Queen in waiting

The Bubble

The King was away on yet another visit to Hanover when panic struck London.

All through the year people of all kinds—the nobility and the poorest in the land—had been excited by the South Sea Trading Company, through which it was believed fortunes could be made in a few days. So busy was the Stock Exchange that desks had to be set up for clerks in the street to cope with all the business, for anyone who had any money was eager to invest it. People dreamed of riches, talked of riches, and many became rich.

It was there for everyone to see; those who had never dreamed of owning a carriage now had three or four. Humble merchants became millionaires. It was not only humble merchants; it was cabinet ministers, members of the nobility, the King's German mistresses—the Prince himself. Everyone was determined to grow rich through the exploitation of the South Seas. It was as though a fever was raging through the country— a fever of excitement, and to become rich quickly was the aim of every man and woman.

Stock worth one hundred today could be worth a thousand tomorrow so great was the demand for it.

So popular was the South Seas company that many other companies were floated. No project was too absurd to float a company; and still people rushed into them, eager to invest the guinea that they were convinced would miraculously turn to ten within the space of a few weeks.

Such a state of affairs must come to an end. The South Sea Company, knowing that its methods were being imitated by companies which had nothing at all to offer, decided to expose them; this it did and no sooner had the enquiries begun than fraud was exposed and the panic began to set in. The dream was evaporating; but in uncovering the fraudulent dealings of others the South Sea Company had exposed its own vulnerability.

It was a genuine trading company, but so far on no sound financial basis, and as soon as the panic stricken investors began to back out the company itself collapsed. Shares consequently tumbled in price and investors saw not only their dreams disappearing but their original investments.

The scenes on the stock exchange were such as were never seen before. Ruined men gathered on the streets; they were too bewildered at first to understand what had happened to them. Then they began to cry out that they had been the victims of a hoax. There were no big fortunes to be made. Instead of being millionaires they were paupers.

And who was to blame? The Government, the King, the Prince, the King's mistresses, the Cabinet ministers who had known all along that the South Sea Company was not the rich enterprise it had been made out to be, but merely an empty name to provide a gamble at which they could grow rich at the expense of the ignorant?

Caroline, still mourning the manner in which she had been outwitted, came out of her listlessness to listen aghast to the news.

People were massing in the streets. Riots could break out at any moment. And these people who had been ruined through what they were calling the South Sea Bubble, were looking for a scapegoat.

Why not the Germans whom they hated? The Prince was involved in this. He had been advised by Walpole how to gamble through the South Sea Company on the stock exchange and had made large sums of money. What some had gained others had lost. It was a frightening situation.

Henrietta came to her in panic and told her that it was being said that the royal family should leave England. They had never been so unpopular. They should get away while they had a chance.

"It will pass," said Caroline.

Walpole came to see her. She had been cool to him since the reconciliation and had told him that she understood how she had been duped.

He had been deeply concerned, assuring her that he had done everything in his power to restore her children to her. All the same she had made it clear to him that he was out of favour with her.

He had done something to regain her esteem by showing how her dissatisfaction disturbed him and using every effort to win back her approval.

She saw him differently now; to her he was a man of unattractive appearance; he was too bulky in figure, too coarse in his habits; and she had heard he drank heavily and lived an immoral life. Even so, she made excuses for him. His married life was not happy; his wife went her own way as he did, and took lovers while he took mistresses. He had a daughter who was a chronic invalid and her sufferings distressed him deeply. And in spite of all this he was the most brilliant statesman of his day.

She was aware of this and wanted him to be on her side. He knew that she was a clever woman married to a foolish husband who would one day be King. They both respected each other and would continue to do so whatever the differences between them.

Now it was as though his fearful disaster had brought them a little closer. She confided in him what she had heard and he replied that there was some feeling against the royal family but it would be folly to run away. The trouble would pass although he believed it would mean the fall of Stanhope.

"But that, Madam," he said his eyes twinkling, "need be no great concern of yours. Stanhope was scarcely your friend."

"They are blaming him?"

"He's one of the culprits. Sunderland too. They'll have to resign."

"And then?"

Walpole smiled. "I was warning people, you know, before the crash. I advised them not to buy."

"And you yourself?"

"I sold out at the highest price."

"This will not be held against you?"

"Why should it? I warned others to sell. I was ignored."

"And now you are able to go ahead with your building plans."

"Yes, Madam. I hope one day to have the honour of entertaining you and the Prince at Houghton. I will show you the pictures I am collecting. I am sure they will enchant you."

"You will not retire to Houghton again?"

"I doubt it. Madam. I doubt it now."

He was right, of course. Stanhope, rising in Parliament to defend himself, dropped to the floor unconscious, and the next day died. The strain was too much for him. Sunderland, as Walpole had predicted, was forced to resign.

This was the opportunity for which Walpole had been waiting. He was ready.

Sir Robert Walpole became Prime Minister.