A SECRET COMMITTEE APPOINTED BY THE HOUSE OF COMMONS.

The parliament being assembled on the eighth day of December, his majesty expressed his concern for the unhappy turn of affairs, which had so deeply affected the public credit at home: he earnestly desired the commons to consider of the most effectual and speedy methods to restore the national credit, and fix it upon a lasting establishment. The lower house was too much interested in the calamity to postpone the consideration of that subject. The members seemed to lay aside all party distinctions, and vie with each other in promoting an inquiry, by which justice might be done to the injured nation. They ordered the directors to produce an account of all their proceedings. Sir Joseph Jekyll moved that a select committee might be appointed to examine the particulars of this transaction. Mr. Walpole, now paymaster of the forces, observed, that such a method would protract the inquiry, while the public credit lay in a bleeding condition. He told the house he had formed a scheme for restoring public credit; but, before he would communicate this plan, desired to know whether the subscriptions of public debts and incumbrances, money-subscriptions and other contracts made with the South-Sea company, should remain in the present state. After a warm debate, the question was carried in the affirmative, with this addition, “Unless altered for the ease and relief of the proprietors, by a general court of the South-Sea company, or set aside in due course of law.” Next day Walpole produced his scheme,—to ingraft nine millions of South-Sea stock into the bank of England, and the like sum into the East India company, on certain conditions. The house voted, that proposals should be received from the bank, and those two companies on this subject. These being delivered the commons resolved, that an engrossment of nine millions of the capital stock of the South-Sea company into the capital stock of the bank and East-India company, as proposed by these companies, would contribute very much to the restoring public credit. A bill upon this resolution was brought in, passed through both houses, and received the royal assent. Another bill was enacted into a law, for restraining the sub-governor, deputy-governor, directors, treasurer, under-treasurer, cashier, secretary, and accountants, of the South-Sea company, from quitting the kingdom till the end of the next session of parliament; and for discovering their estates and effects, so as to prevent them from being transported or alienated. A committee of secrecy was chosen by ballot, to examine all the books, papers, and proceedings relating to the execution of the South-Sea act.

The lords were not less eager than the commons to prosecute this inquiry, though divers members in both houses were deeply involved in the guilt and infamy of the transaction. Earl Stanhope said the estates of the criminals, whether directors or not directors, ought to be confiscated, to repair the public losses. He was seconded by lord Carteret, and even by the earl of Sunderland. The duke of Wharton declared he would give up the best friend he had should he be found guilty. He observed, that the nation had been plundered in a most flagrant and notorious manner; therefore, they ought to find out and punish the offenders severely, without respect to persons. The sub and deputy-governors, the directors and officers of the South-Sea company, were examined at the bar of the house. Then a bill was brought in, disabling them to enjoy any office in that company, or in the East-India company, or in the bank of England. Three brokers were likewise examined, and made great discoveries. Knight, the treasurer of the South-Sea company, who had been entrusted with the secrets of the whole affair, thought proper to withdraw himself from the kingdom. A proclamation was issued to apprehend him; and another for preventing any of the directors from escaping out of the kingdom. At this period, the secret committee informed the house of commons that they had already discovered a train of the deepest villany and fraud that hell ever contrived to ruin a nation, which in due time they would lay before the house; in the meanwhile, they thought it highly necessary to secure the persons of some of the directors and principal officers of the South-Sea company, as well as to seize their papers. An order was made to secure the books and papers of Knight, Surman, and Turner. The persons of sir George Caswell, sir John Blunt, sir John Lambert, sir John Fellows, and Mr. Grigsby, were taken into custody; sir Theodore Janssen, Mr. Sawbridge, sir Robert Chaplain, and Mr. Eyles, were expelled the house and apprehended. Mr. Aislaby resigned his employments of chancellor of the exchequer and lord of the treasury; and orders were given to remove all directors of the South-Sea company from the places they possessed under the government.

The lords, in the course of their examination, discovered that large portions of South-Sea stock had been given to several persons in the administration and house of commons, for promoting the passing of the South-Sea act. The house immediately resolved, that this practice was a notorious and most dangerous species of corruption: that the directors of the South-Sea company having ordered great quantities of their stock to be bought for the service of the company, when it was at a very high price, and on pretence of keeping up the price of stock; and at the same time several of the directors, and other officers belonging to the company, having, in a clandestine manner, sold their own stock to the company, such directors and officers were guilty of a notorious fraud and breach of trust, and their so doing was one great cause of the unhappy turn of affairs that had so much affected public credit. Many other resolutions were taken against that infamous confederacy, in which, however, the innocent were confounded with the guilty. Sir John Blunt refusing to answer certain interrogations, a violent debate arose about the manner in which he should be treated. The duke of Wharton observed, that the government of the best princes was sometimes rendered intolerable to their subjects by bad ministers: he mentioned the example of Sejanus, who had made a division in the imperial family, and rendered the reign of Cladius hateful to the Romans. Earl Stanhope conceiving this reflection was aimed at him, was seized with a transport of anger. He undertook to vindicate the ministry; and spoke with such vehemence as produced a violent headache, which obliged him to retire. He underwent proper evacuations, and seemed to recover; but next day, in the evening, became lethargic, and being seized with a suffocation, instantly expired. The king deeply regretted the death of this favourite minister, which was the more unfortunate as it happened at such a critical conjuncture; and he appointed lord Town-shend to fill his place of secretary. Earl Stanhope was survived but a few days by the other secretary Mr. Craggs, who died of the small-pox on the sixteenth day of February. Knight, the cashier of the South-Sea company, being seized at Tirlemont by the vigilance of Mr. Gandot, secretary to Mr. Loathes the British resident at Brussels, was confined in the citadel of Antwerp. Application was made to the court of Vienna, that he should be delivered to such persons as might be appointed to receive him; but he had found means to interest the states of Brabant in his behalf. They insisted upon their privilege granted by charter, that no person apprehended for any crime in Brabant should be tried in any other country. The house of commons expressed their indignation at this frivolous pretence; instances were renewed to the emperor; and in the meantime Knight escaped from the citadel of Antwerp.