2004-09
This lot is closed for bidding. Bidding ended on 8/31/2004
LAW, JOHN (1671 - 1729) Scottish financier and creator of the Mississippi Company, an investment scheme which saw the company's shares skyrocket and then collapse, nearly bankrupted France. Rare manuscript L.S. "Law", 2pp. legal folio, Paris, Feb. 9, 1720 in French to a Mr. Ricart, Counselor of the Parliament of Provence. In part: "…Mr. Desfortz tells me...you request to keep ownership of the domain in Bregancon, in spite of the decision of the Council…which orders that the domains be united with the Crown…it is appropriate for you to present your case in front of the commissioners appointed by his Majesty for the Execution of this decision, and we shall see what may be done to your greatest advantage…". The Mississippi Company had been set up to exploit the wealth of French colonies, especially in Louisiana. In 1719, it was also given a monopoly of trade with the East Indies and China and a speculative boom in the value of its shares ensued. The boom, combined with the over-issue of notes by the Banque Royale, led to a drain of precious metals from France to London. Law's enemies persuade the Regent to dismiss him from his post as Minister of Finance, and the bank stopped payment as the boom collapsed. The debacle sets back the development of banking in France by about 100 years. Very good.
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