Depositors authorized other people such as certain servants,
relatives, cashiers, or company secretaries to make use of their
accounts. After 1721, the Bank dividend was about 6% a year.
Promissory notes are assignable and endorsable and the holder may
recover against the signer or any endorser as is the case with
bills of exchange. In 1775, no more promissory or other notes,
bills of exchange, draughts, or undertakings in writing and being
negotiable or transferable may be made for under 20s., because it
was hard for the poorer sort of manufacturer, artificer, laborer
and others to comply with them otherwise than by being subject to
great extortion and abuse. (Cash was to be used instead.)
By 1711, government finances had become so chaotic that the
Chancellor of the Exchequer sought to re-establish public credit
by means of a chartered commercial company, the shares of which
were offered in substitution for government stock. This South Sea
Company was established in 1711 with a monopoly to trade in South
America. The prospects of hugh profits sent the share prices
soaring. There was also an increase in the money supply. These
factors led to a speculation bubble in 1720 in this stock. Also,
many stock-jobbers promoted companies of every description, such
as one to extract gold from sea-water. There was an insurance boom
with about seventy insurance companies in existence, many
virtually gambling in life contingencies.
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