Financial Crisis and Whig Constitutional Thought, 1720-1721
An Economy of Violence: Financial Crisis and Whig Constitutional Thought, 1720- 1721 Adam Lebovitz* INTRODUCTION The South Sea bubble burst suddenly in September 1720, the second in a chain of panics that struck Paris, London, and Amsterdam in quick succession. The crash in London was by far the most severe; within weeks two-thirds of England's nominal wealth had evaporated, public credit had collapsed, and London's most distinguished banking houses tottered on the brink of ruin. Commerce ground to a halt, leaving a forest of half-built ships rotting in city harbors and a thicket of unfinished mansions in London's fashionable districts.' One awestruck correspondent compared the event to "a blazing Comet, [which] by its sudden and amazing Rise and Progress alarm'd all Europe, and now by a more sudden Downfall has greatly affected all the Nation." A second insisted that the "fire of London or the plague ruin'd not the number that are now undone, all ranks of people bewayling their condition in the coffee houses & open streets." A third alluded, succinctly, to "the death of our prosperity."2 These anxious * I am grateful to Eric Beerbohm, Greg Conti, Christine Desan, David Golove, David Grewal, Stephen Holmes, Daniel Hulsebosch, Sungho Kimlee, Janet Kwok, Eric Nelson, William Nelson, Steven Pincus, Frank Stewart, Lauri Tahtinen, and Laura Valentini, as well as audiences at Harvard and New York University, and the editors at the YJLH, for comments on an earlier draft. Special thanks to Sabeel Rahman for commenting on multiple successive drafts, to William Deringer for sharing his work in progress with me, and to Jos6 Argueta Funes for his detailed reading of the final draft.
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