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	SOUTH SEA BUBBLE - LoveToKnow Article on SOUTH SEA BUBBLE (Site not responding. Last check: 2007-10-21)
		In 1711 the South Sea Company was formed, and was granted a monopoly of the British trade with South America and the Pacific Islands, the riches of which were popularly regarded as illimitable.
		The aim of the directors was to persuade the annuitants of the state to exchange their annuities for South Sea stock; the stock would be issued at a high premium and thus a large amount of annuities would be purchased and extinguished by the issue of a comparatively small amount of stock.
		By this time the extraordinary success of the South Sea Company had produced a crowd of imitators, and the result was a wild mania of speculation, and its inevitable enda crash.
	26.1911encyclopedia.org /S/SO/SOUTH_SEA_BUBBLE.htm (1569 words)

	The South Sea Company - Wikipedia, the free encyclopedia
		More well known than The South Sea Company is perhaps the "South Sea Bubble" (1711 - September 1720) which is the name given to the economic bubble that occurred through overheated speculation in the company shares during 1720.
		The grant of a charter to the South Sea Company was an added boost, its shares leaping to £890 in early June.
		The valuation of the South Sea Company was perhaps nothing outrageous - it likely had financial ratios similar to those of many publicly traded companies today for which investors have high expectations.
	en.wikipedia.org /wiki/South_Sea_Bubble (1069 words)

	The South Sea Bubble
		By the first, the proposals of the South Sea Company were accepted, and that body held itself ready to advance the sum of two millions towards discharging the principal and interest of the debt due by the state for the four lottery funds of the ninth and tenth years of Queen Anne.
		A bill was at the same time brought in, for restraining the South Sea directors, governor, sub-governor, treasurer, cashier, and clerks from leaving the kingdom for a twelvemonth, and for discovering their estates and effects, and preventing them from transporting or alienating the same.
		Bubble companies, of a kind similar to those engendered by the South Sea project, lived their little day in the famous year of the panic, 1825.
	robotics.caltech.edu /~mason/Delusions/epd_southsea.html (12196 words)

	South Sea Bubble -- Encyclopædia Britannica
		The bubble, or hoax, centred on the fortunes of the South Sea Company, founded in 1711 to trade (mainly in slaves) with Spanish America, on the assumption that the War of the Spanish Succession, then drawing to a close, would end with a treaty permitting such trade.
		A triangular-shaped continent, South America is bordered on the east by the Atlantic Ocean, on the west by the Pacific Ocean, and on the north by the Caribbean Sea.
		Sea kraits are common in warm, shallow waters of the western Pacific Ocean, the South China Sea, the Indian Ocean, and the Bay of Bengal.
	www.britannica.com /eb/article-9068882?tocId=9068882&query=null&ct=null (1012 words)

	AllRefer.com - South Sea Bubble (British And Irish History) - Encyclopedia (Site not responding. Last check: 2007-10-21)
		South Sea Bubble, popular name in England for the speculation in the South Sea Company, which failed disastrously in 1720.
		Holders of £9 million worth of government bonds were allowed to exchange their bonds for stock (with 6% interest) in the new company, which was given a monopoly of British trade with the islands of the South Seas and South America.
		The bursting of the bubble, which coincided with the similar collapse of the Mississippi Scheme in France, ended the prevalent belief that prosperity could be achieved through unlimited expansion of credit.
	reference.allrefer.com /encyclopedia/S/SthSeaB.html (440 words)

	A short history of the South Sea bubble (Site not responding. Last check: 2007-10-21)
		These sort of enterprises were bad for business, and under pressure from the South Sea directors the "Bubble Act" was passed on the 11th June 1720, requiring that all joint stock companies have a royal charter.
		South Sea stock, which had been at £175 in February, was priced at over £1000 by the end of June.
		With that the South Sea bubble was finally deflated, but its impact affected many families for generations.
	www.enterprise21.com /faq/bubble.htm (873 words)

	Literary Encyclopedia: South Sea Bubble
		The episode was later labelled a bubble, implying that there had never been any real substance to the sudden surge in price and that from the outset it was destined to collapse more rapidly than it had grown.
		South Sea Company stock was the instrument chosen for this purpose.
		The South Sea Company won the resulting bidding war after committing to terms considerably more generous than its first offer: an up-front payment of a flat £4 million, 4.5 times the annual payout on all annuities traded in, and 1.0 times the annual payout on any long-term annuities not actually converted.
	www.litencyc.com /php/stopics.php?rec=true&UID=1024 (2759 words)

	The South Sea Company - Wikipedia, the free encyclopedia (Site not responding. Last check: 2007-10-21)
		That would give the stock a price/earnings ratio of 25 (= 200 / 8), above the mean, but nothing unusual.
		The business could later be restructured and a company with the name The South Sea Company stayed in business until the 1850s.
		South Sea Bubble (http://www.stock-market-crash.net/southsea.htm) - Learn about England's disastrous stock bubble
	www.eastcleveland.us /project/wikipedia/index.php/The_South_Sea_Company (1082 words)

	The First Crash: Lessons from the South Sea Bubble
		Among them were the projectors of the South Sea Company, created in 1711 to help the government refinance much of the huge debt it had incurred over the course of the War of the Spanish Succession (1702-1713) (chapter 3).
		Chapter 5 takes us back to the South Sea Bubble proper and lays out the mechanics of the scheme, while introducing us to Archibald Hutcheson, the one voice of reason who explained, again and again, in the clearest terms possible, why the scheme was fated to fail.
		The South Sea bubble, nevertheless, unfolded quickly after Parliament approved it in February 1720 and the sheer momentum of the crowd's frenzy kept it going well into July 1720.
	www.eh.net /bookreviews/library/0909.shtml (2258 words)

	The South Sea Bubble and Law's Mississippi Scheme - Print Version
		The problem with this flood of new "bubble companies", most of which were fraudulent, was that it endangered the South Sea Company, which depended entirely on a steady flow of new money to boost its share price in order to keep the party going.
		The Great Swindle, Virginia Cowell's excellent account of the events that surrounded the South Sea Bubble and the Mississippi Scheme was published in 1960, but her analysis is as sharp today as it was forty years ago.
		The "bubble" model always involves a "displacement", which leads to extraordinary profit opportunities, overtrading, over-borrowings, speculative excesses, and swindles and catchpenny schemes, followed by a crisis during which fraud on a massive scale comes to light, then by the closing act during which the outraged public calls for the culprits to be taken to account.
	www.gold-eagle.com /editorials_04/faber102004pv.html (4390 words)

	Safe Haven \| Preservation of Capital \|
		Anyway, the contention that the South Sea Bubble collapse resulted in the "average" London stock exchange company losing 98% of its price completely mischaracterizes the underlying details.
		Initial equity for the South Sea Company had come from conversion of short-term government debts into shares of the new company.
		In addition to the South Sea and Mississippi ventures, there was a project for improving the Greenland fishery, another for importing walnut trees from Virginia.
	www.safehaven.com /forums-1896.htm (730 words)

	frontline: dot con: historical perspectives: famous bubbles \| PBS
		Here are five examples of historic speculative bubbles: the Dutch Tulipmania (1634-1638); the Mississippi Bubble (1719-1720); the South Sea Bubble (1720); the Bull Market of the Roaring Twenties (1924-1929); and Japan's "Bubble Economy" of the 1980s.
		The bubble burst in May 1720 when a run on the Banque Royale forced the government to acknowledge that the amount of metallic currency in the country was not quite equal to half the total amount of paper currency in circulation.
		Formed in 1711 by Robert Harley, the South Sea Company was created to convert £10 million of government war debt (incurred during the War of Spanish Succession) into its own shares.
	www.pbs.org /wgbh/pages/frontline/shows/dotcon/historical/bubbles.html (1958 words)

	Famous First Bubbles?: South Sea Company Bubble
		The South Sea Company was proposed in 1710 by George Caswall, London merchant, financier, and stock broker, and John Blunt, London scrivener turned stock broker.
		This South Sea Company would enjoy future profits anticipated from a monopoly on English trade with the Spanish colonies of South America (South Seas), and the cash flow on a perpetual annuity from the government paying 576,534 pounds annually.
		The South Sea Company collapsed due to an unexpected adverse shock (Bubble Act) and a weak financial environment (leveraged positions, caused by installment payments and loans on the security of South Sea shares).
	www.few.eur.nl /few/people/smant/m-economics/southsea.htm (1775 words)

	Mackay, Charles, Memoirs of Extraordinary Popular Delusions and the Madness of Crowds, Chapter 2: Library of Economics ...
		Every body had heard of the gold and silver mines of Peru and Mexico; every one believed them to be inexhaustible, and that it was only necessary to send the manufactures of England to the coast, to be repaid a hundredfold in gold and silver ingots by the natives.
		So great was the confusion of the crowd in the alley, that shares in the same bubble were known to have been sold at the same instant ten per cent higher at one end of the alley than at the other.
		Bubble companies, of a kind similar to those engendered by the South-Sea project, lived their little day in the famous year of the panic, 1825.
	www.econlib.org /library/Mackay/macEx2.html (11922 words)

	South Sea Bubble
		Dubbed the “Enron of England”, the South Sea Bubble was one of history’s worst financial bubbles.
		Britain proposed a deal to a financial institution, the South Sea Company, where Britain’s debt would be financed in return for 6% interest.
		Additionally it was thought that the Mexicans and South Americans would eagerly trade their gold and jewels for the wool and fleece clothing of the British.
	www.stock-market-crash.net /southsea.htm (876 words)

	South Sea Bubble -- Encyclopædia Britannica
		His scheme of having the South Sea Company take over the national debt led to a speculation mania known as the South Sea Bubble, which ended in financial disaster (1720).
		Bubbles was best known as the original Sportin' Life in George Gershwin's opera ‘Porgy and Bess' (1935).
		Provides details of sea creatures, facts about oceans such as their geographical locations, size, ports, and the area that they cover across the continents.
	www.britannica.com /eb/article-9068882?tocId=9068882&query=null&ct=null (1012 words)

	South Sea Bubble - Forex Trading, Currency Forecast, FX Trading Signal, Forex Training Course, Education, Tutorial, FX ...
		In August 1720 the South Sea Company had a market value of £212 million with 212,012 outstanding shares at a price of £1,000.
		In August 1720 the first of the installment payments of the first and second money subscriptions on new issues of South Sea stock were due.
		In June the Bubble Act (repealed in 1825) required all joint-stock companies to have a Royal Charter.
	www.actionforex.com /financial_glossary/financial_glossary/south_sea_bubble (882 words)

	MSN Encarta - Search Results - South Sea Bubble (Site not responding. Last check: 2007-10-21)
		South Sea Bubble, plan originated by the English statesman Robert Harley, 1st earl of Oxford, in 1711, for the retirement of the floating national...
		South Sea Bubble, Sunderland, Charles Spencer, 3rd Earl of
		In the early 18th century optimism ran so high that speculation in one royal monopoly created one of the great financial panics in British history....
	ca.encarta.msn.com /South+Sea+Bubble.html (163 words)

	The South Sea Company Bubble (Site not responding. Last check: 2007-10-21)
		On April 14, £2 million of South Sea Company stock was offered to the public at £300 per share and the subscription sold out within an hour.
		Worried about the competition from the bubble companies and in an attempt to sustain their share price, the South Sea Company convinced the government to pass the Bubble Act in June 1720.
		British domestic credit was stretched to its limit and the scheme finally collapsed at the beginning of September, with the stock having fallen by 75 percent in four weeks.
	www.greekshares.com /south_sea.asp (526 words)

	History of GREAT BRITAIN (Site not responding. Last check: 2007-10-21)
		It was established in 1711 as the South Sea Company, with a monopoly of British trade to South America and the Pacific.
		In December the shares are back to their January level, representing a fall of nearly 90% in a few months (even so, this is a modest crash in percentage terms compared to the contemporary Mississippi Bubble in France).
		The politician to benefit most from the South Sea Bubble is Robert Walpole, a leading Whig.
	www.historyworld.net /wrldhis/PlainTextHistories.asp?historyid=ab07 (2322 words)

	[No title]
		It began in 1711 when the South Sea Company was allowed a monopoly of all trade England's trade with Spain's colonies in the West Indies and South America, and thus it was presumed that the company would profit greatly from the trade that was anticipated upon conclusion of the War of the Spanish Succession.
		Thus, the South Sea Company was actually an institution that used its monopoly to attract investors, and also in return for this monopoly the South Sea Company was supposed to assume a portion of the national debt that England had undertaken during the war, which then amounted to 9,000,000 pounds.
		In 1719 the South Sea directors proposed to assume the entire debt of the British government, and on April 12, 1720 this offer was accepted.
	www.gwu.edu /~klarsen/life.html (2257 words)

	Contemporary Review: Can we reduce some of the booms and busts in companies?
		But then the bubble kept on inflating; he thought that the bubble could just keep on inflating and so he bought back in and then eventually lost 20,000 pounds.
		An early notorious bubble was the tulip craze in the Netherlands in the 1630s.
		The South Sea scandal was derived from a company that was supposed to do overseas trade (but had only a few ships).
	www.findarticles.com /p/articles/mi_m2242/is_1655_283/ai_112095008 (1484 words)

	Bubble
		This project seeks to expand our understanding of the years surrounding the South Sea Bubble of 1720, the first great financial crisis of modern capitalism, by focusing on the individuals who actually purchased shares and thus made portfolio decisions.
		Combining all four sources, then, we determine how all stockholders responded to the spectacular rise and fall of the South Sea Company in two competing companies, a complementary company, and a noncommittal company.
		Our examination of the changes that took place in the distribution of these assets, especially in the period 1721 to 1730, is an intensive analysis of the reallocation of financial risk by market participants in the first emerging market after a major financial collapse.
	www.business.uiuc.edu /lneal/bubble.htm (510 words)

	South Sea Bubble (Site not responding. Last check: 2007-10-21)
		The South Sea Company was formed in 1711 to trade with Spanish America, and soon, as Margaredt Drabble explains,
		But the scheme meanwhile had given rise to a fever of speculation, of which many unprincipled persons took advantage to obtain subscriptions from the public for the most impossible projects.
		The collapse of these and of the South Sea scheme caused widespread ruin.
	virtual.park.uga.edu /~232/bubble.html (150 words)

	The Biggest Market Crashes in History: The South Sea Bubble
		The amount the market declined from peak to bottom: Stocks in the South Sea Company were traded for 1000 British pounds (unadjusted for inflation) and then were reduced to nothing by the later half of 1720.
		For the British, the eighteenth century was a time of prosperity and opulence, meaning a large section of the population had money to invest and were looking for places to put their money.
		So, the South Sea Company had no problem attracting investors when, with an IOU to the government worth £10,000,000.00, the company purchased the "rights" to all trade in the South Seas.
	www.investopedia.com /features/crashes/crashes3.asp (734 words)

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