August 2020 Auction Ends Thursday, August 27th, 5pm Pacific
This lot is closed for bidding. Bidding ended on 8/27/2020
Original 1795 prospectus for the North American Land Company, that speculative land scheme that not only precipitated the Panic of 1797 but bankrupted its backer Robert Morris, Declaration of Independence signer and ''Financier of the Revolution''. Over 200 years before the 2008 financial crisis that was also precipitated by land speculation, this prospectus, entitled ''Plan of Association of the North American Land Company'' serves as a cautionary tale, reading in part,
''The Subscribers Hereto having, at a great expense of money and time, with much industry acquired a large and valuable property...which have been chosen or selected (in preference to other tracts) in consideration of the good quality of the soil, advantageous position, certainty of title, and other circumstances...they now offer a plan expressed in the articles of agreement hereto annexed by which all persons who have money may, if they please, participate in the advantages resulting from the purchase, sale and improvement of these valuable estates.''
Considered somewhat of a land pyramid scheme by using assets backed by land holdings from previous speculative ventures, Morris and his partners tried to entice NALC shareholders with a guaranteed six percent annual dividend. This, however, wasn't enough to persuade investors who concluded that much of the land owned by the company (despite claims in the prospectus) had poor title and were of poor quality. The resulting land bubble precipitated the Panic of 1797 and landed Morris in debtor's prison, with the NALC finally sold at seven cents on the dollar.
Printed in Philadelphia: R. Aitken and Son, February 1795, booklet runs 25pp. with period marbled wrappers. Stamp to back wrapper identifies the copy as once belonging to Grover W. Ayers of the ''Ten Mile Square Club'', an early 20th century political action group. Booklet measures 5'' x 8''. Some light wear and very mild dampstaining, overall in very good condition.
Original 1795 Prospectus for the North American Land Company, the Speculative Venture That Precipitated the Panic of 1797 and Bankrupted Robert Morris, ''Financier of the Revolution''
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