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Memoirs of Extraordinary Popular Delusions — Volume 1 by Charles Mackay
page 87 of 314 (27%)
be reduced to beggary. The consternation is inexpressible-- the rage
beyond description, and the case altogether so desperate that I do not
see any plan or scheme so much as thought of for averting the blow, so
that I cannot pretend to guess what is next to be done." Ten days
afterwards, the stock still falling, he writes,--"The Company have
yet come to no determination, for they are in such a wood that they
know not which way to turn. By several gentlemen lately come to town,
I perceive the very name of a South-Sea-man grows abominable in every
country. A great many goldsmiths are already run off, and more will
daily. I question whether one-third, nay, one-fourth, of them can
stand it. From the very beginning, I founded my judgment of the whole
affair upon the unquestionable maxim, that ten millions (which is more
than our running cash) could not circulate two hundred millions,
beyond which our paper credit extended. That, therefore, whenever that
should become doubtful, be the cause what it would, our noble state
machine must inevitably fall to the ground."

On the 12th of September, at the earnest solicitation of Mr.
Secretary Craggs, several conferences were held between the directors
of the South Sea and the directors of the Bank. A report which was
circulated, that the latter had agreed to circulate six millions of
the South Sea Company's bonds, caused the stock to rise to six hundred
and seventy; but in the afternoon, as soon as the report was known to
be groundless, the stock fell again to five hundred and eighty; the
next day to five hundred and seventy, and so gradually to four
hundred. [Gay (the poet), in that disastrous year, had a present from
young Craggs of some South Sea stock, and once supposed himself to be
master of twenty thousand pounds. His friends persuaded him to sell
his share, but he dreamed of dignity and splendour, and could not bear
to obstruct his own fortune. He was then importuned to sell as much as
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