Omaha daily bee., 1884-06-09
FINANCIAL BUBBLES.
Ancient and Modern Schemes Of Ruin
and Riches.
The Mississippi Bubble of t7t0-Ar
Interesting Sketch.

1ahN
Interesting Sketch.
Cleveland Leader.
1t is said that hurry begets furry and
worry, and that in the hast to get rich,
we cripple honor and lame honesty. In
the desire to accumulate vast fortunes in
the twinkling of an eye, as it were, men
turn their back upon wisdom and stand
face to face with folly and on dangerous
heights. Each man in this age, when
things are conducted with telegraphic
speed, beguiles himself into the belief
that he holds the wonderful lamp of
Aladdin, and that by rubbing its well worn
surface he may have his most extravagant
wishes satisfied. This desire for wealth
and its accompanying power has led to
the downfall of nations. 1t has ruined
men occupying high places in history, for
once it possessesS a man, reason is power
less and all is sacrificed to gain. Rome
was great and powerful, until the luxury
borne OF vast wealth, %enervated, weakened,
and finally ruined her. The splendid, scin-
tillating sstires of Juvenal were leveled at
the habits and follies of the e%ase-loving
sensual Romans, and he boldly predicted
the beginning of the end. Lord Bacon
was a victim to the love for wealth and
luxury, and it was not until after his dis
grace through it, that his great intellect
asserted itself, and made posterity respect
and honor him. The Duke of Marlbor-
ough, the great war diplomatist and gen.
eral, put an inerasible stain on his name
by his insatiate love for gold. He car
ried his greed to surprising lengths, and
is known to have collected and kept the
pay of his officers killed in battle, but
whose death was reported inaccurately
or not at all. And to-day, how many
revere the name he left, or think of him
with anything sav contempt, despite his
services to his country2 Surely, with
such a nature he would have betrayed
his country rather than have sacrificed
wealth, 80 true it is that wealth, as well
as want, may make towards or thieves of
men.
All readers of history are familiar with
the accounts of the great Mississippi
bubble. Louis XIV, by his extravaganza
living, expensive and Improbable wars,
created a debt of three thousand millions
of %livres, and thereby laid a wide and
deep foundation for the ruin that follow
ed. He made a grant of the valley of the
Mississippi, including Illinois, to Crozat
in l7l2. This Frenchman was a mono
polist, and made the traffic between the
inhabitants Of louisiana and the natives,
and between the French and other Eu-
ropean settlers, entirely profitless. He
monopolized everything available. His
conduct led to the fermentation of difficult
ties, and since every Spanish harbor in
the Gulf of Mexico was closed to his
vessels, and all the French in the state
were hostile to him, the retrocession of
to the crown in 1717 was the
Notwithst anding the i'll fate of La
Sale, the non-success of Iberville, and
the conduct of Crozat, and although the
bones of emigrants whitened the valley,
the visions of Louisiana's undeveloped
treasurers, her mines of gold and silver,
her vast tracts of lands for cities and
plantations, disturbed the dreams of
fnanciers and blew the great bubble
called the mississippi bubble" Its
protector was John Law, a Scotchman,
born in Edinburg in 1871. He was a
gambler, %frequenting gambling houses
by night, where his playing was always
based upon abstruse calculation, and de-
voting his days to the study of the prin.
cipals of trade and finance. His pro-
posals for establishing a council of trade
being noticed, he left Scotland in dis
gust, and withdrew to the Continent,
where, as a successful gambler, he be-
came the friendand companion of princes,
and thehero and lion of the most charming
women. For fourteen years he travelled
in Holland, Flanders, Hungary, Ger.
many, France, and Italy, studying char
acter in each place, and perfecting
schemes. He was convinced that no
country could prosper without a paper
currency. His schemes and success final.
ly alarmed the officials. They consider
ed him dangerous, and expelled him from
Genoa and parts of France. He went to
Paris, but was ordered to leave, yet not
before he had made the acquaintance of
the dissolute Duke of Orleans, who prom
ised him his patronage and friendship.
Law presented his scheme of finance to
the comptroller of public funds, who
was asked by Louis XIV if Law was a
Catholic. When answered in the mega
tive, he refused to even consider the
scheme.
Law then unfolded his pet plan to the
~reigning Duke of Savory. The Duke
told him it was magnificent, too much so
indeed, for his limited kingdom and
means. He could not afford to be bank
rupted, but advised him to 80 to France,
since from his knowledge of the charact.
err of the people in that country he be-
lieved his Q and PLAUSIBLE plan would
be hailed with delight. Louis XIV. was
then dead, and Louis XVI chile of five,
succeeded him with the Duke of Orleans
as Regent. The treasury was exhausted
and the Empire on the brink of rum and
Law was cordially welcomed. He made
France believe that her condition was
not the result of her former Kings extra
yagance, but of an insufficient currency.
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