The name of Law, director-general of the bank, led the list of directors nominated in the royal edict. On the death of Louis XIV. this famous Scotchman had offered his services to the Regent, and by ready wit and plausible arguments had convinced him that measures could be taken which would help the State carry the heavy load of debt with which it was burdened. The foundation, on the 2d of May, 1716, of a private bank of issue with a capital of 6,000,000 livres, was an experimental step. The shares of this bank were to be paid for, 25 per cent in coin and 75 per cent in the _billets d’état_. The redemption of each bank-note was promised in coin of the same weight and standard as the coinage of its date. At a time when changes were frequent in the weight and alloy of coin, this feature made the notes of the bank nominally more stable than the coinage of the realm. Law’s fundamental idea was that the prosperity of a community was proportionate to the amount of the circulating medium, and that good faith would cause paper to be preferred to coin for this purpose. In his communications to the Regent he recognized the relation of supply and demand to the subject. His proposition was to establish a government bank of issue which should act as the royal treasurer. The distrust of the Regent led him at first to decline this enterprise, but permission was given to Law to found a private bank. Under the conservative restrictions with which it was surrounded, the experimental bank was successful. The withdrawal of Crozat furnished opportunity to overcome the scruples of the Regent by substituting for the proposed royal bank a commercial company, whose stock, according to the original plan, was to be purchased exclusively with _billets d’état_, which, as before shown, were to be converted into 4 per cent _rentes_ payable half-yearly. An avenue was thus opened for the use of the _billets_. If holders availed themselves of it, the Government would not only be relieved from their pressure, but also from the discredit of their heavy discount. It was known that Crozat had abandoned the grant because he could not make money out of it. It was evident that capital and patience were necessary to develop the commerce of Louisiana. Of money the Company received none from original subscriptions to its stock, although by the terms of the edict the interest for the year 1717 was to be reserved as a working capital. Doubts as to whether this would be sufficient to develop the colony made investors wary at first of its subscription lists. It was soon found necessary to define the amount of capital stock. This was fixed at 100,000,000 livres by an edict registered in December, 1717. The grant in August, 1718, of the right to farm the tobacco, and the extension of this right from six to nine years in September of the same year, served to quicken popular interest in the Company.