Book 1, Chapter 7 Summary and Analysis

"Downfall" opens three weeks after the Colun fire, showing Ferdinand de Lesseps achieving the ultimate honor, induction into the Acadymie Franzaise. The press is earning its keep, refraining from printing the derogatory things being talked about on the streets. Panama shares are slipping in value, but de Lesseps lies to stockholders about the task as being half finished. The bubble bursts in August of 1885, when Yconomiste Franzaise warns of disaster, unless the canal company is reorganized. The New York Tribune writes of gigantic speculation, and London Financial News carries blistering allegations of systematic deception and press collusion. When a deadly storm smashes Colun and floods the track and diggings, de Lesseps reminds people of setbacks at Suez. In July of 1886, he asks for and receives a vote of confidence and proposes a Suez-style lottery bond issue to raise $20 million...