The morning news. [volume] (Savannah, Ga.) 1887-1900, 1900-02-25
THE MISSISSIPPI BURLE.
John Law the Prototype of Miller
of the Franklin Syndicate.

of the Franklin Syndicate.
pird S. Coler in the New York Journal.
The hope of enormous profits from in
adequate investments mas been the baited
hook by which knavery has always reaped
a rich harvest from cupidity. Over-specu-
iation and dangerous stock-jobbing seem
10 sweep over the financial centera of the
world in cycles. Bubble companies have
frequently been formed by men whose
only object was to cheat and defraud the
reople The success of one of these pro-
fects produces many imitators. The wave
gathers force, piled up by the winds of
great apparent prosperity, until the vic
TINS are washed by thousands against the
rocks-penniless
The ignorant and poor people have not
alone been dcluded into investing money
in schemes which promise a profit of 800
per cent year. Rich men-men who
have made a study of finance-have be
come imbued with the hope of large
profits and invested their fortunes in un
stable securities. The frenzy for great
gain has dragged nations to bankruptcy,
and the multitude of dupes have clamored
for the lives OF the men who cheated them
out of their wealth.
John Law, gambler, was the great
slhemer who early in the eighteenth CEN
fury created the Mississippi "bubble" The
methods of Law We're not unlike those used
by the founders of the 500 per cent. syndi-
Gates of the present day During the re-
pency of the Duke of Orleans, in IT'S,
Law found ears willing to listen to his
vast schemes to create wealth. The fin
ances of France were in a state of disor-
der and the country was on the verge of
rein caused by the corruption of officials
from the highest to the lowest grade
The Regent was asked to convoke the
States General and declare a national
bankruptcy.
Law proposed to set up bank and issue
paper currency, to be protected by the
royal revenues and landed security The
royal edict was issued on May 5, 1716,
and Law & Co" started. business with
capital of 100000 livres. Notes on
Laws bank became more valuable than
currency. The country was astonished a
the success of the institutions. Law pro-
posed to the Regent to establish a COM
pany, which should nave the monopoly of
trading to the Mississippi river where
the country was supposed to abound with
precious metals. Letters patent were is
sued and Laws promises of great gain
were believed by the people. The frenzy
Of speculation seized the nation
People of every age and sex bought and
sold Mississippi bonds. Fortunes were
made in a day. The resort of the stock
jobbers was a narrow street Laws house
was there and he was beset from morn
ing to night by dukes, marquises and
counts, with their wives. Law was the
Plutus dispensing wealth. He moved his
residence to the Place Vendome and the
mob followed him. The crush of stock
jobbers became SO great around Laws
house, so the story goes. that a hump
backed man gained considerable sums by
lending his hump as whiting desk to
eager speculate
The bubble broke in 1720. Law had been
forced by the Regent to issue millions of
worthless bonds. With no knowledge of
the science of finance he reasoned that
if 5O0,o00,000 of paper had been such an
advantage TO the country 100000 ad-
ditional would be of greater advantage.
A break came in the price of Law shares.
The shrewd stockholders started to hoard
gold and send it out of the country.
Edicts were issued prohibiting any per-
son from having over 500 in coin under
penalty of confscation. The people were
forbidden to buy up jewelry, and soon
cry of distress went up from the whole
country at these tyrannies. Law finally
fed the country and returned to his for
mer life of gambling. He died without
wealth.
The South Sea Bubble brought England
into as desperate straits financially as the
Mississippi scheme had done France.
Laws dazzling and captivating success in
epired the English financiers to try the
same game. They formed a plan to pay
off the national debt. Exchange alley
was blocked by crowds and it seemed as
if the whole nation had turned stockjob
bers. The success of the South Sea Bub-
bic started a hundred other fictitious
schemes. one company was organized 70
make deal boards out of sawdust."
Another bold adventurer started "a COM
rany for carrying on an undertaking of
great advantage, but nobody to know
what it is" This man made $4,000 in five
hours.
The government condemned these 'bub-
BILE companies" in 1920 The South Sea
scheme was finally investigated by Par
lament. 1t was found that $780, 100000 OF
South sea stock had been f1oated by the
directors, many of whom were afterward
stripped of their wealth and imprisoned
for cheating the peop1e.
Probably the most peculiar of the many
bubbles was the one started in Holland
in 1884. The people went crazy over tuhp
bulbs. Farms, houses and valuable prop
eriy was sold to buy tulips. The ordinary
Industries of the country We're neglected.
As the mania increased prices went up
and fortunes were invested in a few roots :;
$1,000 would be paid for a ''Semper Au-
EuStus' or an admiral Van der Eyk.
The steady Dutch burghers thought that
they were going to control the tulip mar
ket of the world and would make millions
Of forms.
Some absurd mistakes were made by
Strangers to the country. A sailor went
to a counting house and told the proprietor
some news. He was rewarded with fine
red herring for his breakfast. He saw a
bulb very Ike an onion on the counter,
and. thinking it out of place among the
silk and velvet stock, slipped 1t into his
rocket as a relish to his herring. The
merchant discovered his loss, and a search
showed the man-of-the-sea sitting on a
coil of rope munching the last of a $500
onion"
The prudent. after a few years, saw that
the folly could not last forever.
The tulip market slumped and a uni
veTsal panic seized the dealers. Contracts
were violated and the government had to
pass laws 10 relieve the diStresSeS of the