This is a great book and conveys the nuances of the period excellently. Books go search hello select your address alexa can help at home. The south sea company was a british jointstock company founded in 1711, created as a. The company was formed in 1711 by robert harley, who needed allies to carry through the peace negotiations to end the war of the spanish succession. Sir robert walpole, first earl of oxford 16761745 he has the honor of being the first prime minister, primus pares, first among equals, who served under george i and george ii. Robert walpole, once imprisoned for financial chicanery, assumes political control and becomes prime minister. Soon after walpole s return to office in 1720, he was called upon to salvage the financial wreckage resulting from the south sea bubble, in which he himself lost a substantial amount of money. South sea bubble article about south sea bubble by the. Overall, this text serves as an excellent, entertaining introduction to the bubble. The worlds first great financial scandal hardcover april 29, 2003. 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 companys stock, with a guaranteed. Diana norman cecily fitzhenry, married against her wishes, finds that her husband has invested and lost her fortune in the south sea bubble. The south sea bubble was the biggest financial disaster in the 18th.
He was the fifth of nineteen children, but by the death of the eldest son he became heir to his father at the age of twentytwo. John gay 30 june 1685 4 december 1732 was an english poet and dramatist and member of the scriblerus club. With knight finally gone, walpole teams up with john blunt to pin the blame for the south sea stock bubble on his political opponents. During this time he played an important role in restoring government credit after the the south sea bubble financial crisis. The south sea bubble was a unique episode in the history of britain. The case of the south sea subscription shares pdf, oxford economic papers. Robert walpole managed to wind it down with minimal political and economic damage, although some losers fled to exile or committed suicide.
Kind and a good financier he was picked out by the king george i to clean up the mess caused by the south sea bubble in 1720. The scandal brought robert walpole, generally considered to be the first. A caricature of the day on the south sea company, 1720. The secret history of the south sea bubble by malcolm. Jamess followers the jacobites conspire and are persecuted. Balens account of the south sea bubble is an entertaining account rather than an exhaustive historical examination of the events surrounding the south sea companies rise and fall in the early 18th century. Walpole s decisions were pivotal to the affairs of the age, dealing with the fallout of the south sea bubble and the feuds with ireland and men of repute such as bolingbroke. South sea bubble was also a major turning point in british political history as well as the countrys first significant stock market crash. Walpole was now britains first prime minister, although this title was unofficial, and his reign of 21 years was longer than that of any of his successors.
Robert walpole, 1st earl of orford, british statesman in power 172142, generally regarded as the first british prime minister. The british had attempted to break the spanish stronghold on the americas since the reign of queen elizabeth i, either by force or license. Robert walpole, who had been against the south sea company from the beginning, took charge and sorted out this terrible financial mess. The south sea bubble has become legendary, synonymous with ruin and bankruptcy, with big business running rampantly out of control. It shocked the nation, but it was not a fatal disaster because the country was wealthy and essentially sound. South sea bubble, popular name in england for the speculation in the south sea company, which failed disastrously in 1720. Much of the plays satire was aimed at sir robert walpole. The only property left to her is a crumbling inn, which she turns to. The south sea bubble of 1720 is a famous example of a financial crash. Nevertheless, the political intrigue with walpole cast as the machiavelli of his day is well written. With knight finally gone, walpole teams up with john blunt to pin the blame for the south sea stock bubble on his political opponents, conveniently clearing the way for himself to become. In the interval much new manuscript material has become available which has radically altered our knowledge and.
List of books and articles about robert walpole online. For it was as a result of the aftermath of the bubble that robert walpole came to attain the post of chief minister in britain in 1722. The south sea bubble scandal history of britain britain express. Books go search hello select your address alexa can help at.
The south sea companys ships, he notes, had not sailed anywhere near the south seas in 1720, and many saw through the scheme quickly enough to get out with their money. Different government departments arranged their own loans and expended money with little financial oversight. Walpole was the third son of colonel robert walpole by his wife. This is not to say that the book lacks historical analysis and insight but it does not qualify for the sobriquet of a learned text. The south sea bubble collection baker library bloomberg. The south sea bubble of 1720 was a major financial crash in london. The whigs horatio townshend, brother in law of robert walpole, and the duke of. South sea bubble, the speculation mania that ruined many british. When robert harley steps in as englands new chancellor of the exchequer, he discovers that not only is the government deeply in debt, but no one knows quite how much debt it. Ministry and government of greatbritain vindicated. However, the government debt was dramatically reduced. South sea bubble robert walpole, the first prime minister a caricature of the day on the south sea company, 1720 the whigs under king william had created the great financial corporation of the bank of england. Sir robert walpole scoundrel, genius and britains first prime minister.
Robert walpole, 1st earl of orford prime minister of. He also passed several elements of trade legislation and encouraged commerce in the british colonies. However, the south sea bubble was popularly supposed to. But the company had the kings imprimatur, the ear of people who could make things happen, and the political clout to close down other speculative operations that were. He was made chancellor of exchequer and he divided the national debt that had been the south sea company into three, between the bank of england, the treasury and the sinking fund.
Novel set against the background of the south sea bubble. Pamphlets, books and artworks of all sorts travelled around the same transport. South sea bubble, the speculation mania that ruined many british investors in 1720. The south sea bubble is one of the oldest asset bubbles out there and the first ever documented market manipulation example. He is best remembered for the beggars opera 1728, a ballad opera. Pamphlets, books and artworks of all sorts travelled around the same transport networks. Walpole s instinct was that south sea bubble or not, the banking system had to be protected. Malcolm balens history of the south sea bubble, a very english deceit. From 1700 to 1850, britain was involved in 7 wars or rebellions.
The worlds first great financial scandal 9780007161775. It starts with a name, and not a very memorable name. But a financial crisis of 1720, the south sea bubble, brings to power the great whig minister robert walpole. At first it seemed that the newly formed south sea. Robert walpole, however, sees this as an opportunity to make himself a hero of the. Malcolm balens history of the south sea bubble, a very english deceit, reveals the greed and credulity behind the first great stockmarket sting peter jay sat 10 aug 2002 18. They expounded, that they found many books and stock missing. It came at a time when credit was a new plaything and the dangers of inflation were dimly realized. South sea bubble mises wiki, the global repository of. Only a generation earlier, the pretender failed to take the crown. The company at the centre of englands notorious bubble of 1720 has been in business for nearly ten years.
The chancellor of the exchequer, robert harley, convinced parliament to look into straightening out this mess. A reassessment of sir robert walpole s life and work has long been needed. He deliberately cultivated a frank, hearty manner, but his political subtlety has scarcely been equaled. Walpole lived in 10 downing street from 1735 having insisted that it. The south sea company asset bubble of great britain. Is it just coincidence that, as schools and universities.
He had gambled not on south sea stocks, but on his own political future, by resigning offices, with his brotherinlaw, lord townshend, in 1717, and entering into furious. When the ledger of the south sea trading companys bookkeeper, robert knight, threatened to expose the full scale of the companys bribery, walpole conveniently arranged for knight to disappear. Plumbs biography is the first fully documented study since archdeacon coxes life and administration of sir robert walpole which appeared more than an a century and a half ago. Walpole the first prime minister a history of britain. Knight hopped ship to the spanish netherlands, then from there orchestrated knights escape from austrian custody when he was later apprehended. The longestserving of all prime ministers, he was also the first. The lesson of the south sea bubble should have been clear to everyone, namely that if a thing looks too good to be true, it almost certainly is. World heritage encyclopedia, the aggregation of the largest online encyclopedias available, and the most definitive collection ever assembled. Walpole lived in 10 downing street from 1735 having. Robert walpoles handling of the situation enabled him to. The 1st earl was born 17 december 1702, the only son by his 1st wife, martha powell 16811718, of robert knight 1675111744 who became notorious as the cashier of the south sea company partly responsible for the south sea bubble, who absconded to france with a fortune and set up as a banker in paris. It immediately followed a similar crash on the paris stock market, known as the mississippi bubble.