n
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 a subscription of three
millions for the support of public credit, on the usual terms of 15l. per
cent deposit, 3l. per cent premium, and 5l. 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. Their
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, who had hitherto been the chief cashiers of the
South-Sea company, stopped payment. This being looked upon as but the
beginning of evil, occasioned a great run upon the Bank, who were now
obliged to pay out money much faster than they had received it upon the
subscription in the morning. The day succeeding was a holiday (the 29th of
September), and the Bank had a little breathing time. They bore up against
the storm; but their former rivals, the South-Sea company, were wrecked
upon it. Their stock fell to one hundred and fifty, and gradually, after
various fluctuations, to one hundred and thirty-five.

The Bank, finding they were not able to restore public confidence, and
stem the tide of ruin, without running the risk of being swept away with
those they intended to save, declined to carry out the agreement into
which they had partially entered. They were under no obligation whatever
to continue; for the so-called Bank contract was nothing more than the
rough draught of an agreement, in which blanks had been left for several
important particulars, and which contained no penalty for their secession.
"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 foundation,
being fraud