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
Among those who were ruined in their fortunes at this time was one of
the directors of the Bank itself. A domiciliary visit, prompted by
one of his enemies, resulted in the discovery of 10,000 crowns, which
were confiscated. For failure to declare his hoard and deposit it in
the Bank he was fined 10,000 livres and lost his appointment. The
brothers Pâris were also among the sufferers. They were detected in
the act of conveying 7,000,000 livres into Lorraine, and a visit to
their residences brought into the coffers of the Bank an additional sum
of like amount. These confiscations and many others of more or less
substantial sums were published abroad in order to induce others to
conform to the edict from fear, and in many cases the prospect of loss
of fortune was regarded a less evil than possibility of discovery with
all its attendant penalties. There is in fact every reason to believe
that neither Law nor the Regent anticipated recourse to harsh measures
in carrying out their decree. They relied upon the fear which would be
created by its publication serving their purpose, and in order the
better to accomplish it arranged with several well-known prominent men
to allow themselves to become apparent victims. Thus were many of the
courtiers and public officials intimidated into divesting themselves of
their accumulated wealth, and into exchanging it for paper which was so
soon to lose its value. The largest capture which was made was that of
ex-Chancellor Pontchartrain whose cellars disgorged the enormous sum of
57,000 louis d’or or considerably over £10,000,000. The deep dislike
the Regent had for his own decree is also evinced by his conduct
towards the President Lambert de Vernon, who had sought an interview
for the purpose of informing against some one who was possessed of
500,000 livres in gold. On hearing his message, the Regent in horror
enquired, “What d--d sort of a trade have you taken to?” The President
replied, “Sir, I do nothing more than obey the law, and it is that
which you indirectly treat with such an appellation. As for the rest,
your Royal Highness need not be alarmed, and may do me more justice.
It is myself I come to inform against, in the hope of being allowed to
keep at least a part of this sum, which I prefer to all the bills of
the Bank.” As a result of his appeal, the President was allowed the
reward of an informer and permitted to retain half his fortune.
Public-domain text, read in full here on John Shaqi.
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