The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1882-02-16


the Regent, Duke of Orleans, the orig
inal modern Greenbacker, inspiring
him with the belief that paper might
supercede metallic currency
and give the people unbOunded conf
dence in any scheme he might propose. |
Law had the tobacco monopoly and the |
monopoly of assays for his bank; and |
the Mississippi Company, with It's 2OO,-
900 shares of 500 livTes each, for which p,
the debased Government notes were re. |
ceivpd, had the exclusive privilege OF !
trade with Louisiana and the MiSsis- |
sippi region. With everything ripe for
speculation, notes for 100000 of Hvres
were issued. In 1719, when the cOmpa-
ny's privileges were greatly increased,
and it took the title of "The Company
of the Indies," $4,000 new shares were
created to pay l20 per cent. per annum.
Three hundred thousand applications
were made, and in order to meet the
popular enthusiasm further issue OF
100000 shares of 1000 livres each, to pay
off the national debt, was made. PeO-
pie took lodgings to be near Law, and
rooms in the Rue QuincampaiX went up
to sixteen times their old rentals. A
cObbler made 200 livres a day by keep
ing writing materials and desk near
by in his stall, and a hunchback thrOve
by renting his back as a peripatetlc
writing desk. Five hundred tents were
erected in the garden of the Hotel de
SOissOns, which were taken by brokers
at 500 livTes a month. Enormous bribes
were paid to Laws servants for audien-
ces. A servant sent by his sick master
to sell 25O shares at 5000 liyres, found
that while he was on his way they had
advanced to 10000, and so pOcketed
100000. Strangers flOcked to Paris
from all parts of the world; wages
were quadrupled; provisions advanced;
an era of unparalleled luxury set in,
and specie drifted out of the country.
France hOurished like the United
States between 1865 and 1872. When
the drain of specie threatened danger
| the Government forbade any one to
have more than 800 in coin in his pos
| session or buy up precious metals and
| Jewels. In four months 3OO,OOO,OOO in
notes were added to the currency. Then
the bank stopped specie payments, and
the crash came, and Law was lucky to
be able to leave France with nothing
but his life and one diamond worth
| $25,OOO.
The next great financial trial of
France followed the Revolution of 1889.
The monarchy staggered under an enOr-
nous debt and bankrupt treasury. The
church property of the country having
been cOnfiscated to national purposes, a
paper currency, made legal tender and
bearing per cent interest, was based
on it, $80OO0,OO0 being issued in De-
cember, 1889, and $16O,OOO,OO0 in the
succeeding September. Issues followed
upon issues till at last total was
reached of 80, 100000 or 1914 per
head of the population. What this
meant may be inferred when we re-
member that we had but $24 per head
of greeubacks and national bank notes
in this country in 1866. Penal laws
were enacted to prevent the deprecia-
tiOn; six years imprisonment was de-
| creed against those who sold assignats
| for less than their face value in silver;
| to refuse to take them for provisions
was death. So great was the issue and
so useless the currency that the Gov
eTnment in 1895 was dependent daily
on what the presses had run off during
the night. Finally, when the people
were going back to barter, the Govern
ment gave up attempting to force the
deprecated paper upon them.
These are two great financial crises
in the annals of France. There have
| been in modern times several notable
runs" on banks and failures, put none
have been far-reaching in their cOnse-
quences. March 10, 1913, after the rev.
| OlutiOn of February there was such a
run ON the Banks of France that it sus-
pended cash payments, and many old
houses, including the three principal
joint stOck-stOck bankers in Paris, had
to close their doors. In February, 1861,
came the failure of Mires, the great con-
tractor, whose colossal frauds involved
so many people in ruin. In March,
1867, warlike rUmOTs on the LuXem-
bOurg question provoked panic on the
Paris BOurse, which had been sensitive
ever since SadOwa, and the plnic was
renewed October 2, when the Emperor
was reported first to be ill, and then to
entertain warlike intentions. A sharp
furry followed in more recent days the
failure of Samuel Philippart, who came
into conspicuous notice at Paris in 1874,
by creating the Banque FTancO-HOllan
daise, becoming President of the Credit
MObilier, and engaging in many other
gigantic enterprises. January 10, 1877,
he was an insOlvent with liabilities
$9,4OO,OOO. BY the 18th of July, 1879, he
had cleared off these debts and had re-
entered the Partisan world of finance
as President of the Banque EurOpenne,
with a capital which increased rapidly
from $5,OOOOOO to nearly S20OOO,OOO.
The history of French finance is most
interesting as showing the results of
rigid personal economy. In 1893 there
were "a, ,791 holders of Government OBJ
legations receiving Z, 5,222O00. In 1870
the number was / '254, ,04O, dividing $71,-
$4,000; in 1879, it had risen to $780,
933, and the annual amount of renteS
was almost $15O,0OOOC0. About so per
cent of the landhOlders of the country
are thus seen to be fund-hOlders. The
NapOleOnic wars were almost self-sus-
tanning, as the Emperor only added
$28, 100000 to the debt, though the Res
tOratiOn had to find funds for the war
indemnity of $140OOO,OOO, besides $500,
100000 for the Emigres, whose property
had been confscated, and the expenses
of the army of occupation of 10000
191s, the only instance in the financial
history of the country of loan being