Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1876-03-10
nEsuLrs FMOM INFLATION.
A Chapter OF History that Is Being
Sought 10 Repeat.

rational conclusions2 All, probably, have
given mp some opinions that once seemed
as reasonable as those that are now enter
taned.
But DO our statesmen Of the present day
give the subject OF Finance the proper
amount OF stuly7 "Men give me credit
fof genius" said ALEXANDER HAMILTON;
call the genius have lies just in this
when have a subject in hand, 1 study it
profoundly. Day and night il is before
me. Iexplain it in all its bearings. My
mind becomes pervaded with it. Then the
effort which make, the people please to
call the fruit Of genius. 1t is the fruit Of
labor and thought"
A gentleman ono day earnestly request
el DANIEL WEBSTER to speak in the SEN
ate on an important subject. al have not
time" was the reply; IL have not time to
master the subject, so rs to do it justice"
"But, Mr.. Webster" urged the applicant,
"a few words from you would do 80 much
to awaken public attention to IT," "lf
there be such weight in my words rs you
epresen'," rejoined the great statesman,
ait ia because 1 do not allow myself to
speak on any subject till have iinbued
my mind with it,"
This was the secret Of their power. But
our financial solons Of the 18th century do
not seem to be affected in this way.
Dut what r-e ,~isl, 80 ;...--e5uuv hUrs =,
sketch from BANCRoFT's history on inha-
tion and Impractical results. JouN LAWS
scheme was handled by STEWART l.. WooD-
FORT in his joint debate with THoMAs Ew-
ING in the late campaign with good results,
but as our readers had not the opportunity
Of hearing that discussion we introduce
BANcRoFr's own language:
Tie monopoly OF Crozat was terminated
by its surrender. The mines, and COM
merce, and boundless extent of Louisiana
were now invoked TO relieve the burden
and renew the credit Of the metropolis
The human mind is full of trust; men in
masses always have faith in the approach
Of better times; humanity abounds IN
hope. The valley of the Mississippi in
famed the imagination Of France. Antic-
ipating the future, the French nation be-
held the certain opulence OF coming ages
as within their immediate grasp; and
John Law, who possessed the entire conf
dence OF the regent, obtained the whole
control Of the commerce of Louisiana and
lCuna6a,
The debt which Louis XIV bequeathed
to his successor, after arbitrary reductions,
exceeded two thousand millions of livres,
and to meet the annual interest OF eighty
millions, the surplus revenues Of the State
did not yield more than nine millions.
Hence the national securities were of un-
certain value, and the national burdens ex-
ceeded the national resources. In this Pc
riod Of depression, John Law proposed to
the regent a credit system, which should
liberate the State from its enormous bur-
den, not by loans, on which interest must
be paid-not by taxes, that woald be bur
densome to the people-but by system
which should bring all the money OF
France on deposit. It was the faith of
Law, that the currency Of a country is
but the representative of its moving
wealth; that this representative need not
possess, in itself, an intrinsic value, but
may be made, not of stamped metal only
but of shells or pnrer; that, where gold
and silver are the circulating medium, the
wealth of nation may be Indefinitely in
creased by an arbitrary infusion of paper
that credit consists in the excess Of circula-
ton over immediate resources, and that
the advantage OF credit is in the direct ra-
ito of that excess. Applying these maxims
to all France, he gradually planned the
whlmsicaly gigantic project of collecting
all the gold and silver OF the kingdom in
| . o..
| bank, having nominal capital of six mil
| lion livres, OF which part was payable in
government notes, bills were emitted with
moderation, and, while the despotic govern,
ment had been arbitrarily changing the
value of its coin, his notes being payable
| in coin at an unvarying standard Of weight
and fneness, bore a small premium
When Crozat resigned the commerce Of
Louisiana it was transferred to the Wes
tern Company, better known as the Com
pany OF the Mississippi, instituted under
the auspices of Law. The stock of the
company was fixed at Two hundred thous-
and shares of five hundred liyres each, tc
be paid in any certificates OF public debt
| Thus, nearly one hundred millions OF the
most deprecated OF the public stocks were
suddenly absorbed. The Government thus
| changed the character OF its obligations
| from an Indebtedness to individuals, to ar
Indebtedness to favored company of il
own creation. Through the bank of Law
| the intercM on the debt was discharged
| punctually, and, in consequence, the evi
| dences of debt which were received in pay
| ment for stock, rose rapidly from depre
citation of two-thirls to par value. Al
though the union OF the bank, with the
hazards of n commercial company, was al
omen OF the fate of "the system,n public
credit seemed restored as if by a miracle
! The ill-success Of La Sale, OF Iberville
and Crozat, the fruitlessness OF the long
search for the mines OF St. Barbe, were no
torious; yet tales were revived of tho
wealth of Louisiana; its ignots of gold haC
been seen in Paris. The vision of fertile
empire, with its plantations, manors, cities
and busy wharves, a monopoly of com
merce throughout all French North Amer
lea, the certain products of the richest sill
vcr mines and mountains of gold, wer,
blended in the French mind into on'
boundless promise of untold treasure. TIL,
regent, who saw opening before him un
limited resources-the nobility, thechurch
men, who competed for favors 4rom tn
privileged institution-the stock -jobbers
including dukes and peers, marshals an,
bishops, women OF rank, statesmen anc
eourtiers-eager to profit by the suddcl
and indefinite rise of stock, conspired t.
reverence Law as the greatest man Of hi
age.
But change had taken place in the for
tunes of the Mississippi company. BY it
connection with the bank Of Law, its frs
attempts at colonization were conductet
with careless prodigality The riches
prairies, the most inviting fields in tn
southern valley of the Mississippi, wer
conceded to companies or to individual
who sought principalities in the Ne,
World. Thus it was hoped that at leas
six thousand white colOnists would be es
tablished in Louisiana. To Law himsel
there was conceded on the Arkansas on
of those vast prairies of which the wide
spreading waves Of verdure are bounde
only by the azure of the sky. There h