News and citizen. [volume] (Morrisville, Vt. ;) 1881-current, 1882-03-02
JOHN LAWS CRASH.
LEAVES FROM THE ROMANCE OF A GREAT
FINANCIAL CRASH.

[From the Philadelphia Press.l
French finance, like French affairs,
presents some of the most stupendous
vicissitudes known in fiscal operations.
The Gallo race exceeds every other in
the system and extent OF its economies.
Were-gold to perish from the face OF ali
the earth, the stockings of the French
peasantry would prove a second Peru.
But concurrent with this thrifty secre-
tion of the peasant RACES the passion for
sudden gain. Hence, while the shrewd-
est savers and the most adroit investors,
the French are, at the same time, most
reckless and credulous speculators. The
nation has changed but little since the
colossal scheme of public stocks in
1716, when the golden vision of John
Law ended in the cataclysm of French
credit.
1t was when the horizon hung lowest
and blacklist that young Scotchman
invoked the good offices of those in the
confidence of the reigping voluptuary
to bring about a meeting. In those good
old times the ceremonial hedging the
majesty of the Prince was more potent
than the bayonets, turrets, chain-armor
and what not guarding the trembling
Czar. The young Scotchman, however,
was hard-headed, resolute under rebuff,
intrepid under calumny. He reached
Philippe in the end, as the diseased Nero
breakfasted one morning with his diver
sified harem in the Palais Royale. The
treasury empty, the finance ministers at
their wits end, john Law-for he was
the young Scotchman-gained the
Princes good will so soon as he laid his
project before him.. What was the pro-
iect? The old, old story. To make
something out of nothing. In other
words, to hypothecate the national pos
sessions and issue paper certificates
based on the common property of the
kingdom.
The fame of the project spread. 1t
was like the babble of lucent brooks
under August skies, or the balm of
sleep in the dying hour of battle, to the
nation sinking into the acute stages of
insolvency. To people despoiled by
the usury of the rich, the effect of the
young Scots apothegms may be i'm
agined, for Law inaugurated his stu
pendous schemes rather to illustrate the
democratic doctrine of the equalities in
values than to enrich either France, her
friends or himself. Indeed, of himself
he never wasted thought or preoccu-
pation-save when his life became en-
dangered by the Vaccinations of cabal.
The rationale of his projects may be
summed up in this one expression
which profoundly moved Paris: "There
is no surer sign of State rushing into
poverty than dearness of money. The
just Office of money is to give the bor-
rover, as we'll as the lender, an equal
share of all that it is capable of produc-
ing, or what may be drawn from its use
or investment. Usury, while pretend
ing to benefit the borrower, il the end
ruins HIM, and makes money a tyrant
instead of servant" Curious enough,
while the million saw the inevitable
tendency of this doctrine, the aris-
tocracy and usurers seemed to have no
conception of the route such march
must inevitably take, nor the cuL de sac
that it would bring up in.
The bank was barely opened when the
fever fell upon France. The grave
chronicles Of the time read like pages
from the Minerva romances. Not only
new idea had evoked new train of
thought, but from the Scots fervid
brain there seemed to spring new order
of man and woman kind. Law had dis
covered that amazing secret" Credit
He had touched the inexhaustible rich.
ness OF the nation. No intellect, how
ever unframed or unenlightened, but
left the glimmering of great truth
that the son of toll, as well as the capi-
talist, was to deposit his promise to pay
to the new bank, and that, holding the
national thrift as security, the bank was
to issue notes which took the place of
specie. In fortnight the most amas-
ing transformations were witnessed.