest](https://en.wikipedia.org/wiki/Whaling_on_the_Pacific_Northwest_Coast "Whaling on the Pacific Northwest Coast") [Ghana](https://en.wikipedia.org/wiki/Economic_history_of_Ghana "Economic history of Ghana") [India](https://en.wikipedia.org/wiki/Economic_history_of_India "Economic history of India") [agriculture](https://en.wikipedia.org/wiki/History_of_agriculture_in_the_Indian_subcontinent "History of agriculture in the Indian subcontinent") [Company rule](https://en.wikipedia.org/wiki/Economy_of_India_under_Company_rule "Economy of India under Company rule") [maritime](https://en.wikipedia.org/wiki/Indian_maritime_history "Indian maritime history") [British Raj](https://en.wikipedia.org/wiki/Economy_of_India_under_the_British_Raj "Economy of India under the British Raj") [Deindustrialisation](https://en.wikipedia.org/wiki/De-industrialisation_of_India "De-industrialisation of India") [salt tax](https://en.wikipedia.org/wiki/History_of_the_salt_tax_in_British_India "History of the salt tax in British India") [slavery](https://en.wikipedia.org/wiki/Slavery_in_India "Slavery in India") [Malaysia](https://en.wikipedia.org/wiki/Economic_history_of_Malaysia "Economic history of Malaysia") [New Zealand](https://en.wikipedia.org/wiki/Economic_history_of_New_Zealand "Economic history of New Zealand") [whaling](https://en.wikipedia.org/wiki/Whaling_in_New_Zealand "Whaling in New Zealand") [Nigeria](https://en.wikipedia.org/wiki/Economic_history_of_Nigeria "Economic history of Nigeria") [slavery](https://en.wikipedia.org/wiki/Slavery_in_Nigeria "Slavery in Nigeria") [Pakistan](https://en.wikipedia.org/wiki/Economic_history_of_Pakistan "Economic history of Pakistan") [maritime](https://en.wikipedia.org/wiki/Maritime_history_of_Pakistan "Maritime history of Pakistan") [rail transport](https://en.wikipedia.org/wiki/History_of_rail_transport_in_Pakistan "History of rail transport in Pakistan") [South Africa](https://en.wikipedia.org/wiki/Economic_history_of_South_Africa "Economic history of South Africa") [slavery](https://en.wikipedia.org/wiki/Slavery_in_South_Africa "Slavery in South Africa") [whaling](https://en.wikipedia.org/wiki/Whaling_in_South_Africa "Whaling in South Africa") [Uganda](https://en.wikipedia.org/wiki/Economic_history_of_Uganda "Economic history of Uganda") [United Kingdom](https://en.wikipedia.org/wiki/Economic_history_of_the_United_Kingdom "Economic history of the United Kingdom") [Agricultural Revolution](https://en.wikipedia.org/wiki/British_Agricultural_Revolution "British Agricultural Revolution") [Atlantic slave trade](https://en.wikipedia.org/wiki/Atlantic_slave_trade "Atlantic slave trade") [banking](https://en.wikipedia.org/wiki/History_of_banking_in_the_United_Kingdom "History of banking in the United Kingdom") [British Empire](https://en.wikipedia.org/wiki/Economy_of_the_British_Empire "Economy of the British Empire") [English fiscal system](https://en.wikipedia.org/wiki/History_of_the_English_fiscal_system "History of the English fiscal system") [Interwar unemployment and poverty](https://en.wikipedia.org/wiki/Interwar_unemployment_and_poverty_in_the_United_Kingdom "Interwar unemployment and poverty in the United Kingdom") [list of recessions](https://en.wikipedia.org/wiki/List_of_recessions_in_the_United_Kingdom "List of recessions in the United Kingdom") [maritime](https://en.wikipedia.org/wiki/Maritime_history_of_the_United_Kingdom "Maritime history of the United Kingdom")/[England](https://en.wikipedia.org/wiki/Maritime_history_of_England "Maritime history of England")/[Scotland](https://en.wikipedia.org/wiki/Maritime_history_of_Scotland "Maritime history of Scotland") [Middle Ages England](https://en.wikipedia.org/wiki/Economy_of_England_in_the_Middle_Ages "Economy of England in the Middle Ages")/[agriculture](https://en.wikipedia.org/wiki/Economics_of_English_agriculture_in_the_Middle_Ages "Economics of English agriculture in the Middle Ages") [national debt](https://en.wikipedia.org/wiki/History_of_the_British_national_debt "History of the British national debt") [Scotland](https://en.wikipedia.org/wiki/Economic_history_of_Scotland "Economic history of Scotland")/[agriculture](https://en.wikipedia.org/wiki/History_of_agriculture_in_Scotland "History of agriculture in Scotland")/[Middle Ages](https://en.wikipedia.org/wiki/Economy_of_Scotland_in_the_Middle_Ages "Economy of Scotland in the Middle Ages") [rail transport](https://en.wikipedia.org/wiki/History_of_rail_transport_in_Great_Britain "History of rail transport in Great Britain")/[pre–1830](https://en.wikipedia.org/wiki/History_of_rail_transport_in_Great_Britain_to_1830 "History of rail transport in Great Britain to 1830")/[1830–1922](https://en.wikipedia.org/wiki/History_of_rail_transport_in_Great_Britain_1830%E2%80%931922 "History of rail transport in Great Britain 1830–1922")/[1923–1947](https://en.wikipedia.org/wiki/History_of_rail_transport_in_Great_Britain_1923%E2%80%931947 "History of rail transport in Great Britain 1923–1947")/[1948–1994](https://en.wikipedia.org/wiki/History_of_rail_transport_in_Great_Britain_1948%E2%80%931994 "History of rail transport in Great Britain 1948–1994")/[1995–present](https://en.wikipedia.org/wiki/History_of_rail_transport_in_Great_Britain_1995_to_date "History of rail transport in Great Britain 1995 to date") [slavery](https://en.wikipedia.org/wiki/Slavery_in_Britain "Slavery in Britain") [trade unions](https://en.wikipedia.org/wiki/History_of_trade_unions_in_the_United_Kingdom "History of trade unions in the United Kingdom") [Victorian era](https://en.wikipedia.org/wiki/Economy,_industry,_and_trade_of_the_Victorian_era "Economy, industry, and trade of the Victorian era") [Wales](https://en.wikipedia.org/wiki/Economic_history_of_Wales "Economic history of Wales") [whaling](https://en.wikipedia.org/wiki/Whaling_in_the_United_Kingdom "Whaling in the United Kingdom")/[Scotland](https://en.wikipedia.org/wiki/Whaling_in_Scotland "Whaling in Scotland") [United States](https://en.wikipedia.org/wiki/Economic_history_of_the_United_States "Economic history of the United States") [agriculture](https://en.wikipedia.org/wiki/History_of_agriculture_in_the_United_States "History of agriculture in the United States") [banking](https://en.wikipedia.org/wiki/History_of_banking_in_the_United_States "History of banking in the United States")/[colonial-era credit](https://en.wikipedia.org/wiki/Credit_in_the_Thirteen_Colonies "Credit in the Thirteen Colonies")/[cooperatives](https://en.wikipedia.org/wiki/History_of_cooperatives_in_the_United_States "History of cooperatives in the United States")/[investment banking](https://en.wikipedia.org/wiki/History_of_investment_banking_in_the_United_States "History of investment banking in the United States")/[wildcat banking](https://en.wikipedia.org/wiki/Wildcat_banking "Wildcat banking") [business](https://en.wikipedia.org/wiki/American_business_history "American business history") [central banking](https://en.wikipedia.org/wiki/History_of_central_banking_in_the_United_States "History of central banking in the United States") [coal mining](https://en.wikipedia.org/wiki/History_of_coal_mining_in_the_United_States "History of coal mining in the United States") [indentured servitude](https://en.wikipedia.org/wiki/Indentured_servitude_in_British_America "Indentured servitude in British America") [iron and steel industry](https://en.wikipedia.org/wiki/History_of_the_iron_and_steel_industry_in_the_United_States "History of the iron and steel industry in the United States") [labor](https://en.wikipedia.org/wiki/Labor_history_of_the_United_States "Labor history of the United States") [list of economic expansions](https://en.wikipedia.org/wiki/List_of_economic_expansions_in_the_United_States "List of economic expansions in the United States") [list of recessions](https://en.wikipedia.org/wiki/List_of_recessions_in_the_United_States "List of recessions in the United States") [lumber industry](https://en.wikipedia.org/wiki/History_of_the_lumber_industry_in_the_United_States "History of the lumber industry in the United States") [maritime](https://en.wikipedia.org/wiki/History_of_the_United_States_Merchant_Marine "History of the United States Merchant Marine")/[colonial-era](https://en.wikipedia.org/wiki/Maritime_history_of_Colonial_America "Maritime history of Colonial America")/[1776–1799](https://en.wikipedia.org/wiki/Maritime_history_of_the_United_States_\(1776%E2%80%931799\) "Maritime history of the United States (1776–1799)")/[1800–1899](https://en.wikipedia.org/wiki/Maritime_history_of_the_United_States_\(1800%E2%80%931899\) "Maritime history of the United States (1800–1899)")/[1900–1999](https://en.wikipedia.org/wiki/Maritime_history_of_the_United_States_\(1900%E2%80%931999\) "Maritime history of the United States (1900–1999)")/[2000–present](https://en.wikipedia.org/wiki/Maritime_history_of_the_United_States_\(2000%E2%80%93present\) "Maritime history of the United States (2000–present)") [monetary policy](https://en.wikipedia.org/wiki/History_of_monetary_policy_in_the_United_States "History of monetary policy in the United States") [poverty](https://en.wikipedia.org/wiki/History_of_poverty_in_the_United_States "History of poverty in the United States") [petroleum industry](https://en.wikipedia.org/wiki/History_of_the_petroleum_industry_in_the_United_States "History of the petroleum industry in the United States")/[oil shale](https://en.wikipedia.org/wiki/History_of_the_oil_shale_industry_in_the_United_States "History of the oil shale industry in the United States") [public debt](https://en.wikipedia.org/wiki/History_of_the_United_States_public_debt "History of the United States public debt") [rail transportation](https://en.wikipedia.org/wiki/History_of_rail_transportation_in_the_United_States "History of rail transportation in the United States") [slavery](https://en.wikipedia.org/wiki/Slavery_in_the_United_States "Slavery in the United States")/[colonial-era slavery](https://en.wikipedia.org/wiki/Slavery_in_the_colonial_history_of_the_United_States "Slavery in the colonial history of the United States")/[forced labor](https://en.wikipedia.org/wiki/History_of_forced_labor_in_the_United_States "History of forced labor in the United States")/[slave trade](https://en.wikipedia.org/wiki/Slave_trade_in_the_United_States "Slave trade in the United States")/[slave markets](https://en.wikipedia.org/wiki/Slave_markets_and_slave_jails_in_the_United_States "Slave markets and slave jails in the United States") [tariffs](https://en.wikipedia.org/wiki/History_of_tariffs_in_the_United_States "History of tariffs in the United States") [taxation](https://en.wikipedia.org/wiki/History_of_taxation_in_the_United_States "History of taxation in the United States") [technological and industrial](https://en.wikipedia.org/wiki/Technological_and_industrial_history_of_the_United_States "Technological and industrial history of the United States") [United States dollar](https://en.wikipedia.org/wiki/History_of_the_United_States_dollar "History of the United States dollar") [whaling](https://en.wikipedia.org/wiki/Whaling_in_the_United_States "Whaling in the United States") [Zimbabwe](https://en.wikipedia.org/wiki/Economic_history_of_Zimbabwe "Economic history of Zimbabwe") \| \| [Business cycle](https://en.wikipedia.org/wiki/Business_cycle "Business cycle") topics \| [Aggregate demand](https://en.wikipedia.org/wiki/Aggregate_demand "Aggregate demand")/[Supply](https://en.wikipedia.org/wiki/Aggregate_supply "Aggregate supply") [Effective demand](https://en.wikipedia.org/wiki/Effective_demand "Effective demand") [General glut](https://en.wikipedia.org/wiki/General_glut "General glut") [Model](https://en.wikipedia.org/wiki/AD%E2%80%93AS_model "AD–AS model") [Overproduction](https://en.wikipedia.org/wiki/Overproduction "Overproduction") [Paradox of thrift](https://en.wikipedia.org/wiki/Paradox_of_thrift "Paradox of thrift") [Price-and-wage stickiness](https://en.wikipedia.org/wiki/Nominal_rigidity "Nominal rigidity") [Underconsumption](https://en.wikipedia.org/wiki/Underconsumption "Underconsumption") [Inflation](https://en.wikipedia.org/wiki/Inflation "Inflation") and [unemployment](https://en.wikipedia.org/wiki/Unemployment "Unemployment") [Chronic](https://en.wikipedia.org/wiki/Chronic_inflation "Chronic inflation") [Classical dichotomy](https://en.wikipedia.org/wiki/Classical_dichotomy "Classical dichotomy") [Debasement](https://en.wikipedia.org/wiki/Debasement "Debasement") [Debt monetization](https://en.wikipedia.org/wiki/Debt_monetization "Debt monetization") [Demand-pull](https://en.wikipedia.org/wiki/Demand-pull_inflation "Demand-pull inflation")/[cost-push](https://en.wikipedia.org/wiki/Cost-push_inflation "Cost-push inflation")/[built-in inflation](https://en.wikipedia.org/wiki/Inertial_inflation "Inertial inflation") [Deflation](https://en.wikipedia.org/wiki/Deflation "Deflation") [Disinflation](https://en.wikipedia.org/wiki/Disinflation "Disinflation") [Full employment](https://en.wikipedia.org/wiki/Full_employment "Full employment") [Hyperinflation](https://en.wikipedia.org/wiki/Hyperinflation "Hyperinflation") [Money supply](https://en.wikipedia.org/wiki/Money_supply "Money supply")/[demand](https://en.wikipedia.org/wiki/Demand_for_money "Demand for money") [NAIRU](https://en.wikipedia.org/wiki/NAIRU "NAIRU") [Natural rate of unemployment](https://en.wikipedia.org/wiki/Natural_rate_of_unemployment "Natural rate of unemployment") [Neutrality of money](https://en.wikipedia.org/wiki/Neutrality_of_money "Neutrality of money") [Phillips curve](https://en.wikipedia.org/wiki/Phillips_curve "Phillips curve") [Price level](https://en.wikipedia.org/wiki/Price_level "Price level") [Real and nominal value](https://en.wikipedia.org/wiki/Real_and_nominal_value "Real and nominal value") [Sahm rule](https://en.wikipedia.org/wiki/Sahm_rule "Sahm rule") [Velocity of money](https://en.wikipedia.org/wiki/Velocity_of_money "Velocity of money") [Expansion](https://en.wikipedia.org/wiki/Economic_expansion "Economic expansion") [Miracle](https://en.wikipedia.org/wiki/Economic_miracle "Economic miracle") [Recovery](https://en.wikipedia.org/wiki/Economic_recovery "Economic recovery") [Stagnation](https://en.wikipedia.org/wiki/Economic_stagnation "Economic stagnation") [Interest rate](https://en.wikipedia.org/wiki/Interest_rate "Interest rate") [Nominal interest rate](https://en.wikipedia.org/wiki/Nominal_interest_rate "Nominal interest rate") [Real interest rate](https://en.wikipedia.org/wiki/Real_interest_rate "Real interest rate") [Yield curve](https://en.wikipedia.org/wiki/Yield_curve "Yield curve")/[Inverted](https://en.wikipedia.org/wiki/Inverted_yield_curve "Inverted yield curve") [Recession](https://en.wikipedia.org/wiki/Recession "Recession") [Balance sheet](https://en.wikipedia.org/wiki/Balance_sheet_recession "Balance sheet recession") [Depression](https://en.wikipedia.org/wiki/Economic_depression "Economic depression") [Global](https://en.wikipedia.org/wiki/Global_recession "Global recession") [Rolling](https://en.wikipedia.org/wiki/Rolling_recession "Rolling recession") [Shapes](https://en.wikipedia.org/wiki/Recession_shapes "Recession shapes") [Stagflation](https://en.wikipedia.org/wiki/Stagflation "Stagflation") [Shock](https://en.wikipedia.org/wiki/Shock_\(economics\) "Shock (economics)") [Demand](https://en.wikipedia.org/wiki/Demand_shock "Demand shock") [Supply](https://en.wikipedia.org/wiki/Supply_shock "Supply shock") \| \| [Credit cycle](https://en.wikipedia.org/wiki/Credit_cycle "Credit cycle") topics \| [Financial bubble](https://en.wikipedia.org/wiki/Economic_bubble "Economic bubble") [Commodity 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crash](https://en.wikipedia.org/wiki/Stock_market_crash "Stock market crash")/[Flash crash](https://en.wikipedia.org/wiki/Flash_crash "Flash crash") [Social contagion](https://en.wikipedia.org/wiki/Social_contagion "Social contagion") [Financial contagion](https://en.wikipedia.org/wiki/Financial_contagion "Financial contagion") [Irrational exuberance](https://en.wikipedia.org/wiki/Irrational_exuberance "Irrational exuberance") [Market trend](https://en.wikipedia.org/wiki/Market_trend "Market trend") Proposed bubbles [AI bubble](https://en.wikipedia.org/wiki/AI_bubble "AI bubble")/[AI boom](https://en.wikipedia.org/wiki/AI_boom "AI boom")/[Fourth Industrial Revolution](https://en.wikipedia.org/wiki/Fourth_Industrial_Revolution "Fourth Industrial Revolution")/[Imagination Age](https://en.wikipedia.org/wiki/Imagination_Age "Imagination Age") [Carbon bubble](https://en.wikipedia.org/wiki/Carbon_bubble "Carbon bubble")/[Age of Oil](https://en.wikipedia.org/wiki/Age_of_Oil "Age of Oil")/[Peak oil](https://en.wikipedia.org/wiki/Peak_oil "Peak oil") [Everything bubble](https://en.wikipedia.org/wiki/Everything_bubble "Everything bubble") [Green bubble](https://en.wikipedia.org/wiki/Green_bubble "Green bubble") [Social media stock bubble](https://en.wikipedia.org/wiki/Social_media_stock_bubble "Social media stock bubble") [Unicorn bubble](https://en.wikipedia.org/wiki/Unicorn_bubble "Unicorn bubble") [U.S. higher education bubble](https://en.wikipedia.org/wiki/Higher_education_bubble_in_the_United_States "Higher education bubble in the United States") \| \| [Authority control databases](https://en.wikipedia.org/wiki/Help:Authority_control "Help:Authority control") [![Edit this at Wikidata](https://upload.wikimedia.org/wikipedia/en/thumb/8/8a/OOjs_UI_icon_edit-ltr-progressive.svg/20px-OOjs_UI_icon_edit-ltr-progressive.svg.png)](https://www.wikidata.org/wiki/Q1210696#identifiers "Edit this at Wikidata") \| \| \|---\|---\| \| International \| 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Readable Markdown	\| \| \| \|---\|---\| \| [![](https://upload.wikimedia.org/wikipedia/commons/thumb/2/2e/Arms_of_the_South_Sea_Company.svg/250px-Arms_of_the_South_Sea_Company.svg.png)](https://en.wikipedia.org/wiki/File:Arms_of_the_South_Sea_Company.svg)Arms of the South Sea Company: Azure, a globe whereon are represented the [Straits of Magellan](https://en.wikipedia.org/wiki/Straits_of_Magellan "Straits of Magellan") and [Cape Horn](https://en.wikipedia.org/wiki/Cape_Horn "Cape Horn") all [proper](https://en.wikipedia.org/wiki/Tincture_\(heraldry\) "Tincture (heraldry)") and in [sinister](https://en.wikipedia.org/wiki/Dexter_and_sinister "Dexter and sinister") chief point two herrings haurient in saltire argent crowned or, in a [canton](https://en.wikipedia.org/wiki/Canton_\(heraldry\) "Canton (heraldry)") the [united arms of Great Britain](https://en.wikipedia.org/wiki/Royal_coat_of_arms_of_the_United_Kingdom "Royal coat of arms of the United Kingdom") \| \| \| Company type \| [Public](https://en.wikipedia.org/wiki/Joint-stock_company "Joint-stock company") \| \| Industry \| [Slave trade](https://en.wikipedia.org/wiki/History_of_slavery "History of slavery"), [speculation](https://en.wikipedia.org/wiki/Speculation "Speculation"), [whaling](https://en.wikipedia.org/wiki/Whaling "Whaling") \| \| Founded \| January 1711; 315 years ago \| \| Defunct \| 1853; 173 years ago \| \| Headquarters \| London, Great Britain \| [![](https://upload.wikimedia.org/wikipedia/commons/thumb/b/b9/SouthSeaHouse_Stowe%27sSurveyOfLondon_1754.PNG/250px-SouthSeaHouse_Stowe%27sSurveyOfLondon_1754.PNG)](https://en.wikipedia.org/wiki/File:SouthSeaHouse_Stowe%27sSurveyOfLondon_1754.PNG) 1754 engraving of Old South Sea House, the headquarters of the South Sea Company, which burned down in 1826,[\[1\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-1) on the corner of [Bishopsgate Street](https://en.wikipedia.org/wiki/Bishopsgate_Street "Bishopsgate Street") and [Threadneedle Street](https://en.wikipedia.org/wiki/Threadneedle_Street "Threadneedle Street") in the [City of London](https://en.wikipedia.org/wiki/City_of_London "City of London") [![](https://upload.wikimedia.org/wikipedia/commons/thumb/2/2c/Microcosm_of_London_Plate_101_-_South_Sea_House%2C_Dividend_Hall_%28tone%29.jpg/250px-Microcosm_of_London_Plate_101_-_South_Sea_House%2C_Dividend_Hall_%28tone%29.jpg)](https://en.wikipedia.org/wiki/File:Microcosm_of_London_Plate_101_-_South_Sea_House,_Dividend_Hall_\(tone\).jpg) The [Dividend](https://en.wikipedia.org/wiki/Dividend "Dividend") Hall of South Sea House, 1810 [![](https://upload.wikimedia.org/wikipedia/commons/thumb/8/86/South_Sea_House_-_Portal.jpg/250px-South_Sea_House_-_Portal.jpg)](https://en.wikipedia.org/wiki/File:South_Sea_House_-_Portal.jpg) Heraldic grouping above main entrance to the surviving South Sea House, Threadneedle Street, rebuilt after the fire of 1826 [![](https://upload.wikimedia.org/wikipedia/commons/thumb/3/3c/SouthSeaCompany_TradeLabel.png/250px-SouthSeaCompany_TradeLabel.png)](https://en.wikipedia.org/wiki/File:SouthSeaCompany_TradeLabel.png) An early trade label of the South Sea Company, for export of finest English [serge](https://en.wikipedia.org/wiki/Serge_\(fabric\) "Serge (fabric)") cloth. The letters circumscribing the seal below should read "SS\&FC", for "South Sea and Fishery Company"[\[2\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-2) [![](https://upload.wikimedia.org/wikipedia/commons/thumb/3/33/ShareCertificate_SouthSeaCompany_1733.jpg/250px-ShareCertificate_SouthSeaCompany_1733.jpg)](https://en.wikipedia.org/wiki/File:ShareCertificate_SouthSeaCompany_1733.jpg) 1723 pro-forma power of attorney signed by a shareholder of the South Sea Company showing the company's coat of arms and the Latin motto A Gadibus usque Auroram ("From [Cádiz](https://en.wikipedia.org/wiki/C%C3%A1diz "Cádiz") to Dawn", [Juvenal](https://en.wikipedia.org/wiki/Juvenal "Juvenal"), [Satires](https://en.wikipedia.org/wiki/Satires_\(Juvenal\) "Satires (Juvenal)"), 10) [![](https://upload.wikimedia.org/wikipedia/commons/thumb/c/c2/Edward_Matthew_Ward_%281816-1879%29_-_The_South_Sea_Bubble%2C_a_Scene_in_%27Change_Alley_in_1720_-_N00432_-_National_Gallery.jpg/250px-Edward_Matthew_Ward_%281816-1879%29_-_The_South_Sea_Bubble%2C_a_Scene_in_%27Change_Alley_in_1720_-_N00432_-_National_Gallery.jpg)](https://en.wikipedia.org/wiki/File:Edward_Matthew_Ward_\(1816-1879\)_-_The_South_Sea_Bubble,_a_Scene_in_%27Change_Alley_in_1720_-_N00432_-_National_Gallery.jpg) [The South Sea Bubble](https://en.wikipedia.org/wiki/The_South_Sea_Bubble "The South Sea Bubble") by [Edward Matthew Ward](https://en.wikipedia.org/wiki/Edward_Matthew_Ward "Edward Matthew Ward"), 1847. A [Hogarthian](https://en.wikipedia.org/wiki/Hogarthian "Hogarthian") image of the 1720 "South Sea Bubble" now in the [Tate Britain](https://en.wikipedia.org/wiki/Tate_Britain "Tate Britain") The South Sea Company (officially: either The Governor and Company of the merchants of Great Britain, trading to the South Seas and other parts of America and for the encouragement of the Fishery or the Governor and Company of merchants of Great Britain, trading to the South-Seas, and other parts of America, and for encouraging the Fishery)[\[a\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-3)[\[3\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-4) was a British [joint-stock company](https://en.wikipedia.org/wiki/Joint-stock_company "Joint-stock company") founded in January 1711, created as a [public-private partnership](https://en.wikipedia.org/wiki/Public-private_partnership "Public-private partnership") to [consolidate](https://en.wikipedia.org/wiki/Debt_consolidation "Debt consolidation") and reduce the cost of the [national debt](https://en.wikipedia.org/wiki/National_debt "National debt"). To generate income, in 1713 the company was granted a monopoly (the [Asiento de Negros](https://en.wikipedia.org/wiki/Asiento_de_Negros "Asiento de Negros")) to supply African slaves to the islands in the "[South Seas](https://en.wikipedia.org/wiki/South_Seas "South Seas")" and [South America](https://en.wikipedia.org/wiki/South_America "South America").[\[4\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-:0-5) When the company was created, Britain was involved in the [War of the Spanish Succession](https://en.wikipedia.org/wiki/War_of_the_Spanish_Succession "War of the Spanish Succession") and Spain and Portugal controlled most of South America. There was thus no realistic prospect that trade would take place, and as it turned out, the Company never realised any significant profit from its monopoly. However, Company stock rose greatly in value as it expanded its operations dealing in government debt, and peaked in 1720 before suddenly collapsing to little above its original [flotation](https://en.wikipedia.org/wiki/Flotation_\(shares\) "Flotation (shares)") price. The notorious [economic bubble](https://en.wikipedia.org/wiki/Economic_bubble "Economic bubble") thus created, which ruined thousands of investors, became known as the South Sea Bubble. The [Bubble Act 1720](https://en.wikipedia.org/wiki/Bubble_Act_1720 "Bubble Act 1720") ([6 Geo. 1](https://en.wikipedia.org/wiki/6_Geo._1 "6 Geo. 1") c. 18), which forbade the creation of joint-stock companies without [royal charter](https://en.wikipedia.org/wiki/Royal_charter "Royal charter"), was promoted by the South Sea Company itself before its collapse. In Great Britain, many investors were ruined by the share-price collapse, and as a result, the national economy diminished substantially. The founders of the scheme engaged in [insider trading](https://en.wikipedia.org/wiki/Insider_trading "Insider trading"), by using their advance knowledge of the timings of national debt consolidations to make large profits from purchasing debt in advance. Huge bribes were given to politicians to support the [acts of Parliament](https://en.wikipedia.org/wiki/Acts_of_Parliament "Acts of Parliament") necessary for the scheme.[\[5\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-6) Company money was used to deal in its own shares, and selected individuals purchasing shares were given cash loans backed by those same shares to spend on purchasing more shares. The expectation of profits from trade with South America was talked up to encourage the public to purchase shares, but the bubble prices reached far beyond what the actual profits of the business (namely the slave trade) could justify.[\[6\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-:1-7) A parliamentary inquiry was held after the bursting of the bubble to discover its causes. A number of politicians were disgraced, and people found to have profited unlawfully from the company had personal assets confiscated proportionate to their gains (most had already been rich and remained so). Finally, the Company was restructured and continued to operate for more than a century after the Bubble. The headquarters were in [Threadneedle Street](https://en.wikipedia.org/wiki/Threadneedle_Street "Threadneedle Street"), at the centre of the [City of London](https://en.wikipedia.org/wiki/City_of_London "City of London"), the financial district of the capital. At the time of these events, the [Bank of England](https://en.wikipedia.org/wiki/Bank_of_England "Bank of England") was also a private company dealing in national debt, and the crash of its rival confirmed its position as banker to the British government.[\[7\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-8) When in August 1710 [Robert Harley](https://en.wikipedia.org/wiki/Robert_Harley,_1st_Earl_of_Oxford_and_Earl_Mortimer "Robert Harley, 1st Earl of Oxford and Earl Mortimer") was appointed [Chancellor of the Exchequer](https://en.wikipedia.org/wiki/Chancellor_of_the_Exchequer "Chancellor of the Exchequer"), the government had already become reliant on the [Bank of England](https://en.wikipedia.org/wiki/Bank_of_England "Bank of England"), a privately owned company chartered 16 years previously, which had obtained a monopoly as the lender to the government. The government had become dissatisfied with the service it was receiving and Harley was actively seeking new ways to improve the national finances. A new parliament met in November 1710 resolved to attend to the national finances, which were suffering from the pressures of [two simultaneous wars](https://en.wikipedia.org/wiki/List_of_wars_involving_Great_Britain "List of wars involving Great Britain"): the [War of the Spanish Succession](https://en.wikipedia.org/wiki/War_of_the_Spanish_Succession "War of the Spanish Succession") with France, which ended in 1713, and the [Great Northern War](https://en.wikipedia.org/wiki/Great_Northern_War "Great Northern War"), which was not to end until 1721. Harley came prepared, with detailed accounts describing the situation of the national debt, which was customarily a piecemeal arrangement, with each government department borrowing independently as the need arose. He released the information steadily, continually adding new reports of debts incurred and scandalous expenditure, until in January 1711 the House of Commons agreed to appoint a committee to investigate the entire debt. The committee included Harley himself, the two [Auditors of the Imprests](https://en.wikipedia.org/wiki/Auditor_of_the_Imprests "Auditor of the Imprests") (whose task was to investigate government spending), [Edward Harley](https://en.wikipedia.org/wiki/Edward_Harley_\(1664%E2%80%931735\) "Edward Harley (1664–1735)") (the Chancellor's brother), Paul Foley (the Chancellor's brother-in-law), the [Secretary of the Treasury](https://en.wikipedia.org/wiki/Secretary_to_the_Treasury "Secretary to the Treasury"), [William Lowndes](https://en.wikipedia.org/wiki/William_Lowndes_\(British_politician\) "William Lowndes (British politician)") (who had had significant responsibility for reminting the entire debased British coinage in 1696) and [John Aislabie](https://en.wikipedia.org/wiki/John_Aislabie "John Aislabie") (who represented the [October Club](https://en.wikipedia.org/wiki/October_Club_\(Tory_Party\) "October Club (Tory Party)"), a group of about 200 MPs who had agreed to vote together).[\[8\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-9) Harley's first concern was to find £300,000 for the next quarter's payroll for the British army operating on the Continent under the [Duke of Marlborough](https://en.wikipedia.org/wiki/Duke_of_Marlborough "Duke of Marlborough"). This funding was provided by a private consortium of Edward Gibbon (grandfather of [the historian](https://en.wikipedia.org/wiki/Edward_Gibbon#Early_life:_1737%E2%80%931752 "Edward Gibbon")), [George Caswall](https://en.wikipedia.org/wiki/George_Caswall "George Caswall"), and [Hoare's Bank](https://en.wikipedia.org/wiki/Hoare%27s_Bank "Hoare's Bank"). The Bank of England had been operating a [lottery](https://en.wikipedia.org/wiki/Lottery "Lottery") on behalf of the government, but in 1710 this had produced less revenue than expected and another begun in 1711 was also performing poorly; Harley granted the authority to sell tickets to [John Blunt](https://en.wikipedia.org/wiki/Sir_John_Blunt,_1st_Baronet "Sir John Blunt, 1st Baronet"), a director of the [Hollow Sword Blade Company](https://en.wikipedia.org/wiki/Hollow_Sword_Blade_Company "Hollow Sword Blade Company"), which despite its name was an unofficial bank. Sales commenced on 3 March 1711 and tickets had completely sold out by 7 March, making it the first truly successful English state lottery.[\[9\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-10) The success was shortly followed by another larger lottery, "The Two Million Adventure" or "The Classis", with tickets costing £100, with a top prize of £20,000 and every ticket winning a prize of at least £10. Although prizes were advertised by their total value, they were in fact paid out by instalments in the form of a fixed [annuity](https://en.wikipedia.org/wiki/Annuity "Annuity") over a period of years, so that the government effectively held the prize money as borrowings until the whole value had been paid out to the winners. Marketing was handled by members of the Sword Blade syndicate, Gibbon selling £200,000 of tickets and earning £4,500 commission, and Blunt selling £993,000. Charles Blunt (a relative) was made Paymaster of the lottery with expenses of £5,000. ### Conception of the company \[[edit](https://en.wikipedia.org/w/index.php?title=South_Sea_Company&action=edit&section=2 "Edit section: Conception of the company")\] The national debt investigation concluded that a total of £9 million was owed by the government, with no specifically allocated income to pay it off. Robert Harley and John Blunt had jointly devised a scheme to consolidate this debt in much the same way that the Bank of England had consolidated previous debts, although the Bank still held the monopoly for operating as a bank. All holders of the debt (creditors) would be required to surrender it to a new company formed for the purpose, the South Sea Company, which in return would issue them shares in itself to the same nominal value. The government would make an annual payment to the Company of £568,279, equating to 6% interest plus expenses, which would then be redistributed to the shareholders as a dividend. The company was also granted a monopoly to trade with South America, a potentially lucrative enterprise, but one controlled by Spain – with which Britain was at war.[\[10\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-auto2-11) At that time, when the continent of America was being explored and colonised, Europeans applied the term "South Seas" only to South America and surrounding waters. The concession both held out the potential for future profits and encouraged a desire for an end to the war, necessary if any profits were to be made. The original suggestion for the South Sea scheme came from [William Paterson](https://en.wikipedia.org/wiki/William_Paterson_\(banker\) "William Paterson (banker)"), one of the founders of the Bank of England and of the financially disastrous [Darien Scheme](https://en.wikipedia.org/wiki/Darien_Scheme "Darien Scheme").[\[10\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-auto2-11) Harley was rewarded for delivering the scheme by being created Earl of Oxford on 23 May 1711 and was promoted to [Lord High Treasurer](https://en.wikipedia.org/wiki/Lord_High_Treasurer "Lord High Treasurer"). With a more secure position, he began secret peace negotiations with France. ### Initial speculation \[[edit](https://en.wikipedia.org/w/index.php?title=South_Sea_Company&action=edit&section=3 "Edit section: Initial speculation")\] The scheme to thus consolidate all government debt and to manage it better in the future held out the prospect of all existing creditors being repaid the full nominal value of their loans, which at the time before the scheme was publicised were valued at a discounted rate of £55 per £100 nominal value, as the lotteries were discredited. The government's ability to repay in full was widely doubted. Thus bonds representing the debt intended to be consolidated under the scheme were available for purchase on the open market at a price that allowed anyone with advance knowledge to buy and resell in the immediate future at a high profit, for as soon as the scheme became publicised the bonds would once again be worth at least their nominal value, as repayment was now more certain a prospect. This anticipation of gain made it possible for Harley to bring further financial supporters into the scheme, such as James Bateman and [Theodore Janssen](https://en.wikipedia.org/wiki/Theodore_Janssen "Theodore Janssen").[\[11\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-12) [Daniel Defoe](https://en.wikipedia.org/wiki/Daniel_Defoe "Daniel Defoe") commented:[\[12\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-13) > Unless the Spaniards are to be divested of common sense, infatuate, and given up, abandoning their own commerce, throwing away the only valuable stake they have left in the world, and in short, bent on their own ruin, we cannot suggest that they will ever, on any consideration, or for any equivalent, part with so valuable, indeed so inestimable a jewel, as the exclusive trade to their own plantations. — An Essay on the South-Sea Trade The originators of the scheme knew that there was no money to invest in a trading venture, and no realistic expectation that there would ever be a trade to exploit, but nevertheless, the potential for great wealth was widely publicised at every opportunity, so as to encourage interest in the scheme. The founders' objective was to create a company that would enable them to become wealthy and offer opportunities for further government contracts.[\[13\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-14) [![](https://upload.wikimedia.org/wikipedia/commons/thumb/d/d4/Bubble.folly.jpg/250px-Bubble.folly.jpg)](https://en.wikipedia.org/wiki/File:Bubble.folly.jpg) A bubble-era stock promoter, caricatured as a "[night wind hawker](https://en.wikipedia.org/wiki/Pump_and_dump "Pump and dump")" (The Great Picture of Folly, 1720) The [royal charter](https://en.wikipedia.org/wiki/Royal_charter "Royal charter") for the company, based on that of the Bank of England, was drawn up by Blunt who was paid £3,846 for his services in setting up the company. Directors would be elected every three years and shareholders would meet twice a year. The company employed a cashier, secretary and accountant. The governor was intended as an honorary position, and was later customarily held by the monarch. The charter allowed the full court of directors to nominate a smaller committee to act on any matter on its behalf. Directors of the Bank of England and of the [East India Company](https://en.wikipedia.org/wiki/East_India_Company "East India Company") were barred from being directors of the South Sea Company. Any ship of more than 500 tons owned by the company was to have a Church of England clergyman on board. The surrender of government debt for company stock was to occur in five lots. The first two of these, totalling £2.75 million from about 200 large investors, had already been arranged before the company's charter was issued on 10 September 1711. The government surrendered £0.75 million of its debt held by different departments (at that time individual office holders were at liberty to invest government funds under their control to their own advantage before it was required for government expenditure). Harley surrendered £8,000 of debt and was appointed Governor of the new company. Blunt, Caswall and Sawbridge together surrendered £65,000, Janssen £25,000 of his own plus £250,000 from a foreign consortium, Decker £49,000, Sir Ambrose Crawley £36,791. The company had a Sub-Governor, Bateman; a Deputy Governor, Ongley; and 30 ordinary directors. Nine of the directors were politicians, five were members of the Sword Blade consortium, and seven more were financial magnates who had been attracted to the scheme.[\[14\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-15) The company created a coat of arms with the motto A Gadibus usque ad Auroram ("From Cádiz to Dawn", from [Juvenal](https://en.wikipedia.org/wiki/Juvenal "Juvenal"), [Satires](https://en.wikipedia.org/wiki/Satires_\(Juvenal\) "Satires (Juvenal)"), 10) and rented a large house in the City of London as its headquarters. Seven sub-committees were created to handle its everyday business, the most important being the "committee for the affairs of the company". The Sword Blade company was retained as the company's banker and on the strength of its new government connections issued notes in its own right, notwithstanding the Bank of England's monopoly. The task of the Company Secretary was to oversee trading activities; the Accountant, Grigsby, was responsible for registering and issuing stock; and the Cashier, Robert Knight, acted as Blunt's personal assistant at a salary of £200 per annum.[\[15\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-16) [![](https://upload.wikimedia.org/wikipedia/commons/thumb/9/98/Slavers-4496.jpg/250px-Slavers-4496.jpg)](https://en.wikipedia.org/wiki/File:Slavers-4496.jpg) African slaves taken aboard a slave ship The [Treaty of Utrecht](https://en.wikipedia.org/wiki/Treaty_of_Utrecht "Treaty of Utrecht") of 1713 granted Britain an [Asiento de Negros](https://en.wikipedia.org/wiki/Asiento_de_Negros "Asiento de Negros") lasting 30 years to supply the Spanish colonies with 4,800 enslaved Africans ("slaves") per year. Britain was permitted to open offices in [Buenos Aires](https://en.wikipedia.org/wiki/Buenos_Aires "Buenos Aires"), [Caracas](https://en.wikipedia.org/wiki/Caracas "Caracas"), [Cartagena](https://en.wikipedia.org/wiki/Cartagena,_Colombia "Cartagena, Colombia"), [Havana](https://en.wikipedia.org/wiki/Havana "Havana"), [Panama](https://en.wikipedia.org/wiki/Panama "Panama"), [Portobello](https://en.wikipedia.org/wiki/Portobelo,_Col%C3%B3n "Portobelo, Colón") and [Veracruz](https://en.wikipedia.org/wiki/Veracruz_\(city\) "Veracruz (city)") to arrange the [Atlantic slave trade](https://en.wikipedia.org/wiki/Atlantic_slave_trade "Atlantic slave trade"). One ship of no more than 500 tons could be sent to one of these places each year (the Navío de Permiso) with general trade goods. One quarter of the profits were to be reserved for the King of Spain. There was provision for two extra sailings at the start of the contract. The Asiento was granted in the name of [Queen Anne](https://en.wikipedia.org/wiki/Anne,_Queen_of_Great_Britain "Anne, Queen of Great Britain") and then contracted to the company.[\[16\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-17) By July the company had arranged contracts with the [Royal African Company](https://en.wikipedia.org/wiki/Royal_African_Company "Royal African Company") to supply the African slaves to Jamaica. Ten pounds was paid for a slave aged over 16, £8 for one under 16 but over 10. Two-thirds were to be male, and 90 per cent adult. The company transported 1,230 slaves from Jamaica to America in the first year, plus any that might have been added (against standing instructions) by the ship's captains on their own behalf. On arrival of the first cargoes, the local authorities refused to accept the Asiento, which had still not been officially confirmed there by the Spanish authorities. The slaves were eventually sold at a loss in the West Indies.[\[17\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-18) In 1714 the government announced that a quarter of profits would be reserved for [Queen Anne](https://en.wikipedia.org/wiki/Anne,_Queen_of_Great_Britain "Anne, Queen of Great Britain") and a further 7.5 per cent for a financial adviser, Manasseh Gilligan. Some company board members refused to accept the contract on these terms, and the government was obliged to reverse its decision.[\[18\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-19) Despite these setbacks, the company continued, having raised £200,000 to finance the operations. In 1714 2,680 slaves were carried, and for 1716–1717, 13,000 more, but the trade continued to be unprofitable. An import duty of 33 [pieces of eight](https://en.wikipedia.org/wiki/Pieces_of_eight "Pieces of eight") was charged on each slave (although for this purpose some slaves might be counted only as a fraction of a slave, depending on quality). One of the extra trade ships was sent to Cartagena in 1714 carrying woollen goods, despite warnings that there was no market for them there, and they remained unsold for two years.[\[19\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-20) It has been estimated that the company transported a little over 34,000 slaves with mortality comparable to its competitors, showing that slave trading was a significant part of the company's business and that it was carried out to the standards of the day.[\[4\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-:0-5) Its trading activities offered a financial motive for investment in the company.[\[4\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-:0-5) ### Changes of management \[[edit](https://en.wikipedia.org/w/index.php?title=South_Sea_Company&action=edit&section=6 "Edit section: Changes of management")\] The company was dependent on the goodwill of the government; when the government changed, so too did the company board. In 1714 one of the directors who had been sponsored by Harley, Arthur Moore, had attempted to send 60 tons of private goods on board the company ship. He was dismissed as a director, but the result was the beginning of Harley's fall from favour with the company. On 27 July 1714, Harley was replaced as Lord High Treasurer as a result of a disagreement that had broken out within the Tory faction in Parliament. Queen Anne died on 1 August 1714 and at the election of directors in 1715 the Prince of Wales (the future King [George II](https://en.wikipedia.org/wiki/George_II_of_Great_Britain "George II of Great Britain")) was elected as governor of the company. The new King [George I](https://en.wikipedia.org/wiki/George_I_of_Great_Britain "George I of Great Britain") and the Prince of Wales both had large holdings in the company, as did some prominent Whig politicians, including [James Craggs the Elder](https://en.wikipedia.org/wiki/James_Craggs_the_Elder "James Craggs the Elder"), the [Earl of Halifax](https://en.wikipedia.org/wiki/Charles_Montagu,_1st_Earl_of_Halifax "Charles Montagu, 1st Earl of Halifax") and Sir [Joseph Jekyll](https://en.wikipedia.org/wiki/Joseph_Jekyll "Joseph Jekyll"). Craggs, as Postmaster General, was responsible for intercepting mail on behalf of the government to obtain political and financial information. All Tory politicians were removed from the board and replaced with businessmen. The Whigs Horatio Townshend, brother in law of [Robert Walpole](https://en.wikipedia.org/wiki/Robert_Walpole "Robert Walpole") and the [Duke of Argyll](https://en.wikipedia.org/wiki/John_Campbell,_2nd_Duke_of_Argyll "John Campbell, 2nd Duke of Argyll") were elected directors. The change of government led to a revival of the company's share value, which had fallen below its issue price. The previous government had failed to make the interest payments to the company for the preceding two years, owing more than £1 million. The new administration insisted that the debt be written off, but allowed the company to issue new shares to stock holders to the value of the missed payments. At around £10 million, this now represented half the share capital issued in the entire country. In 1714 the company had 2,000 to 3,000 shareholders, more than either of its rivals.[\[20\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-21) By the time of the next directors' elections in 1718 a schism within the Whigs between Walpole's faction supporting the Prince of Wales and [James Stanhope](https://en.wikipedia.org/wiki/James_Stanhope,_1st_Earl_Stanhope "James Stanhope, 1st Earl Stanhope")'s supporting the King. Argyll and Townshend were dismissed as directors, as were the surviving Tories Sir Richard Hoare and George Pitt, and King George I became governor. Four MPs remained directors, as did six people holding government financial offices. The Sword Blade Company remained bankers to the South Sea and had flourished despite the company's dubious legal position. Blunt and Sawbridge remained South Sea directors, and they had been joined by Gibbon and Child. Caswall had retired as a South Sea director to concentrate on the Sword Blade business. In November 1718 Sub-Governor Bateman and Deputy Governor Shepheard both died. Leaving aside the honorary position of Governor, this left the company suddenly without its two most senior and experienced directors. They were replaced by [Sir John Fellowes](https://en.wikipedia.org/wiki/Sir_John_Fellowes "Sir John Fellowes") as Sub-Governor and Charles Joye as Deputy.[\[21\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-22) In 1718 war broke out with Spain once again, in the [War of the Quadruple Alliance](https://en.wikipedia.org/wiki/War_of_the_Quadruple_Alliance "War of the Quadruple Alliance"). The company's assets in South America were seized, at a cost claimed by the company to be £300,000. Any prospect of profit from trade, for which the company had purchased ships and had been planning its next ventures, disappeared.[\[22\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-23) ## Refinancing government debt \[[edit](https://en.wikipedia.org/w/index.php?title=South_Sea_Company&action=edit&section=8 "Edit section: Refinancing government debt")\] Events in France now came to influence the future of the company. A Scottish economist and financier, [John Law](https://en.wikipedia.org/wiki/John_Law_\(economist\) "John Law (economist)"), exiled after killing a man in a duel, had travelled around Europe before settling in France. There he founded a bank, which in December 1718 became the Banque Royale, national bank of France, while Law himself was granted sweeping powers to control the economy of France, which operated largely by royal decree. Law's remarkable success was known in financial circles throughout Europe, and came to inspire Blunt and his associates to make greater efforts to grow their own concerns.[\[23\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-24) In February 1719 Craggs explained to the House of Commons a new scheme for improving the national debt by converting the annuities issued after the 1710 lottery into South Sea stock. By an act of Parliament, the [National Debt Act 1719](https://en.wikipedia.org/w/index.php?title=National_Debt_Act_1719&action=edit&redlink=1 "National Debt Act 1719 (page does not exist)") ([6 Geo. 1](https://en.wikipedia.org/wiki/6_Geo._1 "6 Geo. 1"). c. 4), the company was granted the right to issue £1,150 of new stock for every £100 per annum of annuity which was surrendered. The government would pay 5 per cent per annum on the stock created, which would halve their annual bill. The conversion was voluntary, amounting to £2.5 million new stock if all converted. The company was to make an additional new loan to the government pro rata up to £750,000, again at 5 per cent.[\[24\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-25) In March there was an abortive attempt to restore the Old Pretender, [James Edward Stuart](https://en.wikipedia.org/wiki/James_Edward_Stuart "James Edward Stuart"), to the throne of Britain, with a small landing of troops in Scotland. They were defeated at the [Battle of Glen Shiel](https://en.wikipedia.org/wiki/Battle_of_Glen_Shiel "Battle of Glen Shiel") on 10 June. The South Sea company presented the offer to the public in July 1719. The Sword Blade company spread a rumour that the Pretender had been captured, and the general euphoria induced the South Sea share price to rise from £100, where it had been in the spring, to £114. Annuitants were still paid out at the same money value of shares, the company keeping the profit from the rise in value before issuing. About two-thirds of the annuities were exchanged. ### Trading more debt for equity \[[edit](https://en.wikipedia.org/w/index.php?title=South_Sea_Company&action=edit&section=9 "Edit section: Trading more debt for equity")\] [![](https://upload.wikimedia.org/wikipedia/commons/thumb/1/17/William_Hogarth_-_The_South_Sea_Scheme.png/500px-William_Hogarth_-_The_South_Sea_Scheme.png)](https://en.wikipedia.org/wiki/File:William_Hogarth_-_The_South_Sea_Scheme.png) [William Hogarth](https://en.wikipedia.org/wiki/William_Hogarth "William Hogarth"), [Emblematical Print on the South Sea Scheme](https://en.wikipedia.org/wiki/Emblematical_Print_on_the_South_Sea_Scheme "Emblematical Print on the South Sea Scheme") (1721). In the bottom left corner are Protestant, Catholic, and Jewish figures gambling, while in the middle there is a huge machine, like a merry-go-round, which people are boarding. At the top is a goat, written below which is "Who'l Ride". The people are scattered around the picture with a sense of disorder, while the progress of the well-dressed people towards the ride in the middle represents the foolishness of the crowd in buying stock in the South Sea Company, which spent more time issuing stock than anything else. Honor at left is dismembered; Honesty in center is [broken on the wheel](https://en.wikipedia.org/wiki/Broken_on_the_wheel "Broken on the wheel") and at lower right trade lies dead. The 1719 scheme was a distinct success for the government and they sought to repeat it. Negotiations took place between Aislabie and Craggs for the government and Blunt, Cashier Knight and his assistant and Caswell. Janssen, the Sub Governor and Deputy Governor were also consulted but negotiations remained secret from most of the company. News from France was of fortunes being made investing in Law's bank, whose shares had risen sharply. Money was moving around Europe, and other flotations threatened to soak up capital (two insurance schemes in December 1719 each sought to raise £3 million).[\[25\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-26) Plans were made for a new scheme to take over most of the unconsolidated national debt of Britain (£30,981,712) in exchange for company shares. Annuities were valued as a lump sum necessary to produce the annual income over the original term at an assumed interest of 5 per cent, which favoured those with shorter terms still to run. The government agreed to pay the same amount to the company for all the fixed-term repayable debt as it had been paying before, but after seven years the 5 per cent interest rate would fall to 4 per cent on the new annuity debt and also that assumed previously. After the first year, the company was to give the government £3 million in four quarterly instalments. New stock would be created at a face value equal to the debt, but the share price was still rising and sales of the remaining stock, i.e. the excess of the total market value of the stock over the amount of the debt, would be used to raise the government fee plus a profit for the company. The more the price rose in advance of conversion, the more the company would make. Before the scheme, payments were costing the government £1.5 million per year.[\[26\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-auto-27) In summary, the total government debt in 1719 was £50 million: - £18.3m was held by three large corporations: - £3.4m by the [Bank of England](https://en.wikipedia.org/wiki/Bank_of_England "Bank of England") - £3.2m by the [British East India Company](https://en.wikipedia.org/wiki/British_East_India_Company "British East India Company") - £11.7m by the South Sea Company - Privately held redeemable debt amounted to £16.5m - £15m consisted of irredeemable annuities, long-fixed-term annuities of 72–87 years, and short annuities of 22 years remaining to expiry. The purpose of this conversion was similar to the old one, debt holders and annuitants might receive less return in total, but an illiquid investment was transformed into shares that could be readily traded. Shares backed by national debt were considered a safe investment and a convenient way to hold and move money, far easier and safer than metal coins. The only alternative safe asset, land, was much harder to sell and transfer of its ownership was legally much more complex. The government received a cash payment and lower interest on the debt and gained control over when the debt had to be repaid, which was not before seven years but then at its discretion. This avoided the risk that debt might become repayable when the government needed to borrow more, and could be forced into paying higher interest rates. The payment to the government was to be used to buy any debt not subscribed to the scheme, which although it helped the government, also helped the company by removing possibly competing securities from the market, including large holdings by the Bank of England.[\[26\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-auto-27) Company stock was now trading at £123, so the issue amounted to an injection of £5 million of new money into a booming economy just as interest rates were falling. [Gross Domestic Product](https://en.wikipedia.org/wiki/Gross_Domestic_Product "Gross Domestic Product") (GDP) for Britain at this point was estimated as £64.4 million.[\[27\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-28) #### Public announcement \[[edit](https://en.wikipedia.org/w/index.php?title=South_Sea_Company&action=edit&section=10 "Edit section: Public announcement")\] [![](https://upload.wikimedia.org/wikipedia/commons/thumb/4/49/South_Sea_Annuities_share_certificate%2C_issued_November_13%2C_1784._On_display_at_the_British_Museum_in_London.jpg/250px-South_Sea_Annuities_share_certificate%2C_issued_November_13%2C_1784._On_display_at_the_British_Museum_in_London.jpg)](https://en.wikipedia.org/wiki/File:South_Sea_Annuities_share_certificate,_issued_November_13,_1784._On_display_at_the_British_Museum_in_London.jpg) South Sea Annuities share certificate, issued 13 November 1784. On display at the British Museum in London On 21 January the plan was presented to the board of the South Sea Company, and on 22 January [Chancellor of the Exchequer](https://en.wikipedia.org/wiki/Chancellor_of_the_Exchequer "Chancellor of the Exchequer") [John Aislabie](https://en.wikipedia.org/wiki/John_Aislabie "John Aislabie") presented it to Parliament. The House was stunned into silence but on recovering, proposed that the Bank of England should be invited to make a better offer. The South Sea increased its cash payment to £3.5 million, while the Bank proposed to undertake the conversion with a payment of £5.5 million and a fixed conversion price of £170 per £100 face-value Bank stock. On 1 February, the company negotiators led by Blunt raised their offer to £4 million plus a proportion of £3.5 million depending on how much of the debt was converted. They also agreed that the interest rate would decrease after four years instead of seven, and agreed to sell on behalf of the government £1 million of Exchequer bills (formerly handled by the Bank). The House accepted the South Sea offer and Bank stock fell sharply.[\[28\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-29) Perhaps the first sign of difficulty came when the South Sea Company announced that its Christmas 1719 dividend would be deferred for 12 months. The company embarked on a show of gratitude to its friends. Select individuals were sold a parcel of company stock at the current price. The transactions were recorded by Knight in the names of intermediaries, but no payments were received and no stock issued – the company had none to issue until the conversion of debt began. The individual received an option to sell his stock back to the company at any date at whatever market price might then apply. Shares went to the Craggs: [the Elder](https://en.wikipedia.org/wiki/James_Craggs_the_Elder "James Craggs the Elder") and [the Younger](https://en.wikipedia.org/wiki/James_Craggs_the_Younger "James Craggs the Younger"); [Lord Gower](https://en.wikipedia.org/wiki/John_Leveson-Gower,_1st_Earl_Gower "John Leveson-Gower, 1st Earl Gower"); [Lord Lansdowne](https://en.wikipedia.org/wiki/George_Granville,_1st_Baron_Lansdowne "George Granville, 1st Baron Lansdowne"); and four other MPs. [Lord Sunderland](https://en.wikipedia.org/wiki/Charles_Spencer,_3rd_Earl_of_Sunderland "Charles Spencer, 3rd Earl of Sunderland") would gain £500 for every pound that stock rose; George I's mistress, their children and Countess Platen £120 per pound rise, Aislabie £200 per pound, [Lord Stanhope](https://en.wikipedia.org/wiki/James_Stanhope,_1st_Earl_Stanhope "James Stanhope, 1st Earl Stanhope") £600 per pound. Others invested money, including the [Richard Hampden](https://en.wikipedia.org/wiki/Richard_Hampden_\(1674%E2%80%931728\) "Richard Hampden (1674–1728)") the Treasurer to the Navy, who invested £25,000 of government money on his behalf.[\[29\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-30) The proposal was accepted in a slightly altered form in April 1720. Crucial in this conversion was the proportion of holders of irredeemable annuities who could be tempted to convert their securities at a high price for the new shares. (Holders of redeemable debt had no other choice but to subscribe.) The South Sea Company could set the conversion price but could not diverge much from the market price of its shares. The company ultimately acquired 85 per cent of the redeemables and 80 per cent of the irredeemables. [![](https://upload.wikimedia.org/wikipedia/commons/e/ef/South-sea-bubble-chart.png)](https://en.wikipedia.org/wiki/File:South-sea-bubble-chart.png) Chart of company stock prices. The company then set to talking up its stock with "the most extravagant rumours" of the value of its potential trade in the New World; this was followed by a wave of "speculating frenzy". The share price had risen from the time the scheme was proposed, from £128 in January 1720, to £175 in February, £330 in March and following the scheme's acceptance £550 at the end of May.[\[30\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-31) What may have supported the company's high multiples (its [P/E ratio](https://en.wikipedia.org/wiki/P/E_ratio "P/E ratio")) was a fund of credit (known to the market) of £70 million available for commercial expansion which had been made available through substantial support, apparently, by Parliament and the King.[\[31\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-32) Shares in the company were "sold" to politicians at the market price; rather than paying for the shares, these recipients simply held the shares, with the option of selling them back to the company at any time, receiving the increase in market price. This method, as well as winning over the heads of government, the King's mistress, et al., had the advantage of binding their interests to the interests of the company, to secure profits, the stock needed to rise. By publicising the names of their elite stockholders, the company managed to clothe itself in an aura of legitimacy, which attracted and kept other buyers.[\[32\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-33) The South Sea Company was by no means the only company seeking to raise money from investors in 1720. A large number of other joint-stock companies, making extravagant (sometimes fraudulent) claims about foreign or other ventures or bizarre schemes, had been created. Others represented potentially sound, although novel, schemes, such as for founding insurance companies. These were nicknamed "Bubbles". Some of the companies had no legal basis, while others (such as the [Hollow Sword Blade Company](https://en.wikipedia.org/wiki/Hollow_Sword_Blade_Company "Hollow Sword Blade Company"), which acted as the South Sea Company's banker), used existing chartered companies for purposes different from those named at their creation. The York Buildings Company was set up to provide water to London, but was purchased by Case Billingsley who used it to purchase confiscated Jacobite estates in Scotland, which then formed the assets of an insurance company.[\[33\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-auto1-34) On 22 February 1720, John Hungerford raised the question of bubble companies in the House of Commons, and persuaded the House to set up a committee, which he chaired, to investigate. He identified a number of companies which between them sought to raise £40 million in capital. The committee investigated the companies, establishing a principle that companies should not be operating outside the objects specified in their charters. A potential embarrassment for the South Sea was avoided when the question of the Hollow Sword Blade Company arose. Difficulty was avoided by packing the committee with MPs who were supporters of the South Sea, and voting down by 75 to 25 the proposal to investigate the Hollow Sword. (At this time, committees of the House were either 'Open' or 'secret'. A secret committee was one with a fixed set of members who could vote on its proceedings. By contrast, any MP could join in with an 'open' committee and vote on its proceedings.) Stanhope, who was a member of the committee, received £50,000 of the 'resaleable' South Sea stock from Sawbridge, a director of the Hollow Sword, at about this time. Hungerford had previously been expelled from the Commons for accepting a bribe.[\[33\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-auto1-34) Amongst the bubble companies investigated were two supported by Lords Onslow and Chetwynd respectively, for insuring shipping. These were severely criticised and the questionable dealings of the Attorney-General and Solicitor-General in trying to obtain charters for the companies led to both being replaced. The schemes had the support of [Walpole](https://en.wikipedia.org/wiki/Walpole "Walpole") and [Craggs](https://en.wikipedia.org/wiki/James_Craggs_the_Younger "James Craggs the Younger"), so that the larger part of the [Bubble Act 1720](https://en.wikipedia.org/wiki/Bubble_Act_1720 "Bubble Act 1720") ([6 Geo. 1](https://en.wikipedia.org/wiki/6_Geo._1 "6 Geo. 1"). c. 18) (which resulted in June 1720 from the committee's investigations) was devoted to creating charters for the [Royal Exchange Assurance Corporation](https://en.wikipedia.org/wiki/Royal_Exchange_Assurance_Corporation "Royal Exchange Assurance Corporation") or London Assurance Corporation. The companies were required to pay £300,000 for the privilege. The act required that a joint stock company could be incorporated only by act of Parliament or [royal charter](https://en.wikipedia.org/wiki/Royal_charter "Royal charter"). The prohibition on unauthorised joint stock ventures was not repealed until 1825.[\[34\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-35) The passing of the act gave a boost to the South Sea Company, its shares leaping to £890 in early June. This peak encouraged people to sell; to counterbalance this the company's directors ordered their agents to buy, which succeeded in propping the price up at around £750. [![](https://upload.wikimedia.org/wikipedia/commons/thumb/2/2d/South_Sea_Bubble_Cards-Tree.png/250px-South_Sea_Bubble_Cards-Tree.png)](https://en.wikipedia.org/wiki/File:South_Sea_Bubble_Cards-Tree.png) Tree caricature from Bubble Cards. The price of the stock went up over the course of a year from about £100 to almost £1,000 per share. Its success caused a national frenzy—[herd behaviour](https://en.wikipedia.org/wiki/Herd_behaviour "Herd behaviour")[\[6\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-:1-7)—as all types of people, from peasants to lords, developed a feverish interest in investing, in South Seas primarily but in stocks generally. One famous apocryphal story is of a company that went public in 1720 as "a company for carrying out an undertaking of great advantage, but nobody to know what it is".[\[35\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-36) The price finally reached £1,000 in early August 1720, and the level of selling was such that the price started to fall, dropping back to £100 per share before the year was out.[\[36\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-37) This triggered [bankruptcies](https://en.wikipedia.org/wiki/Bankruptcies "Bankruptcies") amongst those who had bought on credit, and increased sales, including [short selling](https://en.wikipedia.org/wiki/Short_selling "Short selling")\[[citation needed](https://en.wikipedia.org/wiki/Wikipedia:Citation_needed "Wikipedia:Citation needed")\] (i.e., selling borrowed shares in the hope of buying them back at a profit if the price fell). In August 1720, the first of the instalment payments of the first and second money subscriptions on new issues of South Sea stock were due. Earlier in the year John Blunt had come up with an idea to prop up the share price, the company would lend people money to buy its shares. As a result, many shareholders could not pay for their shares except by selling them.\[[citation needed](https://en.wikipedia.org/wiki/Wikipedia:Citation_needed "Wikipedia:Citation needed")\] A scramble for liquidity appeared internationally as "bubbles" were also ending in Amsterdam and Paris. The collapse coincided with the fall of the [Mississippi Company](https://en.wikipedia.org/wiki/Mississippi_Company "Mississippi Company") of [John Law](https://en.wikipedia.org/wiki/John_Law_\(economist\) "John Law (economist)") in France and the price of South Sea shares began to decline.\[[citation needed](https://en.wikipedia.org/wiki/Wikipedia:Citation_needed "Wikipedia:Citation needed")\] By the end of September the stock had fallen to £150. Company failures now extended to [banks](https://en.wikipedia.org/wiki/Bank "Bank") and [goldsmiths](https://en.wikipedia.org/wiki/Goldsmith "Goldsmith"), as they could not collect loans made on the stock, and thousands of individuals were ruined, including many members of the upper class. With investors outraged, [Parliament](https://en.wikipedia.org/wiki/Parliament_of_the_United_Kingdom "Parliament of the United Kingdom") was recalled in December and an investigation began. Reporting in 1721, it revealed widespread [fraud](https://en.wikipedia.org/wiki/Fraud "Fraud") amongst the company directors and corruption in the Cabinet. Among those implicated were [John Aislabie](https://en.wikipedia.org/wiki/John_Aislabie "John Aislabie") (the Chancellor of the Exchequer), James Craggs the Elder (the [Postmaster General](https://en.wikipedia.org/wiki/Postmaster_General_of_the_United_Kingdom "Postmaster General of the United Kingdom")), [James Craggs the Younger](https://en.wikipedia.org/wiki/James_Craggs_the_Younger "James Craggs the Younger") (the [Southern Secretary](https://en.wikipedia.org/wiki/Southern_Secretary "Southern Secretary")), and even [Lord Stanhope](https://en.wikipedia.org/wiki/James_Stanhope,_1st_Earl_Stanhope "James Stanhope, 1st Earl Stanhope") and [Lord Sunderland](https://en.wikipedia.org/wiki/Charles_Spencer,_3rd_Earl_of_Sunderland "Charles Spencer, 3rd Earl of Sunderland") (the heads of the Ministry). Craggs the Elder and Craggs the Younger died in disgrace; the remainder were [impeached](https://en.wikipedia.org/wiki/Impeachment_in_the_United_Kingdom "Impeachment in the United Kingdom") for their corruption. The Commons found Aislabie guilty of the "most notorious, dangerous and infamous corruption" and he was imprisoned.\[[citation needed](https://en.wikipedia.org/wiki/Wikipedia:Citation_needed "Wikipedia:Citation needed")\] The corruption around the South Sea bubble was the impetus for the writing and publication of [Cato's Letters](https://en.wikipedia.org/wiki/Cato%27s_Letters "Cato's Letters") which became an important work first for the [Radical Whigs](https://en.wikipedia.org/wiki/Radical_Whigs "Radical Whigs") and then into the [libertarian](https://en.wikipedia.org/wiki/Libertarian "Libertarian") ideology of the [American Revolution](https://en.wikipedia.org/wiki/American_Revolution "American Revolution").[\[37\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-38) The new [First Lord of the Treasury](https://en.wikipedia.org/wiki/First_Lord_of_the_Treasury "First Lord of the Treasury"), [Robert Walpole](https://en.wikipedia.org/wiki/Robert_Walpole "Robert Walpole"), restored public confidence in the financial system. Public opinion, as shaped by the many prominent men who lost money, demanded revenge. Walpole supervised the process, which removed all 33 of the company directors and stripped them of, on average, 82 per cent of their wealth. The money went to the victims and the stock of the South Sea Company was divided between the Bank of England and the East India Company. Walpole made sure that King George and his mistresses were protected, and by a margin of three votes he managed to save several key government officials from impeachment. In the process, Walpole won plaudits as the saviour of the financial system while establishing himself as the dominant figure in British politics; historians credit him for rescuing the Whig government and the Hanoverian dynasty from disgrace.[\[38\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-39)[\[39\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-40)[\[40\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-41) ### Quotations prompted by the collapse \[[edit](https://en.wikipedia.org/w/index.php?title=South_Sea_Company&action=edit&section=15 "Edit section: Quotations prompted by the collapse")\] Joseph Spence wrote that [Lord Radnor](https://en.wikipedia.org/wiki/Earl_of_Radnor "Earl of Radnor") reported to him "When Sir [Isaac Newton](https://en.wikipedia.org/wiki/Isaac_Newton "Isaac Newton") was asked about the continuance of the rising of South Sea stock ... He answered 'that he could not calculate the madness of people'".[\[41\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-42) He is also quoted, "I can calculate the movement of the stars, but not the madness of men".[\[42\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-43) Newton owned nearly £22,000 in South Sea stock in 1722, but it is not known how much he lost, if anything.[\[43\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-44) There are numerous sources stating he lost up to £20,000[\[44\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-45) (equivalent to £4.21 million in 2025).[\[45\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-inflation-UK-46) The South Sea Company was created in 1711 to reduce the size of public debts, but was granted the commercial privilege of exclusive rights of trade to the Spanish Indies, based on the treaty of commerce signed by Britain and the [Archduke Charles](https://en.wikipedia.org/wiki/Charles_VI,_Holy_Roman_Emperor "Charles VI, Holy Roman Emperor"), candidate to the Spanish throne during the [War of the Spanish Succession](https://en.wikipedia.org/wiki/War_of_the_Spanish_Succession "War of the Spanish Succession"). After [Philip V](https://en.wikipedia.org/wiki/Philip_V_of_Spain "Philip V of Spain") became the King of Spain, Britain obtained at the 1713 [Treaty of Utrecht](https://en.wikipedia.org/wiki/Treaty_of_Utrecht "Treaty of Utrecht") the rights to the slave trade to the Spanish Indies (or [Asiento de Negros](https://en.wikipedia.org/wiki/Asiento_de_Negros "Asiento de Negros")) for 30 years. Those rights were previously held by the Compagnie de Guinée et de l'Assiente du Royaume de la France. The South Sea Company board opposed taking on the slave trade, which had shown little profitability when chartered companies had engaged in it. To increase the profitability, the Asiento contract included the right to send one yearly 500-ton ship to the fairs at Portobello and [Veracruz](https://en.wikipedia.org/wiki/Veracruz,_Veracruz "Veracruz, Veracruz") loaded with duty-free merchandises, called the Navío de Permiso. The Crown of England and the King of Spain were each entitled to 25% of the profits, according to the terms of the contract, that was a copy of the French Asiento contract, but [Queen Anne](https://en.wikipedia.org/wiki/Anne,_Queen_of_Great_Britain "Anne, Queen of Great Britain") soon renounced her share. The King of Spain did not receive any payments due to him, and this was one of the sources of contention between the Spanish Crown and the South Sea Company. As was the case for previous holders of the Asiento, the Portuguese and the French, the profit was not in the slave trade but in the illegal contraband goods smuggled in the slave ships and in the annual ship. Those goods were sold at the Spanish colonies at a handsome price, for they were in high demand; and constituted unfair competition with taxed goods, proving a large drain on the Spanish Crown's trade income. The relationship between the South Sea Company and the Government of Spain was always bad, and worsened with time. The company complained of searches and seizures of goods, lack of profitability, and confiscation of properties during the wars between Britain and Spain of 1718–1723 and 1727–1729, during which the operations of the company were suspended. The Government of Spain complained of the illegal trade, failure of the company to present its accounts as stipulated by the contract, and non-payment of the King's share of the profits. These claims were a major cause of deteriorating relations between the two countries in 1738; and although the Prime Minister [Walpole](https://en.wikipedia.org/wiki/Walpole "Walpole") opposed war, there was strong support for it from the King, the House of Commons, and a faction in his own Cabinet. Walpole was able to negotiate a treaty with the King of Spain at the [Convention of Pardo](https://en.wikipedia.org/wiki/Convention_of_Pardo "Convention of Pardo") in January 1739 that stipulated that Spain would pay British merchants £95,000 in compensation for captures and seized goods, while the South Sea Company would pay the Spanish Crown £68,000 in due proceeds from the Asiento. The South Sea Company refused to pay those proceeds and the King of Spain retained payment of the compensation until payment from the South Sea Company could be secured. The break-up of relations between the South Sea Company and the Spanish Government was a prelude to the [Guerra del Asiento](https://en.wikipedia.org/wiki/Guerra_del_Asiento "Guerra del Asiento"), as the first [Royal Navy](https://en.wikipedia.org/wiki/Royal_Navy "Royal Navy") fleets departed in July 1739 for the Caribbean, prior to the declaration of war, which lasted from October 1739 until 1748. This war is known as the [War of Jenkins' Ear](https://en.wikipedia.org/wiki/War_of_Jenkins%27_Ear "War of Jenkins' Ear").[\[46\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-47)[\[47\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-48)[\[48\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-49) ### Slave trade under the Asiento \[[edit](https://en.wikipedia.org/w/index.php?title=South_Sea_Company&action=edit&section=17 "Edit section: Slave trade under the Asiento")\] [![](https://upload.wikimedia.org/wikipedia/commons/thumb/d/d7/1713_Asiento_contract.png/250px-1713_Asiento_contract.png)](https://en.wikipedia.org/wiki/File:1713_Asiento_contract.png) Cover of the English translation of the Asiento contract signed by Britain and Spain in 1713 as part of the Utrecht treaty that ended the War of Spanish Succession. The contract granted exclusive rights to Britain to sell slaves in the Spanish Indies. Under the [Treaty of Tordesillas](https://en.wikipedia.org/wiki/Treaty_of_Tordesillas "Treaty of Tordesillas"), Spain was the only European power that could not establish factories in Africa to purchase slaves. The slaves for Spanish America were provided by companies that were granted exclusive rights to their trade. This monopoly contract was called the slave Asiento. Between 1701 and 1713 the Asiento contract was granted to France. In 1711 Britain had created the South Sea Company to reduce debt and to trade with Spanish America, but that commerce was illegal without a permit from Spain, and the only existing permit was the Asiento for the slave trade, so at the [Treaty of Utrecht](https://en.wikipedia.org/wiki/Treaty_of_Utrecht "Treaty of Utrecht") in 1713 Britain obtained the transfer of the Asiento contract from French to British hands for the next 30 years. The board of directors was reluctant to take on the slave trade, which was not an object of the company and had shown little profitability when carried out by chartered companies, but they finally agreed on 26 March 1714. The Asiento set a sale quota of 4,800 units of slaves per year. An adult male slave counted as one unit; females and children counted as fractions of a unit. Initially the slaves were provided by the [Royal African Company](https://en.wikipedia.org/wiki/Royal_African_Company "Royal African Company"). The South Sea Company established slave reception factories at [Cartagena, Colombia](https://en.wikipedia.org/wiki/Cartagena,_Colombia "Cartagena, Colombia"), [Veracruz](https://en.wikipedia.org/wiki/Veracruz,_Veracruz "Veracruz, Veracruz"), Mexico, Panama, [Portobello](https://en.wikipedia.org/wiki/Portobelo,_Col%C3%B3n "Portobelo, Colón"), [La Guaira](https://en.wikipedia.org/wiki/La_Guaira "La Guaira"), [Buenos Aires](https://en.wikipedia.org/wiki/Buenos_Aires "Buenos Aires"), [La Havana](https://en.wikipedia.org/wiki/La_Havana "La Havana") and [Santiago de Cuba](https://en.wikipedia.org/wiki/Santiago_de_Cuba "Santiago de Cuba"), and slave deposits at [Jamaica](https://en.wikipedia.org/wiki/Jamaica "Jamaica") and [Barbados](https://en.wikipedia.org/wiki/Barbados "Barbados"). Despite problems with speculation, the South Sea Company was relatively successful at [slave trading](https://en.wikipedia.org/wiki/Atlantic_slave_trade "Atlantic slave trade") and meeting its quota (it was unusual for other, similarly chartered companies to fulfill their quotas). According to records compiled by David Eltis and others, during the course of 96 voyages in 25 years, the South Sea Company purchased 34,000 slaves, of whom 30,000 survived the voyage across the Atlantic.[\[49\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-50) (Thus about 11% of the slaves died on the voyage: a relatively low mortality rate for the [Middle Passage](https://en.wikipedia.org/wiki/Middle_Passage "Middle Passage").[\[50\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-51)) The company persisted with the slave trade through two wars with Spain and the calamitous 1720 commercial [bubble](https://en.wikipedia.org/wiki/Economic_bubble "Economic bubble"). The company's slave trading peaked during 1725, five years after the bubble burst.[\[51\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-52) The slave Asiento contract of 1713 granted a permit to send one vessel of 500 tons per year, loaded with duty-free merchandise to be sold at the fairs of [New Spain](https://en.wikipedia.org/wiki/New_Spain "New Spain"), [Cartagena](https://en.wikipedia.org/wiki/Cartagena,_Colombia "Cartagena, Colombia") and [Portobello](https://en.wikipedia.org/wiki/Portobelo,_Col%C3%B3n "Portobelo, Colón"). This was an unprecedented concession that broke two centuries of strict exclusion of foreign merchants from the Spanish Empire, although a quarter of the profit was to be paid to the Spanish Crown.[\[52\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-53) The first ship to head for the Americas, the Royal Prince, was scheduled for 1714 but was delayed until August 1716. In consideration of the three annual ships missed since the date of the Asiento, the permitted tonnage of the next ten ships was raised to 650.[\[53\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-54) Only seven annual ships sailed during the Asiento, the last one being the Royal Caroline in 1732. The company's failure to produce accounts for all the annual ships but the first one, and lack of payment of the proceeds to the Spanish Crown from the profits for all the annual ships, resulted in no permits being granted after the Royal Caroline trip of 1732–1734. In contrast to the "legitimate" trade in slaves, the regular trade of the annual ships generated healthy returns, in some case profits were over 100%.[\[54\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-55) Accounts for the voyage of the Royal Prince were not presented until 1733, following continuous demands by Spanish officials. They reported profits of £43,607.[\[55\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-56) Since the King of Spain was entitled to 25% of the profits, after deducting interest on a loan he claimed £8,678. The South Sea Company never paid the amount due for the first annual ship to the Spanish Crown, nor did it pay any amount for any of the other six trips.[\[56\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-57): 341 The [Greenland Company](https://en.wikipedia.org/w/index.php?title=Greenland_Company&action=edit&redlink=1 "Greenland Company (page does not exist)") had been established by an act of Parliament, the [Greenland Trade Act 1692](https://en.wikipedia.org/w/index.php?title=Greenland_Trade_Act_1692&action=edit&redlink=1 "Greenland Trade Act 1692 (page does not exist)") ([4 Will. & Mar.](https://en.wikipedia.org/wiki/4_Will._%26_Mar. "4 Will. & Mar.") c. 17) in 1693 with the object of catching whales in the Arctic. The products of their "whale-fishery" were to be free of customs and other duties. Partly due to maritime disruption caused by wars with France, the Greenland Company failed financially within a few years. In 1722 Henry Elking published a proposal, directed at the governors of the South Sea Company, that they should resume the "Greenland Trade" and send ships to catch whales in the Arctic. He made very detailed suggestions about how the ships should be crewed and equipped.[\[57\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-58) The British Parliament confirmed that a British Arctic "whale-fishery" would continue to benefit from freedom from customs duties, and in 1724 the South Sea Company decided to commence whaling. They had 12 whale-ships built on the River Thames and these went to the Greenland seas in 1725. Further ships were built in later years, but the venture was not successful. There were hardly any experienced whalemen remaining in Britain, and the company had to engage Dutch and Danish whalemen for the key posts aboard their ships: for instance all commanding officers and harpooners were hired from the [North Frisian](https://en.wikipedia.org/wiki/North_Frisia "North Frisia") island of [Föhr](https://en.wikipedia.org/wiki/F%C3%B6hr "Föhr").[\[58\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-59) Other costs were badly controlled and the catches remained disappointingly few, even though the company was sending up to 25 ships to [Davis Strait](https://en.wikipedia.org/wiki/Davis_Strait "Davis Strait") and the [Greenland](https://en.wikipedia.org/wiki/Greenland "Greenland") seas in some years. By 1732 the company had accumulated a net loss of £177,782 from their eight years of Arctic whaling.[\[59\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-60) The South Sea Company directors appealed to the British government for further support. Parliament had passed the [Greenland Fishery Act 1731](https://en.wikipedia.org/w/index.php?title=Greenland_Fishery_Act_1731&action=edit&redlink=1 "Greenland Fishery Act 1731 (page does not exist)") ([5 Geo. 2](https://en.wikipedia.org/wiki/5_Geo._2 "5 Geo. 2"). c. 28) in 1732 that extended the duty-free concessions for a further nine years. In 1733 the [Whale Fishery Act 1732](https://en.wikipedia.org/w/index.php?title=Whale_Fishery_Act_1732&action=edit&redlink=1 "Whale Fishery Act 1732 (page does not exist)") ([6 Geo. 2](https://en.wikipedia.org/wiki/6_Geo._2 "6 Geo. 2"). c. 33) was passed that also granted a government subsidy to British Arctic whalers, the first in a long series of such acts of Parliament that continued and modified the whaling subsidies throughout the 18th century. This, and the subsequent acts, required the whalers to meet conditions regarding the crewing and equipping of the whale-ships that closely resembled the conditions suggested by Elking in 1722.[\[60\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-61) In spite of the extended duty-free concessions, and the prospect of real subsidies as well, the court and directors of the South Sea Company decided that they could not expect to make profits from Arctic whaling. They sent out no more whale-ships after the loss-making 1732 season. ## Government debt after the Seven Years' War \[[edit](https://en.wikipedia.org/w/index.php?title=South_Sea_Company&action=edit&section=20 "Edit section: Government debt after the Seven Years' War")\] The company continued its trade (when not interrupted by war) until the end of the [Seven Years' War](https://en.wikipedia.org/wiki/Seven_Years%27_War "Seven Years' War") (1756–1763). However, its main function was always managing government debt, rather than trading with the Spanish colonies. The South Sea Company continued its management of part of the [national debt](https://en.wikipedia.org/wiki/National_debt "National debt") until it was disestablished in 1853, at which point the debt was reconsolidated. The debt was not paid off by the time of the [First World War](https://en.wikipedia.org/wiki/First_World_War "First World War"), at which point it was consolidated again, under terms that allowed the government to avoid repaying the principal. The armorials of the South Sea Company, according to a [grant of arms](https://en.wikipedia.org/wiki/Grant_of_arms "Grant of arms") dated 31 October 1711, were: Azure, a globe whereon are represented the Straits of Magellan and Cape Horn all proper and in sinister chief point two herrings haurient in saltire argent crowned or, in a canton the united arms of Great Britain. Crest: A ship of three masts in full sail. Supporters, dexter: The emblematic figure of Britannia, with the shield, lance etc all proper; sinister: A fisherman completely clothed, with cap boots fishing net etc and in his hand a string of fish, all proper.[\[61\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-62) ## Officers of the South Sea Company \[[edit](https://en.wikipedia.org/w/index.php?title=South_Sea_Company&action=edit&section=22 "Edit section: Officers of the South Sea Company")\] \| South Sea Company Act 1753 \| \| \|---\|---\| \| Act of Parliament \| \| \| [![coat of arms](https://upload.wikimedia.org/wikipedia/commons/thumb/3/30/Coat_of_arms_of_Great_Britain_%281714%E2%80%931801%29.svg/250px-Coat_of_arms_of_Great_Britain_%281714%E2%80%931801%29.svg.png)](https://en.wikipedia.org/wiki/File:Coat_of_arms_of_Great_Britain_\(1714%E2%80%931801\).svg)[Parliament of Great Britain](https://en.wikipedia.org/wiki/Parliament_of_Great_Britain "Parliament of Great Britain") \| \| \| [Long title](https://en.wikipedia.org/wiki/Short_and_long_titles "Short and long titles") \| An Act for reducing the Number of Directors of the Corporation of the Governor and Company of Merchants of Great Britain trading to The South-Seas and other Parts of America; and for encouraging the Fishery; and for regulating the Election of the Governors and Directors of the said Company. \| \| [Citation](https://en.wikipedia.org/wiki/Citation_of_United_Kingdom_legislation "Citation of United Kingdom legislation") \| [26 Geo. 2](https://en.wikipedia.org/wiki/26_Geo._2 "26 Geo. 2"). c. 16 \| \| Territorial extent \| [Great Britain](https://en.wikipedia.org/wiki/Great_Britain "Great Britain") \| \| Dates \| \| \| [Royal assent](https://en.wikipedia.org/wiki/Royal_assent "Royal assent") \| 15 May 1753 \| \| [Commencement](https://en.wikipedia.org/wiki/Coming_into_force "Coming into force") \| 11 January 1753[\[b\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-63) \| \| Repealed \| 15 July 1867 \| \| Other legislation \| \| \| [Repealed by](https://en.wikipedia.org/wiki/Repeal "Repeal") \| [Statute Law Revision Act 1867](https://en.wikipedia.org/wiki/Statute_Law_Revision_Act_1867 "Statute Law Revision Act 1867") \| \| Status: Repealed \| \| \| [Text of statute as originally enacted](https://books.google.co.uk/books?id=a7wuAAAAIAAJ&pg=PA42) \| \| The South Sea Company had a governor (generally an honorary position), a subgovernor, a deputy governor and 30 directors – reduced by the South Sea Company Act 1753 ([26 Geo. 2](https://en.wikipedia.org/wiki/26_Geo._2 "26 Geo. 2"). c. 16) to 21 directors.[\[62\]](https://en.wikipedia.org/wiki/South_Sea_Company#cite_note-64) \| Year \| Governor \| Subgovernor \| Deputy governor \| \|---\|---\|---\|---\| \| July 1711 \| [Robert Harley, 1st Earl of Oxford](https://en.wikipedia.org/wiki/Robert_Harley,_1st_Earl_of_Oxford "Robert Harley, 1st Earl of Oxford") \| Sir James Bateman \| [Samuel Ongley](https://en.wikipedia.org/wiki/Samuel_Ongley_\(died_1726\) "Samuel Ongley (died 1726)") \| \| August 1712 \| [Sir Ambrose Crowley](https://en.wikipedia.org/wiki/Ambrose_Crowley "Ambrose Crowley") \| \| \| \| October 1713 \| [Samuel Shepheard](https://en.wikipedia.org/wiki/Samuel_Shepheard_\(died_1719\) "Samuel Shepheard (died 1719)") \| \| \| \| February 1715 \| [George, Prince of Wales](https://en.wikipedia.org/wiki/George_II_of_Great_Britain "George II of Great Britain") \| \| \| \| February 1718 \| [King George I](https://en.wikipedia.org/wiki/George_I_of_Great_Britain "George I of Great Britain") \| \| \| \| November 1718 \| John Fellows \| \| \| \| February 1719 \| [Charles Joye](https://en.wikipedia.org/w/index.php?title=Charles_Joye&action=edit&redlink=1 "Charles Joye (page does not exist)") \| \| \| \| February 1721 \| [Sir John Eyles, Bt](https://en.wikipedia.org/wiki/Sir_John_Eyles,_2nd_Baronet "Sir John Eyles, 2nd Baronet") \| John Rudge \| \| \| July 1727 \| [King George II](https://en.wikipedia.org/wiki/George_II_of_Great_Britain "George II of Great Britain") \| \| \| \| February 1730 \| [John Hanbury](https://en.wikipedia.org/wiki/John_Hanbury_\(1664%E2%80%931734\) "John Hanbury (1664–1734)") \| \| \| \| February 1733 \| [Sir Richard Hopkins](https://en.wikipedia.org/wiki/Richard_Hopkins_\(died_1736\) "Richard Hopkins (died 1736)") \| [John Bristow](https://en.wikipedia.org/wiki/John_Bristow "John Bristow") \| \| \| February 1735 \| [Peter Burrell](https://en.wikipedia.org/wiki/Peter_Burrell_\(1692%E2%80%931756\) "Peter Burrell (1692–1756)") \| \| \| \| March 1756 \| [John Bristow](https://en.wikipedia.org/wiki/John_Bristow "John Bristow") \| [John Philipson](https://en.wikipedia.org/w/index.php?title=John_Philipson&action=edit&redlink=1 "John Philipson (page does not exist)") \| \| \| February 1756 \| Lewis Way \| \| \| \| January 1760 \| [King George III](https://en.wikipedia.org/wiki/King_George_III "King George III") \| \| \| \| February 1763 \| Lewis Way \| Richard Jackson \| \| \| March 1768 \| [Thomas Coventry](https://en.wikipedia.org/wiki/Thomas_Coventry_\(died_1797\) "Thomas Coventry (died 1797)") \| \| \| \| January 1771 \| [Thomas Coventry](https://en.wikipedia.org/wiki/Thomas_Coventry_\(politician\) "Thomas Coventry (politician)") \| vacant (?) \| \| \| January 1772 \| John Warde \| \| \| \| March 1775 \| [Samuel Salt](https://en.wikipedia.org/wiki/Samuel_Salt "Samuel Salt") \| \| \| \| January 1793 \| [Benjamin Way](https://en.wikipedia.org/wiki/Benjamin_Way "Benjamin Way") \| [Robert Dorrell](https://en.wikipedia.org/w/index.php?title=Robert_Dorrell&action=edit&redlink=1 "Robert Dorrell (page does not exist)") \| \| \| February 1802 \| [Peter Pierson](https://en.wikipedia.org/w/index.php?title=Peter_Pierson&action=edit&redlink=1 "Peter Pierson (page does not exist)") \| \| \| \| February 1808 \| [Charles Bosanquet](https://en.wikipedia.org/wiki/Charles_Bosanquet "Charles Bosanquet") \| Benjamin Harrison \| \| \| 1820 \| [King George IV](https://en.wikipedia.org/wiki/King_George_IV "King George IV") \| \| \| \| January 1826 \| Sir Robert Baker \| \| \| \| 1830 \| [King William IV](https://en.wikipedia.org/wiki/King_William_IV "King William IV") \| \| \| \| July 1837 \| [Queen Victoria](https://en.wikipedia.org/wiki/Queen_Victoria "Queen Victoria") \| \| \| \| January 1838 \| Charles Franks \| [Thomas Vigne](https://en.wikipedia.org/wiki/Thomas_Vigne "Thomas Vigne") \| \| - [David Liss](https://en.wikipedia.org/wiki/David_Liss "David Liss")' historical-mystery novel [A Conspiracy of Paper](https://en.wikipedia.org/wiki/A_Conspiracy_of_Paper "A Conspiracy of Paper"), set in 1720 London, is focused on the South Sea Company at the top of its power, its fierce rivalry with the [Bank of England](https://en.wikipedia.org/wiki/Bank_of_England "Bank of England") and the events leading up to the collapse of the "bubble". - [Charles Lamb](https://en.wikipedia.org/wiki/Charles_Lamb "Charles Lamb")'s essay The South-Sea House (1820) in [Essays of Elia](https://en.wikipedia.org/wiki/Essays_of_Elia "Essays of Elia") – Lamb once worked in the South Sea House, and adopted his pseudonym (Elia) from a coworker there. - [Charles Dickens](https://en.wikipedia.org/wiki/Charles_Dickens "Charles Dickens") novels are littered with stock-market speculations, villains, swindlers and fictional speculators: - [Nicholas Nickleby](https://en.wikipedia.org/wiki/Nicholas_Nickleby "Nicholas Nickleby") (1839) – Ralph Nickleby's great Joint Stock Company, United Metropolitan Improved Hot Muffin and Crumpet Baking and Punctual Delivery Company. - [Martin Chuzzlewit](https://en.wikipedia.org/wiki/Martin_Chuzzlewit "Martin Chuzzlewit") (1844) – Anglo-Bengalee Disinterested Loan and Life Company, modelled loosely on the South Sea Bubble, is in essence a classic [Ponzi scheme](https://en.wikipedia.org/wiki/Ponzi_scheme "Ponzi scheme"). - [David Copperfield](https://en.wikipedia.org/wiki/David_Copperfield "David Copperfield") (1850) – The false accounting by the sycophant Uriah Heep, clerk to lawyer Mr Wickfield. - [Little Dorrit](https://en.wikipedia.org/wiki/Little_Dorrit "Little Dorrit") (1857) – The financial house of Mr Merdle. - [Robert Goddard](https://en.wikipedia.org/wiki/Robert_Goddard_\(novelist\) "Robert Goddard (novelist)")'s novel Sea Change (2000) covers the aftermath of the "bubble" and the attempts by politicians to evade responsibility and prevent a [Jacobite](https://en.wikipedia.org/wiki/Jacobitism "Jacobitism") restoration. - [List of stock market crashes and bear markets](https://en.wikipedia.org/wiki/List_of_stock_market_crashes_and_bear_markets "List of stock market crashes and bear markets") - [SSC coinage](https://en.wikipedia.org/wiki/SSC_coinage "SSC coinage") - [Tulip mania](https://en.wikipedia.org/wiki/Tulip_mania "Tulip mania") - [History of company law in the United Kingdom](https://en.wikipedia.org/wiki/History_of_company_law_in_the_United_Kingdom "History of company law in the United Kingdom") - [Whaling in the United Kingdom](https://en.wikipedia.org/wiki/Whaling_in_the_United_Kingdom "Whaling in the United Kingdom") - [Mississippi Bubble](https://en.wikipedia.org/wiki/Mississippi_Bubble "Mississippi Bubble") - [Buttonwood Agreement](https://en.wikipedia.org/wiki/Buttonwood_Agreement "Buttonwood Agreement") USA 1792 - [Bern banking crisis of 1720](https://en.wikipedia.org/wiki/Bern_banking_crisis_of_1720 "Bern banking crisis of 1720") 1. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-3) alternatively The Governor and Company of the merchants of Great Britain, trading to the South Seas and other parts of America, and for the encouragement of fishing 2. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-63) Start of session. 1. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-1) Thornbury, Walter, Old and New London, vol. 1, p. 538 2. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-2) ["Cloth Seal, Company, 1711–1853, South Seas & Fisheries"](http://www.bagseals.org/gallery/main.php?g2_itemId=3246). www.bagseals.org. 3. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-4) Journals of the House of Commons, volume 16: 1708–1711, p. 685. 4. ^ [*a](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-:0_5-0) [b](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-:0_5-1) [c](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-:0_5-2) Paul, Helen (2009). ["The South Sea Company's slaving activities"](https://www.southampton.ac.uk/assets/imported/transforms/content-block/UsefulDownloads_Download/326F907A8F434B05B2199578407AA4B6/0924.pdf) (PDF). Discussion Papers in Economics and Econometrics. [ISSN](https://en.wikipedia.org/wiki/ISSN_\(identifier\) "ISSN (identifier)") [0966-4246](https://search.worldcat.org/issn/0966-4246). 5. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-6)* Marshall, Dorothy (1962). Eighteenth Century England, pp. 121–130. 6. ^ [*a](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-:1_7-0) [b](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-:1_7-1) Paul, Helen J. (2013). The South Sea Bubble: an economic history of its origins and consequences. London: Routledge. [ISBN](https://en.wikipedia.org/wiki/ISBN_\(identifier\) "ISBN (identifier)") [978-0-415-70839-5](https://en.wikipedia.org/wiki/Special:BookSources/978-0-415-70839-5 "Special:BookSources/978-0-415-70839-5") . [OCLC](https://en.wikipedia.org/wiki/OCLC_\(identifier\) "OCLC (identifier)") [925312648](https://search.worldcat.org/oclc/925312648). 7. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-8)* Thornbury, Walter. "Threadneedle Street". [Old and New London](http://www.british-history.ac.uk/old-new-london/vol1/pp531-544). Volume 1 (London, 1878). pp. 531–544 – via British History Online. Accessed 21 July 2016. 8. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-9) Carswell, pp. 40, 48–50 9. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-10) Carswell, pp. 50–51 10. ^ [*a](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-auto2_11-0) [b](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-auto2_11-1) Carswell, pp. 52–54 11. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-12)* Carswell, pp. 54–55 12. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-13) Defoe, Daniel, An Essay on the South-Sea Trade ... , 2nd ed., (London, England: J. Baker, 1712), [pp. 40–41.](https://books.google.com/books?id=NZ5VAAAAcAAJ&pg=PA40) 13. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-14) Carswell, p. 56 14. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-15) Carswell, pp. 57, 58 15. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-16) Carswell, pp. 60–63 16. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-17) Carswell, pp. 64–66 17. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-18) Carswell, pp. 65–66 18. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-19) Carswell, p. 67 19. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-20) Carswell, pp. 66–67 20. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-21) Carswell, pp. 67–70 21. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-22) Carswell, pp. 73–75 22. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-23) Carswell, pp. 75–76 23. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-24) Carswell, pp. 88–89 24. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-25) Carswell, pp. 89–90 25. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-26) Carswell, pp. 100–102 26. ^ [*a](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-auto_27-0) [b](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-auto_27-1) Carswell, pp. 102–107 27. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-28)* ["UK Budget Pie Chart for 2010 – Charts"](https://web.archive.org/web/20110728044409/http://www.ukpublicspending.co.uk/budget_pie_ukgs.php?span=ukgs302&year=1717&view=1&expand=&units=b&fy=2010&state=UK). Archived from [the original](http://www.ukpublicspending.co.uk/budget_pie_ukgs.php?span=ukgs302&year=1717&view=1&expand=&units=b&fy=2010&state=UK#ukgs302) on 28 July 2011. 28. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-29) Carswell, pp. 112–113 29. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-30) Carswell, pp. 114–118 30. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-31) Cowles, ch. II, IV (esp. pp. 151, 168–169 for share prices) 31. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-32) Cowles, ch. IV 32. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-33) Cowles, chapter IV (esp. p. 146 for "bribe shares") 33. ^ [*a](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-auto1_34-0) [b](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-auto1_34-1) Carswell, pp. 116–117 34. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-35)* Carswell, pp. 138–140 35. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-36) Odlyzko, Andrew. ["An undertaking of great advantage, but nobody to know what it is: Bubbles and gullibility"](https://www.dtc.umn.edu/~odlyzko/doc/mania17.pdf) (PDF). University of Minnesota. Retrieved 22 October 2020. 36. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-37) [Alter, Peter](https://en.wikipedia.org/wiki/Peter_Alter "Peter Alter") (2018). "Der geplatzte Traum vom schnellen Geld". [Damals](https://en.wikipedia.org/wiki/Damals "Damals") (in German). Vol. 50, no. 8. pp. 72–76\. 37. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-38) [McDonald, Forrest](https://en.wikipedia.org/wiki/Forrest_McDonald "Forrest McDonald") (9 September 1990). ["The English Revolution in America"](https://web.archive.org/web/20150525193440/https://www.nytimes.com/1990/09/09/books/the-english-revolution-in-america.html). New York Times Book Review. Archived from [the original](https://www.nytimes.com/1990/09/09/books/the-english-revolution-in-america.html?smid=url-share) on 25 May 2015. 38. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-39) Marshall, pp. 127–130. 39. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-40) Richard A. Kleer (2015), "Riding a wave: the Company's role in the South Sea Bubble", p. 165. 40. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-41) Stephen Taylor (2008), "Walpole, Robert, first earl of Orford (1676–1745)", Oxford Dictionary of National Biography 41. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-42) Spence, Anecdotes, 1820, p. 368. 42. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-43) John O'Farrell (2007), An Utterly Impartial History of Britain – Or 2000 Years of Upper Class Idiots In Charge, Doubleday, [ISBN](https://en.wikipedia.org/wiki/ISBN_\(identifier\) "ISBN (identifier)") [978-0-385-61198-5](https://en.wikipedia.org/wiki/Special:BookSources/978-0-385-61198-5 "Special:BookSources/978-0-385-61198-5") 43. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-44) Westfall, Richard S. (1983). [Never at Rest: A Biography of Isaac Newton](https://archive.org/details/neveratrestbiogr00west). Cambridge University Press. pp. [861](https://archive.org/details/neveratrestbiogr00west/page/861)–862. [ISBN](https://en.wikipedia.org/wiki/ISBN_\(identifier\) "ISBN (identifier)") [978-0-521-27435-7](https://en.wikipedia.org/wiki/Special:BookSources/978-0-521-27435-7 "Special:BookSources/978-0-521-27435-7") . 44. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-45) Holodny, Elena (10 November 2017). ["Isaac Newton Was a Genius, but Even He Lost Millions in the Stock Market"](https://www.businessinsider.com/isaac-newton-lost-a-fortune-on-englands-hottest-stock-2016-1). Business Insider. 45. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-inflation-UK_46-0) UK [Consumer Price Index](https://en.wikipedia.org/wiki/Consumer_Price_Index "Consumer Price Index") inflation figures from 1209–2024 based on data from ["Inflation calculator"](https://www.bankofengland.co.uk/monetary-policy/inflation/inflation-calculator). [Bank of England](https://en.wikipedia.org/wiki/Bank_of_England "Bank of England"). London. 18 February 2026. Retrieved 1 April 2026. 46. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-47) Nelson (1945) states that the substantial illicit trade pursued by the South Sea Company officials under the Asiento "must be considered as a major cause of the War of Jenkins' Ear because it threatened to destroy the entire commercial framework of the Spanish Empire ... Unable to accept the destruction of its commercial system, Spain attempted to negotiate but requested that the company, as an evidence of good faith, should open its accounts for inspection by the Spanish representatives. Naturally, the directors refused, for compliance would have meant the complete exposure of the illegal traffic. Neither Spain nor the South Sea Company would yield. War was the inevitable result". 47. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-48) Brown (1926, p. 663) says that The failure to comply with the accounting provisions of the Asiento treaty (in the context of Spanish knowledge of secret accounts kept by the South Sea Company which would prove clandestine trading) was a constant source of the friction which culminated in armed conflict. 48. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-49) For Hildner (1938), the war of 1739 might have been averted if the issues addressed by the commission established in 1732 to settle disputes over the Asiento had been resolved. 49. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-50) ["History Cooperative – A Short History of Nearly Everything!"](http://www.historycooperative.org/cgi-bin/justtop.cgi?act=justtop&url=http://www.historycooperative.org/journals/wm/58.1/eltis.html). History Cooperative. `{{cite web}}`: CS1 maint: deprecated archival service ([link](https://en.wikipedia.org/wiki/Category:CS1_maint:_deprecated_archival_service "Category:CS1 maint: deprecated archival service")) 50. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-51) Paul, Helen. ["The South Sea Company's slaving activities"](http://www.ehs.org.uk/ehs/conference2004/assets/paul.doc). `{{cite web}}`: CS1 maint: deprecated archival service ([link](https://en.wikipedia.org/wiki/Category:CS1_maint:_deprecated_archival_service "Category:CS1 maint: deprecated archival service")) 51. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-52) Paul, H. J. (2010). The South Sea Bubble. 52. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-53) Walker, G. J. (1979), p. 101 53. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-54) Archivo General de Indias, Seville, Spain IG2785 54. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-55) McLachlan, (1940), pp. 130–131 55. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-56) Archivo General de Indias, Seville, Spain C266L3 56. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-57) Hildner, Ernest G. (August 1938). "The Role of the South Sea Company in the Diplomacy Leading to the War of Jenkins' Ear, 1729–1739". The Hispanic American Historical Review. 18 (3): 322–341\. [doi](https://en.wikipedia.org/wiki/Doi_\(identifier\) "Doi (identifier)"):[10\.2307/2507151](https://doi.org/10.2307%2F2507151). [JSTOR](https://en.wikipedia.org/wiki/JSTOR_\(identifier\) "JSTOR (identifier)") [2507151](https://www.jstor.org/stable/2507151). 57. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-58) Elking, Henry \[1722\](1980). A view of the Greenland Trade and whale-fishery. Reprinted: Whitby: Caedmon. [ISBN](https://en.wikipedia.org/wiki/ISBN_\(identifier\) "ISBN (identifier)") [0-905355-13-X](https://en.wikipedia.org/wiki/Special:BookSources/0-905355-13-X "Special:BookSources/0-905355-13-X") 58. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-59) Zacchi, Uwe (1986). Menschen von Föhr. Lebenswege aus drei Jahrhunderten (in German). Heide: Boyens & Co. p. 13. [ISBN](https://en.wikipedia.org/wiki/ISBN_\(identifier\) "ISBN (identifier)") [978-3-8042-0359-4](https://en.wikipedia.org/wiki/Special:BookSources/978-3-8042-0359-4 "Special:BookSources/978-3-8042-0359-4") . 59. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-60) Anderson, Adam \[1801\](1967). The Origin of Commerce. Reprinted: New York: Kelley. 60. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-61) Evans, Martin H. (2005). Statutory requirements regarding surgeons on British whale-ships. The Mariner's Mirror 91 (1) 7–12. 61. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-62) National Maritime Museum, Greenwich, catalogue entry for sculpture of arms, object ID: HRA0043 [\[1\]](https://collections.rmg.co.uk/collections/objects/605213.html) 62. [^](https://en.wikipedia.org/wiki/South_Sea_Company#cite_ref-64) See, for 1711–21, J Carswell, South Sea Bubble (1960) 274–279; and for 1721–1840, see British Library, Add. MSS, 25544-9. Historical - Balen, Malcolm (2002). A Very English Deceit: The Secret History of the South Sea Bubble and the First Great Financial Scandal (London: Fourth Estate) [ISBN](https://en.wikipedia.org/wiki/ISBN_\(identifier\) "ISBN (identifier)") [978-1-841-15552-4](https://en.wikipedia.org/wiki/Special:BookSources/978-1-841-15552-4 "Special:BookSources/978-1-841-15552-4") - Brown, V.L. (1926), "The South Sea Company and Contraband Trade", [The American Historical Review](https://en.wikipedia.org/wiki/The_American_Historical_Review "The American Historical Review"), 31 (4): 662–678, [doi](https://en.wikipedia.org/wiki/Doi_\(identifier\) "Doi (identifier)"):[10\.2307/1840061](https://doi.org/10.2307%2F1840061), [JSTOR](https://en.wikipedia.org/wiki/JSTOR_\(identifier\) "JSTOR (identifier)") [1840061](https://www.jstor.org/stable/1840061) - Carlos, Ann M. and Neal, Larry. (2006) "The Micro-Foundations of the Early London Capital Market: Bank of England shareholders during and after the South Sea Bubble, 1720–25", Economic History Review 59 (2006), pp. 498–538. [online](https://www.researchgate.net/publication/227708231_The_micro-foundations_of_the_early_London_capital_market_Bank_of_England_shareholders_during_and_after_the_South_Sea_Bubble_1720-251) - Carswell, John (1960), The South Sea Bubble, London: Cresset Press - [Cowles, Virginia](https://en.wikipedia.org/wiki/Virginia_Cowles "Virginia Cowles") (1960), The Great Swindle: The Story of the South Sea Bubble, New York: Harper - Dale, Richard S.; et al. (2005), "Financial markets can go mad: evidence of irrational behaviour during the South Sea Bubble", Economic History Review, 58 (2): 233–271, [doi](https://en.wikipedia.org/wiki/Doi_\(identifier\) "Doi (identifier)"):[10\.1111/j.1468-0289.2005.00304.x](https://doi.org/10.1111%2Fj.1468-0289.2005.00304.x), [S2CID](https://en.wikipedia.org/wiki/S2CID_\(identifier\) "S2CID (identifier)") [154836178](https://api.semanticscholar.org/CorpusID:154836178) - Dale, Richard (2004). The First Crash: Lessons from the South Sea Bubble (Princeton University Press) - Freeman, Mark, Robin Pearson, and James Taylor. (2013) "Law, politics and the governance of English and Scottish joint-stock companies, 1600–1850", Business History 55\#4 (2013): 636–652. [online](http://www.tandfonline.com/doi/full/10.1080/00076791.2012.741971) - Harris, Ron (1994). "The Bubble Act: Its Passage and its Effects on Business Organization", The Journal of Economic History, 54 (3), 610–627 - Hildner, E.G. Jr. (1938), "The Role of the South Sea Company in the Diplomacy leading to the War of Jenkins' Ear, 1729–1739", The Hispanic American Historical Review, 18 (3): 322–341, [doi](https://en.wikipedia.org/wiki/Doi_\(identifier\) "Doi (identifier)"):[10\.2307/2507151](https://doi.org/10.2307%2F2507151), [JSTOR](https://en.wikipedia.org/wiki/JSTOR_\(identifier\) "JSTOR (identifier)") [2507151](https://www.jstor.org/stable/2507151) - Hoppit, Julian. (2002) "The Myths of the South Sea Bubble", Transactions of the Royal Historical Society, (2002) 12\#1 pp. 141–165 [in JSTOR](https://www.jstor.org/stable/3679343) - Kleer, Richard A. (2015) "Riding a wave: the Company's role in the South Sea Bubble", The Economic History Review 68.1 (2015): 264–285. [online](https://www.researchgate.net/profile/Richard_Kleer/publication/264537000_Riding_a_wave_The_Company's_role_in_the_South_Sea_Bubble/links/564b825208ae3374e5ddba9a.) - Löwe, Kathleen (2021) [Die Südseeblase in der englischen Kunst des 18. und 19. Jahrhunderts. Bilder einer Finanzkrise](http://www.reimer-mann-verlag.de/controller.php?cmd=detail&titelnummer=103047&verlag=4), Berlin: Reimer. - McLachlan, J.O. (1940), Trade and Peace With Old Spain, 1667–1750, Cambridge: Cambridge University Press \[[ISBN missing](https://en.wikipedia.org/wiki/Wikipedia:Citing_sources "Wikipedia:Citing sources")\] - McColloch, William E. (2013) "A shackled revolution? The Bubble Act and financial regulation in eighteenth-century England", Review of Keynesian Economics 1.3 (2013): 300–313. [online](https://www.researchgate.net/profile/Valerio_Cerretano/publication/286423413_Economic_crises_and_the_development_of_the_industrial_state_the_industrial_intervention_of_the_Bank_of_Italy_and_the_Bank_of_England_1918-1939/links/5804b91208ae73d9d6149867/Economic-crises-and-the-development-of-the-industrial-state-the-industrial-intervention-of-the-Bank-of-Italy-and-the-Bank-of-England-1918-1939.pdf#page=38) - Mackay, C. [Extraordinary Popular Delusions and the Madness of Crowds](https://en.wikipedia.org/wiki/Extraordinary_Popular_Delusions_and_the_Madness_of_Crowds "Extraordinary Popular Delusions and the Madness of Crowds") (1841) - Marshall, Dorothy. (1962) Eighteenth Century England Longman. pp. 121–130.\[[ISBN missing](https://en.wikipedia.org/wiki/Wikipedia:Citing_sources "Wikipedia:Citing sources")\] - Michie, R.C. (2001), "From Market to Exchange, 1693–1801", The London Stock Exchange, Oxford: Oxford University Press, [ISBN](https://en.wikipedia.org/wiki/ISBN_\(identifier\) "ISBN (identifier)") [978-0-19-924255-9](https://en.wikipedia.org/wiki/Special:BookSources/978-0-19-924255-9 "Special:BookSources/978-0-19-924255-9") - Nelson, G.H. (1945), "Contraband Trade Under the Asiento", [The American Historical Review](https://en.wikipedia.org/wiki/The_American_Historical_Review "The American Historical Review"), 51 (1): 55–67, [doi](https://en.wikipedia.org/wiki/Doi_\(identifier\) "Doi (identifier)"):[10\.2307/1843076](https://doi.org/10.2307%2F1843076), [JSTOR](https://en.wikipedia.org/wiki/JSTOR_\(identifier\) "JSTOR (identifier)") [1843076](https://www.jstor.org/stable/1843076) - Paul, Helen Julia (2010) The South Sea Bubble: an economic history of its origins and consequences, Routledge Explorations in Economic History [online](http://ieg-ego.eu/en/threads/european-media/european-media-events/helen-j-paul-the-south-sea-bubble-1720) short summary - Paul, Helen. (2013) The South Sea Bubble: An Economic History of its Origins and Consequences Routledge, 176 pp. \[[ISBN missing](https://en.wikipedia.org/wiki/Wikipedia:Citing_sources "Wikipedia:Citing sources")\] - Paul, Helen, [The "South Sea Bubble", 1720](https://ieg-ego.eu/de/threads/europaeische-medien/europaeische-medienereignisse/the-south-sea-bubble-1720-south-sea-bubble-be-freigabe), [EGO – European History Online](https://www.ieg-ego.eu/), Mainz: [Institute of European History](http://www.ieg-mainz.de/likecms/index.php), 2015, retrieved: 17 March 2021 ([pdf](https://d-nb.info/1125542748/34)). - Plumb, J. H. (1956) Sir Robert Walpole, vol. 1, The Making of a Statesman. ch 8 - Shea, Gary S. (2007), ["Understanding financial derivatives during the South Sea Bubble: The case of the South Sea subscription shares"](https://www.st-andrews.ac.uk/~wwwecon/CDMA/papers/wp0512.pdf) (PDF), Oxford Economic Papers, 59 (Supplement 1): i73–i104, [doi](https://en.wikipedia.org/wiki/Doi_\(identifier\) "Doi (identifier)"):[10\.1093/oep/gpm031](https://doi.org/10.1093%2Foep%2Fgpm031) - Temin, Peter; Voth, Hans-Joachim (2004), ["Riding the South Sea Bubble"](http://www.aeaweb.org/articles.php?doi=10.1257/0002828043052268), [American Economic Review](https://en.wikipedia.org/wiki/American_Economic_Review "American Economic Review"), 94 (5): 1654–1668, [doi](https://en.wikipedia.org/wiki/Doi_\(identifier\) "Doi (identifier)"):[10\.1257/0002828043052268](https://doi.org/10.1257%2F0002828043052268) - Stratmann, Silke (2000) Myths of Speculation: The South Sea Bubble and 18th-century English Literature. Munich: Fink - Walker, G.J. (1979), Política Española y Comercio Colonial 1700–1789, Barcelona: Editorial Ariel Fiction - Goddard, Robert (2000), Sea Change, London: Bantam Press, p. 416, [ISBN](https://en.wikipedia.org/wiki/ISBN_\(identifier\) "ISBN (identifier)") [978-0-593-04667-8](https://en.wikipedia.org/wiki/Special:BookSources/978-0-593-04667-8 "Special:BookSources/978-0-593-04667-8") . Novel set against the background of the South Sea bubble. - Liss, David (2000), [A Conspiracy of Paper](https://archive.org/details/conspiracyofpape00liss), New York: Random House, [ISBN](https://en.wikipedia.org/wiki/ISBN_\(identifier\) "ISBN (identifier)") [978-0-375-50292-7](https://en.wikipedia.org/wiki/Special:BookSources/978-0-375-50292-7 "Special:BookSources/978-0-375-50292-7") . Novel set in the South Sea Company bubble. [![Wikisource logo](https://upload.wikimedia.org/wikipedia/commons/thumb/4/4c/Wikisource-logo.svg/40px-Wikisource-logo.svg.png)](https://en.wikipedia.org/wiki/File:Wikisource-logo.svg) - ![](https://upload.wikimedia.org/wikipedia/commons/thumb/f/fa/Wikiquote-logo.svg/20px-Wikiquote-logo.svg.png) Quotations related to [South Sea Company](https://en.wikiquote.org/wiki/Special:Search/South_Sea_Company "wikiquote:Special:Search/South Sea Company") at Wikiquote - [South Sea Bubble collection at Harvard University](http://www.library.hbs.edu/hc/ssb/index.html) - [Famous First Bubbles – South Sea Bubble](https://sites.google.com/site/davesmant/monetary-economics/famous-first-bubbles/south-sea-bubble) - [Charles McKay's Account of The South Sea Bubble in Modern English](https://web.archive.org/web/20140106143016/http://www.thesouthseabubble.com/) at the [Wayback Machine](https://en.wikipedia.org/wiki/Wayback_Machine "Wayback Machine") (archived 6 January 2014) - [Deprecated link](https://en.wikipedia.org/wiki/Wikipedia:Archive.today_guidance "Wikipedia:Archive.today guidance") at [archive.today](https://en.wikipedia.org/wiki/Archive.today "Archive.today") (archived 2012-12-09) - [The South Sea Bubble](https://www.bbc.co.uk/programmes/b01pcs5g), audio programming with Melvyn Bragg and guests, BBC Radio 4.
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