The Royal Exchange : $b a note on the occasion of the bicentenary of the Royal Exchange AssuranceMason, A. E. W. (Alfred Edward Woodley)
History
The Royal Exchange : $b a note on the occasion of the bicentenary of the Royal Exchange Assurance
Mason, A. E. W. (Alfred Edward Woodley)
Royal Exchange (London, England) -- History; Royal Exchange Assurance (Firm) -- History
A still simpler device was imagined by a gentleman whose name (alas!)
is not known. He propounded a company for carrying on an undertaking
of great advantage, “but nobody to know what it is.” The capital of
this singular undertaking was to be a mere fleabite--half a million
pounds in five thousand £100 shares. But--and here the anonymous
benefactor showed his discretion--you had only to deposit £2 a share
and you obtained by the mere fact of that deposit £100 a year on each
share. This worthy person opened his office in the morning. By the time
business in Change Alley ceased and the ladies and gentlemen retired
to the lighted candles of the West End, he had secured deposits to the
tune of £2,000. The next morning the office was closed and it was never
opened again. These schemes were iridescent as the mayfly, and had just
as long a life. They sparkled and glinted in the sunlight through a
day, and the next morning they were not.
After the shares of the South Sea Company had risen to 800 per cent.,
a good many prudent people began to realise their fortunes, and stocks
accordingly fell. The Directors asked for more money, obtained it, and
the shares in August had risen to no less than a thousand per cent. But
the end was near, and in the month of September the Bubble burst. A
member of Parliament of that day wrote to Lord Chancellor Middleton:
“The consternation is inexpressible, the rage beyond description,
and the case altogether so desperate that I do not see any plan or
scheme so much as thought of for averting the blow, so that I cannot
pretend to guess what is next to be done.” The Bank of England made an
effort. It asked for a subscription of three million pounds for the
restoration of credit, but did not get it. The South Sea Stock fell to
135, and bankers and goldsmiths who had lent money on South Sea Bonds
were compelled to fly the country. Parliament was summoned to meet,
and George the First returned post haste from Hanover. An enquiry was
instituted into the management of the Company and a series of frauds
was discovered in which members of the Government were shamefully
involved. Mr. Secretary Craggs and Mr. Aislabie, the Chancellor of
the Exchequer, went down with a crash. People did not exact from
the Ministers of the Crown in those days the same high standard of
propriety which is demanded to-day. But the scandal in this case
was too great for extenuation. Aislabie went to prison, and bonfires
were lighted in the London streets on the day he was sent there. Mr.
Secretary Craggs no doubt would have gone on the same road but his son,
for whose sake, it was currently said, he had amassed a million and a
half out of the Bubble, died suddenly, and the father was stricken with
apoplexy. The Countess Von Platen, with her two nieces, was proved to
have been given £20,000 worth of fictitious stock as an inducement to
her to use her influence to push the Bill through Parliament. There
Public-domain text, read in full here on John Shaqi.
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