Purchasers of this fund were to become
also shareholders in the "South Sea Company," a corporation to have
the monopoly of the trade with Spanish South America, a part of the
capital stock of which was to be the new fund. But Spain, after the
treaty of Utrecht, refused to open her commerce to England, and the
privileges of the "South Sea Company" became worthless. There were
many men of wealth who were stockholders, and the company continued
to flourish, while the ill success of its trading operations was
concealed. Even the Spanish War of 1718 did not shake the popular
confidence. Then in April, 1720, Parliament, by large majorities in
both Houses, accepted the company's plan for paying the national debt,
and after that a frenzy of speculation seized the nation, and the
stock rose to L300 a share, and by August had reached L1,000 a share.
Then Sir John Blunt, one of the leaders, sold out, others followed,
and the stock began to fall. By the close of September the company
stopped payment and thousands were beggared. An investigation ordered
by Parliament disclosed much fraud and corruption, and many prominent
persons were implicated, some of the directors were imprisoned, and
all of them were fined to an aggregate amount of L2,000,000 for the
benefit of the stockholders. A great part of the valid assets was
distributed among them, yielding a dividend of about 33 per cent.
AREA OF NORTH AMERICA.--The following figures show the extent of
the United States as compared with the British possessions in
North America: United States, 3,602,884 square miles.
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