Amongst the authorities to which I have been most indebted for guidance are the following,--“Histoire du Système des Finances pendant les années, 1719 and 1720,” by Duhautchamps; “Vue génèrale du Système de M. Law,” by Fourbonnais; “Correspondence of the 2nd Earl of Stair, in the Hardwicke State papers;” “Memoirs de Saint-Simon;” “Law et son système des Finances,” by Thiers; “Recherches historiques sur le systême de Law,” by Levasseur; and “Law, son systême et son époque,” by Cochut. Law’s own writings have, of course, also furnished valuable material, and particularly his “Proposals and Reasons for constituting a Council of Trade in Scotland,” and his “Money and Trade Considered.” His later writings form part of Daire’s “Collection des Principaux Economistes.” A. W. W.-G. EDINBURGH, _26th November, 1907_. ILLUSTRATIONS. JOHN LAW OF LAURISTON Frontispiece. facing page LAURISTON CASTLE 4 LA SALLE 52 DUC D’ORLEANS 104 EARL OF STAIR 148 CARDINAL DUBOIS 186 CONTENTS PAGE CHAPTER I. 1 Standard of criticism hitherto applied to John Law.-- Birth and ancestry.--Education.--Death of father.-- Early devotion to study of finance.--Manner and appearance.--Visits London.--Duel with Beau Wilson.-- Tried for murder.--Escapes to France.--Meets Lady Catherine Knollys.--Career of gambling on the Continent.--Studies banking.--Formulates new principles of finance.--Returns to Scotland. CHAPTER II. 15 Unsettled condition of Scottish politics in 1700.-- Financial and commercial insecurity of country.--Law’s solution of difficulties.--Land Bank.--Supported by Court party.--Rejected by Parliament.--Again resorts to gambling.--Returns to Continent.--Expelled from Holland.--Visits Paris.--Discusses finance with Duc d’Orleans.--Expelled by Lieutenant General of Police.-- Submits proposals to Louis XIV. without success.--Again attempts to secure adoption of proposals by France.-- Financial condition of France.--Earl of Stair’s friendship with Law. CHAPTER III. 33 Accession of Louis XV.--National debt of France.-- Debasement of coinage.--Arraignment of tax collectors.-- Council of Finances consider Law’s proposals unfavourably.--Petition for permission to establish private bank granted.--Constitution of the Bank.--Its Success.--The “Pitt” diamond and its purchase.