Parliament’s investigation, reporting in 1721, reveals widespread…
1721 CE
Parliament’s investigation, reporting in 1721, reveals widespread fraud among the directors of the South Sea Company.
Among those implicated are John Aislabie (the Chancellor of the Exchequer), James Craggs the Elder (the Postmaster General), James Craggs the Younger (the Southern Secretary), and even Lord Stanhope and Lord Sunderland (the heads of the Ministry).
Craggs the Elder and Craggs the Younger will both die in disgrace; the remainder are impeached for their corruption.
Aislabie is found guilty and imprisoned, but the personal influence of Walpole saves both Stanhope and Sunderland.
For his role in preventing these individuals, and others, from being punished, Walpole gains the nickname of "Screenmaster-General".
The resignation of Sunderland and the death of Stanhope in 1721 leaves Walpole as the most important figure in the administration.
He is n April 1721 appointed First Lord of the Treasury, Chancellor of the Exchequer and Leader of the House of Commons. (Walpole's de facto tenure as England’s first "Prime Minister" is often dated to his appointment as First Lord in 1721. In reality, however, Walpole shares power with Lord Townshend, who serves as Secretary of State for the Northern Department and controlled the nation's foreign affairs. The two also have to contend with the Secretary of State for the Southern Department, Lord Carteret.)
Walpole, who despite having invested had argued against the scheme from the beginning, is forced to introduce a series of measures to restore public confidence.
The estates of the directors of the company are confiscated and used to relieve the suffering of the victims, and the stock of the South Sea Company is divided between the Bank of England and East India Company.
The crisis has significantly damaged the credibility of the King and of the Whig Party, but Walpole defends both with skillful oratory in the House of Commons.
Walpole's first year as “Prime Minister” is also marked by the discovery of a Jacobite plot formed by Francis Atterbury, the Bishop of Rochester, to capture the royal family and proclaim as king James Francis Edward Stuart, the son of King James II of England and VII of Scotland and his Roman Catholic second wife, Mary of Modena.
The exposure of the scheme crushes the hopes of the Jacobites, whose previous attempts at rebellion (most notably the risings of 1715 and 1719) had failed to meet with success.