adding that the directors had not yet
thought fit to come to any decision upon the matter. A resolution was
then proposed, and carried without a dissentient voice, empowering the
directors to agree with those of the South Sea to circulate their bonds
to what sum and upon what terms and for what time they might think
proper. Thus both parties were at liberty to act as they might judge
best for the public interest.

Books were opened at the bank for subscription of three millions for the
support of public credit, on the usual terms of 15 pounds per cent.
deposit, 3 pounds per cent. premium, and 5 pounds per cent. interest. So
great was the concourse of people in the early part of the morning, all
eagerly bringing their money, that it was thought the subscription would
be filled that day; but before noon the tide turned. In spite of all
that could be done to prevent it, the South Sea Company's stock fell
rapidly. Its bonds were in such discredit that a run commenced upon the
most eminent goldsmiths and bankers, some of whom, having lent out great
sums upon South Sea stock, were obliged to shut up their shops and
abscond. The Sword-blade Company, which had hitherto been the chief
casher of the South Sea Company, stopped payment. This, being looked
upon as but the beginning of evil, occasioned a great run upon the bank,
which was now obliged to pay out money much faster than it had received
it upon the subscription in the morning. The day succeeding was a
holiday (September 29th), and the bank had a little breathing-time. It
bore up against the storm; but its former rival, the South Sea Company,
was wrecked upon it. Its stock fell to 150, and gradually, after various
fluctuations, to 135.

The bank, finding it was not able to restore public confidence and stem
the tide of ruin, without running the risk of being swept away, with
those it intended to save, declined to carry out the agreement into
which it had partially entered. "And thus," to use the words of the
_Parliamentary History_, "were seen, in the space of eight months, the
rise, progress, and fall of that mighty fabric, which, being wound up by
mysterious springs to a wonderful height, had fixed the eyes and
expectations of all Europe, but whose foundations, being fraud,
illusion, credulity, and infatuation, fell to the ground as soon as the
artful management of its directors was discovered."

BACH LAYS THE FOUNDATION OF MODERN MUSIC

A.D. 1723

HENRY TIP