thirty years, and of sending once a year a vessel, limited both as to
tonnage and value of cargo, to trade with Mexico, Peru, or Chili. The
latter permission was only granted upon the hard condition, that the
King of Spain should enjoy one-fourth of the profits, and a tax of
five per cent. on the remainder. This was a great disappointment to
the Earl of Oxford and his party, who were reminded much oftener than
they found agreeable of the

"Parturiunt montes, nascitur ridiculus mus,"

But the public confidence in the South Sea Company was not shaken. The
Earl of Oxford declared, that Spain would permit two ships, in
addition to the annual ship, to carry out merchandise during the first
year; and a list was published, in which all the ports and harbours of
these coasts were pompously set forth as open to the trade of Great
Britain. The first voyage of the annual ship was not made till the
year 1717, and in the following year the trade was suppressed by the
rupture with Spain.

The King's speech, at the opening of the session of 1717, made pointed
allusion to the state of public credit, and recommended that proper
measures should be taken to reduce the national debt. The two great
monetary corporations, the South Sea Company and the Bank of England,
made proposals to Parliament on the 20th of May ensuing. The South Sea
Company prayed that their capital stock of ten millions might be
increased to twelve, by subscription or otherwise, and offered to
accept five per cent. instead of six upon the whole amount. The Bank
made proposals equally advantageous. The House debated for some time,
and finally three acts were passed, called the South Sea Act, the Bank
Act, and the General Fund Act. By the first, the proposals of the