The South Sea Bubble The South Sea Bubble was a financial bubble that occurred on the London stock market in 1720 In the traditional story, the Bubble was caused by a mysterious gambling mania The directors of the South Sea Company were also apparently fraudsters Modern economic history research has found these explanations to be inadequate This book aims to explain how a bubble can occur without assuming that everyone had lost their wits The book shows that the South Sea Company’s prospects were bright enough to encourage investment The company shipped African slaves to Spain’s American colonies It was hoped that the company might eventually gain its own colony there There were other rational reasons to invest in the company’s shares, due to features of the financial and legal system of the period Behavioural finance theories can also help to explain how and why Georgians invested as they did Some obviously lost money when the Bubble burst and society condemned their apparent folly However, the economic consequences of the Bubble have been exaggerated for effect Contemporaries used the episode to discuss their fears about foreigners, Catholics, Jews, women and the nouveau riche The book is an economic history of the Bubble It combines economic theory and quantitative analysis with historical evidence in order to provide a rounded account It brings together scholarship from a variety of different fields to update the existing historical work on the Bubble Up until now, economic history research has not been integrated into mainstream histories of 1720 Technical work on share prices and ledgers has been inaccessible to a wider audience As well as providing new evidence against the gambling mania argument, the book also interprets the existing economic history scholarship for non-specialists Helen J Paul is a Fellow in Economics at the University of Southampton, UK Routledge explorations in economic history Edited by Lars Magnusson Uppsala University, Sweden Economic Ideas and Government Policy Contributions to contemporary economic history Sir Alec Cairncross The Organization of Labour Markets Modernity, culture and governance in Germany, Sweden, Britain and Japan Bo Stråth Currency Convertibility The gold standard and beyond Edited by Jorge Braga de Macedo, Barry Eichengreen and Jaime Reis Britain’s Place in the World A historical enquiry into import controls 1945–1960 Alan S Milward and George Brennan France and the International Economy From Vichy to the Treaty of Rome Frances M.B Lynch Monetary Standards and Exchange Rates M.C Marcuzzo, L Officer and A Rosselli Production Efficiency in Domesday England, 1086 John McDonald Free Trade and its Reception 1815–1960 Freedom and trade: volume I Edited by Andrew Marrison Conceiving Companies Joint-stock politics in Victorian England Timothy L Alborn 10 The British Industrial Decline Reconsidered Edited by Jean-Pierre Dormois and Michael Dintenfass 11 The Conservatives and Industrial Efficiency, 1951–1964 Thirteen wasted years? 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Ancient Greece Takeshi Amemiya 34 Social Capital, Trust and the Industrial Revolution 1780–1880 David Sunderland 35 Pricing Theory, Financing of International Organisations and Monetary History Lawrence H Officer 36 Political Competition and Economic Regulation Edited by Peter Bernholz and Roland Vaubel 37 Industrial Development in Postwar Japan Hirohisa Kohama 38 Reflections on the Cliometrics Revolution Conversations with economic historians Edited by John S Lyons, Louis P Cain, and Samuel H Williamson 39 Agriculture and Economic Development in Europe Since 1870 Edited by Pedro Lains and Vicente Pinilla 40 Quantitative Economic History The good of counting Edited by Joshua Rosenbloom 41 A History of Macroeconomic Policy in the United States John H Wood 42 An Economic History of the American Steel Industry Robert P Rogers 43 Ireland and the Industrial Revolution The impact of the Industrial Revolution on Irish industry and society, 1801–1922 Andy Bielenberg 44 Intra-Asian Trade and Industrialization Essays in memory of Yasukichi Yasuba Edited by A.J.H Latham and Heita Kawakatsu 45 Nation, State and the Industrial Revolution The visible hand Lars Magnusson 46 A Cultural History of Finance Irene Finel-Honigman 47 Managing Crises and De-Globalisation Nordic foreign trade and exchange 1919–1939 Edited by Sven-Olof Olsson 48 The International Tin Cartel John Hillman 49 The South Sea Bubble An economic history of its origins and consequences Helen J Paul The South Sea Bubble An economic history of its origins and consequences Helen J Paul First published 2011 by Routledge Park Square, Milton Park, Abingdon, Oxon OX14 4RN Simultaneously published in the USA and Canada by Routledge 270 Madison Avenue, New York, NY 10016 Routledge is an imprint of the Taylor & Francis Group, an informa business This edition published in the Taylor & Francis e-Library, 2010 To purchase your own copy of this or any of Taylor & Francis or Routledge’s collection of thousands of eBooks please go to www.eBookstore.tandf.co.uk © 2011 Helen Julia Paul All rights reserved No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging in Publication Data Paul, Helen J., 1975– The South Sea Bubble: an economic history of its origins and consequences/by Helen J Paul p cm South Sea Bubble, Great Britain, 1720 South Sea Company–History Financial crises–Great Britain–History–18th century Finance–Great Britain–History–18th century I Title HG6008.P38 2010 330.941′071–dc22 ISBN 0-203-84206-5 Master e-book ISBN ISBN13: 978-0-415-46973-9 (hbk) ISBN13: 978-0-203-84206-5 (ebk) To my late father, Alexander Duncan 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option value of 56–8, 113 asymmetric information 20–1, 72, 118 Austria, political alliances 27–8 Baker, C.H.C and M.I 14 Baker, J.H 67, 72 ballads 92 bandwagon strategy 20, 22, 73, 118 Bank of England 36, 37, 44–5, 47, 49–50, 51, 72, 78, 103–4 bankruptcy 98, 105–6, 116, 118 Banner, S 13, 44 Barbon, Nicholas 13 baron 67, 118 Baskin, J.B 36 Bayes’ rule 21 Bean, R.N 39 behavioural finance 4–5, 21–2, 112, 119 Bickerstaff, I 92, 94 Black Act (1723) 92, 119 Black, F 19 Bluche, F 25, 30, 58 ‘Blue Water Strategy’ 29, 119 Blunt, Charles 55 Blunt, Sir John 10, 49, 72, 74, 77, 82, 84, 90, 116 bonds 5, 32, 47, 50, 119 book outline 7–11 bounded rationality 21–2, 119 Bourbon dynasty 25–6 Brewer, John 7, 14, 29, 30, 31 bribery 14–15, 47, 51–2, 76, 84 Briscoe, John 37 brokers’ ledgers Brown, C.L 115 Brown, V.L 110 Brydges, James 14 Bubble Act (1720) 48, 84–6, 102, 106–7, 111, 119 bubbles 119; see also Mississippi Bubble; South Sea Bubble bullionism 31, 119 ‘buy and hold’ strategy 55, 72, 119 Cahill, K.M 115 Cairncross, A.K call options 55, 76, 87, 119 Cameron, H.C 69, 71 Canton of Berne 71–2 capital gains 44, 46, 80, 83, 84, 119 Capitalism and Slavery (Williams) 59 Carlos, A.M 67, 95, 103 Carruthers, B.G 14, 32, 33 Carswell, John 2, 6, 9–10, 48, 49, 51, 52, 72, 73, 75, 78, 90, 92, 105, 108, 115–16 Castaing, John 5, 18 Catholics/Catholicism 7, 24, 25, 26, 51, 53, 105, 114–15 caveat emptor 76, 91, 104, 119 Central America 57–8 Chancellor, E 7, 72 150 Index Chancery officials 72 Charles II, Holy Roman Emperor 26 Charles II, King 24, 25, 30, 31 Charles XII, King 25, 69 chartism 19–20, 119 Chaudhuri, K.N 36 Child, Sir Josiah 76 civil disobedience 99 Clark, G 38 classic bubbles 20 cliometric studies 2–4, 5, 75, 116, 120; and rational bubbles 69–70 Coleman, D.C collateral 83–6, 120 Collection for Improvement of Husbandry and Trade (Houghton) 55 Colley, L 115 colonial expansion 56–8, 110, 113 commemorative cards 93–7, 114–15 Committee of Secrecy 51–2, 84, 88, 89, 120 company books 51–2, 59 company charters 32–3, 47, 48, 84–5, 106–7, 108 company directors: activities of 72–3; punishment of 52, 70, 89, 107; sale of stock held as security 84; as scapegoats 51, 90 compensation 91 composition 106, 120 compulsive gambling 113 contagion 43, 69, 98 contemporary financial analysis 75–8 contraband trade 41, 58, 59, 110 Course of the Exchange, The (Carstang) coverture rules 67, 121 Coxe, W 89 Craggs, James Sr 52 Craig, J 51 Crowley, Ambrose 66 Curatola, G.A 68 D’Urfey, T 92 Dale, R 7, 55, 76, 81, 82, 87, 107 Darien scheme 57–8 databases, transatlantic voyages 61–5 Davies, K.G 38 De Bondt, W.F.M 21 De Goede, M 91 de Villamil, R 70 de Vries, J 37 ‘dead cat bounce’ 103, 120 debt conversion 44–7, 66, 120: nominal and real values in 79–80; terms of 81–2 Defoe, Daniel 7, 13, 14, 57, 91, 97–8 demand-side pressures 30, 31 Devenow, A 98 Deyle, S 42, 107 Dickson, P.G.M 2, 4, 9–10, 15–16, 18, 31, 32, 37, 44, 45, 47, 49, 50, 51, 73, 75, 77–8, 81, 86, 115–16 discounting 66, 80, 120 dissenters 7, 10, 13, 53, 114, 120 dividends 44, 46, 49, 52, 80, 120 Docket Books 106 domestic politics 28 Donnan, E 41 dower rights 68, 120 Du Bois, A.B 107 Dutch East India Company 37 East India Company 36, 44, 45, 47, 56, 76, 115 economic effects 104–7 economic history 4, economic recovery 102–3 economic signals 72–3, 125 Efficient Markets Hypothesis 19, 112, 120 Elking, Henry 108 Elliott, J.H 57, 110 Eltis, D 42, 61, 62, 64, 65 Emmer, M 93 Emmer, P.C 42 Engerman, Stanley L entail 18, 36, 105, 120 equity law 67 equity of redemption 91–2, 120 equity, dilution of 46 Erickson, A.L 67 European politics: Georgian era 26–8; under Stuarts 24–6 Exchange Alley 32, 92, 95, 98–100, 120 exogenous shocks 49 expected value 16, 17–18, 120–1 externalities 13, 121 Extraordinary Popular Delusions and the Madness of Crowds (Mackay) 98 Eyles, Sir John 107 false sales 51–2 famous investors 70–2 feme covert 67, 121 feme sole 67, 121 financial distress 105–6 financial rescue strategy 51, 88–90, 91–2, 102–3, 104, 114, 117 financial revolution 31–4 financial weaknesses 30–1 Index 151 fiscal–military state 7, 59, 73, 121 Fisher, R.A 38 Flinn, M.W 66 Fogel, Robert W fortified ports 9, 38, 41, 54, 58 France: economy 112; financial reform 33–4, 43, 44; naval power 58; political alliances 25, 26–7; warfare costs 29–30; see also Mississippi Bubble; Mississippi Company Friedman, M 18, 55 Frost, R.I 25 fully paid shares 87 fundamentals 20, 21, 112–13, 121 Furbank, P.N 57, 98 futures trading 55, 121 Hatton, R 14, 26, 27, 28, 29, 52, 89, 107 herding behaviour 98–9, 122 Hildner, E.G 110 Hoare’s Bank 22, 69, 113 Hogarth, William 92 homo economicus 7, 122 Hoppit, J 18, 21, 93, 105, 106 Horne, T.A 13 Houghton, John 55 House of Commons debates 88, 90 Howard, Henrietta, Countess of Suffolk 68 Hume, D 36 Hundert, E.J 12, 13 Hutcheson, Archibald 7, 8, 10, 36, 70, 75, 76–7, 81, 89, 90–1, 103, 104, 105, 114, 115 Galbraith, J.K 57 Gale, D 20, 112 Gallup-Diáz, I 57 gambling 121; culture of 16–17; social attitudes towards 116 gambling debts 91 gambling dens 13 ‘gambling mania’ 2, 4, 15, 18–21, 55–6, 68, 113, 121 game theory 91, 121–2 Garber, Peter M 6, 18, 20, 69, 78, 84–5, 86, 100, 116 Gelderblom, O 55 George I, King 49, 51, 52–3, 89, 107 Georgian era: domestic politics 28; European politics 26–8 Glaisyer, N 18, 99 glossary 118–27 Glover, R 110 Goldgar, Anne 6, 100 Grafe, R 57 Grand Alliance (1701) 26 Great Crash (1929) 5–6 Great Northern War (1700–1721) 25, 69 ‘Greenland trade’ 108–9 group-think 98–9 Guy, Thomas 9, 54, 69, 70, 72, 73, 74, 91, 97, 104, 115, 116 Imperial Ostend Company 27–8 impressments 7, 59, 109, 122 indentured labour 39, 122 Industrial Revolution 59, 126 inflation risk 47 informed investment 19–20, 54–8, 66, 97–8, 103 Inikori, J.E 39, 65 initial public offering 122 insider trading 52, 72 insolvency 98, 106, 122 instalment shares 84–5, 86–7 institutional investment 71–2 insurance companies 37–8, 48 investors: access to funds/willingness to invest 82; company behaviour towards 82–3; depictions of 90–7; reactions to crash 51–3; South Sea Company 65–8, 70–2 Irigoin, A 57 Irish Potato Famine 117 ‘irredeemable’ annuities 44, 122 irredeemable debt 32–3, 47 Haines, R 65 Hall, R.A 70 Hancock, D 22 Hanoverian dynasty 26 Hapsburg dynasty 25–6 Hargreaves-Mawdsley, W.N 27, 34 Harris, R 48, 82, 84, 85, 106, 107 Hastings, Lady Betty 66–7 Jackson, G 108, 109 Jacobite rebellions 26–7 Jacobites 28, 102, 106, 116 Jacobs, B.I 19 James III (Old Pretender) 26–7 Janssen, Sir Theodore 72 Jensen, Richard A 65 Jewish investors 94–5, 103–4 joint-stock companies 9, 32–3, 38, 44–5, 122 jointure contracts 68, 122 Jones, D.W 30 Jones, J.R 14, 28, 33 152 Index Jonker, J 55 Kagan, S 17 Kahneman, D 69 Kamen, H 34 Keehn, R.H 85 Keirn, T 66 Kenyon, J.P 28 Kindleberger, C.P 78, 86 Kirkall, E 108–9 Klein, H.S 39 Klein, L.E 12, 14, 28 Knight, F.W 15, 39 Knight, Robert 51, 73, 90 Land Bank 36 land ownership 14, 115 land sales 105 land tax 36, 103 land, social importance of 95–6 landed elite 122; depiction in commemorative cards 96–7; as financial losers 104; as opportunists 114; propaganda 115; protection of 70, 76, 91–2 Landes, D.S 107 Laurence, E.A 66 Law, John 8, 10, 34, 44, 50, 55, 112 League of Hanover 27 legal protection, landed elite 70, 76, 91–2, 104 LeRoy, S.F 15 liquidity 32, 47, 80, 122 loans: secured on shares 83–4, 85–6; shareholders 47, 48, 49, 51–2 Logan, P.M 98 London Gazette 106 ‘long annuities’ 44, 122 lotteries 32, 39, 98 lottery annuities 44 Louis, XIV, King 25, 26, 29, 30, 58 Louis, XV, King 27 Lovejoy, P.E 62 Luxborough Galley 109, 115 Lynch, J 34 McDonald, J 65 Machina, M.J 15 Machlup, F McInnes, A 17 Mackay, Charles 22, 51, 52, 78, 98–9 Macky, John 99–100 Manning, P 39 margin trading 84–6, 122 Marichal, C 57 market imperfection 20–1 marriage market 94–5 mercantilism 122 Michie, R.C 45, 46 Milner, J 49–50 Mingay, G.E 14 Miranti, P.J 36 Mirowski, P 112–13 mispricing 69–70 Mississippi Bubble 43, 50, 69, 74, 102 Mississippi Company 34, 37, 44, 77, 86, 112 Modern Poetasters: or, Directors No Conjurers, The (Bickerstaff) 92–3, 94 money subscriptions 47, 48, 50, 55–6, 82, 83–4, 87 monopoly rights 33 monopoly trading companies 110 morality and money 12–15 morality fables 92–3 Morgan, W.T 56 Morris, S 20–1 Muldrew, C 49 Murphy, A.E 34, 50 Murphy, A.L 55 naïve investors see noise traders National Debt 32–3, 38–9, 103, 107, 108, 123; Bank of England takeover of 51; conversion of 45–7; need to restructure 43–5 national investor groups 93–4 naval contractors 65–6 Navigation Acts 29, 123 Neal, Larry 18, 20, 49, 67, 69, 78, 80, 86 neoclassical economic models 112–13 Netherlands: and Asiento 40; political alliances 24, 25, 27 Nettels, C 40, 41 New East India Company 45 New Economic Institutionalists 31 Newton, Isaac 54, 70–1 noise 123 noise traders 5–6, 18–22, 69–70, 82, 91, 103, 123 nominal capital 46, 79–80, 123 non-juror 26, 105, 123 North America 56–7 North, D 30, 31 O’Brien, Patrick K 7, 28 opportunism 113–14 opportunity costs 40, 123 Index 153 option contracts 55, 76, 123 option value 56–8, 110, 113 Orford, J 113 outsiders: distrust of 92–7, 114–15; status of 13–14 overseas trading rights 33 Owens, W.R 57, 98 Palmer, Colin A 59, 108 paper money 8, 31, 34, 37, 112 par value 46, 123 Paul, H.J 7, 29, 38, 58, 59, 61, 62–3, 64, 65, 69, 77, 109, 112 Pearce, A.J 109 permission ships 41, 57, 58 ‘perpetual’ annuities 44 personal credit 14 petitions 89, 90, 105 Philip V, King 27, 41 Phillips, W.D 39 piezas de Indias system 110, 123 pin money 17, 67, 116, 123 Plumb, J.H 88, 89–90 political cover-up 51, 53, 90, 102, 114, 125 Ponzi scheme 123 Pope, Alexander 71, 115 Porter, R 13, 16, 17, 18, 28 portfolio 123–4 portfolio diversification 55–6, 124 Portland, Duke of 104 Portobello 110 Present Aim theory of rationality 17, 124 primary market 82, 124 private information 81 privateering 30, 58, 124 promissory notes 124 public disorder 89 put options 55 Quadruple Alliance 27 racial prejudice 93–5 Raine, Henry 71 rational bubble model 5–6, 17–19, 20–1, 69–70, 86–7, 112–14, 124 rational expectations theory 19–20, 124 real economy 124 real values 79–80 Realey, C.B 53, 89–90 redeemable debt 32–3, 47, 50, 124 Reicher, S 99 religious prejudices 93–5 revisionist literature 18–21, 78–9, 86–7 Richardson, D 61, 62, 64, 65 Richardson, J 115 risk-aversion/risk-loving/risk-neutrality 18, 55–6, 124–5 risk, concept of 15–16, 124 Rodger, N.A.M 29, 40, 58 Rogers, P 98 Roseveare, H 31, 32, 36, 37, 39, 43, 92, 104, 106 Rothschild, M 15 Royal African Company 6, 38, 54, 58, 59, 63, 73, 115; Court of Assistants 66 Royal Debt 31–2, 125; nationalisation of 33–4 Royal Guipúzcoa Company 119 Royal Navy 6–7, 27, 38, 42, 54, 55, 58, 72, 73, 109; debts 65–6; expenditure 29–30 Royal Society 71 Royal Stock Exchange 18 Rule, J 28 Sánchez-Albornoz, N 39, 40 Sauney/Sawney 93, 94, 125 Savage, L.J 18, 55 Schwartz, D.G 113 Scott, W.R 2, 9–10, 31, 38, 45, 47, 48, 50, 51, 52, 75, 78, 79, 80, 81, 82, 83–5, 86, 115–16 screen/skreen 51, 53, 90, 102, 114, 125 secondary literature 78–9 secondary market 31, 46, 81, 82, 124 Secret History of the South Sea Scheme, The 77–8, 84 security 125 semantics 15–21 Sen, A 17 Seven Years War 30 share capital 45–7 share prices 47–50; zigzag pattern of 19–20 shareholder loans 47, 48, 49, 51–2 shares 125; loans secured on 83–4, 85–6 Sharpe, W.F 19 Shea, G.S 55, 56, 82–3, 85, 87, 104, 105 Sheridan, R.B 29 Shiller, R.J 21 Shin, H.S 20–1 shipbuilding 41 Shleifer, A 19, 21 Shlomowitz, R 65 short annuities 32, 44, 76, 125 short-selling 84, 125 signal 72–3, 125 Simon, H.A 5, 21 Singell, L.D Jr 15 154 Index Sinking Fund 33, 38–9, 44, 125 slave factories 41 slave mortality 64 slave trade 3, 6–7, 39–42, 54, 58, 59–65, 108, 109, 110 slaves: numbers of 60–1; as victims 115 Smiley, G 85 Smith, Adam 29, 114 social anxieties 100 social context 116–17 social history of crash 88–101 social prejudice 13–14, 92–7 Sorsby, V.G 57, 59, 60, 61, 62, 63–4, 107 South America 57–8 South Sea Bubble, The (Hogarth) 92 South Sea Bubble: bursting of 50–1; real effects of crash 102–11; social history of crash 88–101 South Sea Company: acquisition of Asiento 39–42; activities of directors 72–3; and art 92–7; conversion of government debt 45–7; effects of crash 107–11; famous investors 70–2; formation of 36–9; immediate reactions to crash of 51–3; loans secures on shares 83–4; original investors 65–6; overvaluation of shares 47–50; reasons to invest in 54–74; women investors 66–8, 91, 93 Spain: clashes with British 109–10; financial reform 34; political alliances 27–8; warfare costs 30; see also Asiento Spanish Empire 56–8, 110, 113 Sperling, John G 39, 41, 45 status goods 73, 95–6 Staves, S 67, 68 Steckel, Richard H 65 Stein, S.J & B.H 34, 56–7, 58 Stevenson, J 89 stock issuable/issued 34, 46, 79–80, 125 stock market data stock markets 32–4; rises in 47–50 stock-jobbing 71, 72, 75, 77, 78, 84, 89, 90, 96 Stone, L 18 Stop of the Exchequer (1671) 30 strike price 76, 125 Stuarts: European politics under 24–6; Royal Debt under 31–2 Sugarman, D 92 Summers, L.H 19, 21 Supple, B 18, 48 supply-side pressures 30, 31 Surman, Robert 51 surplus stock 45, 79, 80–3, 125 Sweden: political alliances 25–6; warfare costs 30 Sword Blade Bank 47, 48, 50, 52 Taffy 94, 126 Tally 32–3, 66, 126 Teague (Taig) 94, 126 Temin, P 22, 69 Thaler, R.H 21 Thomas, R.P 39 Thompson, E.P 28, 92, 99, 105 Tilling, L 70 Tirole, J 20, 112 Toland, J 72, 77, 84 Tories 26, 28, 29, 36–7, 126 trading monopoly 36–7, 38, 42 traditional histories 78–86 transatlantic voyages 61–5 transfer books 49 Treaty of Madrid (1760) 41 Treaty of Seville (1729) 110 Treaty of Utrecht (1713) 26, 27, 36 Trevelyan, G.M 76 Triple Alliance (1668) 25 Tule 57 Tulipmania 6, 20, 100, 126 Tversky, A 69 United Provinces see Netherlands usury 7, 12, 13, 37, 90, 126 utility 17, 126 van der Woude, A 37 vanity 93, 126 Veblen goods 73, 126 Voth, H 22, 69 Walpole, Sir Robert 28, 51, 88, 89–90, 91–2, 102, 108, 114, 117 Walsh, P 105 War of Jenkins’ Ear 109, 110 War of the League of Augsburg (1688–1697) 25, 32 War of the Spanish Succession (1702–13) 25–6, 27, 30, 69, 109 Ward, E 92 warfare, 25–6; paying for 29–31 Warrington, R 92 wealth: accumulation of 12–13, 14; displays of 73; distribution of 103, 105, 114; hoarding of 54–5; transfer of 70, 114 Weingast, B.R 30 Index 155 Welch, I 98 West, R 57, 58, 97, 98 Westfall, R.S 70, 71 whaling trade 108–9, 115 Whig history 4, 8, 126 Whigs 28, 29, 36–7, 126 William of Orange 24–5, 26, 33, 57–8 Williams’ thesis 59, 126 Winner’s Curse 82, 126 women investors 66–8, 91, 93 women, finance independence 94–5, 114–15 Wortley Montagu, Lady Henrietta 68 Wright, I.A 40 Wyndham, Sir William 88 years purchase 95, 126 zero-sum game 91, 127 ... 48 The International Tin Cartel John Hillman 49 The South Sea Bubble An economic history of its origins and consequences Helen J Paul The South Sea Bubble An economic history of its origins and. .. understanding of the old rules of warfare and politics, than they did with the new ways of the stock market The South Sea Bubble of 1720 is one of the most famous financial market crashes in history. .. America carrying South Sea Company slaves 6.2 The number of slaves brought to Spanish America by the South Sea Company 6.3 The number of slaves landed from transatlantic South Sea Company voyages