The sun. [volume] (New York [N.Y.]) 1833-1916, 1892-09-18

bOO.OOO livrcs annually. Laws company Of
fered 52.0O0.000 livres, n gain which the Re-
gent held to be sufficient to Justify him In can
ceiling the contract with tho Paris brothers.
and in August. 1719. q new one was executed
with the Mississippi Company. The profits
anticipated from the farming OF these taxes
augmented the already glowing hopes OF the
stockholders. Into their TREASURY would now
pour alike tho moneys OF the taxpayer aud
those paid for foreign goods by tho consumer.
Law now proceeded to his last great fnan-
clal measure. which was intended to bring into
the development Of his system tho bulk Of the
capital Of Franco available for investment.
The amount of the national debt outstanding
ana represented by rcntes and other Govern
ment obligations. was now about 1.500,OOO.OOO
livrcs. This sum tho Mississippi Company
offered to advance to the King at three per
cont. The interest on the existing indebted
ness was. on an average. four per cent. and
there would therefore BIO a saving Of 15.U00.0o0
llvr"s annually for tho taxpayers. The advan-
tage OF such an arrangement for the Govern
ment was manifest. and tho offer was promptly
accepted. Tho creditors OF tho state were in
formed that their Indebtedness would be Mt
once discharged. aud for tho enormous sum
paid to them they must at once seek new in
vestments. 1t was. however. part Of the
scheme that an opening should be furnished
by which tho money received from the
Government could lie placed more to the
advantage OF the community and the creditors.
The intention OF tho company was. Law said.
that II tho RENTERS should invest the money
received in tho stock Of tho Mississippi Com
panp it would be offered to them at less than
its market value. To this end now shares OF
the company wcro issued to the amount of
l.oOO.OOO.O 900 livrcs. This payment. or rather
funding OF the national dobt. was m operation
when perhaps Law was forced to undertake
IN order to obtain tho farm OF the taxes. But
IL was IN accordance viii his theories and he
agreed to 1t Willingly. Its boldncss attracted
MN and its necessary result was to increase
mo speculation IN the siaros o! the Missis-
s'tri. 10 hoat such enterprises n largo
means of furnishing IL WAS ut hand No one
IN France had occasion to complain that the
volume "l currency was not sufficient for the
requirements OF business. The Government
he.d the source OF supply. and it was
'"rheu on IN n steadily increasing
stieam. mo establishment OF tho royal
phhA "aS followed by the liberal issue
Vi RaP"f money. IN mo spring OF ltIo tho
amount outstanding was over lOo.OoO,OOO
'Nrcs. IN 'uhe anu July nearly 5oo.ooo.0OO
more in DahK DIS were issued. Those who
advocated tho regulation OF the amount OF
euriencF oS III? state hau an opportunity OF
seem. tleir system IN inli operation. Enor-
NOUS Us were 'hcse ISSUES. they were modest
IN comparison WIN those required asthe de-
'~e'opheht "itAc system progressed. fort tho
"hpata'ie!eu speculation WHEN ensued the
responsibility must rest TOT large extent on
la" hiinse'i' tho"Gh the enormous rise IN the
price o! shares doubtless exceeded his eNpec-
'a'lohs ana ms desires. Ills enterprises were
crushed Under inc weight OF tho fantastic
value whirh tho public attributed to them.
In the chueaVor 10 sustain prices which an
ucipa'cu MY years Oh prosperous
MS .rt'' sche'i''s were 'rouGhC 10 speedy
rum. Law uh!ooseo inc genius OF specula-
tloh ahu II at ohce assumed q form so mon
stfoHs as 10 terfi'yIs master and tho world.
-
me shares OF the mississippi Company were
Tor some timo viewed with distrust by a COM
munlty that mad little taste for foreign ven
lures. III the spring OF i'lo. almost two years
after the organization OF the company. they
were quoted Mt about SOD livres. the par
value being 3Vo. In order to prove his own
!aith IN the stocks ana excite public conf
dence. Law made IL contract 10 take two hun
dred shares at par IN SIX months from date.
ana deposited 4V.oo" i'F"s 10 make good his
agreement oeaiihsS III futures were then al
most unknown. ana snch a venture hlled tho
pubic WIN aihnZemcht. AS Stock-jobbing
operation 'h" transaction mas Hau no parallel
in the history OF speculation. No sooner was
IL known tiat INC manager Of tho mississippi
COMPANY was WILING 10 AXE It's stock six
months hence ut Il prico almost double that
when II now conimahueu. IMAM tho price OF
shares ialioiy advanced. In May shares OF QUO
llrrcs wore quoted Mt par. In July they had
rcarhea i'oo"' "heh thc new issues were
mnd" IN september hey were selling at 3.ooO:
In November thcy reached lo.ooo. lhey soon
rose TO l-'ooo ana l'.oVo' there were many
sales ~ thoso hgures ana even higher. 1t Is
shiu thht as much az ~-o'oooii'res was paid Tor
n snare Oh "hsch lie par Naiue was QUO. rms
WAS All "''ah'e o = 7,o"' per cent. mo h'Ghest
prices were oo'alAeu III Aereinoer ana 'anu-
aFS' pu' a''Ao"sh mo mhrhe' thNh ceased 10
% advance 'hero was no rap" ue'Iihe' Hhares
iluct"a'e" oc,"'eh io'o'o ana lo'ooo llvres'
WIN some su.esat even n'sher INJURIES from
>"''i'oe'' ~. UNI, frp.""'s' ~
Such IL ISc iHIniS'eu tHe opportunity lOr