http://www.absinthebuyersguide.com/history.html
Absinthe was the drink of choice among artist and writers in the mid 18th century. In France, it became as popular as wine. It inspired poets and appeared in works by Picasso and Van Gogh. By 1880, it popularity had grown and its use widespread. It was export to New Orleans where it became a popular drink in the Fench Quarter.
As its popularity grew, so did public hysteria over its mysterious effects. Absinthe was the subject of many studies into alcoholism, at the time it was referred to as Absinthism. It use was even considered a ticket to the insane asylum. Absinthe was eventually banned in many countries around the world. Commercial production in Switzerland ended around 1910, and in 1914 for France. The Pernod plant at Pontarlier in France was sold in 1917 after 110 years of production.
As it was told by history, Absinthe was invented by Dr. Pierre Ordinaire in 1792, a French doctor who was living in the Swiss town of Couvet. It was said that he discovered the plant Artemisia Absinthium (common wormwood) while traveling in the Val-de-Travers hills. His 136 proof elixier bacame a cure-all and was nicknamed La Fee Verte, the Green Fairy.
Dr.Ordinaire recipe was supposedly left to two Henroid sister in Couvet, who left it to a Frenchman named Major Dubied. The Major's daughter married Henri-Louis Pernod, and the rest was history. (ref: Barnary Conrad III, Absinthe - History in a Bottle)
Absinthe is a drink that contains a high-level of alcohol, typically 68%. The most important ingredient of Absinthe is wormwood; it is what sets it apart from other drinks. Wormwood is an herb; common wormwood (Artimisia Absinthium) is where Absinthe gets its name and is the main source for Thujone. Thujone is a toxin when taken in large amounts, it is said to be responsible for Absinthe's mysterious opium like effects. Other ingredients include, anise, hyssop, calamis, fennel, coriander, dittany, and sweet flag.
Traditionally, Absinthe is prepared by pouring cold water over a cube of sugar resting on a slotted spoon . The cold water dissolves the sugar while diluting the green Absinthe. The sugar helped to sweeten the bitterness from the Thujone. As the cold water mixed with the Absinthe, it clouds to an opalescent white with a tint of green or yellow, this effect is called the ?louche?, pronounced "loosh" The louche occures when the essential oils are not able to disperse in the water, therefore creating a clouding effect. The mix ratio is according to preference, usually 4 or 5 parts water to 1 part Absinthe.