The daily gazette., 1875-09-14
Paper Against Gold.
The Interesting story of John Law
Of taursstown
/ Froot Li-N. y. Sun.

4
John Law was an intrepid gcotchmaf
- good family, commardne talents
| aad captivating maancls. He lnvef
! gambling and tinancieriug was borl
IN lbl made a tortuue-died in pen
liry in 129. He believed paper money
was a. good as gold money and under
TOOK to demonstrate it. He was af
lorded the best opportunity possible
TO try his experiment. He appeared on
| the scene in France lust at the close
! OF the reign of Louis XIV, when the
kingdom was thoroughly exhausted
| by the wars of that monarch. Thr
country groaned under an intolerable
load OF taxes, all industry was checked
and trade almost annihilated. Loui9
| Nv, was minor, and the Duke of
| orleans was Regent. Mr.. Law had
| previously made the acquaintance OF
the Regent, when he was DHke de
| Chartres, and to him he now addressed
series of letters expounding his doc.
| trines on money and trade aft ar the
same manner that Mr.. Carey has ad.
| dressed various public funCtionaries
on the same subjects since our civil
war began. In these Mr. Law ably
set forth his fundamental doctrine
| namely, that the pOtrer and pro-perih,
~ ,Ntd{e increases tH pr0p0ftt0i IL tie
4HdHNy n macy circuia.ed Heyel0
ana after asserting that the richest
lations nave not sufficient specie to
an ora illl employment 10 all their in.
bltants, sud to carry their trade 10
he height OF which it is canable he
lanchCs ont into pncomntm 1B thr
advantages at a pGpcr credit for sun.
plying that defect.
Whether Nj. Carey derived his
views on this suhi0cc from Mr, Law.
VIC 90 not know bat they are pre-.
clscIy identical With those tMr. Law.
who at least has claim to priority of
Invention.
Mr. Law wa allowed 10 ct IN. a
bahh IN France for the eApyesa Oh.
lects; First to incrC ,thc circulation
OF money secondly, to put a sion to
me PROCESS Of usuly thirdly, IL en-.
abIe the PEOPLE more easily to pay
litlr taxes. ms bank had a capital
ot ST, J0O, W of solid coin as q basis
Tor It nations, snd it was started
o" the explicit ground of rCdeeming
us ISSUES in coin at its then fixed
value. various other rid regulations
were established to secure il and
secure the public AGAR 81 disaster from
| lt3 operations, and especially against
the arbitrary practice then prevailing
OF varying the standard Of the coin ~
| tue viii OF the monarch. Ii will be
| observed that Mr.. Law began his
OPERATORS on ihc most conservative
principles OF finances, while our All.
vocate~ of an unlimited paper circula.
ton begin where he left oil. in nom
payment and openly declared ban>-
ruptcX.
Mr.. Laws bank was very success
tul for nearly two years, when the
Regent, observing its ADVANTAGES
took 1t into the ki"g's hands. establ
llshed branches in all the princip7l
Gitles OF the kingdom, and named Mr
Law, Director General of what now
became the Royal Bank Ii rapIlly
increased lis paper money issues. but
Away on the basis fsprcie payments
The bank had not been l6ng undrr
way when Law began TO lay omen
that stupendou7 project he had long
medltatcd, known AS the Missouri
income. This wa 4 commercial
company created under the name of
| the Company of the West, TO which
Was granted the whole OF the then
French province of Louisiana. This
province was represented to be not
only rich ana fertile agricultural
region, capable ot ali sorts OF product
ion, but also sabounding in gold ana
silver. II was grautedto the company
BY the hing, and converted into eco =
Geo shares, at el25 each, payable in bills
OF State sort or irredee.neble green
back. thea worth about t0rtr dollars
on the hundred out receivable at par
"a payment fjr shares. Two speculG-
tive advantages were here held our.
The first was the conversion at $
greatly deprecated national security
into the shares of an active and prom
isisg company. The second was the
acquisition Of u stock which was rep
resented 10 he tabulously valuable.
The first effect was to rapidly
enehance the market value of the bills
of State, which were demanded to nav
the large subscriptions 10 the stock.
This at once improved the credit of
the Government and put money in the
pocket of every stookholder Of the
new company. In this simple manner
the great speculation started. The
next step was further rise ii the
price of shares on the projected profits
OF the company, which already began
the payment of four per cent dividend
out OF the revenues derived from the
bills OF State and other sources.
The company at its first flood tide of
success, under the inspiring impulse
OF the speculative genius OF Law, oh |
tanned further important conc ssiars
from the Government which widened
its operations vastly, and opened new
and magnificent visions of wealth TO
the newly aroused speculative temper
of the times. 1t obtained the eNclu- /.
siye right to trade in China, the East
Indies, and the South Seas. 1t bought !
the mint from the Government; il ac.
CURED the valuable privilege of col |
lecting all the principal revenues of
the State. The company thus coneen. |
trated in itself the rich domain. of |
the whole foreign trade of |