Born 1660 – Died 1727 • King of Great Britain 1714 - 1727

George was born in Hanover and inherited the titles and lands of the Duchy of Brunswick-Lüneburg from his father and uncles. A succession of European wars expanded his German domains during his lifetime, and in 1708 he was ratified as prince-elector of Hanover. At the age of 54, after the death of Queen Anne of Great Britain, George ascended the British throne as the first monarch of the House of Hanover. Although over fifty Roman Catholics bore closer blood relationships to Anne, the Act of Settlement 1701 prohibited Catholics from inheriting the British throne; George was Anne's closest living Protestant relative. In reaction, Jacobites attempted to depose George and replace him with Anne's Catholic half-brother, James Francis Edward Stuart, but their attempts failed.

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During George's reign, the powers of the monarchy diminished and Britain began a transition to the modern system of cabinet government led by a prime minister. Towards the end of his reign, actual political power was held by Sir Robert Walpole, now recognised as Britain's first de facto prime minister. George died of a stroke on a trip to his native Hanover, where he was buried.

George was ridiculed by his British subjects; some of his contemporaries, such as Lady Mary Wortley Montagu, thought him unintelligent on the grounds that he was wooden in public. Though he was unpopular in Great Britain due to his supposed inability to speak English, such an inability may not have existed later in his reign as documents from that time show that he understood, spoke and wrote English. He certainly spoke fluent German and French, good Latin, and some Italian and Dutch. His treatment of his wife, Sophia Dorothea, became something of a scandal.

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The British perceived him as too German. However, in mainland Europe, he was seen as a progressive ruler supportive of the Enlightenment who permitted his critics to publish without risk of severe censorship, and provided sanctuary to Voltaire when the philosopher was exiled from Paris in 1726. European and British sources agree that George was reserved, temperate and financially prudent; George disliked to be in the public light at social events, avoided the royal box at the opera and often travelled incognito to the house of a friend to play cards. Despite some unpopularity, the Protestant George I was seen by most of his subjects as a better alternative to the Roman Catholic Pretender James.

What was the South Sea Bubble?

The South Sea Company was a British joint-stock company founded in 1711, created as a public-private partnership to consolidate and reduce the cost of national debt. The company was also granted a monopoly to trade with South America, hence its name. At the time it was created, Britain was involved in the War of the Spanish Succession and Spain controlled South America. There was no realistic prospect that trade would take place and the company never realised any significant profit from its monopoly. Company stock rose greatly in value as it expanded its operations dealing in government debt, peaking in 1720 before collapsing to little above its original flotation price; this became known as the South Sea Bubble.

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The Bubble Act 1720, which forbade the creation of joint-stock companies without royal charter, was promoted by the South Sea company itself before its collapse.

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In Great Britain, a considerable number of people were ruined by the share collapse, and the national economy greatly reduced as a result. The founders of the scheme engaged in insider trading, using their advance knowledge of when national debt was to be consolidated to make large profits from purchasing debt in advance. Huge bribes were given to politicians to support the Acts of Parliament necessary for the scheme. Company money was used to deal in its own shares, and selected individuals purchasing shares were given loans backed by those same shares to spend on purchasing more shares. The expectation of vast wealth from trade with South America was used to encourage the public to purchase shares, despite the limited likelihood this would ever happen. The only significant trade that did take place was in slaves, but the company failed to manage this profitably.

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A parliamentary enquiry was held after the crash to discover its causes. A number of politicians were disgraced, and people found to have profited unlawfully from the company had assets confiscated proportionate to their gains (most had already been rich men and remained comfortably rich). The company was restructured and continued to operate for more than a century after the Bubble. The headquarters were in Threadneedle Street at the centre of the financial district in London; today the Bank of England has headquarters on Threadneedle Street. At the time of these events the Bank of England also was a private company dealing in national debt, and the crash of its rival consolidated its position as banker to the British government.

We are still paying for the South Sea Bubble...300 years on...kind of rings a bell! –

Source: Wikipedia

King George I by Georg Wilhelm Lafontaine