The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1879-09-17

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they passed on Change at 20 per cent dis
count, discounted notes and bills OF exchange
and established a vast credlt-there was no
private credit then-Whlch produced won
derful bull movement In Its stock. Associated
with this bank were two other companies. the
Mississippi and West India Company, which
| owned enormous bodies OF the richest lands
| In the world, Astounding La mines and agricul-
| tural wealth, from the product Of which the
| bank was to derive Its chief profits and capt.
| tai.
| For some time this scheme had wonder
| full success, the stock mounted up by the
thousands and the whole people were infected
with gambling mania. Law was appointed
Controller General Of the finances Of the
kingdom He was the idol OF the court and
the people But alas some hitch or plan oc-
Cured In his scheme stock began to de-
cline. Once started on the downward, 1t fell
with wonderful rapidity-until there was
violent crash, the glittering bubble burst
and stockholders and note-holders went
cunning after the whilom idolized Scotchman.
He became fugitive and spent the remain
der Of his life IN travelling from town to town;
and at last secreting himself In Venice there
died In obscurity and poverty. Here In New
Orleans In 1862, there appeared second
John Law. with banking scheme embody-
Ing the same magnificent finance ideas.
His name was Jacob Barker, a venerable eX-
Quaker, whose history is quite familiar to all
our old and middle aged residents. Jacob WAS
a Union man When Butler occupied the
city Jacob became the object of his warmest
regards. Jacob had means and Butler had
brother; that brother needed u large capital to
buy up confiscated and seized property
Jacob could help this brother In various ways.
He did help him to buy up all the cotton,
sugar and tobacco OF absent or prescribed
rebels.
But Jacob had keen relish for cent per
cents, quid pro qtos md running out of mar
ketable funds, greenbacks or Confederate
notes to supply the inordinate demands Of
Sutler Butter, he followed the example OF
Law, chose Gen. Ben as his Prince Regent,
and asked him for charter for bank, which
was promptly accorded to him In general
orders No. .
4 Jacobs bank WAS constituted on the basis
Of the assessed value OF his real estate, placed
at o million or 80 more than 1t was worth,
and on this secured certain and real basis, he
was allowed to issue notes nd ibitum.
Jacob did smashing business with this
bank. All the other banks were tied up
ashOre-Rll their specie being In the Confed-
eracy and their vaults filled with Confederate
notes. Jacob swept the city with his notes.
and drew into his Golfers all the deposits Of
those who had savings. He was especially q
favorte amor6 all the Federal officials, who
Il Rad I,l "a,
man. Jacob had newspaper which he ran
himself, and which subsequently ripened into
the New Orleans Times.
! Uninterrupted was Jacobs prosperity until
the war closed and the ''rebels'' began to
pour into the city with their ancient notions
and prejudices about banking, and their un-
worthy distrust Of Jacobs financial ability
| and their incredulty rs to the valuation OF
his real estate and the titles thereof. These
persons sowed the seeds or dstrust. from
which sprung up q plentiful crop Of tares that
choked the rich products Of the fields which
Jacob had 80 sedulously cultivated. Sud-
| denly there was a run upon Jacobs
bank Note-hoders and depositors were
seized with Violent access Of curiosity to
realize the promise OF his shinpIasters. They
crowded his bank, and manifested no little
dissatisfaction After brief effort to pay
out, Jacob sent for the police, cleared the
bank, turned out the clerks, locked the doors,
and retired to his residence on st. Mary
street. Oh what q bowling, cursing, Shrek
ing and imprecating there was for several
days around the classic corner OF Camp and
Gravier! But, alas Jacob could give no re-
lief, and his creditors took charge OF his af-
fairs and were for years engaged assiduously
In looking for the assets and real estate upon
which Gen. Ben Butler had authorized his
bank to be established. mM@@@
We have never heard or their realizing
thereform more than enough to pay the costs
OF court and the fees of lawyers.
Even these examples or the disastrous re-
suits of this system of fancy financiering ap-
pear to have lost their influence and ceased
to convey any warning to the present genera
ton. To this mOurnful conclusion have we
been driven by the perusal Of the plan which
is heralded with a grand flourish by the Plea
ytne and was yesterday solemnly presented
to our Council as an 1nfallible remedy for the
city's disordered finances; nothing could be
desired or accomplished or calculated to fur
Their and accelerate the return of prosperity, |
1T says, than this document, emanating from
representatives OF the leading interests Of cap
ital, labor and commerce.
This plan will, Of course, command the at
tention Of all taxpayers and creditors Of the
city. It will diffuse glow of hope
and make their hearts throb with I'M
accustomed joyfulness. And what is this
grand arcanium, this financial Aladdin's |
lamp, which is to bring this happy change
over our long harassed and debt-embarrassed
city,
Nothing could be simpler or more in
genious.
The key note Of the plan Is the conversion
OF the debt Of the city into an active banking |
capital-so much needed and SO difficult