The Debates and Proceedings in the Congress of the United States, First Congress, First Session, Volume 2 Page: 1,299
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1299 OF DEBATES IN CONGRESS. 1300
Febri vry 17, 1790.] Public Gedil. [H or R.
which he supposes «uHicient to detei niamed
men I mm lending to Fiance on peipetu.d in-
terest. It is tli" ieduction ut a bundled mil-
lions of Mississippi stock, charged on the 01
dinaiy levenue at tvio and a half pei cent
This vw, by successive act* of povvei, fiist
ieduced horn an evnibitant inteiest to a mode
ir.fc mleiebt, and then down to tv\o and a hall.
Could an ac> ot this kind be peipetiatei! in
\menca, and public ciedit sui uve the shock.''
But gentlemen have endeavoted to show lh.it
Gieat Bntiin siifteied no injiiiy Horn a similai
inteifeier.ee in the rase ol the South Sea
scheme Ienleavoied to investigate this bu-
smen-; but histoiy docs not fuun-h sulhcient
lights, I evimined a gieitvaiiet} ol -Mithois;
bit m\ ertoits utie unsuccessful, till I luineil
to the Debate, ol Pu liament, and there I tound
the whole of this business fully stated Here
I acquiicd the ti ue histoiy of its use and pro
gies-. In \ol. 8. A. D 1721, I found the pio-
ceedings ol Pailiament theie'n. Tie Court
Loick, and those in opposition, ciymg out
against the duectnis and otheis who had abus-
ed the act and intention of Pailiament, a seciet
committee wa~ appoin'ed to lrqune into their
pioceedmgs. The Lo.ds examined nmiy ol
the officers of the Company, with what success
is shown by a sub-eqeenl ievolution: in which
they declare that the Sub gov ei n >i and Du cct-
ois had pievancated with them in giving (a! e
lepiesentations of sev eial matleis of fact that
by lending money on stock aid subscnptions,
they weie guilty of a notonous breach ol tiust;
and that they ought to make good the losses
which the Company had sustained by then
fraudulent management A lew davs altei-
waid=, altei the doors of the House were clos-
ed, several membeis of the secret committee
acquainted the Heu-e, that thev had ahead\
discoveied a tiain ol the deepest \ dlainy and
fiaud that Hell evei contused to ruin a nation;
which, in due time, th"y woulu lav beloiethe
House; and that in the mean while, in oidei
to a fuither d'scoveiv , they thought it highly
nece^saiv to secure the person- of some ol t1 e
Directois and puncipal South Sea OHicei s, and
secuie then p^pei-. Three ddjs altei wuids
they lesulied lh„t the t'ansfei ling of stock,
belong,ng to the South SeaCompanj. 01 giving
credit foi the same, without a valuable consid-
ei.ilion actually pa'd, 01 sufficiently secuied;
01 the purchasing stock by any Directoi 01
Agent of the South Sea Company (or the use
01 benefit of any person in the admimstiation,
oi any membei of either House of Pailiament,
while the late bill in i elation to the South Sea
Company was depending in Paihament, was a
notonous and most dangerous coituption
On the 2d Febiuaij, it was lesoKed, 1st.
That the Dnectors. &_c buving the Mldsum-
mei dividend, about the 4th January, 1719 20,
and paying live shillings down, and three
pounds altei the receipt ol the said dividend,
was a fraud to the peisons with whom they
contt acted.
2d That the giv mg a premium for the i efu-
sal ol stock, at highei puces than they knew
was the value, was a liaudulent aitilice to laise
the puce ot stock.
3d That promoting the thud subsciiption
at one thousand pei cent, was to answei a pai-
tictilai end, and to cheat the public.
4th. That declaung thu ty pei cent, divi-
dend for the half yeai, ending at Chnstmas,
and filty pei cent per annum foi no less than
twelve yeais aftei, was a villainous aitifice to
delude and defraud 111s Majesty's subjects.
5th That the declaung the Midsummei di
vidend to be paid in stock, when tliey had mo-
ney by them to answei (he same, was a noto-
nous fraud, ami vvts one occision of the mis-
fortunes that ensued.
The petitions that weie lead fi mti the vanous
parts ot the Kingdom, piaying justice, shows
that the inteifeieuce was foi the support of the
public faith, and not a violation ot it. Those
petitions set forth, that they had lent a great
pai t of then estates on the ciedit of seveial acts
of Pai lumen', for the public spiv ice: and that
they thought they had sufficient seem ily, but
lound themselves betrayed and given up by the
managers appointed by 'hen trustees, contiaiy
to the tiue intent and meaning of the law, and
contiaiy to the faith of public ciedit; and beg-
ging the justice of the House foi lelief against
the fiaud ot the late South Sea dnectors, as
v ell ?s the great and notonous breach of trust
in the manageis.
On the 29di ol Jul), the King gave his assent
to the bill for laising money upon the estates of
the G veinor, Dnectois, and otheis connected
with the South Sea Company, tovvaids making
good the gieat loss and damage sustained by the
Company; and aftei w.'ids the Pai liament weie
pioiogued to the 31st of the sime month, when
they met agiin, and the Commons, in answei to
HisM ijesly'sSpeech, resolved,That, forthere-
estabhshment ot public ciedit, relief be given to
the South Sea Company, with legasd to the pay-
ment of £4,1'5j.30(j 4i. lid. a"d the loui and a
hall 3 eat s" pui chase, and one yeai 'o pui chase up-
on seveial annuitiesaiidothei national debts; the
said Company giving such consideiatinn (o She
public, and such fin tliei i elief to the several
piopnetois, f>nd peisoiis concerned in inteiest
with the said Company, as the House should
tli,nk proper, and then proceeded toother sinii-
lai resolutions, all calculated to relieve the
distiess of those who had been the dupes of the
manageis ol the bubble. They dischaige all
peisons that borrowed money ol the Company
upon South Sea stock, who actually tiansfeiied
and pledged the same, from all luither de-
mands of the Company, upon pajing ten per
rent, on the sums bon owed They prohibited
the lequnement of special bill upon actions
brought upon any of these contiacts, and the
awaid of execution upon judgment obtained
Here, it is true, you find the Pailiament of
Great Bntain interfering in contiacts between
citizen and citizen, but not in contracts be-
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Gales, Joseph, 1761-1841. The Debates and Proceedings in the Congress of the United States, First Congress, First Session, Volume 2, book, 1834; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc29466/m1/14/: accessed April 23, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.