№1-2018 — 07

DOI: 10.22281/2413-9912-2018-02-01-69-78
Kolmakov M.A
The «south sea company» collapse and Robert Walpole’s political breakthrough

The article is devoted to the problem of Robert Walpole’s (the leader of the Whigs political grouping) rising to power in Britain in 1721. The internal political struggle that broke out in the parliament between the Tories and the Whigs affected all spheres of life of English society, including the economic one. To win the approval of the Crown and retain their supremacy in the Parliament, the leaders of the Tories went to unprecedented steps to achieve their goals. The Tories created a financial pyramid called the «South Sea Company». However, in 1720, the company went bankrupt and the Tories were forced to admit their political inconsistency. At that crucial moment, a talented parliamentarian, Robert Walpole, emerged from the political opposition. He stabilized the economic situation in the country in the shortest possible time and restored the public’s confidence in the state. Because of the successful prevention of the economic crisis, the Crown appointed Walpole to the highest positions in government.
Keywords: Parliament, Tories, Whigs, House of Commons, the «South Seas Company», machinations, a financial pyramid, George I, R. Walpole.