Afterthisfirstoperationinreducingtheinterest，thebankcompliedwithareductionto5percentofwhatwasduetothem；
andtheybegantocirculateexchequerbillsatamoremoderateinterestthanformerly。
Publiccreditwasnowdailygainingground。In1719，theSouthSeacompany，thecapitalofwhichwasthenswelledtoelevenmillionsat5percentwithasumof9397l。sterlingfortheexpenceofmanagement，enlargedtheirviews；andfindinglargeprofitstoarisefromsogreatafundunderoneadministration，formedaprojectofacquiringafarthersumofthepublicdebts，whichremainedoutstandingupontheoriginalfundsappropriatedforthem。
Forthispurposetheyproposedtogovernmenttoacquire，first，Thepropertyofabove16millionsofredeemabledebts，bearingthen4and5percentinterest；andtoreducethewholeto4percentatmidsummer1727。Secondly，Toacquirethepropertyof794，000l。ofannuitiesuponlives，andforlongterms，astheyshouldagreewiththeproprietors，at5percentuponthepurchase-money，until1727。andat4percentafterwards。Annuitieswerethenvaluedatfourteenandtwentyyearspurchase，accordingtotheirlength:theyrose，however，duringtheoperationsoftheSouthSea，to25and30yearspurchase。Thirdly，Theyweretohaveasumaddedtotheirformerallowanceforthechargeofmanagement，inproportiontothisaugmentationoftheirstock。Fourthly，Thatfortheadvantagewhichmightfollowuponthisagreementwithgovernment，thecompanywastopayintotheexchequerabovesevenmillionssterling，towarddischargingothernationaldebtsoutstanding。
Andinthelastplace，theyengagedtocirculateaconsiderablesumofexchequerbills，andtopaytheinterestof2pencepercentperdiem，whichshouldgrowuponthemduringsevenyears。1*