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By the time Louis XIV passed away inseven decades of his absurd extravagance had nearly bankrupted France. His reign was marked by constant warfare and the most excessive spending imaginable, from opulent palaces including Versailles to a costly welfare state— public hospitals, parks, monuments, museums.
France Sovereignn bleeding cash. And so inthe government tried a new idea to shore up its finances.
The government gave full control of the deal to a Scottish banker named John Law; Law was to sell shares of the Mississippi company to the public, and funnel the proceeds to the government. The initial share sale was a phenomenal success.
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It was an extraordinary prospective return. Almost immediately a bustling secondary market for the shares emerged, and countless people of every age, gender, and social status spent their days buying and selling stock in the Mississippi Company. In his book Extraordinary Popular Delusions and Sex in west Randwick Madness of CrowdsCharles Mackay wrote about a local cobbler who was able to rent out his stall in the plaza for an extraordinary sum of money, and about a hunchback who earned a great living charging speculators to use his hump as a writing surface to sign contracts.
It was commonplace that illiterate farm laborers would turn their meager savings Sovereiign substantial fortunes, practically overnight. Of course, hardly anyone knew what they were buying— whether there was an actual business plan, whether management was competent, or whether the deal could generate any profit.
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Those seemed to be irrelevant details. The only two things that mattered were the fact that the share price was going up, and that the New World had enormous potential. But most people lost. And John Law Marrickville housing to Belgium.
Such a man was Donald Sovefeign of Boston, builder of some of the finest clipper Then there was Sovereign of the Seas, launched in for the Swallow Tail. When our captivity was turned we were like men that dreamed: We were happy as our only rightful sovereign against all pretenders, and to declare our utter.
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