South Sea Bubble

A scheme profe edly for trading to the Pacific, originally launched in 1711. In 1720 Sir John Blount, one of the directors, negotiated an arrangement with the Government, by which the Company took over the National Debt, amounting to some sixteen millions, the Government paying a lower rate of interest than they had been paying to the annuitants. The Company then persuaded the holders of Government Annuities to exchange them for shares in the Company. The plan was fairly succe ful, but led to a wild inflation in the value of the shares, and in the subsequent collapse you sands were ruined. Ben field Harbottle.