n and gambling had
caused.

The desire for sudden wealth is one of the most common passions of our
nature, and has given rise to more delusions than religious
fanaticism, or passion for military glory. The South Sea bubble was
kindred to that of John Law, who was the author of the Mississippi
Scheme, which nearly ruined France in the reign of Louis XV., and
which was encouraged by the Duke of Orleans, as a means of paying off
the national debt.

[Sidenote: The South Sea Company.]

The wars of England had created a national debt, under the
administration of Godolphin and Marlborough; but which was not so
large but that hopes were entertained of redeeming it. Walpole
proposed to pay it off by a sinking fund; but this idea, not very
popular, was abandoned. It was then the custom for government to
borrow of corporations, rather than of bankers, because the science of
brokerage was not then understood, and because no individuals were
sufficiently rich to aid materially an embarrassed administration. As
a remuneration, companies were indulged with certain commercial
advantages. As these advantages enabled companies to become rich, the
nation always found it easy to borrow. During the war of the Spanish
Succession, the prime minister, Harley, afterwards Earl of Oxford, in
order to raise money, projected the South Sea Company. This was in
1710, and the public debt was ten million pounds sterling, thought at
that time to be insupportable. The interest on that debt was six per
cent. In order to liquidate the debt, Oxford made the duties on wines,
tobacco, India goods, silks, and a few other articles, permanent. And,
to allure the public creditor, great advantages were given to the new
company, and money was borrowed of it at five per cent. This gain of
one per cent., by money borrowed from the company, was to constitute a
sinking fund to pay the debt.

But the necessities of the nation increased so rapidly, that a leading
politician of the day, Sir John Blount, proposed that the South Sea
Company should become the sole national creditor, and should loan to
the government new sums, at an interest of four per cent. New
monopolies were to be given to the company; and it, on the other hand,
offered to give a bonus of three million pounds to the government. The
Bank of England, jealous of the proposal, offered five millions. The
directors of the company then bid seven millions for a charter, nearly
enough to pay off the whole re