Extraordinary Popular Delusions & the Madness of Crowds

by Charles Mackay

Men, it has been well said, think in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, and one by one.

The Regent appears to have been utterly astonished at his success, and gradually to have conceived the idea, that paper, which could so aid a metallic currency, could entirely supersede it. Upon this fundamental error he afterwards acted.

Amid the intoxication of success, both Law and the Regent forgot the maxim so loudly proclaimed by the former, that a banker deserved death who made issues of paper without the necessary funds to provide for them.

Law was now at the zenith of his prosperity, and the people were rapidly approaching the zenith of their infatuation. The highest and the lowest classes were alike filled with a vision of boundless wealth. There was not a person of note among the aristocracy, with the exception of the Duke of St. Simon and Marshal Villars, who was not engaged in buying or selling stock. People of every age and sex, and condition in life, speculated in the rise and fall of the Mississippi bonds.

The honest old soldier, Marshal Villars, was so vexed to see the folly which had smitten his countrymen, that he never could speak with temper on the subject. Passing one day through the Place Vendome in his carriage, the choleric gentleman was so annoyed at the infatuation of the people, that he abruptly ordered his coachman to stop, and, putting his head out of the carriage window, harangued them for full half an hour on their “disgusting avarice.” This was not a very wise proceeding on his part. Hisses and shouts of laughter resounded from every side, and jokes without number were aimed at him. There being at last strong symptoms that something more tangible was flying through the air in the direction of his head, Marshal was glad to drive on. He never again repeated the experiment.

Many other anecdotes are related, which even, though they may be a little exaggerated, are nevertheless worth preserving, as showing the spirit of that singular period. [The curious reader may find an anecdote of the eagerness of the French ladies to retain Law in their company, which will make him blush or smile according as he happens to be very modest or the reverse.

His religion being an obstacle to his advancement, the Regent promised, if he would publicly conform to the Catholic faith, to make him comptroller-general of the finances. Law, who had no more real religion than any other professed gambler, readily agreed, and was confirmed by the Abbe de Tencin in the cathedral of Melun, in presence of a great crowd of spectators.

Thus the system continued to flourish till the commencement of the year 1720. The warnings of the Parliament, that too great a creation of paper money would, sooner or later, bring the country to bankruptcy, were disregarded. The Regent, who knew nothing whatever of the philosophy of finance, thought that a system which had produced such good effects could never be carried to excess.

But he was not formed for retirement, and becoming moody and discontented, he aggravated a disease under which he had long laboured, and died in less than a twelvemonth.

said, “the dangerous practice of stockjobbing, and would divert the genius of the nation from trade and industry. It would hold out a dangerous lure to decoy the unwary to their ruin, by making them part with the earnings of their labour for a prospect of imaginary wealth. The great principle of the project was an evil of first-rate magnitude; it was to raise artificially the value of the stock, by exciting and keeping up a general infatuation, and by promising dividends out of funds which could never be adequate to the purpose. In a prophetic spirit he added, that if the plan succeeded, the directors would become masters of the government, form a new and absolute aristocracy in the kingdom, and control the resolutions of the legislature. If it failed, which he was convinced it would, the result would bring general discontent and ruin upon the country.

another was “for encouraging the breed of horses in England, and improving of glebe and church lands, and repairing and rebuilding parsonage and vicarage houses.” Why the clergy, who were so mainly interested in the latter clause, should have taken so much interest in the first, is only to be explained on the supposition that the scheme was projected by a knot of the foxhunting parsons, once so common in England.

But the most absurd and preposterous of all, and which showed, more completely than any other, the utter madness of the people, was one, started by an unknown adventurer, entitled “company for carrying on an undertaking of great advantage, but nobody to know what it is.”

The man of genius who essayed this bold and successful inroad upon public credulity, merely stated in his prospectus that the required capital was half a million, in five thousand shares of 100 pounds each, deposit 2 pounds per share. Each subscriber, paying his deposit, would be entitled to 100 pounds per annum per share. How this immense profit was to be obtained, he did not condescend to inform them at that time, but promised, that in a month full particulars should be duly announced, and a call made for the remaining 98 pounds of the subscription. Next morning, at nine o’clock, this great man opened an office in Cornhill. Crowds of people beset his door, and when he shut up at three o’clock, he found that no less than one thousand shares had been subscribed for, and the deposits paid. He was thus, in five hours, the winner of 2,000 pounds. He was philosopher enough to be contented with his venture, and set off the same evening for the Continent. He was never heard of again.

It was computed that the total amount of the sums proposed for carrying on these projects was upwards of three hundred millions sterling, a sum so immense that it exceeded the value of all the lands in England at twenty years’ purchase.

he was a winner by his speculations, and in a condition similar to that of the fat alderman in Joe Miller’s Jests, who, whenever he had eaten a good dinner, folded his hands upon his paunch, and expressed his doubts whether there could be a hungry man in the world.

“And thus,” to use the words of the Parliamentary History, “were seen, in the space of eight months, the rise, progress, and fall of that mighty fabric, which, being wound up by mysterious springs to a wonderful height, had fixed the eyes and expectations of all Europe, but whose foundation, being fraud, illusion, credulity, and infatuation, fell to the ground as soon as the artful management of its directors was discovered.”

Many persons grow insensibly attached to that which gives them a great deal of trouble, as a mother often loves her sick and ever-ailing child better than her more healthy offspring.

When the maniac, Thom, or Courtenay, was shot, in the spring of 1838, the relic-hunters were immediately in motion to obtain a memento of so extraordinary an individual. His long, black beard and hair, which were cut off by the surgeons, fell into the hands of his disciples, by whom they are treasured with the utmost reverence. A lock of his hair commands a great price, not only amongst his followers, but among the more wealthy inhabitants of Canterbury and its neighbourhood.

The oath upon the Evangelists

obliged to find twelve persons, of acknowledged probity, who should take oath at the same time, that they believed him innocent.

The trial by, or judgment of, the cross,

Although, to all other observers, the sticks, as enfolded in the wool, might appear exactly similar, those who enwrapped them could, without any difficulty, distinguish the one from the other.

By the fire-ordeal

It was generally believed that fire would not burn the innocent, and the clergy, of course, took care that the innocent, or such as it was their pleasure or interest to declare so, should be so warned before undergoing the ordeal, a...

it is clear that the Brahmins, like the Christian priests of the middle ages, practise some deception in saving those whom they wish to be thought guiltless.]

As regards the water-ordeal, the same trouble was not taken. It was a trial only for the poor and humble, and, whether they sank or swam, was thought of very little consequence. Like the witches of more modern times, the accused were thrown into a pond or river; if they sank, and were drowned, their surviving friends had the consolation of knowing that they were innocent; if they swam, they were guilty. In either case society was rid of them.

clergy reserved for themselves was the one least likely to cause any member of their corps to be declared guilty.

the Corsned,

piece of barley bread and a piece of cheese were laid upon the altar, and the accused priest, in his full canonicals, and surrounded by all the pompous adjuncts of Roman ceremony, pronounced certain conjurations, and prayed with great fervency for several minutes. The burden of his prayer was, that if he were guilty of the crime laid to his charge, God wo...

There is no instance upon record of a priest having been cho...

The chivalric spirit soon achieved the downfall of the ordeal system, and established the judicial combat on a basis too firm to be shaken.

In France, before the time of Louis IX, duels were permitted only in cases of Lese Majesty, Rape, Incendiarism, Assassination, and Burglary. Louis IX, by taking off all restriction, made them legal in civil eases. This was not found to work well, and, in 1303, Philip the Fair judged it necessary to confine them, in criminal matters, to state offences, rape, and incendiarism; and in civil cases, to questions of disputed inheritance.

The stern judge upon the bench may say to the unfortunate wight who has been called a liar by some unmannerly opponent, “If you challenge him, you meditate murder, and are guilty of murder !” but the same judge, divested of his robes of state, and mixing in the world with other men, would say, “If you do not challenge him, if you do not run the risk of making yourself a murderer, you will be looked upon as a mean-spirited wretch, unfit to associate with your fellows, and deserving nothing but their scorn and their contempt!” It is society, and not the duellist, who is to blame. Female influence, too, which is so powerful in leading men either to good or to evil, takes, in this case, the evil part. Mere animal bravery has, unfortunately, such charms in the female eye, that a successful duellist is but too often regarded as a sort of hero; and the man who refuses to fight, though of truer courage, is thought a poltroon, who may be trampled on.

the monks of the inquisition believed that the devil appeared visibly among men, that St. Anthony pulled his nose with a pair of red-hot pincers, and that the relics of the saints worked miracles; yet they would not believe Galileo, when he proved that the earth turned round the sun.

Keppler, when he asserted the same fact, could gain no bread, and little credence; but when he pretended to tell fortunes and cast nativities, the whole town flocked to him, and paid him enormous fees for his falsehood.

When Roger Bacon invented the telescope and the magic-lantern, no one believed that the unaided ingenuity of man could have done it; but when some wiseacres asserted that the devil had appeared to him, and given him the knowledge which he turned to suc...

In our own day, a similar fate awaited the beneficent discovery of Dr. Jenner. That vaccination could abate the virulence of, or preserve from, the smallpox, was quite incredible; none but a cheat and a quack could assert it: but that the introduction of the vaccine matter into the human frame could endow men with the qualities of a cow, was quite probable. Many of the poorer people actually dreaded that their children would grow hairy and horned as cattle, if they suffered them to be vaccinated.

Many a learned man may smile at the ignorance of the Peruvian and the Hindoo, unconscious that he himself is just as ignorant and as prejudiced.

The weeping philosopher too often impairs his eyesight by his woe, and becomes unable from his tears to see the remedies for the evils which he deplores. Thus it will often be found that the man of no tears is the truest philanthropist, as he is the best physician who wears a cheerful face, even in the worst of cases.

“There he goes with his eye out!” or “There she goes with her eye out!” as the sex of the party alluded to might be, was in the mouth of everybody who knew the town. The sober part of the community were as much puzzled by this unaccountable saying as the vulgar were delighted with it. The wise thought it very foolish, but the many thought it very funny, and the idle amused themselves by chalking it upon walls, or scribbling it upon monuments.

The foreman stated, that they were all of opinion generally that the plaintiff had been illegally arrested. This vague answer did not satisfy his Lordship, and he repeated his question. He could not, however, obtain a more satisfactory reply. Evidently vexed at what he deemed the obtuseness or partiality of the jury, he turned to the bar, and said, that a spirit of a mischievous and destructive nature was abroad, which, if not repressed, threatened awful consequences. The country would be lost, he said, and the government overturned, if such a spirit were encouraged; it was impossible it could end in good. Time, the destroyer and fulfiller of predictions, has proved that his Lordship was a false prophet. The harmless O. P. war has been productive of no such dire results.

When religion teaches men to go astray, they go far astray indeed!

It was universally believed that the end of the world was at hand; that the thousand years of the Apocalypse were near completion, and that Jesus Christ would descend upon Jerusalem to judge mankind.

This extraordinary delusion, while it augmented the numbers, increased also the hardships of the pilgrims.

would have brought starvation within sight of their own doors, if they had not economized their resources, and left the devotees to shift for themselves as they could.

The Turks of the eleventh century were more ferocious and less scrupulous than the Saracens of the tenth. They were annoyed at the immense number of pilgrims who overran the country, and still more so because they showed no intention of quitting it.

They were plundered, and beaten with stripes, and kept in suspense for months at the gates of Jerusalem, unable to pay the golden bezant that was to facilitate their entrance.

Difficulty and suffering only heightened the merit, and fresh hordes issued from every town and village, to win favour in the sight of Heaven by a visit to the holy sepulchre. Thus did things continue during the whole of the eleventh century.

Pope Urban II. occupied the apostolic chair.

A council was eventually summoned to meet him at Clermont, in Auvergne, to consider the state of the church, reform abuses, and, above all, make preparations for the war.