asures and alterations, and in some of the books leaves had been torn
out. They also found that some books of great importance had been
destroyed altogether, and that some had been taken away or secreted.
They discovered, moreover, that before the South Sea Act was passed
there was an entry in the Company's books of the sum of L1,259,325 upon
account of stock stated to have been sold to the amount of L574,500.
This stock was all fictitious, and had been disposed of with a view to
promote the passing of the bill. It was noted as sold on various days,
and at various prices, from 150 to 325 per cent.

Being surprised to see so large an amount disposed of, at a time when
the Company were not empowered to increase their capital, the committee
determined to investigate most carefully the whole transaction. The
governor, sub-governor, and several directors were brought before them
and examined rigidly. They found that at the time these entries were
made the Company were not in possession of such a quantity of stock,
having in their own right only a small quantity, not exceeding L30,000
at the utmost. They further discovered that this amount of stock was to
be esteemed as taken or holden by the Company for the benefit of the
pretended purchasers, although no mutual agreement was made for its
delivery or acceptance at any certain time. No money was paid down, nor
any deposit or security whatever given to the Company by the supposed
purchasers; so that if the stock had fallen, as might have been expected
had the act not passed, they would have sustained no loss. If, on the
contrary, the price of stock advanced (as it actually did by the success
of the scheme), the difference by the advanced price was to be made good
by them. Accordingly, after the passing of the act, the account of stock
was made up and adjusted with Mr. Knight, and the pretended purchasers
were paid the difference out of the Company's cash. This fictitious
stock, which had chiefly been at the disposal of Sir John Blunt, Mr.
Gibbon, and Mr. Knight, was distributed among several members of the
Government and their connections, by way of bribe, to facilitate the
passing of the bill. To the Earl of Sunderland was assigned L50,000 of
this stock; to the Duchess of Kendal, L10,000; to the Countess of
Platen, L10,000; to her two nieces, L10,000; to Mr. Secretary Craggs,
L30,000; to Mr. Charles Stanhope (one of the Secretaries of the
Treasury), L10,000; to the Sword Blade