On this date 300 years ago: 26 February 1720
“The movement under the share traders is very large, and the public funds are rising considerably: in particular the shares of the South Sea Company, which climbed yesterday to 177 and today to 184 and people are confident that they will rise to 200, and even above there...This will enable the company to make considerable distributions, even after she will have to increase their funds by 20 new millions, because annuity shares are at 200.” —Excerpt from the Leydse Courant, a Dutch newspaper, about the news on 26 February 1720.
As a reminder, the ICF is looking back at the first global financial bubble that occurred 300 years ago in 1720 in Paris, London and the Netherlands and we are posting various newspaper clippings from the Leydse Courant related to the South Sea Bubble of 1720 throughout the year.
P.S. Thanks to Professor Geert Rouwenhorst for translating!
Click here for more information about the South Sea Bubble of 1720 project housed on the ICF’s website.
For the financial history enthusiasts: the Yale ICF will tweet various newspaper clippings and information about the South Sea Bubble of 1720 throughout the year. Check out our hashtag: #ICF_FinancialHistoryFriday for more!
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