subscription at
some future period to a sailcloth-factory, projected by a certain
capitalist. These "permits" sold at one time for $300 each.

But the more sensible members of Government soon exerted their influence
against these lesser and more palpable humbugs. Some accounts say that
the South Sea Company itself grew jealous, for it was reckoned that
these "side-shows" called for a total amount of $1,500,000,000, and
itself took legal means against them. At any rate, an "order in council"
was published, peremptorily dismissing and dissolving them all.

During August, it leaked out that Sir John Blunt and some other
"insiders" had sold out their South Sea stock. There was also some
charges of unfairness in managing subscriptions. After so long and so
intense an excitement, the time for reaction and collapse was come. The
price of stock began to fall in spite of all that the directors could
do. September 2, it was down to 700.

A general meeting of the company was held to try to whitewash matters,
but in vain. The stock fell, fell, fell. The great humbug had received
its death-blow. Thousands of families saw beggary staring them in the
face, grasping them with its iron hand. The consternation was
inexpressible. Out of it a great popular rage began to flame up, just as
fires often break out among the prostrate houses of a city ruined by an
earthquake. Efforts were meanwhile vainly made to stay the ruin by help
from the Bank of England. Bankers and goldsmiths (then often doing a
banking business) absconded daily. Business corporations failed. Credit
was almost paralyzed. In the end of September, the stock fell to 175,
150, 135.

Meanwhile violent riots were feared. South Sea directors could not be
seen in the streets without being insulted. The King, then in Hanover,
was imperatively sent for home, and had to come. So extensive was the
misfortune and the wrath of the people, so numerous the public meetings
and petitions from all over the kingdom, that Parliament found it
necessary to grant the public demand, and to initiate a formal inquiry
into the whole enterprise. This was done; and the foolish, swindled,
disappointed, angry nation, through this proceeding, vented all the
wrath it could upon the persons and estates of the managers and officers
of the South Sea Company. They were forbidden to leave the kingdom,
their property was sequestrated, they were placed in custody and
examined. Those of them in Parliament we