Complete Fictional Works of Washington Irving (Illustrated)

by Washington Irving

  He complimented me, however, very graciously, upon the progress I had made, but advised me for the present to turn my attention to the physical rather than the moral sciences. “These studies,” said he, “store a man’s mind with valuable facts, and at the same time repress self-confidence, by letting him know how boundless are the realms of knowledge, and how little we can possibly know. Whereas metaphysical studies, though of an ingenious order of intellectual employment, are apt to bewilder some minds with vague speculations. They never know how far they have advanced, or what may be the correctness of their favorite theory. They render many of our young men verbose and declamatory, and prone to mistake the aberrations of their fancy for the inspirations of divine philosophy.”

  I could not but interrupt him, to assent to the truth of these remarks, and to say that it had been my lot, in the course of my limited experience, to encounter young men of the kind, who had overwhelmed me by their verbosity.

  Mr. Somerville smiled. “I trust,” said he, kindly, “that you will guard against these errors. Avoid the eagerness with which a young man is apt to hurry into conversation, and to utter the crude and ill-digested notions which he has picked up in his recent studies. Be assured that extensive and accurate knowledge is the slow acquisition of a studious lifetime; that a young man, however pregnant his wit, and prompt his talent, can have mastered but the rudiments of learning, and, in a manner, attained the implements of study. Whatever may have been your past assiduity, you must be sensible that as yet you have but reached the threshold of true knowledge; but at the same time you have the advantage that you are still very young, and have ample time to learn.”

  Here our conference ended. I walked out of the study a very different being from what I was on entering it. I had gone in with the air of a professor about to deliver a lecture; I came out like a student who had failed in his examination, and been degraded in his class.

  “Very young,” and “on the threshold of knowledge!” This was extremely flattering to one who had considererd himself an accomplished scholar and a profound philosopher.

  “It is singular,” thought I; “there seems to have been a spell upon my faculties, ever since I have been in this house. I certainly have not been able to do myself justice. Whenever I have undertaken to advise, I have had the tables turned upon me. It must be that I am strange and diffident among people I am not accustomed to. I wish they could hear me talk at home!”

  “After all,” added I, on further reflection, “after all there is a great deal of force in what Mr. Somerville has said. Somehow or other, these men of the world do now and then hit upon remarks that would do credit to a philosopher. Some of his general observations came so home that I almost thought they were meant for myself. His advice about adopting a system of study is very judicious. I will immediately put it hi practice. My mind shall operate henceforward with the regularity of clockwork.”

  How far I succeeded in adopting this plan, how I fared in the further pursuit of knowledge, and how I succeeded in my suit to Julia Somerville, may afford matter for a further communication to the public, if this simple record of my early life is fortunate enough to excite any curiosity.

  THE GREAT MISSISSIPPI BUBBLE

  “A TIME OF UNEXAMPLED PROSPERITY”

  In the course of a voyage from England, I once fell in with a convoy of merchant ships bound for the West Indies. The weather was uncommonly bland; and the ships vied with each other in spreading sail to catch a light, favoring breeze, until their hulls were almost hidden beneath a cloud of canvas. The breeze went down with the sun, and his last yellow rays shone upon a thousand sails, idly flapping against the masts.

  I exulted in the beauty of the scene, and augured a prosperous voyage; but the veteran master of the ship shook his head, and pronounced this halcyon calm a “weather-breeder.” And so it proved. A storm burst forth in the night; the sea roared and raged; and when the day broke, I beheld the late gallant convoy scattered in every direction; some dismasted, others scudding under bare poles, and many firing signals of distress.

  I have since been occasionally reminded of this scene, by those calm, sunny seasons in the commercial world, which are known by the name of “times of unexampled prosperity.” They are the sure weather-breeders of traffic. Every now and then the world is visited by one of these delusive seasons, when “the credit system,” as it is called, expands to full luxuriance, everybody trusts everybody; a bad debt is a thing unheard of; the broad way to certain and sudden wealth lies plain and open; and men are tempted to dash forward boldly, from the facility of borrowing.

  Promissory notes, interchanged between scheming individuals, are liberally discounted at the banks, which become so many mints to coin words into cash; and as the supply of words is inexhaustible, it may readily be supposed what a vast amount of promissory capital is soon in circulation. Every one now talks in thousands; nothing is heard but gigantic operations in trade; great purchases and sales of real property, and immense sums made at every transfer. All, to be sure, as yet exists in promise; but the believer in promises calculates the aggregate as solid capital, and falls back in amazement at the amount of public wealth, the “unexampled state of public prosperity.”

  Now is the time for speculative and dreaming or designing men. They relate their dreams and projects to the ignorant and credulous, dazzle them with golden visions, and set them madding after shadows. The example of one stimulates another; speculation rises on speculation; bubble rises on bubble; every one helps with his breath to swell the windy superstructure, and admires and wonders at the magnitude of the inflation he has contributed to produce.

  Speculation is the romance of trade, and casts contempt upon all its sober realities. It renders the stockjobber a magician, and the exchange a region of enchantment. It elevates the merchant into a kind of knight-errant, or rather a commercial Quixote. The slow but sure gains of snug percentage become despicable in his eyes; no “operation” is thought worthy of attention that does not double or treble the investment. No business is worth following that does not promise an immediate fortune. As he sits musing over his ledger, with pen behind his ear, he is like La Mancha’s hero in his study, dreaming over his books of chivalry. His dusty counting-house fades before his eyes, or changes into a Spanish mine; he gropes after diamonds, or dives after pearls. The subterranean garden of Aladdin is nothing to the realms of wealth that break upon his imagination.

  Could this delusion always last, the life of a merchant would indeed be a golden dream; but it is as short as it is brilliant. Let but a doubt enter, and the “season of unexampled prosperity” is at end. The coinage of words is suddenly curtailed; the promissory capital begins to vanish into smoke; a panic succeeds, and the whole superstructure, built upon credit and reared by speculation, crumbles to the ground, leaving scarce a wreck behind:

  “It is such stuff as dreams are made of.”

  When a man of business, therefore, hears on every side rumors of fortunes suddenly acquired; when he finds banks liberal, and brokers busy; when he sees adventurers flush of paper capital, and full of scheme and enterprise; when he perceives a greater disposition to buy than to sell; when trade overflows its accustomed channels and deluges the country; when he hears of new regions of commercial adventure; of distant marts and distant mines, swallowing merchandise and disgorging gold; when he finds joint-stock companies of all kinds forming; railroads, canals, and locomotive engines, springing up on every side; when idlers suddenly become men of business, and dash into the game of commerce as they would into the hazards of the faro table; when he beholds the streets glittering with new equipages, palaces conjured up by the magic of speculation; tradesmen flushed with sudden success, and vying with each other in ostentatious expense; in a word, when he hears the whole community joining in the theme of “unexampled prosperity,” let him look upon the whole as a “weather-breeder,” and prepare for the impending storm.

  The foregoing remarks are intended merely as a prelude
to a narrative I am about to lay before the public, of one of the most memorable instances of the infatuation of gain to be found in the whole history of commerce. I allude to the famous Mississippi Bubble. It is a matter that has passed into a proverb, and become a phrase in every one’s mouth, yet of which not one merchant in ten has probably a distinct idea. I have therefore thought that an authentic account of it would be interesting and salutary, at the present moment, when we are suffering under the effects of a severe access of the credit system, and just recovering from one of its ruinous delusions.

  Before entering into the story of this famous chimera, it is proper to give a few particulars concerning the individual who engendered it. John Law was born in Edinburgh in 1671. His father, William Law, was a rich goldsmith, and left his son an estate of considerable value, called Lauriston, situated about four miles from Edinburgh. Goldsmiths, in those days, acted occasionally as bankers, and his father’s operations, under this character, may have originally turned the thoughts of the youth to the science of calculation, in which he became an adept; so that at an early age he excelled in playing at all games of combination.

  In 1694 he appeared in London, where a handsome person, and an easy and insinuating address, gained him currency in the first circles and the nickname of “Beau Law.” The same personal advantages gave him success in the world of gallantry, until he became involved in a quarrel with Beau Wilson, his rival in fashion, whom he killed in a duel, and then fled to France, to avoid prosecution.

  He returned to Edinburgh in 1700, and remained there several years; during which time he first broached his great credit system, offering to supply the deficiency of coin by the establishment of a bank, which, according to his views, might emit a paper currency equivalent to the whole landed estate of the kingdom.

  His scheme excited great astonishment in Edinburgh; but, though the government was not sufficiently advanced in financial knowledge to detect the fallacies upon which it was founded, Scottish caution and suspicion served in the place of wisdom, and the project was rejected. Law met with no better success with the English Parliament; and the fatal affair of the death of Wilson still hanging over him, for which he had never been able to procure a pardon, he again went to France.

  The financial affairs of France were at this time in a deplorable condition. The wars, the pomp and profusion, of Louis XIV., and his religious persecutions of whole classes of the most industrious of his subjects, had exhausted his treasury, and overwhelmed the nation with debt. The old monarch clung to his selfish magnificence, and could not be induced to diminish his enormous expenditure; and his minister of finance was driven to his wits’ end to devise all kinds of disastrous expedients to keep up the royal state, and to extricate the nation from its embarrassments.

  In this state of things, Law ventured to bring forward his financial project. It was founded on the plan of the Bank of England, which had already been in successful operation several years. He met with immediate patronage, and a congenial spirit, in the Duke of Orleans, who had married a natural daughter of the king. The duke had been astonished at the facility with which England had supported the burden of a public debt, created by the wars of Anne and William, and which exceeded in amount that under which France was groaning. The whole matter was soon explained by Law to his satisfaction. The latter maintained that England had stopped at the mere threshold of an art capable of creating unlimited sources of national wealth. The duke was dazzled with his splendid views and specious reasonings, and thought he clearly comprehended his system. Demarets, the Comptroller-General of Finance, was not so easily deceived. He pronounced the plan of Law more pernicious than any of the disastrous expedients that the government had yet been driven to. The old king also, Louis XIV., detested all innovations, especially those which came from a rival nation; the project of a bank, therefore, was utterly rejected.

  Law remained for a while in Paris, leading a gay and affluent existence, owing to his handsome person, easy manners, flexible temper, and a faro-bank which he had set up. His agreeable career was interrupted by a message from D’Argenson, Lieutenant-General of Police, ordering him to quit Paris, alleging that he was “rather too skillful at the game which he had introduced.”

  For several succeeding years he shifted his residence from state to state of Italy and Germany; offering his scheme of finance to every court that he visited, but without success. The Duke of Savoy, Victor Amadeus, afterward king of Sardinia, was much struck with his project; but after considering it for a time, replied, “I am not sufficiently powerful to ruin myself.”

  The shifting, adventurous life of Law, and the equivocal means by which he appeared to live, playing high, and always with great success, threw a cloud of suspicion over him wherever he went, and caused him to be expelled by the magistracy from the semi-commercial, semi-aristocratical cities of Venice and Genoa.

  The events of 1715 brought Law back again to Paris. Louis XIV. was dead. Louis XV. was a mere child, and during his minority the Duke of Orleans held the reins of government as Regent. Law had at length found his man.

  The Duke of Orleans has been differently represented by different contemporaries. He appears to have had excellent natural qualities, perverted by a bad education. He was of the middle size, easy and graceful, with an agreeable countenance, and open, affable demeanor. His mind was quick and sagacious, rather than profound; and his quickness of intellect, and excellence of memory, supplied the lack of studious application. His wit was prompt and pungent; he expressed himself with vivacity and precision; his imagination was vivid, his temperament sanguine and joyous; his courage daring. His mother, the Duchess of Orleans, expressed his character in a jeu d’esprit. “The fairies,” said she, “were invited to be present at his birth, and each one conferring a talent on my son, he possesses them all. Unfortunately, we had forgotten to invite an old fairy, who, arriving after all the others, exclaimed, ‘He shall have all the talents, excepting that to make a good use of them.’”

  Under proper tuition, the duke might have risen to real greatness; but in his early years he was put under the tutelage of the Abbe Dubois, one of the subtlest and basest spirits that ever intrigued its way into eminent place and power. The abbe was of low origin and despicable exterior, totally destitute of morals, and perfidious in the extreme; but with a supple, insinuating address, and an accommodating spirit, tolerant of all kinds of profligacy in others. Conscious of his own inherent baseness, he sought to secure an influence over his pupil, by corrupting his principles and fostering his vices; he debased him, to keep himself from being despised. Unfortunately he succeeded. To the early precepts of this infamous pander have been attributed those excesses that disgraced the manhood of the regent, and gave a licentious character to his whole course of government. His love of pleasure, quickened and indulged by those who should have restrained it, led him into all kinds of sensual indulgence. He had been taught to think lightly of the most serious duties and sacred ties; to turn virtue into a jest, and consider religion mere hypocrisy. He was a gay misanthrope, that had a sovereign but sportive contempt for mankind; believed that his most devoted servant would be his enemy, if interest prompted; and maintained that an honest man was he who had the art to conceal that he was the contrary.

  He surrounded himself with a set of dissolute men like himself; who, let loose from the restraint under which they had been held, during the latter hypocritical days of Louis XIV., now gave way to every kind of debauchery. With these men the regent used to shut himself up, after the hours of business, and excluding all graver persons and graver concerns, celebrate the most drunken and disgusting orgies; where obscenity and blasphemy formed the seasoning of conversation. For the profligate companions of these revels, he invented the appellation of his roués, the literal meaning of which is men broken on the wheel; intended, no doubt, to express their broken-down characters and dislocated fortunes; although a contemporary asserts that it designated the punishment that most of them merited. Madame d
e Labran, who was present at one of the regent’s suppers, was disgusted by the conduct and conversation of the host and his guests, and observed, at table, that God, after he had created man, took the refuse clay that was left, and made of it the souls of lackeys and princes.

  Such was the man that now ruled the destinies of France. Law found him full of perplexities, from the disastrous state of the finances. He had already tampered with the coinage, calling in the coin of the nation, restamping it, and issuing it at a nominal increase of one-fifth; thus defrauding the nation out of twenty per cent of its capital. He was not likely, therefore, to be scrupulous about any means likely to relieve him from financial difficulties; he had even been led to listen to the cruel alternative of a national bankruptcy.

  Under these circumstances, Law confidently brought forward his scheme of a bank, that was to pay off the national debt, increase the revenue, and at the same time diminish the taxes. The following is stated as the theory by which he recommended his system to the regent. The credit enjoyed by a banker or a merchant, he observed, increases his capital tenfold; that is to say, he who has a capital of one thousand livres, may, if he possess sufficient credit, extend his operations to a million, and reap profits to that amount. In like manner, a state that can collect into a bank all the current coin of the kingdom, would be as powerful as if its capital were increased tenfold. The specie must be drawn into the bank, not by way of loan, or by taxations, but in the way of deposit. This might be effected in different modes, either by inspiring confidence or by exerting authority. One mode, he observed, had already been in use. Each time that a state makes a recoinage, it becomes momentarily the depositary of all the money called in, belonging to the subjects of that state. His bank was to effect the same purpose; that is to say, to receive in deposit all the coin of the kingdom, but to give in exchange its bills, which, being of an invariable value, bearing an interest, and being payable on demand, would not only supply the place of coin, but prove a better and more profitable currency.