The Government at once took steps to punish their candid friend. As early as 1717, the Duke of Newcastle, who then became Lord Chamberlain, had requested the managers of the theatre to accept a licence in place of their patent. This Steele declined to do, and the matter dropped; but in the following year there was further friction, owing to the claim of the managers that they were exempt from the Duke's authority. The Attorney-General was consulted on this point, and upon the question whether Steele had power to sell or alienate his interest in the patent; but the result is not recorded. The first act of revenge was an order, on December 19, 1719, forbidding Cibber--who had dedicated his _Ximena_ to Steele--to act or take part in the management of the theatre. Steele remonstrated, and commenced an interesting periodical called the _Theatre_, in vindication of himself and his fellow-managers. On January 23, 1720, the licence was revoked, and the Lord Chamberlain threatened to obtain a sign manual to silence the theatre. Steele petitioned the King, but on the 25th a warrant was issued forbidding any acting at Drury Lane until further order. On the 27th a licence, to be held during pleasure, was granted to Wilks, Cibber, and Booth; and on March 4, in spite of every effort of Steele's to obtain justice, the King's Company of Comedians were sworn at the office of the Lord Chamberlain, to whom they agreed to be subservient. Next month, in the last number of the _Theatre_, Steele alluded to the loss he had sustained in not being able to produce his own pieces advantageously, and stated that he would forthwith publish a new comedy, called _Sir John Edgar_. This agrees with letters from Dr. Rundle, who wrote that it was said that a most excellent comedy of Steele's was prevented being acted at the Haymarket Theatre, lest its wit and sense should spoil the relish for operas. This comedy, however, never saw the light. Throughout 1720 the country was occupied with the fortunes of the South Sea Company and other schemes, by which people hoped to make rapid fortunes. Steele, both in and out of the House, again opposed the action of ministers, and his conduct was justified in the autumn, when the bubble burst. Aislabie, the elder Craggs, the Stanhopes, and Sunderland were all compromised; and Walpole became First Lord of the Treasury. Steele, as in the case of the 1715 Rebellion, advocated mercy towards the directors of the company as individuals, though he had fearlessly condemned their action while they had the power of doing harm. On the 2nd of May, 1721, through Walpole's influence, the Lord Chamberlain issued a warrant, ordering the managers of the theatre to account to Steele for his share of the profits, past and future. In the autumn he was again in Scotland.