The Company was projected by the Earl of Oxford in 1711, and, like the Mississippi scheme in France, was intended to assist the Government, which was virtually bankrupt. As yet there was no funded national debt, but large sums were owing to the army and navy, which had been provisionally settled by debentures, that could be discounted only at a serious loss to the owners. Down to the establishment of the Bank of England in 1693 no public loan existed, but this was commenced by borrowing the capital of that institution. At the peace of Ryswick, in 1697, the public debt amounted to twenty millions, but by the time the South Sea Company was started the arrears of pay made it half as much again. Part of the great scheme was to advance this amount on security of English customs duties amounting to £600,000 per annum, and a monopoly of the Spanish trade in the Indies as far as the _Assiento_ contract would permit. Whether the whole affair was a fraud from the commencement is doubtful; there were certainly misrepresentations in the prospectus, either wilful or possibly in good faith. Spain was to allow free trade to England in four ports on the Pacific, and three vessels besides slavers were to go to the isthmus every year--concessions never promised nor intended by Philip the Fifth. The slave trade was a fact, and according to the statements it would give fabulous profits. [Illustration: MAP OF TERRA FIRMA. (_From Gottfried's "Reisen."_)] Visions of boundless wealth now floated before the eyes of the English people, and they at once began to rival the French in their madness, as they had in their colonisation. The English Government was ready to make every possible concession because it wanted to be rid of the incubus of thirty millions, and therefore did nothing to check the Company. As the stock was issued it was at once bought up, and then sold again at a considerable advance. Everybody expected to make fortunes, therefore they must get shares at any price. Rumours of peace with Spain, and great concessions that would bring all the riches of Peru and Mexico into their coffers, roused them still more. Gold would soon be as plentiful as copper, and silver as iron. The shareholders would be the richest people the world ever saw, and every share would give dividends of hundreds per cent. per annum. The bill making the Government concessions was passed in April, 1720, when the stock was quoted at £310 for a hundred pound share. Strange to say, it then began to fall, but the projectors put forth a rumour that England was about to exchange Gibraltar for a port in Peru, and confidence was restored at once. So great was the increased demand that another million was issued at £300 per £100 share, and these were so much run after that the fortunate owners were at once offered double what they had paid. Then another million was offered at £400, and in a few hours applications were received for a million and a half.