Auction 137, Lot 861

"Schyn Bedriegt",

Subject: Satire - Stock Trading

Period: 1720 (circa)

Publication: Het Groote Tafereel der Dwaasheid…

Color: Hand Color

Size:
7.5 x 6 inches
19.1 x 15.2 cm

This satirical engravings is from the important account of one the most infamous financial meltdowns in history, known as the Mississippi Bubble incident. This engraving and prose is titled "Appearances are Deceptive" and speaks to the deceptive nature of the speculators during the bubble.

John Law, a Scottish financier, established the Banque Generale (central bank) in France. He was then granted control of Louisiana and founded the Compagnie de la Louisiane d'Occident, in 1717. Law developed an elaborate plan to exploit the fabulous resources of the region, which quickly gained popularity and people rushed to invest, not just in France, but throughout Europe. This resulted in the development of several other overseas companies, such as the English South Sea Company and a number of smaller companies in the Dutch Republic. The share price of the (Carte du Mexique et de la Floride) rose dramatically in a frenzy of speculation. In 1720 the bubble burst; speculators cashed in, caused a run on the shares, and the company went bankrupt. As a consequence of the failure, confidence in other similar companies failed, and thousands of individual investors across Europe were ruined.

References:

Condition: A

Watermarked paper with a vertical crease that does not distract.

Estimate: $140 - $180

Sold for: $80

Closed on 9/14/2011

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