AsregardsLaw，heforsometimeentertainedahopethatheshouldberecalledtoFrance，toaidinestablishingitscredituponafirmerbasis。ThedeathoftheRegent，in1723，whoexpiredsuddenly，ashewassittingbythefiresideconversingwithhismistress，theDuchessdePhalaris，deprivedhimofthathope，andhewasreducedtoleadhisformerlifeofgambling。Hewasmorethanonceobligedtopawnhisdiamond，thesoleremnantofhisvastwealth，butsuccessfulplaygenerallyenabledhimtoredeemit。BeingpersecutedbyhiscreditorsatRome，heproceededtoCopenhagen，wherehereceivedpermissionfromtheEnglishministrytoresideinhisnativecountry，hispardonforthemurderofMr。Wilsonhavingbeensentovertohimin1719。Hewasbroughtoverintheadmiral’sship，acircumstancewhichgaveoccasionforashortdebateintheHouseofLords。EarlConingsbycomplainedthataman，whohadrenouncedbothhiscountryandhisreligion，shouldhavebeentreatedwithsuchhonour，andexpressedhisbeliefthathispresenceinEngland，atatimewhenthepeopleweresobewilderedbythenefariouspracticesoftheSouthSeadirectors，wouldbeattendedwithnolittledanger。Hegavenoticeofamotiononthesubject；butitwasallowedtodrop，noothermemberoftheHousehavingtheslightestparticipationinhislordship’sfears。LawremainedforaboutfouryearsinEngland，andthenproceededtoVenice，wherehediedin1729，inveryembarrassedcircumstances。Thefollowingepitaphwaswrittenatthetime
　　“CigitcetEcossaiscelebre，Cecalculateursansegal，Qui，parlesreglesdel’algebre，AmislaFranceal’Hopital。“
　　Hisbrother，WilliamLaw，whohadbeenconcernedwithhimintheadministrationbothoftheBankandtheLouisianaCompany，wasimprisonedintheBastileforallegedmalversation，butnoguiltwaseverprovedagainsthim。Hewasliberatedafterfifteenmonths，andbecamethefounderofafamily，whichisstillknowninFranceunderthetitleofMarquisesofLauriston。
　　InthenextchapterwillbefoundanaccountofthemadnesswhichinfectedthepeopleofEnglandatthesametime，andunderverysimilarcircumstances，butwhich，thankstotheenergiesandgoodsenseofaconstitutionalgovernment，wasattendedwithresultsfarlessdisastrousthanthosewhichwereseeninFrance。
　　Atlengthcorruption，likeageneralflood，Diddelugeall，andavaricecreepingon，Spread，likealow-bornmist，andhidthesun。
　　Statesmenandpatriotspliedalikethestocks，Peeressandbutlersharedalikethebox；
　　Andjudgesjobbed，andbishopsbitthetown，Andmightydukespackedcardsforhalf-a-crown:
　　Britainwassunkinlucre’ssordidcharms。
　　TheSouthSeaCompanywasoriginatedbythecelebratedHarley，EarlofOxford，intheyear1711，withtheviewofrestoringpubliccredit，whichhadsufferedbythedismissaloftheWhigministry，andofprovidingforthedischargeofthearmyandnavydebentures，andotherpartsofthefloatingdebt，amountingtonearlytenmillionssterling。Acompanyofmerchants，atthattimewithoutaname，tookthisdebtuponthemselves，andthegovernmentagreedtosecurethem，foracertainperiod，theinterestofsixpercent。Toprovideforthisinterest，amountingto600，000poundsperannum，thedutiesuponwines，vinegar，Indiagoods，wroughtsilks，tobacco，whale-fins，andsomeotherarticles，wererenderedpermanent。ThemonopolyofthetradetotheSouthSeaswasgranted，andthecompany，beingincorporatedbyActofParliament，assumedthetitlebywhichithaseversincebeenknown。Theministertookgreatcredittohimselfforhisshareinthistransaction，andtheschemewasalwayscalledbyhisflatterers“theEarlofOxford’smasterpiece。“
　　Evenatthisearlyperiodofitshistory，themostvisionaryideaswereformedbythecompanyandthepublicoftheimmenserichesoftheeasterncoastofSouthAmerica。EverybodyhadheardofthegoldandsilverminesofPeruandMexico；everyonebelievedthemtobeinexhaustible，andthatitwasonlynecessarytosendthemanufacturesofEnglandtothecoast，toberepaidahundredfoldingoldandsilveringotsbythenatives。Areport，industriouslyspread，thatSpainwaswillingtoconcedefourports，onthecoastsofChiliandPeru，forthepurposesoftraffic，increasedthegeneralconfidence；andformanyyearstheSouthSeaCompany’sstockwasinhighfavour。
　　PhilipVofSpain，however，neverhadanyintentionofadmittingtheEnglishtoafreetradeintheportsofSpanishAmerica。
　　Negotiationsweresetonfoot，buttheironlyresultwastheassientocontract，ortheprivilegeofsupplyingthecolonieswithnegroesforthirtyyears，andofsendingonceayearavessel，limitedbothastotonnageandvalueofcargo，totradewithMexico，Peru，orChili。Thelatterpermissionwasonlygranteduponthehardcondition，thattheKingofSpainshouldenjoyone-fourthoftheprofits，andataxoffivepercent。ontheremainder。ThiswasagreatdisappointmenttotheEarlofOxfordandhisparty，whowereremindedmuchoftenerthantheyfoundagreeableofthe“Parturiuntmontes，nasciturridiculusmus，“
　　ButthepublicconfidenceintheSouthSeaCompanywasnotshaken。TheEarlofOxforddeclared，thatSpainwouldpermittwoships，inadditiontotheannualship，tocarryoutmerchandiseduringthefirstyear；andalistwaspublished，inwhichalltheportsandharboursofthesecoastswerepompouslysetforthasopentothetradeofGreatBritain。Thefirstvoyageoftheannualshipwasnotmadetilltheyear1717，andinthefollowingyearthetradewassuppressedbytherupturewithSpain。
　　TheKing’sspeech，attheopeningofthesessionof1717，madepointedallusiontothestateofpubliccredit，andrecommendedthatpropermeasuresshouldbetakentoreducethenationaldebt。Thetwogreatmonetarycorporations，theSouthSeaCompanyandtheBankofEngland，madeproposalstoParliamentonthe20thofMayensuing。TheSouthSeaCompanyprayedthattheircapitalstockoftenmillionsmightbeincreasedtotwelve，bysubscriptionorotherwise，andofferedtoacceptfivepercent。insteadofsixuponthewholeamount。TheBankmadeproposalsequallyadvantageous。TheHousedebatedforsometime，andfinallythreeactswerepassed，calledtheSouthSeaAct，theBankAct，andtheGeneralFundAct。Bythefirst，theproposalsoftheSouthSeaCompanywereaccepted，andthatbodyhelditselfreadytoadvancethesumoftwomillionstowardsdischargingtheprincipalandinterestofthedebtduebythestateforthefourlotteryfundsoftheninthandtenthyearsofQueenAnne。Bythesecondact，theBankreceivedalowerrateofinterestforthesumof1，775，027pounds15
　　shillingsduetoitbythestate，andagreedtodeliveruptobecancelledasmanyExchequerbillsasamountedtotwomillionssterling，andtoacceptofanannuityofonehundredthousandpounds，beingaftertherateoffivepercent，thewholeredeemableatoneyear’snotice。Theywerefurtherrequiredtobereadytoadvance，incaseofneed，asumnotexceeding2，500，000poundsuponthesametermsoffivepercentinterest，redeemablebyParliament。TheGeneralFundActrecitedthevariousdeficiencies，whichweretobemadegoodbytheaidsderivedfromtheforegoingsources。
　　ThenameoftheSouthSeaCompanywasthuscontinuallybeforethepublic。ThoughtheirtradewiththeSouthAmericanStatesproducedlittleornoaugmentationoftheirrevenues，theycontinuedtoflourishasamonetarycorporation。Theirstockwasinhighrequest，andthedirectors，buoyedupwithsuccess，begantothinkofnewmeansforextendingtheirinfluence。TheMississippischemeofJohnLaw，whichsodazzledandcaptivatedtheFrenchpeople，inspiredthemwithanideathattheycouldcarryonthesamegameinEngland。Theanticipatedfailureofhisplansdidnotdivertthemfromtheirintention。Wiseintheirownconceit，theyimaginedtheycouldavoidhisfaults，carryontheirschemesforever，andstretchthecordofcredittoitsextremesttension，withoutcausingittosnapasunder。
　　ItwaswhileLaw’splanwasatitsgreatestheightofpopularity，whilepeoplewerecrowdinginthousandstotheRueQuincampoix，andruiningthemselveswithfranticeagerness，thattheSouthSeadirectorslaidbeforeParliamenttheirfamousplanforpayingoffthenationaldebt。VisionsofboundlesswealthfloatedbeforethefascinatedeyesofthepeopleinthetwomostcelebratedcountriesofEurope。TheEnglishcommencedtheircareerofextravagancesomewhatlaterthantheFrench；butassoonasthedeliriumseizedthem，theyweredeterminednottobeoutdone。Uponthe22ndofJanuary1720，theHouseofCommonsresolveditselfintoaCommitteeofthewholeHouse，totakeintoconsiderationthatpartoftheKing’sspeechattheopeningofthesessionwhichrelatedtothepublicdebts，andtheproposaloftheSouthSeaCompanytowardstheredemptionandsinkingofthesame。Theproposalsetforthatgreatlength，andunderseveralheads，thedebtsofthestate，amountingto30，981，712pounds，whichtheCompanywereanxioustotakeuponthemselves，uponconsiderationoffivepercent。perannum，securedtothemuntilMidsummer1727；
　　afterwhichtime，thewholewastobecomeredeemableatthepleasureofthelegislature，andtheinteresttobereducedtofourpercent。
　　Theproposalwasreceivedwithgreatfavour；buttheBankofEnglandhadmanyfriendsintheHouseofCommons，whoweredesirousthatthatbodyshouldshareintheadvantagesthatwerelikelytoaccrue。Onbehalfofthiscorporationitwasrepresented，thattheyhadperformedgreatandeminentservicestothestate，inthemostdifficulttimes，anddeserved，atleast，thatifanyadvantagewastobemadebypublicbargainsofthisnature，theyshouldbepreferredbeforeacompanythathadneverdoneanythingforthenation。Thefurtherconsiderationofthematterwasaccordinglypostponedforfivedays。
　　Inthemeantime，aplanwasdrawnupbytheGovernorsoftheBank。
　　TheSouthSeaCompany，afraidthattheBankmightofferstillmoreadvantageoustermstothegovernmentthanthemselves，reconsideredtheirformerproposal，andmadesomealterationsinit，whichtheyhopedwouldrenderitmoreacceptable。Theprincipalchangewasastipulationthatthegovernmentmightredeemthesedebtsattheexpirationoffouryears，insteadofseven，asatfirstsuggested。TheBankresolvednottobeoutbiddeninthissingularauction，andtheGovernorsalsoreconsideredtheirfirstproposal，andsentinanewone。
　　Thus，eachcorporationhavingmadetwoproposals，theHousebegantodeliberate。Mr。RobertWalpolewasthechiefspeakerinfavouroftheBank，andMr。Aislabie，theChancelloroftheExchequer，theprincipaladvocateonbehalfoftheSouthSeaCompany。Itwasresolved，onthe2ndofFebruary，thattheproposalsofthelatterweremostadvantageoustothecountry。Theywereaccordinglyreceived，andleavewasgiventobringinabilltothateffect。
　　ExchangeAlleywasinafeverofexcitement。TheCompany’sstock，whichhadbeenatahundredandthirtythepreviousday，graduallyrosetothreehundred，andcontinuedtorisewiththemostastonishingrapidityduringthewholetimethatthebillinitsseveralstageswasunderdiscussion。Mr。WalpolewasalmosttheonlystatesmanintheHousewhospokeoutboldlyagainstit。Hewarnedthem，ineloquentandsolemnlanguage，oftheevilsthatwouldensue。Itcountenanced，hesaid，“thedangerouspracticeofstockjobbing，andwoulddivertthegeniusofthenationfromtradeandindustry。Itwouldholdoutadangerousluretodecoytheunwarytotheirruin，bymakingthempartwiththeearningsoftheirlabourforaprospectofimaginarywealth。