The times. [volume] (Richmond, Va.) 1890-1903, 1893-01-08
holder could mot lose anything. evan &

| Bdnluc generate as caSn IN payment To-
all revenues. and TO cash the banks notei
| at sight, without discount, 20 the extern
| OF any government funds they might have
on hand. This practically made ever,
custom-house and revenue Office in France
! q branch OF Laws Paris bank.
| In December, 1ll8 the State btusht thl
stock OF the General Bank, and II became
a royal bank. The stockholders received
| In silver 100 per cent more than they hac
paid for the stock some two years before
At the time that Law was running hi:
| bank there existed several French trading
companies, to-wit: The East India Com.
pany. the Guinea Company, that traded
| I'm slaves IN Africa, and the Chinese Trad
| ing Company. These companies had ex-
tensive trading privileges. but their fran
chises were Of doubtful value, as they
| had not paid n dividend for some years.
Louis XIV. had a few years before
| granted to one Antoine CroZat what In q
| modern real estate advertisement would
| be described as IAN eligible piece OF prop
erty." France then owned, or claimed
TO own. Louisiana and all the basin OF
the Mississippi and its tributaries. the
| boundaries were vague and 1t might be
described az everything out OF doors
from Alaska TO the Mexican Gulf. The
control Of all this territory was decided
to Crozat. with the exclusive rsht OF
trading in Il for sixteen years
Crozat traded in a small way Tor
few years and made an exceedingly sue
ccssful failure Of everything he tired to
do. The Louisiana Indians killed MS men
and cOnhscated his goods. lie returned
70 France disheartened. Law bought MS
privileges and rights for small sum
and persuaded the crown TO extend the
charter for twenty-four years from Jan
uary, l71S.
Law then organized the Western Com
pany (Compasnie des hides
with a capital Of one hundred million.
State notes were at a discount OF 10 per
cent. He agreed 10 take them at par IN
payment for stock. Most OF the shares
were taken up quickly, because they could
be paid for in paper that was almost
valuelcss.
Laws Western Company had the ad-
vantage over the old Eastern companies
that the Louisiana territory was almost
unknown. 1t was easy TO imagine great
stores OF treasures there. Law hired
press agent who possessed Il lively inn
agination. He put him to work In col
laboration with an artist who could draw
a uCelike picture Of the scenes that the
press agent imagined. Then he Hood
the kingdom with the results OF their
labors.
The valley OF the Mississippi was de-
scribed as a beautiful sunlit garden, where
gold and silver and precious stones ob-
truded themselves all over the landscape;
happy hunting ground. where beaver
otter and bear swarmed around the eX-
plorer and begged him to help them on
with their valuable furs, and where noble
redmen and charming Indian maidens
welcomed them with warm hearts ana
open hands. Accompanying the descrip-
tive matter were pictures of Indians
shown In the act Of swapping slab or
gold as big as a doorstep for piece OF
looking-glass, and other Indians oHeTlnS
q Frenchman handfun OF kohinOors
for a three bladed pocket-knife. a rock
of emerald was described as recently
having been uuarried near the mouth OF
the Mississippi, and a lagoon filed with
quicksilver was convincingy referred 10
as evidence of the riches Of the country.
Shares went up amazingly. Law had
publicly stated that he would make state
notes go TO par. He kept his word, ana
this is how he did It. He would accept
nothing but State notes in payment Of
stock. The demand for State notes with
which to buy shares brought about the
desired result
Law sent the engineer, Delatour' to
Louisiana and laid out the foundation
Of Orleans. with whom he was now In
high favor He obtained wonderful and
trading concessions, among
them the sole privilege Of trading and
colonizing in Guinea. the Cape OF Good
Hope. Persia, and all the isles Of the
Pacific. Japan, China and Siam.
He formed a new company based on
these concessions. The Indian Company
Ola Compagnie des lndes) II was named.
He needed specie. because he had received
nothing but State notes for the stock in
the Western Company. He issued shares
OF the Indian Company TO the amount of
fifty million, payable in specie, and OBJ
tanned a decree that no one should be al
lowed TO buy any of these shares until
he owned four times as many shares or
the Western Company.
The Western shares were now alb We par
and the rush 10 get them was tremendous.
The westerns were called mothers,
and the Indians were known as "daush-
ters."
In 1919 the company bought tobacco
monopoly, and rented the salt mines OF
Alsace. II undertook to collect all State
taxes. and paid 5O.OOO,OOO livres for nine
years right to coin money for the King
and manage the mint.
The shares Of the company trebled In
value, and printing presses were Kept
working day and night printing new
(wateredD stock. On the plea that 80 co.,
600 livres were needed to pay the State
for the coming privilege, the Council
authorized the company to issue oVoVo
more shares These new shares Were
called "granddaughters," and the MAD
scramble to get them rushed up the price
Of the mothers and daughters.
II seemed a golden age for France.
All kinds of State paper was at par and
the sun Of prosperity seemed to shine all
over the land.
Law was the master mind, the leading
spirit. in all these great enterprises He
was the idol Of the people and was hailed
as the savior of France. Money came
from the peasants petty hoard 10 buy
his shares and ancient family plate was
melted and coined to be exchanged Tor
his securities. He offered to raise $780,
900 900 livres and lend it to the Govern
ment at per cent. to pay Off the ma
tiopal debt. This offer was accepted. for
Law claimed that by his plan the state
would save annually over thirty millions
in interest.
To raise the money the company Issued
shares. the proceeds OF which. with pre-
miums, reached the enormous amount a
|. 500 900 900 livres (say s6OOOOo.O0D. All this
came from the people. and practically
passed through the hands or John Law
and ex-conVict
All France went mad In a wild delirium
Of speculation when the new shares for
the State loan were issued. The shares
were sold by auction in the Rue Quin-
campoix. a narrow street only 80 feet In
Ter 9Th.
Men fought like wild beasts in their eff
forts TO reach the place where the shares
were sold and some were trampled 10