Indiana State sentinel. (Indianapolis, Ind.) 1861-1865, 1863-12-14
From the Philadelphia Age.l -1
THE LAW BUBBLE-THESOU SEA
BUBBLE.
The Great Financiers of France, Eng
land and America.
CHESTER oousrr. November a5, II

CHESTER County, November %, 1863.
The VALLEY Of the Mississippi, known as Lou
isiana Territory, was possessed by France in the
year l7l2. far as the head spring of the Ale
gheny, and the exclusive trade of this immense
territory was granted by Louis XIV to French
merchant named Crozat. Crozat, however, not
succeeding in the colonization of the territory.
his colony was resigned TO the King in l7l7, with
population, including the military, OF not more
than seven hundred persons. -n
The revenues Of the French government were
not equal to the interest the enormous debt
bequeathed by the extravaganza of Louis XIV,
and hence there vas great depression in the value
of the national securities Just at this time the
notorious fnancier John Law appeared the
stage.
Law was grimcrack, itinerant Scotchman.
who managed to raise himself to the dignity of
Comptroller General of the Finances of France
upon the strength of a scheme. invented by him
self tor establishing bank, an East India and a
Mississippi Company, by the profits of which the
national district of France was to be paid off He
first offered his plan to Victor Amadeors, King of
Sardinia. who told him che was not powerful
enough to ruin himself"
Taking advantage ofthe financial depression in
France, Law proposed his credit system 70 the
Regent relief In l7l6 he opened bank
under the protection of the Duke of Orleans. then
Regent of France.
In l7l7 the Western or Mississippi Comptny
received the transfer Of the commerce of LDuisi-
ana, which had Just been resigned BY Crozit.
Bancroft relates that -.the mines and com merce
and boundiess extent of Louisiana were now in
vokei 10 relieve the burden and renew The credit
OF the metropolis The human mind Is inll of
trust; men in masses always have faith in the
approach Of better times; humanity abounds ia
hope. The Valley Of the Mississippi iniamed
the Imagination of France; anticipating the fu
/ ture, the French nation beheld The certain opu-
lence of coming ages xithiu their immediate
g-asli." This Mississippi scheme was the great
claw bubble /"
Laws theory was that the currency Of coun.
try need not possess intrinsic value; that the
wealth of a nation may be indefinitely Increased
by an arbitrary infusion OF paper.
| The Company of the Mississippi instituted by
Law, was the basis upon which the credit of the
Government was to be revived. and "Law was
reverenced as the greatest man of the age
| The shares of the company were put into the
market and paid for in public bonds; aud thus
the Government became debtor 10 a company Of
| its own creation The bonds, from depreciation
rose rapidly In value in consequence Of the inter-
est having been punctualy paid by the bank es
tabished by law. whilst extravagant and fabu-
uous stories were circulated of the wealth of
| Louisiana, its cities and gold mines. 800
In 17l9 Laws Bank became the Bank of
France. People of every rank and condition of
s,bs.r;,,sd eo- .,,.,rss ~ ,hs AZ, =. Bubble ~
this bubble. BAncroft. in his history writes. "a
EGov,rumeut which had alnos, absolute mower of
la,sl .s;,,,, 40 rive tho x;ds.t .,ta,-
SION - VIA, vas called cred;, Law n,;sht bsxe
seenIsted Al his Measure the ;n.erest of money
,he v.,ua 81 s,ariss md tho rice &C I.hor 80
| produce. The contest between paper ard specie
began 10 rage-the one buoyed up by despotic
psnsr vas made The ,sssi ,s,ds, - ali
- ~ ,;,,,a III "a 49, s:i's. - M, ~