to secure them for a certain period the interest
of six per cent. To provide for this interest, amounting to 600,000l. per
annum, the duties upon wines, vinegar, India goods, wrought silks,
tobacco, whale-fins, and some other articles, were rendered permanent. The
monopoly of the trade to the South Seas was granted, and the company,
being incorporated by act of parliament, assumed the title by which it has
ever since been known. The minister took great credit to himself for his
share in this transaction, and the scheme was always called by his
flatterers "the Earl of Oxford's masterpiece."

[Illustration: HARLEY EARL OF OXFORD]

Even at this early period of its history the most visionary ideas were
formed by the company and the public of the immense riches of the eastern
coast of South America. Every body had heard of the gold and silver mines
of Peru and Mexico; every one believed them to be inexhaustible, and that
it was only necessary to send the manufactures of England to the coast to
be repaid a hundred fold in gold and silver ingots by the natives. A
report, industriously spread, that Spain was willing to concede four ports
on the coasts of Chili and Peru for the purposes of traffic, increased the
general confidence, and for many years the South-Sea Company's stock was
in high favour.

Philip V. of Spain, however, never had any intention of admitting the
English to a free trade in the ports of Spanish America. Negotiations were
set on foot, but their only result was the _assiento_ contract, or the
privilege of supplying the colonies with negroes for thirty years, and of
sending once a year a vessel, limited both as to tonnage and value of
cargo, to trade with Mexico, Peru, or Chili. The latter permission was
only granted upon the hard condition, that the King of Spain should enjoy
one-fourth of the profits, and a tax of five per cent on the remainder.
This was a great disappointment to the Earl of Oxford and his party, who
were reminded much oftener than they found agreeable of the

"_Parturiunt montes, nascitur ridiculus mus_."

But the public confidence in the South-Sea Company was not shaken. The
Earl of Oxford declared that Spain would permit two ships, in addition to
the annual ship, to carry out merchandise during the first year; and a
list was published, in which all the ports and harbours of these coasts
were pompously set forth as open to the trade of Great Britain. The first
voyage of the annual