Interesting as had been the progress of the Company during the past year, the Bank which Law had founded had also undergone a great and momentous change. Since its institution in May, 1716, its operations had met with great success, and had secured the utmost confidence of the public, not only because of the soundness of the principles which dominated its administration, but also because of its careful and cautious management. The currency became more stable than it hitherto had been, and foreign trade developed where before it had been impossible by reason of the great uncertainty of the rates of exchange. The Regent, influenced by its success and labouring under the idea that this success could be permanently maintained even though its principal features were radically changed, determined to take control of Law’s bank, and convert it from a private into a royal institution. Accordingly, on 4th December, 1718, the General Bank of Law and Company was proclaimed a Royal Bank, to be administered in future by the King and his advisers. This change was opposed by Law, who, knowing the character of the Regent, foresaw the possibility of disastrous results, but the Duc d’Orleans had decided upon the step, and opposition was of no avail. The new ordinance was to come into force on 1st January, 1719. The King reimbursed in specie the holders of the shares, and guaranteed the due payment of the notes in circulation which at that date amounted to 59,000,000 livres. The proprietors, who had, as already seen, only paid one fourth of their holding in specie and the remaining three fourths in depreciated _billets d’état_, thus realised their investment in cash to the face value of their securities. Law was appointed Director-General of the Bank, acting under the instructions of the King through the Regent. Thus the King by this change became the sole proprietor of the Bank, and the dignity he conferred upon it secured it even more, if that were possible, in the good favour of his people.