The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1921-01-04

Americans OF To-Day are not Tic OHly
people who have sought short cuts to
wealth. 1t is a tendency as old as
money itself. Nor throughout history
have other nations shown any more
caution than modern Americans in en-
barking on ventures that promised to
bring them wealth.
What follows here is the story OF
the great mississippi Bubble, how
it was blown and how it burst, leav-
ing a nation in want and misery.
In the year 1716 there came to the
court of France one John Law, a man
of forty-five, polished and plausible,
as one would be who from the age of
II had supported himself in the gam
ing houses of Europe.
He came at good time for his
purpose. Owing to the wars of Louis
XIV and his extravagances the govern
ment was nearly bankrupt. To. the
Duke Of Orleans, who was Regent or
France during the infancy of the
Dauphin, John Law presented himself.
Soon, because of his recent successes
at the card tables, he was being talked
of as financier Of repute, though pre-
viously his reputation amongst men
had been that of a hard gambler, and
amongst WOIuen DIS d great SdlldllC
beau Law" they called him.
1t was not long before he had the
regent listening to his schemes for
the rehabilitation of Frances finances.
Soon Law was allowed to set up a
private bank of his own. 1t was sue
cessful venture. In a short time the
paper issued by him was being &C
cepted before cash in many parts Of
the country.
Encouraged by this success Law
now proposed to the regent that a
trading company should be established
to exploit, in conjunction with the
bank, the Mississippi Valley of Amer
lea. The company would have cap
ital of S2O.O0O,OOO at 500 a share, in
purchasing which government notes
for $1OO-but only worth $3O-would
be accepted at their nominal value
The launching Of the scheme had far
greater success than even Law ex-
pected Because of the stability Of
his bank people rushed to become
shareholders in the company.
Amongst them tradesmen and lab
orers clutching the savings of a life
time, dukes and duchesses, marquises
and marchionesses, counts and count
esses stood waiting outside Laws
house to register their applications
No sooner were the shares bought
than they rose in price. The COM
pany was given further trading privi-
leges in China. Law promised diyi-
dends of 120 per cent.
The regent wanted $300,O00,000 to
pay off the national debt. He sug-
gested that S3OO,OOO,O0O new shares
h. w
could have got three times the money.
From all over the country people
came to Laws house in the Rue Quin-
less wealth. Brokers came to do their
business in the street for the shares
in the Mississippi company were the
only stock dealt in now.
In the neighborhood rents rose fiji
teen fold. A cobbler got 500 a day
for leasing his booth in the street to
broker. A hunchback was paid $40
a day to allow brokers' clerk to use
his hump as desk amongst the
crowd, bidding frenziedly for shares.
Accidents were frequent. At even
ing there were riots, and soldiers
cleared the streets. For the public
safety Law had to move to the Hotel
de Scissors. In the gardens amongst
tents OF all hues and brokers CARRIED
in distinguishing colors the specula-
ton in the company's stock went on.
A frenzy for riches was on the
whole nation now-even with people
who had once scoffed at the scheme.
Law had become the most important
man in the country. He was beset
night and day by people requesting
him to allot them shares. Every trick
was tried to get a word with him, even
by peers and judges, huge brides being
paid to his servants. " One lady had
her coach upset in front Of Law and
when he came to assist her asked to