The language of finance

Bubbles. Financial schemes resting on no solid foundation, which promise well for a time, and cause much money to change hands, till their rottenness is discovered, and the schemes collapse, involving their victims in irremediable loss and sometimes ruin. The South Sea Scheme, and John Law’s Mississippi Bonds are historical examples. The popular notion that schemes of this kind were called bubbles from their hollowness and unsoundness is a complete inversion of the truth. The word “bubble” or “bobbel” meant formerly to deceive, to cheat, to confuse, and the familiar soap-bubble derived its name from its inflated and bulky appearance, and because when pricked it proved itself a hollow cheat.*

Run upon a Bank. When in times of civil commotion, or foreign complications, the masses of the people become alarmed for the safety of their money at the bank, or the convertibility of the notes issued by the bank, it is not unusual for them to rush panic-stricken and withdraw their deposits, or demand gold for their notes. When such a phenomenon occurs, it is technically called a “run” upon the bank.

*False etymology. OED shows that bubble is onomatopoeic in origin, and what Bithell dismisses as ‘the popular notion’ is, in fact, correct.

Richard Bithell (fl. 1882–1903)

from A Counting-House Dictionary (3rd impression, 1892)


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