THE SOUTH SEA BUBBLE BURSTS, 1720 CARPENTER (George, 1657-1732, Lieutenant-General, Commander-in-Chief, Scotland, from 1719 Baron Carpenter in the Irish Peerage)

Fascinating Pair of Autograph Letters Signed to the Earl CONINGSBY (Thomas, 1657-1729, from 1719 1st Earl), in his engaging hand, in the first thanking him for offering "your interest for my standing at Webly", (Weobley in Herefordshire), "My reason for desiring time was in order to disengage my self handsomely at the Burrough I now serve for ... None in the Country know any thing of it from me but my Cozen Tom Carpenter, who will ... write me whatever you shall order him", he describes how the bursting of the South Sea Bubble has affected other prospective candidates, "Many who have made great offers to severall Corporations ... are render'd unable to performe what they may have propos'd, for great numbers who out of unbounded avarice have bought great sums of South Sea Stock for time at very high prizes, without means or even a possibility of paying for it ... are by this sudden fall of the stock entirely ruin'd, not contented with gaining 1, 2, or 300000 l. severall are at present worse than nothing, by good fortune I have not engag'd in those desperate bargains ... but am ... only troubled for some of my Frends, some Men of Quality are unable to performe their contracts, and several Bankers are gone of, part of them by lending more Money on the security of stock than twill answere, and the borrowers not being able to pay them they cannot answere their own bills, which has occasion'd such a pannick fear that paper Credit except that of the Bank begins to be refus'd and South Sea Equipages may be bought at reasonable rates", and reporting that "A Generall Court of the Bank have this day empower'd their Directors to settle matters with the South Sea for preserving publick Credit, and to open a Subscription for that purpose to circulate South Sea Bonds which has already given a little rise to all Frends ...", (22nd September 1720), in the second he is disturbed by Coningsby's reply, Carpenter is "oblig'd ... for some expressions of kindness ... but have not deserv'd the reproaches ... As for joyning in thanks to the Directors of the South Sea, I then knew nothing they had done to ruin their Country; for at that time no Man was a looser by the Company ... nor did I say above five words, and twas to second a Nobleman that I had an esteem for ... for the generall Court were at that time unanimous in their opinion that they had behav'd well ... As to the other Person I never ... heard but by your Lordships letter of his behaviour to you, therefore could not know of his being sent to insult you", as to Weobley, he had applied to Coningsby as "a piece of respect" but still has "severall frends there. Tis my native country", though he is "offer'd to be chosen in another place. I intreat a line in answere to know your resolution" (1st October 1720), together 3 sides 4to, Hanover Square and no place, 22nd September - 1st October (Transcriptions)
My Lord,
When your Lordship was pleas'd kindly to offer me your interest for my standing at Webly, I desir'd a little time to consider of it, and you said there was no hast I might take as long as I would.
My reason for desiring time was in order to disengage my self handsomely at the Burrough I now serve for, which I have done and shall hold my self under very great obligations to your Lordship for your favouring my Election at Webly. How far it may be proper to keep it a secret your Lordship is the best judge, but whenever you think I should appear in it no time shall be lost. None in the Country know any thing of it from me but my Cozen Tom Carpenter, who will follow such directions as your Lordship is pleas'd to give him, and will write me whatever you shall order him. Many who have made great offers to severall Corporations without being nam'd are render'd unable to performe what they may have propos'd, for great numbers who out of unbounded avarice have bought great sums of South Sea stock for time at very high prizes, without means or even a possibility of paying for it (thinking twould rise considerably higher and they should make mighty fortunes by taking the difference) are by this sudden fall of the stock entirely ruin'd, not contented with gaining 1, 2, or 300000 l. severall are at present worse than nothing, by good fortune I have not engag'd in those desperate bargains and shall get something tho' short of what I expected, but am satisfy'd as to my self, and only troubled for some of my Frends, some Men of Quality are unable to performe their contracts, and several Bankers are gone of, part of them by lending more Money on the security of stock than twill answere, and the borrowers not being able to pay them they cannot answere their own bills, which has occasion'd such a pannick fear that paper Credit except that of the Bank begins to be refus'd and South Sea Equipages may be bought at reasonable rates.
Your Lordship has been too wise to engage in this high gaming, which I am very glad of, he who has a good Estate and ventures either to double or loose it all deserves little pitty if undone.
A Generall Court of the Bank have this day empower'd their Directors to settle matters with the South Sea for preserving publick Credit, and to open a Subscription for that purpose to circulate South Sea Bonds which has already given a little rise to all Frends for all were also very low.
I am
My Lord
Your Lordships most humble and obedient Servant
Carpenter

Hanover Square Sept: 22 1720
Rt. Honble. the Earle Coningsby

My Lord,
I am oblig'd to your Lordship for some expressions of kindness in the first part of your letter but have not deserv'd the reproaches in the other part of it.
As for joyning in thanks to the Directors of the South Sea, I then knew nothing they had done to ruin their Country; for at that time no Man was a looser by the Company; they have indeed been very much blam'd since, and I am convinc'd tis with good reason; nor did I say above five words, and twas to second a Nobleman that I had an esteem for: so twas very innocent, and not materiall, for the generall Court were at that time unanimous in their opinion that they had behav'd well.
Hitherto I have preserv'd a Character of loving my Country as well as any Man, and you know have serv'd it in a double Capacity with perfect truth and zeal, nor have I ever err'd except in my judgement, which no Man is infallible in.
As to the other Person I never eat or drank with him, nor are wee familiarly acquainted, so never heard but by your Lordships letter of his behaviour to you, therefore could not know of his being sent to insult you.
In returne to your Lordships proposing my standing at Webly, and promising me your interest, I thought it a piece of respect to apply to you, and should be very glad of your favour in it, but if I am not so happy to obtain it I must do the best I can, having severall frends there. Tis my native country, and on what your Lordship said to me have disengag'd my self at the Burrough I now serve for, on purpose to stand there, which I designe to do: tho' am offer'd to be chosen in another place. I intreat a line in answere to know your resolution. I am
My Lord Your Lordships most humble and obedient servant
Carpenter
Oct. 1: 1720

Both Carpenter and Coningsby had lands in Herefordshire (Coningsby at Hampton Court), both had served in Ireland in 1690 and both had been awarded Irish Peerages, which did not disbar them from sitting in the English Commons (thus Coningsby till 1716). Coningsby had been very prominent in Irish affairs; Carpenter had served in Spain. In 1715 Carpenter was given the command of Northern England and, diverting the Old Pretender's troops from Newcastle, was responsible for their defeat at Preston. The following year he was made Commander-in-Chief, Scotland.
In the event, Carpenter retained his seat at Whitchurch, Shropshire, 1715-1722, and then sat for Westminster, 1722-1727.
The South Sea Company was a government-private partnership floated in 1711, intended to help manage the national debt by trading with South America once the war of the Spanish Succession should end. During 1720, by various devices, the public was induced to continue converting government bonds and annuities, especially long-term irredeemable ones, into South Sea stock, and to speculate on a rise in price. A 'South Sea Equipage' was a set of coach and horses bought without regard to taste or price by a speculator flaunting his gains.
By August 1720, £100 nominal was being traded at nearly £1000 before the bubble burst as described in the present letter. The stock price fell to £150 by the end of September and back to about £100 by the end of the year. A massive inquiry was set up, government officials were indicted, and wealthy speculators forfeited their profits. The company itself continued its dual role with greater or less success till the mid-nineteenth century.

Item Date:  1720

Stock No:  56563      £1750

             Add to Wish List     Order/Enquire