The South Sea Bubble: 14 June 1720
The South Sea Bubble of 1720
This year, the ICF is looking back at the South Sea Bubble of 1720 which was the first global financial bubble that occurred 300 years ago in Paris, London and the Netherlands. On our South Sea Bubble 1720 project website, we share newspaper clippings from the Leydse Courant, a Dutch newspaper published in the 1720's, which documents some of the economic news at the time and the historical moments of the financial bubble from November 20, 1719 through December 31, 1721.
On this date 300 years ago: 14 June 1720
Translated excerpt from the Leydse Courant about the passing of the Bubble Act of 1720:
“London June 14: The committee appointed by the House of Commons to investigate projects and illegal endorsements that have been made recently, assures that they found 70 that are all detrimental to the good and commerce of the nation. It is also certain that they will all be terminated by an Act of Parliament. This Act will also prohibit similar projects in the future.”
A BIG thank you to Professor Geert Rouwenhorst for translating and Rik Frehen for his work on the project and finding this passage!
Click here for more information about the South Sea Bubble of 1720 project.
Discover the ICF's South Sea Bubble of 1720 Financial History Collection
The South Sea Bubble: JuLy 1720
Financial History Repeats Itself. The South Sea Bubble: 22 April 1720
The South Sea Bubble: 26 February 1720
Looking Back 300 Years at the South Sea Bubble of 1720
Frehen, Rik and Goetzmann, William N. and Rouwenhorst, K. Geert, New Evidence on the First Financial Bubble (July 27, 2012). Journal of Financial Economics, Volume 108, Issue 3, June 2013, Pages 585-607. Available at SSRN: https://ssrn.com/abstract=1371007