By this first operation, there was an end put to the former diminutions on the denomination of the coin; which was now raised again to 40 livres the marc, as in 1709[14]. This is nothing: Footnote 14: Here is also an operation upon debts. The day before this edict, that is, the 1st of January 1716, the value of the King’s debts was (as has been said) above 142 millions sterling: but an edict comes, raising the coin to 40 livres _per_ marc; and consequently, reducing the debts to the value of 100 millions sterling. There being no difference between the old coin and the new, except the stamp, the old coin was called in, and a new face was stamped on the very same pieces. But when the louis d’ors were called in, they were received at the mint at no more than 16 livres; and by a stroke of the wheel, they were, in an instant, converted into 20 livres, the denomination of the new coin. Thus a person who brought 20 old louis d’ors to the mint, received back 16 of his own 20, new stamped, and no injustice was said to be done, from this demonstration of ministerial algebra, viz. 16 × 20 = 20 × 16. Can any thing be more clear and instructive! Some of my readers may not give credit to this; but it is true nevertheless. Under these circumstances, it was natural for the inhabitants to wish to dispose of their old coin, at any other market than at the King’s mint. They did what they could to smuggle it to Holland; where the industrious Dutchman stamped a 16 livre piece with the head of a child, as well as the King of France could do, and sent it back to France for a 20 livre piece. These operations were prevented as well as government could; and every method was tried to force in the old coin to the mint. Mr. Law judged this a very proper occasion to form the plan of a bank of circulation, upon the principles we have already explained. He gave in his scheme to the Duke of Orleans; by whom it was approved of; and the bank was established the 2d of May of the same year 1716. The first thing Mr. Law did, was to buy up with bank notes this old coin, at a price above what the mint gave, but many _per cent._ below the proportion of its value: his paper (payable in the new coin at 40 livres _per_ marc) was run upon for this, as well as other reasons; and an immense profit ensued. This anecdote, I think, is curious, and tends to unfold Mr. Law’s combinations, in the proposal he made to the Duke of Orleans for erecting a bank at this period of time. ------------------------------------------------------------------------ CHAP. XXV. _Continuation of the Account of Law’s Bank._ The bank accordingly was established in favour of Law and Company, by letters patent, of the 2d of May 1716. The Company was called, the General Bank; and the note run thus: The bank promises to pay to the bearer at sight — livres, in coin of the same weight and fineness with the coin of this day, value received at Paris.