Jack of all Trades

Sheffield contrivances, assuming the exterior – though a little swelled – of a common pocket knife; but containing, not only blades of various sizes, but also screw-drivers, cork-screws, tweezers, awls, pens, rulers, nail-filers and countersinkers. Let’s welcome back our old friend Herman Mellville, author of Moby Dick for that introduction. In classic Moby Dick style, that sentence has absolutely nothing to do with the plot, the characters, or even whales for that matter. It is Melville’s long-winded way of describing what we know as a Swiss Army Knife. Melville’s writing style is famous for his overly descriptive, specific, and often irrelevant descriptions. In this case, however, let’s cut him a little slack. He had to describe the tool somehow, because the term Swiss Army Knife, would not enter the lexicon for almost 100 years.

In the 1880’s the Swiss government decided to purchase a new folding pocketknife for their soldiers. This new knife would be suitable for opening the canned food that was the standard rations of the army, and servicing the Swiss service rifle, the Schmidt-Rubin, which required a screwdriver.

At the time, no swiss company had the capacity to produce enough of the knives, so the contract was given to a German manufacturer Wester & Co. Seeing the utility of the knife, the German Army also began placing orders for what they dubbed the offiziersmesser, meaning officers knife. They were standard issue to German troops during both World War 1 and World War II. It was during the latter that American GI’s took a liking to the knives. Those GI’s had trouble pronouncing the name offiziersmesser so they coined a new term. The swiss Army Knife.

In the 80 years since the war, Swiss Army Knives have become one of the best-selling tools of all time. Victorinox, the largest producer of the knives in the world, assembles over 60,000 of them every single day. Even just the name, Swiss Army Knife, has taken on a life of its own. Going from the term used to describe a certain kind of knife, to a catch all phrase for any thing or person who can be used to accomplish multiple tasks.

There is an inherent problem with a swiss Army knife though. They are not the best knife. They are not the best saw. They are not the best screwdriver, corkscrew, file, can opener, scissors, tweezers, toothpick, or pliers. In fact, in most of those uses, it would be hard to even say they are “good” for the job. If you find yourself in the wilderness, they can be your best friend, because they can do everything. But if you have just one job to do, you will likely never turn to your Swiss Army Knife. They are a jack of all trades, but a master of none.

John Law, the son of a Scottish goldsmith, was a man of many talents: economist, gambler, and charismatic courtier. He fled his homeland after a deadly duel, and his penchant for calculating odds landed him in the luxurious halls of the French Royal Court. But Law's ambitious pursuits were not confined to the gambling table – he had grand visions for transforming France's ailing economy.

In the early 18th century, France was still reeling from the extravagant spending of Louis XIV. The country was weighed down by significant debt, and a scarcity of precious metals made it increasingly difficult to mint coins. Law saw an opportunity amidst this turmoil. His experiences in other countries had introduced him to the concept of paper currency, and he proposed a similar solution to France – a national bank that would issue paper money.

His idea was audacious, but it was convincing enough to establish the Banque Générale in 1716. The bank, later known as Banque Royale, was tasked with managing the government's debt and issuing paper currency, thereby removing the reliance on gold and silver.

But Law wasn't satisfied with merely revolutionizing France's monetary system. He set his sights on trade, convincing the regent to let him take control of the struggling Mississippi Company in 1717. Law promised investors gold-rich opportunities in Louisiana, a largely unexplored territory. He had never set foot in Louisiana, and his promises of golden riches were largely based on hearsay and speculation.

To consolidate France's national debt and stimulate the economy, Law began to sell shares in the Mississippi Company. Demand for these shares rapidly drove their value upwards, leading to a speculative frenzy known as the Mississippi Bubble. Law's bank feverishly printed paper money to keep up with the frantic trading.

Law was now juggling numerous ventures: the bank, the Mississippi Company, and the national debt. He was stretching himself thin, and cracks began to show. When investors rushed to convert their shares into paper money and subsequently into gold, it became painfully evident that there was not enough gold to back the paper currency. The result was a catastrophic economic collapse.

The collapse of the Mississippi Bubble was a disastrous result of Law's attempt to balance too many ventures at once. His downfall underscores the danger of overextension, and the value of focus and moderation in financial pursuits. Just as we can't be everywhere at once in our personal lives, we can't chase every opportunity in our financial lives. Instead, carefully selecting a few areas of focus can yield better, more sustainable results.