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The Mississippi Bubble: A Memoir of John Law
The true story of a Scottish murderer, philanderer, gambler and abscondee who escaped his condemned cell in London to become the darling of the French economy, The Mississippi Bubble: A Memoir of John Law is an account of the euphoria and wealth Law created by engineering the first stock market boom, and the despair, poverty and destroyed lives that followed its inevitable crash. First published as The Mississippi Bubble: A Memoir of John Law. To Which are Added Authentic Accounts of the Darien Expedition, and the South Sea Scheme, this volume provides an authoritative historical analysis of the spectacular rise and fall of the most enigmatic genius in financial and economic history.
260 pages, Paperback
Published April 23, 2011
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About the author
Adolphe Thiers
1,464 books7 followersMarie Joseph Louis Adolphe Thiers was a French statesman and historian. He was the second elected President of France, and the first President of the French Third Republic.
Thiers was a key figure in the July Revolution of 1830, which overthrew the Bourbon monarchy, and the French Revolution of 1848, which established the Second French Republic. He served as a prime minister in 1836, 1840 and 1848, dedicated the Arc de Triomphe, and arranged the return to France of the ashes of Napoleon from Saint-Helena. He was first a supporter, then a vocal opponent of Louis-Napoléon Bonaparte (who served from 1848 to 1852 as President of the Second Republic and then called himself Emperor Napoleon III, reigning from 1852 to 1871). When Napoleon III seized power, Thiers was arrested and briefly expelled from France. He then returned and became an opponent of the government.
Following the defeat of France in the Franco-German War, which Thiers opposed, he was elected chief executive of the new French government and negotiated the end of the war. When the Paris Commune seized power in March 1871, Thiers gave the orders to the army for its suppression. At the age of seventy-four, he was named President of the Republic by the French National Assembly in August 1871. His chief accomplishment as president was to achieve the departure of German soldiers from most of French territory two years ahead of schedule. Opposed by the monarchists in the French assembly and the left wing of the Republicans, he resigned on 24 May 1873, and was replaced as President by Patrice de Mac-Mahon, Duke of Magenta. When he died in 1877, his funeral became a major political event; the procession was led by two of the leaders of the republican movement, Victor Hugo and Leon Gambetta, who, at the time of his death, were his allies against the conservative monarchists.
He was also a notable literary figure, the author of a very successful ten-volume history of the French Revolution, and a twenty-volume history of the Consulate and Empire of Napoleon Bonaparte. In 1834 he was elected to the Académie Française.
Thiers was a key figure in the July Revolution of 1830, which overthrew the Bourbon monarchy, and the French Revolution of 1848, which established the Second French Republic. He served as a prime minister in 1836, 1840 and 1848, dedicated the Arc de Triomphe, and arranged the return to France of the ashes of Napoleon from Saint-Helena. He was first a supporter, then a vocal opponent of Louis-Napoléon Bonaparte (who served from 1848 to 1852 as President of the Second Republic and then called himself Emperor Napoleon III, reigning from 1852 to 1871). When Napoleon III seized power, Thiers was arrested and briefly expelled from France. He then returned and became an opponent of the government.
Following the defeat of France in the Franco-German War, which Thiers opposed, he was elected chief executive of the new French government and negotiated the end of the war. When the Paris Commune seized power in March 1871, Thiers gave the orders to the army for its suppression. At the age of seventy-four, he was named President of the Republic by the French National Assembly in August 1871. His chief accomplishment as president was to achieve the departure of German soldiers from most of French territory two years ahead of schedule. Opposed by the monarchists in the French assembly and the left wing of the Republicans, he resigned on 24 May 1873, and was replaced as President by Patrice de Mac-Mahon, Duke of Magenta. When he died in 1877, his funeral became a major political event; the procession was led by two of the leaders of the republican movement, Victor Hugo and Leon Gambetta, who, at the time of his death, were his allies against the conservative monarchists.
He was also a notable literary figure, the author of a very successful ten-volume history of the French Revolution, and a twenty-volume history of the Consulate and Empire of Napoleon Bonaparte. In 1834 he was elected to the Académie Française.
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June 21, 2024
(1859)
p. 22, Ch 2 (Newton Page Publishing edition)
But, notwithstanding these measures, the difficulties were only postponed. The annual interest on the debt, reduced and readjusted, still amounted to eighty millions — that is to say, to about one-half the revenue. The royal stocks, converted into two hundred and fifty millions of national scrip, continued to be at a discount of from seventy to eighty per cent. Public and private credit were annihilated.
The regent, who wished to test the presbysynodic system of the Abbe St. Pierre, and divide the administration of government among several councils, had placed the Duke of Noailles at the head of the Council of Finance. The Duke proposed some very wise but very slow plans of economy. The exigencies of the situation demanded means for a more speedy extrication from the immediate difficulties. It was at this moment that Law presented his system. Law by no means despaired of France, the most fertile and most thickly populated country in Europe, as well as the most industrious. Although in a desperate situation for the moment, this beautiful kingdom still had three times the revenue of England. In order to revive industry, and relieve the oppressions under which it was ready to succumb, it was only necessary, according to Law, to reestablish confidence and a sound currency by means of a good system of credit.
The genius and enterprising spirit of the people rendered them peculiarly fit to adopt a new and grand theory. Repulsed by the late king, Law flattered himself that he should be well received by the regent. The Duke of Orleans was gifted with a keen, bold spirit; a foe to the prejudices from which he had suffered oppression in his youth, he had devoted himself to the study of the natural sciences, of chemistry and of alchemy, to such an extent even as to be accused of complicity with poisoners. He had studied above all, the principles of government. He knew Law, appreciated his genius, was pleased with his person, and admired his theories. A system, the principles of which were sound in part, and which could do no harm except by a misapplication of those principles, was certain to catch the adventurous spirit of the prince, and it had completely seduced him. The increasing independence of thought, the taste for novelty, the license of manners, results of a too sudden emancipation from a too rigid constraint, signally favored the experiment which was to change for a moment, the face of France.
Law did not propose any half-way measures. He offered his project entire; that is to say, a bank which should discount, should collect the national revenues, should carry on commercial monopolies, and afford, at the same time, a plentiful circulation of paper money and a means of profitable investment. The council of finance, composed of sagacious but timid men, did not comprehend the project of Law, or were frightened by it, and decided to reject it. Law then reduced the extent of his plans. He proposed simply a bank of discount, and even offered to .establish it at his own expense. He presented several memorials on the subject, which contain little to instruct us to-day, yet they are models of reasoning. He maintained that a bank would increase the currency by the issue of its notes, would render the remittances from one province to another more convenient, would reestablish confidence by the creation of money of a fixed value — bank money ; would permit foreigners to make their contracts in France with a basis of fixed and certain value, and would contribute by all these means to the restoration of public and private credit. Law wished to make this experiment at his own risk and peril, and offered his property as a guaranty against any loss which might result.
A member of the Parliament of Paris, discussing Law's project, raised some objections to it, which it is interesting to recall, as illustrating the history of the stagnating influence of routine. Among other inconveniences, he insisted that a bank could not redeem its notes if everybody should wish to realize them at the same time; its treasury would tempt the rapacity of government ; and, last of all, that its bills would incur a danger which attaches to paper, viz. that of being more easily lost, stolen, or burned than specie. This shows what sort of financiers Law had to do with. He answered these objections, and succeeded in convincing the regent. His plan of a bank of discount was adopted, and he was authorized to establish one at his own expense. The charter was issued by an edict of the second of May, 1716. The capital was fixed at six millions of francs, and was divided into twelve hundred shares of five thousand francs each. He was authorized to discount bills of exchange , to keep accounts with merchants, by means of what was then called a " bank clearing," and to issue notes payable to bearer in coin (so said the edict) of the *weight and denomination of that day*. Thanks to this last clause, the variations in the value of money were no more to be feared by those who should stipulate for bank money, since they were certain, thus to contract according to the rates of coin on the 2nd day of May, 1716. Beside, this guaranty offered to foreigners, there was another assured them ; the notes of the bank and the amounts on deposit were exempted from the right of confiscation. The offices were of, and in, the house of Law. The Duke of Orleans accepted the title of patron of the new institution.
Everything at this time made the necessity of a bank of discount apparent, whether it was the high rates for money, or the uncertainty in the value of coin. Thus the establishment of Law could not fail to succeed. The government was the first to make use of the notes ; it received and disbursed them. The holders of the bills, having found the greatest facility in realizing them at the bank, acquired confidence and diffused it. People began to be proud of this paper, so readily converted into specie and were glad to make use of it, on account of the promptness of payments which it introduced. It had, moreover, an advantage very much felt: that was, its redemption in coin of a fixed value. The constant variation in the price of coin rendered it uncertain upon what basis a contract was made. By stipulating for bank notes, it was certain that the contract was payable in coin in the weight and denomination of the 2nd of May, 1716. This was a powerful reason for everybody to contract with that stipulation, and even to deposit their specie at the bank to obtain the notes. Foreigners who had not dared to trade anymore with Paris, on account of the uncertainty of values, also contracted for bank notes, and resumed the current of their business with France.
The circulation thus, by degrees, became established. The moderate charge for discount also had a most beneficial influence. Usury diminished, credit revived. On the whole, at the end of one year, all the results predicted by Law, were, for the most part, accomplished.
These fortunate beginnings secured for him the favor of the public and the entire confidence of the regent. Soon this prince gave himself up entirely to the Scotch financier, and wished to procure him the means of putting all his plans in execution.
The first thing to do was to extend the connections of the bank and introduce its notes into the provinces, in order to change it from a special to a general bank. To accomplish this it was necessary that the notes sent into the provinces should there be converted into specie, or should be found of sufficient use to be retained there. It was this which was effected by the edict of 10th April, 1717, given one year after the establishment of the bank. By virtue of this edict, the notes could be given in payment of duties, and the farmers of the revenue their subordinates, the receivers, etc., in a word, the officers of the government treasury, were ordered to give receipts for their value in specie whenever they were presented. This was the best method of aiding the general bank, since the notes - sent into the provinces could be used there for the payment of taxes, or would be at once converted into specie. From this moment the bank notes were employed for all remittances from Paris to the provinces, and from the provinces to Paris.
It became useless to transport specie, for all of that which used to circulate from town to town was deposited either at the bank or the public treasuries, and exchanged for bank-notes, which were transmitted in their place. In this manner the general reserved fund of the bank was likely to be increased by all the specie which its notes would displace, and Law saw himself on the point of realizing his project of a vast banking establishment, having for a reserved fund all the specie of the country. The expenses of transportation were saved, circulation was accelerated, and Law had devised a very simple means of rendering it more safe ; it was to have the notes indorsed by those who sent them, the indorsement not to operate at all as a guaranty. This precaution prevented loss or theft, for the finder, or thief, could not use them. They immediately began to circulate throughout France in considerable sums. They were returned to the treasuries at Paris, covered with indorsements, and were immediately destroyed to be replaced by others.
The success of this bank was soon astonishing. With a capital of only six millions, it would issue fifty or sixty millions of notes, without confidence in it being in the slightest degree shaken. On the contrary, the demand for the notes increased every day, and the deposits of gold and silver increased ,perceptibly. If Law had devoted himself entirely to this institution, he would be considered one of the benefactors of our country, and the originator of a magnificent system of credit : but his impetuous nature, joined to that of the people among whom he operated, brought about, in a short time, a gigantic and disastrous imitation.
Law was now on the high road to fortune. The study of thirty years was brought to guide him in the management of his bank. He made all his notes payable at sight, and in the coin current at the time they were issued. This last was a master stroke of policy, and immediately rendered his notes more valuable than the precious metals. The latter were constantly liable to depreciation by the unwise tampering of the government. A thousand livres of silver might be worth their nominal value one day and be reduced one-sixth the next, but note of Law's bank retained its original value. He publicly declared, at the same time, that a banker deserved death if he made issues without having sufficient security to answer all demands. The consequence was, that his notes advanced rapidly in public estimation, and were received at one per cent more than specie.
It was not long before the trade of the country felt the benefit. Languishing commerce began to lift up her head, the taxes were paid with greater regularity and less murmuring ; and a degree of confidence was established that could not fail, if it continued, to become still more advantageous. In the course of a year. Law's notes rose to fifteen per cent, premium, while the billets d'etat, or notes issued by the government as security for the debts contracted by the extravagance of Louis XIV., were at a discount of no less than seventy-eight and a half per cent.
The comparison was so greatly in favor of Law, as to attract the attention of the whole kingdom, and his credit extended itself day by day — branches of his bank were almost simultaneously established at Lyons, Rochelle, Tours, Amiens, and Orleans.
*******
Table of Contents:
CHAPTER I.
Law's birth, parentage and education — His personal appearance and qualities — His early career in London — Duel and its consequences — His travels and financial studies on the Continent — Difference between money and wealth — Banks and banking — Paper money — Law not guilty of the errors attributed to him — His system of a general bank — His attempt and failure to establish a territorial bank in Scotland, 18
CHAPTER II
Law resumes his travels — His success at the gaming-table — Proposes his system to various governments — State of the French finances — Measures of the Regent — Debasing the coin — Its effect — Law offers his plans — Objections raised to it —Establishment of Law's private bank — Its favorable reception by the people — Its benefit to trade — Its extension into the provinces — Astonishing success, 85
CHAPTER III
Law's scheme of a commercial company — The Mississippi company — Jealousy of, and opposition to, Law — He is sustained by the Regent — The brothers Paris — The anti-system — Law initiates a speculation in stocks — Companies of the East and West Indies united— Shares rise rapidly - The rue Quincampoix— Stockbrokers — Run on the bank — Law triumphs over everything, 67
CHAPTER IV.
The national debt — Law's project for redeeming it — Caution necessary in executing the project — The collection of the revenue granted to Law's company — Arrangements for the assumption of the national debt by the company — General eagerness to subscribe for the shares — The nobility pay court to Law — Rage for speculation begins — Stock jobbing operations of the brokers 81
CHAPTER V.
Mistake in the details of the execution of Law's project — New privileges granted to the company — Speculation attracts all classed and affects all kinds of business — Foreigners arrive — Tricks of the brokers — Fortunes made in a few hours — Actual value of the shares — Law idolized — Anecdotes — His conversion — Courted by foreign governments — Continued success of the bank — Excessive luxury of speculators — Income of the company, 99
CHAPTER VI
Extravagant prices of goods — First decline of shares — Drain of specie from the bank — Forced measures resorted to — Attempts to revive confidence by adding new functions to the company — Letter to a creditor — Panic increases — Odious measures — Licentiousness of the realizers — Bank notes might and should have been disconnected from the shares — Violent and criminal plan, 125
CHAPTER VII
The bank and the company united — Price of the shares fixed — Measures for regulating the exchange of shares — Frightful depreciation of bank notes — Debtors the only persons benefited — Father betrayed by his son — Speculators dispersed by soldiers — Second ** "Letter to a Creditor" — Ingratitude of the Mississippians — Murder and robbery by a young nobleman — firmness of the Regent, 148
CHAPTER VIII
Circulation of gold prohibited — Reduction of the nominal value of shares and bank notes — Great clamor raised — Whole blame of the reduction falls on Law — Regent yields to the clamor — He retains Law in his favor — Law repeals some of the most obnoxious regulations — Measures to abolish the System — Difficulties in carrying them out, 159
CHAPTER IX.
"Spoils of the Mississippians"— Further efforts to bring in the notes — Men suffocated in the crowd at the bank — Mob pursue Law — He seeks protection at the palace of the Regent — Bank closed — Tampering with the currency — Severities toward the Mississippians — Final abolition of the System— Law quits France —Confiscation of his property, 179
CHAPTER X.
Recapitulation — Comparison between this and other financial catastrophes—Reflections, 205
The Darien Expedition, 281
Notes to Darien Expedition, 262
Enthusiasm of the Scotch, 264
Difficulties at the Start, 264
Opposition of the English, 266
Opposition of the Dutch, 266
Disastrous Result, 267
The South Sea Bubble,. 261
Notes to South Sea Bubble, 888
https://archive.org/details/mississip...
p. 22, Ch 2 (Newton Page Publishing edition)
But, notwithstanding these measures, the difficulties were only postponed. The annual interest on the debt, reduced and readjusted, still amounted to eighty millions — that is to say, to about one-half the revenue. The royal stocks, converted into two hundred and fifty millions of national scrip, continued to be at a discount of from seventy to eighty per cent. Public and private credit were annihilated.
The regent, who wished to test the presbysynodic system of the Abbe St. Pierre, and divide the administration of government among several councils, had placed the Duke of Noailles at the head of the Council of Finance. The Duke proposed some very wise but very slow plans of economy. The exigencies of the situation demanded means for a more speedy extrication from the immediate difficulties. It was at this moment that Law presented his system. Law by no means despaired of France, the most fertile and most thickly populated country in Europe, as well as the most industrious. Although in a desperate situation for the moment, this beautiful kingdom still had three times the revenue of England. In order to revive industry, and relieve the oppressions under which it was ready to succumb, it was only necessary, according to Law, to reestablish confidence and a sound currency by means of a good system of credit.
The genius and enterprising spirit of the people rendered them peculiarly fit to adopt a new and grand theory. Repulsed by the late king, Law flattered himself that he should be well received by the regent. The Duke of Orleans was gifted with a keen, bold spirit; a foe to the prejudices from which he had suffered oppression in his youth, he had devoted himself to the study of the natural sciences, of chemistry and of alchemy, to such an extent even as to be accused of complicity with poisoners. He had studied above all, the principles of government. He knew Law, appreciated his genius, was pleased with his person, and admired his theories. A system, the principles of which were sound in part, and which could do no harm except by a misapplication of those principles, was certain to catch the adventurous spirit of the prince, and it had completely seduced him. The increasing independence of thought, the taste for novelty, the license of manners, results of a too sudden emancipation from a too rigid constraint, signally favored the experiment which was to change for a moment, the face of France.
Law did not propose any half-way measures. He offered his project entire; that is to say, a bank which should discount, should collect the national revenues, should carry on commercial monopolies, and afford, at the same time, a plentiful circulation of paper money and a means of profitable investment. The council of finance, composed of sagacious but timid men, did not comprehend the project of Law, or were frightened by it, and decided to reject it. Law then reduced the extent of his plans. He proposed simply a bank of discount, and even offered to .establish it at his own expense. He presented several memorials on the subject, which contain little to instruct us to-day, yet they are models of reasoning. He maintained that a bank would increase the currency by the issue of its notes, would render the remittances from one province to another more convenient, would reestablish confidence by the creation of money of a fixed value — bank money ; would permit foreigners to make their contracts in France with a basis of fixed and certain value, and would contribute by all these means to the restoration of public and private credit. Law wished to make this experiment at his own risk and peril, and offered his property as a guaranty against any loss which might result.
A member of the Parliament of Paris, discussing Law's project, raised some objections to it, which it is interesting to recall, as illustrating the history of the stagnating influence of routine. Among other inconveniences, he insisted that a bank could not redeem its notes if everybody should wish to realize them at the same time; its treasury would tempt the rapacity of government ; and, last of all, that its bills would incur a danger which attaches to paper, viz. that of being more easily lost, stolen, or burned than specie. This shows what sort of financiers Law had to do with. He answered these objections, and succeeded in convincing the regent. His plan of a bank of discount was adopted, and he was authorized to establish one at his own expense. The charter was issued by an edict of the second of May, 1716. The capital was fixed at six millions of francs, and was divided into twelve hundred shares of five thousand francs each. He was authorized to discount bills of exchange , to keep accounts with merchants, by means of what was then called a " bank clearing," and to issue notes payable to bearer in coin (so said the edict) of the *weight and denomination of that day*. Thanks to this last clause, the variations in the value of money were no more to be feared by those who should stipulate for bank money, since they were certain, thus to contract according to the rates of coin on the 2nd day of May, 1716. Beside, this guaranty offered to foreigners, there was another assured them ; the notes of the bank and the amounts on deposit were exempted from the right of confiscation. The offices were of, and in, the house of Law. The Duke of Orleans accepted the title of patron of the new institution.
Everything at this time made the necessity of a bank of discount apparent, whether it was the high rates for money, or the uncertainty in the value of coin. Thus the establishment of Law could not fail to succeed. The government was the first to make use of the notes ; it received and disbursed them. The holders of the bills, having found the greatest facility in realizing them at the bank, acquired confidence and diffused it. People began to be proud of this paper, so readily converted into specie and were glad to make use of it, on account of the promptness of payments which it introduced. It had, moreover, an advantage very much felt: that was, its redemption in coin of a fixed value. The constant variation in the price of coin rendered it uncertain upon what basis a contract was made. By stipulating for bank notes, it was certain that the contract was payable in coin in the weight and denomination of the 2nd of May, 1716. This was a powerful reason for everybody to contract with that stipulation, and even to deposit their specie at the bank to obtain the notes. Foreigners who had not dared to trade anymore with Paris, on account of the uncertainty of values, also contracted for bank notes, and resumed the current of their business with France.
The circulation thus, by degrees, became established. The moderate charge for discount also had a most beneficial influence. Usury diminished, credit revived. On the whole, at the end of one year, all the results predicted by Law, were, for the most part, accomplished.
These fortunate beginnings secured for him the favor of the public and the entire confidence of the regent. Soon this prince gave himself up entirely to the Scotch financier, and wished to procure him the means of putting all his plans in execution.
The first thing to do was to extend the connections of the bank and introduce its notes into the provinces, in order to change it from a special to a general bank. To accomplish this it was necessary that the notes sent into the provinces should there be converted into specie, or should be found of sufficient use to be retained there. It was this which was effected by the edict of 10th April, 1717, given one year after the establishment of the bank. By virtue of this edict, the notes could be given in payment of duties, and the farmers of the revenue their subordinates, the receivers, etc., in a word, the officers of the government treasury, were ordered to give receipts for their value in specie whenever they were presented. This was the best method of aiding the general bank, since the notes - sent into the provinces could be used there for the payment of taxes, or would be at once converted into specie. From this moment the bank notes were employed for all remittances from Paris to the provinces, and from the provinces to Paris.
It became useless to transport specie, for all of that which used to circulate from town to town was deposited either at the bank or the public treasuries, and exchanged for bank-notes, which were transmitted in their place. In this manner the general reserved fund of the bank was likely to be increased by all the specie which its notes would displace, and Law saw himself on the point of realizing his project of a vast banking establishment, having for a reserved fund all the specie of the country. The expenses of transportation were saved, circulation was accelerated, and Law had devised a very simple means of rendering it more safe ; it was to have the notes indorsed by those who sent them, the indorsement not to operate at all as a guaranty. This precaution prevented loss or theft, for the finder, or thief, could not use them. They immediately began to circulate throughout France in considerable sums. They were returned to the treasuries at Paris, covered with indorsements, and were immediately destroyed to be replaced by others.
The success of this bank was soon astonishing. With a capital of only six millions, it would issue fifty or sixty millions of notes, without confidence in it being in the slightest degree shaken. On the contrary, the demand for the notes increased every day, and the deposits of gold and silver increased ,perceptibly. If Law had devoted himself entirely to this institution, he would be considered one of the benefactors of our country, and the originator of a magnificent system of credit : but his impetuous nature, joined to that of the people among whom he operated, brought about, in a short time, a gigantic and disastrous imitation.
Law was now on the high road to fortune. The study of thirty years was brought to guide him in the management of his bank. He made all his notes payable at sight, and in the coin current at the time they were issued. This last was a master stroke of policy, and immediately rendered his notes more valuable than the precious metals. The latter were constantly liable to depreciation by the unwise tampering of the government. A thousand livres of silver might be worth their nominal value one day and be reduced one-sixth the next, but note of Law's bank retained its original value. He publicly declared, at the same time, that a banker deserved death if he made issues without having sufficient security to answer all demands. The consequence was, that his notes advanced rapidly in public estimation, and were received at one per cent more than specie.
It was not long before the trade of the country felt the benefit. Languishing commerce began to lift up her head, the taxes were paid with greater regularity and less murmuring ; and a degree of confidence was established that could not fail, if it continued, to become still more advantageous. In the course of a year. Law's notes rose to fifteen per cent, premium, while the billets d'etat, or notes issued by the government as security for the debts contracted by the extravagance of Louis XIV., were at a discount of no less than seventy-eight and a half per cent.
The comparison was so greatly in favor of Law, as to attract the attention of the whole kingdom, and his credit extended itself day by day — branches of his bank were almost simultaneously established at Lyons, Rochelle, Tours, Amiens, and Orleans.
*******
Table of Contents:
CHAPTER I.
Law's birth, parentage and education — His personal appearance and qualities — His early career in London — Duel and its consequences — His travels and financial studies on the Continent — Difference between money and wealth — Banks and banking — Paper money — Law not guilty of the errors attributed to him — His system of a general bank — His attempt and failure to establish a territorial bank in Scotland, 18
CHAPTER II
Law resumes his travels — His success at the gaming-table — Proposes his system to various governments — State of the French finances — Measures of the Regent — Debasing the coin — Its effect — Law offers his plans — Objections raised to it —Establishment of Law's private bank — Its favorable reception by the people — Its benefit to trade — Its extension into the provinces — Astonishing success, 85
CHAPTER III
Law's scheme of a commercial company — The Mississippi company — Jealousy of, and opposition to, Law — He is sustained by the Regent — The brothers Paris — The anti-system — Law initiates a speculation in stocks — Companies of the East and West Indies united— Shares rise rapidly - The rue Quincampoix— Stockbrokers — Run on the bank — Law triumphs over everything, 67
CHAPTER IV.
The national debt — Law's project for redeeming it — Caution necessary in executing the project — The collection of the revenue granted to Law's company — Arrangements for the assumption of the national debt by the company — General eagerness to subscribe for the shares — The nobility pay court to Law — Rage for speculation begins — Stock jobbing operations of the brokers 81
CHAPTER V.
Mistake in the details of the execution of Law's project — New privileges granted to the company — Speculation attracts all classed and affects all kinds of business — Foreigners arrive — Tricks of the brokers — Fortunes made in a few hours — Actual value of the shares — Law idolized — Anecdotes — His conversion — Courted by foreign governments — Continued success of the bank — Excessive luxury of speculators — Income of the company, 99
CHAPTER VI
Extravagant prices of goods — First decline of shares — Drain of specie from the bank — Forced measures resorted to — Attempts to revive confidence by adding new functions to the company — Letter to a creditor — Panic increases — Odious measures — Licentiousness of the realizers — Bank notes might and should have been disconnected from the shares — Violent and criminal plan, 125
CHAPTER VII
The bank and the company united — Price of the shares fixed — Measures for regulating the exchange of shares — Frightful depreciation of bank notes — Debtors the only persons benefited — Father betrayed by his son — Speculators dispersed by soldiers — Second ** "Letter to a Creditor" — Ingratitude of the Mississippians — Murder and robbery by a young nobleman — firmness of the Regent, 148
CHAPTER VIII
Circulation of gold prohibited — Reduction of the nominal value of shares and bank notes — Great clamor raised — Whole blame of the reduction falls on Law — Regent yields to the clamor — He retains Law in his favor — Law repeals some of the most obnoxious regulations — Measures to abolish the System — Difficulties in carrying them out, 159
CHAPTER IX.
"Spoils of the Mississippians"— Further efforts to bring in the notes — Men suffocated in the crowd at the bank — Mob pursue Law — He seeks protection at the palace of the Regent — Bank closed — Tampering with the currency — Severities toward the Mississippians — Final abolition of the System— Law quits France —Confiscation of his property, 179
CHAPTER X.
Recapitulation — Comparison between this and other financial catastrophes—Reflections, 205
The Darien Expedition, 281
Notes to Darien Expedition, 262
Enthusiasm of the Scotch, 264
Difficulties at the Start, 264
Opposition of the English, 266
Opposition of the Dutch, 266
Disastrous Result, 267
The South Sea Bubble,. 261
Notes to South Sea Bubble, 888
https://archive.org/details/mississip...
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August 24, 2025i have been told to be leery of johnny law my whole life.
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