Arizona silver belt., 1899-05-18
SPECULATIVE SCHEMES. PAST
 AND PRESENT.

The assertion of Boston paper that the organization of the AmslRamated Copper company, in view of the enor. nous subscription ts the stock. makes it .'the greatest event in finance since the wotld began" reveals ignorance on the part of the writer of the history of financial enterprises. True, there are few as conspicuous examples of the successful floating of speculative proposition in recent years xs that of the copper trust. but there have been many of greater magnitude in the his- tory of finance.
 France has been the theater of greater financial schemes, probably, than any other country on the fAce oi the earth, and they have generally been disastrous. Among these may he mentioned the De Lesseps Panama equal enterprise, the failure of which brought rum to SD many of the French people. But more notable venture with which no recent transaction can compare in magnitude and speculative daring was the commercial scheme projected iu France by John Law, a Scotchmsn, in l7l7. which was com moply known ss the ''Mississippi Scheme" Its primary object Was to develop the resources of the province of Louisiana and the country border ing on the Mississippi, tract at that time believed to be rich in the precious metals. The conpan. WAS organized under the designation of the Com pany of the West, with 8 capital of 2OO, 900 shares of 5O0 livres each, or $46. .25O. 900. The company was given the exclusive privilege of trading on the Mississippi, forming the taxes aud eoining money.
 Afterwards the capital stock was in. creased and the scheme WAS brosiiened, the company obtaining the monopol, of trading in the East Indies, China, the South Seas and all the possessions of the French East India company. The brilliant vision opened up to tine public gaze was irresistible. 4 spirit of speculation seized sll classes and there were 800, ,oO0 applicants for the nous premium. Law as director general, promised an annual dividend of i20 percent. The public euthur iasm rose to frenzy and Laws house was besieged day and night by people anxious to invest. While confidence lasted fictitious impulse WAS given to trade, and the population of Paris in. creased several hundred thousand. Law was made councillor of state and director general of finances.
 Meanwhile the circulation of the national bank was increased as the Mississippi Scheme stock rose in value, and many wary speculators. foreseein9 crisis, secretly converted their paper and shares into gold, which they sent out of the country A run on the bank soon followed and Mississippi stock fell considerably. The amslgsmstion of the bauk and the company averted disaster for Q few months. but the bubble burst ID July I, l72D. Missis. sippi stock fell to 24 ivres, the bauk suspended payment, and Law was compelled to flee the country. Law went to Venice, where he managed to ske out wretch-d living by gambling, until his death in l729.
 While the present speculative move- ment in the United States is perhaps less chimerical, yet rsuk imitation has attended the organization of most of the gigantic trusts which have sprung into existence during the past few mouths. aud with the reaction which K sure to follow in time, the United States will be fortunate, indeed, if the greatest panic of modern times Is averted.