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Graphic Satirical Print of the Folly of Financial Speculation
This early 18th-century satirical print vividly illustrates the speculative frenzy and subsequent collapse known as the Mississippi Bubble, an economic catastrophe linked to the rise and fall of the Mississippi Company under John Law in France during 1719-1720.
The title translates as ""The god of wind (speculation) has spent his fury and leaves only destruction behind," reflecting the central theme of folly and ruin brought about by reckless financial speculation.
The visually complex image centers around a seated man wielding a mallet and chisel on a millstone while declaring " 'k Bik dat ik zwiet," which can be interpreted as a mocking play on the name of the Bicker family (van Zwieten), the patrician family of Gerard Bicker van Swieten (1632-1716) - bikken meaning to chip or hack at something.
To the left of the central figure is another man boring a piece of wood and saying " 'k Boor-eel", which Muller interprets as an allusion to the patrician Boreel family. To the right, yet another man, labelled "Fay" is shown squatting and defecating what appears to be stock certificates. An arid mountainous landscape on the left contrasts with a fertile wooded plain on the right.
Context of Financial Crisis of 1720
The Mississippi Bubble was a financial crisis in early 18th century France, primarily between 1719-1720. John Law, a Scottish financier who became the Controller General of Finances for the French government, proposed opening Louisiana to trade to help alleviate France's financial problems. To achieve this, he founded the Mississippi Company, later known as the Company of the West, and was granted a monopoly on trade in the French territories in North America, including the Mississippi River region.
Law's banking schemes, particularly through his Banque Générale Privée (later the Banque Royale), played a central role in the bubble. The bank issued paper money, which people used to buy shares in the Mississippi Company. The company's shares soared as the public believed in the lucrative potential of the ventures in Louisiana.
However, by 1720, it became clear that the company's profits were not as substantial as expected. As panic set in, there was a rapid sell-off of shares, causing the prices to plummet. The resulting financial collapse destroyed the Banque Générale Privée and led to a significant economic crisis in France. John Law fled the country, leaving many investors ruined and the French economy in disarray.
In summary, this humorous engraving serves as a reflection of the financial crisis of 1720, offering a satirical portrayal of speculative activities, irrational exuberance, and the subsequent downfall. It provides a striking visual artifact on the events of the time and serves as a reminder of the risks and follies associated with financial speculation.
