Evening star. [volume] (Washington, D.C.) 1854-1972, 1920-12-12
Bubbles Backed Sners Robbed

! Actions We're threatened in all the
courts. but no action MAS considered.
The courts regarded ALI the trans
actions between these buyers ana
sellers as a system of gambling. The
matter Was taken to the provincial
council at the Hague, but to no avail
No court in Holland would touch
tulip case. refusing on the ground
that debts contracted in gambling
were debts at all.
There was no redress from any
source and it was years before Tn.
country regained it's former state OF
! prosperity.
All this bitter experience never
dampened the ardor of the Iutch
for the tHiip. ~rhe- descendants OF
those who suffered such severe losses
in tulip, speculation are stili loSai
above all flowers and continue TO
pay higher prices for rare varieties
than any other people.
DOUBTLESS the most gigantic and
far-reaching. money-mad scheme
of which we have any record. and
whose golden age was but eight cal
endar months, was the Mississippi
, bubble.
The au hor of this monumental de-
lirium was John Law of Lauriston. a
S"otchman born in Edinburgh In 1911.
-1e received his business training in
ibis fathers banking house AID while
but mere lad was regarded as a
prodigy in mathematics. After his
fathers death he went to London
where he spent his legacy in gam
bling. His reputed wealth and his
abilities. together with his good looks.
gained him ready entrance into So
ciety. te-.,-
Law quarreled with Mr.. Wilson
about supposed affront to a Mrs
; Lawrence concerning the fit or misfit
of a slipper. Beau" Wilson chal-
lenged him. duel was fought. Beau.
was killed and Law was tried and
convicted for murder and condemned
to be hanged. He fed to the CONT
! nent. where he wandered for fourteen
years. devoting his nights to gam
bling and his days to banking affairs
Travelled. After informing himself
concerning the industrial and eco
| monte conditions. trade and resources
! of these countries. he became con-
WINGED that no country could prosper
without paper currency.
Thus equipped. he adventured into
! France and soon discovered that her
credit was gone and the country on
the verge of ruin, the result of the
reckless extravaganza of Louis XIV.
After the death of the king the Duke
of ~Orleans became regent Every
| pan devised for the countrys deliver
, ance was a, failure. Financial confu-
! sion was al it's height when the Scotch
aGventurer appeared upon the scene.
Fortified with his keen unde standing
OF the philosophy and principles iof
credit and monetary questions in all
their .ramifications. he was not long
in obtaining the notice of the regent,
who was ready to grasp a straw.
John Law explained to him that
The root of all the evil that had be-
fallen the country was owing to an
insufficient currency-that a metallic
currency unaided by paper money
would never meet the wants of COM
mercial exigencies. He proposed that
he. be permitted to set up a bank
! that would have the management of
security. That the bank would be
administered in the kings name. but
/ subject TO the control of commits
sioners that the states general would
3! same.
! Laws fame as the greatest financier
.ofSAlI time vas bruited throughout
tine. land. A. royal edict was pub
lished and Law was authorized to
establish a bank under the name of
, Law & Co. He made all notes paya-
| BILE at sight and in the coin current
at the time they were issued. His
his notes rose rapidly in popular
favor. The trade Of the country
felt the benefit. commerce improved.
taxes were paid regularly and con-
fdence was restored: Branches Of
h his bank were esta hiished a, Lyon.
Tours, Amiens and Orleans
About this tim. the famous project
which will be forever linked with his
name was proposed to the regent.
The scheme consisted. III establishing
company that should have the ex-
elusive privilege Of trading with the
. French colonies in the province of
Louisiana. on the west bank of the
great Mississippi river in North
America. Letters patent we're issued
and the company incorporated. A
specializing frenzy swept over France
| like wildfire. The country was flood
ed with paper money. Shares in the
new Mississippi project rose rapidly.
In 1919 an edict was published
granting to the Mississippi company
! the exclusive privilege Of trading
with East India, China and the South
sea colonies in possession of the
French government Tremendous