The Worcester spy. [volume] (Worcester, Mass.) 1898-1904, 1899-04-02
ed. and in IT'S a war broke out with

ed, and in 171S a war broke out with
Spain,
In the spring of 1920 came another
dazzling proposition In regard to the
debt, which was accepted though the
Bank of England submitted a counter
proposition, and Walpole and other
long headed leaders protested against
1t. The shares rose to $50 in April, 10
$50 in May, and 800 in June, and finally
reached 1000, falling to 400 a month
later, A mania for gambling seized the
nation. All kinds of companies were
organized. After a time there came
alarm and panic. Directors sold out
and many absconded to secure ill-got-
ten gains. Parliament was hastily con-
vened, and measures were taken TO
punish the authors Of the public cal
amity, for it was proved beyond CONTRA
diction that the company had not been
honestly conducted
Law, in the Mississippi scheme, pro-
posed to develop the then French pro-
vince Of Louisiana and the country bor-
dering on the Mississippi. The Com
pagnie des Indes OccidentaIes was in
corporated with a capital of 100000
shares of 500 hvres each. The shares
were eagerly bought. In 1119 the COM
pany bought the monopoly of trading
to the East Indies and the south seas.
Fifty thousands additional shares were
created for which there were 100000 ap-
pllcants. All classes now gave way to
a rage for speculation and the shares
rose to an enormous price. Trade in
Paris was stimulated to phenomenal
extent, The great increase of paper cir
culation caused some Spectators TO
take alarm. Paper and shares were
converted into gold and secretly sent
to England and Belgium for security.
Gold and silver became scarce. There
was a run on the national bank and the
Mississippi stock began to fall. Law
was now councillor Of state and comp
trOlier- general of finances, but he could
not restore the public credit. The
bank stopped payment in July, 1920,
with which the company had before
been amalgamated. Law fed from
France and the storm. A share in the
scheme fell to "a livres. Much of the
paper in circulation was cancelled and
the rest converted into "rentes' at
great loss. Law died in Venice poor
and forgotten.
Francis Barring, James Rothsohild
and others combined in a speculation
to purchase all the sugar in France and
the stock in the colonies of Martinique
and Guadalupe. The French sugar
rednefs refused to buy at the advanced
price, and sugar began to arrive that
had been smuggled into the French
from neighboring English colonies.
There was a sudden decline in prices
and a failure Of some of the operators.
NNholas Biddle, who in his day was
considered the first financier in Amer
lea, when president Of the United
States bank, organized great specu-
lation in cotton. In 1887 he sent per-
sons to Charleston and New Orleans
to buy enormous quantities of cotton,
on the banks account, and to ship it to
Liverpool and Havre. He sought TO
control the European cotton market
through his bank influence.
"IIe was urged to this" says writ
err, by the uncertain position Of Amer
lean credit in the European markets,
because the central point of this COM
nercA was London. where the imports
of manufactured goods from France
had created deficit for Americans of
from $4,000 900 to $15,0O0,00 Add to
this S13, 900, 900 of interest on debt of
1924 O06, 648, borrowed by the various
states on their own responsibility. IN
carrying out this project less was
thought Of a possible rise in cotton
Than of losing s27 900, 900, to be annually
paid in Europe The rise Of single
penny on the pound on $4,000 bales of
$50 pounds each (the quantity fur
uished by the crop of 1837-SS) would
have made difference of $11,5O0 900;
the rise of a second penny would re-
duce the trade balance against the
states to almost nothing.
The first year this colossal specula-
ton did very well, but later money be-
came tight in England, interest rose
and there was a dearth Of breadstuffs
The spinners used only 1850 bales of
cotton per week and prices went down.
Who is there of that time that does
NOT remember the Black Friday in
wall street? The shock of it is felt
vet. although it occurred 30 years ago.
II was an attempted Corner in gold.
For months a clique Of men, OF which
the late James Fisk, Jr., was one,
manipulated the market with great
success and controlled all the gold in
the markets and banks. They held
forty millions when they commenced
bull operations in the early part Of
September, 1869. They bought gold at
lao and down to 1914 and realized large
profits on sales from day to day
On Sept. "a there was great excite
ment on the stock exchange and in all
business circles. THE bear party at