South Sea Company

Written by dragon_wing

The South Sea Company was made in order to combat the English national debt, after fighting several wars and draining a lot of commerce. Company stock rose greatly in value as it expanded its operations dealing in government debt, peaking in 1720 before collapsing to little above its original flotation price; the economic bubble became known as the South Sea Bubble.

In Great Britain, a considerable number of people were ruined by the share collapse, and the national economy greatly reduced as a result.

The economic crisis, known as the South Sea Bubble, made George and his ministers extremely unpopular. In 1721 Lord James Stanhope , though personally innocent, collapsed and died after a stressful debate in the House of Lords, and Lord Sunderland resigned from public office.

Public Agenda

British joint-stock company founded in 1711, created as a public-private partnership to consolidate and reduce the cost of national debt. The company was also granted a monopoly to trade with South America and nearby islands.

Founding Date

1711

Type

Guild, Merchant

Alternative Names

The Governor and Company of the merchants of Great Britain, trading to the South Seas and other parts of America, and for the encouragement of fishing

Leader

George 1

Parent Organization

England