(South Sea Bubble) | The world's first financial crash

Property of a New York Collector

(South Sea Bubble)

A pair of documents relating to the purchase of stock in the South Sea Company, formed in 1711 to conduct trade in South America under a treaty with Spain

Manuscript document, one page (246 x 208 mm), [London], 4 March 1712, signed by Francis North and his wife Alice, Baron and Baroness of Guilford, with their wax seals. "Wee the Right Honble Francis Lord Guilford and Lady Alice Baroness of Guilford … Doe hereby Authorise and Impower James Taylor … to Sell Assigne and Transferr One hundred pounds in the Capital and principal Stock of the Governor and Company of Merchants … trading to the South Seas … Witnesse our hands and seals the Ffourth day of March One thousand Seven hundred and twelve, …" countersigned by two witnesses, later docket on verso.

Manuscript document, one page (227 x 185 mm), London, 16 January 1720/21, signed by Elizabeth, Countess of Thanet. "ray Let my Subscription of one thousand pounds on the fourth Subscription be placed to my acct. in Stock according to ye Resolution of the Generall Court of the South Sea Compa. London the 16 Janury 1720 [/21]."

Together, 2 documents; some very light toning.

The South Sea Company was an English joint-stock company established by Robert Harley in 1711 to exercise exclusive British trading privileges with South America and the Pacific islands. Francis Lord Guilford, co-signer of the first document, served successively as Privy Councilor and President of the Board of Trade and was a major player in the formulation of economic policy at the time. Speculative mania pushed the price of the stock to great heights before it collapsed in 1720, ruining many investors. The timing of the stock purchase by the Countess of Thanet recorded in the second document was particularly unfortunate, occuring just before the bubble burst.