Yale School of Management

International Center for Finance

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The South Sea Bubble: 14 June 1720

June 26, 2020

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.”

Bubble Act
Newspaper clipping from June 14, 1720 about the passing of the Bubble Act on June 11, 1720.

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.


Related:

Financial History ICF