Part 3

_August 6_, O.S.--Early in the Morning, on the 30th of _July_, as we were standing in for _Messina_, we saw two Scouts of the _Spanish_ fleet in the _Faro_, very near us; and at the same time a _Felucca_ coming off from the _Calabrian_ shore, assur'd us they saw from the Hills the _Spanish Fleet_ lying by; upon which the Admiral stood thro' the _Faro_ after the scouts, judging they would lead us to their Fleet, which they did, for before Noon we had a fair sight of all their Ships.... Their Fleet consisted of 26 Men of War, great and small, two Fireships, four Bomb Vessels, seven Galleys, and several Ships with Stores and Provisions. The Admiral order'd the _Kent_, _Superbe_, _Grafton_ and _Oxford_, the best Sailors in the Fleet, to make what Sail they could to come up with the _Spaniards_; and that the Ship that could get nearest to them should carry the Lights usually worn by the Admiral, that he might not lose sight of them in the Night, and he made what sail he could with the rest of the Fleet to keep up with them. It being little Wind the _Spanish_ Galleys tow'd their heaviest Sailors all Night. The 31st in the Morning, as soon as it was day, they finding us pretty near up with their Fleet, the Galleys and smaller Ships, with the Fireships, Bomb-Vessels, and Store-Ships separated from their Admiral and bigger Ships, and stood in for the Shore. After whom the Admiral sent Captain _Walton_ in the _Canterbury_, with the _Argyle_ and six Ships more. As those Ships were coming up with them, one of the _Spaniards_ fir'd a Broadside at the _Argyle_. The Admiral seeing those Ships engag'd with the _Spanish_ which were making towards the Shore, sent orders to Captain _Walton_ to rendezvous after the Action at _Syracuse_.... We held our Chace after the _Spanish_ Admiral with three of his Rear Admirals and the biggest Ships, which staid by their _Flags_, till we came near them. The Captains of the _Kent_, _Superbe_, _Grafton_ and _Orford_ having Orders to make all the Sail they could to place themselves by the four Headmost Ships, were the first that came up with them. The Spaniards began by firing their Stern Chace at them. But they having Orders not to fire unless the _Spanish_ Ships repeated their firing, made no return at first, but the _Spaniards_ firing again, the _Orford_ attack'd the _Santa Rosa_, the _St. Charles_ struck without much Opposition, and the _Kent_ took Possession of her. The _Grafton_ attack'd the _Prince of Asturias_, formerly call'd the _Cumberland_, in which was Rear Admiral _Chacon_, but the _Breda_ and _Captain_ coming up, she left that Ship for them to take, which they soon did, and stretched ahead after another 60 Gun Ship, which was at her Starboard Bow while she was engaging the _Prince of Asturias_, and kept firing her Stern-Chace into the _Grafton_. About One o'clock the _Kent_ and _Superbe_ engaged the Spanish Admiral, which with two more Ships fir'd on them, and made a running Fight till about Three, when the _Kent_ bearing down upon her and under her Stern gave her a Broadside, and went away to Leeward of her; then the _Superbe_ put for it and laid the _Spanish_ Admiral on Board, falling on her Weather-Quarter, but the _Spanish_ Admiral shifting her Helm and avoiding her, the _Superbe_ rang'd under her Lee-Quarter, on which she struck to her. At the same time the _Barfleur_ being within Shot of the said _Spanish_ Admiral, one of their Rear Admirals, and another 60 Gun Ship, which were to Windward of the _Barfleur_, bore down and gave her three Broadsides, and then clapt upon a Wind, standing in for the land; the Admiral in the _Barfleur_ stood after them till it was almost Night, but it being little Wind ... he left pursuing them and stood away to the Fleet again, which he found two Hours after Night. The _Essex_ took the _Juno_, the _Montague_ and _Rupert_ took the _Volante_; Vice Admiral _Cornwall_ followed the _Grafton_ to support her ... Rear Admiral Delaval with the _Royal Oak_ chas'd two Ships that went away more Leewardly than the rest, one of them said to be Rear Admiral Crammock, a Scotch or Irish _Renegade_, who had serv'd several years in the English Fleet; but we not having seen them since, know not the Success.[2]

[2] The result of the battle, in which the English had 1,360 guns, the Spanish 1,310, was that fifteen Spanish ships of war, 744 guns in all, one fireship, and one store-ship were taken, and two smaller vessels burnt, and Byng goes on to say that, "as is usual on such Occasions, their Mortification after their Defeat was equal to their Presumption before."

THE SOUTH SEA BUBBLE (1720).

I.

THE PROPOSALS: THE SECOND SCHEME OF THE SOUTH SEA COMPANY.

+Source.+--_The Schemes of the South Sea Company and the Bank of England as Propos'd to the Parliament for the Reducing of the National Debts._ London, 1720.

_To the Honourable the Commons of Great Britain in Parliament Assembled._

The Corporation of the Governors and Company of Merchants, Trading to the South Seas and other Parts of America, and for Encouraging the Fishery, having on the 27th January last presented their Humble Proposal to this Honourable House, for Enlarging the Capital Stock of the said Company, by taking thereinto the several Annuities and Publick Debts therein Mentioned, on the Terms and Conditions in the said Proposal also Mentioned, in which Proposal such Advantages were offer'd to the Publick, as the said Corporation did humbly hope would have been to the entire Satisfaction of this Honourable House, and most conducive to the certain Discharging and Paying off the whole Debt of the Nation, and to which Proposal they humbly crave Leave to refer. But the Governors and Company of the Bank of England having the same day also delivered a Proposal to this Honourable House, for enlarging their Capital Stock, by taking in the same Annuities and Debts on the Terms and Conditions in their Proposal also mentioned.

This Corporation therefore further, to manifest their Zeal and Earnest desire to Contribute their utmost to the reducing and paying off the Publick Debts, crave leave to offer the following Explanations and Amendments to their said Proposal.

I. As to the sixth Article of their said former Proposal, wherein they have humbly desir'd to be Allowed for Charges of Management, for their to be increased Capital, so much as it now costs the Government for the Charges of Paying, Assigning and Accounting for the said Debts, or such Proportion thereof, as the Sum which shall be taken in by the Company, shall bear to the whole of those Debts.

They now offer by way of Explanation of that Article, that the Allowances therein Mentioned, are not to exceed a Proportion to the Allowance they now have by Act of Parliament on their present Capital for that purpose.

II. That whereas, in their seventh Article of their said Proposal it is Mentioned that the Annuities for the Company's present, and to be increased Capital, be continued at the Rates therein Mentioned till Midsummer, 1727. And that from and after that time their then Annuity on their whole Capital, shall be actually reduced to £4 per Cent. per Ann. and likewise be from thenceforth redeemable by Parliament.

They do humbly offer that if this Honourable House do think it more for the Interest of the Publick, that in lieu of the said seventh Article, all the Sums to be taken into the Company's Capital, in pursuance of their proposal, shall be redeemable by Parliament, from and after Midsummer 1724, in Sums not less than £500,000 at a time they do consent thereto.

III. And whereas by the tenth Article of their said former Proposal, they offer'd for the Liberty of Increasing their Capital Stock, as is therein aforesaid; that they would give and pay into his Majesty's Exchequer, for the Service of the Publick, the sum of £3,500,000.

They now humbly Offer, that over and above the said £3,500,000, They will farther give and pay into his Majesty's Exchequer, for the use of the Publick, by four Equal Quarterly Payments on the days Mention'd in their said former Proposal, £500,000 more certain, and also upon all the said Annuities for certain Terms of Years which this Company shall take into their Capital Stock, before the first day of March, 1721, after the rate of four Year and half purchase, by four Quarterly Payments which if all the said Annuities be taken into the said Company, will amount to the Sum of £3,567,503 or thereabouts, to which being added the said £3,500,000 and the said further Sum of £500,000 will amount in the whole to the Sum of £7,567,500 or thereabouts.

IV. That whereas in the eleventh Article of their former Proposal, they did submit that so much as shall arise by the sinking Fund before Midsummer 1727 may from and after paying Off such Part of the Publick Debts, as may be Redeemed within that time, and which shall not be taken into this Company, be applied at the end of every Year towards paying off, in even One Hundred Thousand Pounds, that part of the Company's Capital, which carries £5 _per Cent. per Ann._

They do humbly offer in lieu thereof, that if this Honourable House think fit to make their to be Increased Capital, Redeemable at Midsummer 1724, That the said sinking Fund may till that time be applied half Yearly, to the paying off that part of the Company's which is to carry £5 _per Cent. per Ann._

V. As to the twelfth Article of this Company's former Proposal, Relating to the Circulating of £1,000,000 in Exchequer Bills Gratis, and likewise pay the Interest for that Million, so as no other Exchequer Bills be issued than what shall be Circulated by the Credit of the Exchequer, without the aid of Subscription or Contract.

VI. And Lastly, that this Honourable House may be fully satisfied of the sincere Intentions of this Company to use their best Endeavours to take in all the said Annuities for ninety-nine, and ninety-six Years, which amount to £667,705 8s. 1d. _per Ann._ This Company do further Humbly offer to give and pay into his Majesty's Exchequer, for the Service of the Publick, by four Equal Quarterly Payments, one Years Purchase upon all such of those Annuities as shall happen not to come into the Company's Capital within the time aforesaid.

And whereas this Company is very Sensible, that the Prosperity of the Nation doth greatly depend upon the discharging the Publick Debts (a Motive which Induced them to make the first Propositions of this Publick and beneficial nature) They do Humbly submit these Explanations and Amendments to this Honourable House, flattering themselves that Readiness and Cheerfulness that Ingaged them so much earlier than any other Society, to endeavour to reduce that great Debt under which this Nation is Oppressed, will Intitle them to the favour and preference of this House, since they are willing and do hereby declare they are ready to undertake this great work upon whatever Terms may be offered by any other Company.

By Order of the General Court. JOHN FELLOWS, _Sub-Governour_. CHARLES JOYE, _Dep. Governour_.

_Feb. 1, 1719_

II.

THE BUBBLE BURST.

+Source.+--_The Case of the Borrowers on the South Sea Loans Stated._ Pp. 1-7. London, 1721.

Since the Parliament has thought it of service to the Publick, that the _unhappy sufferers by the South Sea_ should have Relief: and are at present considering how to give it them: I am persuaded, no one will think it either improper or unreasonable, that the case of the _Borrowers on the Loans_ (who in my opinion are the _most unhappy_ of them all) should be truly stated and made publick.

For my part, I will endeavour it, as far as I am able, with Justice to the Company who are their Creditors, and with no more Compassion to these unfortunate People, than their Circumstances honestly deserve: And I have this Satisfaction in what I undertake, that as I believe it is not the Intent of the Members of either of the Honourable Houses to administer Relief with Partiality, or to neglect any set of Men who really want it, should I so far succeed, as to show that _these Borrowers_ do, I can't but hope that _they_ will be esteemed at least worthy _their Care_ and _Protection_.

To what purpose these Loans were opened by the _late Directors_, I need not mention: Every one knows, that without _them_ they could never have perfected _their Scheme_, as they used to term their _Villainy_. It was not enough for them to have raised their Stock to such a Price, as to have been _only_ able to have discharged their Agreement with the Government; they had larger Views, they were to satisfy their own Avarice, and could not therefore give too great an imaginary Value to their Stock. _These Managers_ (unhappily for us) set out with the good opinion of Mankind: they were esteemed too wise to be deceived themselves, and too honest to deceive their Friends. Thus qualified for Mischief, they soon began it: they soon intoxicated the Brains of all they talked with, gave them wild Notions of the rising Value of their Stock, and persuaded them at any rate to put themselves in Fortune's way: Having with great Art and Industry gained a _Credit_ to their Stock, they immediately upon it took in the first Subscriptions; but these Subscriptions having drawn a great Quantity of Money into their hands, they apprehended the rising Spirit of the Stock might soon be checked for want of Money, and their Project by it injured: For _even then_ the Species of our Nation was not infinite, it was therefore necessary to contrive some Means to carry on _quick Circulations_ of it: and the Means contrived was to issue Money on these Loans. The Success they had we all remember; the Price increased prodigiously, and, if I am not mistaken, above £100 _per Cent._ in a Day. And indeed this Success was very probable: for these Loans served two Ends at once of the greatest moment to their Schemes: While they furnished the unhappy Borrowers with Money to purchase Stock with, they gave fresh Credit to the Stock, and raised the Price: For when the _Directors_, who must be supposed to know what they were doing, had put so great a confidence in their Stock, as to lend such Sums upon the Security of _that alone_, others might with good reason take courage, and trust it too. And their Cunning upon this occasion was very extraordinary, for they were not contented with the Credit they gave to their Stock by this Act, which was a tacit Declaration that they knew it to be intrinsically worth as much or more than what they ventured to lend on it; but they were diligent in private Companies to confirm Men in such Opinion of it, by a constant Ridicule of the Bank for their pitiful and cautious Loan of £100 _per Cent._ To this Step are greatly owing all our Misfortunes: The most Prudent now began to blame themselves for the most unjust Suspicions they had entertain'd of so good a Project. A Man of moderate Fortune now seem'd poor by the Vast Riches all about him had so suddenly acquired. All grew impatient and uneasy, who were not in this Stock, the Managers were idolised, and only they were happy, who had Directors for their Friends. The Merchant, who thro' a long Diligence and great Variety of Hazard had gained a small Estate, grew mad to see so many idle Fellows enrich themselves within a day or two. The honest Country Gentleman, who by good Management and wise economy had been an Age in paying off a Mortgage, or saving a few small Portions for his younger Children, could not bear the big Discourse and Insults of this _New Race_. Both laid aside their Prudence, and at last became unhappy Converts to _South Sea_: Both were persuaded now to use their Diligence, and recover that time their Disbelief had lost them. The one despised his Trade, and sold his Effects, at any rate, to try his Fortune: The other mortgaged what he could, or sold it for a _little stock_ or _Third Subscription_: And now both are undone, both Beggars. I should think Cases of such Distress as these could not be reflected on without even Humanity itself becoming painful; and yet, whether it proceeds from such Cases being frequent and daily seen, or from an Hardness of Heart, which Providence for a Judgment has suffered to fall on us, I know not; but such Cases are scarce pitied by us: Every one still pursues his own Interest, and seems to grudge the Expense even of a few Shillings, to save thousands from Destruction.

SIR ROBERT WALPOLE AS PRIME MINISTER (1721-1741).

I.

+Source.+--John, Baron Hervey (1696-1743), _Memoirs_, 1848. Vol. i., pp. 23-25.

No man ever was blessed with a clearer head, a truer or quicker judgment, or a deeper insight into mankind; he knew the strength and weakness of everybody he had to deal with, and how to make his advantage of both; he had more warmth of affection and friendship for some particular people than one could have believed it possible for any one who had been so long raking in the dirt of mankind to be capable of feeling for so worthless a species of animals. One should naturally have imagined that the contempt and distrust he must have had for the species in gross, would have given him at least an indifference and distrust towards every particular. Whether his negligence of his enemies, and never stretching his power to gratify his resentment of the sharpest injury, was policy or constitution, I shall not determine: but I do not believe anybody who knows these times will deny that no minister ever was more outraged, or less apparently revengeful. Some of his friends, who were not unforgiving themselves, nor very apt to see imaginary faults in him, have condemned this easiness in his temper as a weakness that has often exposed him to new injuries, and given encouragement to his adversaries to insult him with impunity. Brigadier Churchill, a worthy and good-natured, friendly, and honourable man, who had lived Sir Robert's intimate friend for many years, and through all the different stages of his power and retirement, prosperity and disgrace, has often said that Sir Robert Walpole was so little able to resist the show of repentance in those from whom he had received the worst usage, that a few tears and promises of amendment have often washed out the stains even of ingratitude.

In all occurrences, and at all times, and in all difficulties, he was constantly present and cheerful; he had very little of what is generally called insinuation, and with which people are apt to be taken for the present, without being gained; but no man ever knew better among those he had to deal with who was to be had, on what terms, by what methods, and how the acquisitions would answer. He was not one of those projecting systematical great geniuses who are always thinking in theory, and are above common practice: he had been too long conversant in business not to know that in the fluctuation of human affairs and variety of accidents to which the best concerted schemes are liable, they must often be disappointed who build on the certainty of the most probable events; and therefore seldom turned his thoughts to the provisional warding off future evils which might or might not happen; or the scheming of remote advantages, subject to so many intervening crosses; but always applied himself to the present occurrence, studying and generally hitting upon the properest method to improve what was favourable, and the best expedient to extricate himself out of what was difficult. There never was any minister to whom access was so easy and so frequent, nor whose answers were more explicit. He knew how to oblige when he bestowed, and not to shock when he denied: to govern without oppression, and conquer without triumph. He pursued his ambition without curbing his pleasures, and his pleasures without neglecting his business; he did the latter with ease, and indulged himself in the other without giving scandal or offence. In private life, and to all who had any dependence upon him, he was kind and indulgent; he was generous without ostentation, and an economist without penuriousness; not insolent in success, nor irresolute in distress; faithful to his friends, and not inveterate to his foes.

II.

+Source.+--Horace Walpole's _Reminiscences_, _Works_, 1798. Vol. iv., p. 271.

It was an instance of Sir Robert's singular good fortune, or evidence of his talents, that he not only preserved his power under two successive monarchs, but in spite of the efforts of both their mistresses to remove him. It was perhaps still more remarkable, and an instance unparalleled, that Sir Robert governed George the first in Latin, the King not speaking English, and his minister not German, nor even French. It was much talked of, that Sir Robert, detecting one of the Hanoverian ministers in some trick or falsehood before the King's face, had the firmness to say to the German, "Mentiris, impudentissime!"

WOOD'S HALFPENCE: THE FIRST DRAPIER'S LETTER (1724).

+Source.+--_Works of Jonathan Swift_. Pp. 13 _seqq._ Bohn's edition, 1903.

_To the Tradesmen, Shop-Keepers, Farmers, and Common People in General of Ireland._

BRETHREN, FRIENDS, COUNTRYMEN AND FELLOW-SUBJECTS,

What I intend now to say to you, is, next to your duty to God and the care of your salvation, of the greatest concern to yourselves, and your children, your bread and clothing, and every common necessary of life entirely depend upon it. Therefore I do most earnestly exhort you as men, as Christians, as parents, and as lovers of our country, to read this paper with the utmost attention, or get it read to you by others; which that you may do at the less expense, I have ordered the printer to sell it at the lowest rate.

It is a great fault among you, that when a person writes with no other intention than to do you good, you will not be at the pains to read his advice: One copy of this paper may serve a dozen of you, which will be less than a farthing a-piece. It is your folly that you have no common or general interest in your view, not even the wisest among you, neither do you know or enquire, or care who are your friends, or who are your enemies.

About three years ago a little book[3] was written to advise all people to wear the manufactures of this our own dear country: It had no other design, said nothing against the King or Parliament, or any man, yet the POOR PRINTER was prosecuted two years, with the utmost violence, and even some WEAVERS themselves, for whose sake it was written, being upon the JURY, FOUND HIM GUILTY. This would be enough to discourage any man from endeavouring to do you good, when you will either neglect him or fly in his face for his pains, and when he must expect only danger to himself and loss of money, perhaps to his ruin.

However I cannot but warn you once more of the manifest destruction before your eyes, if you do not behave yourselves as you ought.

I will therefore first tell you the plain story of the fact; and then I will lay before you how you ought to act in common prudence, and according to the laws of your country.