The daily gazette., 1875-09-14


theae ISSUES in turn, under the speeu-
iative impulses of the hour, doubled
even This eXtravagant price; so that at
,ast snare OF the company, whose orr
CANAL nominal value was s125 thoupb
hy being paid for in bills of State thew
cost the first purchaser only $40
changed hands in enormous ousntities
at ~ 500 a shace. OF course. everv-
body's head was turned. Dividends
were declared out OF the profits OF
these paper currency operations of the
bank ahd the company TO the satisfsc.
tlon of the shareholders, but these
We're but small in comparison with ths
anticipated fabulous profits of the
1.ture. The cupidity excited by these
PFC sPects, and especially by the pro-
dlBlous fortunes acquired by the orr
! 9inal proprietors of shares, was such
az no nation ever before witnessed. A
universal infatuation occupied the
whole kingdom, from the lowest of the
people up 10 magistrates, prelates, and
prlnces. Hundreds OF the first quality
OF France thronged about Mr.. Laws
uoors IN pursuit Of shares in his great
enterprises. The frenzy prevailed 50
Tar that the whole nation clergy, lsity
peers and plebelans, statesmen, priu-
cess and ladies, all who could procure
! money for the purpose, turned stock
/ lnbbers. And The money was moi
! difficult to be had. The bank in q
manner that would delight Mr.. Carey's
and Mr.. Kelley. heart issued Il in i'm.
moderate quantities at low rates of In
terest. running down a. low as two
, Per cent. pen aunLm TheGoyernment
? ~ a,
! bo'h the company aud the bank AND
rs We say bJ 'he sreenbacks, the whole
wealth OF the nation was pledged 70,
ne redemption of their obligations
, Nothing could be npon hrmer basis
III tue eyes OF paper money men than
all these operations. They rested upon
. thc foreign trade, the G0yeTnmen;
! lHlh. tue national resources, ana upoE
AL the Internal revenue of the State.
! Mr.. Law and the Regent held the hiyh.
+ c5t tone In regard to the s9lidity OF the
( new.iound prosperity af France They
] adopted hostile attitude toward Eng.
+ land, and especially the old fashioned
money notions of that kingdom. The
( eminent Lord Stair at nat time Am
blSsaddr OF England Al the French
court, was driven home in disgrace on
| account Of his misunderstanding Laws
schemes and financial operations Law
proclaimed his own invulnerability,
and declared he would set FrsnCe
higher than ever She was before. He
! declared he could ruin the trade and
credit Of England and Holland when
ever he pleased and could break the
Bank Of lngland and the East India
! Company whenever he had Il mind -
J lie told Pit he would bring down the
price of East India stock at his pleas.
! urc, and actually entered into articles
to sell hiuI half amilion dollars worth,
at eleven per cent. below It's current
value.
Even the British Ministry became
alarmed at Laws great power and the
apparent success of his scheme, ana
they sacrificed Lord STAIR 10 their ap-
prehcusious, because TINS nobleman
had too much integrity and good sense
To- allow him elf 10 be carried away by
tue prevailing frenzy, or 10 bow at the
feet tpt the nC divinity Stair was
recalled and Sc into retirement. The
Immediate resu was to establish Laws
power and ANT, lrity more firmly than
ever. lie had peuly trlumphed over
! one TO-! tho vcI ableSt and most de
: serving minist Great Britain ever
sent abroad
/ 1t should not be overlooked that up
. to tins period Ot Law ; teign, the oper-
I ations Of the bank had rested upon
nominal specie basis; but when il had
issued its bills 10 double the sum of
the usual circulation, which our iuha-
tionists anu tLeoriZers think Is such g
good thing q Is, the usual and natural
effectfollowed. Prices rapidly rose TO
correspond with the increased circuls-
ton. Soon sppreheusionsw were excited
lest the paper money bubble might
burst Gre more sagscious began
TO convert I'll cir bank bills and
their company shares into gold and
silver, ana - removed the proceeds
ont OF the country. In this way con-
iidonce was slowly undermined IL the
new system Whirh Il had been with such
apparent Iapidlty carrying France "
the pinnacle OF prosperity. Meantime
the usual effects OF an excessive is
sue OF paper money continued TO show
themselves. Money circulated in.the
utmost profusi0n. People indulged in
every species OF luxury, notwithstand-
ins the excessive rise in the price of
every commodity. Strangers Hooked
tp Paris To speculate In shares ano
stock, ana it was computed that 300
} foreigners were In that city in
November, 1913 This unnatural state
OF things swelled the apparent pros
peritY enormously, and vastly increased
expenditures ana pronts. The rise
OF prices made everybody suddenly
rich, and thus relieved taxation, and
tilled the exhausted nations! treasury
To overliowiuc. The King paid his
debts, taxes were reduced, the ahund-
ancc of money sunk the rate of interest,
crushed the usurpers, raised up stately
e1Hees in town and country and re-
paired estates and houses falling 10
ruin. An these prodigics OF improve
Hlent were the fruit Of Laws system.
Was il any Monder that people be
lievcd that the easy Way 10 national
and individual wealth Was through the
issue of an endless supply of paper
money, or that even conservative