deemable debt of the nation; which,
however, could not be redeemed, so long as there were, in addition,
irredeemable annuities to the amount of eight hundred thousand pounds
yearly. It became, therefore, an object of the government to get rid,
in the first place, of these irredeemable annuities; and this could be
effected, if the national creditor could be induced to accept of
shares in the South Sea Company, instead of his irredeemable
annuities, or, as they are now variously called, consols, stocks, and
national funds. The capital was not desired; only the interest on
capital. So many monopolies and advantages were granted to the
company, that the stock rose, and the national creditor was willing to
part with his annuities for stock in the company. The offer was,
therefore, accepted, and the government got rid of irredeemable
annuities, and obtained seven millions besides, but became debtor to
the company. A company which could apparently afford to pay so large a
bonus to government for its charter, and loan such large sums as the
nation needed, in addition, at four per cent., was supposed to be
making most enormous profits. Its stock rose rapidly in value. The
national creditor hastened to get rid of irredeemable annuities--a
national stock which paid five per cent.--in order to buy shares which
might pay ten per cent.

[Sidenote: Opposition of Walpole.]

Walpole, then paymaster of the forces, opposed the scheme of Blount
with all his might, showed that the acceptance of the company's
proposal would countenance stockjobbing, would divert industry from
its customary channels, and would hold out a dangerous lure to the
unsuspecting to part with real for imaginary property. He showed the
misery and confusion which existed in France from the adoption of
similar measures, and proved that the whole success of the scheme must
depend on the rise of the company's stock; that, if there were no
rise, the company could not afford the bonus, and would fail, and the
obligation of the nation remain as before. But his reasonings were of
no avail. All classes were infatuated. All people speculated in the
South Sea stock. And, for a while, all people rejoiced; for, as long
as the stock continued to rise, all people were gainers.

And the stock rose rapidly. It soon reached three hundred per cent.
above the original par value, and this in consequence of the promise
of great dividends. All hastened to buy such lucrative property. The