TWO:It was at the close of 1719, when George I. returned from Hanover, that this Company proposed to Ministers to consolidate all the funds into one. It was strange that both Ministers and merchants could be deluded by the hope of enriching themselves by a share of the trade with the Spanish South American provinces, when Spain herself, in full enjoyment of them, was sunk into indigence and weakness, and presented the most determined resistance to the unfettered intercourse of any other nation with them. Yet Sir John Blunt, a leading director of the South Sea Company, persuaded the Ministers that by granting the Company power to deal with the public funds, and especially to buy up the unredeemable annuities which had been granted in the two preceding reigns, chiefly on terms of ninety-nine years, and which now amounted to about eight hundred thousand pounds a year, they could, in twenty-six years, pay off the entire National Debt. But, to enable them to do this, they must be empowered to reduce all the different public securities to one aggregate fund in their hands, to convert both redeemable and unredeemable debts into stock by such arrangements as they could make with the holders, and to have certain commercial privileges vested in them. Ministers accepted the proposals with great alacrity. Aislabie introduced the scheme to Parliament in the month of February, 1720, declaring that, if it was accepted by the House, the prosperity of the nation would be amazingly enhanced, and all its debts liquidated in a very few years. Craggs seconded the proposal in most sanguine terms, expressing his conviction that every member of the House must be ready to adopt so advantageous an offer. Ministers had already closed with the proposals of the Company, and they were themselves greatly disconcerted by the suggestion of Mr. Thomas Brodrick, the member for Stockbridge, who expressed his entire accordance with Ministers, but thought that the nation should endeavour to obtain the best terms for itself by opening the competition to every other company or association of men as well as that in question. Ministers were confounded by this proposal, and Aislabie endeavoured to get out of it by declaring that to do this would be like putting the nation up to auction, and that such things should be done with spirit. But Jekyll interposed, saying it was this spirit which had ruined the nation, and it was now requisite to consider seriously what was best for the public. A violent debate ensued, in which Walpole eloquently recommended open competition, and was sharply replied to by Lechmere. The question was carried in favour of competition; and then the Bank of England, which before had coolly declined to enter into the proposals, suddenly appeared in a new temper, and made liberal offers for the privilege of thus farming the public debts. But the South Sea Company was not to be outdone; it offered seven millions and a half, and the Bank gave way in despair.The man came while I was there, Larry told Dick. He is named Deane, and hes a nice-looking, quiet chap. It seems that when he landed with his chute, he came down and struck some driftwood or an old log, and it knocked the wind out of him. When he got back strength to cut himself loose, he tried to get to the seaplane but his landing, as I explained the locationwell, you saw it when you flew overhis landing was made a couple of hundred yards away. I got the gardener to take me to the place, yesterday, in the hydroplane. There was a big, sunken log close to the torn chute.
TWO:It would be missed, Larry. He was too bright for that.In all these transactions Carteret showed the most facile disposition to gratify all the Hanoverian tendencies of the king, in order to ingratiate himself and secure the Premiership at home. But in this he did not succeed; he was much trusted by George in foreign affairs, and in them he remained. Lord Wilmington, Prime Minister, had died two months before the signing of the treaty at Worms, and the competitors for his office were Pelham, brother of the Duke of Newcastle, and Pulteney. Pelham was supported by Newcastle, Lord Chancellor Hardwicke, and still more powerfully by the old Minister under whom he had been trainedLord Orford, who, though out of office, was consulted in everything relating to it. Pulteney and Pelham had both, according to their friends, neglected the necessary steps for succeeding Wilmington. Pulteney had declined any office, vainly hoping that his great popularity would enable him to guide public affairs. His friends reminded him that had he taken the Treasury on Walpole's resignation, he would now have been still at the helm. Pelham's great adviser, Lord Orford, said to him, "If you had taken my advice, and held the Exchequer under Wilmington, the whole had dropped into your mouth." Pelham, however, received the appointment from the king, and this was communicated in a letter from Carteret, who candidly told him that, as the old friend and colleague of Pulteney, Lord Bath, he had done all in his power to secure the office for him, but now he would support Pelham cordially, notwithstanding. Pelham was at this period forty-seven years of age, of far inferior talent to Orford, but pursued his cautious principles and acted under his advice.
TWO:But the mystery had hardly begun!
TWO:The 21st of January arrived, and Pulteney entered on his great question. There was nothing new to bring forward, but the old charges were dressed up with new force. Walpole defended himself with an ability worthy of his best days. He boldly reminded the Opposition of the long twenty years of defeats in their endeavours to turn him out; he declared their accusations were just as false and groundless as ever; and he proceeded to anatomise the characters of Bubb Doddington and Pulteney in a manner which must have made men of any feeling wince. He was ably supported by Sir William Yonge, by Pelham, and Winnington, but the division showed a majority for the Minister of only three.
