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Bank, died an heroic death, strangely illustrative of the career of bank directors of the olden time. As deputy-governor of the Bank of England, he came into repeated contact with King William, his ministers, and generals, and not unfrequently had to follow them to the wars. At the time the King undertook the siege of Namur, in July, 1695, there were some important negotiations pending between the Bank and the Government, and, to expedite them, Mr. Godfrey went over to the Netherlands. Arrived at Namur, he was admitted into the intimacy of King William, with whom he had frequent conversations regarding the supply of money-then, as now, well known to be the "sinews of war." Conversing thus one day, during a heavy cannonade, both banker and King ventured too near the enemy, and a heavy shot struck down the deputygovernor of the Bank of England at the side of his Majesty. It was the first time in history— and will, probably, be the last-of a banker killed by a cannon ball in the exercise of his duties.

IV. THE SOUTH SEA BUBBLE.

ONE of the more immediate consequences of the successful establishment of the Bank of England was the rise of a number of bubble companies, professedly engaged in banking, but in reality in cheating the public out of their money. The pioneer of these fictitious undertakings was a company called the "Mine Adventurers of England," at the head of whom was Sir Humphrey Mackworth, who turned out to be one of the most clever rogues of the time. The "Mine Adventurers" had made banking their chief occupation, and their issue of notes in a short time became so large as seriously to alarm the Government and the directors of the Bank of England. To put a stop to the issue of noteswhich was considered at the time an essential feature in banking; so essential, in fact, as to constitute the very foundation of the businessit was enacted by Parliament "that during the continuance of the corporation of the Governor

and Company of the Bank of England, it shall not be lawful for any body politic or corporate whatsoever to borrow, owe, or take up any sum or sums of money in their bills or notes payable at demand." The same clause prohibited the establishment of any bank with more than six partners: which law was enacted particularly as a protection for the Bank of England. It was so understood at the time, and it did indeed have the effect of preventing any other joint-stock bank from being formed for some time after. It did not prevent, however, the growth of the most colossal bubbles that ever appeared in the financial world. The crown and climax of these swindling concerns was the famous South Sea Company.

The scheme was projected by Sir John Blunt, a pious scrivener, and shrewd speculator in the funds. He was accustomed to preach against the corruption and luxury of the age, and to insist upon high moral rectitude and puritanical severity of manners. Pope has immortalised his "tearless eyes" :

"God cannot love,' says Blunt, with tearless eyes;
'The wretch he starves, and piously denies !'"'

The charmingly simple object of Blunt's scheme was to discharge the national debt, by reducing all the funds into one. On the 22d of January,

1720, the House of Commons resolved itself into a committee to take the plan into consideration; and a subsequent proposition made by the South Sea Company, to unite the whole of the debts of the State, amounting to £30,981,712 at 5 per cent. until the year 1727, and after that period at 4 per cent.-for which they were to pay three millions and a half-met with great approbation from most of the members of the House as well as the Government. The friends of the Bank of England in Parliament obtained, with great difficulty, a postponement of the question for five days, which delay was made use of by the Bank authorities, who offered in the meanwhile five millions for the same privileges, being an advance of one million and a half on the proposition of the South Sea Company. The latter thereupon bid seven and a half millions, on which rate again the Bank of England advanced, by offering to give £1,700 Bank Stock for every hundred pounds irredeemable long annuities. Fortunately for the Bank of England, but unfortunately for the country, the offer of the South Sea Company met with most favour. The former ceased its bidding, and the latter remained in possession of its dangerous bargain. At one time there appears to have been some idea of

dividing the “advantages" between the Bank and the South Sea Company; but Sir John Blunt on being consulted at once negatived this proposition by exclaiming, "No, sir, we will never divide the child."

The story of the rise and fall of the South Sea Company-the most gigantic financial imposition the world has ever seen-need not be repeated here. The directors were dealers while the success of the swindle lasted, and boldly administered to the cupidity of their disciples. Dukes and duchesses had their hundreds of thousands, and secretaries of state their tens of thousands. Everybody speculated, and everybody rejoiced -while it lasted. For a time, companies of all kinds were started; prices of the most extrayagant description were realized, and notions of the most extraordinary character brought forward. Two persons, a lady and a gentleman, declined to realize less than £3,000,000 each, at which price the latter thought he might purchase the crown of Poland. The bubble rose to its highest in June, 1720, when South Sea stock was sold at above £1000. All possible artifices were resorted to for maintaining this monstrous price. The agents of the directors-some of whom, by this time, had been created baronets, "for their

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