The Mississippi Bubble: A Memoir Of John Law

By: Adolphe Thiers

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Synopsis: A fascinating biography of Scottish financier John Law.An account of the financial operations of John Law and his ‘Compagnie des Indes', including a great number of relative memoirs, letters patent, decrees, declarations, etc. Marmont du Hautchamp had been an admirer of John Law's system and his book is not written without partiality but has yet been recognized as the best contemporary history of the system and its most precious source. John Law's operations began with the foundation in 1716 of the ‘Banque Generale', soon afterwards renamed ‘Banque Royale'. This was followed by the scheme of colonization known as ‘Mississippi scheme' in the ‘Compagnie des Indes' which, by absorbing various other chartered companies, acquired the monopoly on the trade to America, Africa and China. Moreover, the company obtained the monopoly of tobacco, the control of the mint, the payment of the national debt, and the farm of the taxes. Within a few years Law's companies thus got almost complete control over France's overseas trade, its currency and public finances. In 1719 the ‘Compagnie des Indes' and the ‘Banque Royale' were united, and the promising outlooks of the new company lead to an unprecedented speculation in its shares. As known the bubble burst in 1720, cash payments were suspended and Law fled from the country, leaving behind ruined many of his former supporters. *Kress 4447. Einaudi 3728. Goldsmiths' 7712. Stourm p. 73. Palgrave II, p. 576.-Print ed.