South Sea Bubble
- (1720) Speculation mania that caused financial ruin for many British investors.Parliament's acceptance of a proposal by the South Sea Co. to take over the British national debt resulted in an immediate rise in its stock. After soaring from 12812 to over 1,000 in nine months, the bubble of overvalued stock burst and the price per share dropped to 124, dragging other stocks down and leaving many investors ruined. An inquiry by the House of Commons found collusion by several government ministers.
* * *▪ British historythe speculation mania that ruined many British investors in 1720. The bubble, or hoax, centred on the fortunes of the South Sea Company, founded in 1711 to trade (mainly in slaves) with Spanish America, on the assumption that the War of the Spanish Succession, then drawing to a close, would end with a treaty permitting such trade. The company's stock, with a guaranteed interest of 6 percent, sold well, but the relevant peace treaty, the Treaty of Utrecht made with Spain in 1713, was less favourable than had been hoped, imposing an annual tax on imported slaves and allowing the company to send only one ship each year for general trade. The success of the first voyage in 1717 was only moderate, but King George I of Great Britain became governor of the company in 1718, creating confidence in the enterprise, which was soon paying 100 percent interest.In 1720 there was an incredible boom in South Sea stock, as a result of the company's proposal, accepted by Parliament, to take over the national debt. The company expected to recoup itself from expanding trade, but chiefly from the foreseen rise in the value of its shares. These did, indeed, rise dramatically, from 128 1/2 in January 1720 to more than 1,000 in August. Those unable to buy South Sea stock were inveigled by overly optimistic company promoters or downright swindlers into unwise investments. By September the market had collapsed, and by December South Sea shares were down to 124, dragging other, including government, stock with them. Many investors were ruined, and the House of Commons ordered an inquiry, which showed that at least three ministers had accepted bribes and speculated. Many of the company's directors were disgraced. The scandal brought Robert Walpole (Walpole, Robert, 1st earl of Orford), generally considered to be the first British prime minister, to power. He promised to seek out all those responsible for the scandal, but in the end he sacrificed only some of those involved in order to preserve the reputations of the government's leaders. The South Sea Company itself survived until 1853, having sold most of its rights to the Spanish government in 1750.
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South Sea Bubble — von E. M. Ward. Die Südseeblase (engl. South Sea Bubble, auch Südsee (Börsen)schwindel) von 1720 gehört zu den wichtigen negativen wirtschaftlichen Ereignissen, die sich vor dem 20. Jahrhundert zugetragen haben. Mit dem gleichzeitigen… … Deutsch Wikipedia
South Sea Bubble — South Sea Bub|ble, the a serious financial problem in the UK in 1720, which led to many people losing all their money. The South Sea company made large profits by trading with South America, and this encouraged many people to ↑invest their money… … Dictionary of contemporary English
South Sea Bubble — One of the largest stock scams of all time. The U.K. based South Sea Company s shares saw a huge appreciation based on rumor, speculation and false claims before plummeting and eventually becoming worthless. Thousands of people lost their life… … Investment dictionary
South Sea Bubble — (1720). Delirio especulativo que causó la ruina financiera de muchos inversionistas británicos. La aceptación por el parlamento de una propuesta de la South Sea Co. de encargarse de la deuda nacional británica provocó un inmediato aumento de su… … Enciclopedia Universal
South Sea Bubble — noun a financial and political scandal in Great Britain, resulting from the collapse in 1720 of the South Sea Company, sponsored by the king and government after it had taken over the national debt … Australian English dictionary
SOUTH SEA BUBBLE — the name given to the disastrous financial project set on foot by HARLEY (q.v. HARLEY, ROBERT) to relieve the national debt and restore public credit, which produced an unparalleled rush of speculation, ending in the ruin of thousands of… … The Nuttall Encyclopaedia
South Sea Bubble — A ten million pound scheme for monopolizing the trade of England with Spanish America, which was given form in 1711 and failed in 1720 … Ballentine's law dictionary
South Sea Bubble — … Useful english dictionary
South Sea Bubble (play) — South Sea Bubble is a 1950s play by British actor and playwright Noel Coward. It was written during a period of declining popularity for Coward and failed to garner much positive response.Originally written for Gertrude Lawrence under the name of … Wikipedia
South Sea Company — South Sea Bubble von E. M. Ward. Die Südseeblase (engl. South Sea Bubble, auch Südsee (Börsen)schwindel) von 1720 gehört zu den wichtigen negativen wirtschaftlichen Ereignissen, die sich vor dem 20. Jahrhundert zugetragen haben. Mit dem… … Deutsch Wikipedia