After this first operation in reducing the interest, the bank was satisfied with a reduction to 5 _per cent._ of that paid to them; and they began to circulate exchequer bills at a more moderate interest than formerly. Public credit was now daily gaining ground. In 1719, the South Sea company, whose capital was then swelled to eleven millions at 5 _per cent._ with a sum of 9397_l._ sterling for the expence of management, enlarged their views; and finding great profits to arise from such a fund under one administration, formed a project of acquiring a large sum of the public debts, which remained outstanding upon the original funds appropriated for them. For this purpose they proposed to government to acquire, 1. The property of above 16 millions of redeemable debts, bearing then 4 and 5 _per cent._ interest; and to reduce the whole to 4 _per cent._ at midsummer 1727. 2. To acquire a sum of 794 000_l._ of annuities upon lives, and for long terms, as they should agree with the proprietors, at 5 _per cent._ upon the purchase-money, until 1727; and at 4 _per cent._ afterwards. Annuities were then valued at fourteen and twenty years purchase, according to their length: they rose, however, during the operations of the South Sea, to 25 and 30 years purchase. 3. They were to have a sum added to their former allowance for the charge of management, in proportion to this augmentation of their stock. 4. That for the advantage which might follow upon this agreement with government, they were to pay into the exchequer above seven millions sterling, toward discharging other national debts outstanding. And in the last place, they engaged to circulate a considerable sum of exchequer bills, and to pay the interest of 2 pence _per cent. per diem_, which should grow upon them during seven years[25]. Footnote 25: After the long and particular account I have given of the Missisippi, I shall not enter into a like detail, concerning a scheme which proceeded upon the very same principles; to wit, the artificial raising the value of a stock, by promising dividends, out of funds which were nowise proportioned to them. I shall therefore, in a very few words, compare some of the operations of the South Sea scheme, with those of the Missisippi; and in doing it, point out the principal differences between them. The great profits upon the Missisippi were expected from the interest paid by government for the great loan, the farms of the revenue, and the profits upon their trade. Those of the South Sea were, at setting out, 1. The profits upon their trade: 2. The allowance made them: 3. The difference of receiving 5 _per cent._ for the money they laid out in purchasing the public debts, when money was at 4 _per cent._ as it was when the scheme was set on foot: and 4. The surplus money subscribed into the stock above par, in consequence of the artifices used to enhance the value of it.