Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1840-04-01
IFrom the Knickerbocker for April
a Thine Of Unexnmpisd Prosperity

fell in with a convoy Of merchant ships bound for
the West Indies. The weather was uncommoniy
bland; aud the ships We'd with each other IN spread
ing sail catch light, favoring breeze, until their
bulls were almost hidden beneath cloud OF canvass.
The breeze went down with the sun, ana ms last
yellow rays shone upon athousand sails IDLY Tapping
against the masts
i exuted in the beauty OF the scene, ard ausured
pros rons voyage; but the veteran master OF the
ship shook his head, and pronounced this halcyon
calm weather breeder And SO 1t proved
storm burst forth in the night; the sea reared ana
ragged; and when the day broke, beheld the AYE
gallant convoy scattered in every direction; some
dismasted, others Scudding under bare poies' anu
maAy firing signals OF distress.
have since been occasionally reminded OF TINS
scene by those calm, sunny seasons IN tue eomnei
cial world, which are known by the name 0, umes
of une xampled prosperity They are the sure
weather. breeders of traihc. Every now ana tneh
the world is visited by OF these decisive seasons
when sthe credit sy STEM as IL is called, expands
10 full luxuriance: every body trusts every body;
bad debt thing unheard of; the broad way Il CO r
tain and sudden wealth lies plan and open; amp men
tempted 10 dash forward boldly, from the achi-
~ Of DO rowing
individuals are literally discounted at the banks.
which become So many mints tn coin words into
cash and as the supply Of wo DIS il inexhaustibie,
il may readily be supposed what vast amount OF
promissory capital is soon in circulation. Every
one now talks in thousands; nothing is heard but g
santc operation in trade; great purchases and
sales of real property, and immense sums made at
every transfer ALL to be suae, as yet exists in pro-
mise; bu the believer IN promises calculates the
aggregate solid capital and fails back In amaze
ment AZ the amount OF public wealth, the 'unexam-
pied state Of public prosperity!
Now is the time for speculative and dreaming or
designing men. They relate their dreams and pro-
jects 10 the ignorant and credulous, dazzle them
with golden visions. and set them madding after
shadows. The example Of one stimulates another;
speculation rises on speculation; bubble rises
bubble every one helps with his breath to swell the
windy supe rstructure and admes and wonders at
the magnitude of the initiation he ha, contributed to
produce.
Speculation is the romance of trade and casts cor
tempt upon all its sober realities. 1t renders the
stock iobber a mag cian and the exchange a region
of enchantment. 1t elevates the merchant into a
kind OF knight Grant, or rather commercial Qux-
Otte The slew bat sure gains OF snug per ceatage
become despicable in his eyes; no operation is
thought worthy of attentian that does Il double
treble the investment. No business is orth follow
ing that does not promise immediate fortune
AS he sits musny over his ledse with pen behind
his ear, he is like La Mancha's hero in his study,
dreaming over his books of chivalry. His dusty
counting -hobse fades before his eyes, changes in
TO Spanish mine: be gropes after diam onds, or
dives after pearls. The subterranean garden Of
Aladdin is nothing to The realms of wealth that
break upon his Imagination.
Could this delusion always lest, the life OF mer-
chant would indeed be golden dream; but it is
short as it brilliant. Let bat a doubt enter and
the season Of unexampled prosperity is at end
The coinage Of words is suddenly cuItaiied; e
promssory capital begins to vanish into smoke; a
panic succeeds, and the whole superstructure built
upon credit and reared by speculation, crumbes to
the ground, leaving scarce a wreck behind:
=" tits such stuff as dre made Off
When a man Of business, therefore, hears on eve
ry side rumors OF fortunes suddenly acquired; when
he finds bank llbe rail- and brokers busy; when he
sees adventures flush Of paper capital and full of
scheme and enterprise; when he perceives a great
disp sitoR 10 buy than to sell; when trade over
flows its accustomed channels and deuges the
country when he hears of new regions of CONNER
cial adventure; OF distant marts and distant mines
swallowing merchandise and disgergiug gold; vixen
he finds Joat stock companies Of all kinds forming;
railroad, canals, aud locomotive engines, sprnsing
mp every side; when idlers suddenly become mel
of business, and dash into the game OF commerce as
they would into the hazards Of the faro table; when
he Deholss the streets slitering with new eqnpages
palaces con Jured up by the magic e speculation;
tradesmen flashed with sudden success and wing
with each Other in ostentatioas expense; in a word
when he hears the whole community joining in the
theme Of 'Unexampled prosperity let him Took up
onAbe whole asa weather-breeder,' and prepare
for the impending storm.
The foregoing remarks are intended merely as
prelude 10 a narrative am about 10 lay before the
public, OF one OF the most memorable Instances of
the infatuation Of gaiD 10 be und in the whole his
tory IT commerce. ! allnde TO the famous M,ssis-
sippi bubble IL is matter that has passed into a
proyerb and become phrase In every ones mouth
yet OF which not one hant in ten Has probably
distinct idea. have therefore thought that
thentic account Of it would be interesting and sau
tary, at the present moment, when are su fering
under the effects Of a severe access Of the credit
system, and Just recovering from Of its ruinous
decisions
THE GREAT MISSISSIPPI BUBBLE.
BE ore entering into the story OF this famous chi
mera, rs proper to give few particulars
Irg the individual who ensendered IL. John Law
was born in Edinburg in 1911 His father, William
law was rich goldsmith, and left his son an es-
tate of considerable value. called Laurison situated
about four miles from Edinburg Goldsmith in
those days, acted occasionally bankers and his ia
Tiers operations under this character, may hav e
originally turned the tbouf hts of the youth to the
science of calculation, in which he became adept
that at eaiy age he excelled IN playing at all
games of combination
In 1854 he appeared in London, where handsome
person and an easy and insinuaing address, gained
him currency ia the first circles, and the nick
Of 'Bcau Law The same personal advantages
gave him sue in the world 81 gaantry until he
became involved in quarrel with Beau Wilson. his
rival in fashion, whom he killet in duel, and then
fed To France 20 avoid prosecution.
Tie returned TO EiiDburg IN 400, and remained
there several year,; during which time he first
preached his great credit system, Offering 20 supply
the Efficiency of coin by the es ablshment II a
bank, which, according 10 has views, might en-
paper currency equivalent TO the whole landed es-
tate Of the Kingdom.
His scheme excited great sstoniss me Mt in Eiin-
barg; bh, though the government not sufficient
ly al vanced in financial krow to detect the fa
l1cies up.n which II was founded. Scottish canton
and suspic served in place Of wisdom, and the
pr jsct rejected. Law met with no better sue
with the English parliament; and the fatal az
for which he bad never been able TO procure par
don, he again went 20 France.
The financial affairs Of France were at this time
m N ID nj Nln he he ~.