British images, poems and quotations, £9.99 Width: 176.000 mm
Height: 119.000 mm Chartered Institute of Bankers Collection CM
CIB 18258 Coins and Medals Exchequer Bill for £100 England, 7
June AD 1720 A note to inflate the South Sea Bubble Interest-
bearing Exchequer Bills were introduced in England in 1696 as a
form of public borrowing: they were issued in return for money
lent to the government. From the early eighteenth century the
bills were accepted in payment of taxes, and could be redeemed
at the Bank of England. Many carry several endorsements on the
back, showing that they circulated among the public. The example
shown here was part of an issue to lend money to the infamous
South Sea Company. Formed in 1711, the Company made fictitious
claims to have a monopoly of trade with Spanish America. The
unfounded promise of future wealth led to feverish speculation.
Thousands of investors ploughed their fortunes into the Company,
leading to a huge rise in the price of the Company's stock.
However, the market