, 1873-11-16
hite-FIying in England and Franco
In tho Last Century.
History Of the Mississippi Scheme"
and tho South Sea
Company
The Mania for Speculation in Former
- Ages, and What II Led To-.

HOw the British Parliament Pun
U.s. ished Crcdit-NIobilior
Operators.
Mankind oannot plead lack OF experience 40
nn excuao for tho crlmoa and folios Of spccula-
'tlon that bring down misory upolitho people df
great and prosperous countrton. Ag most Of tn
have Ind tho opportunity Of observing the
wretchednoss to which q mad caroor Of gambling
has brought individuals, 80 aal Of us may noto
In tho history Of if1oront countries md ages tho
bamc mistakes wliioh wa 1avo made as nation
When tho cablo brings us ntelligonoo, aa 1t did
hfow days ago TINT tlloro had beosi d srinkaga
of$1 600 000 IN tho speculative atocka which
tho British mud Continental gamblers 1laYo beon
:.loating, wo like to feign astonehmcnt nt tho
news, just as II thoro had not boen = shrinknge
,proportionate1y tremendous in New York a
couplo ot months ago, and d Bimi1ar decline and
popular terror in Vienna threo or four
months before. II no wore to reckon
all tho kitos that epcculators Of differ
ont countries have boen flying within tho
last few yoars,-lhe mining atocka Of all desorip.
donB, tho petroleum oil companies, tho railroada
To tho moon from tho Continent OF Europe as
vol as from America, oto., oto.,-the shrinkngo'
Of valuoa must havo boon botweon 80 900, ,000. GOO
and $4,000, ,000,0 900 from the standard Of a few
years ago. This means that the wealth of man
Kind Is abont that much less than It WAS sup
posed to bo. Tho people who supposed that
they were possessed Of this fictitious wealth have
boon living on m oxtravagant scale which they
must abandon. There is just as much actllaf
property, except whero It has baen destroyed by
tdro, war, or Hood, but the bottom has fallen out
of tho air-ship we have been sailing in, and re
must be content to walk for while inBtend Of
flying. Tho Mississippi Scheme in France and
the South Sea Bubble In England have always
been regarded as the biggest balloons and tue
most astounding collapHes that tho world has
over known. The actual fall in these casos WAS
probably not 30 great aa in our time. but the
world was practically smaller thon, and great falls
made greater soneations than now.
THE MISSISSIPPI SCHEME.
Louis XIV, OF Franco, died in 1715, and left
Ills people on tho verge of bankruptcy. Tho
grcat and costly wars be had uudertakon, and
particularly the 1ast-that Of tho Spanish Sue
ccsaion-had drained tho public resources al
most dry. Ho had boon g1idod In u1s 1ato yoara
bY d cold aud n,atei1esB woman (A1ndame do
Draintenon) who had no eympathy with tho
people. Tho Duke OF Orleans assumed tho con-
troll Of the Government as Regent, during the MI
nority ofLouia XV, and nddod to the tlobts Of the
war m extravaganza Of the most reck1oBs char
actor, with which the people, following tho ncw
nnd loose philosophy Of tho day, readily foil in.
The national debt was 5000, ,900, 900 livres, the
revenue about 145, 600, and tho Government
expenses nehrly M much, leaving little or nothing
to pay the interest," on tho public debt. At one
slime, the proposition was seriously. entertained
to declare national bankruptcy aud general re-
pudiasion. 4 measure equally dishonest was ra-
eortcd to. a recoignnge WAS ordered, by which
the coin Of tho realm was debased ono-ftth,
Whereby the Treasury gained u, Qoo, 600 lvres.
adopted, which resulted in tho prosecution by
the Government OF tho tax-gatherors and In
formers, in order to aprcoao the people whom
thep had persecnted. Corruption roigned on all
nides Tho Regent was too fond Of lis case, e. 90.
c.oty too immoral, otcial circles too corrupt, and
the people too oxtrayngaut to admit Of any hon
CT and earnest effort to restore tho public credit
Ih9 tnancial confusion became hopeless. Il was
ct this time that John Law camo upon tho sceno.
1le lad been companion Of the Duke Of Or
leans in bis dissipation, boforo the latter az
m ess o Rs aaw H
man in duel, and was obliged to fly from home.
l1o VAS roue, n gambler, and disspated ad- |
yenturer, WHO had made the tour OF tho !
given finance an earnest though misguided
study. Ho Ind, in his own country, developed /
2 3, scheme 9 for 9 Land Bank [alao called
rency for tho csuntry on tho security Of
the land, and which very nearly seourod tic
approval OF Parliament. He oame 10 the Ressut
ct time when the latter Was ready to adopt any
that metallic currency was altogether inade-sI
t1nate to the need Of q commercial country.
3he result was Royal odot establishing the
hank OF Law y Co., with capital Of 5000,
esoh. The notes Of the bank wore made re-
celvable in payment Of ta1os,-in othar words,
'csal-tender. They woro made payable on sight
r, tho coin current at the time they rore issuod.
as the Government WAS constantly tampering
with the coin, which might BE- worth one-fft6
less Tomorrow than to-day, LAWS notes cona-
!nanded premium. Hero waa q precedent for
tho bank were started at once in all tho 1args
cities OF France. LAWS management Was good.
and he gained the implicit confidence Of the peo-
T'le. His SUCCESS WAS nov so great that he con-
the trade Of the MiHsissippi and tho Province of
Louisiana. The Regent granted m exclusive
privilege, md tho Mississippi Company was or
divided into 200 o9o shares, for which tho depro.
.iatea 6illets dEtat were received at thoir par
value. Up to this time, Lnw'a bauk had uevor
taanad more than GO, 900 900 iyres In notes. Now
gave it tho control Of tho reauage OF gold and
silver, and the aa1e Of tobacco, and Issued one
thousand millions In notes. He beloved that
paper.maone;y. could ia; b made to auporsede
thing vent on swimmingly, just a. It has for
years in our own country Witha similar currency,
Speculation now became : frouzy with
tue Reon|te ;, q f. France snd Lay was the
duced. The pa.liament resisted, but the Re-
gent overawcd that body by tho arrest aud i'm
prisonment Of the President and some Of the
leadors. spoclo Was further debased. and mora
sllares Ia tho mississippi Company became more ore
popular than gold and sityer. 10 the priyi1eces