Page:Memoirs of Extraordinary Popular Delusions and the Madness of Crowds Vol 1.djvu/82

66 not relieve, and received all overtures with visible reluctance. But the universal voice of the nation called upon it to come to the rescue. Every person of note in commercial politics was called in to advise in the emergency. A rough draft of a contract drawn up by Mr. Walpole was ultimately adopted as the basis of further negotiations, and the public alarm abated a little.

On the following day, the 20th of September, a general court of the South-Sea company was held at Merchant Tailors' Hall, in which resolutions were carried, empowering the directors to agree with the Bank of England, or any other persons, to circulate the company's bonds, or make any other agreement with the Bank which they should think proper. One of the speakers, a Mr. Pulteney, said it was most surprising to see the extraordinary panic which had seized upon the people. Men were running to and fro in alarm and terror, their imaginations filled with some great calamity, the form and dimensions of which nobody knew: Black it stood as night— Fierce as ten furies—terrible as hell." At a general court of the Bank of England held two days afterwards, the governor informed them of the several meetings that had been held on the affairs of the South-Sea company, 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 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