The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-11-22
f[~ HE Mississippi Bubble" a
historical romance by Emer
son Hough that is now en-
Il PERTAINING readers of T h e
a r our n a / has a special in

son Hough, that is now en-
Il tertaining readers of T h e
Journal, has a special in
terest at the present time. !
John Law, the principal character of the |
story was a magnificent promoter" a |
predecessor, worthy or unworthy. OF the
fnanciers that have recently perturbed
the American mind. His career is one OF
the marvels of fact. His Mississippi |
scheme for making France and we'll nigh
every Frenchman wealthy without labor
was perhaps the most glorious and the
most ruinous of popular decisions.
Law was born in Edinburgh. Scotland. |
April 81. 1871. He was the eldest son of
a goldsmith and money changer, who
bought the large estate Of Lauriston,
which John inherited. At the age Of 20
Law settled in London, and soon became
prominent in financial circles. though ad-
dicted to gambling and dissipation. He
killed in duel the brother of a young
lady whom he had deceived. Law was
thereupon condemned to death, Q693) but
he escaped from prison and took refuge
in France, travelling thence into Italy and
Holland. He was for some time connected
with banking house in Amsterdam.
Returning to Scotland, he published
pamphlet advocating a state bank, but
as the project met with no favor at home
he presented it to the French govern
ment, with the same result. He held that
a paper currency based on land instead
Of the precious metals. would supply n
medium Of exchange far better than that
in actual use. Wealth depends upon
commerce. he wrote, and commerce de-
ponds upon circulation By his device of
q land bank and paper currency an
amount sufficient for all the needs Of
circulation could at any time be readily
obtained. He did not. in his Proposals
for Supplying Nation with Money, and
in his earlier writings. advocate mere fiat
money, but maintained that the currency
must be based on values. His plan, If
adopted. however, would have led to a
serious imitation. Another pamphlet was
issued on the same subject in 1905,
The "Rubble" Launched.
For several years Law lead wandering
life in European capitals, gaining large
SIMS at the gaming table, until the death
of Louis XIV, mills, opened a field for
his grand scheme. France was then bur
dened with an enormous debt, and the
lregert caught at plan which promised
unlimited gain to the state. a private
general bank under Laws direction. with
a capital of 100000 livres t$l.20O,ooo)
was chartered by letters patent of May 2,
1915 and was managed with SUCH pru-,
dence as to gain the public confidence.
Laws course seems at first to have sDeen
judicious and conserva tive. me pahR
supplied a, currency at once safe and con
venient, and in April I'LL, the government
CocTeed InaL Law 8 nOIeS UC CIV
cepted in payment Of imposts. e.
Another feature was added to the
scheme in August, 1717, by the formation
OF the celebrated Mississippi or West In
t1ia company, with capital Of 100,000,OOO
liyres (s20,0 00,000), q monopoly of trade
with Canada. and sovereign rights over
the Territory of Louisiana, which was to
be colonized upon a$vast scale. By royal
edict of Dec. 4, 171S, the general bank was
transformed into a royal bank with Law
as director and the king as security An
other edict of May, 1719,: conferred a mo-