The New Student's Reference Work/South-Sea Scheme

South-Sea Scheme, called the South Sea Bubble, was a plan orginated by Harley, Earl of Oxford, to provide for the extinction of the public debt. A company was formed to which was given the monopoly of the trade of the South Seas and of certain import duties. It agreed to pay the government six per cent. yearly on its debt of $50,000,000. The stock rose until it was quoted at 1,000, when some of the principal directors sold out. The bursting of the bubble followed, many large stockholders fled, and the excitement was so great that Parliament was summoned to decide on the best means of helping in the public distress. Though nothing fraudulent was proved against the directors, their property was confiscated for the benefit of the sufferers, and $35,000,000 due the government was remitted, but this only availed to mitigate very slightly the ruin wrought.