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
Complaints, accordingly, continually reached the Government from
those who were unable to satisfy the demands of the traders, and the
Government was compelled to visit the culprits with the penalties they
had power to impose, which included not only physical punishment but
confiscation of all their goods, and frequently the payment of a heavy
fine. The bakers of Paris suffered most from the tyrannical edicts,
and on one occasion no fewer than eighteen were fined, placed in the
stocks, and had their goods confiscated.
The final edict, published during the period of Law’s management of
the Bank and of the Company, appeared on 24th October, which directed
that all the original shareholders of the Company who still retained
their shares should deposit these with the Company, and that those
who had sold the whole or part of their shares should now purchase
the necessary number from the Company to make up the total of their
original holdings at the price of 13,500 livres per share. To provide
for the new purchases which this edict required an additional 50,000
shares were created, so that on the assumption that this number
represented the minimum necessary to make up the deficiencies of
holdings the Company would have absorbed over 600,000,000 livres
of depreciated paper. But the edict contained the elements of its
own destruction. It was impossible of accomplishment. The victims
refused to purchase from the Company shares for 13,500 livres which
were obtainable in the market for a mere tithe of that sum, and many
of them immediately prepared to leave the country with all their
belongings. So general were these preparations that no person was
allowed to cross the frontier without the permission of the Regent on
pain of death. The closest watch was kept upon all the main highways,
and numerous arrests were made of suspected emigrants. Many millions
of livres and considerable quantities of plate and jewellery, which
their possessors attempted to smuggle across the frontiers, were
seized and appropriated, the culprits being sent back to Paris to
undergo punishment. In no case however was the extreme penalty imposed,
confiscation and ruin being mercifully judged sufficient punishment.
Public-domain text, read in full here on John Shaqi.
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