The times. [volume] (Richmond, Va.) 1890-1903, 1893-01-08
THE MTSSISSIPPISCHEME
aowJoRNLAWCo CONFUSED FRANCE
NEARLY TWO CENTURIES AGO.
An Old Time Napoleon OF Finance Spec
ulatton wilder Than tho widest
Land Rooms Of Modern Times.

of the record OF disgrace and disaster. OF
yenality and crime. Of regulations de-
stroyed by greed and Of great names bar
tered for gold. Memories of Credit Mo-
biiier and thoughts of the Mississippi Bub-
BILE come 10 us, and we wonder II. Ia all
The history Of swindling from the day
the Israelitcs spoiled the Egyptians Of
their silver and gold until that day me-
fnorable as Black Friday. when gold was
king and the greed Of gain brought thou
sands to ruin. there ever was O scheme OF
fraud as gigantic as that OF the Panama
piunderers. Probably in this century there
has not been anything to equal II, but IN
DAYS agone there was n scheme OF fraud
ulcnt fnanciering compared with which
that OF the Panama people was mere
case OF petit larceny. The name OF the
chief actor in these most gigantic imam
cial operations was John Law.
TO call this man Napoleon OF finance
would be a sort Of snachrouism, for he
fiourished before Napoleon was known.
In his battles and victories in the field
of finance. however. his ambition, AL
dacity and perseverance were as those of
the conqueror Of Europe in the field Of
blood carnage and conquest. Inere was
parallel also in their disastrous ENDS.
In the extent Of the monetary trans
actions Of our own Napoleon Of finance,
and even OF the late Wizard Of wall
Street" neither Of these men would have
cut anything but a poor figure alongside
of John Law. He was a gambler, a liber-
tine. a convicted murderer and an escaped
convict. and yet he ruled France for
time more surely than did the king. The
national treasury was i'm his hands. The
savings OF the poor and the surplus Of the
rich alike paid him tribute For years all
he touched seemed to prosper. He was
crourted by princes and dukes and the
money-lenders and bankers of Europe
bowed the knee before him. When he
asked the public 10 subscribe a sum
equal to hundred million dollars 10 one
OF his projects, he got 1t in a day; and
men literally fought for the privilege Of
subscribing.
The notes issued by his bank were ut a
premium. The people preferred them to
the coin of the realm. Yet this man died
an exile and pauper execrated by the
same people who had cheered him in the
days of his prosperity and power.
John Law was a Scotchman, born in
1911. His father had made a fortune as a
goldsmith. and had bought an estate
ton and Lawriston. Young Law was
brought up as became the son Of a coun-
try gentleman of his time. He was edu-
Gated in Edinburgh. and when he left col
iege was considered the handsomest mal
and the most accomplished gentleman in
Edinburgh. He mastered the science of
mathematics. and knew all that was then
known of political economy. Before he
was Of age he showed decided ability in
matters financial and succeeded in Dor
rowing money from all his acqunintances
payment TO be made when he succeeded
10 the estate left him by his father, who
died when John was fourteen years OF
age.
When John Law became OF age Edin-
burgh was too small for him. He went
to London, where for time he lived a
very fast life. At the green table he was
q successful plunger. He was very popu-
lar with men, for he was nervy loser
at cards and generous with his money
when ne won.
With the ladies he was said TO be al
most Irresistible. One OF his numerous
intrigues led TO duel between him and
man known rs Beau Wilson.
Law killed Wilson. was tried for MUIR
der found guilty and sentenced to death.
He had influential friends who succeeded
In having sentence suspended. Law es-
capped from the Kings Bench prison in
january, 1896, and fled TO the Continent.
He spent the next four years in Paris,
Rome. Amsterdam. Genoa and Venice,
where he studied the fnarciai and com
mercial customs OF these cities.
At this time he was enc of the greatest
gamblers IN Europe. He owned sc eral
gambling establishments. and was very
successful. He was calculating. cold
blooded and imperturbable, characteristics
essential TO success in gambling.
Play was fashionable then. 1t was not
considered improper to "open q game" in
the houses Of the most aristocratic, and
large sums were won and lost in the
salons of the leaders of fashion and men,
bers OF the court.
Law often ran a faro bank at such
houses as that OF Poisson, the great
banker. He was on terms of equality
with his host, and the best people con-
sidered II favor TO have him come 10
their houses and keep the bank on festive
occasions. He was on intimate terms
with the Duke Of Orleans, who was after
ward regent on the death of Louis XIV.
His good fortune at cards and his success
with some OF the Partisan ladies made
him many enemies. His enemies COM
bined against him. with the result that
the police gave him twenty-four hours to
leave France. He went TO Genoa; but
for the same reason he found IL judicious
to depart hurriedly from that city. He
then went TO Germany, and for several
years led the same rapid life as before.
At this period he was the friend Of the
King OF Sardinia, the Duke Of Burgundy
and other high personages. who gambled
with him and borrowed money from him
right royalty.
John Law was forty-four years OF age.
and had q cash capital Of half n million
dollars when Louis XIV. died. The Duke
OF Orleans was regent, and the finances OF
France were in depiorabie condition.
The national debt amounted TO over two
thousand million livres-equal TO about
seven hundren million dollars. There was
nothing I'm the treasury. The expenses
of the government were greater than the
amount OF the revenues. although the peo-
pie were being taxed almost beyond en-
durance.
National bankruptcy was suggested but |
the Regent would not agree to this. The
State debt was. however. revised" In |
terest bearing notes for about one-third
the face value OF the notes were given |
TO the creditors but as the creditors had |
no assurance that the notes would not |
also be revised. these new securities fell |
at once forty TO fifty per cent.
Then the coinage was debased some |
forty per cent. so II creditor settled in |
full with the State by accepting a note |
for one-third the amount OF his claim. |
then sold the note at discount of forty |
per cent. less than its face value, II could /
hardly be expected that he would hurrah |
himself hoarse for the government
At this crisis John Law appeared on the |
scene, and was warmly welcomed by the |
Regent. Law proposed financial scheme |