And now, while England was distracted by the civil war of the first Pretender, and by the rupture with Charles XII. of Sweden, she had much trouble with the Barbary pirates, who, in the West Indies in particular, constantly harassed her shipping interests. So great a nuisance had these “water-rats” become that £100 head-money was offered for every captain, £40 for any rank from a lieutenant to a gunner, and £20 for every pirate seaman. Any private who delivered up his commander was entitled to £200 on the conviction of the latter. But there were also at that period “land-rats” at home, as bad as any pirate, preying on the public purse. This was the epoch when Hamlet’s words “they’re all mad there,” might almost have been said of England, and with even greater truth of our neighbours across the Channel. Two extraordinary schemes, one of which was to make France the richest of commercial nations, and the second of which was to pay the national debt of England, were propounded, great companies raised, and supported by half the people, from princes to petty tradesmen. As projects depending upon commerce with foreign countries, they, of course, are intimately connected with our subject. Need it be said that the writer refers to the two extraordinary delusions known as the Mississippi Scheme and the South Sea Bubble? The first of these projects was designed to develop the resources of the great country lying round the Mississippi, especially Louisiana; to open up mineral deposits supposed to be wonderfully rich; and to carry on a general trade with that part of America. The second, which more intimately concerns us, included a monopoly of trade with the South Sea, a somewhat elastic title, but which meant at the time commerce with the countries of Spanish America. The South Sea Company was originated by Harley, Earl of Oxford, in 1711, with the distinct view of “providing for the discharge of the army and navy debentures, and other parts of the floating debt, amounting to nearly ten million sterling.” A company of merchants took this debt upon themselves, the Government agreeing to secure them, for a certain period, six per cent. interest, and grant them the monopoly of the trade to the South Seas. The most exaggerated ideas relating to the mineral wealth of South America were prevalent at the time, and when a report, most industriously spread, was circulated that Philip V. of Spain was ready to concede four ports of Chili and Peru for purposes of trade, South Sea stock rose in value with extraordinary rapidity. That monarch, however, never meant to grant anything like a free trade to the English. After sundry negotiations had been opened the royal assent was given to a contract, conceding the privilege of supplying the colonies with negroes for thirty years, and of sending _once a year one vessel_ “limited both as to tonnage and value of cargo” to trade with Mexico, Peru, and Chili, the king to enjoy one-fourth of the profits.