"REMOVAL.—Desiring a more central location for transacting my business, I have removed my office to No. 17 Merchants Exchange." Where? One says to West Troy, New York; another to Patterson, New Jersey; another to Bronxville, New York; another, to Salem, New-York, and so on! It is a new thing to find how central all those places are. Undeveloped metropolises seem to exist in every corner. Well, the slip ends with a notice that in future letters must be directed to the new place.

Next, as to substance. The six letters all tell the same story. They are each the second letter; the first one having been sent to the same person, and having contained a lottery-ticket, as a gift of love or free charity. This second letter is the one which is expected to "fetch." It says in substance: "Your ticket has drawn a prize of $200,"—the letters all name the same amount—"but you didn't pay for it; and therefore are not entitled to it. Now send me $10 and I will cheat the lottery-man by altering the post-mark of your letter so that the money shall seem to have been sent before the lottery was drawn. This forgery will enable me to get the $200, which I will send you."

How cunning that is! It is exactly calculated to hit the notions of a vulgar, ignorant, lazy, greedy, and unprincipled bumpkin. Such a fellow would see just far enough into the millstone to be tickled at the idea of cheating those lottery fellows. And the knave ends his letter with one more touch most delicately adapted to make Master Bumpkin feel certain that his cash is coming. He says, "Be sure to show your prize to all your friends, so as to make them buy tickets at my office."

Moreover, these letters inclose each a "report of the seventeenth monthly drawing of the Cosmopolitan Art Union Association." You may observe that one of these "seventeenth drawings" took place November 7 1864, and another December 5, 1864; so that seventeenthly came twice. What is a far more remarkable coincidence is this; that in each of these "reports" is a list of a hundred and thirty or forty numbers that drew prizes, and it is exactly the same list each time, and the same prize to each number! There is a third coincidence; that one of these two drawings is said to have been at London, New York, and the other at London, New Jersey. And lastly, there is a fourth coincidence, viz., that neither of these places exists.

Now, what a transparent swindle this is! how plain, how impudent, how rascally! And all done entirely by the use of the Post Office privileges of the United States. Try to catch this fellow. You can find where he mailed his circular; but he probably stopped there over night to do so, and nobody knew it. In each circular, he wrote to his dupes to address him at that new "more central location" that he struggles after so hard; and how is the pursuer to find it? Would anybody naturally go and watch the Post Office at Bronxville, New York, for instance, as a particularly central location for business?

Besides, no one person is cheated out of enough to make him follow up the affair, and probably nobody who sends the cash wants to say much about it afterward. He wants to wait and show the prize!

These dirty sharking traps will always be set, and will always catch silly people, as long as there are any to catch. The only means of stopping such trickery is to diffuse the conviction that the best way to get a living is, to go to work like a man and earn it honestly.



CHAPTER XXII.

ANOTHER LOTTERY HUMBUG.—TWO HUNDRED AND FIFTY RECIPES.—VILE BOOKS.—"ADVANTAGE-CARDS."—A PACKAGE FOR YOU; PLEASE SEND THE MONEY.—PEDDLING IN WESTERN NEW YORK.

The readiness with which people will send off their money to a swindler is perfectly astounding. It does really seem as if an independent fortune could be made simply by putting forth circulars and advertisements, requesting the receiver to send five dollars to the advertiser, and saying that "it will be all right."

I have already given an account of the way in which lottery dealers operate. From among the same pile of documents which I used then, I have selected a few others, as instances in part, of a class of humbugs sometimes of a kind even far more noxious, and which show that their devisers and patrons are not only sharpers or fools, but often also very cold-blooded villains or very nasty ones. Some of them are managed by printed circulars and written letters, such as those before me; some of them by newspaper advertisements. Some are only to cheat you out of money, and others offer in return for money some base gratification. But whatever means are used, and whatever purpose is sought, they are all alike in one thing—they depend entirely on the monstrous number of simpletons who will send money to people they know nothing about.

Of the nasty ones, I can give no details. Vile books, pictures, etc., are from time to time advertised, sold, and forwarded, by circular, and through the mails, and for large prices.

There have been some cases where a funny sort of swindle has been effected by these peddlers of pruriency, by selling some dirty-minded dupe a cheap good book, at the extravagant price of a dear bad one. More than one foolish youth has received, instead of the vile thing that he sent five dollars for, a nice little New Testament. It is obvious that no very loud complaints are likely to be made about such cheating as that. It is, perhaps, one of the safest swindles ever contrived.

The first document which I take from my pile is the announcement of a fellow who operates lottery-wise. His scheme appeals at once to benevolence and to greediness. He says: "The profits of the distribution are to be given to the Sanitary Commission;" and secondly, "Every ticket brings a prize of at least its full value, and some of them $5,000."

If, therefore you won't buy tickets for filthy lucre's sake, buy for the sake of our soldiers.

"But," somebody says, "how can you afford this arrangement, which is a direct loss of the whole cost of working your lottery, and moreover of the whole value of all prizes costing more than a ticket?"

"Oh," replies our benevolent friend, "a number of manufacturers in New England have asked me to do this, and the prizes are given by them as friends of the soldier."

One observation will sufficiently show what an impudent mess of lies this story is, namely;—If the manufacturers of New England wanted to give money to the Sanitary Commission, they would give money; if goods, they would give goods. They certainly would not put their gifts through the additional roundabout, useless nonsense of a lottery, which is to turn over only the same amount of funds to the Commission.

The next document is a circular sent from a Western town by a fellow who claims also to be a master of arts, doctor of medicines, and doctor of laws, but whose handwriting and language are those of a stable-boy. This chap sends round a list of two hundred and fifty recipes at various prices, from twenty-five cents to a dollar each. Send him the money for any you wish, and he promises to return you the directions for making the stuff. You are then to go about and peddle it, and swiftly become independently rich. You can begin with a dollar, he says; in two days make fifty dollars, and then sweep on in a grand career of affluence, making from $75 to $200 a day, "if you are industrious." What is petroleum to this? It is a mercy that we don't all turn to and peddle to each other; we should all get too rich to speak!

The fellow, out of pure kindness and desire for your good, recommends you to buy all his recipes, as then you will be sure to sell something to everybody. Most of these recipes are for sufficiently harmless purposes—shaving-soap, cement, inks—"five gallons of good ink for fifteen cents"—tooth-powders, etc. Some of them are arrant nonsense; such as "tea—better than the Chinese," which is as if he promised something wetter than water; "to make thieves' vinegar;" "prismatic diamond crystals for windows;" "to make yellow butter"—is the butter blue where the man lives? Others are of a sort calculated to attract foolish rustic rascals who would like to gain an easy living by cheating, if they were only smart enough. Thus, there is "Rothschild's great secret; or how to make common gold." My readers shall have a better recipe than this swindler's—work hard, think hard, be honest, and spend little—this will "make common gold," and this is all the secret Rothschild ever had. A number of these recipes are barefaced quackeries; such as cures for consumption, cancer, rheumatism, and sundry other diseases; to make whiskers and mustaches grow—ah, boys, you can't hurry up those things. Greasing your cheeks is just as good as trying to whistle the hair out, but not a bit better. Don't hurry; you will be old quite soon enough! But this fellow is ready for old fools as well young ones, for he has recipes for curing baldness and removing wrinkles. And last, but not least, quietly inserted among all these fooleries and harmless humbugs, are two or three recipes which promise the safe gratification of the basest vices. Those are what he really hoped to get money for.

I have carefully refrained from giving any names or information which would enable anybody to address any of these folks. I do not propose to cooperate with them, if I know it.

The next is a circular only to be very briefly alluded to: it promises to furnish, on receipt of the price, and "by mail or express, with perfect safety, so as to defy detection," any of twenty-two wholly infamous books, and various other cards and commodities, well suited to the public of Sodom and Gomorrah, etc. The most honest and decent things advertised in this unclean list are "advantage-cards" which enable the player to swindle his adversary by reading off his hand by the backs of the cards.

The next paper I can copy verbatim, except some names, etc., is a letter as follows:

"Dear Sir—There is a Package in My care for a Mrs. preston New Griswold wich thare is 48 cts. fratage. Pleas forward the same. I shall send it Per Express Your recpt."

It is some little comfort to know that this gentleman, who is so much opposed to the present prevailing methods of spelling, lost the three cents which he invested in seeking "fratage." But a good many sensible people have carelessly sent away the small amounts demanded by letters like the above, and have wondered why their prepaid parcels never came.

Next, is an account by a half amused and half indignant eye-witness, of what happened in a well known town in Western New York, on Friday, January 6, 1865. A personage described as "dressed in Yankee style," drove into the principal street of the place with a horse and buggy, and began to sell what is called in some parts of New England "Attleboro," that is, imitation jewelry, but promising to return the customers their money, if required, and doing so. After a number of transactions of this kind, he bawls out, like the sorcerer in Aladdin, who went around crying new lamps for old, "Who will give me four dollars for this five-dollar greenback?"

He found a customer; sold a one-dollar greenback for ninety cents; then sold some half-dollar bills for twenty-five cents each; then flung out among the crowd what a fisherman would call ground bait, in the shape of a handful of "currency."

Everybody scrambled for the money. This liberal trader now drove slowly a little way along, and the crowd pressed after him.

He now began, without any further promises, to sell a lot of bogus lockets at five dollars each, and in a few minutes had disposed of about forty. Having, therefore, about two hundred dollars in his pocket, and trade slackening, he coolly observes, with a terseness and clearness of oratory that would not discredit General Sherman:

"Gentlemen—I have sold you those goods at my price. I am a licensed peddler. If I give you your money back you will think me a lunatic. I wish you all success in your ordinary vocations! Good morning!"

And sure enough, he drove off. That same cunning chap has actually made a small fortune in this way. He really is licensed as a peddler, and though arrested more than once, has consequently not been found legally punishable.

I will specify only one more of my collection, of yet another kind. This is a printed circular appealing to a class of fools, if possible, even shallower, sillier, and more credulous than any I have named yet. It is headed "The Gypsies' Seven Secret Charms." These charms consist of a kind of hellbroth or decoction. You are to wet the hands and the forehead with them, and this is to render you able to tell what any person is thinking of; upon taking any one by the hand, you will be able to entirely control the mind and will of such person (it is unnecessary to specify the purpose intended to be believed possible). These charms are also to enable you to buy lucky lottery-tickets, discover things lost or hid, dream correctly of the future, increase the intellectual faculties, secure the affections of the other sex, etc. These precious conceits are set forth in a ridiculous hodge-podge of statements. The "charms," it says, were used by the "Antedeluvians;" were the secret of the Egyptian enchanters and of Moses, too; of the Pythoness and the heathen conjurors and humbugs generally; and (which will be news to the geographers of to-day) "are used by the Psyli (the swindler mis-spells again) of South America to charm Beasts, Birds, and Serpents." The way to control the mind, he says, was discovered by a French traveler named Tunear. This Frenchman is perhaps a relative of the equally celebrated Russian traveller, Toofaroff.

But here is the point, after all. You send the money, we will say, for one of these charms—for they are for sale separately. You receive in return a second circular, saying that they work a great deal better all together, and so the man will send you all of them when you send the rest of the money. Send it, if you choose!

Now, how is it possible for people to be living among us here, who are fooled by such wretched balderdash as this? There are such, however, and a great many of them. I do not imagine that there are many of these addlepates among my readers; but there is no harm in giving once more a very plain and easy direction which may possibly save somebody some money and some mortification. Be content with what you can honestly earn. Know whom you deal with. Do not try to get money without giving fair value for it. And pay out no money on strangers' promises, whether by word of mouth, written letters, advertisements, or printed circulars.



CHAPTER XXIII.

A CALIFORNIA COAL MINE.—A HARTFORD COAL MINE.—MYSTERIOUS SUBTERRANEAN CANAL ON THE ISTHMUS.

Some twelve years ago or so, in the early days of Californian immigration, a curious little business humbug came off about six miles from Monterey. A United States officer, about the year 1850, was on his way into the interior on a surveying expedition, with a party of men, a portable forge, a load of coal, and sundry other articles. At the place in question, six miles inland, the Lieutenant's coal wagon "stalled" in a "tule" swamp. With true military decision the greater part of the coal was thrown out to extricate the team, and not picked up again. The expedition went on and so did time, and the latter, in his progress, had some years afterward dried up the tule swamp. Some enterprising prospectors, with eyes wide open to the nature of things, now espied one fine morning the lumps of coal, sticking their black noses up out of the mud. It was a clear case—there was a coal mine there! The happy discoverers rushed into town. A company was at once organized under the mining laws of the state of California. The corporators at first kept the whole matter totally secret except from a few particular friends who were as a very great favor allowed to buy stock for cash. A "compromise" was made with the owner of the land, largely to his advantage. When things had thus been set properly at work, specimens of coal were publicly exhibited at Monterey. There was a gigantic excitement; shares went up almost out of sight. Twelve hundred dollars in coin for one share (par $100) was laughed at. About this time a quiet honest Dutchman of the vicinity passing along by the "mine" one evening with his cart, innocently and unconsciously picked up the whole at one single load and carried it home. Prompt was the discovery of the "sell" by the stockholders, and voluble and intense, it is said, their profane expressions of dissatisfaction. But the original discoverers of the mine vigorously protested that they were "sold" themselves, and that it was only a case of common misfortune. It is however reported that a number of persons in Monterey, after the explosion of the speculation, remembered all about the coal-wagon part of the business, which they said, the excitement of the "company" had put entirely out of their heads.

An equally unfounded but not quite so barefaced humbug came off a good many years ago in the good old city of Hartford, in Connecticut, according to the account given me by an old gentleman now deceased, who was one of the parties interested. This was a coal mine in the State House yard. It sounds like talking about getting sunbeams out of cucumbers—but something of the sort certainly took place.

Coal is found among rocks of certain kinds, and not elsewhere. Among strata of granite or basalt for instance, nobody expects to find coal. But along with a certain kind of sandstone it may reasonably be expected. Now the Hartford wiseacres found that tremendously far down under their city, there was a sort of sandstone, and they were sure that it was the sort. So they gathered together some money,—there is a vast deal of that in Hartford, coal or no coal—organized a company, employed a Mining Superintendent, set up a boring apparatus, and down went their hole into the ground—an orifice some four or six inches across. Through the surface stratum of earth it went, and bang it came against the sandstone. They pounded away, with good courage, and got some fifties or hundreds of feet further. Indefinable sensations were aroused in their minds at one time by the coming up among the products of boring, of some chips of wood. Now wood, shortly coal, they thought. They might, I imagine, have brought up some pieces of boiled potato or even of fresh shad, provided it had fallen down first. They dug on until they got tired, and then they stopped. If they had gone down ten thousand feet they would have found no coal. Coal is found in the new red sandstone; but theirs was the old red sandstone, which is a very fine old stone itself, but in which no coal was ever found, except what might have been put there on purpose, or possibly some faint indications. The hole they made, however, as my informant gravely observed, was left sticking in the ground, and if he is right is to this day a sort of appendix or tail to the well north-west corner of the State House Square. So, I suppose, any one who chooses can go and poke down there after it and satisfy himself about the accuracy of this account. Such an inquirer ought to find satisfaction, for "truth lies in the bottom of a well" says the proverb. Yet some ill natured skeptics have construed this to mean that all will tell lies sometimes, for—as they accent it, even "Truth lies, at the bottom of a well!"

Still a different sort of business humbug, again, was a wonderful story which went the rounds about fifteen years ago, and which was cooked up to help some one or other of the various enterprises for new routes by Central America to California. This story started, I believe, in the "New Orleans Courier." It was, that a French Doctor of Vera Paz in Guatemala, while making a canal from his estate to the sea, discovered, away up at the very furthest extremity of the Gulf of Honduras, a vast ancient canal, two hundred and forty feet wide, seventy feet deep, and walled in on both sides with gigantic masses of rough cut stone. The Doctor at once gave up his own trifling modern excavation, and plunged into an explanation of this vast ancient one, as zealously as if he were probing after some uncertain bullet in a poor fellow's leg. The monstrous canal carried him in a straight line up the country, to the south-westward. Some twenty miles or so inland it plunged under a volcano!

But see what a French doctor is made of!

Cutting down the great, old trees that obstructed the entrance, and procuring a canoe with a crew of Indians, in he went. The canal became a prodigious tunnel, of the same width and depth of water, and vaulted three hundred and thirty five feet high in the living rock. Nothing is said about the bowels of the volcano, so that we must conclude either that such affairs are not planted so deep as is supposed, or that the fire-pot of the concern was shoved one side or bridged over by the canallers, or that the Frenchman had some remarkably good style of Fire Annihilator, or else that there is some mistake!

Eighteen hours of incessant travel brought our intrepid M.D. safe through to the Pacific Ocean; during which time, if the maps of that country are of any authority, he passed under quite a number of mountains and rivers. The trip was not dark at all, as shafts were sunk every little way, which lighted up the interior quite well, and then the volcano gave—or ought to have given—some light inside. Indeed, if the doctor had only thought of it, I presume he would have noticed double rows of street gas lamps on each side of the canal! The exclusive right to use this excellent transit route has not, to my knowledge, been secured to anybody yet. It will be observed that ships as large as the Great Eastern could easily pass each other in this canal, which renders it a sure thing for any other vessel unless that shrewd and grasping fellow the Emperor Louis Napoleon, has got hold of this canal and is keeping it dark for some still darker purposes of his own—as for instance to run his puppet Maximilian into for refuge, when he is run out of Mexico—it is therefore still in the market. And my publication of the facts effectually disposes of the Emperor's plan of secrecy, of course.



IV. MONEY MANIAS.



CHAPTER XXIV.

THE PETROLEUM HUMBUG.—THE NEW YORK AND RANGOON PETROLEUM COMPANY.

Every sham, as has often been said, proves some reality. Petroleum exists, no doubt, and is an important addition to our national wealth. But the Petroleum humbug or mania or superstition, or whatever you choose to call it, is a humbug, just as truly, and a big one, whether we use the word in its milder or its bitterer sense.

There are more than six hundred petroleum companies. The capital they call for, is certainly not less than five hundred million dollars. The money invested in the notorious South Sea Bubble was less than two-fifths as much—only about $190,000,000.

Now, this petroleum business—very much of it—is just as thorough a gambling business as any faro bank ever set up in Broadway, or any other stock speculation ever conjured up in Wall Street—as much so, for instance, as the well known Parker Vein coal company.

I shall here tell exactly how those well known and enterprising financiers, Messrs. Peter Rolleum and Diddle Digwell proceeded in organizing the New-York and Rangoon Petroleum Company, of which all my readers have seen the advertisements everywhere, and of which the former is the Vice President and managing officer, and the latter Secretary. In June 1864, neither of these worthy gentleman was worth a cent. Rolleum shinned up and down in some commission agency or other, and Digwell had a small salary as clerk in some insurance or money concern. They barely earned a living. Now, Rolleum says he is worth $200,000; and Mr. Secretary Digwell, besides about $10,000 worth of stock in the New York and Rangoon, has his comfortable salary and his highly respectable "posish"—to use a little bit of business slang.

Mr. Rolleum was the originator of the scheme, and let Digwell into it; and together they went to work. They had a few hundred dollars in cash, no particular credit, an entirely unlimited fund of lies, a good deal of industry, plausibility, talk, and cheek, considerable acquaintance with business, and an instinctive appreciation of some of the more selfish motives commonly influential among men.

First of all, Rolleum made a trip into the oil country. Here, while picking up some of his ordinary agency business, he looked around among the wells and oil lands, talking, and examining and inquiring of everybody about everything, with a busy, solemn face, and the air of one who does not wish it to be supposed that he has important interests in his care. Then he talked with some men at (we will say) Titusville and thereabouts; told all about his valuable business connections in New York City: and after getting a little acquainted, he laid before each of half-a-dozen or so of them, this proposition:

"You can have a good many shares of a first class new oil company about to be formed just for permitting your name to be used in its interest, and for being a trustee." A thousand shares apiece, he said; to be valued at five dollars each, the par value however, being ten dollars. Five thousand dollars each man, and to be made ten thousand, as soon as the proposed puffing should enable them to sell out. After a little hesitation, a sufficient number consented. There was nothing to pay, something handsome to get, and all they were asked for it was, to let a man talk about them. What if he did lie? That was his business.

This fixed four out of the nine intended trustees.

Rolleum also obtained memoranda or printed circulars showing the amounts for which a number of oil land owners would sell their holes in the ground or the room for making others, and describing the premises. He now flew back to New York, and went to sundry persons of some means and some position but of no great nobility, and thus he said:

"Here are these wealthy and distinguished oil men right there on the ground who are going to be trustees of my new company.

"You serve too, won't you? One thousand shares for your trouble—five thousand dollars. No money to pay—I will see to all that. Here are the lands we can buy,"—and he showed his lists. The bribe, and the names of those already bribed, influenced them, and this secured three more trustees. Two more were needed, namely the President and Vice President. Rolleum himself was to be the latter; his next move was to secure the former.

This, the most critical part of the scheme, was cunningly delayed until this time. Rolleum went to the Honorable A. Bee, a gentleman of a good deal of ability, pretty widely known, not very rich, believed (perhaps for that reason) to be honest, no longer young, and of a reverend yet agreeable presence. Him the plausible Rolleum told all about the new Company; what a respectable board of trustees there was going to be—and he showed the names; all either experienced and substantial men of the oil country, or reputable business men of New York City. And they have agreed to serve, in part because they know what a very honest company this is, and still more because they hope that the Honorable A. Bee will become President.

"My dear Sir," urged Rolleum, sweetly, "this legitimate business enterprise must succeed, and must secure wealth, reputation, and influence to all connected with it. We know that you are above pecuniary considerations, and that you do not need our influence, or anybody's. We need yours. And you need not do any work. I will do that. We only need your name. And merely as a matter of form, because the officers are expected to be interested in their own company, I have set apart two thousand shares, being at half par or $5 a share, $10,000 of stock, to stand in your name. See how respectable all these Trustees are!" And he showed the list and preached upon the items of it.

"This man is worth so many millions, that man is such an influential editor. Could I have obtained such names if this were not a perfectly square thing?"

Ten thousand dollars will go some ways towards squaring almost anything, with many people, even if it is a mere matter of form; and so the old gentleman consented. This fixed the whole official "slate."

Now to set up the machine.

In a few days of sharp running and talking, Rolleum and Digwell accomplished this, as follows:

First, they hired and furnished handsomely, paying cash whenever they couldn't help it, a couple of pleasant first floor rooms close to Wall Street. No dingy desk-room up in some dark corner or attic, for them. Respectability is the thing for Rolleum.

Second, they hired a lawyer to draft the proper papers, and had the New York and Rangoon Petroleum Company "Duly incorporated under the mining and statute laws of the State of New York," with charter, by-laws, seal, officers' names, and everything fine, new, grand, magnificent, impressive, formal, respectable and business-like.

Third, they now had every requisite of a powerful, enterprising and highly successful corporation, except the small trifles of money, land and oil. But what are these, to such geniuses as Rolleum and Digwell? Singular if having invented and set the trap, they could not catch the birds!

They bought about three pints of oil, for one dollar; and that settled one part of the question. They bought it ready sorted and vialled and labelled; some crude and green, some yellowish, some limpid as water, half a dozen or so of different specimens. These, in their tall vials of most respectable appearance, they placed casually on the mantel-piece of the outer office. They were specimens of the oils which the company's wells are confidently expected to yield—when they get 'em!

Last of all—land and money. Subscriptions to capital stock are to furnish money, money will buy land. And saying we've got land will procure subscriptions.

"It's not much of a lie, after all," said Rolleum, confidentially, to brother Digwell. "When we've said we've got it for awhile, we shall get it. It's not a lie at all. It's only discounting the truth at sixty days!"

So he and Digwell went to work and made a splendid prospectus and advertisement, the latter an abridged edition of the former. This prospectus was a great triumph of business lying mixed with plums and spices of truth, and all set forth with taking "display lines."

It began with a stately row of names: New York and Rangoon Petroleum Company; Honorable Abraham Bee, President; Peter Rolleum, Esq., Vice President; Diddle Digwell, Esq., Secretary; and so on. With cool impudence it then gave a list headed "Lands and Property"—not saying "of the Company" for fear of a prosecution for swindling. But the list below began with the words "the oil lands to be conveyed to the Company are as follows:" "that's exactly it" quoth Rolleum—"no lie there, at any rate. They are to 'to be conveyed' to us—if we choose—just as soon as we can pay for them." And then the list went on from "No. 1" to "No. 43," giving in a row all those memoranda which Rolleum had obtained in Venango County and the region round about, of the descriptions of the real estate which the landsharks up there would be glad to sell for what they asked for it.

The Prospectus said the capital of the company was one million dollars, in one hundred thousand shares at ten dollars each. But in order to obtain a WORKING CAPITAL, twenty thousand shares are offered for a limited period at five dollars each, not subject to further assessment.

And it added, though with more phrases, something to the following effect: Hurry! Pay quick! Or you will lose your chance! In conclusion the whole was wound up with many wise and moral observations about legitimate business, interests of stockholders, heavy capitalists, economical management, and other such things; and it bestowed some rather fat compliments upon the honorable Abraham Bee and the Trustees.

Having concocted this choice morsel of bait, they set it in the great stream of newspapers, there to catch fish. In plain terms, with some cash and some credit—for their means would not even reach to pay in advance the whole of their first advertising bill—they managed to have their advertisement published during several weeks in a carefully chosen group of about thirty of the principal newspapers of the United States.

The whole web was now woven; and Rolleum and Digwell, like two hungry spiders, squatted in their den, every nerve thrilling to feel the first buzz of the first fly. It was natural that the scamps should feel a good deal excited: it was life or death with them. If a confiding public, in answer to their impassioned appeal, should generously remit, they were made men for life. If not, instead of being rich and respected gentlemen, they were ridiculous, detected swindlers.

Well—they succeeded. So truthful is our Great American Nation—so confiding, so sure of the truth of what is said in print, even if only in the advertising columns of a newspaper—so certain of the good faith of people who have their names printed in large capitals and with a handle at one end—that actually these fellows had a hundred thousand dollars in bank within ten weeks—before they owned one foot of land, or one inch of well, or one drop of oil, except those three pints in the vials on the office shelf!

And remember this is no imaginary case. I am giving point by point the exact transactions of a real Petroleum Company.

Everything I have told was done, only if possible with a more false and baseless impudence than I have described. And scores and scores of other Petroleum Companies have been organized in ways exactly as unprincipled. Some of them may perhaps have proceeded as real business concerns. Some have stopped and disappeared as soon as the managers could get a handsome sum of money into their pockets for stock.

What the result will be, in the present case, I don't know. The New York and Rangoon Petroleum Company, when I last knew about it, "still lived." They had—or said they had—bought some land. I have not heard of their receiving any oil raised from their own wells. They have sent off a monstrous quantity of circulars, prospectuses and advertisements. They caused a portrait and biography of the Honorable A. Bee to be printed in a very respectable periodical, and paid five hundred dollars for it. They had themselves systematically puffed up to the seventh heaven in a long series of articles in another periodical, and paid the owner of it $2,000 or so in stock. They talk very big about a dividend. But although they have received a great deal of money, and paid out a great deal, I do not know of their paying their stockholders any yet. If they should, it would not prove much. For it is sometimes considered "a good dodge" to declare and pay a large dividend before any real profits have been earned; as this is calculated to enhance the price of shares, and to make them "go off like hot cakes."

I shall not make any "moral" about this story. It teaches its own. It is a very mild statement of what was done to establish an actual specimen,—and far from being of the worst description—of a great part of the Petroleum Company enterprises of the day.

It is whispered that somehow or other the trustees and officers of the New York and Rangoon do not own so much stock of their company as they did, having managed to have their stock sold to subscribers as if it were company stock. If this is so, those gentlemen have made their reward sure; and Mr. Peter Rolleum, having the cash in hand for that very liberal allotment of stock which he gave himself for his trouble in getting up the New York and Rangoon Petroleum Company, is very likely half or a quarter as rich as he says.



CHAPTER XXV.

THE TULIPOMANIA.

Alboni, the singer, had an exquisitely sweet voice, but was a very big fat woman. Somebody accordingly remarked that she was an elephant that had swallowed a nightingale. About as incongruous is the idea of a nation of damp, foggy, fat, full-figured, broad-sterned, gin-drinking, tobacco-smoking Dutchmen in Holland, going crazy over a flower. But they did so, for three or four years together. Their craze is known in history as the Tulipomania, because it was a mania about tulips.

Just a word about the Dutchmen first.

These stout old fellows were not only hardy navigators, keen discoverers, ingenious engineers, laborious workmen, able financiers, shrewd and rich merchants, enthusiastic patriots and tremendous fighters, but they were eminently distinguished (as they still are to a considerable extent) by a love of elegant literature, poetry, painting, music and other fine arts, including horticulture. It was a Fleming that invented painting in oils. Before him, white of egg was used, or gum-water, or some such imperfect material, for spreading the color. Erasmus, one of the most learned, ready-minded, acute, graceful and witty scholars that ever lived, was a Dutchman. All Holland and Flanders, in days when they were richer, and stronger compared with the rest of the world than they are now, were full of singing societies and musical societies and poetry making societies. The universities of Leyden and Utrecht and Louvain are of highly an ancient European fame. And as for flowers, and bulbs in particular, Holland is a principal home and market of them now, more than two hundred years after the time I am going to tell of.

Tulips grow wild in Southern Russia, the Crimea and Asia Minor, as potatoes do in Peru. The first tulip in Christian Europe was raised in Augsburg, in the garden of a flower-loving lawyer, one Counsellor Herwart, in the year 1559, thirteen years after Luther died. This tulip bulb was sent to Herwart from Constantinople. For about eighty years after this the flower continually increased in repute and became more and more known and cultivated, until the fantastic eagerness of the demand for fine ones and the great prices that they brought, resulted in a real mania like that about the morus multicaulis, or the petroleum mania of to-day, but much more intense. It began in the year 1635, and went out with an explosion in the year 1837.

This tulip business is, I believe, the only speculative excitement in history whose subject-matter did not even claim to have any real value. Petroleum is worth some shillings a gallon for actual use for many purposes. Stocks always claim to represent some real trade or business. The morus multicaulis was to be as permanent a source of wealth as corn, and was expected to produce the well known mercantile substance of silk. But nobody ever pretended that tulips could be eaten, or manufactured, or consumed in any way of practical usefulness. They have not one single quality of the kind termed useful. They have nothing desirable except the beauty of a peculiarly short-lived blossom. You can do absolutely nothing with them except to look at them. A speculation in them is exactly as reasonable as one in butterflies would be.

In the course of about one year, 1634-5, the tulip frenzy, after having increased for fifteen or twenty years with considerable speed, came to a climax, and poisoned the whole Dutch nation. Prices had at the end of this short period risen from high to extravagant, and from extravagant to insane. High and low, counts, burgomasters, merchants, shop-keepers, servants, shoe-blacks, all were buying and selling tulips like mad. In order to make the commodity of the day accessible to all, a new weight was invented, called a perit, so small that there were about eight thousand of them in one pound avoirdupois, and a single tulip root weighing from half an ounce to an ounce, would contain from 200 to 400 of these perits. Thus, anybody unable to buy a whole tulip, could buy a perit or two, and have what the lawyers call an "undivided interest" in a root. This way of owning shows how utterly unreal was the pretended value. For imagine a small owner attempting to take his own perits and put them in his pocket. He would make a little hole in the tulip-root, would probably kill it, and would certainly obtain a little bit of utterly worthless pulp for himself, and no value at all. There was a whole code of business regulations made to meet the peculiar needs of the tulip business, besides, and in every town were to be found "tulip-notaries," to conduct the legal part of the business, take acknowledgments of deeds, note protests, &c.

To say that the tulips were worth their weight in gold would be a very small story. It would not be a very great exaggeration to say that they were worth their size in diamonds. The most valuable species of all was named "Semper Augustus," and a bulb of it which weighed 200 perits, or less than half an ounce avoirdupois, was thought cheap at 5,500 florins. A florin may be called about 40 cents; so that the little brown root was worth $2,200, or 220 gold eagles, which would weigh, by a rough estimate, eight pounds four ounces, or 132 ounces avoirdupois. Thus this half ounce Semper Augustus was worth—I mean he would bring—two hundred and sixty-four times his weight in gold!

There were many cases where people invested whole fortunes equal to $40,000 or $50,000 in collections of forty or fifty tulip roots. Once there happened to be only two Semper Augustuses in all Holland, one in Haarlem and one in Amsterdam. The Haarlem one was sold for twelve acres of building lots, and the Amsterdam one for a sum equal to $1,840,00, together with a new carriage, span of grey horses and double harness, complete.

Here is the list of merchandise and estimated prices given for one root of the Viceroy tulip. It is interesting as showing what real merchandise was worth in those days by a cash standard, aside from its exhibition of tremendous speculative bedlamism:

160 bushels wheat $179,20 320 bushels rye 223,20 Four fat oxen 192,00 Eight fat hogs 96,00 Twelve fat sheep 48,00 Two hogsheads wine 28,00 Four tuns beer 12,80 Two tuns butter 76,80 1000 lbs. cheese 48,00 A bed all complete 40,00 One suit clothes 32,00 A silver drinking cup 24,00 ————- Total exactly $1,000,00

In 1636, regular tulip exchanges were established in the nine Dutch towns where the largest tulip business was done, and while the gambling was at its intensest, the matter was managed exactly as stock gambling is managed in Wall street to-day. You went out into "the street" without owning a tulip or a perit of a tulip in the world, and met another fellow with just as many tulips as yourself. You talk and "banter" with him, and finally (we will suppose) you "sell short" ten Semper Augustuses, "seller three," for $2,000 each, in all $20,000. This means in ordinary English, that without having any tulips (i. e., short,) you promise to deliver the ten roots as above in three days from date. Now when the three days are up, if Semper Augustuses are worth in the market only $1,500, you could, if this were a real transaction, buy ten of them for $15,000, and deliver them to the other gambler for $20,000, thus winning from him the difference of $5,000. But if the roots have risen and are worth $2,500 each, then if the transactions were real you would have to pay $25,000 for the ten roots and could only get $20,000 from the other gambler, and he, turning round and selling them at the market price, would win from you this difference of $5,000. But in fact the transaction was not real, it was a stock gambling one; neither party owned tulips or meant to, or expected the other to; and the whole was a pure game of chance or skill, to see which should win and which should lose that $5,000 at the end of three days. When the time came, the affair was settled, still without any tulips, by the loser paying the difference to the winner, exactly as one loses what the other wins at a game of poker or faro. Of course if you can set afloat a smart lie after making your bargain, such as will send prices up or down as your profit requires, you make money by it, just as stock gamblers do every day in New York, London, Paris, and other Christian commercial cities.

While this monstrous Dutch gambling fury lasted, money was plenty, everybody felt rich and Holland was in a whiz of windy delight. After about three years of fool's paradise, people began to reflect that the shuttlecock could not be knocked about in the air forever, and that when it came down somebody would be hurt. So first one and then another began quietly to sell out and quit the game, without buying in again. This cautious infection quickly spread like a pestilence, as it always does in such cases, and became a perfect panic or fright. All at once, as it were, rich people all over Holland found themselves with nothing in the world except a pocket full or a garden-bed full of flower roots that nobody would buy and that were not good to eat, and would not have made more than one tureen of soup if they were.

Of course this state of things caused innumerable bankruptcies, quarrels, and refusals to complete bargains, everywhere. The government and the courts were appealed to, but with Dutch good sense they refused to enforce gambling transactions, and though the cure was very severe because very sudden, they preferred to let "the bottom drop out" of the whole affair at once. So it did. Almost everybody was either ruined or impoverished. The very few who had kept any or all of their gains by selling out in season, remained so far rich. And the vast actual business interests of Holland received a damaging check, from which it took many years to recover.

There were some curious incidents in the course of the tulipomania. They have been told before, but they are worth telling again, as the poet says, "To point the moral or adorn the tale."

A sailor brought to a rich Dutch merchant news of the safe arrival of a very valuable cargo from the Levant. The old hunks rewarded the mariner for his good tidings with one red herring for breakfast. Now Ben Bolt (if that was his name—perhaps as he was a Dutchman it was something like Benje Boltje) was very fond of onions, and spying one on the counter as he went out of the store, he slipped it into his pocket, and strolling back to the wharf, sat down to an odoriferous breakfast of onions and herring. He munched away without finding anything unusual in the flavor, until just as he was through, down came Mr. Merchant, tearing along like a madman at the head of an excited procession of clerks, and flying upon the luckless son of Neptune, demanded what he had carried off besides his herring?

"An onion that I found on the counter."

"Where is it? Give it back instantly!"

"Just ate it up with my herring, mynheer."

Wretched merchant! In a fury of useless grief he apprised the sailor that his sacrilegious back teeth had demolished a Semper Augustus valuable enough, explained the unhappy old fellow, to have feasted the Prince of Orange and the Stadtholder's whole court. "Thieves!" he cried out—"Seize the rascal!" So they did seize him, and he was actually tried, condemned and imprisoned for some months, all of which however did not bring back the tulip root. It is a question after all in my mind, whether that sailor was really as green as he pretended, and whether he did not know very well what he was taking. It would have been just like a reckless seaman's trick to eat up the old miser's twelve hundred dollar root, to teach him not to give such stingy gifts next time.

An English traveller, very fond of botany, was one day in the conservatory of a rich Dutchman, when he saw a strange bulb lying on a shelf. With that extreme coolness and selfishness which too many travellers have exercised, what does he do but take out his penknife and carefully dissect it, peeling off the outer coats, and quartering the innermost part, making all the time a great many wise observations on the phenomena of the strange new root. In came the Dutchman all at once, and seeing what was going on, he asked the Englishman, with rage in his eyes, but with a low bow and that sort of restrained formal civility which sometimes covers the most furious anger, if he knew what he was about?

"Peeling a very curious onion," answered Mr. Traveller, as calmly as if one had a perfect right to destroy other people's property to gratify his own curiosity.

"One hundred thousand devils!" burst out the Dutchman, expressing the extent of his anger by the number of evil spirits he invoked—"It is an Admiral van der Eyck!"

"Indeed?" remarked the scientific traveller, "thank you. Are there a good many of these admirals in your country?" and he drew forth his note book to write down the little fact.

"Death and the devil!" swore the enraged Dutchman again—"come before the Syndic and you shall find out all about it!" So he collared the astounded onion-peeler, and despite all he could say, dragged him straightway before the magistrate, where his scientific zeal suffered a dreadful quencher in the shape of an affidavit that the "onion" was worth four thousand florins—about $1600—and in the immediate judgment of the Court, which "considered" that the prisoner be forthwith clapt into jail until he should give security for the amount. He had to do so accordingly, and doubtless all his life retained a distaste for Dutchmen and Dutch onions.

These stories about such monstrous valuations of flower roots recall to my mind another anecdote which I shall tell, not because it has anything to do with tulips, but because it is about a Dutchman, and shows in striking contrast an equally low valuation of human life. It is this. Once, in time of peace, an English and a Dutch Admiral met at sea, each in his flag ship, and for some reason or other exchanged complimentary salutes. By accident, one of the Englishman's guns was shotted and misdirected, and killed one of the Dutch crew. On hearing the fact the Englishman at once manned a boat and went to apologize, to inquire about the poor fellow's family and to send them some money, provide for the funeral, etc., etc., as a kind hearted man would naturally do. But the Dutch commander, on meeting him at the quarter-deck, and learning his errand, at once put all his kindly intentions completely one side, saying in imperfect English:

"It'sh no matter, it'sh no matter—dere's blaanty more Tutchmen in Holland!"



CHAPTER XXVI.

JOHN BULL'S GREAT MONEY HUMBUG.—THE SOUTH SEA BUBBLE IN 1720.

The "South Sea Bubble" is one of the most startling lessons which history gives us of the ease with which the most monstrous, and absurd, and wicked humbugs can be crammed down the throat of poor human nature. It ought also to be a useful warning of the folly of mere "speculation," as compared with real "business undertakings." The history of the South Sea Bubble has been told, before, but it is too prominent a case to be entirely passed over. It occupied a period of about eight months, from February 1, 1720, to the end of the following September. It was an unreasonable expansion of the value of the stock of the "South Sea Company." This Company was formed in 1711; its stock was at first about $30,000,000, subscribed by the public and handed over by the corporators to Government to meet certain troublesome public debts. In return, Government guaranteed the stockholders a dividend of six per cent., and gave the Company sundry permanent important duties and a monopoly of all trade to the South Pacific, or "South Sea." This matter went on with fair success as a money enterprise, until the birth of the "Bubble," which was as follows:—In the end of January, 1720, probably in consequence of catching infection from "Law's Mississippi Scheme" in France, the South Sea Company and the Bank of England made competing propositions to the English Government, to repeat the original South Sea Company financiering plan on a larger scale. The proposition of the Company, which was accepted by Government, was: to assume as before the whole public debt, now amounting to over one hundred and fifty millions of dollars; and to be guaranteed at first a five per cent. dividend, and afterward a four per cent. one, to the stockholders by Government. For this privilege, the Company agreed to pay outright a bonus of more than seventeen million dollars. This plan is said to have been originated and principally carried through by Sir John Blunt, one of the Company's directors. Parliament adopted it after two months' discussion—the Bubble having, however, been swelling monstrously all the time.

It must be remembered that the wonderful profits expected from the Company were to come from their monopoly of the South Sea trade. Tremendous stories were told by Blunt and his friends, who can hardly have believed more than one half of their own talk, about a free trade with all the Spanish Pacific colonies, the importation of silver and gold from Peru and Mexico in return for dry goods, etc., etc.; all which fine things were going to produce two or three times the amount of the Company's stock every year. When the bill authorizing the arrangement passed, South Sea stock had already reached a price of four hundred per cent. The bill was stoutly opposed in Parliament by Mr.—afterwards Sir—Robert Walpole, and a few others but in vain. Under the operation of the beautiful stories of the speculative Blunt and his friends, South Sea stock, after a short lull in April, began to rise again, and the bubble swelled and swelled to a size so monstrous, and with colors so gay, that it filled the whole horizon of poor foolish John Bull:—perfectly turned his bull-headed brain, and made him for the time absolutely crazy. The directors opened books on April 12th for L5,000,000 new stock, charging, however, L300 for each share of L100, or three hundred per cent. to begin with. Double the amount was subscribed in a few days; that is, John Bull subscribed thirty million dollars for ten millions of stock, where only five millions were to be had. In a few days more, these subscribers were selling at double what they paid. April 21st, a ten per cent. dividend was voted for midsummer. In a day or two, another five million subscription was opened at four hundred per cent. to begin with. The whole, and half as much more, was taken in a few hours. In the end of May, South Sea stock was worth five hundred to one. On the 28th, it was five hundred and fifty. In four days more, for some reason or other, it jumped up to eight hundred and ninety. The speculating Blunt kept all this time blowing and blowing at his bubble. All summer, he and his friends blew and blew; and all summer the bubble swelled and floated, and shone; and high and low, men and women, lords and ladies, clergymen, princesses and duchesses, merchants, gamblers, tradesmen, dressmakers, footmen, bought and sold. In the beginning of August, South Sea stock stood at one thousand per cent! It was really worth about twenty-five per cent. The crowding in Exchange Alley, the Wall street of the day, was tremendous. So noisy, and unmanageable and excited was this mob of greedy fools, that the very same stock was sometimes selling ten per cent. higher at one end of the Alley than at the other.

The growth of this monstrous, noxious bubble hatched out a multitude of young cockatrices. Not only was the stock of the India Company, the Bank of England, and other sound concerns, much increased in price by sympathy with this fury of speculation, but a great number of utterly ridiculous schemes and barefaced swindles were advertised and successfully imposed on the public. Any piece of paper purporting to be stock could be sold for money. Not the least thought of investigating the solvency of advertisers seems to have occurred to anybody. Nor was any rank free from the poison. Almost a hundred projects were before the public at once, some of them incredibly brazen humbugs. There were schemes for a wheel for perpetual motion—capital, $5,000,000; for trading in hair (for wigs), in those days "a big thing;" for furnishing funerals to any part of Britain; for "improving the art of making soap;" for importing walnut-trees from Virginia—capital, $10,000,000; for insuring against losses by servants—capital, $15,000,000; for making quicksilver malleable; "Puckle's Machine Company," for discharging cannon-balls and bullets, both round and square, and so on. One colossal genius in humbugging actually advertised in these words: "A company for carrying on an undertaking of great advantage, but nobody to know what it is." The capital he called for was $2,500,000, in shares of $500 each; deposit on subscribing, $10 per share. Each subscriber was promised $500 per share per annum, and full particulars were to be given in a month, when the rest of the subscription was to be paid. This great financier, having put forth his prospectus, opened his office in Cornhill next morning at nine o'clock. Crowds pressed upon him. At three P. M., John Bull had paid this immense humbug $10,000, being deposits on a thousand shares subscribed for. That night, the financier—a shrewd man!—modestly retired to an unknown place upon the Continent, and was never heard of again. Another humbug almost as preposterous, was that of the "Globe Permits." These were square pieces of playing-cards with a seal on them, having the picture of the Globe Tavern, and with the words, "Sailcloth Permits." What they "permitted" was a subscription at some future period to a sailcloth-factory, projected by a certain capitalist. These "permits" sold at one time for $300 each.

But the more sensible members of Government soon exerted their influence against these lesser and more palpable humbugs. Some accounts say that the South Sea Company itself grew jealous, for it was reckoned that these "side-shows" called for a total amount of $1,500,000,000, and itself took legal means against them. At any rate, an "order in council" was published, peremptorily dismissing and dissolving them all.

During August, it leaked out that Sir John Blunt and some other "insiders" had sold out their South Sea stock. There was also some charges of unfairness in managing subscriptions. After so long and so intense an excitement, the time for reaction and collapse was come. The price of stock began to fall in spite of all that the directors could do. September 2, it was down to 700.

A general meeting of the company was held to try to whitewash matters, but in vain. The stock fell, fell, fell. The great humbug had received its death-blow. Thousands of families saw beggary staring them in the face, grasping them with its iron hand. The consternation was inexpressible. Out of it a great popular rage began to flame up, just as fires often break out among the prostrate houses of a city ruined by an earthquake. Efforts were meanwhile vainly made to stay the ruin by help from the Bank of England. Bankers and goldsmiths (then often doing a banking business) absconded daily. Business corporations failed. Credit was almost paralyzed. In the end of September, the stock fell to 175, 150, 135.

Meanwhile violent riots were feared. South Sea directors could not be seen in the streets without being insulted. The King, then in Hanover, was imperatively sent for home, and had to come. So extensive was the misfortune and the wrath of the people, so numerous the public meetings and petitions from all over the kingdom, that Parliament found it necessary to grant the public demand, and to initiate a formal inquiry into the whole enterprise. This was done; and the foolish, swindled, disappointed, angry nation, through this proceeding, vented all the wrath it could upon the persons and estates of the managers and officers of the South Sea Company. They were forbidden to leave the kingdom, their property was sequestrated, they were placed in custody and examined. Those of them in Parliament were insulted there to their faces, several of them expelled, the most violent charges made against them all. A secret investigating committee was set to rip up the whole affair. Knight, the treasurer, who possessed all the dangerous secrets of the concern, ran away to Calais and the Continent, and so escaped.

The books were found to have been either destroyed, secreted, or mutilated and garbled. Stock bribes of $250,000, $150,000, $50,000 had been paid to the Earl of Sunderland, the Duchess of Kendal (the King's favorite,) Mr. Craggs (one of the Secretaries of State,) and others. Mr. Aislabie, the Chancellor of the Exchequer, had accumulated $4,250,000 and more out of the business. Many other noblemen, gentlemen, and reputable merchants were disgracefully involved.

The trials that were had resulted in the imprisonment, expulsion or degradation of Aislabie, Craggs, Sir George Caswell (a banker and member of the House,) and others. Blunt, a Mr. Stanhope, and a number more of the chief criminals were stripped of their wealth, amounting to from $135,000 to $1,200,000 each, and the proceeds used for the partial relief of the ruined, except amounts left to the culprits to begin the world anew. Blunt, the chief of all the swindlers, was stripped of about $925,000, and allowed only $5,000. By this means and by the use of such actual property as the Company did possess, about one-third of the money lost by its means was ultimately paid to the losers. It was a long time, however, before the tone of public credit was thoroughly restored.

The history of the South Sea bubble should always stand as a beacon to warn us that reckless speculation is the bane of commerce, and that the only sure method of gaining a fortune, and certainly of enjoying it, is to diligently prosecute some legitimate calling, which, like the quality of mercy, is "twice blessed." Every man's occupation should be beneficial to his fellow-man as well as profitable to himself. All else is vanity and folly.



CHAPTER XXVII.

BUSINESS HUMBUGS.—JOHN LAW.—THE MISSISSIPPI SCHEME.—JOHNNY CRAPAUD AS GREEDY AS JOHNNY BULL.

In the "good old times," people were just as eager after money as they are now; and a great deal more vulgar, unscrupulous, and foolish in their endeavors to get it. During about two hundred years after the discovery of America, that continent was a constant source of great and little money humbugs. The Spaniards and Portuguese and French and English all insisted upon thinking that America was chiefly made of gold; perhaps believing, as the man said about Colorado, that the hardship of the place was, that you have to dig through three or four feet of solid silver before the gold could be reached. This curious delusion is shown by the fact that the early charters of lands in America so uniformly reserved to the King his proportion of all gold and silver that should be found. And if gold were not to be had, these lazy Europeans were equally crazy about the rich merchandise which they made sure of finding in the vast and solitary American mountains and forests.

In a previous letter, I have shown how one of those delusions, about the unbounded wealth to be obtained from the countries on the South Sea, caused the English South Sea bubble.

A similar belief, at the same time, in the neighboring country of France, formed the airy basis of a similar business humbug, even more gigantic, noxious, and destructive. This was John Law's Mississippi scheme, of which I shall give an account in this chapter. It was, I think, the greatest business humbug of history.

Law was a Scotchman, shrewd and able, a really good financier for those days, but vicious, a gambler, unprincipled, and liable to wild schemes. He had possessed a good deal of property, had traveled and gambled all over Europe, was witty, entertaining, and capital company, and had become a favorite with the Duke of Orleans and other French nobles. When the Duke became Regent of France at the death of Louis XIV, in 1715, that country was horribly in debt, and its people in much misery, owing to the costly wars and flaying taxations of the late King. When, therefore, Law came to Paris with a promising scheme of finance in his hand, the Regent was particularly glad to see him, both as financier and as friend.

The Regent quickly fell in with Law's plans; and in the spring of 1716, the first step—not, however, so intended at the time—toward the Mississippi Scheme was taken. This was, the establishment by royal authority of the banking firm of Law & Co., consisting of Law and his brother. This bank, by a judicious organization and issue of paper money, quickly began to help the distressed finances of the kingdom, and to invigorate trade and commerce. This success, which seems to have been an entirely sound and legitimate business success, made one sadly mistaken but very deep impression upon the ignorant and shallow mind of the Regent of France, which was the foundation of all the subsequent trouble. The Regent became firmly convinced, that if a certain quantity of bank bills could do so much good, a hundred thousand times as many bills would surely do a hundred thousand times as much. That is, he thought printing and issuing the bills was creating money. He paid no regard to the need of providing specie for them on demand, but thought he had an unlimited money factory in the city of Paris.

So far, so good. Next, Law planned, and, with the ever ready consent of the Regent, effected, an enlargement of the business of his bank, based on that delusion I spoke of about America. This enlargement was the formation of the Mississippi Company, and this was the contrivance which swelled into so tremendous a humbug. The company was closely connected with the banks, and received (to begin with) the monopoly of all trade to the Mississippi River, and all the country west of it. It was expected to obtain vast quantities of gold and silver from that region, and thus to make immense dividends on its stock. At home, it was to have the sole charge of collecting all the taxes and coining all the money. Stock was issued to the amount of one hundred thousand shares, at $200 (five hundred livres) each. And Law's help to the Government funds was continued by permitting this stock to be paid for in those funds, at their par value, though worth in market only about a third of it. Subscriptions came in rapidly—for the French community was far more ignorant about commercial affairs, finances, and the real resources of distant regions, than we can easily conceive of now-a-days; and not only the Regent, but every man, woman, and child in France, except a very few tough and hard-headed old skeptics, believed every word Law said, and would have believed him if he had told stories a hundred times as incredible.

Well, pretty soon the Regent gave the associates—the bank and the company—two other monopolies: that of tobacco, always monstrously profitable, and that of refining gold and silver. Pretty soon, again, he created the bank a state institution, by the magnificent name of The Royal Bank of France. Having done this, the Regent could control the bank in spite of Law (or order either); for, in those days, the kings of France were almost perfectly despotic, and the Regent was acting king. I have mentioned the Regent's terrible delusion about paper-money. No sooner had he the bank in his power, than he added to the reasonable and useful total of $12,000,000 of notes already out, a monstrous issue of $200,000,000 worth in one vast batch, with the firm conviction that he was thus adding so much to the par currency of France.

The Parliament of France, a body mostly of lawyers, originating in the Middle Ages, a steady, conservative, wise, and brave assembly, was always hostile to Law and his schemes. When this great expansion of paper-currency began, the Parliament made a resolute fight against it, petitioning, ordaining, threatening to hang Law, and frightening him well, too; for the thorough enmity of an assembly of old lawyers may well frighten anybody. At last, the Regent, by the use of the despotic power of which the Kings of France had so much, reduced these old fellows to silence by sticking a few of them in jail.

The cross-grained Parliament thus disposed of, everything was quickly made to "look lovely." In the beginning of 1719, more grants were made to Law's associated concerns. The Mississippi Company was granted the monopoly of all trade to the East Indies, China, the South Seas, and all the territories of the French India Company, and of the Senegal Company. It took a new and imposing name: "The Company of the Indies." They had already, by the way, also obtained the monopoly of the Canada beaver-trade. Of this colossal corporation, monopolizing the whole foreign commerce of France with two-thirds or more of the world, its whole home finances, and other important interests besides, fifty thousand new shares were issued, as before, at $100 each. These might be bought as before, with Government securities at par. Law was so bold as to promise annual dividends of $20 per share, which, as the Government funds stood, was one hundred and twenty per cent. per annum.! Everybody believed him. More than three hundred thousand applications were made for the new shares. Law was besieged in his house by more than twice as many people as General Grant had to help him take Richmond. The Great Humbug was at last in full buzz. The street where the wonderful Scotchman lived was busy, filled, crowded, jammed, choked. Dangerous accidents happened in it every day, from the excessive pressure. From the princes of the blood down to cobblers and lackeys, all men and all women crowded and crowded to subscribe their money, and to pay their money, and to know how many shares they had gotten. Law moved to a roomier street, and the crazy mob crowded harder than ever; so that the Chancellor, who held his court of law hard by, could not hear his lawyers.

A tremendous uproar surely, that could drown the voices of those gentlemen! And so he moved again, to the great Hotel de Soissons, a vast palace, with a garden of some acres. Fantastic circumstances variegated the wild rush of speculation. The haughtiest of the nobility rented mean rooms near Law's abode, to be able to get at him. Rents in his neighborhood rose to twelve and sixteen times their usual amount. A cobbler, whose lines had fallen in those pleasant places, made $40 a day by letting his stall and furnishing writing materials to speculators. Thieves and disreputable characters of all sorts flocked to this concourse. There were riots and quarrels all the time. They often had to send a troop of cavalry to clear the street at night. Gamblers posted themselves with their implements among the speculators, who gambled harder than the gamblers, and took an occasional turn at roulette by way of slackening the excitement; as people go to sleep, or go into the country. A hunchback fellow made a good deal of money by letting people write on his back. When Law had moved into the Hotel de Soissons, the former owner, the Prince de Carignan, reserved the gardens, procured an edict confining all stock-dealings to that place; put up five hundred tents there, leased them at five hundred livres a month each, and thus made money at the rate of $50,000 a month. There were just two of the aristocracy who were sensible and resolute enough not to speculate in the stock—the Duke de St. Simon and the old Marshal Villars.

Law became infinitely the most important person in the kingdom. Great and small, male and female, high and low, haunted his offices and ante-chambers, hunted him down, plagued his very life out, to get a moment's speech with him, and get him to enter their names as buyers of stock. The highest nobles would wait half a day for the chance. His servants received great sums to announce some visitor's name. Ladies of the highest rank gave him anything he would ask of them for leave to buy stock. One of them made her coachmen upset her out of her carriage as Law came by, to get a word with him. He helped her up; she got the word, and bought some stock. Another lady ran into the house where he was at dinner, and raised a cry of fire. The rest ran out, but she ran further in to reach Law, who saw what she was at, and like a pecuniary Joseph, ran away as fast as he could.

As the frenzy rose toward its height, and the Regent took advantage of it to issue stock enough to pay the whole national debt, namely, three hundred thousand new shares, at $1,000 each, or a thousand per cent. in the par value. They were instantly taken. Three times as many would have been instantly taken. So violent were the changes of the market, that shares rose or fell twenty per cent. within a few hours. A servant was sent to sell two hundred and fifty shares of stock; found on reaching the gardens of the Hotel de Soissons, that since he left his master's house the price had risen from $1,600 (par value $100 remember) to $2,000. The servant sold, gave his master the proceeds at $1,600 a share, put the remaining $100,000 in his own pocket, and left France that evening. Law's coachman became so rich that he left service, and set up his own coach; and when his master asked him to find a successor, he brought two candidates, and told Law to choose, and he would take the other himself. There were many absurd cases of vulgarians made rich. There were also many robberies and murders. That committed by the Count de Horn, one of the higher nobility and two accomplices, is a famous case. The Count, a dissipated rascal, poniarded a broker in a tavern for the money the broker carried with him. But he was taken, and, in spite of the utmost and most determined exertions of the nobility, the Regent had him broken on the wheel in public, like any other murderer.

The stock of the Company of the Indies, though it dashed up and down ten and twenty per cent. from day to day, was from the first immensely inflated. In August 1719, it sold at 610 per cent.; in a few weeks more it arose to 1,200 per cent. All winter it still went up until, in April 1720, it stood at 2,050 per cent. That is, one one-hundred dollar share would sell for two thousand and fifty dollars.

At this extreme point of inflation, the bubble stood a little, shining splendidly as bubbles do when they are nearest bursting, and then it received two or three quiet pricks. The Prince de Conti, enraged because Law would not send him some shares on his own terms, sent three wagon-loads of bills to Law's bank, demanding specie. Law paid it, and complained to the Regent, who made him put two-thirds of it back again. A shrewd stock-gambler drew specie by small sums until he had about $200,000 in coin, and lest he should be forced to return it, he packed it in a cart, covered it with manure, put on a peasant's disguise, and carted his fortune over the frontiers into Belgium. Some others quietly realized their means in like manner by driblets and funded them abroad.

By such means coin gradually grew very scarce, and signs of a panic appeared. The Regent tried to adjust matters by a decree that coin should be five per cent. less than paper; as much as to say, It is hereby enacted that there is a great deal more coin than there is! This did not serve, and the Regent decreed again, that coin should be worth ten per cent. less than paper. Then he decreed that the bank must not pay more than $22 at once in specie; and, finally, by a bold stretch of his authority, he issued an edict that no person should have over $100 in coin, on pain of fine and confiscation. These odious laws made a great deal of trouble, spying, and distress, and rapidly aggravated the difficulty they were meant to cure. The price of shares in the great company began to fall steadily and rapidly. Law and the Regent began to be universally hated, cursed, and threatened. Various foolish and vain attempts were made to stay the coming ruin, by renewing the stories about Louisiana sending out a lot of conscripted laborers, ordering that all payments must be made in paper, and printing a new batch of notes, to the amount of another $300,000,000. Law's two corporations were also doctored in several ways. The distress and fright grew worse. An edict was issued that Law's notes and shares should depreciate gradually by law for a year, and then be worth but half their face. This made such a tumult and outcry that the Regent had to retract it in seven days. On this seventh day, Law's bank stopped paying specie. Law was turned out of his public employments, but still well treated by the Regent in private. He was, however, mobbed and stoned in his coach in the street, had to have a company of Swiss Guards in his house, and at last had to flee to the Regent's own palace.

I have not space to describe in detail the ruin, misery, tumults, loss and confusion which attended the speedy descent of Law's paper and shares to entire worthlessness. Thousands of families were made paupers, and trade and commerce destroyed by the painful process. Law himself escaped out of France poor; and, after another obscure and disreputable career of gambling, died in poverty at Venice, in 1729.

Thus this enormous business-humbug first raised a whole nation into a fool's paradise of imaginary wealth, and then exploded, leaving its projector and many thousands of victims ruined, the country disturbed and distressed, long-enduring consequences, in vicious and lawless and unsteady habits, contracted while the delusion lasted, and no single benefit except one more most dearly-bought lesson of the wicked folly of mere speculation without a real business basis and a real business method. Let not this lesson be lost on the rampant and half-crazed speculators of the present day. Those who buy gold or flour, leather, butter, dry goods, groceries, hardware, or anything else on speculation, when prices are inflated far beyond the ordinary standard, are taking upon themselves great risks, for the bubble must eventually be pricked; and whoever is the "holder" when that time comes, must necessarily be the loser.



V. MEDICINE AND QUACKS.



CHAPTER XXVIII.

DOCTORS AND IMAGINATION.—FIRING A JOKE OUT OF A CANNON.—THE PARIS EYE WATER.—MAJENDIE ON MEDICAL KNOWLEDGE.—OLD SANDS OF LIFE.

Medical humbugs constitute a very critical subject indeed, because I shall be almost certain to offend some of three parties concerned, namely; physicians, quacks, and patients. But it will never do to neglect so important a division of my whole theme as this.

To begin with, it is necessary to suggest, in the most delicate manner in the world, that there is a small infusion of humbug among the very best of the regular practitioners. These gentlemen, for whose learning, kind-heartedness, self-devotion, and skill I entertain a profound respect, make use of what I may call the gaseous element of their practice, not for the lucre of gain, but in order to enlist the imaginations of their patients in aid of nature and great remedies.

The stories are infinite in number, which illustrate the force of imagination, ranging through all the grades of mental action, from the lofty visions of good men who dream of seeing heaven opened to them, and all its ineffable glories and delights, down to the low comedy conceit of the fellow who put a smoked herring into the tail of his coat and imagined himself a mermaid.

Probably, however, imagination displays its real power more wonderfully in the operations of the mind on the body that holds it, than anywhere else. It is true that there are some people even so utterly without imagination that they cannot take a joke; such as that grave man of Scotland who was at last plainly told by a funny friend quite out of patience, "Why, you wouldn't take a joke if it were fired at you out of a cannon!"

"Sir," replied the Scot, with sound reasoning and grave thought, "Sir, you are absurd. You cannot fire a joke out of a cannon!"

But to return: It is certainly the case that frequently "the doctor" takes great care not to let the patient know what is the matter, and even not to let him know what he is swallowing. This is because a good many people, if at a critical point of disease, may be made to turn toward health if made to believe that they are doing so, but would be frightened, in the literal sense of the words, to death, if told what a dangerous state they are in.

One sort of regular practice humbug is rendered necessary by the demands of the patients. This is giving good big doses of something with a horrid smell and taste. There are plenty of people who don't believe the doctor does anything to earn his money, if he does not pour down some dirty brown or black stuff very nasty in flavor. Some, still more exacting, wish for that sort of testimony which depends on internal convulsions, and will not be satisfied unless they suffer torments and expel stuff enough to quiet the inside of Mount Vesuvius or Popocatepetl.

"He's a good doctor," was the verdict of one of this class of leather-boweled fellows—"he'll work your innards for you!"

It is a milder form of this same method to give what the learned faculty term a placebo. This is a thing in the outward form of medicine, but quite harmless in itself. Such is a bread-pill, for instance; or a draught of colored water, with a little disagreeable taste in it. These will often keep the patient's imagination headed in the right direction, while good old Dame Nature is quietly mending up the damages in "the soul's dark cottage."

One might almost fancy that, in proportion as the physician is more skillful, by so much he gives less medicine, and relies more on imagination, nature, and, above all, regimen and nursing. Here is a story in point. There was an old gentleman in Paris, who sold a famous eye-water, and made much gain thereby. He died, however, one fine day, and unfortunately forgot to leave the recipe on record. "His disconsolate widow continued the business at the old stand," however—to quote another characteristic French anecdote—and being a woman of ready and decisive mind, she very quietly filled the vials with water from the river Seine, and lived respectably on the proceeds, finding, to her great relief, that the eye-water was just as good as ever. At last however, she found herself about to die, and under the stings of an accusing conscience she confessed her trick to her physician, an eminent member of the profession. "Be entirely easy, Madam," said the wise man; "don't be troubled at all. You are the most innocent physician in the world; you have done nobody any harm."

It is an old and illiberal joke to compare medicine to war, on the ground that the votaries of both seek to destroy life. It is, however, not far from the truth to say that they are alike in this; that they are both preeminently liable to mistakes, and that in both he is most successful who makes the fewest.

How can it be otherwise, until we know more than we do at present, of the great mysteries of life and death? It seems risky enough to permit the wisest and most experienced physician to touch those springs of life which God only understands. And it is enough to make the most stupid stare, to see how people will let the most disgusting quack jangle their very heartstrings with his poisonous messes, about as soon as if he were the best doctor in the world. A true physician, indeed, does not hasten to drug. The great French surgeon, Majendie, is even said to have commenced his official course of lectures on one occasion by coolly saying to his students: "Gentlemen, the curing of disease is a subject that physicians know nothing about." This was doubtless an extreme way of putting the case. Yet it was in a certain sense exactly true. There is one of the geysers in Iceland, into which visitors throw pebbles or turfs, with the invariable result of causing the disgusted geyser in a few minutes to vomit the dose out again, along with a great quantity of hot water, steam, and stuff. Now the doctor does know that some of his doses are pretty sure to work, as the traveler knows that his dose will work on the geyser. It is only the exact how and why that is not understood.

But however mysterious is nature, however ignorant the doctor, however imperfect the present state of physical science, the patronage and the success of quacks and quackeries are infinitely more wonderful than those of honest and laborious men of science and their careful experiments.

I have come about to the end of my tether for this time; and quackery is something too monstrous in dimensions as well as character to be dealt with in a paragraph. But I may with propriety put one quack at the tail of this letter; it is but just that he should let decent people go before him. I mean "Old Sands of Life." Everybody has seen his advertisement, beginning "A retired Physician whose sands of life have nearly run out," etc. And everybody—almost—knows how kind the fellow is in sending gratis his recipe. All that is necessary is (as you find out when you get the recipe) to buy at a high price from him one ingredient which (he says) you can get nowhere else. This swindling scamp is in fact a smart brisk fellow of about thirty-five years of age, notwithstanding the length of time during which—to use a funny phrase which somebody got up for him—he has been "afflicted with a loose tail-board to his mortal sand-cart." Some benevolent friend was so much distressed about the feebleness of "Old Sands of Life" as to send him one day a large parcel by express, marked "C. O. D.," and costing quite a figure. "Old Sands" paid, and opening the parcel, found half a bushel of excellent sand.



CHAPTER XXIX.

THE CONSUMPTIVE REMEDY.—E. ANDREWS, M. D.—BORN WITHOUT BIRTHRIGHTS.—HASHEESH CANDY.—ROBACK THE GREAT.—A CONJURER OPPOSED TO LYING.

There is a fellow in Williamsburg who calls himself a clergyman, and sells a "consumptive remedy," by which I suppose he means a remedy for consumption. It is a mere slop corked in a vial; but there are a good many people who are silly enough to buy it of him. A certain gentleman, during last November, earnestly sought an interview with this reverend brother in the interests of humanity, but he was as inaccessible as a chipmunk in a stone fence. The gentleman wrote a polite note to the knave asking about prices, and received a printed circular in return, stating in an affecting manner the good man's grief at having to raise his price in consequence of the cost of gold "with which I am obliged to buy my medicines" saith he, "in Paris." This was both sad and unsatisfactory; and the gentleman went over to Williamsburg to seek an interview and find out all about the prices. He reached the abode of the man of piety, but, strange to relate, he wasn't at home.

Gentleman waited.

Reverend brother kept on not being at home. When gentleman had waited to his entire satisfaction he came back.

It is understood it is practically out of the question to see the reverend brother. Perhaps he is so modest and shy that he will not encounter the clamorous gratitude which would obstruct his progress through the streets, from the millions saved by his consumptive remedy. It is a pity that the reverend man cannot enjoy the still more complete seclusion by which the state of New York testifies its appreciation of unobtrusive and retiring virtues like his, in the salubrious and quiet town of Sing Sing.

A quack in an inland city, who calls himself E. Andrews, M. D., prints a "semi-occasional" document in the form of a periodical, of which a copy is lying before me. It is an awful hodgepodge of perfect nonsense and vulgar rascality. He calls it "The Good Samaritan and Domestic Physician," and this number is called "volume twenty." Only think what a great man we have among us—unless the Doctor himself is mistaken. He says: "I will here state that I have been favored by nature and Providence in gaining access to stores of information that has fell to the lot of but very few persons heretofore, during the past history of mankind." Evidently these "stores" were so vast that the great doctor's brain was stuffed too full to have room left for English Grammar. Shortly, the Doctor thus bursts forth again with some views having their own merits, but not such as concern the healing art very directly: "The automaton powers of machinery"—there's a new style of machinery, you observe—"must be made to WORK FOR, instead of as now, against mankind; the Land of all nations must be made FREE to Actual Settlers in LIMITED quantities. No one must be born without his birthright being born with him." The italics, etc., are the Doctor's. What an awful thought is this of being born without any birthright, or, as the Doctor leaves us to suppose possible, having one's birthright born first, and dodging about the world like a stray canary-bird, while the unhappy and belated owner tries in vain to put salt on its tail and catch it!

Well, this wiseacre, after his portentous introduction, fills the rest of his sixteen loosely printed double-columned octavo pages with a farrago of the most indescribable character, made up of brags, lies, promises, forged recommendations and letters, boasts of systematic charity, funny scraps of stuff in the form of little disquisitions, advertisements of remedies, hair-oils, cosmetics, liquors, groceries, thistle-killers, anti-bug mixtures, recipes for soap, ink, honey, and the Old Harry only knows what. The fellow gives a list of seventy-one specific diseases for which his Hasheesh Candy is a sure cure, and he adds that it is also a sure cure for all diseases of the liver, brain, throat, stomach, ear, and other internal disorders; also for "all long standing diseases"—whatever that means!—and for insanity! In this monstrous list are jumbled together the most incongruous troubles. "Bleeding at the nose, and abortions;" "worms, fits, poisons and cramps." And the impudent liar quotes General Grant, General Mitchell, the Rebel General Lee, General McClellan, and Doctor Mott of this city, all shouting in chorus the praises of the Hasheesh Candy! Next comes the "Secret of Beauty," a "preparation of Turkish Roses;" then a lot of forged references, and an assertion that the Doctor gives to the poor five thousand pounds of bread every winter; then some fearful denunciations of the regular doctors.