John Law of Lauriston: Financier and Statesman, Founder of the Bank of France, Originator of the Mississippi Scheme, Etc.Wiston-Glynn, A. W.
History
John Law of Lauriston: Financier and Statesman, Founder of the Bank of France, Originator of the Mississippi Scheme, Etc.
Wiston-Glynn, A. W.
Law, John, 1671-1729
Previously to the date of the incorporation of the Bank and the
Company, the note issue in circulation amounted to about 600,000,000
livres. Within three months after that date, an additional
2,000,000,000 livres were fabricated and set afloat. The bulk of the
fresh issues was utilised for the purpose of discharging the national
debt, one of the great objects which Law had in view at the initiation
of his financial schemes. The national creditors were now become
creditors of the Company in respect of the notes they held; and the
state had now nominally discharged her debts in full.
One of the difficulties created by the publication of the various
decrees limiting the currency of coin was that of scarcity of notes of
small denomination. On 19th April, accordingly, a decree was registered
by which no less than 438,000,000 livres in notes of 10 to 1000 livres
each were issued in order to facilitate the changing of notes of
greater value and the carrying out of transactions of small amounts.
Although all these expedients failed in their object, the extent to
which speculation was carried was very little affected. The time for
suddenly made fortunes had now gone, but sufficient excitement remained
to render the purchase and sale of shares an occupation attractive to
thousands of speculators. The tendency of the market was distinctly
downwards, but there were intervening fluctuations, which maintained
the mania in almost all its former strength. The Rue Quincampoix was
still crowded from morning till evening. So great were the crowds on
many occasions that scenes of confusion were frequent and sometimes
developed into scenes of violence. It formed a happy hunting ground
for the lowest classes in the community. Robberies and even murders
took place so often that special precautions had necessarily to be
taken by those who carried money on their person. So dangerous had
the street and its environs become that on 22nd March, the council
published an edict prohibiting its use as a stock market, and requiring
all houses and offices wherein share transactions had been hitherto
usually negotiated to be closed in future for such business. No other
locality was assigned to the speculators, and for two months they had
no recognised place of meeting. The wisdom of this decree was dictated
by an unhappy occurrence that took place on the morning of the day of
its issue, in which was involved a young foreigner of noble family,
Comte de Horn, son of Prince Philippe Emmanuel who had served in France
at the sieges of Brizac and of Landau, and at the battles of Spire
and of Ramillies. According to the account given of the incident by
Duclos, it appears that the Count, who had been living a riotous life
in Paris for some time and had contracted extensive debts, along with
two companions, Laurent de Mille, and a sham knight named Lestang,
plotted the assassination of a rich stock-jobber and the theft of his
Public-domain text, read in full here on John Shaqi.
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