The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1901-06-19
First Aapolsan Of Financial World.

John Law was the urSC OF In0 So
called Napoleans Of finance, although
that title for obvious reasons, had not
at that time gained currency. And he
set fast pace-one which. few since
his time have been able to maintain.
There have been many limitations
since the days of the debonnair regent
and his prince Of speculation, but old
John Law was the real thing IN panic
breeders. It is extremely doubtful II
any other man has ever succeeded IN
so completely innoculating a nation
with poison of specula3in, the madness
of gambling, as did this hard-headed,
scheming, popish Scocthran during
the Eve Years from IT'S to 1720. And
modern history fails to record another
case in which such widespread ruin
was involved.
John Law was born at Edinburgh in
April, 1871 His father was gold
smith, as the bankers were called,
and Johns early education soon give
him an understanding Of the ms and
outs of financial operations. At the
age of 20 he went to London to STUDY,
but records of his life show that he
led a wild life of gambling, drinking
and love intrigues, the latter leading
to a duel, in which he killed his op-
ponent.
He fed to Holland, and then toured
Europe, spending his time in gamb-
ling and speculation. making large
sums of money, which he recklessly
souandered. In 17OS he made his first
proposals to Louis XIV in relation to
the finances of France, then IN mex,
tricable confusion, but was oroereo
out of the kingdom as suspicious
character and a Huguenot:
Laws time came IN I1!o, When Iae
death of the King placed the regent IN
control. The finances Of France were
in such condition that declaration
of national bankruptcy was seriously
considered. While this was not resorteo
TO a commission went over the CLAIMS
against the government which had ac-
c1mulated through the reckless ex-
trayagance of the old King, and cut
them down so per cent. The currency
was recoined and debased 20 per cent,
but despite all this the new certificates
of i-debtedness Immediately fell 70
per cent. Ruin stared Frnce IN the
face.
At this crisis Law bobbed up again
in Paris and presented his scheme TO
the regent, and the plan was a vast
one. As beginning Law was given
permission to start royal bank,
which was TO manage the trade and
currency of the country, collect the
taxes and free the country Of a debt OF
1900 milliards Of lives. The plan was
bitterly opposed, but Law boldly went
ahead. and the bank was 3 success
from the2frst shot out Of the box. The
capital was divided in 100 shares,
and in payment for TIM Law accepted
three -fourths in discredited debt GER
tifcates and one-fourth cash. There
was naturally a rush for shares, and
soon shares, certificates and the
banks paper were premium.
Various DEGREES gave the bangs
notes great preference, and soon so, 900, :
600 ivres in paper were IN clrc1iatlon,
with scacely sou held for ultimate
redemption. But the temporary sue
cess pleased the regent and Law was
given full swing. -.
Then he launched his Mississippi
scheme. He was granted regal PRIV
ilepes over the most fertile part OF the
United States, and the stock in his
vast enterprise went like hot cakes
the printing presses couldn't turn it
ont fast enough to supply the demand:
This scheme was no sooner. IN good
working order than Law obtained alb
xsoiute control Of, the mint and coin
age, followed soon after by the sole
authority to collect the taxes. Now he
was in a position to pay his big card
to put the capstone on his financial
shaft. The national debt was l5OO
milIirds of livres, tremendous sum for
those days. But it was about the only
profitable thing left in sight, so Law
took it over under agreement to man
age it on terms favorable to the state.
Laws complicated plan was, on q
gigantic scale, simply one Of those
bEnco stock jobbing schemes by which
every one was to make money. Law
was going to pile up such On immense
rake-of that he, in the kindness Of his
heart, would let the public in on the
deal. And the lambs hocked to De
.shorn. At each issue Of shares mobs
crowded the streets near the bank and
literally fought for chance to invest
their money in Laws certificates.
Nor was the speculation madness con-
fined to any one class of people; men
and women, lords and ladies, mer-
chants, adventures and even servants
crowded and pushed one another in
a mad struggle to reach the bank
counter. Chronicles of that time say
the sight bafHed adequate description.
The entire nation was touched by
the speculative madness. It spread
from Paris TO the provinces. Men sold
their all and fastened to the capital to
speculate until the population Of the
capital was nearly doubled. Everybody
seemed to be getting richer, and no
one poorer. Trade received a tremen-
dous but abnormal impulse. The
shares steadily climbed, until they
were forty times their par value.
And John Law-foreigner and fop-
gambler and debauche, be who had
been driven out OF London for low
intrigue and expelled from Paris as
suspicious person-rode on the crest of
the wave. He was for the moment