The morning star and Catholic messenger. [volume] (New Orleans [La.]) 1868-1881, 1874-10-11
The Fortunes of Famous Financier.
HISTORY OF THE RENOWNED JOHN LAW
[Appleton's MagaziRe I

|
Every day we realize more and more that
in the midst of life we are in debt and
that, from present indications, we shall
continue to be for generations to come.
No question is more puzzliDg than that of
finance. The abiest minds hold almost
contrary opinions respecting it; hardly any
| two can agree !; and he who deems himself
wisest in this regard is pronounced a block
| head by another that chances to entertain
| q different view. we can boast of so many
fnanciers just now (every legislator and
every rural journalist claims such honor
that few glimpses at an historic money
| manager ought not to be uninviting.
| Ability in every thing, and especially in
finance, is judged, often uDjustly, by re-
suits. So it was with John Law, who, be-
cause his schemes met with disastrous fail
ure, was long considered either desperate
speculator or fantastic theorist. Many
| facts in his life gave color to this opinion
aud yet careful Investigation and dispas.
| siopate criticism show him to have been a
man of extraordinary capacity and knowl,
edge, whose great mistake was in supposng
| that abstract principles can be practically
carried out. Born in Edinburgh, in 1871,
he was thoroughly educated, evincing,
while at college, o remarkable insight into
the most abstruse problems of political
economy, and SO clear comprehension of
| all monetary matters that one Of the pro-
fessors predicted he would some day be
great banker. His studious habits did not
prevent him from cnltivating the vices, and
he soon proved himself pronounced rake
and systematic gambler. Having quar-
relied with companion over game of
cards, the lie was given, blow followed,
and then challenge. Law was the chal-
lenger, and killed his adversary, which
| caused his flight to the Continent.
The prophecy of the professor was not
forgotten. particularly as it bad expressed
the young duelist's private thought. He
went to Holland, and, obtaining situation
in the Bank of Amsterdam, one of the
greatest financial institutions of the time,
he studied its system diligently for over
two years, and quilted his place with the
conviction that he could improve upon all
he had learned. In his twenty ninth year
he returned to his native land and city,
and soon after put forth a volume in sup
port of his favorite theory. This was the
institution of q monster bank, which should
issue Dotes based on all sources of revenue
of the country. beld by the bank as capital,
and should derive it's profits from discount
ing. Extremely solicitous that the British
Government should adopt his plan, be WAS
surprised and angry when it refused to do
so. He pronounced the rulers of the king
dom set of dolts, declaring they had re-
Jected an ingenious and original project,
which wonld have enriched the nation be-
yond computation.
= He carried his scheme to France, Hol-
land, and Austria but not one of them,
despite his specious arguments, would con-
sent to its trial. He felt confident, however,
that some European government would ere
long discover his sagacity and accept his
Judgment. Feeling that he could afford
to wait, he devoted the intermin to diplo-
macy aud intrigue. Though by no means
handsome or graceful, he was an admirable |
talker, had naturally attractive manners
and magnetic temperament.
After the long desired death of Louis |
XIV, and the establishment of the regency,
Law returned to Paris, with q fortune Of
one million dollars the product, it is said,
of his skill and luck at hazard. The fin
ances of France being then 10 a most de-
piorable condition, the profigate gamester
had faith that he could retrieve them. He
sent word to this effect to the Duke of Or
leans, and, an interview having been grant,
I'D, he won the latter's good will and a
certain degree of his confidence.
81 am willing you should try your PLAN"
raid the regent, with his cynical humor.
You cannot do great deal harm for /
lefY the devil himself to put the kingdom
INTO a much worst state than it now en-
oys." {
Law had the opportunity he had so earn {
stiy coveted. He established bank in
ZIG, having royal authority to discount
bills of exchange and issue notes, redeem {
bile in coin of equal fineness with that of
he money then current. 1t accepted at 1
Dar government oliis, Cnougu 81 seventy =
i've per cent discount, which, with the fact f
hatscredit was we'll nigh destroyed, caused 4
ts stock to be readily subscribed for. The t
,ank mou nted to the crest of prosperity, b
'aying nprecedentedly large dividends, f
nd it's founder and the regent were re- 3
DICED. The former was not satisfied, how d
yer. He still had theories to test, one off h
hem being that the state, since there was t
o standard of prices or of money, might, b
n the basis of it's credit, as respected fu Il
ure profits, put forward a paper currency, k
nd reap great benefits therefrom. To this b
nd he set mp the West India or Mississippi b
company, founded on the plan of coloni- &
ing and drawing revenue from the French il
on this continent. 1t promised Il
o well that the French East India Com
any was soon absorbed and the combina- n
ion called the Company of the Indies. q
The nation was ecstatic. Snch financial 81
1.sor, frr,s.rn. Il