y ” nnwWv< 1 ■■ 1
lie aided hiin, in the present instance, In
fortify the.mind of (lie Uegent '.against all
Tlie remoas ranees of his'ministers and llic
parliament. ’ ■ ■ •
Accordingly on the 2d tif Slay, 1716, let
ters j> itent vin e granted t.) Law, to establish
a bank u! depa.iie, discount and circulation,
tinder -lira lirni of •’Lnv • tniii
continue for twenty years. The capital was
lixedal six millions’ of liyres, yliyided, intiy
shares of five hundrednivres each, which
were to he sold far twenty-live per cent, ol
the* Hcgeut’s li abased coin,'and seventy-live
percent, of tile public securities, which were
llicn.al'a great redaction from (heir nominal
viilne, and which (ben,amounted toinneteen
hninlred-millions, The ostensible object ol
the bank, as set'furtli in the patent,..was to
• ■ncourage the commerce ami tnannlactlires
of j'raiiec. 't he louis d’ors anil crowns of
ihe. bank were always to retain the same
standard ol value, and its hills to he payable
in. (belli on demand. - - ■
At the onset; eh'iie (he hank was limited
in its operatinns,’and whileils paper really
represented the specie, in its vaults, it seem
ed lo ioaliv.u all that had hecn promised from
it. It rapidly acquired public confidence,
and-an-ex tended-circulation,--and-prod need
an activity in commerce, unknown under
the. baneful government of lands XIV. • As
the hills of the bank bore an interest, and as
it was stipulated they would he of invariable
value, and as hints had Ir-en artfully circu
lated that tlie coin would experience suc
cessive diminution, every body hastened lo
the hank to exchange gold and silver for pa
per. So great became the throng of deposi
tors, ami so intense their eagerness, that
there was quite a press and struggle at (he
backdoor, ami a judicrons panic was awa
kened, as if (here was danger of their not
being admitted. An anecdote of Ihe time
relates, (hat one of ’the clerks’, with an o
nilmi'ns smile, called out to the struggling
multitude, “Have, a little patience, .my
friends; we mean to take all your money; an
assertion disastrously verified in,the sequel.
Thus, liy the simple ah 1 irfh mimit ol a
hank, I.aw anil llie Regent obtained pledges
ol'. cimlideiiec I'm* the consummation of
farther and mine complicated schemes, as
yet hidden (com the public. Jn a little
while (lie hank shares rose enormously, and.
the amount of its notes in circulation ex
ceeded one hundred am,! ten millions of
. l*ivres. A subtle stroke of policy had ren
dered it popular with the aristocracy. Louis
Xj V, ijnposcpl
an-income (as of* a’'tenth, giving his royal
word that it should cease in 171". This
(ax had been exceedingly irksome to (he
privileged orders: and, in the’"present dis
astrous times, they had dreaded an augmen-*
tation of it. In consequence of the suc
cessful operation of Law’s scheme, however,
llie tax was abolished, and now nothing was
to he hoard among the nobility ami clergy,
but praisss'of the Regent and the bank.
Hitherto, all had'.gone w,ell, and all might
have continued logo well, had not the paper
system been f.trthel* expanded. But Law ,
had yet the grandest part of his scheme toJ
developc. lie had to open ideal world
of speculation, his Kl Dorado-oi Unbounded
weal.tli. The English had brought*the vast
imaginary commerce of the South Seas in
aid of their blinking operations. Law sought j
to bring, as. an immense auxiliary of Ids ,
blink, the whole trade of the Mississippi.
Under (his.name was included not merely
the river m called, but the vast region known
us Louisiana, extending from north latitude
29 deg. up to Canada in north latitude 40
deg. This country had been* granted by
Louis XIV. to the Sienr Cro7.at,* but he had
been induced to resign his patent. In con
formity to (he plea of Mr. Law, letters pa
tent were* granted in August, 1717, for (life
creation of , a commercial company, which
was to have the coloni7.ing.nf this country,
and the monopoly' of its trade and resources,
and of the heaver or fur trade with Canada.
It was called the Western, but became bet ter
know as the Mississippi Company. The
capital was fixed at
livrcs'i divided* into shares, hearing an inte
rest of.Tuur percent., which were subscribed
for in the public, securities. As the bank
was to co-operate with (he company, the*
regent ordered that its hills should be re
ceived the same ns coin, in all payments of
the public revenue. Law was appointed
chief director of'tllis company, which was
an exact copy of the Earl of Oxford’s South
Sea Company*, sot on foot in 1711, arid
which distracted all England with the frenzy
'■■of speeulation. In like'manner with (he
•delusive picturing? given in that memorable
scheme of the. sources of rich trade to be
opened in tho South Sea countries, Law
held forth.magnificent prospects of llie for
tunes to be made in colonizing Louisiana,
which was-represented as a veritable land of
-promise, capable of yielding every variety
of the most precious produce. Reports, too,
Were artfully circulated with groat-mystery,
as if fp the “ chosen few,” of mines of gold
and silver recently discovered, in Louisiana,
and which would insure iftstant wealth to
tire early' purchasers.-: These confidential’
whispers of course soon bccaipe 1 public; and .
were confirmed by travellers fresh from the
Mississippi rantl--(lo»btlos»hiibeil,wholuuJ
seen the mines in'question,’ and declared
them superior in richness to those of Mexico
and Peru. , Nay more,“ocular proof was
(urnlshed to public credulity,''-in ingots of
gold, conveyed to (he iuint,as if just brought
Irom the mines of LbuisinpaV
ywExtraordihary measures Were adopted to
force a colonization..- An edict was issued
In cnllest arid transport settlors to the Miss
issippi. The police lent its .aid. . .The
streets and prisons of ILrls/aml oL thc
provincial cities, were swept iiL mendicants
and vagabonds of all kinds, whn were'con
veyeil to Havre de Grace. .About six thou-,
.‘.and'were crowded into aldps, where '.no
. precautions had. been, taken for their health,
or accommodation. ; Insti llinentsirif all kimk
proper for (he working of mines were oaten'
m t mushy paraded -5 n public, and, put on* board
f;'.,e vc'f.seis;’;a.lid the-whole set sail forthis
(hiilod Eh 'Docnflii, which was '(it prove;;the
* g.'iis.oAof ' the geeafe'r part of itv. wretched
colonist?... ■*..*.,’, i
*i)'A.'ngoe.4se:iu,, the chancellor,, J) man., of
' probity .iUid 'iritegnlyi .slit 1 lifted his.voice
v.agairist the' paper system--of Law,-ami his
project of. i.uhmiz iCion; and was eloquent
1 a-iiii prophetic--inpicturing lhe7ey,ils',-tlicy..
vverb calculated to .produce ; the private
distress arid* public, degradation ; the cov-.
ruption of morals and manners; the triumph
■ of- knaves and schemers ; the ruin of for
tunes arid downfall of families, He was
I incited more ami more to (his opposjtiun hy
the Duke do Npaillcs, the. Minister of Ri
hance, who was jealous of the growing as
cendency of I;aw over the mind ot (he Re
gent, but was less honest than the chancel
lor in his opposition. • Ihe Regent wiis
excessively annoyed by flic difficulties they
cotijlircd up in the way-ofhis darling-schemes
of finance, and the countenance (hey gate
to the opposition of parliament, which body ,
disgusted more'and more with the abuses of
the regency, and the system of, Law, had
gone so far ns to carry its remonstrances to
the very foot of the throne.
■ lie determindd to relieve himself from
-these two ministers,-who, either thrhugh
honesty or policy, interfered with all his
plans.. Accordingly, on the 28th of-Janu
ary, 17"18, he dismissed the chancellor from
office, and exiled him to his estate in (he
country; riiid shortly afterwards, removed
the Duke dc Noailles from the administra
tion of the finances.' .
Theopposilion of parliament to the-Re
gent and his measures, was carried on with
increasing violence. That body aspired to
an equal authority with the Regent, in the
administration of affairs, and pretended, by
its decrec, (o sospeiul-an edictof the regency,
ordering a new coinage, and altering the
value of (he currency. Hut its' chief hos
tility was levelled against Law, a foreigner
and a heretic; and one who was considered
by a majority of the metnbers in the light of
a malefactor. In fact, so far was this hos
tility carried, that secret measures were
taken to investigate his-malversations, and
to collect evidence against him ; and it was
resolved in parliament that, should the tes
timony collected justify their suspicions,
they would have him seized and brought
before them ; would give him a brief- trial,
and, if convicted, would hang him in the
court yard of the palace, and throw'open
the gates after the execution, that the public
might behold his corpse !
Law received intimation of the danger
hanging over him,and was in terrible trepi
dation. He look refuge in the Palais Royal,
the residence of (he Regent, and implored
his protection. The Regent himself em
barrassed by the sturdy opposition of
ment, which contemplated nothing less than
a decree reversing most of his public mea
sures, especially those of Jlnajnce. His
decision kept-Law fur a lime in an agony-of
terror and suspense. Finally, by assembling
a board of justice, and bringing to his aid
the absolute authority of the king, he tri
umphed over parliament, and relieved Law
from his dread of being hanged. '
The system now went on witli flowing
sail. The Wosternror Mississippi company,
being identified with the bank, rapidly in
creased in power and privileges. , One mo
nopoly after another was granted to it; the
trade of.the Indigo seas; the slave trade
with Senegal and Guinea; the fanning of
tobacco; the national coinage, &c. Each
new privilege was made a pretextfor-issuing
more.bills, and caused an immense advance
in the_pricc of stock. At length, on the
4th of Dcceiober| : l"]8, the Regent gave
the establishment the imposing title of The
Royal Rank, and proclaimed that'he had
effected the purchase of all the shares, (he
proceeds of which he had added to its capi
tal.* This measure seemed ‘to shock the
public fueling mure than any other connected
with the system, and roused the indignation
of parliament. The French nation had been
go accustomed to attach an idea of every
thing noble, .lofty, and magnificent, to tho
royal name and person, especially during
(lie stately and sumptuous reign of Louis
XIV., that they could not at first tolerate
the idea of royally being in any dcgrac
mingled with matters.of traffic and finance,
and the king being in a manner a banker.
It was oho of (he downward steps, however,
by which royalty lost its illusive' splendor
in France, and became gradually cheapened
in'the public mind.
Arbitrary measures now began to be taken
to force the bills of the bank into artificial
currency. OtT(he 27th of llcccnlbe'r, ap
peared an order in-council forbidding, under
severe penalties, the payment of any sum
above six hundred Irvrcs in gold or silver.
This“decrce rendered batik bills necessary
in ail transactibns of purchase and safe, and
called for a new emission. The prohibition
was occasionally evaded or opposed; con
fiscations were the consequence; informers
were rewarded, and spies and traitors began’
to spring up in all the domestic walks of life.
The worst effect of this illusive system
was the mania for gain, or rather for gamb
ling in stocks, that now seized upon the
whole nation. Under the exciting effects
‘of lying'reports, ami the forcing effects of
government decrees, the shares of the com
pany went on rising in value, .until they
reached,thirteen hundred per cent. Nothing
was now spoken-of but the price of shares
and the immense fortunes suddenly made
by- lucky speculators. Those whom Law
had deluded, used every mcans.lo delude
others. The most extravagant dreams were
indulged concerning the wealth to flow in
upon tlic Company' from-its. colonies, its.
trade, and its various monopolies, It is (rue
nothing us yet bad. been realized, nor could
in Bome-time T be realized,“frora-these diatant
sources, even if productive, hut the imagina
tions ,o( speculators are ever in the advance, .
and their conjectures are immediately con
verted into fcets. .. Lying reports now flew,
from 'mouth to mouth, of sure ave'hues to
fortune suddenly thrown open. The more
extravagant the fable, the more rcadilywas
it believed.. To doubt, was to'awaken anger,
or incur ridicule.' In a time of public, infatu
ation, it requires ho small excreisc of courage
to doubt a popular laVlacy. .-:::.
■ Paris now became the centre of attraction
for -the* adventurous and ’avaricious, -who
flocked to it, not merely front'the.provinces,
but from the neighboring countries; ; A stock
exchange waby established
Rue Quincampoix, and became immediately
the'gatheringplaceof,Btnck-jobher3.''The
exchange opened at.T olclocki with the beat
of-drum andsound Wf bell, ; andclosed at
night with the same signals. Guards-were
statiojted.ateach end of (lie street to main>
I a i iuir.il cr,and ex c 1 rid e carriages and horses.
.The 1 -. whole -street swarmed throughout.the
day likea-bec-hive.' Rargairis of all kinds
were Scizyd tiphn with avidity. .Shnresol
stock paaavd from hand to,hand, mounting in
yaluir.iine knew not why. Fortunes' Were
made lit a.mumehtVas if by tiiegic; and every
lucky bargain prompted, those arbOnd to a
tnor,e desperate throw of the die 1 . -The fever
-went-on, increasing in intensity Vs'thV’dity
declined; fitrd'whcn the drum; bejit and thel
bell rang at night, to close (hq exchange;
there were exclamations of impatience and
despair, ns if the wheel of fortune had sud
denly been stopped, when aboilt to make its
luckiest revolution.-
Toengalfiill classes in this ruinous vortex.
Law now split the shares of fifty millions of
stock each into one hundredsharcs; thus, as
in the splitting of lottery .tickets, accommo
dating the venture to the humblest purse.—
Society- wns thuS stirfeil up to if s'Wry dregs,
and adventurers of the lowest order hurried
to the stock market. All honest;"industri
ous pursuits, and modest gains, were now
'despised. Wealth was to b 6 obtained in
stantly, without labm-, and without stint.—
The upper classes were as base in, their ve
nality as (he lower.. The highest and most
.powerful nobles, abandoning all generous
pursuits and-lofty alms," engaged 'in the vilt
scufile for gain. They were even baser than
the lower, classes; for some of them, who
\vcre members of the council of the regency,
abused their station and their influence, and
promoted measures by which shares arose
while in their hands, and they, made immense,
profits.
The Duke de Bourbon, the Prince of Con
ti; (ho-Dukcs de-la-Force and- D’A-ntin-wcre
among the foremost, of these illustrious stock
jubbeis. They were nick-named the Miss
issippi Lords, and they smiled at the sneering
title,. In fact, the usual distinctions of
society had lost their consequence under the
reign of this new passion. ..Rank, talent,
military fame, no longer inspired defcrence.
All respect for others, all self-respect, were
forgotten in the mercenary struggle of the
stock- market. Even prelates and ecclesi
astical corporations, forgetting their true
objects of devotion, mingled among the vo
taries of Mammon. They were not behind
those who wielded the civil power in fabri
cating ordinances suited to (heir avaricious 1
purposes. Theological decisions forthwith
appeared, in which the anathema launched
by the church against usuiy, was convenient
ly .construcd.a?.not extending to the traffic
in bank shares 1
The Abbe Dubois entered into (lie mys
teries of stock-jobbing with at) the /.cal of an
apostle, and enriched himself by the spoils
of the credulous; and be continually drew
large sums from Law, as considerations fur
his political influence. Faithless to his coun
try,.in the course ofbis gambling speculations
he transferred to England a great amount of
specie, which had been paid into the royal,
treasury; thus conlributing.to the subsefiucnt
tleart'lToT(Be praHbuslncjlati.
The female sex participated in this sordid
frenzy. Princesses of the blood, and ladies
of the highest nobility, were among the most
rapacious of the stock-jobbers. The Regent
sceiricd-to. have the riches of Croesus at, his
command,-and lavished mono \Tiyliuml reds
of. thousands upon his -female relatives and
favorites, as well as upon his roves, the dig;.
Solute companions of his debauches. “My
son,” writes the Regent’s'mother,-in her
correspondence, “gave me shares to the a
niount of two, millions, which I distributed
among my household. The King also took,
several millions for his own houshhold. All
the royal family have had them; all the chil
dren and grand-children of'France, and the
princes of the blood.”
Luxury and extravagance kept pace with
this sudden inflation offancicd wealthy The
hereditary palaces of nobles were pulled
down, and rebuilt on a scale of augmented
splendor. Entertainments were given of
incredible cost and magnificence. Never
before had been suclrdisplay in houses, fur
niture, equipages and amusements. This
was particularly,the case among persons of
the lower ranks, who had suddenly become
possessed of millions.. Ludicrous anecdotes
are related of some of these upstarts. One
who had just launched a splendid carriage,
when about to use it for the first time, in
stead of getting in at the door, mounted,
through, habitude, to his accustomed place
behind. Some ladies of quality, seeing a,
well-dressed woman covered with diamonds
but wlioni nobody knew, iilight frorh a very
handsome carriage, inquired who she was, of
the footman. He replied, with a sneer: “It
is a lady who has recently tumbled from a
garret into "tbis carriage.” - Mr. Law’s do
mestics were said to become in like manner
enriched by the crumbs which fell from his,
table. His coachman, having, made a for
tune, retired from his service. Mr. Law
requested ,him to procure a coachman in his
place. He appeared the next day with two,
whom he pronounced equally good, and told
Mr. Law, “Take which of them you choose,
and I will take the other!”.
Nor were these novi homini treated .with
the distance and disdain they would formerly
have,experienced from the. haughty aristoc
racy of France. The pride of the old noblesse
had been.stifled by the stronger instinct of
avarice. They rather sought the intimacy
and confidence of these lucky upstarts; and
it'has been observed that a nobleman would
gladly take his seat at the table of the for
tunate. lacquey of yesterday in hopes Of
learning from him the secret of growing rich!
.Law now went about with a countenance
radiant with success,-and apparently dis
pensing wealth on every side. VHe is’ad
mirably skilled in-allthatrelates to finaficc;”
writes the Duchess of Orleans, the Regent’s
.mother, and has put the affairsof the State
in such good, order, that all'the king’s debts
have been paid: He is so much run' after,
that he has no repose night or day. A Duch
ess even kissed his hand publicly. If a
Duchess can do this, -what will other ladies
do!” .
Wherever lie-went, his path we are, told,
was'beset hya sordid throng, who waited to
see him pass, and sought to obtain-the. favor
of a . word, a nod, :or smile, as if a .mere
glance from him would bestow fortune.—
VVijen at" home, his house was absolutely
besieged by furious candidates for .fortune.
"-They forced the doors,’.’ -says the Duke de
Bt, Simon; "they scaled his windows from
the garden; ,7 they uiadeitheir, way into his
cabinet db\yh the ichimheyf”
: The same venal:--court vvas paid by all
classes to his family. The highest ladies-of
the court vied with each otl)er.in meannesses,
to purchase the lucrative
Law and her daughter. ■ ■'llieyiWMtSiyupon'
them .with sis much assiduity:and >addlaitioff
as if they had been princesses of-the bloody
The,Urgent otic. day-cs pressed a desire that
some Duchess should accompany his dauglij
ter to Genoa, “My Lord,” said some one:
present, "if you would have ahchoice from
among the Duchesses, you riecd-huCsend. to
.Alrsv.L'awj'yuu will fiutl them all assembled
there,” ’ ‘ -•
The Wealth of I. aw rapidly increased'With;
the expansion of the bubble. In the course
of a few months he purchased fourteen titled
estates,, paying for; them rn papcli-nnd -the
public hailed, these sudden and vast acqui
sitions'of landed property a's so many proofs
of the soundness of his system. In qnejn
sthnitedie tfeet with a shrewd bargainer, who
had riot the general faith in his paper money.
The President de Norvinn insisted on being
paid for“an estate in hard coin. Law accor
dingly brought the amount,, four thousand
livres, in specie, saying, >vith a sarcastic
smile, that ha preferred paying in money, a»
its weight rendered it a .mere incumbrance.
As it happened, the President could give no
clear title to (he land, and the money had
to lie refunded. Hc paid it back in paper,
which. Law dared not refuse, lest 1 he should
depreciate it in the market!
The course of illusory credit went on
triumphantly for eighteen months.. Law had
nearly fulfilled one of his promises, for the
greater part of the public, debt had been paid
off; but h'ow paid? In bank shares, which
had been’trumped up several hundred per
cent, pbove their value, and which were tij
vanish like.smoke in the hands of the holders.
• —Oneofthcmost striking attributes of Law
was the imperturable assurance and self
possession with which he replied to every
objection, and found a solution for every
problem. Ilchad the dexterity of a juggler
in evadingdifficulties; and what was peculiar,
made figures themselves, which arc the very
elements of exact demonstration, the means
'to dazzle and b'cwildtVk
Towards (he latter end of ITI9, t!ie Miss
issippi scheme had reached its point of glory.
Haif a million of strangers had crowded into
Paris, in quest of fortune. The hotels, and
lodging-houses were overflowing; loggings
Were procured with excessive difficulty;
‘granaries were turned into bed-rooms; pro
visions had risen enormously in price; splen
did houses were multiplying on every side;
(he streets were crowded with carriages; a -
bovc. n thousand new equipages liad been
launched.
On the eleventh of December, Law ob
tained another prohibitory decree, for the
purpose of sweeping all the remaining specie
-Ml.circulation into the bank. By this it was
forbidden to.make-any' payment in silver
abave.ten livres, or in gold, above three liun
dred. • 1
The repeated decrees of this nature, the
object of which was to depreciate the .value
of , gold, and increase .the illusivecredit of
pii per, began to hwhakiTh cfotfßVff of'h system
which required such bolste'ring. Capitalists
gradually awoke from their bewilderment.,
Sound amiable financiers consulled together;
and agreed to make common cause against
this con.tinuaLexpansion of -.1; paper .system.
The shares of the bank and of the company
Ifegan to decline in value. Wary men took
(he alarm, and began to realize, a word now
first-brought into use,to express the conver
siorKqf it/cff/.pfoperty iuto somelliing real.
Tile Prince of Conti, one of .theJ. most
prominent and grasping of the Mississippi
lords, was the first to give a blow to the
credit of the bank. There was a mixture of
ingratitude in his conduct that characterized
(he venal baseness of the times. He,had
received, from time to time, enormous sums
from Law as the, pricq'of his influence and
patronage. In.revenge, the. Prince immedi
ately sent such an amount of paper to the
bank to be cashed, that it required four
wagons to bring a.way the silver, and he had
the meanness to 101 l out of the Window of
his hotel, and jestand exult, as it was trun
dled into his port cochcre. ; .
This was the signal for" other drains of
like nature. The English and Dutch .mer
chants, who had purchased a great amount
of bank -paper at low "prices, cashed them at
the, bank, and carried the. money out of the
county. Other strangers did the like, thus
draining the kingdom of its specie,"and lea
ving paper in its place.
The Regent, perceiving these symptoms
_of decay in the system, sought to restore it
to publicTonfidence by conferring marks of
confidence upon its author. He accordingly
resolved to make-Law Comptroller-General
of the Finances of France. There was a
material ob'-tacle-in the way. Law- was a
Protestant, and the Regent, unscrupulous as
he was himself; did not dare publicly to out
rage the severe.edicts which Louis XIV., in
his bigot days, had fulminated against all
heretics. Law soon let him know that there
would be no difficulty on that'head.He
was ready at any moment to abjure his re
ligion in the way of business. For decency’s
sake, however, it was judged proper he should
previously.be convinced ami converted.
ghostly instructor was soon found, ready to
accomplish his conversion in the shortest
possible time. This was Abbe Tencin, a
profligate creature of the profligate Dubois,
and, like him, workingbis way to ecclesias
tical promotion-rind, temporal, wealth by the
basest means.
,Umler the instructions of the Abbe Tencin,
-Law soon mastered-the mysteries and dog
mas of the Catholic doctrine; and, after a
brief course of ghostly . training,- declared
himself thoroughly convinced and converted.
To avoid the sneers and jests of the Parisian
public,' the- ceremony of abjuration-took
place at Melon. Law made a pious present
of one hundred thousand livres to the Church
of St. Uoque, and the Abbe Tencin was re
warded for Ids edifying labors by sundry
shares and’ bank bills, which he shrewdly,
took care to convert .into cash, having as
little faith inthe system, as in the piety, of
his new convert. A more grave and. moral:
community might have been outraged by
this scandalous farce; bu t the. Parisians laugh -
ed afit with their usual levity; and contented
tliemselves with making it the subject of a
number of songs and.epigrams. :
Law, being now orthodox In his faithptonk
nut letters of naturalization, and having thus
surmounted the intervening' obstacles, was
elevated- by the Regent to 'the post of Coinp r
trailer . General;' So accustomed- had the
community become to all juggles and, trans
mutations in- this hero of financepthat no one
seemed shocked or astonished at his sudden
elevation.; On the contrary, being now con
sidered perfectly established in jilace and
powcr- ( -hc became more than ever the. object
of, venal adoration. ./Men'of rank and dignity
thronged, to his ante-chamber, waiting, pa -
ticntly .their turn for an audience; and titled
damesdemeaned themselves to take t|ie front
seats wjSthe carriages of his wife and daugh
ter, asifthey had been riding.with-princesses
of the blood royal. - Law’s bead-grew giddy
with his clevafion, and he began to'aspire
after aristocrptlcal distinction. There was
tu be a court ball, ,at which, several of the
young noblemen were to,dance in a ballet
with the youthful king. Law requested that
his soirmiglit be admitted info the ballet,
and the Regent consented. The, young
scions of nubility, .however, were' indignant,
and scouted (he “intruding upstart.” Their
.more Worldly parents, fearful of .displeasing
the modern Midas, reprimanded them in vliin.
Thestriplingshad notyet imbibed the passion
forgain,-and- still held to their high bloodv
The son of the banker received slights and
annoyances on all sides, and the public ap
plauded them for their spirit. A fit of illness
came opportunely to relieve the youth from
an honor which would have cost him a world
of vexations and affronts.
In February, 1720, shortly after Law’s
instalment id'office, a decree came-out,
uniting the bank to the tnilia Company, by
which last name the. whole establishment
was now known. The decree stated, that
as the bank was-royal, 1116° king was bound
to make good thc.value iff its bills; that he
committed to the company the government
of the bank for fifty years, anil sold to it
fifty millions of stock belonging to him, for
nine hundred millions; a simple'ndvance of
eighteen hund rod per - cent; —TheMeCrcc
farther declared, in the, king’s name, that he
would-never draw on (he bank, until-thc
value of his drafts had first bee'n lodged in
it by his receivers general.
The bank, it was said, had by this time
issued notes to the amount of one thousand
not ions; being more paper than all the banks
of Europe were able to circulate. To aid
its credit, the receivers of the revenue were
directed to take bank notes of (he sub-re
ceivers. All payments, therefore, of one
hundred livres and upwards, were ordered
to.be made in bank notes. These compul
sory measures for a short time gave a false
credit to the bank. Which proceeded to dis
count merchants’ notes, to- Ihnd money on
jewels; - plme, and other valuables, as well
as on mortgages.
—3tiM-farther to force on the.system, an e
dict next appeared, ..forbidding any individ
ual or any corporate body, civil or religious,
to hold in possession more than five hundred
livres in current coin;- that is to say, about
seven lojiis-d’ors; the value of the louis-d’or'
in-paper beingrat the—timer seventy-two
livres. All the gold and silver they might
have, above this pittance, was to be brought
to the royal bank and exchanged cither for
shares or bills..
As confiscation was the penally of diso
bedience to the decree, and infofmers-vyere
assured a" share of the forfeitures, ,a bounty
was in a manner held out to domestic spies
and traitors; and tile most odious scrutiny'
was awakened into the pecuniary affairs-of
families and individuals. ’ The very confir.
dence between friends and relatives was im
paired, and all tbe.domcstic lies.and virtues
of society were threatened, unfd a general
sentiment of indignation broke forth,, that
-compelled the Regent to Vescinil the odious
decree. Lord Stairs, flic .British ambassa
dor, speaking of the system of espionage en
couraged by this edict, observed that it was
impossible to doubt.that Law was a thorough
Catholic, since he bad thus established the
“inquisition,” after having already proved
“transubstantiation” by changing specie in
to paper.
Equal abuses bad taken place under the
colonizing project. In his thousand expe
dients to amass capital. Law bad sold par
cels of land in'"Mississippi, at the rate' of
three thousand livres for a league square.—
Many capitalistshad purchased estates large
enough to constitute almost a principality;
the only evil Was, Law bad sold property
which he could not deliver. The. agents of
police, who aided id recruiting the ranks of
the colonists, had been guilty of
impositions. Under pretence of taking up
mendicants and vagabonds, they bad scour
ed the streets at night,, seizing upon honest
mechanics, or their suns, and hurrying
to their crimping bouses, for the sole purpose
of extorting money from them as a ransom.
The populace was aroused to-indignation by
thesejibuses. -The’officers of police wei-e
■nobbed in the exercise of their odious func
tions, and several of .them were" killed, Which
put amend to this flagrant abuse of power.
In March, a most extraordinary decree of
the council flxed the prices of shares of the
India Company at nine thousand livres each.
All ecclesiastical communities and hospitals
were now prohibited from investing money
at interest, in any thing but India stock.—
With all these props and stays, the system,
continued to totter.; How could it, be other
wise, under a despotic government,, that
could alter the value of property at every
moment? The very compulsory measures
that were - adopted to establish the credit of
the bank) hastened its full; plainly showing
there was a want of solid security. Law
"caused pamphlets to be published setting
forth, in.eloquent language, the vast profits,
that must accrue to holders of the stnck. and
the'impossibility of the king’s ever, doing ,it
harm. On the very back of these assertions,
came forth an edict’of the king, dated the
22d of May, wherein, under pretences of
having reduced the value of his coin, It was
declared necessary ,(b reduce the value of
tiisbanknotcsTonelialf.andofthclndia
shares from nine thousand; to five thousand
livres! •
This decree came like a clap of thunder
upon shareholders.. They ,found one half of
the pretended Value of the paper in their,
hands annihilated in an instant; and . what
certainly .had they whit respect to the other
half? The rich considered themselves ruin
ed; those in. humbler circumstances looked
forward to abject beggary.
The parliament'seized the occasion to
stand forth as the protector of tlie public,
and refused to regtsterihe decree.' . It gain
ed the credit'of compeHing 'the Regent to
retrace bis steps, though it. is more probable
he yielded to, the universal burst of public
astonishment and reprobation. ...On the Srth.
of May, the edict was'revoked, -iniclljank'
bills, were restored towHieir previous valuc.
But the fatal blow had been struck; the.-de
lusion was at end.. Government itself, had
lost all public confidence, equally with the
bank it had engendered; andwliicbilsown
arbitrary "acts hath brought intodiaCredit.—
"All .Paris,”. says the Regent’s mother, in
her letters, “has been mourning at the cursed
'decree,which ’ Law has per&uadied my don to
make, .1 liaye received' anonymous letters,
stating that 1 have nothing to 'fear on. my
own account,, but that my son shall be pur
sued w>t)> fire and sword.” t
• The Regent ; now; endeavored to avert the
odium of. his ruinous schemes from himself.
v . - r— — 1 ■ ». .. .
He affected to have suddenly lost confidence
in liaw, and bn the 29tb of May, discharg
ed him from Ida employ, as ComptrollerOc
neral, and stationed a Swiss guard of six
teen 'men in his house.' He eveh'refused to
see him, .when, oh the'following day, he ap
plied at the;portal of the Palais-Royal-for
admission; but having played off this fart*
before the public he admitted him secretly
the same night, by a private door, and coir*
tinned W before, to co-operate with him in
his financial.schemes. -
On the first of June, the-Rcgent issued a
decree, permitting persons.to have as much
money as they pleased in their possession.
Few, however, were in h state to benefit by
this permission. There was a run upon the
bank, but h royal ordinance immediately
suspended payment until further orders.—>
To relieve the public mind, a city Stock was
created of, twenty-five millions, bearing an
interest of two and a half per cent, for which
bank notes were taken in exchange. The
bank notes thus withdrawn from circulation,
were publicly-burnt before the Hotel de
Vnie. _ The public, however, had lost confi
dence in every thing and every body, and
suspected fraud and collusion in those who
pretended'to turn the bills-. -
A general confusion now took place in
the financial -world. Families who had lived
in opulence, found theniselves suddenly re
duced to indigence. Schemers who had been
revelling in the delusion of princely for
tunes, found their estates vanishing into thin
air. Those who had any property remain
ing, sought to secure it against reverses.
Cautious persons found there was no safely
for property in a country where Jhe coin
was continually shifting in value, and wheic
a despotism was exercised .over public secu
rities, and even over the priva'e purses of
individuals. They began to send thejr ef
fects'in other countries, when Jo ! on the
20th of June, a royal edict coninianded them
to bring back their effects, under penalty of
forfeiting twice their value; and forbade
them, under like'penalty, .from investing
their money in foreign stocks. This was
soon followed bv another decree forbidding
any 0.. e to retain precious s'oucs in his
possession, or to sell them, to fi icgners ; all
must be deposited in the bank, in exchange
foi'‘depreciating'paper !
F.xccrations were now poured out, on all
sides, against Law, and menaces'of ven
geance. What a contrast, m a short time,
to the venal incense that-was offered up to.
him !' “.This person,” writes the Regent’s
mother, " who wiis formerly worshipped' as
a god,is now not sure of his life.- It is as
tonishing how greatly terrified he is. He is
lis a dead .man ; he is pale riS a Sheet, and 1 1
is said he can never gel over it. M v son is
notil.laniayed, though lie is threatened on all
sidl-s, and is very muCli affitiscd with Law’s
terrors.”— —.
About (lie middle.t>r .fitly, (lie last "rand
attempt was' made by i.aw.mjd the .Regent,
to keep lip the System and provide Tor tfifc
immense emission -of paper.- A decM-e was
fabricated, giving the India Company the
en’tire monopoly-of commerce, on condition
tliat it would, in (bo course of a year, reim
burse six hundred millions of livres of its
bills, at (he rate-oT fifty millions-per month.
On the irth, this decree was sent to par-'
liament to be registered. It at-once raised
a storm of. opposition in -that assembly : am(
a vehement discussion toiik place. While
that was going on, a disastrous acetic-was"
passing out of doors.
The calamitous effects of the system lot)
reached Hie'humblest' roncerns of human
life. Provisions had risen to an enormous
price; paper money was refused at all the
simps; the people had not-wherewithal .tir
buy bread. It hail been .found absolutely l
.indispensable to relax ii littleTrom the sus
pension of specie payments, and to allow
small sums to be scantily exchanged for
paper. The doors of the bank anil (he
neighboring street were immediately throng
ed with a,famishing multitude, seeking cask
for bat\k notes of ten livres. So great was
the press an d' s f riigg I e,t li ats e~v era I persons
yv.erc'stifled'and crushed to deal It: The'
mob carried three of the bodies to the court
yard of the Palais Royal. Some cried Inr
the Regent to come forth, and behold 'thet
effect of his system; others demanded the'
death of Law, (he impostor, who had brought
this misery and ruin upon the nation.
The moment was critical: the popnlaf
fury was rising to a tempest, when Le Blanc,
the Secretary of State, stepped forth. Itc
Jfad previously sent' fiir the military, ami
now only sought to gain time. Singl'ingmYt
six-or seven stout fellows, who seemed to he
the ringleaders of the mob: “ lily good' fel-“
lows,” said he, calmly, “ carry away these
hollies, and place, them in some church, and
then come back quickly to nie.for your pav,*’’
They immediately obeyed ; a kind, of fune
ral •procession was formed ; the arrival of
troops dispersed those who had-lingered be
j hind ; and Paris-was probably saved from, an
insurrection.
About ten o’clock in the morning, all be
ing quiet, Law ventured to go in his carriage •
to the Palais Royal.; He was saluted-with
cries‘and ; curses, as' he '-passed-, nlonjf the
streets; and he reached the. Palaisßoyal
in- a terrible fright. -'riie Regent amuscil!
himself with his fears,but retained him.with
him, and.'sent olf, his' carriage, which -was
assailed by the mob, pelted with stones, and
the glasses shivered. The new* of this
outrage was communicated to parliament in
the midst of a furious discussion of the de
cree for the commercial monopoly.' The
first president, who bad i been: absent for a:
short time, re-entered, and, communicated
the tidings in a whimsical couplet. 1
“ Messieurs, Messieurs! bohno nbnvella ! ■
Le carrosse de Law est rcquiteen carrelle !'*
“ Gentlemen; Gentlemen Igoodnewe!
, The carriage of Law is Shivered to atoms i” 1
The members sprang up with:joyAnd
Law. I” exclaimed they «\'‘ has been torn to
pieces ?” , .The - president was 'ignorant- of
the tumbltwhereupon the debate was cot
short; the decree rejected, and the house
ailjournedjthememhershurrying.tblearii
the particulars.. Such was the. levity with'
public affEurs. were treated, at this
dissolute and disastrous period.
r> On the following day, there was an ordi
nance from -the kingj prohibiting all popular
assemblages i and troops were. stationed at
'various points, and in all public places. The
.regiment of guards were-ordered to hold -
itself ih.rcadiness ; and the mtisqueteers to,
be at; their hotels, with their hoises ready
saddled. A number of small 'offices were
opened, where people might cash small
notes, though with great delay/and diflicul-