, 1875-08-21
IN Episode Of French History in thc
Early Part Of TIC Eighteenth
Century.
The Kelley System of Finance
One Hundred and Fifty
Years Ago.
How Law Inflated Paper-0urrenoy,
aud Demonetized Gold and
Silver.


aeV 4otk sur ..
John LII" was al iiltfcpia scoschnlan OF Roos'
lan''IS' commanding tasonts anu eap'''at'oE
manners lilo loved Ramo'1nB aha hnaneeFahE
was bofn NJ lo.!-ihn,o . !of'"oo-o'eu ~
pot'afy III 4izs. no pe'1oseo paper n4oaeS "aH
as good Aa Eo!d money. anu
rNnrnroo,; To DEMONSTRATE IT..
lin waa Afforded lilo best orportu,ltty possible
:, 49, IL. ,~,,o,,,,,t II, cnnaoro1 ,u ,,o ecorc
" w ~ I'e .,' , " ,.'. 49, -. 's ~
IN FRANCO Just u sno coao oi 'ne reign U. Ao"'a
NV. when tho Kingdom was thoroughly OK
la,Btcd ty tho wars Of that monarch. Tho
oountrv ,roaucd uplcr nm futolerablo load q.
80 ;,,1,at.. ,vo. o,,o.t,1 o,,, tr,to oI,u,a,
tAAsp' ~ I'a"T's we .ose"'o' ~. ~,
anushi'akcd. Louis ~ was m,hoT' anu tHe
yiousIy u!at,o tho acquaintance OF tho Regent
w1o,, In wna Du,,o tio cI,or,res and IN hin,
w. a.a ''o ,,,ras,ad s,r;,s ~ 1o,,or. ox,,o,,nd.
He W" Auolep'ea no1'o' " ie'sei8 e~to"'o
Ing his doctrines On money and trado ;
after tho sanie 1naoncr tint alr. Carey haa
antroaeou yarious public fupcsiouaties on tlIC
a,n,o .nbtccte aince our f,,yiI War bccan. In
49, A., .t.t.sat., ,a,.,. "a. ,,,1. ,,ort,i
thcso .hF' LII" ap'y seta 'o''" "'h 4"nu""'ou.a ~
doctrine. namely: fhaf h.s foefr dad property
Of a Stofc increase ii proportion 10 The quantity
OF ,uoury circulating therein md after sssort-
n, tk,ot lin r;,.cs, nsttona hnvo mt anffc,ont
sat r..a 81, ".,.I.v.,,..t - -, .,n,. T.,
elec1o 10 a"o.u '"'' o"p''!'"ei's ~ ~. sns's ~.
hhbttants, aud to carry tself tradc to tho height
of which 1t III capable. he lnuncloa on. into
encouiuma on the adyaptages OF a paper-c1cdi,
-. .,,,,.,,,.;.,,, .,,,. 1,tact
~. nupp'f",s @uns "o't"s' ,.--,
Whether a1r. Cafos ues1eed a's Viowa on THIS
subject from Mr. Law, wo do not KNOW, but
lI,ey arc rgccjsely identical with tIloBo Of Mr.
INV. slo at 1oast Inns claim to
1'""' ,n,ov1r, cr ,~rrvr,or
r'''"!,l W
Mr. La" was a'lo"ea TO NOE mp bAnN IN
franco for tlltse express objects; Firet, to Ill
crease tl,e circulation OF money secondly, to
,,. s,n,, =, +,,o ,,rooraeu If r,r.v, +I;rt1iv IN
am ensb,a ,no nsonle mora oasj1y Ia INV their tares
enhoia 'He peop'o 1no.o oae.t ~ 10y sas'i saAes,
Ibis l}anA had capital Of sl.tot,ooo OF Solid
coin as A basis for ita Operations, and 1t was
startod on tho cxplc!. ground Of tetleeming its
,o.ucu fr cor nj ,,a th.u ,txe,l roro Vnriona
's"e' - ~oA =, ~
othos s'elo lee"'a'lo"s "eio ea'ap'sHeu u se-
euro it, and sccuro the public nEais1st dsRster
from, ita operations. mud especially AgainBt tue
arbitrary n,,ctco than nrcyailinp nr VARYING thu
ntn,,,1.r5 ~ tho ,o ~ tho ,v;lI ~ tha rnonsro
1sN,', ~ , '"o se ~. NJ ~" ~ ~.
II VIII Do observed tl"t mr. Ia" oegan ms
operations OIL the most conservative principles
Of tlnancp, while our advocates OF an unlimited
oonor, ,c;rcn1,t;o, borin where lie left ofY. in
soS'fAfal"1 AND ,,.4,r''v rsSt''oAo"A"'4o 0ASA-
"aFles'
Mr.. Lava lfanK Was very SUCCESSFUL Tor hoaf'Y
twu yeara, whou tho ReGont, observing its ad-
YauthQa8. took 1t INTO tue King hB1t3B, GYtA4-
,..l,oI tranohoa in all tle ,r,rrin,, ct,oa oy n,
,.e ,.:'1S.. ..... -. T,'".... 60,
h!neaotn' a"a ua'oeo AK, Ii" DHsc'ot-depesa'
OF wlat now boeaHo tho Royal Iank It rap!diy
Increased ita paEer-monoy iasucs, but nlgays OIL
thc basis Of spccle-poymen.s.
THO Bank lid uot beop long Under wav vhon
Law bogat, to lay open that stupeudous pruirct
ho had long mpJ,tatct. known as tho Misainsipp[
Scheme. iL,s was q cotnuereisl company. cro-
atoI Under tho usmo Of tbs ComnsuY or tho
Wcst, to Which was granted tho whulo OF tho
tt,o1, FroncL Province Of Louisiana. Ills uroy.
inca was rep,eseutea to be no. only a rich
md fartI1o nrr;cnltural ro::on. cannnIa nj
nj sorts Of pFoductiou. hut also ~ abou,d-
ino in aoltl Ind silver II vas granted to thu
~ 1:Hnnany ~ .'' hv liza Kiup and c6nyerted into
NJ Sta.e n anrt of l.redeamablo rrconhhck. thar
worth ahout sjO on lin hu,dreds Int rocnvnhIo
1t par in payment for shnrcs,
wero hero heli OUT Tic 1irss WEI tLo conyer-
zion of rrousIy-jepreciatod national security
Intn tho s,,Srea al au uctiyo and nrnniaing Eom.
nanv :ri,o aeroud was Tim n,aitin,. 81 sto.,
| rList xvna Torrasentc,I Ia ho fnhninua,v vetr,.
n,,Ie ".1.1 ""S ''f'9~ ~ &AN0"''' 'A'o'
"DT, ~. Amt aract x,s IN rsn,a,, onh,r,o .ho