In the summer and fall of 1772,
panic took hold of London’s financial circles. It began with the collapse
of a firm called Neale, James, Fordyce,
& Down. Alexander Fordyce had been
speculating successfully for a decade,
but in the early 1770s his investments
went sour. He managed to deceive his
partners for a while; according to one
biographer, “It is said he succeeded in
quieting their fears by the simple expedient of showing them a pile of bank
notes which he had borrowed for the
purpose for a few hours.” When things
got too hot, though, Fordyce skipped
town owing a hundred thousand
pounds. In early June his firm suspended payment of its debts.