impoverished.

In this general distress, Walpole was summoned to power, in older to
extricate the nation, on the eve of bankruptcy. He proposed a plan,
which was adopted, and which saved the credit of the nation. He
ingrafted nine millions of the South Sea stock into the Bank of
England, and nine millions more into the East India Company; and
government gave up the seven millions of bonus which the company had
promised.

By this assistance, the company was able to fulfil its engagements,
although all who purchased stock when it had arisen beyond one hundred
per cent. of its original value, lost money. It is strange that the
stock, after all, remained at a premium of one hundred per cent.; of
course, the original proprietors gained one hundred per cent., and
those who paid one hundred per cent. premium lost nothing. But these
constituted a small fraction of the people who had speculated, and who
paid from one hundred to nine hundred per cent. premium. Government,
too, gained by reducing interest on irredeemable bonds from five to
four per cent., although it lost the promised bonus of seven millions.

The South Sea bubble did not destroy the rage for speculation,
although it taught many useful truths--that national prosperity is not
advanced by stockjobbing; that financiers, however great their genius,
generally overreach themselves; that great dividends are connected
with great risk; that circumstances beyond human control will defeat
the best-laid plan; that it is better to repose upon the operation of
the ordinary laws of trade; and that nothing but strict integrity and
industry will succeed in the end. From the time of Sir Robert Walpole,
money has seldom been worth, in England, over five per cent., and
larger dividends on vested property have generally been succeeded by
heavy losses, however plausible the promises and clear the statements
of stockjobbers and speculators.

[Sidenote: Enlightened Policy of Walpole.]

After the explosion of the South Sea Company, Walpole became possessed
of almost unlimited power. And one of the first objects to which he
directed attention, after settling the finances, was the removal of
petty restrictions on commerce. He abolished the export duties on one
hundred and six articles of British manufacture, and allowed
thirty-eight articles of raw material to be imported duty free. This
regulation was made to facilitate trade with the colonies, and prevent
them from manufacturing; a