THE SOUTH SEA FIASCO SUNDERLAND (Charles Spencer, 1674-1722, Statesman, Bibliophile at Althorp, from 1702 3rd Earl), BAILLIE (George), TURNER (Sir Charles, brother-in-law of Sir Robert Walpole, Teller of the Exchequer 1729-1738)

Signatures on portion of a document, as Lords of the Treasury, addressed to George Montagu, Earl of Halifax (d. 1739), Auditor of the Receipt of the Exchequer, ordering a large payment under 5 George I c. 19 (1719), in respect of people who had exchanged anticipated lottery proceeds for South Sea stock, 2 sides 4¼" x 6½" remargined to 6¼" x 7½", 28th March lacks bottom portion of first side, also line ends (easily supplied from title of the Act, see transcription), text on second side appears complete apart from addressee's style, tears in line 5 without loss

To fund the war with France in Queen Anne's reign, the National Debt was increased by voluntary loans to the Exchequer and lottery subscriptions. Even blank lottery tickets paid a small amount of interest for a term of 32 years. The interest or annuities on these and previous loans was supposed to be secured by introducing more and more taxes, but Exchequer payments were increasingly in arrears. In 1710 the South Sea Company was set up to combine the various arrangements, by inviting creditors to exchange Exchequer debt for South Sea Stock, and till the Bubble burst in 1720, more and more people did so.
The £87,342 4s 5d payable by this document was due annually to those who had bought lottery tickets under 8 Anne c. 4, 1709, and who had exchanged under 5 George I c. 19 in 1719. See the marginal note to s. 6 in Pickering's Statutes at Large, 1765, Vol. 14, p. 71.
In 1721, although the directors were under investigation, there was a general feeling that Sunderland was responsible for the South Sea fiasco, and he was forced to resign within days of signing this document.

Item Date:  1721

Stock No:  51666      £675

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