one they distrusted all. The panic became as great as the mania had boon. The South Sea stock dropped in less than a mouth from one thousand to below six hundred. There was a simultaneous rush to sell out, and the shares must have sunk instantly to nil, but for the gigantic exertions of the company to raise money and buy in. The relief, however, was but temporary. The bankers and pawnbrokers who had advanced money on scrip broke and fled; merchants, goldsmiths, and speculators rushed away after them. Walpole was summoned in haste from Haughton, to devise some means of staying the panic. He endeavoured to get the Bank of England to circulate three millions of South Sea bonds for a year; but the bank, seeing that the case was desperate, declined it. That was decisive, and to make the ruin complete in all its parts, at that moment came the news that Law, the author of the scheme, was flying for his life from France, and the whole of his dupes in that country were reduced to beggary. If the whole country had not been bewitched by the passion for enormous gains, the symptoms which had been exhibiting themselves for some time in France, would have prepared them for the catastrophe. Probably many about the court did observe these symptoms, for, as we shall find, they took care to save themselves—Walpole amongst the number, who, though he saw through the farce, availed himself of it to make a large profit, so long as speculation was safe. But beyond the few exceptions, one vast ruin fell on the public. The rage and despair of the swarming dupes were indescribable. They heaped execrations not only on the South Sea Company, but on ministers, the king, his mistresses, and the royal family, who had all been deep in the affair, and who had taken good care of themselves. Walpole, as we have said, had benefited greatly; but then he had never approved of nor applauded the scheme. It was said that lords Stanhope and Townshend, and the dukes of Roxburgh and Argyll, were almost the only nobles or ministers who "had not been in the stocks!" Sunderland was a heavy loser; the duke of Portland and lords Lonsdale and Irwin were so reduced as to solicit West Indian governments. The principal people who had gained were the king and his ugly and fat and lean mistresses, who had made enormous gains by the vilest means, and sent them off to Hanover to be there Invested. George and these female harpies were still in that country, but his majesty was entreated by ministers to hasten over to England to support by his presence the necessary measures for rescuing the nation from its distress. He accordingly landed at Margate on the 9th of November, soon after which the South Sea stock fell to one hundred and thirty-five.
On the 8th of December parliament met, and Walpole propounded his plan for maintaining the public credit, which was to engraft nine millions of the public stock into the Bank of England, the same quantity with the East India Company, on certain conditions, leaving twenty over millions to the South Sea. The advantages of this scheme, the simple one of government redeeming its own undoubted debts, and giving the holders their original securities, it is difficult at this time to perceive. The plan was, however, adopted by both houses, but never carried into execution, another law, as will be seen, superseding it. Nor could the security offered by Walpole's scheme prevent the opposition from falling with all its fury on this monstrous business. Tories, Jacobites, and disappointed whigs all united in an attack upon it. Shippen moved an amendment on the address from the commons to the king, implying a severe censure on ministers and all concerned in it. A violent debate ensued, during which lord Molesworth declared that he would have the directors of the company treated as the Romans treated parricides—he would have them sewn up in sacks and flung into the Thames.
Shippen's amendment, by the influence of Walpole, was rejected by two hundred and sixty-one against one hundred and three; but the next day the storm broke out with increased fury, and a clause was carried, demanding "the punishment of the authors of the present misfortunes." Three days afterwards it was also carried that the directors should forthwith lay before the house an account of all their proceedings, and a bill was introduced "to prevent the infamous practice of stock-jobbing."
The intervening Christmas recess had no influence in abating the spirit of vengeance against the company. Sir Joseph Jekyll brought in a bill to restrain the directors from leaving the kingdom, obliging them to deliver in upon oath a short account of the value of their estates, and offering rewards to discoverers and informers against them. The directors petitioned the house to be allowed to be heard by counsel in their defence, but this right of every British subject was denied them, and after a violent debate the bill was carried through both houses. A secret committee of inquiry was appointed to draw forth all the arcana of the subject, and the most violent enemies of the company, such as Jekyll, Molesworth, and Broderick, were put upon it. Broderick was made chairman.
This committee commenced its labours by examining Mr. Knight, the cashier of the company, and agent of its most secret proceedings. Knight could not stand more than one examination, but escaped to France, carrying with him the register of the company, called the "green book." On this discovery the house was thrown into the most violent excitement. The doors were ordered to be locked, and the keys to be laid on the table. General Ross, one of the secret committee, declared that they "had discovered a train of the deepest villany and fraud that hell ever contrived to ruin a nation." Without requiring any other proof than this assertion, four of the directors, who were members of the house, were immediately expelled, their papers seized, and themselves taken into custody. Other directors and their papers were seized soon afterwards.
In the house of lords on the 24th of January, 1721, five other directors who had been called before them were arrested and their papers seized. By what had been drawn from them, it appeared that large sums had been given to people in high places to procure the passing of the South Sea Bill. Lord Stanhope rose and expressed his indignation at such practices, and moved that any transfer of stock for the use of any person in the administration without a proper consideration was a notorious and dangerous corruption. The motion was seconded by lord Townshend, and carried unanimously. The examination being continued on the 4th of February, Sir John Blunt refused to answer their lord-
