The South Sea Bubble
History Revealed|October 2022
The South Sea Bubble was a period of speculation frenzy and collapse on the British stock market, revolving around the fate of a single company. For years, the South Sea Company had been at the centre of a complex and tangled web of financial manoeuvrings; deliberately obfuscated dealings around selling shares and government debt; the exploitation of publicity and hype to inflate stock prices; as well as bribery, corruption and the slave trade.
Jonny Wilkes
The South Sea Bubble

WHAT WAS THE SOUTH SEA BUBBLE? 

It worked for a while and stock prices skyrocketed in 1720, until the bubble burst. Investors were ruined and an inquiry had to be held. While the South Sea Bubble went down in history as the cause of a total financial crash, that wasn't actually the case: it certainly had its losers, but it had its winners, too.

WHAT WAS THE STATE OF BRITAIN'S FINANCES BEFORE THE BUBBLE?

The Bank of England formed 26 years earlier had grown into a powerful institution as the sole lender to the government. It was, however, controlled by one of the two main political parties, the Whigs, so when Robert Harley became the new Tory chancellor of the Exchequer in 1710, he looked for other means of making money. With Britain engaged in expensive wars and the government debt at around £9m, funds were preciously needed.

Harley gave the job of organising the Bank of England's lotteries to John Blunt, the less-than scrupulous director of an unofficial bank (and sword manufacturer) called the Hollow Sword Blades Company. While the ironically named Blunt had great success selling lottery tickets, the two men devised a grander scheme to make serious money. That's where the South Sea Company came in. 

SO, WHAT WAS THE SOUTH SEA COMPANY?

It formed in 1711 with the purpose of consolidating the government's debt. In return for taking on and paying off this debt, the company would be granted a monopoly on trade between Britain and Spain (particularly the sale of slaves) in the South Seas' around South America. This idea had a major problem, though: Britain was at war with Spain and in no position to dictate the trade there, unless favourable terms were reached in peace talks.

HOW SUCCESSFUL DID THE COMPANY GET?

Denne historien er fra October 2022-utgaven av History Revealed.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

Denne historien er fra October 2022-utgaven av History Revealed.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

FLERE HISTORIER FRA HISTORY REVEALEDSe alt
'Dickens's evocation of the fears, excitement and confusion of childhood is peerless'
BBC History Revealed

'Dickens's evocation of the fears, excitement and confusion of childhood is peerless'

DR LEE JACKSON ON WHY CHARLES DICKENS REMAINS RELEVANT TODAY

time-read
2 mins  |
Christmas 2023
THE AUTHOR GOES ABROAD
BBC History Revealed

THE AUTHOR GOES ABROAD

Dickens expanded his horizons and boosted his fan-base by venturing overseas - but global fame came with a cost

time-read
4 mins  |
Christmas 2023
REVIVING THE FESTIVE SPIRIT
BBC History Revealed

REVIVING THE FESTIVE SPIRIT

A Christmas Carol wasn't just a bestseller - it changed the way that Britons chose to mark the festive season

time-read
3 mins  |
Christmas 2023
GIVING THE POOR A VOICE
BBC History Revealed

GIVING THE POOR A VOICE

From Hard Times to Oliver Twist, Charles Dickens used his pen to help illuminate the lives of the less fortunate

time-read
3 mins  |
Christmas 2023
A JOURNEY THROUGH DICKENS'S LONDON
BBC History Revealed

A JOURNEY THROUGH DICKENS'S LONDON

The works of Charles Dickens are synonymous with visions of Victorian London. We talk to Dr Lee Jackson about the author's love of the capital, and the locations that most inspired him

time-read
10+ mins  |
Christmas 2023
EXCEEDING EXPECTATIONS
BBC History Revealed

EXCEEDING EXPECTATIONS

Dr Lee Jackson chronicles Charles Dickens's journey from down-at-luck teenager to titan of Victorian literature

time-read
6 mins  |
Christmas 2023
GIFTS, TREES & FEASTING
BBC History Revealed

GIFTS, TREES & FEASTING

We take a journey through the photo archives to reveal how Christmas and its many traditions have been celebrated over the years - and around the world

time-read
3 mins  |
Christmas 2023
WHAT GREAT PAINTINGS SAY
BBC History Revealed

WHAT GREAT PAINTINGS SAY

We explore the story behind an allegorical painting that celebrates the triumph of love over hate, peace over war

time-read
3 mins  |
Christmas 2023
HELLISH NELL
BBC History Revealed

HELLISH NELL

Malcolm Gaskill delves into the life of Helen Duncan - the fraudulent Scottish medium whose ectoplasm-filled seances saw her ending up on the wrong side of the law

time-read
6 mins  |
Christmas 2023
7 THINGS YOU (PROBABLY) DIDN'T KNOW ABOUT THE WHITE HOUSE
BBC History Revealed

7 THINGS YOU (PROBABLY) DIDN'T KNOW ABOUT THE WHITE HOUSE

Presidential historian Dr Lindsay M Chervinsky reveals some of the most surprising facts about the world-famous US residence

time-read
5 mins  |
Christmas 2023