Swapping Debt for Equity in the South Sea Company

The south sea company was set up to trade with the spanish colonies. Holding government debt directly had become notoriously difficult. The plan encouraged people who were holding all kinds of debts to swap them for shares in the company. At first, this seemed to work. About nine point five million pounds of government debt was consolidated through the south sea comp shares in about six months. But eventually things took a turn and we will get to that story after a sponsor break.