ruining themselves with frantic eagerness, that the South Sea
directors laid before Parliament their famous plan for paying off the
national debt. Visions of boundless wealth floated before the
fascinated eyes of the people in the two most celebrated countries of
Europe. The English commenced their career of extravagance somewhat
later than the French; but as soon as the delirium seized them, they
were determined not to be outdone. Upon the 22nd of January 1720, the
House of Commons resolved itself into a Committee of the whole House,
to take into consideration that part of the King's speech at the
opening of the session which related to the public debts, and the
proposal of the South Sea Company towards the redemption and sinking
of the same. The proposal set forth at great length, and under several
heads, the debts of the state, amounting to 30,981,712 pounds, which
the Company were anxious to take upon themselves, upon consideration
of five per cent. per annum, secured to them until Midsummer 1727;
after which time, the whole was to become redeemable at the pleasure
of the legislature, and the interest to be reduced to four per cent.
The proposal was received with great favour; but the Bank of England
had many friends in the House of Commons, who were desirous that that
body should share in the advantages that were likely to accrue. On
behalf of this corporation it was represented, that they had performed
great and eminent services to the state, in the most difficult times,
and deserved, at least, that if any advantage was to be made by public
bargains of this nature, they should be preferred before a company
that had never done any thing for the nation. The further
consideration of the matter was accordingly postponed for five days.
In the mean time, a plan was drawn up by the Governors of the Bank.
The South Sea Company, afraid that the Bank might offer still more
advantageous terms to the government than themselves, reconsidered
their former proposal, and made some alterations in it, which they