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
The anti-scheme attempted by the brothers Paris, under the auspices
of D’Argenson, had been carried out to the extent of a lease of the
great revenue farms having been granted to Aymard Lambert, D’Argenson’s
valet-de-chambre, but had not been put into operation. Law now came
forward and secured the lease on behalf of the Western Company,
accomplishing the three-fold object of acquiring a valuable asset for
the company, relieving the taxpayers from the intolerable exactions
of the farmers, and, lastly, humiliating D’Argenson for the part he
took in the anti-scheme. The grant of the great farms was formally
made on 27th, and of the other departments of taxation on 31st August.
The treasury had derived from these sources the annual revenue of
48,000,000 livres, but Law offered a further sum of 3,500,000 livres
for the privilege which was to extend over a period of nine years. The
Company now declared its ability to pay a dividend of 200 livres upon
its shares, or 40 per cent. upon its capital. Such a declaration at
once counteracted the devices of Law’s opponents to lower the price
of the shares, and within a few days they rose to a premium of 1000
per cent., at which extravagant price it was even extremely difficult
to make substantial purchases. The demand was also created by the
condition that allotment of the recently issued shares would only be
in favour of those already possessed of stock. “The public,” says Lord
Stair, “has run upon this new subscription with that fury that near
the double of that sum is subscribed for; and there have been the
greatest brigues and quarrels to have place in the subscription, to
that degree, that the new submissions are not yet delivered out, nor is
the first payment received. Mr. Law’s door is shut, and all the people
of quality in France are on foot, in hundreds, before his door in the
Place Vendôme.”
Public-domain text, read in full here on John Shaqi.
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