A. D. 1720. 79 



It is to little purpofe now to enlarge on the methods then taken by 

 the South-feu company's managers, for enabling them to execute fo vafl: 

 a fcheme ; fuch as, making their dividend warrants at chriftmas 1719 

 to carry interefl: till chriftmas 1720, fums under L20 only excepted ; 

 obtaining an acl: of this fame fellion, for making forth new exchequer- 

 bills, not exceeding one million, at a certain intereft, and for lending 

 the fame to the South-fea company at an higher intereft, &c. taking in 

 four money- fubfcriptions for the fale of their ftock which they propos- 

 ed to gain by the fcheme ; which large money-fubfcriptions were par- 

 ticularly intended for enabling the company to pay off the holders of 

 fuch of the redeemable debts as fhould choofe to take their principal 

 money, inftead of fubfcribing the fame into that company ; and alfo for 

 paying the above great fum to the public for the privilege of this 

 icheme ; which laft fum was deftined by this aft to be applied, in the 

 firfl place, to pay off all fuch debts, not included in the company's new 

 capital, as carried 5 per cent intereft, and afterward to pay off" part of 

 the company's capital at 5 per cent. They were alfo hereby empower- 

 ed to make calls of money on their members, or to open books for lub- 

 fcriptions, or to grant annuities redeemable ; or by fuch other methods 

 for railing money as their general courts fhould diredt ; fuch as loans on 

 contrafts, bills, bonds, or obligations, under their common feal, or on 

 the credit of their ftock, which hereby was all to be reduced to 4 per 

 cent redeemable at midfummer 1727. And the additional allowance 

 for management was to be in proportion to that allowed for their old 

 capital. Not lefs than one million to be paid the company at any one. 

 time : but their trade and privileges were to continue for ever. 



The debts propofed to be taken in were, 



I) Irredeemable long annuities, per annum L666,82i JT 3- 



Ditto fliort annuities, - 127,260 6 i 



Making together _ _ _ 1794,081 14 4; 



The long annuities originally did not, in general, coft the proprietors 

 above fixteen years purchafe ; fo that the proprietors had already been 

 over-paid their principal with legal intereft, and yet, after fo many 

 years elapfed, their prelent market price was confiderably more than 

 what was originally paid for them at the exchequer ; and therefor they 

 were now deemed an incumbrance on the public equal to their current 

 value, and were to be juftly confidered in that light only. 



For thefe long annuities the company obliged themielves to allow the 

 proprietors twenty years purchafe ; and fourteen years purchafe for the 

 fhort annuities : but the main fallacy was, that the company was not 

 limited in the price they were to put on their ftock to be given to 

 them. Whereas, on the contrary, the bank's fecond propoial obliged 



