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
When his parents lost all hope of pardon from the Regent, the Prince de
Robec Montmorency, and the Marechal d’Isenghen, found means of securing
admission to the prison. They brought poison with them and exhorted
him to take it in order to avoid the shame of the execution, but he
refused. “You wretch,” they declared, leaving him with indignation,
“you are only worthy to die by the hands of the executioner.”
CHAPTER XI
New measures prove ineffectual.--New edict issued fixing price
of shares and depreciating value of notes.--Authorship
of edict.--People hostile to edict.--Parliament refuses
to register it, and a revocation is issued.--Law deposed
from office of Controller-General.--D’Aguessau reinstated
in his former office.--New schemes for absorption of
bank-notes.--Widespread distress produced amongst
community.--Law’s person in danger.--Stock-jobbers establish
themselves in the gardens of the Hotel de Soissons.--Parliament
exiled to Pontoise, and Bank closed for an indefinite period.
[Illustration]
The efforts of Law and of the Regent having as yet proved insufficient
to rectify the balance between the notes in issue and the amount of
specie in the country, the adoption of some final drastic measure was
rendered imperative. A step was taken which has given rise to much
controversy as to its authorship. On 21st May an edict of Council was
issued, the provisions of which were designed to adjust the finances
of the realm by one sweeping process, irrespective of the interests
of individuals, and of a character so radical and effective as to
exclude the possibility of the whim of the speculator from defeating
its object. It not only covered the relations which were to obtain
between the value of notes and specie, but also fixed the price of
shares so that they should not disturb by their fluctuations the
arrangements of the Bank. It enacted that on the date of publication of
the decree bank-notes of all denominations should suffer depreciation
to the extent of 20 per cent. of their value, and that on the first
of each month, from 1st July to 1st December, further depreciation
should take place to the extent of 500 livres on notes of the nominal
value of 10,000 livres, and proportionately on the smaller notes.
Shares were to undergo a similar diminution in value, starting from
8000 livres as at 21st May. On 1st December therefore, all notes would
have reached a discount of 50 per cent., and shares would possess
a fixed value of 5000 livres each. These regulations were to apply
to all financial and industrial negotiations; but one exception was
granted in the case of payment of Royal revenues, and purchase of
state securities such as annuities, where until 1st December all notes
would be received at their full face value. As a possible steadying
influence in so disturbing and so confusing a change, the repeal of the
edict prohibiting the currency of specie was to be withdrawn, and the
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Elsewhere in the archive
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account